Fluent Essays

Need someone very good at finance.This is a four-Part Project offering you the opportunity to demonstrate mastery of the knowledge and skills gained is this course. The total grade for the Project is 30\% of the final grade for the course. Each of the four written submissions for this Project is due by 4:00PM eastern Standard Time on the due date. After that they are considered late. Late Project submissions will be marked down 10\% each day the submission is late. Read all instructions before starting. Project Part 1. Initial selection of stocks. Assume you have $1,000,000 to invest. You will use this to form a hypothetical large cap ( each company with at least $10 billion in Market Capitalization) diversified stock portfolio by investing your funds in five stocks chosen from five different industries. No short sales, fractional shares, or margin trades are permitted for this Project. To determine how much you have invested in any particular stock, multiply the stock price times the number of shares purchased. You must use at least $900,000. Any funds left over represent cash in your portfolio that earn no return. Dividends and other cash distributions will be added to cash and not reinvested. Trades are not permitted except in extraordinary situations with the specific approval of your instructors prior approval. Trading will only be considered between Friday of week 1 and Thursday of week 13, January 22 to April 9 . Should a trade be allowed, the instructor must be notified via email of the specifics of the trade within 24 hours. Deliverables: 1. A spreadsheet that includes the number of shares you purchased for each stock and the closing prices as of Friday of week 1, January 22, of your stocks. Report the last dividend paid date and amount as well as the next dividend pay date. Also, include your total investment and the amount held in cash. To get stock price information go to www.google.com (Links to an external site.) or www.yahhoo.com (Links to an external site.) and click on Finance. Enter the ticker symbol of your stock as well as any other needed information to track the stock such as exchange the stock is traded on and click on historical prices. Use the column that contains closing prices to track the stock for the semester. 2. Conduct and analysis of the stocks explaining why you chose these particular stocks based on your analytical technique. The analysis, (three to six pages plus spreadsheets) should include the following: a. Give a brief history of the companies and their products. Briefly discuss where the company is heading (new products or ventures). Identify each companys competitors and identify each companys ranking among its competitors. b. Find the reported beta and and the adjusted beta of each company calculating the other if only one is reported. Record your source and describe how they calculated the betas including frequency of observations, as methods do vary. Explain what the betaCompanies Company Name Ticker Symbol Number Of Shares Purchased Closing Price Of Stock on 1/22/2021 Expedia Inc EXPE 1500 136.52 Tripadvisor Inc TRIP 2000 33.19 Lyft Inc LYFT 2000 47.81 Moderna Inc MRNA 2000 131.02 Netflix NFLX 400 565.17 That is not all you want to know about your stock; What was the purchase price? What was the total value of your stock holdings at the beginning and after each tracking week? What exchange is the stock traded on? The assignment require you to invest at least $900K of the million. Do you know how much you have invested? What about the value of a comparable investment in the S&P 500? You need to know and track that for Part 3 and 4 of the Project; track the S$P 500 close just as the stocks so you can compare performances and graph the comparison. Expedia Expedia Last Dividend Next Dividend Date Closing Price 1/22/21 205 1/29/21 186 2/5/21 212 2/12/21 2/19/21 2/26/21 3/5/21 3/12/21 3/19/21 3/26/21 4/2/21 4/9/21 Tripadvisor Tripadvisor Last Dividend Next Dividend Date Closing Price 1/22/21 66 1/29/21 62 2/5/21 72 2/12/21 2/19/21 2/26/21 3/5/21 3/12/21 3/19/21 3/26/21 4/2/21 4/9/21 Lyft Lyft Last Dividend Next Dividend Date Closing Price 1/22/21 96 1/29/21 89 2/5/21 106 2/12/21 2/19/21 2/26/21 3/5/21 3/12/21 3/19/21 3/26/21 4/2/21 4/9/21 Moderna Moderna Last Dividend Next Dividend Date Closing Price 1/22/21 262 1/29/21 346 2/5/21 352 2/12/21 2/19/21 2/26/21 3/5/21 3/12/21 3/19/21 3/26/21 4/2/21 4/9/21 Sheet1 Netflix Netflix Last Dividend Next Dividend Date Closing Price 1/22/21 226 1/29/21 213 2/5/21 220 2/12/21 2/19/21 2/26/21 3/5/21 3/12/21 3/19/21 3/26/21 4/2/21 4/9/21Project Part 2 directives are attached below. Part 2 is about examining your portfolio closely. Are your stocks over or undervalued? What is the appropriate value of your stocks? How are the pertinent financial ratios performing? What factors are influencing the ratio performances (pandemic, elections, change in government leadership, products, competition economy)? What is making your stocks move in price? (Examining performance and changes you have made in your portfolio). Deliverable: 1. Using the stocks in your initial portfolio, prepare a valuation of each stock and the initial portfolio using zero, constant or variable growth models with a market return of 8\% and at 12\%. (Note that the growth rate must be less than the required rate of return.) Make sure you list the date of the valuation and the closing price of your firms stock. Each firms required rate of return will depend on its beta. 2. Is the stock of each of these companies over or under valued? 3. What is the expected return using the CAPM model? 4. Prepare a time series ratio analysis (liquidity, activity, debt, profitability). Identify any events during the period that may have caused the stocks price to increase or decrease, explaining how these events affect the stocks prices. Rubric Weight Criterion Above Standards Meets Standards Approaching Standards Below Standards 50\% Quantitative Literacy Effectively works with numerical data and solves quantitative problems from a wide array of authentic contexts in everyday life. Works with numerical data and solves quantitative problems from a wide array of authentic contexts with moderate effectiveness. Works with numerical data and solves quantitative problems with minimal effectiveness. Is not able to work with numerical data and solve quantitative problems. 25\% Inquiry and Analysis Demonstrates extensive exploration of issues/objects/works through the collection and analysis of evidence to make well-informed conclusions/judgments. Organizes and synthesizes evidence to reveal insightful patterns, differences, or similarities related to focus. Demonstrates adequate exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence to reveal important patterns, differences, or similarities related to focus. Demonstrates minimal exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence, but the organization is not effective in revealing important patterns, differences, or similarities. Does not demonstrate even minimal exploration of issues/objects/works through the collection and analysis of evidence and unable to make informed conclusions/judgments. Lists evidence, but it is not organized and/or is unrelated to focus. 25\% Critical Thinking Demonstrates comprehensive exploration of issues and ide