You Are an Investment Analyst – Assignment 3 Instructions
February 22, 2018 Uncategorized 0 Comments
As the representative from your accounting firm or practice, you are in charge of stock market analysis that will be presented to clients as part of the professional consultation process. One of your high-profile clients is trying to determine the possible investment potential between two companies. However, before you can recommend investments to clients, you need to familiarize yourself with the background of the companies, analyze stock trends, research current events, and analyze financial statements. Select one (1) pair of these companies and conduct your analysis.
- Pepsi versus Coca-Cola, or
- Amazon versus eBay
Write an eight to ten (8-10) page paper in which you:
- Analyze each company’s history, product/services, major customers, major suppliers, and leadership and provide a synopsis of each company.
- Based on the stock price for the timeline listed below, present a graph that illustrates the stock price of each company. Indicate conclusions that can be drawn based on the trend:
- On the day of its initial public offering
- January 1, 2012
- January 1, 2011
- January 1, 2010
- Research and summarize at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2010 to the present day and the potential impact on the stock price of each company. Indicate how this influences your investment decision related to the company.
- Provide an overall financial analysis for each company that highlights the key characteristics for investment and how this may impact an investor’s decision.
- Based on your review of the financial data for each company, indicate the accuracy and reliability of the data for making an investment decisions. Provide support for your conclusion.
- Recommend which company you consider the better investment for your client and how you will present your recommendation. Support your recommendation with data from your analysis.
- Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
The specific course learning outcomes associated with this assignment are:
- Analyze the accounting for corporation requirements related to stock valuation, dividends, and retained earnings.
- Determine how to value investments and how to report them based on that valuation.
- Use technology and information resources to research issues in financial accounting.
- Write clearly and concisely about financial accounting using proper writing mechanics.