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FIN 320 Final Project Parts 1, 2, & 3

Business professionals typically need to demonstrate a core set of financial knowledge to earn the job and to succeed on a job. For this part of the assessment, you will be given a scenario in which you are asked to illustrate your financial management knowledge.

This part of the final project addresses the following course outcomes:

Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements Differentiate between various financial markets and institutions by comparing and contrasting options when selecting appropriate private and corporate investments

Part I Prompt

You have completed an internship in the finance division of a fast-growing information technology corporation. Your boss, the financial manager, is considering hiring you for a full-time job. He first wants to evaluate your financial knowledge and has provided you with a short examination. When composing your answers to this employment examination, ensure that they are cohesive and read like a short essay.

Your submission must address the following critical elements:

Analyze Roles and Responsibilities for Compliance Examine the types of decisions financial managers make. How are these decisions related to the primary objective of financial managers? Analyze the various ethical issues a financial manager could potentially face and how these could be handled. Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these consideredappropriate safeguards? Investment Options If a private company is “going public,” what does this mean, and how would the company do this? What are the advantages of doing this? Do you see any disadvantages? If so, what are they? How do the largest U.S. stock markets differ? Out of those choices, which would be the smartest private investment option, in your opinion? Why? Compare and contrast the various investment products that are available and the types of institutions that sell them.

Final Project Part I Rubric

Guidelines for Submission: Ensure that your employment examination is submitted as one comprehensive and cohesive short essay. It should use doublespacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.

Critical Elements

Exemplary (100%)

Proficient (85%)

Needs Improvement (55%)

Not Evident (0%)

Value

Roles and

Meets “Proficient” criteria and

Comprehensively examines the

Examines the types of decisions

Does not examine the types of

15.83

Responsibilities:

includes examples in analysis

types of decisions financial

financial managers make,

decisions financial managers

Examine

managers make, including how

including how these decisions are

make

these decisions are related to

related to their primary objective,

their primary objective

but examination is not

comprehensive

Roles and

Meets “Proficient” criteria, and

Comprehensively analyzes the

Analyzes the various ethical issues

Does not analyze the various

15.83

Responsibilities:

analysis indicates a clear

various ethical issues a financial

a financial manager could

ethical issues a financial manager

Analyze

understanding of ethical

manager could potentially face

potentially face and how these

could potentially face and how

standards in finance

and how these issues could be

issues could be handled, but

these issues could be handled

handled

analysis is not comprehensive

Roles and

Meets “Proficient” criteria, and

Accurately analyzes different

Analyzes different federal

Does not analyze different federal

15.83

Responsibilities:

analysis indicates a clear

federal safeguards that are in

safeguards that are in place to

safeguards

Compare and Contrast

understanding of federal

place to reduce financial

reduce financial reporting abuse,

safeguards in finance

reporting abuse, including why

but analysis is inaccurate or

these safeguards are appropriate

cursory, or analysis of why these

safeguards are appropriate is

inaccurate or cursory

Investment: Private

Meets “Proficient” criteria and

Comprehensively compares and

Compares and contrasts the

Does not compare and contrast

15.83

Company

includes examples in analysis

contrasts the advantages and

advantages and disadvantages of

the advantages and

disadvantages of a company

a company “going public” versus

disadvantages of a company

“going public” versus staying

staying private, but analysis is not

“going public” versus staying

private

comprehensive

private

Investment: U.S. Stock

Meets “Proficient” criteria and

Comprehensively and accurately

Differentiates between the

Does not differentiate between

15.83

Markets

explains choice of smartest stock

differentiates between the largest

largest U.S. stock markets, but

the largest U.S. stock markets

market to invest private money

U.S. stock markets and indicates

analysis is inaccurate or cursory

into

choice of smartest stock market

or is missing choice of smartest

to invest private money into

stock market to invest private

money into

Investment: Compare

Meets “Proficient” criteria and

Comprehensively compares and

Compares and contrasts the

Does not compare and contrast

15.83

and Contrast

includes both foreign and

contrasts the various investment

various investment products and

the various investment products

domestic institutions

products available and the types

the types of institutions that sell

and the types of institutions that

of institutions that sell them

them, but analysis is not

sell them

comprehensive

Articulation of

Submission is free of errors

Submission has no major errors

Submission has major errors

Submission has critical errors

5.02

Response

related to citations, grammar,

related to citations, grammar,

related to citations, grammar,

related to citations, grammar,

spelling, syntax, and organization

spelling, syntax, or organization

spelling, syntax, or organization

spelling, syntax, or organization

and is presented in a professional

that negatively impact readability

that prevent understanding of

and easy to read format

and articulation of main ideas

ideas

Earned Total

100%

Final Project Part II

Part II Overview

For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial computation and analysis skills.

This part of the assessment addresses the following course outcomes:

Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success Analyze corporate financial data for multiple companies in evaluating past and future financial performances

Part II Prompt

For this section of your employment exam, you will select two companies. The first company needs to come from your TDAU thinkorswim portfolio. The second needs to be a competitor of the first company from the same industry. You will be responsible for collecting, synthesizing, and making decisions regarding both companies. After evaluating these companies’ financial data, you will then decide which company’s stock is the better investment.

This section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen companies. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citation—for example, “rate of return is 3.570 USD (E64, WB2),” where E64 is the cell that the calculation took place in and WB2 is designating “workbook 2.” This ensures that your instructor can quickly and accurately check data entry, formula use, and financial calculations.

Your submission must address the following critical elements:

Preparing the Workbooks Download the annual income statements, balance sheets, and cash flow statements for the last three completed fiscal years for your chosencompanies. This information must be included in your final submission. Prepare a worksheet for each of the companies to display their financial data for the last three fiscal years. Ensure your data is accurate and organized. Include these worksheets as a workbook in your final submission. Find historical stock prices for both companies and add this information to the respective spreadsheets. Consider the appropriate date range you should use. Three-Year Returns What is the three-year return on the stock price of the first company (Company A)? How is the stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on the given company’s stock price. What is the three-year return on the stock price of the second company (Company B)? How is this stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on your chosen company’s stock price. How do these two stocks compare in terms of three-year returns? What does this indicate about these two companies? Financial Calculations Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the price-to-earnings ratio for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the debt-to-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return-on-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return on assets for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the profit margins for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the free cash flows for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

IV. Industry Averages

Obtain current industry averages of three of the financial calculations above for both companies and add this information to your spreadsheet for comparison. Ensure the accuracy and organization of your data. In this context, how is each company’s financial health? How do these two companies compare to one another? Consider the appropriate date range you should use. Performance Over Time Analyze the performance of the Company A over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier. Analyze the performance of your Company B over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier. Analyze how the data differ between these two companies. Why do you think this is? Consider addressing the free cash flows and ratios you calculated earlier.

VI. Investment

Are the companies considered growth or value companies? Why? Which company’s stock is the better investment? Consider supporting your answer with data.

Final Project Part II Rubric

Guidelines for Submission: This part of the final project will be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data andformulas, along with any of the information that is relevant for your chosen company. Part B will contain your answers to the prompts, composed in a cohesive manner. Part B should use double spacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.

Critical Elements

Exemplary

Proficient

Needs Improvement

Not Evident

Value

Preparing: Download

Downloads and includes annual

Downloads and includes annual income

Does not download and include

2

income statements, balance

statements, balance sheets, and cash

annual income statements,

sheets, and cash flow

flow statements for chosen companies

balance sheets, and cash flow

statements for the last three

but is missing various components

statements for the last three

fiscal years for chosen

(55%)

fiscal years for chosen

companies (100%)

companies (0%)

Preparing: Worksheet

Prepares worksheet for chosen

Prepares worksheet for chosen and

Does not prepare worksheets

2

and given companies,

given companies, displaying financial

for both the chosen and given

displaying all financial data for

data for the last three fiscal years, but

companies (0%)

the last three fiscal years in an

worksheets are unorganized, inaccurate,

accurate and organized manner

or incomplete (55%)

(100%)

Preparing: Stock Prices

Adds historical stock prices for

Adds historical stock prices for the

Does not add historical stock

2

an appropriate date range for

chosen and given companies, but data

prices for the given and chosen

the chosen and given

has been inaccurately entered or is not

companies to their respective

companies to their respective

for an appropriate date range (55%)

worksheets (0%)

worksheets (100%)

Returns: Company A

Meets “Proficient” criteria and

Correctly calculates the three-

Calculates the three-year return on the

Does not calculate the three-

5.63

logically explains reasoning

year return on the stock price

stock price of the given company, but

year return on the stock price of

behind indication of stock

of the given company and

calculation is incorrect or indication of

the given company (0%)

performance (100%)

accurately indicates how this

how this stock is performing is

stock is performing (85%)

inaccurate or missing (55%)

Returns: Company B

Meets “Proficient” criteria and

Correctly calculates the three-

Calculates the three-year return on the

Does not calculate the three-

5.63

logically explains reasoning

year return on the stock price

stock price of the chosen company, but

year return on the stock price of

behind indication of stock

of the chosen company and

calculation is incorrect or indication of

the chosen company (0%)

performance (100%)

accurately indicates how this

how this stock is performing is

stock is performing (85%)

inaccurate or missing (55%)

Returns: Compare

Meets “Proficient” criteria, and

Compares the three-year

Compares the three-year returns of the

Does not compare the three-

6.43

explanation demonstrates

returns of the given and chosen

given and chosen companies, but

year returns of the given and

nuanced understanding of

companies, explaining what

explanation of what this indicates about

chosen companies (0%)

three-year returns and their

this indicates about each

each company is cursory or missing

implications (100%)

company (85%)

(55%)

Calculations: Price-to-

Correctly calculates the price-

Calculates the price-to-earnings ratios of

Does not calculate the price-to-

5.63

Earnings Ratios

to-earnings ratios for the last

the given and chosen companies, but

earnings ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Debt-to-

Correctly calculates the debt-

Calculates the debt-to-equity ratios of

Does not calculate the debt-to-

5.63

Equity Ratios

to-equity ratios for the last

the given and chosen companies, but

equity ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Return-

Correctly calculates the return-

Calculates the return-on-equity ratios of

Does not calculate the return-

5.63

on-Equity Ratios

on-equity ratios for the last

the given and chosen companies, but

on-equity ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Return on

Correctly calculates the return

Calculates the return on assets of the

Does not calculate the return on

5.63

Assets

on assets for the last three

given and chosen companies, but

assets ratios of the given and

fiscal years of the given and

calculations are incorrect or do not

chosen companies (0%)

chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Profit

Correctly calculates the profit

Calculates the profit margins of the

Does not calculate the profit

5.63

Margins

margins for the last three fiscal

given and chosen companies, but

margins of the given and chosen

years of the given and chosen

calculations are incorrect or do not

companies (0%)

companies (100%)

consider the last three fiscal years (55%)

Calculations: Free Cash

Correctly calculates the free

Calculates the free cash flows of the

Does not calculate the free cash

5.63

Flows

cash flows for the last three

given and chosen companies, but

flows of the given and chosen

fiscal years of the given and

calculations are incorrect or do not

companies (0%)

chosen companies (100%)

consider the last three fiscal years (55%)

Industry Averages:

Adds current industry averages

Adds current industry averages for

Does not add current industry

2

Industry Averages

for chosen and given

chosen and given companies to

averages for chosen and given

companies to worksheet in an

worksheets, but some data is

companies to worksheets (0%)

accurate and organized manner

inaccurate, unorganized, or missing

(100%)

(55%)

Industry Averages:

Meets “Proficient” criteria and

Analyzes the given and chosen

Analyzes the given and chosen

Does not analyze the given and

6.43

Financial Health

includes current industry

companies’ financial health by

companies’ financial health by

chosen companies’ financial

averages within an appropriate

comparing the two companies’

comparing the two companies’ industry

health (0%)

date range (100%)

current industry averages

averages but does not consider the

(85%)

current industry rates (55%)

Performance: Company

Meets “Proficient” criteria and

Comprehensively analyzes the

Analyzes the strengths and weaknesses

Does not analyze the strengths

6.43

A

references free cash flow and

strengths and weaknesses of

of the given company over time, but

and weaknesses of the given

ratios calculated for the given

the given company over time

analysis is not comprehensive (55%)

company over time (0%)

company in analysis (100%)

(85%)

Performance: Company

Meets “Proficient” criteria and

Comprehensively analyzes the

Analyzes the strengths and weaknesses

Does not analyze the strengths

6.43

B

references free cash flow and

strengths and weaknesses of

of the chosen company over time, but

and weaknesses of the chosen

ratios calculated for the chosen

the chosen company over time

analysis is not comprehensive (55%)

company over time (0%)

company in analysis (100%)

(85%)

Performance: Differ

Meets “Proficient” criteria and

Accurately contrasts the

Contrasts the performances of the given

Does not contrast the

6.43

references the companies’ free

performances of the given and

and chosen companies over time, but

performances of the given and

cash flows and ratios calculated

chosen companies over time,

analysis is inaccurate or cursory, or the

chosen companies over time

in analysis (100%)

including a logical, proposed

included explanation of these

(0%)

explanation of these

performances is illogical or cursory

performances (85%)

(55%)

Investment: Growth or

Meets “Proficient” criteria and

Comprehensively analyzes

Analyzes whether the companies are

Does not analyze whether the

6.43

Value

includes quantitative data to

whether the companies are

considered growth or value companies,

companies are considered

support analysis (100%)

considered growth or value

but analysis is not comprehensive, or

growth or value companies (0%)

companies, including a logical

the explanation included is illogical or

explanation of why (85%)

cursory (55%)

Investment: Stock

Meets “Proficient” criteria and

Analyzes each company’s stock,

Analyzes each company’s stock,

Does not analyze each

6.43

includes quantitative data to

including a logical explanation

including an explanation of personal

company’s stock (0%)

support analysis (100%)

of personal preference of

preference of stock options, but analysis

which stock to purchase (85%)

or explanation is illogical or cursory

(55%)

Articulation of

Submission is free of errors

Submission has no major errors

Submission has major errors related to

Submission has critical errors

1.95

Response

related to citations, grammar,

related to citations, grammar,

citations, grammar, spelling, syntax, or

related to citations, grammar,

spelling, syntax, and

spelling, syntax, or organization

organization that negatively impact

spelling, syntax, or organization

organization and is presented in

(85%)

readability and articulation of main

that prevent understanding of

a professional and easy to read

ideas (55%)

ideas (0%)

format (100%)

Earned Total

100%

Final Project Part III

Part III Overview

To make corporate finance decisions, take an advanced finance course, or pursue a career in finance, you will need to understand basic concepts. This includes going beyond the number crunching and reading graphs in order to analyze various financial indicators. This analysis can lead to many important decisions in your financial career. For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial knowledge and analysis skills.

This part of the assessment addresses the following course outcomes:

Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements Differentiate between various financial markets and institutions by comparing and contrasting options when selecting appropriate private and corporate investments Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success Analyze corporate financial data for multiple companies in evaluating past and future financial performances

Part III Prompt

The results of both sections of your employment examination have finally been received, and you were offered the position. You have a few important decisions to make before you can formally accept or decline the position. When composing your answers to these decisions, ensure that they are cohesive and read like a short essay.

Your submission must address the following critical elements:

School Versus Work The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date, or a combination of both. Provide the appropriate data and calculations that you would perform to make this decision. What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers. Suppose that you choose to sell your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind this choice? Consider supporting your answer with quantitative data. Suppose that you choose to accept the job. What is your financial reasoning behind this choice? Be sure to support your answer with quantitative data. Bonus Versus Stock The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company’s stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why? What are the advantages and disadvantages of each option? Be sure to support your answers. What would you ultimately choose to do? What is your financial reasoning behind this choice? Consider supporting your answer with quantitative data. Compliance While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder? Be sure to reference any applicable statutes or laws. You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?

Final Project Part III Rubric

Guidelines for Submission: Please ensure that your decision plan is submitted as one comprehensive and cohesive short essay. It should use double spacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.

Critical Elements

Exemplary

Proficient

Needs Improvement

Not Evident

Value

School Versus Work:

Accurately calculates the worth

Calculates the worth of stocks,

Does not calculate the worth of

11.88

Finance Your Education

of stocks, bonds, and

bonds, and combinations of

stocks, bonds, and combinations

combinations of stocks and

stocks and bonds, but calculation

of stocks and bonds (0%)

bonds, including the appropriate

is inaccurate or appropriate data

data and calculations with

and/or calculations are not

submission (100%)

included in submission (55%)

School Versus Work:

Meets “Proficient” criteria and

Comprehensively differentiates

Differentiates the advantages and

Does not differentiate the

11.88

Advantages and

provides historical data, as well

the advantages and

disadvantages of selling a

advantages and disadvantages of

Disadvantages

as quantitative data, to support

disadvantages of selling a

combination of stocks and bonds,

selling a combination of stocks

answer (100%)

combination of stocks and bonds

but analysis is not comprehensive

and bonds (0%)

and provides support for answer

or support is cursory or missing

(85%)

(55%)

School Versus Work:

Meets “Proficient” criteria and

Examines choice to sell stocks,

Examines choice to sell stocks,

Does not examine choice to sell

7.92

Choose to Sell

supports examination with

bonds, or combination of both,

bonds, or combination of both,

stocks, bonds, or combination of

quantitative data (100%)

explaining the financial

but explanation of the financial

both (0%)

reasoning behind the choice

reasoning behind the choice is

(85%)

cursory or missing (55%)

School Versus Work:

Meets “Proficient” criteria and

Examines choice to accept the

Examines choice to accept the

Does not examine choice to

7.92

Accept the Job

supports examination with

job, explaining the financial

job, but explanation of the

accept the job (0%)

quantitative data (100%)

reasoning behind the choice

financial reasoning behind the

(85%)

choice is cursory or missing (55%)

Bonus Versus Stock:

Meets “Proficient” criteria, and

Accurately calculates the best

Calculates the best choice of

Does not calculate the best choice

11.88

Offered

explanation of the best choice

choice of receiving a cash bonus

receiving a cash bonus versus

of receiving a cash bonus versus

demonstrates nuanced

versus receiving company stock,

receiving company stock, but

receiving company stock (0%)

understanding of the time-value

including an explanation of the

calculation is inaccurate or

of money (100%)

best choice (85%)

explanation of best choice is

cursory or missing (55%)

Bonus Versus Stock:

Meets “Proficient” criteria, and

Comprehensively analyzes the

Analyzes the advantages and

Does not analyze the advantages

11.88

Advantages and

analysis includes quantitative

advantages and disadvantages of

disadvantages of the cash and

or disadvantages of the cash and

Disadvantages

data (100%)

the cash and stock options,

stock options, but analysis is not

stock options (0%)

supporting each option (85%)

comprehensive or support for

each option is cursory or missing

(55%)

Bonus Versus Stock:

Meets “Proficient” criteria and

Chooses cash or stock option,

Chooses cash or stock option,

Does not choose cash or stock

7.92

Choose

supports choice with

including logical financial

including financial reasoning

option (0%)

q

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