write a ten to fifteenoh,ohoh

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the Instructor Center.

Assignment 1: Financial Research Report

Due Week 9 and worth 3 points

Imagine that !ou are a "nancial manager researching in#estments $or !our client

that align with its in#estment goals. %se the Internet or the &tra!er 'i(rar! to

research an! %.&. pu(licl! traded compan! that !ou ma! consider as an in#estment

opportunit! $or !our client. )*ote: +lease ensure that !ou are a(le to "nd enough

in$ormation a(out this compan! in order to complete this assignment. ,ou will

create an appendi- in which !ou will insert related in$ormation./

0he assignment co#ers the $ollowing topics:

Rationale $or choosing the compan! $or which to in#est

Ratio anal!sis

&tock price anal!sis

Recommendations

Re$er to the $ollowing resources to assist with completing !our assignment:

&tock &election



2

For(es 4&i- Rules to Follow When +icking &tocks5

C** 6one! 4&tocks: In#esting in stocks5

0he 6otle! Fool 413 &teps to In#esting Foolishl!5

&eeking Alpha 40he 7raham And Dodd 6ethod For 8aluing &tocks5

In#estopedia 47uide to &tock+icking &trategies5

&eeking Alpha 47et ,our &mart eta ;ere< Di#idend 7rowth &tocks As =&trategic

eta> In#estments5

6arket and Compan! In$ormation

%.&. &ecurities and ?-change Commission 46arket &tructure5

,ahoo< Finance

6ergent @nline )*ote: 0his resource is also a#aila(le through the &tra!er 'earning

Resource Center./

&eeking Alpha )*ote: Also a#aila(le through the Android or i0unes App store./

6orningstar )*ote: ,ou can create a nocost asic Access account./

Research ;u( located in the le$t menu o$ !our course in lack(oard. Write a ten to

"$teen )11/ page paper in which !ou:

Wells Fargo



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1.Provide a rationale for the U.S. publicly traded company that you

selected, indicating the signicant factors driving your decision as a

nancial manager. 4 0his paper will determine i$ Wells Fargo is a sound stock

in#estment $or m! client. 0his has to (e determined in order to gi#e m! potential

in#estor good sound ad#ice concerning Wells Fargo. W?''& Fargo is a good stock

in#estment.0his paper will anal!Be the stock num(ers ratios at Wells Fargo as well

as show the signi"cance o$ "nance industr! to pro#e this is a "t $or m! client. Wells

Fargo is not the per$ect in#estment (ut has man! o$ the ualities that the 21st

centur! in#estor needs in an in#estment. First o$ all I will e-amine the pro"le o$ m!

potential in#estor.

2. Determine the prole of the investor for which this company may be a

t, relative to that potential investor’s investment strategy. Provide

support for your rationale. 0he in#estor likes to tr! to in#est in "nancial

institution like (anks. 0he $ollowing is a pro"le o$ the Wells Fargo Co: 4Wells Fargo

Co. is a nationwide di#ersi"ed communit!(ased "nancial ser#ices and (ank

holding compan!. It pro#ides (anking insurance in#estments mortgage and

consumer and commercial "nance through its stores A06s the Internet and other

distri(ution channels across *orth America and internationall!. 0he compan!

operates through three operating segments: Communit! anking Wholesale

anking and Wealth rokerage and Retirement. 0he Communit! anking segment

oEers a complete line o$ di#ersi"ed "nancial products and ser#ices to consumers

and small (usinesses. It also oEers in#estment management and other ser#ices to

retail customers and securities (rokerage through aliates. 0hese products and

ser#ices include the Wells Fargo Ad#antage Funds &6 a $amil! o$ mutual $unds. Its

'oan products include lines o$ credit auto Goor plan lines euit! lines and loans



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euipment and transportation loans education loans origination and purchase o$

residential mortgage loans and ser#icing o$ mortgage loans and credit cards. 0he

Wholesale anking segment pro#ides "nancial solutions to (usinesses across the

%nited &tates. It also pro#ides a complete line o$ commercial corporate capital

markets cash management and real estate (anking products and ser#ices. 0he

Wealth rokerage and Retirement segment pro#ides a range o$ "nancial ad#isor!

ser#ices to clients using a planning approach to meet each clients needs. It also

pro#ides aJuent and high net worth clients with a complete range o$ wealth

management solutions including "nancial planning pri#ate (anking credit

in#estment management and trust. 0he compan! was $ounded (! ;enr! Wells and

William 7. Fargo on 6arch 1K 1K2 and is headuartered in &an Francisco CA5

).http:LLwww.marketwatch.comLin#estingLstockLw$cLpro"le/. Wells Fargo oEers

di#erse "nancial ser#ices. 0his "ts the pro"le o$ m! potential in#estor (ecause he

wants to (e in#ol#ed in a compan! that oEers "nancial ser#ices to the regular

consumer (usinesses the wealth and other segments o$ the (usiness world and

other sect o$ the population. For one reason this in#estor likes the success$ul

acuisition histor! o$ Wells Fargo. Another reason the in#estor wants to in#est in a

"nancial institution (ecause he wants to help others with their liuidit!. 0he market

$or "nancial institutions is #er! competiti#e. 0he $ollowing is a little (it a(out how

the pro"le o$ Wells Fargo "ts m! client. Wells Fargo is a great choice $or someone

that wants to in#est in a constitution that has low contro#ers! and !et at the same

time is a good ualit! compan!. 4WFC a#oids contro#ers! and pa!s in#estors

handsomel!Mnow it>s the world>s most #alua(le (ank5 )%& *ews

mome!.usnews.com/N.I$ !ou opened up a Wells Fargo )ticker:WFC/ checking

account with O a !ear ago !ou made somewhere in the neigh(orhood o$ .1



percent annual percentage !ield. ut i$ !ou in#ested that same amount in Wells

Fargo stock then (oomM!ou made !oursel$ more than OPH or close to 13 percent

on !our mone!. Wells Fargo has deli#ered ut i$ !ou think that means highQ"#es

and dancing on the desks $or the 2PP emplo!ees o$ this &an Franciso(ased

compan! guess again. 4It>s certainl! a nice recognition (ut $or sit>s prett! much

heads down and keep !our $ocuson !our wprk5W?''& Fargo spokeswoman 6ar!

?shet sa!sNW?''& Fargo stock has pro#en stead! )with a $ew dips here and there/

going (ack to third uarter o$ 29and more than dou(ling since5

)mone!.usnews.com/. Wells Fargo is not a per$ect institution and has Guctuations in

the prices o$ its stock (ut what stands out a(out Wells Fargo it is a #er! #alua(le

(ank and has pro#en itsel$ to (e #alua(le and stood without the assistance o$

(ailout mone! despite the economic crisis. I$ a (ank is according to the a(o#e uote

is the most #alua(le (ank and has stood despite the economic crisis that came

along then this is a per$ect $or the in#estor. ;owe#er instead o$ going (! the claim

it is the most #alua(le (ank I will do a ratio anal!sis to ensure it is a good "t $or the

in#estor.

3.Select any ve (! nancial ratios that you have learned about in the

te"t. #naly$e the past three (%! years of the company’s nancial data,

which you may obtain from the company’s nancial statements. Determine

the company’s nancial health. (&ote' Suggested ratios include, but are

not limited to, current ratio, uic) ratio, earnings per share, and price

earnings ratio.! I am going to anal!Be "#e o$ the ratios to ensure that Wells Fargo

is a right "t $or m! in#estor. 0he "rst on e that I am going to e-amine is the current

ratio o$ Wells Fasrgo $or the last three !ears. First o$ all let>s start with the de"nition

o$ current ratio.



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*+he current ratio is a liuidity ratio that measures a companys ability to

pay short-term obligations. t is calculated as a companys +otal /urrent

#ssets divided by its +otal /urrent 0iabilities. 1ells 2argo 3 /os current

ratio for the uarter that ended in Sep. 456 was 5.55. 1ells 2argo 3 /o

has a current ratio of 5.55. t indicates that the company may have

di7culty meeting its current obligations. 0ow values, however, do not

indicate a critical problem. f 1ells 2argo 3 /o has good long-term

prospects, it may be able to borrow against those prospects to meet

current obligations8

(http'99www.gurufocus.com9term9current:ratio912/9/urrent;4<=atio91ells

;4<2argo;4<;44>;4</o!.

Since 1ells 2argo current ratio is 5.55 it means has a lot of liabilities.

?owever, if their credit is in good standing it can obtain loans to pay o@

those liabilities or use collateral to pay the liabilities.

&ow let’s e"amine the current ratio of 1ells 2argo for the last three years'

Sept. %5, 456 5.6AB

Cune %5, 456 6.45%

arch %6, 456 6.66A

Dec. %6, 456E 6.>F>

Sept. %5, 456E .56

Cune %5, 456E 5.F45E

arch %6, 456E 5.>%

http://www.gurufocus.com/term/current_ratio/WFC/Current%2BRatio/Wells%2BFargo%2B%2526%2BCo






S

Dec. %6, 456% 6.5A5

Sept. %5, 456% 5.%6

Cune %5, 456% 5.%6EF

arch %6, 456% 5.4>B4

Dec. %6, 4564 5.A46>

Sept. %5, 4564 5.%4>A

Cune %5, 4564 5.%556

arch %6, 4564 5.%%%>

+he current ratio measures a companys ability to pay short-term debts

and other current liabilities (nancial obligations lasting less than one

year! by comparing current assets to current liabilities. +he ratio

illustrates a companys ability to remain solvent8

# current ratio of one means that boo) value of current assets is e"actly

the same as boo) value of current liabilities. n general, investors loo) for

a company with a current ratio of 4'6, meaning current assets twice as

large as current liabilities. # current ratio less than one indicates the

company might have problems meeting short-term nancial obligations. f

the ratio is too high, the company may not be e7ciently using its current

assets or short term nancing facilities8

(https'99ycharts.com9companies912/9current:ratio!.

https://ycharts.com/companies/WFC/current_ratio

https://ycharts.com/companies/WFC/current_ratio



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n the last three years based on this G chart it seems li)e Sept %5, 456E

was the only time 1ells 2argo had s good current ratio. #ll of the other

months they seem to have a little more assets than liability but not much

more.

4. Huic) ratio-#cid test or uic) ratio-current assets, less inventories,

divided by current liabilities8 ( <aron’s 2inance!I<y eliminating

the less liuid inventory and concentrating on assets more easily

converted into cash, the acid-test (or uic)! ratio determines whether a

rm could meet its creditor obligations if sales were to drop

catastrophically8 (<arnes 2inance.

1ells 2argo 3s Huic) =atio- +he uic) ratio measures a companys ability

to meet its short-term obligations with its most liuid assets. t is

calculated as a companys +otal /urrent #ssets e"cludes nventory divides

by its +otal /urrent 0iabilities. 1ells 2argo 3 /os uic) ratio for the

uarter that ended in Sep. 456 was 5.55.

1ells 2argo 3 /o has a uic) ratio of 5.55. t indicates that the company

cannot currently fully pay bac) its current liabilities.

12/s uarterly Huic) =atio and /ash 3 cash euivalent, /urrent

0iabilities growth



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12/s uarterly Huic) =atio and /ash 3 cash euivalent, /urrent

0iabilities growth

(http'99csimar)et.com9stoc)s9single2inancialStrength.phpJ

codeK12/3Hr3histK412/ /ompany Prole LL <ac) to 12/ 2inancial

Strength /omparisons LL Mo to /ompare

12/ Huic) =atio to its /ompetitors

12/ Huic) =atio (arch %6, 456!

. Huarter (Dec. %6, 456E!

N. Huarter (Sep. %5, 456E!

. Huarter (Cune %5, 456E!

. Huarter (arch %6, 456E!

. Huarter

G 9 G /urrent 0iabilities /hange 64.6E ; A. ; F.>B ; F.%% ; >.5F ;

G 9 G /ash 3 cash euivalent /hange 45.6A ; 6>.AE ; B.BE ; E.BB ; -6.E

;

Huic) =atio =H 5.4B 5.4B 5.4> 5.4> 5.4



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Overall =an)ing 456 %4B %> 64 EFB

Se. /urrent 0iabilities /hange %.% ; %.F% ; 6.A ; 4.>F ; 6.6 ;

Se. /ash 3 cash euivalent /hange E.B ; B.F ; 4.56 ; E.B% ; 6.B ;

&ew' ore 12/s historic Huic) =atios LL

Huic) =atio rst uarter 456 /omment

Due to increase in /urrent 0iabilities in the rst uarter 456, Huic) =atio

fell to 5.4B below 1ells 2argo 3 /ompany average.

1ithin oney /enter <an)s industry other companies have achieved

higher Huic) =atio than 1ells 2argo 3 in rst uarter 456. 1hile Huic)

=atio total ran)ing has improved so far to 456, from total ran)ing in

previous uarter at %4B.

Q"plain Huic) =atioJ

1hat are 12/ SegmentsJ

See Huic) =atio 12/ on the trailing twelve month basis



11

Huic) =atio rst uarter 456 /ompany =an)ing

1ithin' &o.

ndustry >

Sector 4E

S3P 55 456

Huic) =atio Statistics

?igh #verage 0ow

5.4A 5.6F 5.5%

(Cune %5, 456! (arch

12/ Huic) =atio (arch %6, 456!

. Huarter (Dec. %6, 456E!

N. Huarter (Sep. %5, 456E!



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. Huarter (Cune %5, 456E!

. Huarter (arch %6, 456E!

. Huarter

G 9 G /urrent 0iabilities /hange 64.6E ; A. ; F.>B ; F.%% ; >.5F ;

G 9 G /ash 3 cash euivalent /hange 45.6A ; 6>.AE ; B.BE ; E.BB ; -6.E

;

Huic) =atio =H 5.4B 5.4B 5.4> 5.4> 5.4

Overall =an)ing 456 %4B %> 64 EFB

Se. /urrent 0iabilities /hange %.% ; %.F% ; 6.A ; 4.>F ; 6.6 ;

Se. /ash 3 cash euivalent /hange E.B ; B.F ; 4.56 ; E.B% ; 6.B ;

&ew' ore 12/s historic Huic) =atios LL



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Huic) =atio rst uarter 456 /ompany =an)ing

1ithin' &o.

ndustry >

Sector 4E

S3P 55 456

Debt9Quity

http'99www.businesswire.com9news9home9456E566E55F%>9en91ells-

2argo-=eports-=ecord-2ull-Gear-HuarterlyR

Wells Fargo ;istorical Tuick Ratio )Tuarterl!/ Data

Sept. %5, 456 5.6AB

Cune %5, 456 6.45%

arch %6, 456 6.66A

Dec. %6, 456E 6.>F>

Sept. %5, 456E .56

Cune %5, 456E 5.F45E

arch %6, 456E 5.>%

Dec. %6, 456% 6.5A5

Sept. %5, 456% 5.%6

http://www.businesswire.com/news/home/20140114005836/en/Wells-Fargo-Reports-Record-Full-Year-Quarterly%5C






1H

Cune %5, 456% 5.%6EF

arch %6, 456% 5.4>B4

Dec. %6, 4564 5.A46>

Sept. %5, 4564 5.%4>A

Cune %5, 4564 5.%556

arch %6, 4564 5.%%%>

Denition

+he Huic) (a)a acid! =atio is used as a solvency metric to determine a

rms ability to pay down current liabilities with its cash, short term

euivalents, and accounts receivables. +his ratio was nic)named uic) to

describe the uic) assets needed to pay down any current liabilities.

2irms with high uic) ratios often indicate the rm is solvent and able to

pay current liabilities uic)ly.

2irms with low uic) ratios may mean that the rm is potentially having

solvency issues.

Other similar solvency ratios include '

/ash =atio - easures the amount of cash that can be used to pay

liabilities (stricter!



1

/urrent =atio - easures the amount of current assets over current

liabilities (more lenient!.

+he uic) ratio is more lenient than the cash ratio, but stricter than the

current ratio. +he cash ratio is the most strict because it only calculates

the amount of cash and short term euivalents to pay o@ current

liabilities. +he uic) ratio assumes accounts receivables to be a liuid

enough asset that can potentially be used to pay o@ current liabilities.

/ompanies with poor credit policies (managing accounts receivables! may

have high uic) ratios, but not be as solvent as they appear.

#

2ormula

G/harts calculates this formula by adding /ash, Short +erm Quivalents,

and #ccounts =eceivables 9 /urrent 0iabilities8 (Gchart! +he uic) rtio is

indeed strict.

&ow let’s loo) at earnings per share'

Qarnings Per Share- 4?arnings +er &hare )?+&/ is the amount o$ earnings per

outstanding share o$ the compan!Us stock. In calculating earnings per share the

di#idends o$ pre$erred stocks need to (e su(tracted $rom the total net income "rst5

)guru$ocus.com/.



1P

*1ells 2argo ?istorical QPS Diluted (Huarterly! Data

Data for this Date =ange

Sept. %5, 456 6.5

Cune %5, 456 6.5%

arch %6, 456 6.5E

Dec. %6, 456E 6.56A

Sept. %5, 456E 6.54

Cune %5, 456E 6.56

arch %6, 456E 6.5

Dec. %6, 456% 6.554

Sept. %5, 456% 5.AA

Cune %5, 456% 5.AF

arch %6, 456% 5.A4

Dec. %6, 4564 5.A5AB

Sept. %5, 4564 5.FF

Cune %5, 4564 5.F4

arch %6, 4564 5.B

Denition



1S

*Qarnings per share (QPS! the amount of income that belongs to each

share of common stoc). #n important tool for investors, QPS is often used

in determining the value of a stoc).

+he average number of shares outstanding (the denominator of the QPS

formula! is usually calculated by averaging the number of shares at the

beginning of the earning period and the number of shares at the end of

the period. 2or e"ample, if a company earned T6 million in 455A and had

A55,555 shares at the beginning of 455A and 6.6 million shares at the end

of 455A, the 455A QPS would be T6 million9(.A million shares V 6.6 million

shares!94W K T69share.

QPS is generally reported in annuali$ed form from the most recent scal

year. 2rom time to time, you will see the abbreviation (ttm! associated

with earnings per share. +hat means that the earnings number is a sum of

the previous four uarters, which is not necessarily the same as the

previous scal year.

2ormula

Qarnings per Share K &et ncome 9 #verage &umber of Shares Outstanding

during ncome Period



1K

Qarnings per Share (++! K &et ncome (0ast 2our Huarters! 9 #vg &umber

Shares Outstanding

G/harts uses &et Qarnings Per Share (Diluted! as its QPS number. +his is

net earnings or losses attributable to common shareholders divided by

shares outstanding after all convertible securities, options and warrants

have been e"ercised8( https'99ycharts.com9glossary9terms9eps!.

E- Price earnings ratio- *+here are at least three )inds of P9Q ratios used

by di@erent investors. +hey are +railing +welve onth P9Q =atio or P9Q

(ttm!, forward P9Q, or P9Q (&=!. # new P9Q ratio based on inXation-

adYusted normali$ed P9Q ratio is called Shiller P9Q, after Gale professor

=obert Shiller.

n the calculation of P9Q (ttm!, the earnings per share used are the

earnings per share over the past 64 months. 2or 2orward P9Q, the earnings

are the e"pected earnings for the ne"t twelve months. n the case of P9Q

(&=!, the reported earnings less the non-recurring items are used.

2or the Shiller P9Q, the earnings of the past 65 years are inXation-adYusted

and averaged. +he result is used for P9Q calculation. Since it loo)s at the

average over the last 65 years, Shiller P9Q is also called

PQ658(http'99www.gurufocus.com9term9pe912/9P;442Q;4<=atio91ells

;4<2argo;4<;44>;4</

Dec. E, 456 6%.E Dec. E, 4564 65.4A

http://www.gurufocus.com/term/pe/WFC/P%252FE%2BRatio/Wells%2BFargo%2B%2526%2BC






19

Dec. E, 456E 6%.% https'99ycharts.com9companies912/9pe:ratio

1ells 2argo PQ =atio (++&!&12/:G /harts!. (n.d.!. =etrieved from

http'99ycharts.comm9company12/9pe-ratio

Dec. E, 456% 66.6

delete

n-te"t

1ells 2argo shares seem to be earning pretty much.



2

Dividend payout ratio measures the percentage of the companyZs

earnings paid out as dividends.

1ells 2argo 3 /os Dividend Payout =atio for the scal year that ended in

Dec. 456E is calculated as

Dividend Payout =atio K Dividends Per Share (#' Dec. 456E ! 9 Qarnings per

Share (#' Dec. 456E !

K 6.% 9 E.6

K 5.%%

1ells 2argo 3 /os Dividend Payout =atio for the uarter that ended in

Sep. 456 is calculated as

Dividend Payout =atio K Dividends Per Share (H' Sep. 456 ! 9 Qarnings

per Share (H' Sep. 456 !

K 5.%B 9 6.5

1ells 2argo 3 /o #nnual Data

Dec5 Dec5> Dec5B Dec5F Dec5A Dec65 Dec66 Dec64 Dec6% Dec6E



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payout 5.EE 5.EE 5.5 6.F> 5.4F 5.5A 5.6 5.4% 5.%5 5.%%

1ells 2argo 3 /o Huarterly Data

Cun6% Sep6% Dec6% ar6E Cun6E Sep6E Dec6E ar6 Cun6 Sep6

payout 5.%6 5.%5 5.%5 5.4A 5.% 5.%E 5.%E 5.%E 5.%> 5.%>

http'99www.gurufocus.com9term9payout9&GSQ'12/9Dividend;4<Payout

;4<=atio91ells;4<2argo;4<;44>;4</o

https'99ycharts.com9companies912/9cash:dividend:payout:ratio

Sept. %5, 456 %E.4A;

Cune %5, 456 E6.%>;

arch %6, 456 EE.>;

Dec. %6, 456E E4.E5;

Sept. %5, 456E 4%.FA;

Cune %5, 456E 6F.A>;

arch %6, 456E 64.%>;

Dec. %6, 456% 65.6;

Sept. %5, 456% 65.F4;

Cune %5, 456% 66.E>;

arch %6, 456% A.46;

http://www.gurufocus.com/term/payout/NYSE:WFC/Dividend%2BPayout%2BRatio/Wells%2BFargo%2B%2526%2BCo






22

Dec. %6, 4564 B.A4;

Sept. %5, 4564 6>.E6;

Cune %5, 4564 6F.%F;

arch %6, 4564 4>.B4;

https'99ycharts.com9companies912/9cash:dividend:payout:ratio

*#bout /ash Dividend Payout =atio

Proportion of free cash Xow (after preferred dividends! that is paid as

dividends to common shareholders. f icrosoft generates 5 million in

operating cash Xow, has capital e"penditures of 45 million, pays preferred

dividends 65 million and pays common dividends million, icrosoft has a

cash dividend payout ratio of 4;. 9(5-45-65!

<ecause net earnings can be easily manipulated and cash Xows are harder

to manipulate, this ratio is useful to analy$e cash Xow being paid in

dividends. f this number is consistently high, or greater than 6, it

indicates that the rm is paying out more in dividends than it is receiving

in actual cash8 https'99ycharts.

basedcom9companies912/9cash:dividend:payout:ratio. 1ell based on the

analogy pf the G chart. 1ells 2argo seems to be paying out signicant

dividends. believe based on the other ratios 1ells 2argo pays out a lot of

cash dividends and has a lot of e"penditures. ?owever, based on their

https://ycharts.com/companies/WFC/cash_dividend_payout_ratio

https://ycharts.com/companies/WFC/cash_dividend_payout_ratio



23

good credit history 1ells 2argo will not go into a hole because they )now

how to wor) their wor)ing capital.

H.<ased on your nancial review, determine the ris) level of the company

from your investor’s point of view. ndicate )ey strategies that you may

use in order to minimi$e these perceived ris)s. 1hile *1ells 2argo

investors should always watch out for changes in )ey indicators, including

slowdowns on the mortgage ban)ing and earnings growth side, the future

has only clear s)ies ahead for 12/ stoc), Pattnai) says.

1e notice that 1ells 2argo continues to e"hibit strong fundamental

performance and has enYoyed a premium valuation multiple to its peers

over the years, she says. #nd we believe thats Yustied, considering

1ells better Kprotability, well-diversied business model and consistent

earnings performance. 1ells 2argo is a protable company and has lots

of earnings. 1ells 2argo also has a diversied portfolio. t is a mortgage

company, an investment lender among other things. t has been said that

1ell 2argo is conservative compare to other nancial institutions. +he ris)

in 1ells 2argo is small as long as they do not get caught up into too many

ventures.

#nd be cautious



2H

[http'99money.usnews.com9money9personal-nance9mutual-

funds9articles945695B94E9why-wells-fargo-is-the-best-ban)-stoc)-today!.

*1ells 2argo 3 /o., the largest ban) in the U.S. by mar)et value, has

been rewarded for )eeping its business simple. &ow it is slowly creeping

into more comple"\and ris)ier\territory

http'99www.wsY.com9articles9wells-fargo-warms-up-to-ris)-6E4FFBB%>

41ells 2argo 1arms Up to =is)8 <y

Qmily Mla$er

+hey can minimi$e ris)s by really researching any new territory before

getting into it. #lways have appropriate sta@ for any territory that they

are getting into. 1ells 2argo should )eep whatever new territory they are

getting into simple.

Updated #pril 64, 456 A'%E p.m. Q+

. Provide your recommendations of this stoc) as an investment

opportunity. Support your rationale with resources, such as peer-reviewed

articles or material from the Strayer 0ibrary. 6! recommendations are (ased

on the $ollowing: While the old in#esting a-iom 4past results do not guarantee

$uture per$ormance5 is true and $reuentl! repeated it is also misleading. In

order $or a stock to meet the criteria o$ this in#esting strateg! it has to (e a strong

past per$ormer. It doesn>t ha#e to (e up o#er the last !ear or e#en a couple o$

!ears (ut the longterm chart has to (e compelling.

)http:LLwww.$or(es.comLsitesL(enBingainsightsL212LPL1Lsi-rulesto$ollowwhen

pickingstocksL/.5



2

P.%se at least "#e )/ ualit! academic resources in this assignment. *ote:

Wikipedia and other We(sites do not uali$! as academic resources.

,our assignment must $ollow these $ormatting reuirements:

e t!ped dou(le spaced using 0imes *ew Roman $ont )siBe 12/ with oneinch

margins on all sidesV citations and re$erences must $ollow A+A or schoolspeci"c

$ormat. =eferences

Check with !our pro$essor $or an! additional instructions.

Include a co#er page containing the title o$ the assignment the student>s name

the pro$essor>s name the course title and the date. 0he co#er page and the

re$erence page are not included in the reuired assignment page length.

0he speci"c course learning outcomes associated with this assignment are:

Critiue "nancial management strategies that support (usiness operations in

#arious market en#ironments.

Anal!Be "nancial statements $or ke! ratios cash Gow positions and ta-ation

eEects.

Re#iew "-ed income strategies using time #alue o$ mone! concept (ond #aluation

methods and interest rate calculations.

?stimate the risk and return on "nancial in#estments.

Appl! "nancial management options to corporate "nance.



2P

Determine the cost o$ capital and how to ma-imiBe returns.

Formulate cash Gow anal!sis $or capital proects including proect risks and returns.

?#aluate how corporate #aluation and $orecasting aEect "nancial management.

Anal!Be how capital structure decisionmaking practices impact "nancial

management.

%se technolog! and in$ormation resources to research issues in "nancial manage

write a ten to fifteenoh,ohoh

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