Fin 640(No plagiarism please)

FIN 640 Milestone One Guidelines and Rubric Overview: For your final project, the CEO has asked you, the new investment manager of XYZ Tech Company, to produce an investment analysis report describing how to invest the firm’s cash and cash equivalents in the financial markets. You will prepare an investment analysis report for the company, which will include a portfolio analysis template that you will use to outline how you will invest the cash in selected public corporations. Finally, your reasons behind your investment strategies should be noted in an executive summary. For this first milestone, due in Module Three, you will submit your company profile. Using the investment parameters for XYZ Tech Company along with your own financial database research, you will fill in the portfolio analysis template and write a 2- to 3-page paper outlining the securities that your company will invest in to create a well-diversified investment portfolio. You will analyze each company and its performance in the financial markets over the past five years, include a company valuation for each firm, and identify stakeholders in the company. Prompt: First, visit Morningstar to retrieve stock and bond information for each of the following companies:

 Apple, Inc. (AAPL)

 Caterpillar (CAT)

 Consolidated Edison (ED)

 Northern Trust (NTRS)

 Macy’s (M) Next, using the portfolio analysis template, provide the specified data to explain the company’s growth period (revenues, earnings market share, etc.). Finally, in a 2- to 3-page paper, discuss the five-year history of each company by visiting the respective websites and databases covering the firm and industry. The paper should briefly discuss the products and services produced by each company that were major contributors to the company’s success. It should also discuss each company’s strengths given the competitive nature of the industry. Based on the financial items and key ratios of the company that you have researched, include a brief discussion of the company’s valuation. (Hint: The Key Ratios on the Morningstar website list competition and industry ratios and could be downloaded directly into Excel for easier comparison.) You should also identify the key stakeholders, particularly common stakeholders, in the company.

Specifically, you must address the following critical elements:

I. Company and Market Analysis: In this section, you will analyze the company and its position in the financial markets. A. Financial Markets

i. Analyze the five-year performance of the domestic economy relative to the financial markets (using the portfolio analysis template). ii. Explain specific market performance data based on compiled asset valuation model inputs supported by database research of five-year

sector and industry performance and current trends. iii. Evaluate the impact of the five-year and current macroeconomic data on asset prices.

B. Company Valuation i. Analyze the company’s financial items and key ratios for a comparison to peers and industry (using the portfolio analysis template).

ii. Determine the intrinsic value of assets by inputting data into the various asset valuation models. D. Stakeholders

i. Identify five key stakeholders and their needs in relation to the company’s portfolio. ii. Identify the common stockholders’ primary objective and their required return on equity.

Refer to your text readings and other course resources to support your responses. In Milestones Two and Three, and for the final project submission, you will be using the portfolio analysis template that you have prepared in this milestone. Be

sure to refer back to this (and update and revise it as necessary) as you continue your work throughout the course. You should also be monitoring the portfolio’s performance on a daily basis and reading the financial periodicals provided among the course resources to stay current with your investments. Be sure to apply instructor feedback on this milestone to your final project.

Rubric Guidelines for Submission: Submit both your completed portfolio analysis template and company profile. The written component of this milestone should be submitted as a Word document, 2–3 pages in length, double-spaced, using 12-point Times New Roman font, one-inch margins, and the latest edition of the APA manual for formatting and citations. Please note that the grading rubric for this milestone submission is not identical to that of the final project. The Final Project Rubric will include an additional “Exemplary” category that provides guidance as to how you can go above and beyond “Proficient” in your final submission. 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 Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value

Financial Markets: Domestic Economy

Analyzes the five-year performance of the domestic economy relative to the financial markets

Analyzes the five-year performance of the domestic economy relative to the financial markets, but analysis is cursory or contains inaccuracies

Does not analyze the performance of the domestic economy

13

Financial Markets: Asset Valuation Model Inputs

Explains specific market performance data based on compiled asset valuation model inputs supported by database research of five-year sector and industry performance and current trends

Explains specific market performance data based on compiled asset valuation model inputs, but explanation is cursory, is not supported by database research of five-year sector and industry performance and current trends, or contains inaccuracies

Does not explain specific market performance data based on compiled asset valuation model inputs

13

Financial Markets: Macroeconomic Data

Evaluates the impact of the five- year and current macroeconomic data on asset prices

Evaluates the impact of the five- year and current macroeconomic data on asset prices, but evaluation is cursory or contains inaccuracies

Does not evaluate the impact of the macroeconomic data on asset prices

13

Company Valuation: Financial Items and Key

Ratios

Analyzes the company’s financial items and key ratios in order to demonstrate a comparison to peers and industry

Analyzes the company’s financial items and key ratios in order to demonstrate a comparison to peers and industry, but analysis is cursory, comparison is incomplete, or response contains inaccuracies

Does not analyze the company’s financial items and key ratios in order to demonstrate a comparison to peers and industry

13

Company Valuation: Intrinsic Value

Determines the intrinsic value of assets by inputting data into the various asset valuation models and explains how each model was applied

Determines the intrinsic value of assets by inputting data into the various asset valuation models, but determination contains inaccuracies, or asset valuation models are not used correctly, or lacks explanation

Does not determine the intrinsic value of assets

13

Stakeholders: Key Stakeholders

Identifies five key stakeholders and their needs in relation to the company’s portfolio

Identifies key stakeholders and their needs in relation to the company’s portfolio, but does not identify five stakeholders, needs are inappropriately identified in relation to the portfolio, or response contains inaccuracies

Does not identify key stakeholders and their needs in relation to the company’s portfolio

13

Stakeholders: Common Stockholders

Identifies the common stockholders’ primary objective and their required return on equity

Identifies the common stockholders’ primary objective and their required return on equity, but identification is inaccurate or does not take into account either the objective or return on equity

Does not identify the common stockholders’ primary objective or their required return on equity

13

Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

9

Total 100%