FINC E300 UMGC – Europe (Remote) Essay
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
UMGC – Europe (remote) FINC E300
Spring (i) 2021 Case 6
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Provide answers to each of the following questions. (25 points: 10 points individual; 10 points class bonus)
(Last Name, First Name)
Case 5 Marks: = + /15
Content: /5 (i.e., which areas do you choose to emphasize and why?)
Analysis: /5 (i.e., are analyses cited the most appropriate to support your conclusion)?
Presentation: /5 (i.e., structure, paragraphing, supporting documentation, references, etc.)
Assignment:
For Cases 5 and 6, your task is to choose one home-building company listed on the New York Stock Exchange (NYSE) and review its performance relative to others and to the market. (A simple browser search is all you’ll need here.)
If your question is why a home-building company, the answer is simple. Residential construction is typically a pro-cyclical business. So that when recessions hit, the industry suffers disproportionately. The pandemic recession is different, however, which, in our view, makes these firms an interesting study right now.
In Case 5, you’re to focus on ratio analysis; Case 6, stock and bond analysis.
This is not, I repeat, not a grandiose project. Your task is simply to go beyond what you’ve done in previous cases and, referencing relative ratios, prices, financial data, and so on, present your overall view of the firm. Ideally, you’ll limit your prose to 2 or 3 pages (single space) per case, attaching whatever tables, graphs, and so on you deem appropriate. Please keep in mind, however, that you’re not required to attach anything. This is not a contest to see who can be the most verbose. In fact, it’s just the opposite. A solid effort is one that succinctly tells a story supported by well-selected evidence.
Case 6 –Bond and Stock Performance Analysis (due: March 8)
Your task? Evaluate the bond and stock performance for the residential construction company you identified in Case 5.
Please make sure that your company has bonds listed on the http://finra-markets.morningstar.com/BondCenter/Default.jsp website. If not, select another NYSE-listed residential-construction company that does.
As you prepare your summary, you’ll want to review each of the following.
- The company’s financial leverage ratios shown below for the past three to five years.
Debt-to-assets ratio
Debt-to-equity ratio
Interest Coverage (Times Interest Earned) ratio
So how is the company financing its assets? What degree of risk is associated with the financial structure of the company? (A look at the industry averages would be a good way to do this, perhaps.)
- Evaluate the company’s bond performance. (See the http://finra-markets.morningstar.com/BondCenter/Default.jsp and/or https://markets.businessinsider.com/bonds.
Present the quotations of two bonds listed.
- What were the last prices of the bonds (“Last Sale” column)? Assuming a par value of $1,000, how much will investors pay for the bond if purchased at the price listed in the table?
- Assuming, again, that the par value of the bond is $1,000, calculate the annual interest coupon payment.
- What is the YTM listed in the bond tables? (Remember, no calculations are required here.) You’ll find the yield on the summary page of the company’s bonds next to the “Last Sale” column as well as by clicking on the chart of an individual bond “last trade yield.”
- So if you were going to purchase a bond of the company, which would you choose?
- Are these bonds callable? Will that influence your decision to purchase the bond.
- So would you purchase the bond identified in (d)? What data/ratios, or what have you supports this decision?
- Collect and evaluate the data about the company’s stock performance in the past one to three years, as well as that of one primary competitor.
- Find the market ratios given below for the past one to three years and one primary competitor. You’ll find these ratios are www.morningstar.com.
Price/earnings ratio
Market/book (Price/book) ratio
Earnings per share
Dividends per share
Others you find yourself (optional, of course)
- Present in whatever way you see fit the evolution of the company’s stock price and that of its primary competitor. For example, you may wish to use the stock price chart on the websites themselves. That would be the simplest method, no doubt.
- Given the analysis above and whatever additional analytical tools you might add, is it reasonable to purchase the stock? Why or why not?
- Taking into account the company’s current market position, credit rating, dividend policy, and so on, what would be your recommendation as to how best the firm might use financial leverage to optimize shareholder wealth going forward?
Your first paragraph should be your answer to (iv) above. Then explain how you’ll show this conclusion in your analyses of (i), (ii), and (iii). Choose only those items that support your thesis. Again, while all of the items above are fair game for an analysis, it doesn’t mean that your brief will contain all of them. Focus on those items that make your case in (iv).
For the time constrained, which all of you are, a good strategy is to find a recent analysis of your company and use that as a guide to sort out what matters and what doesn’t. Again, the key is to focus. Not to present graph after graph after graph.
Best wishes!
Additional resources?
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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