Business Analysis and Valuation Report

   

Added on  2020-04-07

13 Pages2256 Words29 Views
Running head:BUSINESS ANALYSIS AND VALUATION1Business analysis and valuationName of StudentInstitutional AffiliationName of ProfessorDate
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BUSINESS ANALYSIS AND VALUATION2Research on the shares sold by 309 firms in the United States in 1996.Literature reviewMost companies trade shares on the stock market. Many old firms issue new shares in addition to those shares which trade on the stock market. These new shares are referred to as the seasoned equity offerings (SEO). We have some firms which have never traded in the shares on the stock market before and may be interested in trading on the shares. The shares they issue to go to the public for sales are referred to as the initial public offerings (IPO). All the companies invest in shares to raise some money which may be used in the expansion of the company or for future investment.The investors and the other financial economists are normally interested in understandinghow the stock market values the shares from any firm. The value of any firm’s shares in the stock market is a major determinant of the number of investors who invest in the firm. High values of a firm’s shares in the stock market attract many investors to the firm since the investorswill expect high future profits from the firm.Objectives of the researchTo determine the totals of the values of the outstanding shares, the debts, the sales, the income, and assets of all the 309 firms who sold their shares in 1996 in the United States.To determine the average of the values of the outstanding shares, the debts, the sales, the income, and the assets of the 309 firms who sold their shares in the United States in 1996.
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BUSINESS ANALYSIS AND VALUATION3To compare the totals of the values of all the outstanding shares, the debts, the sales, the income, and the assets of all the 309 firms using a bar graph.To compare the averages of the values of the outstanding shares, the debts, the sales, the income, and the assets of all the 309 firms using a bar graph.Research questionsIs the total value of the sales of the firms obtained in 1996 higher than the total value of the long-term debts held by the firms?Is the average value of the sales of the firms obtained 1996 higher than the average value of the long-term debts held by the firms?Is the total value of the assets higher than the total value of all the outstanding shares? Is the average value of the assets higher than the average value of all the outstanding shares?HypothesisThe total value of the long-term debts held by the firms is higher than the total value of the sales obtained by the firms in 1996.The average value of the long-term debts held by the firms is higher than the average of sales obtained by the firms in 1996.
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BUSINESS ANALYSIS AND VALUATION4The total value of all the outstanding shares is higher than the total value of the assets of the firms.The average value of all the outstanding shares is higher than the average value of the assets of the firms.The research designIn this research, we are going to analyze the data set given in the file EQUITY.TXT. Thisdata contains all the data of the values of all the outstanding shares which were sold by all the 309 firms, the debts, the sales, the income, and the assets of all the 309 firms. We will use the Excel tools to calculate the totals and the average of the values of the outstanding shares, the total of the debts, the totals of the sales, the total of the income, and the total of the assets of all the firms. We will also draw bar graphs to compare the totals and the average of the values of the outstanding shares, the debts, the sales, the income, and the assets. Microsoft Excel will also help us to calculate other statistical measures on the provided data. It will also help us to do a regression analysis on the data. All these analyses of the data will help us to get the solutions of the research questions and enable us to test and analyze our hypothesis.The findings and data analysisFrom the analysis done on the Excel workbook, we obtain the following tables which summarize our findings.
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