FIN 534: Financial Research Report for Investment Opportunity

This report is a comprehensive financial research report assignment for FIN 534, focusing on investment analysis. The report requires students to research a publicly traded U.S. company and create a rationale for its selection as a potential investment, considering economic, financial, and other relevant factors. It involves defining a client profile and suggesting the suitability of the stock as an investment for that client. The assignment mandates the analysis of five financial ratios over three years to assess the company's financial health and determine the risk level from an investor's perspective. Students must also propose strategies to mitigate risks and provide investment recommendations, supported by academic resources. The report should be 10-15 pages long, following APA formatting, and is graded on the quality of the analysis, organization, and writing mechanics, with specific rubrics for each criterion.

FIN 534 – Assignments and Rubrics
Assignment 1: Financial Research Report
Due Week 9 and worth 300 points
Imagine that you are a financial manager researching investments for your client. Use the Strayer
Learning Resource Center to research the stock of any U.S. publicly traded company that you may
consider as an investment opportunity for your client. Your investment should align with your client’s
investment goals. (Note: Please ensure that you are able to find enough information about this company
in order to complete this assignment. You will create an appendix, in which you will insert related
information.)
The assignment covers the following topics:
 Rationale for choosing the company in which to invest
 Ratio analysis
 Stock price analysis
 Recommendations
Refer to the following resources to assist with completing your assignment:
Stock Selection
 Forbes – “Six Rules to Follow When Picking Stocks”, located at
http://www.forbes.com/sites/benzingainsights/2012/06/15/six-rules-to-follow-when-picking-
stocks/
 CNN Money – “Stocks: Investing in stocks”, located at http://money.cnn.com/pf/money-
essentials-stocks/
 The Motley Fool – “13 Steps to Investing Foolishly”, located at http://www.fool.com/how-to-
invest/thirteen-steps/index.aspx
 Seeking Alpha – “The Graham And Dodd Method For Valuing Stocks”, located at
http://seekingalpha.com/article/44626-the-graham-and-dodd-method-for-valuing-stocks
 Investopedia – “Guide to Stock-Picking Strategies”, located at
http://www.investopedia.com/university/stockpicking/
 Seeking Alpha – “Get Your Smart Beta Here! Dividend Growth Stocks As ‘Strategic Beta’
Investments”, located at http://seekingalpha.com/article/3457406-get-your-smart-beta-here-
dividend-growth-stocks-as-strategic-beta-investments
Market and Company Information
 U.S. Securities and Exchange Commission – “Market Structure”, located at
http://www.sec.gov/marketstructure/#.VfsQohFVhBd
 Yahoo! Finance, located at http://finance.yahoo.com
 Mergent Online, located at
http://libdatab.strayer.edu/login?url=http://www.mergentonline.com/basicsearch.php (Note:
This resource is available through the Strayer Learning Resource Center.)
 Seeking Alpha, located at http://seekingalpha.com. Also available through the Android or
iTunes App store.
 Morningstar, located at http://www.morningstar.com/stocks.html. (Note: You can create a no-
cost Basic Access account.)
 Research Hub, located in the left menu of your course in Blackboard.
Write a ten to fifteen (10-15) page paper in which you:
1. Provide a rationale for the stock that you selected, indicating the significant economic, financial,
and other factors that led you to consider this stock.

FIN 534 – Assignments and Rubrics
2. Suggest the primary reasons why the selected stock is a suitable investment for your client.
Include a description of your client’s profile.
3. Select any five (5) financial ratios that you have learned about in the text. Analyze the past three
(3) years of the selected financial ratios for the company; you may obtain this information from the
company’s financial statements. Determine the company’s financial health. (Note: Suggested
ratios include, but are not limited to, current ratio, quick ratio, earnings per share, and price
earnings ratio.)
4. Based on your financial review, determine the risk level of the stock from your investor’s point of
view. Indicate key strategies that you may use in order to minimize these perceived risks.
5. Provide your recommendations of this stock as an investment opportunity. Support your rationale
with resources, such as peer-reviewed articles, material from the Strayer Learning Resource
Center, and reviews by market analysts.
6. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other
similar Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
 Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all
sides; citations and references must follow APA or school-specific format. Check with your
professor for any additional instructions.
 Include a cover page containing the title of the assignment, the student’s name, the professor’s
name, the course title, and the date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this assignment are:
 Critique financial management strategies that support business operations in various market
environments.
 Analyze financial statements for key ratios, cash flow positions, and taxation effects.
 Review fixed income strategies using time value of money concept, bond valuation methods, and
interest rate calculations.
 Estimate the risk and return on financial investments.
 Apply financial management options to corporate finance.
 Determine the cost of capital and how to maximize returns.
 Formulate cash flow analysis for capital projects, including project risks and returns.
 Evaluate how corporate valuation and forecasting affect financial management.
 Analyze how capital structure decision-making practices impact financial management.
 Use technology and information resources to research issues in financial management.
 Write clearly and concisely about financial management using proper writing mechanics.
Grading for this assignment will be based on answer quality, logic / organization of the paper, and
language and writing skills, using the following rubric.
Points: 300 Assignment 1: Financial Research Report
Criteria Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Provide a rationale for
the stock that you
selected, indicating the
significant economic,
financial, and other
factors that led you to
Did not submit or
incompletely
provided a rationale
for the stock that
you selected; did
not submit or
Partially provided a
rationale for the
stock that you
selected; partially
indicated the
significant
Satisfactorily
provided a rationale
for the stock that
you selected;
satisfactorily
indicated the
Thoroughly
provided a rationale
for the stock that
you selected;
thoroughly indicated
the significant

FIN 534 – Assignments and Rubrics
consider this stock.
Weight: 15%
incompletely
indicated the
significant
economic, financial,
and other factors
that led you to
consider this stock.
economic, financial,
and other factors
that led you to
consider this stock.
significant
economic, financial,
and other factors
that led you to
consider this stock.
economic, financial,
and other factors
that led you to
consider this stock.
2. Suggest the primary
reasons why the selected
stock is a suitable
investment for your
client. Include a
description of your
client’s profile.
Weight: 15%
Did not submit or
incompletely
suggested the
primary reasons
why the selected
stock is a suitable
investment for your
client. Did not
submit or
incompletely
included a
description of your
client’s profile.
Partially suggested
the primary reasons
why the selected
stock is a suitable
investment for your
client. Partially
included a
description of your
client’s profile.
Satisfactorily
suggested the
primary reasons
why the selected
stock is a suitable
investment for your
client. Satisfactorily
included a
description of your
client’s profile.
Thoroughly
suggested the
primary reasons
why the selected
stock is a suitable
investment for your
client. Thoroughly
included a
description of your
client’s profile.
3. Select any five (5)
financial ratios that you
have learned about in the
text. Analyze the past
three (3) years of the
selected financial ratios
for the company.
Determine the company’s
financial health. (Note:
Suggested ratios include,
but are not limited to,
current ratio, quick ratio,
earnings per share, and
price earnings ratio.)
Weight: 20%
Did not submit or
incompletely
selected any five (5)
financial ratios that
you have learned
about in the text.
Did not submit or
incompletely
analyzed the past
three (3) years of
selected financial
ratios for the
company. Did not
submit or
incompletely
determined the
company’s financial
health.
Partially selected
any five (5) financial
ratios that you have
learned about in the
text. Partially
analyzed the past
three (3) years of
selected financial
ratios for the
company. Partially
determined the
company’s financial
health.
Satisfactorily
selected any five (5)
financial ratios that
you have learned
about in the text.
Satisfactorily
analyzed the past
three (3) years of
selected financial
ratios for the
company.
Satisfactorily
determined the
company’s financial
health.
Thoroughly
selected any five (5)
financial ratios that
you have learned
about in the text.
Thoroughly
analyzed the past
three (3) years of
selected financial
ratios for the
company.
Thoroughly
determined the
company’s financial
health.
4. Based on your
financial review,
determine the risk level
of the stock from your
investor’s point of view.
Indicate key strategies
that you may use in order
to minimize these
perceived risks.
Weight: 15%
Did not submit or
incompletely
determined the risk
level of the stock
from your investor’s
point of view based
on your financial
review. Did not
submit or
incompletely
indicated key
strategies that you
may use in order to
minimize these
perceived risks.
Partially determined
the risk level of the
stock from your
investor’s point of
view based on your
financial review.
Partially indicated
key strategies that
you may use in
order to minimize
these perceived
risks.
Satisfactorily
determined the risk
level of the stock
from your investor’s
point of view based
on your financial
review.
Satisfactorily
indicated key
strategies that you
may use in order to
minimize these
perceived risks.
Thoroughly
determined the risk
level of the stock
from your investor’s
point of view based
on your financial
review. Thoroughly
indicated key
strategies that you
may use in order to
minimize these
perceived risks.
5. Provide your
recommendations of this
stock as an investment
opportunity. Support your
rationale with resources,
such as peer-reviewed
articles, material from the
Strayer Learning
Did not submit or
incompletely
provided your
recommendations
of this stock as an
investment
opportunity. Did not
submit or
Partially provided
your
recommendations
of this stock as an
investment
opportunity.
Partially supported
your rationale with
Satisfactorily
provided your
recommendations
of this stock as an
investment
opportunity.
Satisfactorily
supported your
Thoroughly
provided your
recommendations
of this stock as an
investment
opportunity.
Thoroughly
supported your

FIN 534 – Assignments and Rubrics
Resource Center, and
reviews by market
analysts.
Weight: 20%
incompletely
supported your
rationale with
resources, such as
peer-reviewed
articles, material
from the Strayer
Learning Resource
Center, and reviews
by market analysts.
resources, such as
peer-reviewed
articles, material
from the Strayer
Learning Resource
Center, and reviews
by market analysts.
rationale with
resources, such as
peer-reviewed
articles, material
from the Strayer
Learning Resource
Center, and reviews
by market analysts.
rationale with
resources, such as
peer-reviewed
articles, material
from the Strayer
Learning Resource
Center, and reviews
by market analysts.
6. Five (5) references
Weight: 5%
No references
provided
Does not meet the
required number of
references; some or
all references poor
quality choices.
Meets number of
required references;
all references high
quality choices.
Exceeds number of
required references;
all references high
quality choices.
7. Clarity, writing
mechanics, and
formatting requirements
Weight: 10%
More than 6 errors
present
5-6 errors present 3-4 errors present 0-2 errors present