For this assignment, assume the role of a newly hired equity analyst in an investment bank. Your
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Question:
For this assignment, assume the role of a newly hired equity analyst in an investment bank. Your boss has asked you to use your financial background to recommend three stocks to company investors. You are to:
- Select three publicly traded companies to research.
- Calculate the identified financial ratios for each company 1. Apple 2.Amazon 3.Facebook
- Summarize the findings on selected companies' performance report.
PLEASE summarize the findings of your financial analysis, in which you:
- Perform the required financial calculations for each of your selected companies correctly:
- Price-earnings ratio (for earnings per share (EPS), use the diluted EPS total).
- Operating margin.
- Net profit margin.
- Return on equity.
- Current ratio.
- Quick ratio.
- Revenue growth for the past five years.
- Long-term debt to equity.
- Analyze each firm's performance against the industry average, considering all critical aspects necessary to assess company performance.
- Be sure to comment on each firm's strengths and weaknesses.
- Advise investors whether to buy and hold or sell these stocks based on your companies' current stock prices, products and services, and your well-supported stock valuation experience.
- Recommend to investors the prices at which they should buy or sell these stocks and provide rationale for all recommendations.
- Remember: A buy recommendation means you are expecting prices to rise; a sell recommendation means you are expecting prices to fall.
- Determine your first profit target and the recommended risk tolerance level for each stock and provide rationale for your recommendations.
- Remember: Your recommended risk tolerance level is the price at which investors should sell the stocks if the market goes against them.
- Summarize the current market sentiment for your selected stocks along with a five-year outlook, based on accurate data points.
- PLEASE PROVIDE RESOURCES
- Choose sources that are credible, relevant, and appropriate.
- Cite each source listed on your source page at least one time within your assignment.
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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