This is a continuation of the minor project. Use the company you chose for the Minor Project and evaluate the firm using the tools from class. You need to determine the following:

1. The value of the firmThe WACC
   • The value of the debt
   • The value of the equity
2. The market value of the firm
3. The CAPM
4. Compare the firm to its two main competitors
5. The firm’s story and prospects and non-quantitative factors
6. Would you invest in this firm? (Be sure to consider both projects to answer this)
7. The paper should contain 1500 words.

My minor project

Week 5 Minor Project

Jento Sampson

Financial Management Regent University

BUSN 320 Financial Management

Mr. Cullipher

21 July 2020

Introduction

Trend analysis is an analysis of the trend of the company by comparing its financial statements to analyze the trend of market or analysis of the future on the basis of results of past performance and it’s an attempt to make the best decisions on the basis of results of the analysis done.

Trend analysis involves collecting the information from multiple time periods and plotting the collected information on the horizontal line with the objective to find actionable patterns from the given information. In Finance, Trend Analysis is used for Technical analysis and Accounting analysis of stocks.

Stock chart is used to identify the current trend. A trend reflects the aver- age rate of change in a stock's price over time. Trends exist in all time frames and all markets. Day traders can establish the trend of their stocks to within minutes. Long term investors watch trends that persist for many years. A trend represents a consistent change in prices (i.e., a change in investor expectations). Prices can be rising, falling, or moving sideways and give rise to three types of trend uptrend, downtrend and flat or neutral trend. in an uptrend, a stock rallies often with intermediate periods of consolidation or movement against the trend. In doing so, it draws a series of higher highs and higher lows on the stock chart. In an uptrend, there will Be a positive rate of price change over time.

In a downtrend, a stock declines often with intermediate periods of consolidation or movements against the trend.in doing so, it draws a series of lower highs and lower lows on the stock chart.in downtrend, there will be a negative rate of price change over time.

On the other hand, in a flat or neutral or sideways trend, swings back and forth for long periods between easily seen upper and lower limits. There is no apparent direction to the price movement on the stock chart and there will be little or no rate price change.

A stock in an uptrend will continue to rise until some change in value or conditions occurs. Declining stocks will continue to fall until some changes in value or conditions occurs. Chart renders try to locate TOPS and BOTTOMS, which are those points where a rally or a decline end. Taking a position near a top or a bottom can be very profitable.

Reactions

Prices move in a zig-zag fashion with any rise or fall interrupted by a count- termite is known as a reaction. In an uptrend, the reaction is downwards while in a downtrend, the reaction is upwards. Zig-zag movement gives rise to a series of tops and bottoms or highs and lows. The relative position of successive highs and lows determine the trend at any given point of time.

Trend Reversal

The change in the direction of trend is known as trend reversal. A trend no matter how powerful is vulnerable to change. This change in the direction of the trend from up to down or from down to up is called trend reversal. Often, after a large rise or fall, prices move sideways, and this is also known as consolidation. Usually, after such consolidation, the previous trend resumes. Uptrend is characterized by higher highs and higher lows. this were to reverse into a downtrend, one would notice the formation of lower highs and lower lows.

Trend Lines

Trends can be measured using trend lines. Trend lines are straight lines drawn by connecting either the highs or the lows. In an uptrend, two or more rising lows are connected to denote an uptrend line. In a downtrend, two or more falling highs are connected to denote a downtrend line, A horizontal or flat trend line is drawn by connecting either the highs or the lows. The importance of a trend line lies in its ability to indicate the possibility of a trend reversal. Reversal of uptrend is signaled by the price falling below the uptrend line and the reversal of downtrend indicated by the price rising above the downtrend line. Penetration of a trend line does not necessarily imply a trend reversal but may indicate just a temporary pause in the trend. No fixed rule to judge whether such penetration signals a pause or a reversal. However, important clues are often available. Steeper a trend line, greater is the possibility of its penetration signaling just a pause and not a reversal. As to duration, the longer a trend has been in force, the more powerful is the violation of the trend line. Similarly, the more the number of times a trend line is touched by the price, the stronger the trend line and more powerful is its penetration. Finally, trend line penetration accompanied by rising volumes or breakout from a reversal pattern very often signals a trend reversal.

Sales and cost information of the organization’s profit and loss statement can be arranged on a horizontal line for multiple time periods and examined the trends and data inconsistencies. For instance, take the example of a sudden spike in the expenses in a particular quarter followed by a sharp decline in the next period, is an indicator of expenses was booked twice in the first quarter. Thus, the trend analysis in accounting is important for examining the financial statements for inaccuracies, to see whether the adjustment of the certain heads should be done before the conclusion is drawn from the financial statements.

Trend Analysis in accounting compares the overall growth of key financial statement line item over the years from the base case.

For example, in the case of ACP Ltd, we assume that 2007 is the base case and analyze the performance in Sales and Net profit over the years.

Is there a email I can send it to because it won't let me submit it here Thanks.