Business Investment Analysis
Situation: You have $10,000 that was gifted to you by a wealthy relative. Their restriction on the gift was that you use it to learn about investing in the stock market. Your assignment will be to research a company of your choice and make an investment recommendation bases on your respective financial analysis.
In the project report Iâ€™d like the following items to be covered:
1) Show me the analysis of rationale behind choosing the company you did. Explore industry choice why it was selected vs. another industry and company choice vs other companies in that respective industry.
2) For your chosen company show horizontal, vertical and common size analyses.
3) Describe other financial ratios that were used in your analysis. Compare them to other
companies in your chosen industry and to the industry average. Note at least five ratios should
have been analyzed. Earnings per share must be one of the ratios analyzed.
4) Explain items from the annual report and how they influenced your decision to invest in the
company. Also, include risks that you understand about the company and how you will initiate a
way to monitor it/them in the future to manage your investment. 5) Explain any other factors in your analysis that led to your decision.
A) You need to invest in an individual company. You canâ€™t invest in a mutual fund, ETF, etc.