Corporate Finance Competency Assignment 1

This assessment is not difficult, but will take time. Use Yahoo Finance and choose a US based firm. 

Part 1 – Key Indicators: You must provide answers for all 28 key indicators for your company (bullets may include more than one indicator). Use current figures unless otherwise required. You do not need to purchase a trial subscription for Yahoo Finance. All answers can be found on the site at no charge. Most of the key indicator figures are found under the summary tab (your firm’s main page), but you may need to use other tabs (historical, financials, analysis, etc). Please see my location notes below. Your answers must be clearly stated. If you add a screenshot, make sure you highlight the indicator and include it in your notes. You only need to include the answers for this portion of the assignment. No discussion is required for the key indicators section of this assignment.

Location Notes: Go to your firm’s main Yahoo Finance page (this will be the Summary tab). The location of these indicators is as follows:

*The company and its ticker symbol: Summary Tab

*Cash flow from operations: Click the Financials tab and the blue Cash Flow link. You are looking for the TTM figure for Cash Flow from Operations. You need ONE figure. Make sure to add 3 zeros to this figure or include the statement that it is posted “in thousands”.

*Price-to-earnings ratio: Summary Tab

*Stock dividends and the yield: Summary Tab

*Earnings per share ratio: Summary Tab

*Revenue estimates for the next 12 months: Click the Analysis tab. Look towards the middle of the page for the Revenue Estimate section. You are looking for the Low, Ave and High Revenue Estimates for the NEXT year (far right column). You need THREE figures.

*Revenue from the previous 3 years: Click on the Financials tab and the blue Income Statement link. This will bring up all of your revenues. You need THREE figures. Make sure you add 3 zeros to each figure or include a statement that all figures are posted “in thousands”.

*Statement of cash flows and identify net cash from operating, investing, and financing activities over the past 3 years: Click on the Financials tab and the blue Cash Flows link. This will bring up all of your cash flows. You need NINE figures. Make sure to add 3 zeros to each figure or include a statement that all figures are posted “in thousands”.

*Average trade volume: Summary Tab

*The current stock price, the 52-week high (not the range, just the high), and 1-year estimated stock price: Summary Tab 

*Analysts’ recommendations for the stock (buy, sell, or hold): Summary Tab – Look towards the bottom right of the page UNDER the colorful bar chart for the Recommendation Rating.

*Market cap for the company: Summary Tab

Part 2 – Next, you have four specific discussion slides that are required. Discussions should be substantial (min 4-5 sentences), include validation (facts and figures), and answer the question completely. Use complete sentences.

1-Stock vs PE ratio: What is the relationship between the two? How do you calculate PE? What does a high PE tell us about the value of the stock (over or undervalued)? What does a low PE tell us about the value of the stock (over or under valued)? Is your firm over, under or fairly valued and why? Yahoo actually gives you this information UNDER the average trade volume figure under the summary tab.

2-Market Cap: Why is market cap important to an investor? How is it calculated? How is it used as a tool to measure risk as it relates to the size of the firm? What are the size criteria used to define firms as it relates to market cap? Is a larger firm preferred, why or why not?

3-Trends in stock price, dividends and stockholders equity? State a time frame (ie last 3 years). All indicators must use the same time frame, so choose year-end dates for your firm. State the beginning figures, ending figures, % change and the reason for trend over that time period for EACH indicator (stock price, dividends and stockholders equity). Use the historical tab for the stock price and dividends (try to use as close to year-end dates as possible here as dividend dates may differ). For stockholder’s equity, click the Financials tab, the blue Balance Sheet link and the Total Equity Gross Minority arrow. This will open up your stockholder’s equity figures. Make sure to add 3 zeros to the equity figures or include a statement that they are posted “in thousands” next to the word “Equity”. To calculate % change = (End Figure-Beg Figure)/Beg Figure. Include the following chart on the slide to organize your data and then include the actual discussion within the notes.

	Stock Price	Dividends	Equity
Beginning Figure
Ending Figure
% Change

4-Your overall recommendation based upon your research. You must tell me whether or not you recommend the stock and why or why not. Your validation must include facts and figures. So, incorporate data from your previous slides for this requirement. Numerical validation is required for any credit as this is after all, a finance course.

Finally, please make sure to include references so we avoid any potential plagiarism issues. Let me know if you have any questions.