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Final Project Part II Part II

Overview For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial computation and analysis skills. This part of the assessment addresses the following course outcomes:

Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success.

Analyze corporate financial data for multiple companies in evaluating past and future financial performances.

Part II Prompt

For this section of your employment exam, you will select two companies.

The first company needs to come from your TDAU thinkorswim portfolio which is (Verizon). The second needs to be a competitor of the first company from the same industry. (Sprint).

You will be responsible for collecting, synthesizing, and making decisions regarding both companies. After evaluating these companies’ financial data, you will then decide which company’s stock is the better investment.

This section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen companies. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citation—for example, “rate of return is 3.570 USD (E64, WB2),” where E64 is the cell that the calculation took place in and WB2 is designating “workbook 2.” This ensures that your instructor can quickly and accurately check data entry, formula use, and financial calculations.

Your submission must address the following critical elements:

Preparing the Workbooks

A. Download the annual income statements, balance sheets, and cash flow statements for the last three completed fiscal years for your chosen companies. This information must be included in your final submission.

B.. Prepare a worksheet for each of the companies to display their financial data for the last three fiscal years. Ensure your data is accurate and organized. Include these worksheets as a workbook in your final submission.

C.. Find historical stock prices for both companies and add this information to the respective spreadsheets. Consider the appropriate date range you should use

II. Three-Year Returns

A. What is the three-year return on the stock price of the first company (Company A, Verizon)? How is the stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on the given company’s stock price.

B. What is the three-year return on the stock price of the second company (Company B, Sprint)? How is this stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on your chosen company’s stock price.

C. How do these two stocks compare in terms of three-year returns? What does this indicate about these two companies?

III. Financial Calculations:

A. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the price-to-earnings ratio for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

B. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the debt-to-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

C. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return-on-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

D. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the earnings per share for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

E. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the profit margins for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

F. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the free cash flows for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

IV. Industry Averages

A. Obtain current industry averages of three of the financial calculations above for both companies and add this information to your spreadsheet for comparison. Ensure the accuracy and organization of your data.

B. In this context, how is each company’s financial health? How do these two companies compare to one another? Consider the appropriate date range you should use.

V. Performance Over Time

A. Analyze the performance of the Company A over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier. B. Analyze the performance of your Company B over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier. C. Analyze how the data differ between these two companies. Why do you think this is? Consider addressing the free cash flows and ratios you calculated earlier.

VI. Investment

A. Are the companies considered growth or value companies? Why?

B. Which company’s stock is the better investment? Consider supporting your answer with data.

The purpose of this exercise consists in computing a VaR measure for a $1 million trading portfolio of an investment bank. The portfolio is composed of $300,000 of Emera (EMA) stock, $200,000 of Clearwater Seafoods (CLR) stock and $500,000 of Royal Bank (RY) stock. The file 2017_prices.xlsx (that can be downloaded from Brightspace) contains daily historical closing prices over the last year (2017) for the three stocks. (The prices have already been adjusted for splits or dividends.)

1) Calculate the daily (logarithmic/geometric) returns for each of the stocks over the sample period. Using “Tools/Data Analysis/Descriptive statistics” calculate the mean, standard deviation, kurtosis, and skewness for each of the historical distributions of returns. Based on these statistics, do the historical distributions of returns of the three stocks look like the normal distribution? (explain)

2) Using “Tools/Data Analysis/Histogram” visually inspect the historical distribution of returns of each of the stocks. Do they resemble to the normal distribution?

3) What are the VaRs (1.5%,1 day) and VaRs(1.5%, 20 days) at the end of 2017 of the investments in each of the stocks if they were held separately and assuming a normal distribution of daily returns? Answer using the parametric method for computing the VaR with the standard deviations obtained in 1), and the function “normsinv” for deriving the value of the standard normal deviate (alpha) corresponding to the chosen confidence level.

4) By assuming a normal distribution for the daily returns, what is the portfolio VaR(1.5%,1 day) at the end of 2017? (Use “Tools/Data analysis/Correlation” to compute the correlations of the daily returns of the three stocks.) What can you say if you compare the portfolio VaR with the sum of the VaRs obtained in 3)?

5) Compute the historical VaR (1.5%,1-day) at the end of 2017 of the position on the RY stock. Compare and interpret the differences between the VaR(1.5%,1-day) estimates from the two different VaR models for the position in the RY stock.

6) Compute the Monte Carlo VaR (1.5%,1-day) at the end of 2017 of the position in the RY stock assuming a normal distribution of returns and 5,000 simulations. Compare

and interpret the differences between the VaR(1.5%,1-day) estimates from the three different VaR models for the position in the RY stock. (You can use either Excel or @Risk available in the Bloomberg Lab or trial student version).

7) For the RY stock, compute the standard deviation of its returns for each day using the returns from the previous 20 trading days. Compute the VaR(1.5%,1 day) for each day using the standard deviation of returns for 20 previous days (thus, you obtain a dynamic VaR). Plot the bank’s daily returns together with each day VaR and compute the number of times the daily return exceeded the VaR (remember that the VaR corresponds to a loss). Is the result coherent with the confidence level you use for computing the VaR?

8) What is the portfolio VaR(1.5%,1 day) at the end of 2017 using the historical simulation approach rather than by assuming normal distributions as in 4)? (Hint: Rank the daily portfolio returns using for example the function “sort” or use a function for finding a percentile.)

write a page of the Michael Foucault’s “Panopticism” and relate it to an outside text of of your own choosing.

ROE = [r + (r – i) D/E] (1-t)

r = 20%

i = 15%

t = 40%

1) Use the Variance ROE formula (below) to compute the corresponding variance/s.d. for each D/E

Variance (ROE) = Var(r)(1+D/E)2 (1-t)2 <-- the 2s are squared.

2) Using Excel normal distribution function set up tables of probability vs. ROE for each d/e level.

3) Graph the different probability distributions for each d/e level in one chart.

did sailors go 'on the account' or become pirates because Economic opportunities, Discontent with working conditions, Desire for adventure and Political motivations??

How do you have uppercase letters  in your name and how can I  do the same?

The revenue from selling q items is R(q)=200q?q^2, and the total cost is C(q)=75+13q. Write a function that gives the total profit earned, and find the quantity which maximizes the profit. a)Profit pi(q)= b)Quantity maximizing profit q=

(b)Microlin Ltd intends sot introduce a new product, T, into the market. This will require an 

investment in machinery costing Sh. 2,400,000. The machinery is estimated to have a useful 

life of four years with a terminal value of Sh600,000.

Additional information

1. Capital allowances will be provided on the machinery at a rate of 12.5% per annum 

on a balance basis. At the end of the useful life of the machinery, a balancing charge or 

allowance will arise equal to the difference between the scrap proceeds and the tax 

written down value.

2. Annual profits from the sale of product T will amount to Sh960,000 before deducting 

depreciation on machinery.

3. Corporation tax at a rate of 30% is payable one year after the end of the accounting 

year in which the tax was charged.

4. An investment in working capital amounting to Sh.240,000 will be required on 

commencement of the project. 

This amount will however be recovered on completion of the project.

1. The start of the project coincides with the company's financial year.

2. the cost of capital is 15% per annum

Required:

Using the net present value (NPV) approach, advice the management on the suitability of 

the project. (10 marks)

Make a drawing assignment:
Cross-contoured, Proportional and Foreshortening Drawing

Apply these drawing techniques:
Use a variety of marks (within value shapes) with attention to pressure and proximity.
Use value shapes to depict differences in value across your subject rather than outlines.
Use gestural drawing techniques/marks to 'map out' the objects of your drawing and not outlines.

Apply new knowledge:
Use accurate proportions.
Use cross-contour lines to emphasize the shape of your objects.
Use foreshortening from your perspective.   
Use a definitive light source shining from the front, back, or side of your objects.
Use graphite tools, charcoal tools, kneaded erasers, etc.
Use an 18" X 24" sheet of drawing paper, which has been prepared with a light grey background before any drawing commences if you so prefer.
Use at least three objects of your choice. Here's the link to photo of the three objects:

Mercantilism, sailors and pirates:

1. What made trading between nations so crucial to the Early Mercantile powers?

what can  be the disease to that person if he is suffering from headache , red eyes, seems like it is burning from inside, feeling dizziness and weakness