FIN534 Strayer Financial Management Research Report Assignment: Financial Research Report Part 1 Attached Part 2 Due Part 2 six (6) pages Include you

FIN534 Strayer Financial Management Research Report Assignment: Financial Research Report

Part 1 Attached

Part 2 Due

Part 2 six (6) pages

Include your rationale, primary reasons for stock selection, and client’s profile from Part 1, making any revisions based upon Part 1 feedback if applicable.
Select any five (5) financial ratios that you have learned about in the text. Analyze the past three (3) years of the selected financial ratios for the company; you may obtain this information from the company’s financial statements. Determine the company’s financial health. (Note: Suggested ratios include, but are not limited to, current ratio, quick ratio, earnings per share, and price earnings ratio.)
Based on your financial review, determine the risk level of the stock from your investor’s point of view. Indicate key strategies that you may use in order to minimize these perceived risks.
Provide your recommendations of this stock as an investment opportunity. Support your rationale with resources, such as peer-reviewed articles, material from the library, and reviews by market analysts.
Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other similar websites do not qualify as academic resources.

This assignment requires you to use at least 5 quality academic resources and covers the following topics:

Rationale for choosing the company in which to invest
Ratio analysis
Stock price analysis
Recommendations

Refer to the following resources to assist with completing your assignment:

Annotated Bibliography

Annotated Bibliographies
Annotated Bibliography Samples

Stock Selection

Forbes – “Six Rules to Follow When Picking Stocks”
CNN Money – “Stocks: Investing in stocks”
The Motley Fool – “13 Steps to Investing Foolishly”
Seeking Alpha – “The Graham And Dodd Method For Valuing Stocks”
Investopedia – “Guide to Stock-Picking Strategies”
Seeking Alpha – “Get Your Smart Beta Here! Dividend Growth Stocks As ‘Strategic Beta’ Investments”

Market and Company Information

U.S. Securities and Exchange Commission – “Market Structure”
Yahoo! Finance
Mergent Online (Note: This resource is also available through the Strayer Learning Resource Center.)
Seeking Alpha (Note: Also available through the Android or iTunes App store.)
Morningstar (Note: You can create a no-cost Basic Access account.)
Research Hub, located in the left menu of your course in Blackboard.

Rubric:

Thoroughly included your rationale, primary reasons for stock selection, and expand client’s profile from Part 1.
Thoroughly selected any five (5) financial ratios that you have learned about in the text. Thoroughly analyzed the past three (3) years of selected financial ratios for the company. Thoroughly determined the company’s financial health.
Thoroughly determined the risk level of the stock from your investor’s point of view based on your financial review. Thoroughly indicated key strategies that you may use in order to minimize these perceived risks.
Thoroughly provided your recommendations of this stock as an investment opportunity. Thoroughly supported your rationale with resources, such as peer-reviewed articles, material from the Library, and reviews by market analysts. Running Head: WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT PT. 1
1
Feedback from Part 1:
Your paper is not bad. Your client profile can use some more details as it will be beneficial when
you get to other sections of your paper.
WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT, PART 1
2
Financial Research Report
Notably, before making any investment, it is essential for individuals to undertake some
quantifiable research about the company. Consequently, it provides information on the firm that
is performing well and is worth risking money. After determining the stock, individuals can
overlook the performance history and its most recent earnings to decide on its promising outlook.
Moreover, investors have to look at the success of the company in its sector, leadership, and
transparency. Therefore, it is crucial for clients willing to invest to seek advice from financial
managers before venturing into any company. This paper overlooks my client’s characteristics,
the selected company to invest providing the economic, financial and other factors that led to the
selection, and the primary reason why the chosen stock is a suitable investment for my client.
Following my case, the client (Beverly Prosser) intends to invest in a particular stock that
matches her characteristics and is worth risking depending on its performance. Beverly is an
employee in one of the up and coming firms in the country (Apple Inc.) She is relatively young
at the age of 35 years, having some savings as well as owning some property, but she is
somewhat risk averse. Moreover, the client’s investments goals include making money,
flexibility where she can buy or sell shares on any trading day, and capital appreciation.
However, she values stability and steady growth of her portfolio the most. Her specifics
characteristics as it relates to investments are:
a. Values stability.
b. Wants to invest in the company where she works (Apple).
c. Has savings that she wants to move to investments to yield more growth.
WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT, PART 1
3
Following the client’s characteristics, I believe that investing in Apple would be a great
deal. Apple is one of the largest valuated companies globally. So, balancing that fact, along
with the following Forbes’ six strategies of investing, we find Beverly this perfect stock in which
to invest:
1. Easy to understand business model: Apple is straight forward
2. Best in Breed – Well known and the Best in the Industry: Brand Recognized
3. Look at past results, regardless of the old adage regarding its relationship with future
performance: Apple has shown steady growth over many years
4. Invest in Mid to High Cap companies: Apple is a Multi-Billion Dollar Company
5. Focus on companies that pay out dividends: Apple’s Dividends Growth continues
6. Buy stocks that fit a stable framework and the clients unique situation: Employee
The firm’s economic growth has impacted significantly to an increase in the fiscal
positioning of the firm (Aljafari, 2016). The marketing position of the firm contributes
immensely to its bullish shares. Noteworthy, my client should grab the Apple Inc. opportunity
and invest in the firm due to the following reasons. First, following its economic pattern, the
company has impacted significantly to the growth of the corporation by unlocking new
opportunities through the website it developed where more than 2 million jobs have been created
(Duzansky, Duffner, Welter, & Hardan, 2017). Moreover, after the firm introduced the iPhone in
2007, after six months they captured the phone market by 28% of the shares in the United States
(Aljafari, 2016). The trend continued to rise adamantly over the following years.
Further, in the United States apple products are widely used; thus, the apple store created
by the company has earned over $16 billion since 2008 (Duzansky et al., 2017). Therefore, there
is a high possibility of the trend continuing to rise over the years, thus, impacting significantly to
WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT, PART 1
4
an economic rise. The firm’s economic growth continues to increase with the company
contributing to $55billion to the economic growth of the United States in 2018 (Phillips, 2018).
Further, it is estimated that the firms will add more than $350 billion to the American economy
in the next five years (Jones, 2018). As a result, the ideology shows that it is worth investing in
the stock since the returns of the firm continue to rise each year. Also, Apple Inc. financial
status is on the rise. In June 2018, the company posted the quarterly revenue of $53.3 billion
which portrayed an increase of approximately 17 percent to the previous year’s quarter (Phillips,
2018). Furthermore, in September, the firm posted quarterly revenue of $62.9 billion which
attribute to a 20 percent increase compared to the previous year’s fourth quarter (Apple, 2018).
As a result, it shows that the firm’s financial results have been increasing rapidly over the years.
Therefore, it is a positive indication that the firm is worth investing in since it creates an
opportunity for better, and even more importantly to Beverly, steady low risk returns.
Additionally, the ideology has been impacting significantly to the net worth of the firm.
For instance, in the fourth quarter in 2017, the revenue was at $7.9 billion, which rose to $10
billion in the fourth quarter in 2018, attributing to a 27 percent increase (Apple, 2018).
Currently, the company’s products have diversified; hence, contributing immensely to the rise in
revenue at $93 billion (Apple, 2018), therefore, the company’s profit increase depicts its
worthiness to invest in its shares. Impressively, the firm clinched the world record after a
valuation of over $1 trillion; thus, there is a high potentiality of the firm to maintain its
profitability (Phillips, 2018). Notably, Apple is ranked as one of the most profitable companies
in the world. The company relies mostly on the production of the iPhone to increase its revenue.
Therefore, with the rapid release of new models, the phones have created a literal cash machine
for the firm. As a result, it has increased the prices of the shares with the trend expected to rise
WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT, PART 1
5
over the years. Regarding the stock prices analysis, its price has been proliferating over the years
clinching up to $180.10 per share, with the firm having over 5.2 billion shares (Zuelke,
Goodwin, & Jones, 2017).
On the other hand, the liquidity ratios have been dropping when comparing the year 2017
and 2018 as shown in Exhibit 1 below, which portrays the firm’s affordability to pay its shortterm debts. Further, Exhibit 2 shows the current ratio of apple from 2006 to 2018. So, the
profitability ratios show a significant balance and increase between the two years as shown in
Exhibit 1. As a result, the above reasons impacted significantly towards my choice of apple for
the client as the best stock to invest in and expect high and stable returns. Following my stock
choice, I believe that the selected company is suitable for my client due to the following reasons.
First, she wants a stock whose capital is appreciating. Thus, Apple’s revenue has been increasing
over the years, and the firm made history by the first company to be valued at over $1 trillion
(Phillips, 2018). Consequently, it shows that there is a high possibility of the company’s capital
appreciation over the coming years. Moreover, my client being a property owner, portrays the
likelihood of buying more shares in the company. Secondly, the client intends to make steady
money through the shares, more so, she is risk averse. Therefore, with Apple shares only falling
slightly at times, but continuing to rise, there is a likelihood of my client benefiting from the
stock since she can purchase more shares. Notably, the firm is valued at the top; henceforth, the
prices are likely to show steady growth, making the company suitable for the client.
Lastly, the company relies mostly on the production of the iPhone which took the smart
phone market by storm. Henceforth, the stock is suitable for my client since the stock price will
rise continue to rise. Moreover, with flexibility, the client can buy or sell the shares, thus,
WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT, PART 1
6
making some profits. Conclusively, it is worth noting that before investing an individual ought
to do vivid research about the stock they intend to venture in for them to make huge profits.
Therefore, they seek advice from financial managers. Globally, there are profitable companies
such as Apple which have had a good history of good returns. From the above case, my client’s
characteristics and profile match the qualities of the company. Henceforth, investing in a firm
can earn her vast profits.
WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT, PART 1
7
References
Aljafari, A. (2016). Apple Inc. Industry AnalysisBusiness Policy and Strategy. International
Journal of Scientific & Engineering Research, 7(3), 406-439.
The article deliberates about Apple Inc. competitiveness in the industry. The
author discusses on how the firm is distinctive from other firms in the industry by
providing hardware’s and software’s. Further, the author provides a performance
analysis in comparison to other competitive firms such as Samsung, Google and
Microsoft. Additionally, the writer analysis the financial performance of Apple
Inc. to determine if they are in a sustainable path. This is an indispensable work
for anyone looking forward to analyze the performance of the company since
2015.
Apple. (2018). Apple Reports Fourth Quarter Results. Retrieved 2 17, 2019, from Apple:
https://www.apple.com/newsroom/2018/11/apple-reports-fourth-quarter-results/
Duzansky, J., Duffner, J., Welter, T., & Hardan, M. (2017). Apple, Inc. (NSDQ: AAPL). Krause
Fund Research, 1-29.
This article discusses the about notions that have impacted significantly to making
Apple Inc. become one of the most valuable company in the world. The
company’s stock performance, financial ratios, company performance highlights
regarding the profit margin are also discussed. Noteworthy, other ideas such as
the industry trends, the company analysis, and firm’s products have been
summarized, and a brief discussion is included on the implication regarding to
their influence on the firms profitability. The author indicates major products that
WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT, PART 1
8
have impacted significantly towards increasing the firm’s revenue. The article
also deliberates on the valuation of the firm using the ratio analysis, and the
shares prices. Moreover, the author has used other valuation methods such as cost
of equity, discounted cash flow. Further, the writer has addressed the revenue
growth of each firm’s product, the financial status of the firm showing the current
assets and liabilities. This a helpful source for getting an overview of the financial
report of Apple Inc.
Jones, C. (2018, 1 19). Apple’s $350 Billion U.S. Economic Contribution Was Already In The
Cards. Retrieved 2 17, 2019, from Forbes:
https://www.forbes.com/sites/chuckjones/2018/01/19/apples-350-billion-u-s-economiccontribution-was-already-in-the-cards/#34ce1207ac52
Macro trends. (2019). Apple Current Ratio 2006-2018 | AAPL. Retrieved 2 17, 2019, from
Macrotrends.net: https://www.macrotrends.net/stocks/charts/AAPL/apple/current-ratio
Phillips, M. (2018). Apple’s $1 Trillion Milestone Reflects Rise of Powerful Megacompanies.
Retrieved 2 17, 2019, from The New York Times:

Zuelke, M., Goodwin, C., & Jones, D. (2017). Apple, Inc. Krause Fund Market Research, 1-26.
This article deliberates on Apple Inc. as the leading technology firm after ending
their fiscal their year 2016 and their strong growth without the signs of slowing
down. The author provides an investigation about the growth declines due to the
overreliance of the company on the iPhone in a saturated smart phone market.
WEEK 07: ASSIGNMENT 1: FINANCIAL RESEARCH REPORT, PART 1
However, the author believes that the 10th anniversary of the iPhone will cause
some radical effects on the growth margins of the company. Further, to explain
the effect the author provides a summary of the financial status of the firm,
business segments and internets services that influenced to the change. Moreover,
the authors provides some valuation methods such as service revenue, cost of
sales, revenue break down of various products. This is a useful article since it
provides information on the growth margin of the Apple Inc.
9

Purchase answer to see full
attachment