Competency

Appraise organizational investments to maximize returns and minimize risk.

Student Success Criteria

View the grading rubric for this deliverable by selecting the "This item is graded with a rubric" link, which is located in the Details & Information pane.

Deliverable Preparation

During this course, students will conduct research on companies of their choosing, guided by the scenarios outlined in the deliverables. There are no pre-assigned firms for research purposes. Instead, students are encouraged to select companies that are relevant to the deliverable content. The information gathered about these firms should reflect real-time data and demonstrate real-life applications in alignment with the course material.

Scenario

As you settle into your new role, the projects become more challenging and intricate. Despite the increasing complexity, you are ready to take on any challenges that come your way and eagerly look forward to your next project.

You are asked to collaborate with your firm's Chief Financial Officer (CFO) for your next project. The objective is to assess the market conditions and evaluate whether a strategic merger with one of your competitors would enhance the overall value of your firm's portfolio. The primary goal is to ascertain whether such an investment would maximize returns and minimize the portfolio risk.

Before meeting with your firm's CFO, you need to identify a suitable market competitor. This competitor will undergo thorough scrutiny to determine if its inclusion would contribute positively to your firm's existing portfolio. This project represents an exciting opportunity to explore strategic possibilities and enhance the company's position in the market.

Instructions

Using Microsoft Word, construct a comprehensive portfolio analysis addressing the following key points:

• Success Factors of Current Investments:
• Elaborate on how the existing investments have contributed to the notable success of your firm.
• Portfolio Analysis:
• Analyze your firm's portfolio, incorporating key metrics such as price-to-earnings ratio, dividend yield, and earnings per share (EPS).
• Compare these values with the corresponding figures from the S&P 500, a primary stock market index.
• Standalone Critique:
• Critically evaluate your firm and its competitor as standalone entities. Consider stock price, earnings per share, net income, profit margins, beta value, profit or losses, and revenue in this analysis.
• Risk Assessment:
• Assess the risk level of your firm based on its current Beta, providing insights into the overall risk exposure.

A – 4 – Mastery

Thorough and accurate explanation of how current investments have made the company successful.

A – 4 – Mastery

Thorough and accurate analysis of company portfolio, including price-to-earnings ratio, dividend yield, and EPS.

A – 4 – Mastery

Thorough and accurate comparison of key metrics to corresponding figures for the S&P 500.

A – 4 – Mastery

Thorough and accurate evaluation of your firm and its competitor as standalone entities.

A – 4 – Mastery

Through and accurate evaluation of the company's risk level based on its current Beta.

A – 4 – Mastery

The document demonstrated exemplary attribution using credible scholarly sources in APA format and had no spelling and grammar errors that interfered with clarity.