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Project 1

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Submitted By sote2000
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The Security Analysis Project

What is this project?
This project provides an opportunity to get some hands-on experience applying investment theory and models to real firms. In the process, participants will get a chance to:

evaluate the risk profile of a firm and examine the sources of risk; analyze its capital structure and decide whether the firm is under- or over-leveraged; examine its dividend policy and decide whether the firm is under- or over-leveraged; and value the firm.

How is the project structured?
This is a project requiring by individual analysis and group synthesis. Each group should have at least 5 members but not to exceed 7.

Each group will pick an industry to study.
Each group member will pick a firm within this chosen industry to analyze. The companies chosen does not imply that they be competitors. For instance, a group can pick a company that manufactures personal computers, a company that produces software, and a company that provides computer services as part of the same group.
Each person will be responsible for doing the entire analysis for the company that he or she has chosen.
At the end of the process, the group will write one integrated report for all the firms in the group. In this report, the firms will be compared and contrasted and the results will be presented as a whole rather than as five separate parts.

How will the project be graded?
Each group will be graded on the final project and all of the presentations during the semester. The group grade will be allocated according to the Grade Allocation Sheet (see syllabus). In addition, members will be graded on their individual project parts turned throughout the semester. See the due dates below.

Date Project
1/22 Pick the firms for the project and start gathering data
2/5 Project 1: Corporate Governance and Stockholder Analysis
2/19 Project 2: Risk

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