CBAD 363 Final Exam Project

Format and Due Date The due date will be Friday April 26, 2013 no later than 1:00 pm. You may submit your paper any time prior to this time. Late submissions cannot be accepted. Your paper must be at least 12 typed pages in length excluding the cover sheet and the table of contents. You must use 14 pt. fonts for the body of the paper. The cover sheet can be any size fonts. Titles and headings can be 16 pt fonts. The objective of this assignment is to demonstrate that you can apply the corporate financial concepts and methodology learned in the course in a personal financial situation. Assignment Assume you have $ 1,000,000 to allocate to equity investments. Construct an investment portfolio of between 6 and 10 stocks that includes your analysis and conclusions concerning the suitability of each stock for inclusion in your portfolio. To measure the suitability of each investment you will need to first consider your personal risk tolerance, long-term financial goals and prepare an investment policy statement that is based on both. The analysis of each stock should include a section of financial statement ratio analysis and comparisons to industry averages and/or competitors (think in terms of things like Beta and weighted average cost of capital-WACC as well as any other pertinent financial ratios). Based on available information, compute the value of the stock and compare it to the current market price using the methods we covered in the class. Using the tools you have learned in the course, consider and illustrate the risk and return of each stock individually and the overall risk and return of the portfolio. YOU MUST QUANTIFY AND SUPPORT YOUR ANSWERS BY USING THE MEASUREMENT TOOLS FOR INDIVIDUAL STOCK AND TOTAL PORTFOLIO RISK AND RETURN THAT WE LEARNED IN THE COURSE. (in other words, I want you to show numbers in support of your discussions and conclusions. Do not write me a bunch of words about the stock being a great stock with unlimited upside or just say that it is little risky..etc. and etc. without some supporting data). Remember to explore how you could boost your returns using techniques we have discussed in class and work these concepts into your investment approach. Use the tools you saw in class such as Yahoo Finance at www.yahoo.com/finance.

I would say look at Time Warner, strong growth this year, good dividend I would also look at some REIT's they pay high dividends and shares will certainly appreciate given the growth that we're seeing in housing At least one bank At least one Bio-Tech firm Cree Inc. Is a nice one also look at Railroads, and transportation companies Gotcha okay cool... I'd go with BAC, GOOG, AAPL, AIG, VRTX, DPM, LVS and GDP pretty random/ all over the map-- Joe Walsh, financial analst