Grading Rubric GRADING RUBRIC FOR SECURITIES ANALYSIS ASSIGNMENTS - Student: Technical Analysis & Enterprise Value Ratios Name of Assignment Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets essential requirements Superior Work and clearly above average Work of Distinction Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ A-, A, A+ Points for Assg. Input 14.4 FINC440 Assignments Grade Pts. Earned Weight 1. Organization, format and presentation of assignment including introduction, analysis, and conclusion / summary. Must use appropriate subheadings in assignment.

Assignment fails to meet mininum standards of organizaton, format, and presentation. Little attention afforded to the organization of the assignment. Assignment is average and may have several blemishes; its organization is acceptable. Organization may not follow format including introduction, analysis, and conclusion / summary sections. Assignment is neat and has few blemishes; its organization is very good and easily followed.

Organization includes introduction, analysis, and conclusion / summary sections. Assignment is extremely neat and has no blemishes; its organization is outstanding and very easily followed. Organization includes introduction, analysis, and conclusion / summary sections. A+ 15..00% 2. Effective utilization of at least 6 Technical Analysis indicators.

Assignment fails to present an acceptable model for the required analysis. Minimal effort to include appropriate indicators. There may be weaknesses in the explanations and interpretations. Reasonable effort to include appropriate indicators. Good explanations and interpretations.

Very good effort to include appropriate indicators. May be very good explanations and interpretations. Excellent use of appropriate indicators. Outstanding explanations and interpretations. A+ 20..00% 3.

Interpretation and presentation of results. No significant effort is made to interpret the results and any analysis is cursory. A poor effort is made to present the results of the analysis. The results are not well documented and defended. There may be errors in the analysis.

Effort is made to present the results of the analysis. The results are marginally documented and defended. There may be errors in the analysis. A well-designed and complete presentation is made of the results of the analysis. The results are mostly documented and defended.

A well-designed and extremely thorough presentation is made of the results of the analysis. The results are very clearly documented and defended. A+ 20..00% 4. Enterprise Value ratios and analysis. Very weak or omitted EV analysis and interpretaton.

Limited effort with presenation and analysis of EV ratios. Good effort with the presentation and analysis of the EV ratios. Very good effort with presentation and analysis of EV ratios. Data appear to be correct and model results seem reasonable. Excellent effort with presentation and analysis of EV ratios.

Data appear to be correct and model results seem reasonable. A+ 15..00% 5. Assignment avoids referring to a Company as They, Their, Them, Themselves. Also avoids the use of personal pronouns to every extent possible. Assignment fails to address the Company properly.

May contain many personal pronouns. Excessive number of occurrences referring to the Company as They, Their, Them, Themselves. May have considerable number of personal pronouns. Too many references to the Company as They, Their, Them, Themselves. May be many personal pronouns.

Good effort to avoid references to the Company as They, Their, Them, Themselves. May be a few personal pronouns. Assignment completely avoids improperly referring to Company as They, Their, Them, Themselves. Incidental and only minimum use of personal pronouns. A+ 10..00% 6.

The presentation clearly explains how the content textbook readings and video study informed and contributed to the analysis; appropriate reference citations are included. No obvious effort to use content study for reference or other purposes. Very little, if any, demonstration that the content study informed the analysis. Some use of content study to prepare and support the analysis. Good use of content study to prepare and support the analysis.

Very effective use of content study to prepare and support the analysis. Includes appropriate reference citations. A+ 10..00% 7. Writing, grammar, spelling & punctuation; Use of APA/MLA citation methodology. Combination of grammar, spelling and punctuation errors that is unworthy of credit.

Failure to provide proper reference citations or copying material without quotation marks and references. Paper contains an unacceptably large number of spelling and typographical errors along with numerous mistakes in grammar and writing mechanics. Paper contains numerous distractions that appear in a combination of the following forms: 1. Flow in thought; 2. Spelling and typographical errors; 3.

Grammar / mechanics. Paper contains minimal distractions that appear in a combination of the following forms: 1. Flow in thought; 2. Spelling and typographical errors; 3. Grammar / mechanics.

Paper is clear and concise and appropriate grammar is used throughout; all references are cited appropriately; paper does not have any significant errors. A+ 10..00% 100..00% Grade Total 14.40 Points Earned 0 Scoring Lookup Table A 94 A- 90 A+ 100 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sheet6 Sheet5 Sheet4 Sheet2 Sheet1 Sheet3 Instructions Enterprise Value: Adjusts market cap for balance of cash and debt EV = Market Cap + Total Debt - Total Cash Components Common Stock Oustanding Share Price Total Debt = LT Debt + ST Debt (includes bank loans, O/Ds, medium and long- term loans, bonds) Cash = cash and liquid investments Uses Used to compare companies on measures that exclude interest Allows investor to compare companies in underlying terms, disregarding the impact of their capital structure Companies with radically different capital structures can be compared EV/EBITDA Similar to P/E ratio EBITDA is operating income Worthwhile using EBITDA TTM Means of comparing companies with high levels of debt and lots of cash, or those that are making losses at the net income level Note: Debt is added back in market cap in EV and interest on debt is added in EBITDA Using pre-tax figures means international tax rate differences can be ignored (ADR's) This ratio is widely used by major companies needs to be treated with care, especially where it is used to justify stock market valuations of loss-making companies should be considered relative to competitors Basically, EV is how much capital it would take to buy entire company If 2 companies have same profit, company with less debt would look cheaper Examples EV Model Enterprise Value/EBITDA and PEG Ratio Source of Data: MSN.com Data As Of: April 5, 2010 FIRM NAME(S) McCormick MKC Campbell CPB General Mills GIS PepsiCo PEP Heinz HNZ Average Median COMMON STOCK OUTSTANDING 132...5 1,577....5 Number of Shares (Diluted Weighted Average) RECENT SHARE PRICE .44 .58 .15 .29 .95 .48 $ 45.95 Current Stock Price TOTAL DEBT 1.1

Grading Rubricgrading Rubric For Securities Analysis Assignments Stud

Grading Rubric GRADING RUBRIC FOR SECURITIES ANALYSIS ASSIGNMENTS - Student: Technical Analysis & Enterprise Value Ratios Name of Assignment Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets essential requirements Superior Work and clearly above average Work of Distinction Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ A-, A, A+ Points for Assg. Input 14.4 FINC440 Assignments Grade Pts. Earned Weight 1. Organization, format and presentation of assignment including introduction, analysis, and conclusion / summary. Must use appropriate subheadings in assignment.

Assignment fails to meet mininum standards of organizaton, format, and presentation. Little attention afforded to the organization of the assignment. Assignment is average and may have several blemishes; its organization is acceptable. Organization may not follow format including introduction, analysis, and conclusion / summary sections. Assignment is neat and has few blemishes; its organization is very good and easily followed.

Organization includes introduction, analysis, and conclusion / summary sections. Assignment is extremely neat and has no blemishes; its organization is outstanding and very easily followed. Organization includes introduction, analysis, and conclusion / summary sections. A+ 15..00% 2. Effective utilization of at least 6 Technical Analysis indicators.

Assignment fails to present an acceptable model for the required analysis. Minimal effort to include appropriate indicators. There may be weaknesses in the explanations and interpretations. Reasonable effort to include appropriate indicators. Good explanations and interpretations.

Very good effort to include appropriate indicators. May be very good explanations and interpretations. Excellent use of appropriate indicators. Outstanding explanations and interpretations. A+ 20..00% 3.

Interpretation and presentation of results. No significant effort is made to interpret the results and any analysis is cursory. A poor effort is made to present the results of the analysis. The results are not well documented and defended. There may be errors in the analysis.

Effort is made to present the results of the analysis. The results are marginally documented and defended. There may be errors in the analysis. A well-designed and complete presentation is made of the results of the analysis. The results are mostly documented and defended.

A well-designed and extremely thorough presentation is made of the results of the analysis. The results are very clearly documented and defended. A+ 20..00% 4. Enterprise Value ratios and analysis. Very weak or omitted EV analysis and interpretaton.

Limited effort with presenation and analysis of EV ratios. Good effort with the presentation and analysis of the EV ratios. Very good effort with presentation and analysis of EV ratios. Data appear to be correct and model results seem reasonable. Excellent effort with presentation and analysis of EV ratios.

Data appear to be correct and model results seem reasonable. A+ 15..00% 5. Assignment avoids referring to a Company as They, Their, Them, Themselves. Also avoids the use of personal pronouns to every extent possible. Assignment fails to address the Company properly.

May contain many personal pronouns. Excessive number of occurrences referring to the Company as They, Their, Them, Themselves. May have considerable number of personal pronouns. Too many references to the Company as They, Their, Them, Themselves. May be many personal pronouns.

Good effort to avoid references to the Company as They, Their, Them, Themselves. May be a few personal pronouns. Assignment completely avoids improperly referring to Company as They, Their, Them, Themselves. Incidental and only minimum use of personal pronouns. A+ 10..00% 6.

The presentation clearly explains how the content textbook readings and video study informed and contributed to the analysis; appropriate reference citations are included. No obvious effort to use content study for reference or other purposes. Very little, if any, demonstration that the content study informed the analysis. Some use of content study to prepare and support the analysis. Good use of content study to prepare and support the analysis.

Very effective use of content study to prepare and support the analysis. Includes appropriate reference citations. A+ 10..00% 7. Writing, grammar, spelling & punctuation; Use of APA/MLA citation methodology. Combination of grammar, spelling and punctuation errors that is unworthy of credit.

Failure to provide proper reference citations or copying material without quotation marks and references. Paper contains an unacceptably large number of spelling and typographical errors along with numerous mistakes in grammar and writing mechanics. Paper contains numerous distractions that appear in a combination of the following forms: 1. Flow in thought; 2. Spelling and typographical errors; 3.

Grammar / mechanics. Paper contains minimal distractions that appear in a combination of the following forms: 1. Flow in thought; 2. Spelling and typographical errors; 3. Grammar / mechanics.

Paper is clear and concise and appropriate grammar is used throughout; all references are cited appropriately; paper does not have any significant errors. A+ 10..00% 100..00% Grade Total 14.40 Points Earned 0 Scoring Lookup Table A 94 A- 90 A+ 100 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sheet6 Sheet5 Sheet4 Sheet2 Sheet1 Sheet3 Instructions Enterprise Value: Adjusts market cap for balance of cash and debt EV = Market Cap + Total Debt - Total Cash Components Common Stock Oustanding Share Price Total Debt = LT Debt + ST Debt (includes bank loans, O/Ds, medium and long- term loans, bonds) Cash = cash and liquid investments Uses Used to compare companies on measures that exclude interest Allows investor to compare companies in underlying terms, disregarding the impact of their capital structure Companies with radically different capital structures can be compared EV/EBITDA Similar to P/E ratio EBITDA is operating income Worthwhile using EBITDA TTM Means of comparing companies with high levels of debt and lots of cash, or those that are making losses at the net income level Note: Debt is added back in market cap in EV and interest on debt is added in EBITDA Using pre-tax figures means international tax rate differences can be ignored (ADR's) This ratio is widely used by major companies needs to be treated with care, especially where it is used to justify stock market valuations of loss-making companies should be considered relative to competitors Basically, EV is how much capital it would take to buy entire company If 2 companies have same profit, company with less debt would look cheaper Examples EV Model Enterprise Value/EBITDA and PEG Ratio Source of Data: MSN.com Data As Of: April 5, 2010 FIRM NAME(S) McCormick MKC Campbell CPB General Mills GIS PepsiCo PEP Heinz HNZ Average Median COMMON STOCK OUTSTANDING 132...5 1,577....5 Number of Shares (Diluted Weighted Average) RECENT SHARE PRICE $38.44 $35.58 $71.15 $66.29 $45.95 $51.48 $ 45.95 Current Stock Price TOTAL DEBT $991.1 $2,624.0 $7,075.0 $7,864.0 $5,141.8 $4,739.2 $ 5,141.83 L/T, S/T & Current Portion of L/T TOTAL CASH AND LIQUID INVESTMENTS $39.5 $51.0 $773.2 $4,135.0 $373.2 $1,074.4 $ 373.15 Cash & S/T Investments EBITDA $565.2 $1,509.0 $2,727.2 $9,643.0 $1,765.3 $3,241.9 $ 1,765.25 Normalized EBITDA NET INCOME $299.8 $736.0 $1,304.4 $5,946.0 $923.1 $1,841.9 $ 923.07 Net Income L/T GROWTH RATE 10.00% 6.00% 8.00% 10.00% 8.00% 8.40% 8.00% Earnings Growth Rate - Next 5 years COMPUTER-GENERATED CALCULATIONS COMPANY McCormick MKC Campbell CPB General Mills GIS PepsiCo PEP Heinz HNZ Average Median MARKET CAPITALIZATION $5,085.6 $12,737.6 $24,440.0 $104,539.3 $14,614.9 $32,283.5 $14,614.9 ENTERPRISE VALUE $6,037.2 $15,310.6 $30,741.8 $108,268.3 $19,383.5 $35,948.3 $19,383.5 EV/EBITDA RATIO / Earnings Yield 10.68% 10.15% 11.27% 11.23% 10.98% 11.09% 10.98% P/E RATIO 16.......31 PEG RATIO 1.70 2.88 2.34 1.76 1.98 2.13 1.98 All figures in millions All Data Required Sheet3 FINC440 Instructions & Recommendations for Preparing the Course Assignment Week 2 - Technical Analysis and Enterprise Value Ratios: The purpose of this note is to carefully explain the general expectations and requirements for the Technical Analysis and Enterprise Value Ratios Valuation Assignment that is to be prepared for FINC 440.

The information and materials presented here are intended to make sure that you clearly understand the general expectations and that there are no misunderstandings about what is to be done and what is expected. Please review this material so that you are familiar with the specific requirements that are be followed in the preparation and submission of the Assignment. This Assignment comprises 14.4% of the final course grade. It will take some time and effort to produce high quality analysis. 1.

Using at least 6 commonly used indicators, conduct a Technical Analysis of the common stock of the company that you selected to study. Explain the purpose and how to interpret each of the indicators. Then, explain what each of the indicators suggest about the value of the company’s stock now and in the future. 2. Prepare an analysis of Enterprise Value (and the EV/EBITDA ratio).

Report the results of both analyses and explain what they mean? 3. Based on all of the indicators, is the stock of the company overvalued or undervalued? Submission : Submit to Gradebook and Post a Copy in the Discussion Section of the Online Classroom. Required Outline & Other Information about the Assignments – 1.

Work Hard to Avoid Personal Pronouns – The excessive use of personal pronouns is discouraged in business and analytical writing. It is recommended that personal pronouns are avoided altogether, if possible. Please make sure that personal pronouns (e.g., I, we, my, our, etc.) are avoided in paper. It will take some work, but it can be done easily by rearranging the wording of sentences. 2.

Companies Are Not “They,†“Their,†or “Them†– This is a reminder that a company is not a “they,†“their,†or “them.†A company is very much an “it.†So, to reference a company, use “it,†the name of the company, or “the company,†or “the organization,†or “the firm,†etc. 3. Outline for Paper –Students must use the required outline for this assignment. The closer that the paper conforms to the required outline, the better! The outline is presented in the next section.

4. Evaluation Rubric – An evaluation rubric is available for the Assignments. It will be used to evaluate the Assignments. The rubric shows the important components that must be included in the papers. It is a good idea to take a look at the rubric and make sure that each Assignment addresses the requirements.

A copy is posted with each Assignment in the online classroom. 5. Subheadings – Each section of the paper must begin with a sub-heading. Please use the sub-headings included in the required outline (presented in the next section). Here is the Required Outline (It must be used for each Assignment) - Thefive class Assignments are intended to be constructive learning experiences.

They are designed to show students how to prepare analytical reports in finance using critical thinking, research, and writing skills. The following outline is to be used for each Assignment; these titles are the required subheadings for the sections of the written report : : 1. Cover Page - Include a cover page containing the title of the Assignment, the student’s name, the professor’s name, the course title, and the date. 2. Introduction – The Introduction must include: (a) A review of the Assignment purpose, research methods and the principal information sources, and other information related to the completion of the analysis. (b) The introduction should also include an overview of the sections of the paper that follow. (1/2 to 1 page) 3.

Analysis Section – The body of the report is to address the assigned topics and questions. It is essential that students include appropriate in-text reference citations in APA format: 4. Summary / Conclusion – The summary or conclusion should review the major observations, conclusions and recommendations developed in the analysis. No new material should be introduced in this section. (1/2 to 1 page) 6. References – Provide list of references in APA format.

,624.0 ,075.0 ,864.0 ,141.8 ,739.2 $ 5,141.83 L/T, S/T & Current Portion of L/T TOTAL CASH AND LIQUID INVESTMENTS .5 .0 3.2 ,135.0 3.2 ,074.4 $ 373.15 Cash & S/T Investments EBITDA 5.2 ,509.0

Grading Rubricgrading Rubric For Securities Analysis Assignments Stud

Grading Rubric GRADING RUBRIC FOR SECURITIES ANALYSIS ASSIGNMENTS - Student: Technical Analysis & Enterprise Value Ratios Name of Assignment Description of Evaluation Failing, undeserving of credit Passing, but below standard Satisfactory, meets essential requirements Superior Work and clearly above average Work of Distinction Related Grade F D-, D, D+ C-, C, C+ B-, B, B+ A-, A, A+ Points for Assg. Input 14.4 FINC440 Assignments Grade Pts. Earned Weight 1. Organization, format and presentation of assignment including introduction, analysis, and conclusion / summary. Must use appropriate subheadings in assignment.

Assignment fails to meet mininum standards of organizaton, format, and presentation. Little attention afforded to the organization of the assignment. Assignment is average and may have several blemishes; its organization is acceptable. Organization may not follow format including introduction, analysis, and conclusion / summary sections. Assignment is neat and has few blemishes; its organization is very good and easily followed.

Organization includes introduction, analysis, and conclusion / summary sections. Assignment is extremely neat and has no blemishes; its organization is outstanding and very easily followed. Organization includes introduction, analysis, and conclusion / summary sections. A+ 15..00% 2. Effective utilization of at least 6 Technical Analysis indicators.

Assignment fails to present an acceptable model for the required analysis. Minimal effort to include appropriate indicators. There may be weaknesses in the explanations and interpretations. Reasonable effort to include appropriate indicators. Good explanations and interpretations.

Very good effort to include appropriate indicators. May be very good explanations and interpretations. Excellent use of appropriate indicators. Outstanding explanations and interpretations. A+ 20..00% 3.

Interpretation and presentation of results. No significant effort is made to interpret the results and any analysis is cursory. A poor effort is made to present the results of the analysis. The results are not well documented and defended. There may be errors in the analysis.

Effort is made to present the results of the analysis. The results are marginally documented and defended. There may be errors in the analysis. A well-designed and complete presentation is made of the results of the analysis. The results are mostly documented and defended.

A well-designed and extremely thorough presentation is made of the results of the analysis. The results are very clearly documented and defended. A+ 20..00% 4. Enterprise Value ratios and analysis. Very weak or omitted EV analysis and interpretaton.

Limited effort with presenation and analysis of EV ratios. Good effort with the presentation and analysis of the EV ratios. Very good effort with presentation and analysis of EV ratios. Data appear to be correct and model results seem reasonable. Excellent effort with presentation and analysis of EV ratios.

Data appear to be correct and model results seem reasonable. A+ 15..00% 5. Assignment avoids referring to a Company as They, Their, Them, Themselves. Also avoids the use of personal pronouns to every extent possible. Assignment fails to address the Company properly.

May contain many personal pronouns. Excessive number of occurrences referring to the Company as They, Their, Them, Themselves. May have considerable number of personal pronouns. Too many references to the Company as They, Their, Them, Themselves. May be many personal pronouns.

Good effort to avoid references to the Company as They, Their, Them, Themselves. May be a few personal pronouns. Assignment completely avoids improperly referring to Company as They, Their, Them, Themselves. Incidental and only minimum use of personal pronouns. A+ 10..00% 6.

The presentation clearly explains how the content textbook readings and video study informed and contributed to the analysis; appropriate reference citations are included. No obvious effort to use content study for reference or other purposes. Very little, if any, demonstration that the content study informed the analysis. Some use of content study to prepare and support the analysis. Good use of content study to prepare and support the analysis.

Very effective use of content study to prepare and support the analysis. Includes appropriate reference citations. A+ 10..00% 7. Writing, grammar, spelling & punctuation; Use of APA/MLA citation methodology. Combination of grammar, spelling and punctuation errors that is unworthy of credit.

Failure to provide proper reference citations or copying material without quotation marks and references. Paper contains an unacceptably large number of spelling and typographical errors along with numerous mistakes in grammar and writing mechanics. Paper contains numerous distractions that appear in a combination of the following forms: 1. Flow in thought; 2. Spelling and typographical errors; 3.

Grammar / mechanics. Paper contains minimal distractions that appear in a combination of the following forms: 1. Flow in thought; 2. Spelling and typographical errors; 3. Grammar / mechanics.

Paper is clear and concise and appropriate grammar is used throughout; all references are cited appropriately; paper does not have any significant errors. A+ 10..00% 100..00% Grade Total 14.40 Points Earned 0 Scoring Lookup Table A 94 A- 90 A+ 100 B 85 B- 81 B+ 88 C 75 C- 71 C+ 78 D 65 D- 61 D+ 68 F 40 F- 0 F+ 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sheet6 Sheet5 Sheet4 Sheet2 Sheet1 Sheet3 Instructions Enterprise Value: Adjusts market cap for balance of cash and debt EV = Market Cap + Total Debt - Total Cash Components Common Stock Oustanding Share Price Total Debt = LT Debt + ST Debt (includes bank loans, O/Ds, medium and long- term loans, bonds) Cash = cash and liquid investments Uses Used to compare companies on measures that exclude interest Allows investor to compare companies in underlying terms, disregarding the impact of their capital structure Companies with radically different capital structures can be compared EV/EBITDA Similar to P/E ratio EBITDA is operating income Worthwhile using EBITDA TTM Means of comparing companies with high levels of debt and lots of cash, or those that are making losses at the net income level Note: Debt is added back in market cap in EV and interest on debt is added in EBITDA Using pre-tax figures means international tax rate differences can be ignored (ADR's) This ratio is widely used by major companies needs to be treated with care, especially where it is used to justify stock market valuations of loss-making companies should be considered relative to competitors Basically, EV is how much capital it would take to buy entire company If 2 companies have same profit, company with less debt would look cheaper Examples EV Model Enterprise Value/EBITDA and PEG Ratio Source of Data: MSN.com Data As Of: April 5, 2010 FIRM NAME(S) McCormick MKC Campbell CPB General Mills GIS PepsiCo PEP Heinz HNZ Average Median COMMON STOCK OUTSTANDING 132...5 1,577....5 Number of Shares (Diluted Weighted Average) RECENT SHARE PRICE $38.44 $35.58 $71.15 $66.29 $45.95 $51.48 $ 45.95 Current Stock Price TOTAL DEBT $991.1 $2,624.0 $7,075.0 $7,864.0 $5,141.8 $4,739.2 $ 5,141.83 L/T, S/T & Current Portion of L/T TOTAL CASH AND LIQUID INVESTMENTS $39.5 $51.0 $773.2 $4,135.0 $373.2 $1,074.4 $ 373.15 Cash & S/T Investments EBITDA $565.2 $1,509.0 $2,727.2 $9,643.0 $1,765.3 $3,241.9 $ 1,765.25 Normalized EBITDA NET INCOME $299.8 $736.0 $1,304.4 $5,946.0 $923.1 $1,841.9 $ 923.07 Net Income L/T GROWTH RATE 10.00% 6.00% 8.00% 10.00% 8.00% 8.40% 8.00% Earnings Growth Rate - Next 5 years COMPUTER-GENERATED CALCULATIONS COMPANY McCormick MKC Campbell CPB General Mills GIS PepsiCo PEP Heinz HNZ Average Median MARKET CAPITALIZATION $5,085.6 $12,737.6 $24,440.0 $104,539.3 $14,614.9 $32,283.5 $14,614.9 ENTERPRISE VALUE $6,037.2 $15,310.6 $30,741.8 $108,268.3 $19,383.5 $35,948.3 $19,383.5 EV/EBITDA RATIO / Earnings Yield 10.68% 10.15% 11.27% 11.23% 10.98% 11.09% 10.98% P/E RATIO 16.......31 PEG RATIO 1.70 2.88 2.34 1.76 1.98 2.13 1.98 All figures in millions All Data Required Sheet3 FINC440 Instructions & Recommendations for Preparing the Course Assignment Week 2 - Technical Analysis and Enterprise Value Ratios: The purpose of this note is to carefully explain the general expectations and requirements for the Technical Analysis and Enterprise Value Ratios Valuation Assignment that is to be prepared for FINC 440.

The information and materials presented here are intended to make sure that you clearly understand the general expectations and that there are no misunderstandings about what is to be done and what is expected. Please review this material so that you are familiar with the specific requirements that are be followed in the preparation and submission of the Assignment. This Assignment comprises 14.4% of the final course grade. It will take some time and effort to produce high quality analysis. 1.

Using at least 6 commonly used indicators, conduct a Technical Analysis of the common stock of the company that you selected to study. Explain the purpose and how to interpret each of the indicators. Then, explain what each of the indicators suggest about the value of the company’s stock now and in the future. 2. Prepare an analysis of Enterprise Value (and the EV/EBITDA ratio).

Report the results of both analyses and explain what they mean? 3. Based on all of the indicators, is the stock of the company overvalued or undervalued? Submission : Submit to Gradebook and Post a Copy in the Discussion Section of the Online Classroom. Required Outline & Other Information about the Assignments – 1.

Work Hard to Avoid Personal Pronouns – The excessive use of personal pronouns is discouraged in business and analytical writing. It is recommended that personal pronouns are avoided altogether, if possible. Please make sure that personal pronouns (e.g., I, we, my, our, etc.) are avoided in paper. It will take some work, but it can be done easily by rearranging the wording of sentences. 2.

Companies Are Not “They,†“Their,†or “Them†– This is a reminder that a company is not a “they,†“their,†or “them.†A company is very much an “it.†So, to reference a company, use “it,†the name of the company, or “the company,†or “the organization,†or “the firm,†etc. 3. Outline for Paper –Students must use the required outline for this assignment. The closer that the paper conforms to the required outline, the better! The outline is presented in the next section.

4. Evaluation Rubric – An evaluation rubric is available for the Assignments. It will be used to evaluate the Assignments. The rubric shows the important components that must be included in the papers. It is a good idea to take a look at the rubric and make sure that each Assignment addresses the requirements.

A copy is posted with each Assignment in the online classroom. 5. Subheadings – Each section of the paper must begin with a sub-heading. Please use the sub-headings included in the required outline (presented in the next section). Here is the Required Outline (It must be used for each Assignment) - Thefive class Assignments are intended to be constructive learning experiences.

They are designed to show students how to prepare analytical reports in finance using critical thinking, research, and writing skills. The following outline is to be used for each Assignment; these titles are the required subheadings for the sections of the written report : : 1. Cover Page - Include a cover page containing the title of the Assignment, the student’s name, the professor’s name, the course title, and the date. 2. Introduction – The Introduction must include: (a) A review of the Assignment purpose, research methods and the principal information sources, and other information related to the completion of the analysis. (b) The introduction should also include an overview of the sections of the paper that follow. (1/2 to 1 page) 3.

Analysis Section – The body of the report is to address the assigned topics and questions. It is essential that students include appropriate in-text reference citations in APA format: 4. Summary / Conclusion – The summary or conclusion should review the major observations, conclusions and recommendations developed in the analysis. No new material should be introduced in this section. (1/2 to 1 page) 6. References – Provide list of references in APA format.

,727.2 ,643.0 ,765.3