The Project to be addressed by the Paper: You have just graduated from Keiser University’s MBA program and have secured a position as a fund manager for a well-known investment banking house. You have been given $25 million to manage/invest in a single stock. The fund is a pension/retirement fund, so its perspective is long term with moderate risk of loss of capital and a required return of 9% per annum. Your assignment is to determine if the fund you are managing should invest $25 million dollars in the stock of the company you have selected.(LOWES) Select a publicly traded US based company (LOWES) is the company already selected, (HOME DEPOT) is their competitor. Your decision to invest or not invest will be supported by the research paper, Excel spreadsheet of ratios, and a Power Point Presentation showing a SWOT analysis. Will you or will you not invest $25
million in this particular Company(LOWES)? Support your conclusion? Remember a negative conclusion is just as valid and valuable as a positive conclusion. What are your companies financial and strategic strengths, weaknesses, opportunities, and threats? Use the attached SWOT framework as your guide. Most important: make recommendations and answer the overarching question: to invest or not to invest? Research two (2) articles to review (one (1) peer reviewed not more than 5 years old and one (1) current year article from a reputable website. Minimum two (2) pages not including title and reference page using APA format.
INSTRUCTIONS
Format
- and organization. Format: 1) Minimum of ten (10) pages (not including self-prepared exhibits, title page or reference page), with numbered pages. 2) Typed, double spaced. 3) New Times Roman (i.e. business) font, 12 point. 4) Margins – 1 inch 5) Include boldface headings and subheadings. 6) Note source citations as appropriate under APA 7th edition guideline. Please use in-text citations. See the attached template for assistance with the organization. Preparing the Presentation: Presentations will be made in class during the last day of class. The presentation will be supported by 7 to 10 Power Point slides and will last not more than 10 minutes (Executive Committee length). Please see the week 8 instructions. Show all of your calculations clearly, number your responses, and write in your own words and complete sentences if writing is required. Portfolio Performance Analysis Presentation: Create and submit a presentation of your portfolio performance analysis. Include all the elements in brief from your project. Include all elements from the financial analysis and clearly justify your decision to invest or not invest 25 Million dollars in the company. A minimum of 5-7 slides, professional design, graphs, charts, bullet points, and images. Include a title page and reference list.
Include:
Brief overview of the company
Financial Ratio analysis results, score, and comparison to competitor
Proforma projections, sensitivity analysis, price or cost?
Value of operations, value of company, WACC, CAPM, Free Cash Flow, BETA, AFN
Would you invest or not invest $25 million in this company? Excel file with financial ratios and necessary info on selected company and competitor are attached along with directions for this project.