The mid-term project assesses you on Chapters 1-7. In this project, you need to select a public company and apply everything you have learned so far in this class to give an analysis. Your submission should include (not limited to):
- Overview of the public company that you select.
- Financial statements, i.e. the balance sheet and the income statement, and give a brief analysis of the company’s finances.
- Step by step calculation of the free cash flow (FCF).
- Financial ratio analysis: liquidity ratios, asset management ratios, debt management ratios, profitability ratios, etc.
- Estimated required return on the company’s stock by using the capital asset pricing model (CAPM).
- Stock valuation. Use one of the following valuation models:
- FCF valuation model with a constant growth rate on FCF.
- FCF valuation model with non-constant growth
- Dividend valuation model with constantly growing dividend
- Dividend valuation model with non-constantly growing dividend