Category: Financial Management

Capstone Component 1: Portfolio Research and Analysis Paper
For the first capstone component, you will research and analyze a comprehensive financial portfolio composed of at least five securities designed to meet your selected client’s investment needs. (At least one security must be an equity for a publicly traded, U.S.-based global corporation for which you will perform a competitor analysis.) The paper should cover the risk-adjusted return and volatility for each security and for the portfolio as a whole, based on your research and the observed performance of the instruments during the course. You must also provide the rationale for each selection. In addition, provide the projected value of the portfolio at the end of the client’s investment period and the assumptions underlying that projection. Include any tax implications of your suggestions. You should also suggest a reasonable and compliant timeframe in which to review the portfolio in the future and make adjustments as needed given new market conditions.
Remember that to fulfill your fiduciary duties in serving the best interest of your client, your portfolio research and analysis paper will need to be succinct, clear, and well supported throughout by reliable research and credible evidence.
Your paper should include the following sections:
Executive Summary. Provide a brief overview of the key findings and recommendations from your portfolio analysis and research.
Portfolio Analysis. Research and analyze a portfolio of at least five securities using a portfolio strategy (value, growth, etc.) and risk-tolerance level appropriate to the needs and return requirements of your client. For each security in the portfolio, provide a financial analysis covering the associated risk, return, and tax implications. In addition, provide a clear assessment of the strengths, weaknesses, opportunities, and threats of any companies whose stock is included in the portfolio. Assess the alpha, beta, and intrinsic value for each equity security and for the portfolio as a whole based on your analysis. Use the capital asset pricing model (CAPM) to develop the return for each equity security. Provide a well-supported rationale for why each security is included and how it aligns with client objectives, including an assessment of any preferential factors the client might be concerned about such as market share, innovation, and sustainability practices.
Competitive Analysis. Research at least one publicly traded, U.S.-based global company in more depth, comparing its performance and value with a close competitor. (If your portfolio includes more than one company that meets these specifications, select the one you think would be of most interest to the client.) The goal is to analyze investment alternatives with a focus on better serving the client. The competitive analysis must include, but is not limited to, the criteria described below.
Compare key ratios of financial performance and health at the selected company and its peer competitor. Consider, at a minimum, the following measures:
Profitability, including return on equity (ROE) and net profit margin
Liquidity, including the current ratio
Debt management, including the debt-to-equity ratio
Market, including earnings per share and price earnings ratio
You may include other ratios and indicators as appropriate.
Analyze what the key ratios for the two companies suggest about their respective organizational goals and objectives both now and in the future.
Compare newsworthy events (such as salient industry or economic events, policy or political changes, and natural disasters) that have affected (or may affect) one or both companies. Discuss how the events affected (or are likely to affect) strategic goals and financial planning within the two organizations and how that, in turn, may affect investor returns.
Evaluate the alpha and beta for each company’s stock.
Assess the merit of the selected company as an investment in the global context as compared to the peer company selected. In other words, which company is a better investment for the client? Why?
Estimated Return and Value. Estimate the rate of return for the portfolio as a whole and perform a multi-period net present value analysis based on the client’s investment time horizon. Discuss the expected rate of inflation.
Conclusions. Specify any takeaway message for the client based on your research and the securities’ observed performance. Do you stand by your initial selections? Why, or why not? Be transparent about any assumptions you have made, how confident you are in those assumptions, how changes in those assumptions might affect portfolio performance, as well as when it might be appropriate to review the portfolio again to make any needed adjustments.
Your portfolio research and analysis paper (Component 1) should be about 25 pages in length, including visual aids (plus a cover page and references). Use double spacing, 12-point Times New Roman font, and one-inch margins. Calculations should be provided in an appendix, with appropriate references in the body of the analysis. You may also include illustrations, graphs, charts, and other nontextual materials as appropriate to support your analysis.
Client overview is attached

Read the case study thoroughly and present (in written form) a plan for how you will reach the
desired profit goal. As you formulate your plan, remember that it costs money to make money.
So, if your plan is to increase corporate partnerships, keep in mind that it may cost money in
areas like labor and office supplies to generate this additional revenue. The net profit increase
must be $350,000 while factoring in both revenues and expenses. In this analysis, you should
discuss specific steps you can take and financial resources to achieve your goals. Importantly,
you will need to defend your rationale with at least five (5) financial points/strategies, including
hard numbers and detailed discussion rather than an emotional argument. Overall, the goal of this
assignment is to denote specific steps you can take, while providing the overall philosophy that
guided your rationale with the decision-making process, as well as justification for each
individual strategy/decision.
Remember, you are to format this document in an easily understood and readable explanation as
an easily readable document that has flow and is formatted in a professional manner (perhaps
from lists, tables, financial data, brief but comprehensive explanations/paragraphs, charts,
graphics, etc).

Now that you have chosen a portfolio strategy for your selected client, (Client info is attached) it is time to begin constructing the portfolio. Pick one stock for the client that you intend to include in their client portfolio. Complete a ratio analysis of the stock, calculate the alpha for the stock, and provide the rationale for the inclusion of the stock in the portfolio. Indicate its merit as an investment and its potential for growth and sustainable returns, which will ultimately align with your portfolio strategy. In addition, provide a clear assessment of the strengths, weaknesses, opportunities, and threats of the company whose stock is included in the portfolio. The purpose of this information is to ensure that you are approaching the financial analysis appropriately from a procedural perspective. Your instructor will provide feedback, which will point to any criteria that require additional attention. You will eventually perform an analysis on all of your chosen stocks and submit it in the Module Seven final submission, inclusive of any indications given by your instructor.
Directions
Specifically, you must address the following rubric criteria:
Portfolio Analysis. Research and analyze one stock using the portfolio strategy you identified in Milestone One and a risk-tolerance level appropriate to the needs and return requirements of your client. Provide a financial analysis of this stock covering the associated risk, return, and tax implications. In addition, provide a clear assessment of the strengths, weaknesses, opportunities, and threats of the company whose stock is included in the portfolio. Also, complete a ratio analysis of the stock and calculate the alpha for the stock. Use the capital asset pricing model (CAPM) to develop the return for the equity security. Provide a well-supported rationale for why the security is included and how it aligns with client objectives, including an assessment of any preferential factors the client might be concerned about such as market share, innovation, and sustainability practices.
What to Submit
Submit this assignment as a 1- to 2-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least three sources, which should be cited according to APA style. Your supporting research should be as up to date as possible. Any news stories, press releases, or additional sources must be dated within the last 60 days. Company data should be no more than one year old. Using older data may result in being asked to resubmit your work.
Your submission must be supported by a Microsoft Excel file to portray the financial analysis.

Overview
As a newly hired CFP® professional, you are responsible for providing a comprehensive picture of your client’s current finances in relation to their financial goals. In your project for this course, you will be asked to construct a financial plan for a client. To do this, you will conduct an analysis and evaluation of the client goals and determine appropriate recommendations that you will in turn present to the client. In this first milestone, you will analyze the client’s wants, needs, and goals.
Directions
Before you begin, review the Project Case Study attached. Then, using the template provided, address each of the following in a minimum of 3–6 sentences:
Determine a client’s financial health using one or more established approaches to financial planning analysis and recommendations. Address the following in your response:
Life cycle approach
Pie chart approach
Financial statement and ratio analysis approach
Other
Determine how a client’s psychology might influence their financial behaviors. Address the following in your response:
Financial motivations
Risk tolerance
Money beliefs
Sources of money conflict
Identify a client’s specific financial planning goals. Address the following in your response:
Short-term: Less than a year
Intermediate-term: 2 to 10 years
Long-term: Greater than 10 years
Describe the role of cognitive bias in relation to the case study presented. Address the following in your response:
Potential cognitive biases of the client
Potential cognitive biases of the planner
Evaluate opportunities for improving or addressing problem areas in the client’s budget. Address the following in your response and include any assumptions used in making your recommendations:
Financing strategies
Debt management
Cash-flow management
Income
Expenses
What to Submit
Submit your milestone using the Milestone One Template, addressing each element in a minimum of 3–6 sentences. Sources should be cited according to APA style.

Instructions:
Find a home you would like to buy somewhere in the U.S. (assume you have sufficient funds and financing means). Use Google, Zillow, Realtor.com or another real estate site to find a home. Make sure to include the link for the home in your discussion post so others can view it.
Home Link: https://www.realtor.com/realestateandhomes-detail/121-Sunrise-Dr_Mars-Hill_NC_28754_M98455-00924?from=srp-list-card
For the home you find, assume you will put a 30% down payment on the asking price (disregard closing costs). Look up an approximate interest rate for a 15 or 30 year loan using bankrate.com or a lender website of your choice. Select one (not both) for calculating a monthly payment.
Using Excel’s pmt function, calculate the monthly payment for your new home and post (along with the link to your subject property) the following 5 figures: 1) Purchase price, 2) Loan amount, 3) Annual interest rate, not APR, 4) Term in months, 5) Monthly payment.
Here are the pmt function variables: rate = interest rate divided by 12, for example .06/12; nper = number of months (180 or 360); pv = the loan amount (purchase price minus the 30% down payment).
Paste a copy of your Excel formula into the post. It can be copied from the formula bar on the Excel page, next to the fx icon. Don’t use cell references in the formula so we can see the actual figures used (and so you don’t need to attach an Excel file). Provide any additional comments or details about your search or the property that you’d like.

please do the attached case project assignment (case project 2 pdf file). Follow the instructions and rubric that is specified in the assignment. please read the attached lecture notes “risk, cost of capital and valuation pdf file” to understand the material better. Additionally, the excel spreadsheet template is attached for the lecture materials. Please use the necessary excel spreadsheet template to complete the calculations as all computations must be in Excel. Then, write a Microsoft word write-up report of the case for the computations you had done.

please do the attached case project assignment (case project 2 pdf file). Follow the instructions and rubric that is specified in the assignment. please read the attached lecture notes “risk, cost of capital and valuation pdf file” to understand the material better. Additionally, the excel spreadsheet template is attached for the lecture materials. Please use the necessary excel spreadsheet template to complete the calculations as all computations must be in Excel. Then, write a Microsoft word write-up report of the case for the computations you had done.

Project 1 is the Fundamental Analysis of Reagan Technologies, Incorporated to explore its
current financial position and identify possible shortcomings and future threats. Your
fundamental analysis will examine the present stock price, dividend payout ratio, earnings per
share, price-earnings ratio, and the company’s growth rate. In addition, this method is used to
investigate stock valuation indicators. You can use an MS Excel spreadsheet to make your
calculations.
Overview of the Company
The brothers Robert Reagan and Thomas Reagan formed Reagan Technologies. The company
has earned healthy profits for the past ten years. The reason behind this is the unique
technology the company uses. The company is in the business of providing plastic computer
parts for personal computers. Reagan Technologies has 300,000 shares outstanding for the
company. Each brother owns 150,000 shares. The total dividends of the company were
$640,000. The return on equity (ROE) is 21%. The Reagan Technologies required rate of return
is 18%.
INSTRUCTOR HINTS
Hint for Question 1: The earnings per share are $5.35. Check the case for how many shares
are outstanding. Multiply the earnings per share by the total shares outstanding for the total
earnings.
Hint for Question 2: The case provides the dividend payout amount. The dividend payout
amount divided by the total earnings is the payout ratio.
Hint for Question 3: The opposite of the payout ratio is the retention ratio. The two ratios
together would = 100%.
That should help you get the first three questions.
The Stock Valuation of Reagan Technologies Inc.
1. What are the total earnings? (14 points)
2. What is the payout ratio? (14 points)
3. What is the retention ratio? (14 points)
4. What is the company’s growth rate? (14 points)
5. What is the total equity value of the company? (14 points)
6. What is the value per share? (14 points)
7. The industry growth rate is 7.81% and the industry PE is $18.08 / $1.51 = 12.00. Compare
Reagan Technologies with the industry’s growth and PE rates. What are the reasons for
the differences? Will this affect future growth? (40 to 60 words) (16 points)

Project 1 is the Fundamental Analysis of Reagan Technologies, Incorporated to explore its
current financial position and identify possible shortcomings and future threats. Your
fundamental analysis will examine the present stock price, dividend payout ratio, earnings per
share, price-earnings ratio, and the company’s growth rate. In addition, this method is used to
investigate stock valuation indicators. You can use an MS Excel spreadsheet to make your
calculations.
Overview of the Company
The brothers Robert Reagan and Thomas Reagan formed Reagan Technologies. The company
has earned healthy profits for the past ten years. The reason behind this is the unique
technology the company uses. The company is in the business of providing plastic computer
parts for personal computers. Reagan Technologies has 300,000 shares outstanding for the
company. Each brother owns 150,000 shares. The total dividends of the company were
$640,000. The return on equity (ROE) is 21%. The Reagan Technologies required rate of return
is 18%.
INSTRUCTOR HINTS
Hint for Question 1: The earnings per share are $5.35. Check the case for how many shares
are outstanding. Multiply the earnings per share by the total shares outstanding for the total
earnings.
Hint for Question 2: The case provides the dividend payout amount. The dividend payout
amount divided by the total earnings is the payout ratio.
Hint for Question 3: The opposite of the payout ratio is the retention ratio. The two ratios
together would = 100%.
That should help you get the first three questions.
The Stock Valuation of Reagan Technologies Inc.
1. What are the total earnings? (14 points)
2. What is the payout ratio? (14 points)
3. What is the retention ratio? (14 points)
4. What is the company’s growth rate? (14 points)
5. What is the total equity value of the company? (14 points)
6. What is the value per share? (14 points)
7. The industry growth rate is 7.81% and the industry PE is $18.08 / $1.51 = 12.00. Compare
Reagan Technologies with the industry’s growth and PE rates. What are the reasons for
the differences? Will this affect future growth? (40 to 60 words) (16 points)

Please, review the question below, and write a 2-3 paragraph essay, answering the question in your own words. Use any outside sources you consider relevant.
What is the difference between operating leverage and financial leverage?