Final Exam Sutdy Guide fall08

Final Exam Sutdy Guide fall08 - ' - sea,,^.+,--'. q , tT,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ' - sea,,^.+,--'. q , tT, ,l iG) t/, ,1 , 4 I.tCJ"^ [. it''' '\l'i. 4YL a?,^q l{Z Business 172A Investment Analysis Final Exam Study GuideChapter 12: Company Analysis: Historical RecordMajor goal of company analysis:to forecastthe quantity & quality of future earningsCompany Analysis (a) Parts:1. description of company's businesses & properties, includes historical date & details @senior management2. financial material including capitalization, record of earnings, & dividends for several,complete business cycles, flow of firnds analysis, & analysis of recent balance sheets &income statements3. Past stock price history & volume data4. Prospects for company in form of projected future hnancial statements & analysis ofinvestment merits in securitySecurity Analysis Report Should Address:1. quality of company's managementa. Nature of management: definition of management conveys two important ideas-managers are responsible for attainment of various organizational objectives botheffectively(degree to which company achieves its goals) & efficiency (amount ofresources required to produce a certain level ofoutput ofa good or service)(4) basic functions-Planning: setting goals for organization & identifliing tasks & resourcesnecessary to obtain goalsOrganizing: assigns tasks to various parts of organization & allocates resourcesw/in. organizationLeading: motivation of employees to achieve goals of organizationControlling: monitoring performance(3) skills must have: technical, conceptual, & humanb. Evaluating Management: (Questions to ask)What are the age & experience of characteristics of senior management?How efective is the company's strategic planning?Has the company developed &followed a sound marketing strategt?Has the company effectively & numbly adapted to changes in the environment?Has management maintained or improved the company's overallcompetitive position?Has the company grown in an organized, sustainable manner?Has the company beenfnanced adequately & appropriately?Does the compcmy have good relations with employees?Wat is the company's public image?How ffictive is the company's board of directors?2. competitive position of company within its industry: Why is it so important & should onealways restrict investnent choices to industry leaders, never assume that a company willmaintain its competitive position din. its industry in the future. Analyze gowth rate insales, profit margin & return on equity, a longer & broader product line indicates a morecompetitive position, a sign of strong company is new products introduced, producesefficiently, price leader holds dominant competitive position, & exploits patents orproprietary technology3. analysis of company's financial statements: make sure numbers are real, not made up....
View Full Document

Page1 / 10

Final Exam Sutdy Guide fall08 - ' - sea,,^.+,--'. q , tT,...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online