Trident FIN501 Module 1 SLP Latest 2019 January Question # 00597735 Subject: Education Due on: 02/05/2019 Posted On: 02/05/2019 12:45 PM Tutorials: 1 Rating: 4.8/5

FIN501 Corporate
Finance

Module 1 SLP

PRESENT VALUE AND THE RISK/RETURN TRADE-OFF

For the SLP this session, you will be taking a close look at
a company of your choice. You are free to choose any company you want as long
as it is publicly traded on one of the major stock market exchanges such as
NYSE or NASDAQ. This could be a company that you personally are interested in
investing in, or a company whose product you buy, or one that you’ve read about
in the news recently and would like to know more about. Do some research on
this company, including recent articles. Also, look up the company on Google
Finance. This will give you a wealth of information including stock prices over
the last month, year, five years, etc., along with other information such as
the beta or whether or not the company is profitable.

Once you have chosen a company and have done some initial
research on it, write a 2- to 3-page paper discussing the following items:

1. Give a
brief description of the company and why you find it interesting.

2. What is
the beta of this company’s stock? Based on the magnitude of the beta, do you
think it is low risk, high risk, or somewhere in between?

3. Now look
at recent stock price movements. What is the highest price the stock has been
over the last year? The lowest price over the last year? Look at the five-year
pattern as well. Based on what you see, what does this tell you about the
riskiness of the stock?

4. Look at
some other companies in the same industry as your chosen company. How do they
compare in terms of beta and other measures of riskiness? Would you prefer to
invest in your chosen company, or do some of its competitors seem like a better
bet?

SLP Assignment Expectations

• Answer
the assignment questions directly.

• Stay
focused on the precise assignment questions. Do not go off on tangents or
devote a lot of space to summarizing general background materials.

• For
computational problems, make sure to show your work and explain your steps.

• For short
answer/short essay questions, make sure to reference your sources of information
with both a bibliography and in-text citations. See the Student Guide to
Writing a High-Quality Academic Paper, including pages 11-14 on in-text
citations. Another resource is the “Writing Style Guide,” which is found under
“My Resources” in the TLC Portal.