Dow Industrials Average: Case Study
Final Project - Project Description
This project has the student select a company from the Dow Industrials Average (there are 30 companies represented in the Dow Industrials) and perform a business analysis of the company and several financial analyses of the company to assess important factors that impact its viability as well as a comparison of the company to a competitor or an industry average.
Part 1: This assignment is due to be handed in by the end of Week 2. The student will choose a dividend paying company from the Dow Industrials average to analyze. It helps if the student has some affinity to the company. Interest in the company may entice the student to do a more complete analysis. It may be a company with which the student has worked, a friend or …show more content…
Part 3: The student will perform a ratio analysis (see Chapter 3, Table 3.6, for example) of the Income Statement and Balance Sheet of the company for the last 5 years and show any trends over time. Then the student will perform a similar analysis for the company 's major competitor or an industry average to compare and contrast how the company is performing against the competitor(s) over time. Emphasize suggested Managerial Actions based on your analysis.
This is due Week 4.
Part 4: A calculation of the company 's beta will be performed using the last 60 months of stock closing data on the company versus the S&P 500 average stock closing prices. Another analysis should be performed using the last 52 weeks of those same closing prices. This will permit the student to contrast the difference between the short and long term betas to see if the volatility of the company has increased, decreased, or stayed the same.
This is due Week
This project has the student select a company from the Dow Industrials Average (there are 30 companies represented in the Dow Industrials) and perform a business analysis of the company and several financial analyses of the company to assess important factors that impact its viability as well as a comparison of the company to a competitor or an industry average.
Part 1: This assignment is due to be handed in by the end of Week 2. The student will choose a dividend paying company from the Dow Industrials average to analyze. It helps if the student has some affinity to the company. Interest in the company may entice the student to do a more complete analysis. It may be a company with which the student has worked, a friend or …show more content…
Part 3: The student will perform a ratio analysis (see Chapter 3, Table 3.6, for example) of the Income Statement and Balance Sheet of the company for the last 5 years and show any trends over time. Then the student will perform a similar analysis for the company 's major competitor or an industry average to compare and contrast how the company is performing against the competitor(s) over time. Emphasize suggested Managerial Actions based on your analysis.
This is due Week 4.
Part 4: A calculation of the company 's beta will be performed using the last 60 months of stock closing data on the company versus the S&P 500 average stock closing prices. Another analysis should be performed using the last 52 weeks of those same closing prices. This will permit the student to contrast the difference between the short and long term betas to see if the volatility of the company has increased, decreased, or stayed the same.
This is due Week