Description
How do beta, market capitalization, trade volume, and cash flow activities translate to a company’s competitive advantage?
Part One
Return to the same MS Excel file you submitted for memo 3. Under the Week 4 tab, gather the market capitalization, daily trade volume/average trade volume, beta, cash flow for operating, investing, and financing, capital expenditures, and free cash flow information about your chosen company and its closest competitor.
Part Two
In a memo to the Chief Executive Officer, answer the following questions, which are pre-loaded in your Memo Template:
Beta is a measure of a stock’s volatility in relation to the overall market. To learn more about beta, visit What Beta Means When Considering a Stock’s Risk. (What Beta Means: Considering a Stock’s Risk (investopedia.com)Market capitalization refers to the total dollar market value of a company’s outstanding shares of stock. Considering this information, how does your chosen company’s beta, market capitalization, and trade volume compare to that of the chosen competitor? Can you draw any conclusions from the company’s competitive advantage using this information? What data, reference, or ratios drew you to that conclusion?
After analyzing and interpreting the cash flow for operating, investing, and financing, as well as capital expenditures and free cash flow information, which company is receiving more money, spending more money, and has more money in free cash flow? Considering that a dollar today is not worth a dollar tomorrow, which company appears to be a better steward of its capital? What data, reference, or ratios drew you to that conclusion?
Which of the two companies is the “better run company”? (Keep in mind that you will get posed this question for the next several weeks. Track how you grow from this week to the next week with your response.)
Unformatted Attachment Preview
Memo
To:
Chief Executive officer
From:
Your Name
Date:
Date
Re:
Weekly Dropbox Memo #4
1. Beta is a measure of a stock’s volatility in relation to the overall market. To learn
more about beta, visit What Beta Means When Considering a Stock’s Risk.
Market capitalization refers to the total dollar market value of a company’s
outstanding shares of stock. Considering this information, how does your chosen
company’s beta, market capitalization, and trade volume compared to that of the
chosen competitor? Can you draw any conclusions of the company’s competitive
advantage using this information? What data, reference, or ratios drew you to
that conclusion? Please be detailed. (After answering this question, please
remove the question.)
2. After analyzing and interpreting the cash flow for operating, investing, and
financing, capital expenditures, and free cash flow information, which company is
receiving more money, spending more money, and has more money in free cash
flow? Considering a dollar today is not worth a dollar tomorrow, which company
appears to be a better steward of its capital? What data, reference, or ratios drew
you to that conclusion? Please be detailed. (After answering this question,
please remove the question.)
3. Which of the two companies is the “better run company”? (Keep in mind that you
will get posed this question for the next several weeks. Keep track of how you
grow from this week to the next week with your response.) Please be detailed.
(After answering this question, please remove the question.)
Please consider inserting the MS Excel chart in this section. If you do, there is no need
to upload the spreadsheet to Dropbox. Sample below.
2
Analysis Memo Rubric
Course: FINC 350 CDE – BUSINESS FINANCE
Criteria
Content
Analysis
Level 4
Level 3
Level 2
Level 1
Criterion Score
20 points
17 points
14 points
0 points
/ 20
Data gathered
in the
Data gathered
in the
Data gathered
in the
Data gathered
in the
spreadsheet is
90% to 100%
accurate
spreadsheet is
80% to 89%
accurate
spreadsheet is
70% to 79%
accurate
spreadsheet is
below 70%
accurate or is
not present.
20 points
17 points
14 points
0 points
The
assignment’s
content is
thorough, well
organized, and
provides
critical thinking
into the
topic(s)
presented in
the course
material and
textbook.
The
assignment’s
content
addresses the
topic(s) for the
week and
shows thought
was given
to the topic(s)
presented in
the course
material and
textbook. Or
The
assignment’s
content is
evident;
however, it is
lacking in
critical thinking
or is not well
organized
to the topic(s)
presented in
the course
material and
No memo
submitted or
the submission
is below 200
words in
length.
Additionally,
the submission
is at least 500
words.
the submission textbook. Or
is between 400 the submission
and 499 words. is at least 200
words but not
300 words in
length.
/ 20
Criteria
Reference,
Spelling,
Grammar,
and
Mechanics
Level 4
Level 3
Level 2
Level 1
Criterion Score
5 points
4 points
3 points
0 points
/5
No issues with
spelling,
grammar, or
mechanics. The
reference
selected is
applicable to
the week’s
content. The
reference is at
the end of the
analysis, so the
instructor can
review the
Minor issues
with spelling,
grammar, or
mechanics. The
reference
selected is
applicable to
the week’s
content. The
reference does
not provide
either a title or
a link for the
article.
Several issues
with spelling,
grammar, or
mechanics. The
reference
selected is
applicable to
the week’s
content. The
reference is at
the end of the
analysis, but
the title is
mislabeled, or
Significant
issues with
spelling,
grammar, or
mechanics
make the
assignment
difficult to read
and
understand.
The reference
provided is not
applicable to
the week’s
reference.
Reference
follows current
APA format.
Reference
follows current
APA format.
the link is to an content. Or no
incorrect
reference was
reference.
provided.
Reference
follows current
APA format.
Total
/ 45
Overall Score
Level 4
Level 3
Level 2
Level 1
41 points minimum
38 points minimum
31 points minimum
0 points minimum
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