Business Finance Homework Help

1) Should Investors Buy or Short the stock?

2) What is the target price?

Required Items

COMPANY PEPSI: I WILL PROVIDE THE TEMPLATES — I will email them to you

1) Use at least 4 Bloomberg templates to make your case

2) Company Analysis (i.e. SWOT analysis)

3a) Cash Flow Analysis (Top Down Assumptions)

– How does the recent US China trade issues affect you?

– What is the appropriate beta to consider? (1Y, 3Y, 5Y, etc.)

3b) Cash Flow Analysis (Bottom Up Assumptions)

– Projects, revenues, costs (similar to Table 19.1)

– Appropriate discount rate (cost of capital)

– Sensitivity analysis (cash flows and discount rates – main assumptions can be sales growth rates and market betas)

– Compare assumptions with analyst assumptions

4) Chart that shows historical price

– Show every bond issuance (with arrows)

– How does the stock price perform -3 to +3 days after debt issuance? (Relative to market)

– What is the rating? yield? How is the yield compared to the benchmark?

– What was the debt ratio at the time of issuance? (Table 18.1 comparison)

-5) Chart that shows insider selling (at least over past 2 years)

– Bloomberg or SEC documents

– Stock price reaction when market becomes informed of insider selling

6) Chart that shows merger activity

– Stock price reaction to merger announcement

– In comparison to market returns

7 – please include bonds , options, and forecasting, and CDS

What I need from you: PEPSI CO

1) POWERPOINT PRESENTATION ( 18-25 slides with speaker notes 100-120 each slide) associated with your research

2) Report also due in Class (10+) pages

Let me know if you have any further questions