ACC142 Financial Accounting #2: Assignment #2
ACC142 Financial Accounting #2: Assignment #2
Due : November 5/2023 11:59 PM (Sunday)
Note: Submit into the drobox online (Responses should be typed/ Figures can be hand draw ). Do not plagiarism it goes through plagiarism software! Submit as single PDF Document or Excel workbook. Refer to the excel sheet for your equity allocations (each student has 5 equities)!
Objective : To apply concepts taught in class (Lecture 3-5 ) to the questions posed below.
1) Create a data sheet using your assigned S&P500 equities and calculate the following metrics :
Collect information ( Equity Name, ticker, Year, CUSIP, price, Profit, preferred dividend, common shareholders equity, net income , total shareholders equity, Total assets , number of shares outstanding, short-term debt, long term debt, other fixed liabilities , dividend payment annual (common and preferred) for years 2022, 2021, 2020, 2019.
[ 20 marks]
Calculate the following formulas and ratios; (Total asset growth, ROE, ROA, Book value, PE ratio, Debt-to-total-equity ratio, has the company undergone any share splits; if so state the date and ratio)
[ 20 marks]
Compare and contrast each company . Explain which equity is the best investment based on the information you have analyzed. Use a detailed analysis with evidence to support your answer. [20 marks]
2)
Use weighted average cost (WAC) for the following:
Select 5 stocks (ones assigned from question 1) and create a portfolio using the weighted average cost method. Ignore dividends or stock splits.
You have a budget of $200,500 and you are buying for todays date and return.
Collect and assign the following information for each equity:
Equity Name, Ticker, Date, price, 10-year annualized return [5 marks]
What is the allocation per each equity in terms of dollars (assign your weights)?
[15 marks]
Create 2 portfolios, which portfolio has a higher return ? Support your answer using details. [15 marks]
3) Write 3 interesting facts/ lessons you have learnt in the course so far? [5 marks]
