BAT4M Culminating Task: It’s Time to Invest!

30 % of Final Grade
Due: On or Before June 18, 2020

Mr. Edgeley is very cautious with his money and is not sure about investing it in the stock market! It is
your job to help give him the final push to become a shareholder in a publicly traded company on the
Toronto Stock Exchange.

You will be thoroughly researching two companies on the Toronto Stock Exchange and completing a
recommendation report advising Mr. Edgeley on which of the two companies to invest in.

Students must research different companies. To claim your two companies, please comment on the
assignment with the companies you will be covering. It will be done a first-come, first-serve basis.

PART 1: Research Report

For each company, You will:

• Research the background

• Create a graph for the stock price for each month in the last 3 years
• Complete a financial analysis (horizontal, vertical, and ratio)

Part 2: Recommendation Report

You will complete a thorough summary of findings of your chosen companies and make an overall
suggestion as to which of the two companies is best for Mr. Edgeley to invest in (no more than 3 pages,
double-spaced).
RESEARCH REPORT: Complete each section for both companies

A) Company background: A brief summary of EACH company:

• Stock exchange, Symbol, CEO, President, VP’s, Board of Directors

• History, Product(s), Location of Head Office, Mission statement

B) Graph of Stock Prices: Spreadsheet (Google Spreadsheets)

• Create a table tracking the stock prices and then plot (graph) the price of the shares on the last
day of each month for 3 years leading up to May 31, 2020

C) Financial Analysis (Use the two most recent annual financial statements)

i. Horizontal Analysis
Prepare horizontal analysis (2018, 2019) Using key financial statement figures.

ii. Vertical Analysis

Prepare component percentages (2019): Using key financial statement figures.

iii. Ratio Analysis

Prepare a chart with the two years’ data for the following ratios, calculations and answers:

Liquidity Ratios:

Working Capital Inventory turnover Receivables Turnover

Current Ratio Days Sales In Inventory Collection Period

Solvency Ratios:

Debts to Total Assets Equity to Total Assets

Profitability Ratios:

Gross Profit Margin Return on Assets Earnings Per Share Payout Ratio
Profit Margin Return on Equity Price Earnings Ratio
The chart of ratios MUST look like this:

*Acronyms are acceptable

Ratio 2018 2019

Calculation Answer Calcuation Answer
Liquidity
Working Capital = CA – CL $146,000 444,000 – = $139,000
= 325,000 – 305,000
179,000
Current Ratio = CA/CL

D) Bibliography

Provide a list of all websites used for any part of the project.

Part 2: RECOMMENDATION REPORT:

Discuss the significance of the corporate data. What sort of health is the company in? Use your
calculations to support your argument. Based on your research, which of the two companies would you
recommend investing in? Explain. (Max. 3 pages double-spaced)
 Fulford Academy
BAT4M
Culminating Task (30% of Final Grade)

Level 4 Level 3 Level 2 Level 1

Knowledge & 80-100% 70-79% 60-69% 50-59%
Understanding
Knowledge of Info provided on Info provided on Info provided on Info provided on
content (e.g. company company company background company
Accuracy of info background is background is is somewhat detailed background has
included from highly detailed and detailed and but contains some limited detail and
company research) accurate accurate inaccuracies accuracy
/5
Thinking
Use of critical/ Uses critical Uses critical Uses critical thinking Uses critical
thinking processes thinking with a high thinking with a with some thinking with a
(e.g. Analyzing & degree of considerable effectiveness in limited degree of
interpreting the data effectiveness in degree of determining the proper effectiveness in
to reach a determining the effectiveness in investment determining the
conclusion on the proper investment determining the proper investment
proper investment) proper
/10 investment
Communication
Expression & Graph of stock Graph of stock Graph of stock prices Graph of stock
organization of prices prices communicates the data prices
ideas and communicates the communicates with some communicates the
information (e.g. data with a high the data with a effectiveness data with limited
Clear expression of degree of considerable effectiveness
data in graph of effectiveness degree of
stock prices effectiveness
/5
Expression & Info and ideas Info and ideas Info and ideas Info and ideas
organization of expressed in the expressed in the expressed in the expressed in the
ideas and recommendation recommendation recommendation report recommendation
information (e.g. report are organized report are are organized with a report are organized
logical organization with a high degree organized with a some effectiveness with limited
of argument in of effectiveness considerable effectiveness
recommendation degree of
report) effectiveness
/5
Application
Application of Financial analysis Financial Financial analysis Financial analysis
knowledge and was highly detailed analysis contained some detail contained limited
skills (e.g. Formulas with the proper contained with some of the detail with some
used and formulas always considerable proper formulas used proper formulas
calculations made used and entirely detail with the but several calculation used but many
for financial accurate proper formulas errors were made calculation errors
analysis) calculations made used and only 1- were made
/10 2 calculation
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