1. Paper – This week I want you to do some research on the history of the two companies Yahoo & Google and then write a paper that tells me what you have learned. What do they have in common? How are the businesses different? This will take some deep digging. Go into the company web sites and search through their various filings with the SEC. How big are their stores (in sq. ft.)? What are their sales per square foot? Why are they different? How much per square foot do they pay in rent? Do they own the land? If they don’t do you see any evidence that their leases are below current market rates? (3-5 pages)
2. Paper – The Project ? Part Three
Now is the time to do the detailed Financial Analysis of our two companies in preparation for submitting your recommendations in Week Seven. Make sure you calculate all of the appropriate ratios called for in the Project and be sure to provide at least five years of ratios. Use the Financial Statements for the most recent fiscal year filed with the SEC and for earlier periods look at Value Line and at sites like Yahoo Finance. They can also generally be found on the company websites. Tell me what they mean to you. That will help you focus on the recommendation you are going to make in two weeks.
This should be a 6-9 page paper with detailed discussion and analysis and critical thought. If you just provide a cut and paste of financials as your answer, it will receive a failing grade. You will need to show that you truly understand the various ratios and financials by examining and detailing and contrasting the information. It is best to take at least 6 ratios or more and compare the two firms as well as compare the two firms to the industry.