Structure: The paper should be three to four pages; however, substantial content will be weighted more than length. The content should be in a 12-point Times Roman font.
Content: The paper must include the following five sections.
- The background of the company with a lifecycle analysis
- An analysis of Return on Equity
- The company’s projected future growth rate of earnings
- An analysis of its required rate of return using the CAPM measurement
- The company’s intrinsic value using the discount valuation techniques
Describe the competitive forces in the industry, including the company’s relative advantages and disadvantages to its competitors, and include a discussion on ROE as the basis for growth. This analysis should include demographic trends. Do not just state that “GE has grown at 10% in the past and will again in the future.” You should explain why you think that GE can grow 10% (for instance, because you think its products will appeal to a certain demographic that is growing at X%). Given the outcome of your research and technical analysis, you will provide a buy or sell recommendation and estimated price target.
