Investment Strategies
For this assignment you will select a medium-sized private company and one that allows access to its financial statements. You will create investment strategies for this company based on a financial analysis of investment strategies applied in other companies and determine whether the company should stay private or go public. The decision will be based on how the company compares to other companies in the same industry. You will research industry best practices and selected ratios relevant to the organization. This research will inform the decision to remain private or go public and allow you to develop an argument based on your recommendation. Your argument will be based on information from the company’s financial statements compared to both industry averages and to at least one benchmark company. Before developing your recommendation and an argument for a determination, review the guidelines and regulations associated with going public by reading Information for Small Businesses.
Instructions
Write a 4–5 page paper in which you:
Describe a selected medium-sized private company, its operations, and its associated industry and evaluate these areas to determine whether the company should be publicly traded or not.
You need access to the financial statements of the selected company to complete this assessment.
Analyze four leading financial ratios and how each would affect investment strategies and a decision for a medium-sized private company to go public or stay private.
Evaluate the application of each of the four financial ratios to a selected medium-sized private company based on comparable or benchmark industry ratios.
Recommend the application of one of the four financial ratios to a selected medium-sized private company to inform a decision to go public or stay private supported with a justification for the recommendation.
Provide at least four reliable, relevant, peer-reviewed references, published within the last five years that support the paper’s claims.