The paper itself will be a thorough analysis of one of the companies that is part of the Dow Jones Industrial average.

Your paper will include the following parts:

• Background on the company (2 points) Competitive analysis comparing the company to three peers (3 points)
• A discussion of the bond valuation of the company (4 points)
• An analysis of the stock valuation and comparison of the stock price to the actual stock price. (5 points)
  • Analysis using CAPM
  • Analysis using Dividend Growth
  • Analysis using Free Cash Flow Model
  • Analysis of current news of the company including:
    • Analyst opinion
    • Pending litigation
    • Perceived ratios you think are necessary in equity valuation
• An analysis of the annual report (3 points)
  • Discussion of manager compensation and how the incentives are aligned
  • Discussion of annual letter
• Your opinion of the company and prospect of future growth. (3 points)

The paper will be graded on completeness and correctness. Proper writing technique should be adhered to at all times. I can not stress how important it is to use quotations and give proper credit if you use direct quotes from other texts including, but not limited to, analyst analysis, the annual reports and/or news articles; failure to do so is a direct violation of the academic dishonesty policy will be met with consequences.

Note, for the debt and equity valuation, you do NOT need to use essay format. Brief elaboration of your calculations is adequate.