You have just graduated from a University in a MBA program andhave secured a position as a fund manager for a well knowninvestment banking house. You have been given $300 million tomanage/invest. The fund is a pension/retirement fund so itsperspective is long term with moderate risk of loss of capital anda required return of 9% per annum. In order to reduce theinvestment risk you are instructed to make 12 investments of $25million dollars each. Your first assignment is to determine if thefund you are managing should invest $25 million dollars in thestock of the company you have selected for your firstanalysis/investment decision. Your decision to invest or not investwill be supported by the research paper and a 12 to15 minutepresentation to the Executive Committee of the Fund.
The company I have selected is Polaris Industries(PII).
Your analysis, based on the concepts , will address each of thefollowing:
1. Accounting Analysis: Do the accountingpractices adopted by the company generally reflect an accuratepicture of the economic performance of the company? Did yourresearch find any public announcements of restatement of earningsor other financial statements that would indicate that thefinancial statements may be of dubious value? This can be done byreviewing the company's 8K filings with the SEC (a mandatoryrequirement for this paper). These filings can generally be foundon the company's website under Investor Relations - SECfilings.
Use thi link to find the 8K form to do the accountinganalysis:
http://d1lge852tjjqow.cloudfront.net/CIK-0000931015%20/2399f983-43f9-4899-a0af-a7f5530399c5.pdf
2. Financial Analysis: Analyze financial ratiosand cash flow measures of the company relative to its historicalperformance. Do a 2 year look back (2014-2015) of historical datashould be sufficient and required. You must use at least 10 of theratios including all four of the profitability ratios.
You have just graduated from a University in a MBA program andhave secured a position as a fund manager for a well knowninvestment banking house. You have been given $300 million tomanage/invest. The fund is a pension/retirement fund so itsperspective is long term with moderate risk of loss of capital anda required return of 9% per annum. In order to reduce theinvestment risk you are instructed to make 12 investments of $25million dollars each. Your first assignment is to determine if thefund you are managing should invest $25 million dollars in thestock of the company you have selected for your firstanalysis/investment decision. Your decision to invest or not investwill be supported by the research paper and a 12 to15 minutepresentation to the Executive Committee of the Fund.
The company I have selected is Polaris Industries(PII).
Your analysis, based on the concepts , will address each of thefollowing:
1. Accounting Analysis: Do the accountingpractices adopted by the company generally reflect an accuratepicture of the economic performance of the company? Did yourresearch find any public announcements of restatement of earningsor other financial statements that would indicate that thefinancial statements may be of dubious value? This can be done byreviewing the company's 8K filings with the SEC (a mandatoryrequirement for this paper). These filings can generally be foundon the company's website under Investor Relations - SECfilings.
Use thi link to find the 8K form to do the accountinganalysis:
http://d1lge852tjjqow.cloudfront.net/CIK-0000931015%20/2399f983-43f9-4899-a0af-a7f5530399c5.pdf
2. Financial Analysis: Analyze financial ratiosand cash flow measures of the company relative to its historicalperformance. Do a 2 year look back (2014-2015) of historical datashould be sufficient and required. You must use at least 10 of theratios including all four of the profitability ratios.
