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How does the Beta for Darden compare to the Beta for the Market?

How does the Beta for Darden compare to the Beta for the Market?

This is a Team assignment. Each team will turn in one copy and post on the Assignment #3 Discussion Board with the following heading: Your Country/Company – Financial Performance

Purpose: This is why you are doing this assignment

  1. This assignment will help you personalize this class for yourself and provide a future reference tool.
  2. This assignment will also provide useful information about the expansion options in a major city of your chosen country.
  3. This assignment will also provide useful information regarding the stock performance and capital structure of your chosen company.
  4. Team assignment #3 is worth 2.5% of your course grade. Each team will turn in one printed copy and post on the appropriate threads on Assignment #3 Your Country-Your Company Blog. Replace the term “Your Chosen Company” with your company name throughout this document.  Replace the term “Your Chosen Country” with your country name throughout this document.

How does the Beta for Darden compare to the Beta for the Market?

Process: This is how you will complete this assignment

  1. In Assignment #1, your team provided executives at your organization with a summary chart of Ten Things to know about your chosen country. Your team listed the capital of your chosen country and the three largest cities in your chosen country. In Assignment #1, your team provided executives at your organization with a summary chart of Ten Things to know about your chosen country. In Assignment #2, your team looked at expansion and briefly reviewed the materials related to financial performance chosen country.

 

  1.  (36 points) Now that you have selected a publicly traded hospitality company, your mentor asks you to compare the financial figures for your chosen company to the financial figures that you gathered in Team Assignment #2.  Please enter this information on the appropriate Excel worksheet in the Assign3Fig Excel workbook.  Print out the sheets and include in the hard copy of this report.
    1. Overview (13 points)
    2. Trading Information and Beta (7 points)
    3. Comparisons (5 points)
    4. Comparisons Big (4 points)
    5. Competitors7 (7 points) – Please ask me which competitors can be used.

 

  1.  (6 points) Competitors –
    1. (6 points) Based on the information that your team has included on the Competitors7 Excel worksheet:
  1. Did DRI outperform its competitors?
    1. Please include a 50 to 80-word discussion of why or why not you believe DRI outperformed its competitors.

 

  1. Did Your Chosen Company outperform its competitors?
    1. Please include a 50 to 80-word discussion of why or why not you believe Your Chosen Company outperformed its competitors.

 

  • Did MAR outperform its competitors?
    1. Please include a 50 to 80-word discussion of why or why not you believe MAR outperformed its competitors

 

 

  1. (19 points total) To learn about Beta and the Dow Jones Industrial Average: Date you looked up Beta
    1. Read pages that discuss Beta in Chapter 11 of our Essentials textbook.
    2. Visit the Investopedia page “Using Beta to Understand a Stock’s Risk”
  1. You might also find it useful to view this short video
  2. Here is another useful video
    1. Read this article which discusses the advantages and disadvantages of using the Beta Coefficient

 

    1. (6 points) Now that you have read about Beta in the textbook and online, please discuss the following in 50 to 80 words for each company: Darden, Your Chosen Company and Marriott. Please discuss potential returns and potential losses for Darden, Your Chosen Company, and Marriott. Please refer to the TradingBeta7 worksheet
  1. How does the Beta for Darden compare to the Beta for the Market?
    1. What does this mean to a potential investor?

 

  1. How does the Beta for Marriott compare to the Beta for the Market?
    1. What does this mean to a potential investor?

 

  • How does the Beta for Your Chosen Company compare to the Market?
    1. What does this mean to a potential investor?

 

    1. (4 points) Read the information on the Dow Jones Industrial Average (DJIA) on the Wikipedia web site –
  1. (1 point) – From an investor’s viewpoint briefly discuss one advantage of following the Dow Jones Industrial Average (DJIA) (in 50 to 80 words)

 

  1. (1 point) – From an investor’s viewpoint briefly discuss one disadvantage of following the Dow Jones Industrial Average (DJIA) (in 50 to 80 words)

 

 

  • (1 point) – From an investor’s viewpoint briefly discuss why the upward movement of the Dow Jones Industrial Average (DJIA) may be viewed as a positive (in 50 to 80 words)

 

  1. (1 point) – From an investor’s viewpoint briefly discuss why the downward movement of the Dow Jones Industrial Average (DJIA) may be viewed as a negative (in 50 to 80 words)

 

 

    1. (9 points) Analysis – Please refer to the TradingBeta7, Comparisons5, and CompBig4 worksheets of the Excel worksheet in the Assign3Fig Excel workbook.
  1. (1.5 points) What does the difference in the percentage change in the stock price for Darden as compared to the percentage changes for the Dow Jones Industrial Average, NASDAQ, and S&P 500 for the same time period indicate to you? (In 50 to 80 words)

 

  1. (1.5 points) Is this percentage change reflective of the Beta for Darden? Why or Why not? (In 50 to 80 words)

 

  1. (1.5 points) What does the difference in the percentage change in the stock price for Marriott as compared to the percentage changes for the Dow Jones Industrial Average, NASDAQ, and S&P 500 for the same time period indicate to you? (In 50 to 80 words)

 

  1. (1.5 points) Is this percentage change reflective of the Beta for Marriott? Why or Why not? (In 50 to 80 words)

 

  • (1.5 points) What does the difference in the percentage change in the stock price for Your Chosen Company as compared to the percentage changes for the Dow Jones Industrial Average, NASDAQ, and S&P 500 for the same time period indicate to you? (In 50 to 80 words)

 

  1. (1.5 points) Is this percentage change reflective of the Beta for Your Chosen Company? Why or Why not? (In 50 to 80 words)

 

  1. (16 points) Visit the following web site, type in your company name or stock ticker symbol, and use the pull- down menu to the right to indicate that you are looking for Bond information, then click on Go –
    1.  (8 points) Corporate Bonds (hint: if the price is less than 100, the bond is selling at a Discount, if the price = 100, the bond is selling at Face Value, and if the price is greater than 100, the bond is selling at a Premium)  or
  1. (2 points) Does Darden issue Bonds? Yes or No (circle one), If Yes, how many?
    1. Are the Darden Bonds selling at a Premium, Face Value, Discount, or Does Not Have Bonds Outstanding? (Circle one)

 

  1. (2 points) Does Marriott issue Bonds? Yes or No (Circle one), If Yes, how many?
    1. Are the Marriott Bonds selling at a Premium, Face Value, Discount, or Does Not Have Bonds Outstanding? (Circle one)

 

  • You may find it helpful to review the definition of Yield To Maturity on the following web page before you look up the Bond information on Your Chosen Company.
  1. You may also want to visit the investors’ section of the web site for Your Chosen Company. Typically, corporate bonds are discussed in the footnotes under outstanding liabilities or debt.
  2. (2 points) Does Your Chosen Company issue Bonds? Yes or No (Circle one)
    1. If Your Chosen Company does issue Bonds, how many?
    2. Is each Bond for Your Chosen Company selling at a Premium, Face Value, Discount, or Does Not Have Bonds Outstanding? (Circle one)
  3. (2 points) Three questions about corporate bonds: (in 50 to 80 words) –
    1. What does it mean to an investor when a bond sells at a Premium?
    2. Please review the information in Chapter 6 on Bond Ratings. On the bond website, you will notice that Moody, S&P, and Fitch have rated the bonds. Overall, which company had the higher bond ratings? Darden or Marriott? (Circle one)
    3. What surprised you about this information?

 

 

    1.  (8 points) Government Bonds – Visit the following web sites
  1. : Individual
    1. Briefly in two or three sentences describe one thing that you learned about Government Bonds for Individual use. (In 50 to 80 words)
    2. Briefly in two or three sentences describe one thing that surprised you about bonds. (In 50 to 80 words)
    1. Briefly in two or three sentences describe one thing you learned about Treasury Securities for Financial Institutions from this web site. (In 50 to 80 words)
    2. Briefly in two or three sentences describe one thing that surprised you on this web site. (In 50 to 80 words)

 

 

  1.  (13 points) – Covid 19 – Your Chosen Country/Your Chosen City/Your Chosen Company
    1. (5 points) – Describe the current Covid-19 status in your chosen country?
    2. (4 points)  – Describe the current Covid-19 status in your chosen city?
    3. (4 points) – Describe how your chosen company has responded to the Covid-19 situation in the United States.  Hint:  Please review recent articles on Yahoo Finance.

 

  1. (5 points) – Summary
    1. (5 points) A potential investor has come to your team and indicated that she would like to invest in either a hospitality foodservice company (Darden or Your Chosen Company) or a hospitality lodging/services company (Marriott or Your Chosen Company).
      If your team has selected a hospitality foodservice company you will base your recommendations on Darden or Your Chosen Company.

      If your team has selected a hospitality lodging/services company you will base your recommendations on Marriott or Your Chosen Company

      .

      Based on the information that you have collected, your analysis and team discussions, please discuss why the potential investor should or should not invest.

 

How does the Beta for Darden compare to the Beta for the Market?

 

(Required: Please include a comparison table of the financial figures: Profit Margin, Operating Margin, ROA, ROE as a part of your discussion) Please include at least two reasons to support your recommendation. (In 150 to 300 words)

 

 

 

 

  • Please post the completed Team Assignment #3 on the Assignment #3 Discussion Board Your Country/Company – Financial Performance
  • By 8 pm on Friday, October 23, 2020

 

 

Evaluation: This is how the assignment will be graded

  1. (1 point) Was there a cover page?  Did it include:
    1. List of the full names of the team members in alphabetical order by last name,
    2. The name of your chosen country,
    3. The name of your chosen city,
    4. The name of your chosen company, and,
    5. The course/section number?
  2. (36 points) Were the questions for question #2 of the Financial Overview Summary Chart completed?
  3. (6 points) Were the questions for question #3 (Competitors) answered?
  4. (19 points) Were the questions for question #4 (Beta & DJIA) answered?
  5. (16 points) Were the questions for question #5 (Bonds) answered?
  6. (13 points)  Were the questions for question #6 (Covid-19) answered?
  7. (5 points) Were the questions for question #7 (Summary) answered?
  8. (4 points) Were there any typographical errors?

 

Team Planning Chart – This Team Planning Chart is worth 1 point of your total score.

Due by 8 pm on Friday, October 23, 2020

 

First Name Task Assigned 1- 6 Plus Final Copy Date Draft submitted to other team members Time invested in review and revisions by team member Completion Date/
Who Completed it
         
         
         
         
         

File name: F20assignment3r.doc

 

How does the Beta for Darden compare to the Beta for the Market?

 

 

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