Answers For Presentation Based Project on MNC Companies - Management Assignment
Assignment Task
You will not prepare any written report for this project.
Your presentation is based on this project. For presentation, prepare complete answers for all the questions and support your answers with graphs/tables etc.
Late submissions subject to deduction of 5% marks per day for five days.
For selecting stocks, you are allowed to select companies from the following segments only:-
Apparel, Health Care, Technology, Media
Provide a “very brief” introduction to all of your companies selected and discuss why you have chosen these companies.
1. Determine the percentage increase or decrease in each of your stock (calculate average closing price for two selected weeks) over the period of your investment/six weeks and report that percentage change using two values.
For example, average closing price in week of Feb = $140 and week of March is $134. You will take these values to calculate the percentage change.
In addition, offer the primary reason for this change in the stock price based on news about that stock or your own understanding.
To review the recent news about each of your stocks, you may click on finance.yahoo.
com and insert the ticker symbol for each firm. Recent news is provided at the bottom of the screen.
2. Determine whether the performance of each of your U.S.-based MNCs is driven by the U.S. market. For this comparison, compare the performance with S&P 500 index.
You should be able to understand the basics of S and P 500 before the presentation.
Repeat this task for each U.S.-based MNC that you selected. Explain the reason(s) for your stocks being driven/not driven by S&P500?
3. Determine whether your foreign stock prices are highly correlated. Determine whether your foreign stock’s performance is driven by the U.S. market (using the S&P 500 as a market proxy). Explain the reason(s) for your stocks being driven/not driven by S&P500?
4. Explain the trend of S and P 500 during this time period. Explain at least two reason(s) why S and P 500 has increased or decreased or remained constant in value.
5. Review annual reports and news about each of your U.S.-based MNCs to determine where it does most of its business and the foreign currency to which it is most exposed.
Determine whether your U.S.-based MNC’s stock performance is influenced by the exchange rate movements of the foreign currency (against the U.S. dollar) to which it is most exposed.
Go to an appropriate website (there is a list of websites at the end of this document) and find out exchange rates.
You can convert the foreign currency to which the MNC is most exposed into U.S. dollars and determine the exchange rate movements over the period (six weeks) in which you invested in the stock.
Provide your assessment of the relationship between the currency’s exchange rate movements and the performance of the stock over the investment period.
Do you see the same or different relationship between exchange rate and stock price during last year?
Attempt to explain the relationship that you just found.
6. Determine whether the stock performance of each of your foreign firms is influenced by the exchange rate movements of the firm’s local currency against the U.S. dollar.
You can convert the foreign currency of concern to U.S. dollars and determine the exchange rate movements over the period in which you invested in the stock.
Provide your assessment of the relationship between the currency’s exchange rate movements and the performance of the stock over the investment period.
Do you see the same or different relationship between exchange rate and stock price during last year?
Attempt to explain the relationship that you just found.
Helpful Sources/Websites:-
Yahoo Finance
Google Finance
MarketWatch
Morningstar
Seeking Alpha
Financial Post
CNBC.com
Bloomberg
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