Please use the following guidelines:
1. Pick two publicly traded companies for two fiscal years. You will use www.sec.gov (Securities and Exchange Commission) website to obtain information regarding the annual reports and the related material.
2. These publicly traded companies should be in the same industry (Example – Manufacturing, Financial, Utilities, etc.).
3. On the SEC website students will look for the following fillings:
a. Annual Report (10-K Report)
b. Proxy Statements (DEF filings). These proxy statements are filed generally within 2 or 3 months after the Annual Report.
4. From the Annual (10-K) report you will provide the following information:
a. Company profile and history.
b. Financial information – Net Income, Total Assets, and other financial information for calculating various financial ratios. Students have a choice in selecting these ratios (use any 5 financial ratios). Students are required to use the same ratios for both companies.
c. You are required to report the current stock price for the companies.
d. Independent Auditor’s Report. You will determine the type of audit opinion presented in the Audit report (Unqualified, Qualified, Disclaimer, or Adverse).
5. From the Proxy (DEF) filings you will provide the following information:
a.You can find information related to Audit Fees and background information of the Key Officers of the company.
b. You will report any changes in the Auditor from the prior year and report any reason given for such a change.
6. After providing the aforementioned information you will finally provide their analysis regarding the better company to invest in.
7. If you use the information on the website, the citation should be noted.
8. Required number of pages: at least 6 pages