Discuss these topics:
à Microsoft – publicly traded company with at least 5 years of trading history and 5 sets of annual financial statements
- Is Microsoft a company where there is a separation between management and ownership? If so, how responsive is management to stockholders?
- What are other potential conflicts of interest with Microsoft?
- How does Microsoft interact with financial markets? How do markets get information on Microsoft?
- How does Microsoft view its social obligations and manage its image in society?
- Stockholder analysis: What is the breakdown of stockholders of Microsoft – insiders, individuals, and institutional?
- Balance sheet and cash flows
- Calculate liquidity, debt, and profitability rations and show their trends.
- What happened to Microsoft’s income, assets, debts, and cash flows during the periods and why?
- Risk and return
- What is the risk profile of Microsoft? How much overall risk? Where does this risk come from (market, firm, industry, or currency)? How is the risk profile changing?
- What return would you have earned investing in Microsoft’s stock? Would you have under or outperformed the market? How much of the performance can be attributed to Microsoft’s management?
- Measuring investment returns
- Is there a typical project for Microsoft? If yes, what does it look like in terms of life (long term or short term), investment needs and cash flow patterns?
- How good are the projects that the company has on its books currently?
- Are the projects in the future likely to look like the projects in the past?
- Strengths and weaknesses of Microsoft
- Suggestions for improvement for Microsoft