My accounting teacher posted this assignment below. Can you please explain how t

Question

My accounting teacher posted this assignment below. Can you please explain how to do this assignment.

Based on what you have learned so far about financial statement analysis, do research and identify a stock you think is a good buy. The way to approach this is to identify an industry that has been doing very well. Then think if you feel anything might change to alter this performance. If not, identify a company in this industry that appears well run and poised for continued growth. Support your recommendation with the use of both profitability and liquidity ratios. Be sure and consider where the price of this stock is in terms of its life cycle. Good luck.

Explanation / Answer

Hi, i can give you some idea for your assignment

Search on google for those shares or stock that are highly rated in the market.Check its history to review its performance in the past 5 years i.e check whether share's value has grown up to double or more,if yes then it is performing good and also check its maximum value and compare it from current value.

If everything seems good then go to its share's company website and reviiew its management structure and changes thereon ,auditors report,its dividend payment of past years.

Also research about its performance in its industry angd go through balance sheet of the company to ascertain profitability and liquidity ratios.Also find out target price of shares and review experts recommendations on the future value of that company by searching on market forecast's site.

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