You will demonstrate your competency in the term paper by evaluating whether or not
you believe a public company of your choice has a capital structure and financing
strategy that is appropriate for its business model. The company you will be evaluating is “Tesla Inc” Stock Ticker: TSLA
1) The first criterion is financial analysis, including ratio analysis and risk analysis. Are you evaluating this company from a macro-economic or big-picture perspective in which you look at broad-based economic and industry trends in relation to how the company will capitalize on those trends OR are you examining the company from an operating / on-ground perspective and it’s individual business prospects and financial outlook (with less importance accorded to
macro-trends)? Is it a high risk, low risk or medium risk situation? For example, a company that focuses on growth and reinvests all its profits into the core business typifies a growing, risktaking enterprise. An example of a conservative operation is a company that generates surplus cash [pays a dividend if publicly traded] and is noted for stable, steady growth
2) The second criterion is qualitative research. For example, determine if there is a future for
the company’s core business. If the company is in the midst of either a corporate or financial
restructuring or launching a new product, what are the strategic objectives for such measures?
What is the management style of the company?
3) The third criterion is financial research. You’ll need to find any research about the industry
your company is in from analyst recommendations found in Value Line, Dun & Bradstreet, Morningstar, etc. If you are studying a private business entity, then analyst reports on publicly traded comparable firms may provide an applicable standard of comparison by which you are able to arrive at your appraisal of the capital structure and financing for the business model you are studying.
4) The executive summary should begin with the conclusion (i.e., your findings). Is it
adequately financed? Why or why not? [If publicly traded, then you must include published industry norms regarding capital structure and financing mix between debt versus equity.] The rest of the paper should fully explain the reasons for your evaluation. A table of contents may also be included if the report is lengthy or has multiple sections and subheadings.
5) Calculations and support documentation should be included in the appendix, but relevant
statistical support (i.e., bottom line figures such as rates of return, valuation, and so forth)
should also be included in the body of the text.
Statistical tables, graphs, and charts can either be incorporated into the body of the text
or referenced in your text and placed in an Appendix
