Reference no: EM13346548
1. Which index is your company a member of? Explain the important characteristics of this index.
2. What is the current price of ordinary / common shares in your company? How has this evolved over the past 5-years? Select 1 item of news that may have affected systematic (market) risk and 1 item of news that may have affected unsystematic (firm-specific) risk; utilizing one of the models explained in class explain how the news events have moved the share price.
3. Choose a capital-raising that the company has undertaken in the previous five years. What factors would the company consider in choosing this option for capital-raising? Describe how this capital-raising would affect the price of existing securities.
4. Using the ratios covered in class, describe the capital structure of the company. Is this an appropriate capital structure for the company?
5. Use a ratio to make an informed decision as to whether the share price is expensive / inexpensive.
6. Pick 2 different fixed-income securities (bonds) issued by the company.
7. Explain the key differences between the securities (e.g. coupon, maturity).
8. How have the prices changed over the past 12-months and what factors have driven the changes?
9. Discuss the relationship between the price movements in the 2 bonds and the change in the price of ordinary shares.