Analyze companys capital structure and its cost of capital

Assignment Help Corporate Finance
Reference no: EM131527501

Corporate Financial Management Assignment

This coursework should be presented in the form of a Management Report which is divided into sections as follows: Title/Front Page (Students Name and Matriculation Number, Course, Name of the Module), Contents Table, Executive Summary, Coursework, Bibliography and References, Appendices.Coursework should bearound 3500 words in length (excluding appendices) and in typed format.

Coursework tasks:

1. Undertake a Risk Profile Analysis of the chosen company over at least the last 5 years. More specifically, using both accounting and market-based risk measures, estimate and explain the meaning, significance and sources of the key risks facing the company.

This analysis must cover the following lines of investigation:

i) Analysis of growth rate and asset turnover.
ii) Analysis of operating profit margin and business risk of the company.
iii) Analysis of the financial risk of the company.
iv) Analysis of the systematic risk of the company over the last 5 years.
v) Analysis of profitability ratios (ROA and ROE).
vi) In the light of the above analysis, highlight the key risks and what sort of actions management should take to manage it.

In this section, students are expected to undertake trend and comparative analysis of the key ratios that highlight any aspect of risk.

2. Analysis of the company's capital structure and its cost of capital.

3. Analysis of the company's value using;

a) Net Asset Value Approach
b) The Dividend Valuation Model
c) The Price-Earnings Ratio approach
d) Rappaport's Shareholder Value Model

4. Analysis of the company's dividend policy.

Text Books

The following ebooks are available in RGU Library.

Berk and DeMarzo, "Corporate Finance - The Core", 3rd edition, Pearson Education Inc.

Arnold, G., "Corporate Financial Management", 5th edition, Pearson

Lumby and Jones, "Corporate Finance, Theory and Practice" 8th edition, SOUTH-WESTERN CENGAGE Learning

Pike and Neale, "Corporate Finance and Investment, Decisions and strategies 6thedition, FT - Prentice Hall

Other Textbooks

Brealey, Myers and Allen, "Principles of Corporate Finance" 11th edition, McGraw Hill.

Reference no: EM131527501

Questions Cloud

Both systems are to be depreciated straight-line to zero : Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. HISC always needs a conveyor belt system;
Explain the impact technologies have on health care systems : Examine the impact technologies have on health care information systems.Describe the basic components of a strategic information system plan.
Determine amount of total revenue recorded in the ledger : On March 1, 2006, Tim Cochran established Star Realty, which completed the following transactions during the month.
Entity integrity vs referential integrity : What is your understanding of Entity Integrity Vs Referential Integrity. Illustrated with simple examples for ease of understanding of the concepts.
Analyze companys capital structure and its cost of capital : Analysis of the company's capital structure and its cost of capital. Highlight the key risks and what sort of actions management should take to manage it.
Find the leftmost even number : Please do it in Lisp, thanks a lot. Assume L is list of only integer numbers (Including zeros, or positive, or negative numbers, or could be an empty list).
Existing manual business functional-based transaction proces : DEFINE and DISCUSS the steps taken from an existing manual business functional-based transaction process to an improved, integrated, automated transactional.
Determine ebitda : The Digital Express Company disclosed a net income of $12,000 on revenues of $400,000 for fiscal year ending December 31, 2007. The company had $500,000 of 6%.
World war ii where america has taken on a policing role : Identify three to five (3-5) international incidents since World War II where America has taken on a policing role.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Determine the amount of mr. holts bonus

Determine the amount of Mr. Holt's bonus if the original computation of net present value were based on $90,000 versus $70,000 and Speculate about the long-term effect the bonus plan is likely to have on the company.

  Are consumers of rental-housing in prescott well-served

Are consumers of rental-housing in Prescott well-served by this price ceiling policy? Provide a careful economic analysis in support of your claim.

  Determine straight-line amortization

Breaker Company buy a new piece of machine on July 1, 2010 at a cost of $300,000. The machine is a Class 8 asset with a maximum CCA rate of 20 percent. Determine the straight-line amortization.

  Impact of our domestic product and income increase

Explain the impact of Our domestic product and income increase and Foreign domestic product and income decrease on our country's exports and imports:

  How many of the unidentified industries you can identify

Using any approach that you find helpful, see how many of the unidentified industries you can identify? Why does each industry have its particular pattern of asset use? What about financing sources? Profitability?

  Evaluate the amount of interest expense

Compute the amount of interest expense on these bonds for Year 6 (both six month periods) assuming that the firm uses the effective-interest method of amortizing bond premium or discount.

  What information must borrowers supply to lenders

What information must borrowers supply to lenders in the loan application process? Why is this information important to lenders?

  What costs are relevant to decision making

What costs are relevant to decision making? How do managers overcome the natural tendency to consider historical and sunk costs when evaluating business alternatives?

  Preparation of necessary closing entries form the given

preparation of necessary closing entries form the given adjusting transactions.client still more operates a private

  Why do many firms like to acquire other firms

What are the main sources of value generated in most mergers & acquisitions? Are all of them in the interest of society as a whole?

  Calculate present value of the note

On December 31, 2011 Green corporation completed consultation services & accepted in exchange a promissory note with a face price of 500,000, due date of December 31, 2014, & a stated rate of 8 percent, so calculate the present value of the note.

  Compute what is the npv of the project

What is the IRR of the project? What is the NPV of the project, based on the required rate of return of 12%?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd