Discuss capital structure of the company

Reference no: EM133398855 , Length: 3000 words

Corporate Financial Management

Selected Pearson plc company and stock for analysis.

Assessment:

Select a multinational company of your choice from the FTSE 100 index. Use the "Investor Relations" section of the website to download annual statements covering the most recent 5 year period. The report structure should be as follows:

Question 1. Evaluate and discuss the financial performance of the company over the period of analysis. As a minimum you must cover the following:
a. General review of the income statements
b. Working capital management policy
c. Dividend policy
d. Historical share price performance

Question 2. Estimate the share price of the company by means of the Dividend Discount and the Capital Asset Pricing models. For this task use the sensitivity analysis in relation to the variables which are hard to predict and/or accurately estimate. Relate the obtained result to the market estimate of the share price and comment on the reasons behind possible differences citing relevant theories.

Question 3. Discuss the capital structure of the company using the company's balance sheet in the context of the Modigliani and Miller theories on capital structure and prepare a constructive critique of these theories. Your discussion should involve various balance sheetitems such total equity, total debt, and other relevant information.

3,000 words

Reference no: EM133398855

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len3398855

4/24/2023 10:28:38 PM

I have selected Pearson plc company and stock for analysis. a Uk company in FTSE 100. Expecting 660 words in section a, 1320 words in section b, and 1320 words in section c. reference to used books such as Corporate Financial Management 6th edition, Glen Arnold and Deborah Lewis 2019.

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