Reference no: EM132489057

LO1. Demonstrate knowledge of time value of money, capital budgeting techniques, financial leverage, risk return relationship, and working capital management.

LO2. Apply financial models and techniques to make decisions

LO3. Research and Analyze capital investment proposals and capital structure

LO4. Evaluate investment proposals, financial performance, ethical issues and financial positions of firms

Choose any two companies working in the same industry/sector and listed in the UAE stock market. Download the financial statements of the selected companies for the years 2016 -2017 and complete the following tasks for both the companies over the period specified:

Question 1. Prepare a common-size and common-base year income statement and balance sheet and comment on them. The common -size should be for the year 2017.

Question 2. Using ratio analysis, compare and evaluate the financial performance of the companies.

Question 3. Analyze and compare the capital structure of the companies and give your observations on the impact of the capital structure on the profitability and liquidity (return and risk) of the two companies.

Notes:
a. Submit the list on names of your group with all group members' signatures a long with the names of companies you want to study before you start.
b. The companies chosen by any group should not be used by any other group.
c. For ease of comparison, present all your analysis in tables.
d. Write notes on how you made your calculations.
e. Your report should have an introduction, tables of analysis, comments, and a conclusion.
f. Attach the financial statements of the chosen companies.
g. Prepare a power point presentation of your work (6-10 slides).