Order Number |
6457654778 |
Type of Project |
ESSAY |
Writer Level |
PHD VERIFIED |
Format |
APA |
Academic Sources |
10 |
Page Count |
3-12 PAGES |
Subject: Accounting
Topic: Corporate Finance & Crowd Funding
Paper details:
REVISION: The main issue to address are the following:
Because the future is uncertain, there is no perfect answer. So, you need to make your assessment of the company’s prospects as reliable and credible as possible by clearly stating and justifying your assumptions and grounding your analysis on accepted corporate finance theories and concepts. Always remember that this is not a strategy or marketing assignment, so focus mainly but not exclusively on the finance. Assignment Task Based on the systematic comparative appraisal of the selected firm’s historical performance: 1. Discuss how successful the selected firm has been at delivering value to its shareholders.
Analyse the historical total shareholder return (TSR) and economic value added (EVA) for the selected firm and its principal competitors (or appropriate benchmarks). Although a full ratio analysis for the company is not required and will not be assessed, you may find a ratio analysis supplemented by analysts’ and journalists’ reports on the company helpful in analyzing its past performance and as a guide to future performance. 2. Evaluate the current shareholder value of the selected firm. Apply discounted flow techniques (DCF) to the selected firm’s projected free cash flow (FCF) performance to determine its current shareholder value.
This is derived from the selected firm’s projected financial statements (Profit & Loss account, Balance Sheet, and Cash Flow statement). Your projections, including the firm’s terminal value, must be based on realistic and plausible assumptions that can be fully justified. The projection horizon should be a minimum of 5 years. The current shareholder value is obtained by discounting the future FCFs at the weighted average cost of capital (WACC), which should be estimated from the raw data. A full sensitivity analysis on the more significant assumptions should be conducted.
Additional information from various sources such as company annual reports of the selected firm and its competitors, analysts’ reports, news stories, industry trade publications, government and quasi-government reports on the industry should be accessed to guide your analysis and evaluation. Alternative methods for estimating the current shareholder value based on key financial ratios (P/E, P/B, and EV/EBITDA) and Net Asset Value should also be considered.
Significant differences between the estimates of shareholder value obtained from the above methods should be reconciled with the market shareholder value. A clear recommendation on the “correct” shareholder value for the selected firm with a clear justification should be made. Firm Selection Select a company listed on an internationally recognized and well-established Stock Exchange (such as London, New York, Tokyo, Mumbai).
It is important that historical share and stock index price data and financial statements for the selected firm and its competitors is available for a minimum of 5 years. It is preferable to select a firm operating in a single industry but not the financial industry since their accounts are more complicated and are regulated through central bank oversight. In your submission, you must also submit the supporting Excel (.xlsx) file showing your evaluations so please share the detailed calculation in XLS format for all ratios and sensitive analysis