CORPORATE FINANCE PROJECT AND REPORT: (20 Points)
Due Date: December 1, 2014 (Monday) Each student is required to perform a research on a Corporate Finance project that involves writing a report (25-30 pages) on a publicly traded company based on its available current financial data. The project involves four parts, namely, 1) The Background Analysis of a company and its Benchmark Competitor
2) The Comprehensive Financial Analysis of the same company against its competitor
3) The Computation of Cost of Capital of the same company, and
4) The Historical analysis of the Company Stock Price ALL CALCULATIONS FOR THE PROJECT SHOULD BE DONE IN EXCEL AND ALL EXCEL OUTPUTS HAVE TO BE SUBMITTED ALONG WITH THE PROJECT FOR EVALUATION. 1) The Background Analysis of a Company and its Benchmark Competitor:
The first part of the project involves the analysis of the company background as well the background information of its major competitor. The following information must be analyzed: A brief discussion on company products and the marketing strategies used (from company quarterly and annual publications and company websites).
The Board of directors and Management of both companies (can be obtained from the annual reports and proxy statements).
Top management compensation analysis of both companies (can be obtained from the company annual reports and proxy statements). 2) Comprehensive Financial Analysis of a company:
The second part of the project (using the tools and techniques given in Chapter 4 of the textbook) and its subsequent report is based on the Financial Ratio Analysis (Du Pont Chart Analysis) of a company and its available current financial data. The students are required to evaluate the company based on the trends in its financial ratios over time and evaluate them against the industry standard (a major competitor). Details, including the selection of the company (for time-series evaluation) and its competitor (for cross-section