Corporate Financial Management

Instructions on Assessment:

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

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. Payout policy
   d. Historical share price performance

(20 Marks)

2. Estimate the share price of the company by means of the Dividend Discount model and utilising Asset Pricing Model(s). 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.

(40 Marks)

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 sheet items such total equity, total debt, and other relevant information.

(40 marks)
(Total 100 Marks)
Mapping to Programme Goals and Objectives

This assessment will contribute directly to the following Postgraduate programme goals and objectives.

Goal One: Be independent, reflective critical thinkers.

1. Demonstrate awareness of their personal strengths and weaknesses through critical reflective practice.
2. Understand and challenge personal patterns of thinking and behaving.

Goal Two: Be culturally and ethically aware.

1. Demonstrate their ability to work in diverse groups and teams.
2. Reflect on their own ethical values.

Goal Three: Have developed leadership and management capability.

1. Demonstrate their personal contribution to team effectiveness.
2. Communicate complex issues effectively.
3. Demonstrate decision making and problem-solving skills.
4. Carry out presentations and lead discussions.

Goal Four: Have developed and applied knowledge of international business and management theory.

1. Acquire, interpret, and apply knowledge of international business, management, and organisational functions.

Goal Five: Have developed a range of research skills and project capabilities.

1. Plan and complete a major individual piece of research on a contemporary business, management, or leadership topic of their choice.
2. Demonstrate skills of analysis and synthesis in the application of research methods to the exploration of contemporary business issues.

Goal Six: Have developed specialist knowledge about the theory and practice of your programme of study.

1. Demonstrate specialist functional knowledge in relation to your programme of study.