A report evaluating a company’s financing decisions, company’s management of working capital and company’s owner return and control decisions (plus excel calculations) along with comparison with other two companies in the same industry
You are each required to select a different FTSE 250 company from the list that is provided on Blackboard.
Given the complexity of their financial statements and industry volatility, you are advised not to select financial services companies.
You need to submit a report evaluating the following areas in respect of your chosen company:
. (a) The company’s financing decisions. You should evaluate the short, medium and long-term sources and equity/debt valuations together with the gearing decisions of the firm and compare it with the empirical evidence. Maximum 30%.
. (b) The company’s management of working capital. Evaluate your selected company’s management of the three areas of working capital and contrast with relevant empirical literature. Maximum 30%.
. (c) The company’s owner return and control decisions. You should report on the company’s current dividend and possible M&A policy and contrast with the empirical evidence. Maximum 30%.
The quality and professionalism of the report will be provided with a maximum of 10%.
Your evaluation in the three areas should cover a period of 5 years (if full data is available) and should include comparisons with two other firms in the same industry. The choice of number of depth of analysis, years and companies in comparison is a judgement you are required to make.
You should refer to appropriate literature in each area evaluated. Credit will be given for the currency of the literature cited. Remember to cite all your sources in a reference page as part of your report.
You are required to explicitly consider how your selected company’s policies compare to the theoretical and empirical evidence identified as part of your literature search. To produce a good assignment you need to balance a practical evaluation of your selected company with a comprehensive review of the appropriate empirical literature. Overemphasis in any one area should be avoided.