Topic: Corporate Finance Report

Pick a company from the following list:

No.Company NameSymbol
1AppleAAPL
2Amazon.comAMZN
3AlphabetGOOG
4Exxon MobilXOM
5Procter & GamblePG
6The Walt Disney CoDIS
7Verizon CommunicationsVZ
8PfizerPFE
9Coca-ColaKO
10NikeNKE

Financial Statements: Download the annual income statements, balance sheets, and cash flow statements for the last 5 fiscal years (2015-2019). You may Mergent from Hult library (https://www-mergentonline-com.hult.idm.oclc.org/basicsearch.php).

Analysis.

  1. Working Capital Policy. Analyze your company working capital policy. Calculate its operating cycle, cash conversion cycle & the invested capital over the study period. Describe and interpret any changes. Calculate your company’s opportunity cost of investment in working capital.

 If your company were to reduce the number of sales days in receivables by 10% (Note: roundup to the nearest fill day), explain the impact that would have on the working capital policy, the investment in working capital  & the opportunity cost/saving as a result of that decision.

Assume your company is negotiating a deal with its supplier. The deal calls for a reduction in the number of days in accounts payable by 5 days. Management is considering accepting if they get an additional 1% discount. Do you recommend that?

Assume your company sales are expected to grow at a rate equal to the average growth rate over the study period. Estimate how much external financing it will need and how that is going to impact its capital structure. Prepare a pro-forma income statement assuming the same growth rate.Explicitly state any assumptions you make.

  • Dividend Policy -Explain how your company returned cash to its shareholders over the study period? Has it paid dividends (cash, stock, etc.) or repurchased back shares? Given your firm’s characteristics,recommend a dividend policy (assume that they have excess cash). Explain why the policy you propose is appropriate.
  • Capital Structure – Analyze your company’s currentCapital Structure over the study period.Calculate the company’sleverage ratio using both market & book values. Also, calculate the company’s weighted average cost of capital

Assume your company is considering changing its capital structure. It plans to raise additional debt equal to 10% of current debt&use the proceeds to retire an equivalent amount of its equity. Assume it can borrow at the current cost of debt and it can retire equity at the current market price.Would you recommend it? Explain.

Type of service-Academic paper writing
Type of assignment-Essay
Subject-Finance
Pages / words2 / 1000
Academic level-Master’s
Paper format-APA
Line spacing-Single
Language style-UK English

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