66. Report on a PLC
look at the paper i sent you and contact me please, because i have to pick a company first and tell the professor about the company i am going to write about, so just tell me if you can do such a paper and i will inform you about the company that should be write about. and tell me the price.
thanks
(( Report on a PLC of students choosing in 4 sections.
1. Executive summary and company description.
a. To include characteristics of the industry in which the company is based, growth, competition. Etc.
b. Company geographic reach, corporate organisation.
c. Quick overview of what’s to come including a summary of your conclusions.
2. Analysis of whether the company has added value over the past 5-10 years. Using one of the models introduced in class.
a. Discounted cash flow
b. Shareholder value analysis
c. Economic profit
d. EVA® Economic Value Added
This section will be supported by Exel work – spreadsheet files will be required as part of the project hand up.
Any and all assumptions made in this section should be clearly stated.
3. Discussion as to how the company has dealt with the agency problem, how they have handled decisions relating to capital structure and how they evaluate not only on-going investment decisions but larger scale transactions.
This section should incorporate the theory we have covered in class and the readings (this is after all a corporate finance theory course) and use evidence from company reports, analyst presentations and other third party sources as appropriate.
You should incorporate discussion of the executive renumeration system in this section.
4. Current valuation current market value versus comparators, DCF and historic values.
Does the current market value reflect the company’s success or failure in adding value?
Include a discussion of real options and how they might account for some of the current valuation of the company.