Report on a PLC Characteristics of the Industry 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 writing about. and tell me the price.
(( 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 organization.
Report on a PLC Characteristics of the Industry Conclusion
c. The 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 remuneration 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 valuations of the company.