What is this project?
This project provides an opportunity to get some hands-on
experience applying corporate finance theory and models to real firms.
In the process, you will get a chance to
(a) evaluate the risk profile of a firm, and examine the sources of risk.
(b) analyze its capital structure, and decide whether the firm is under or over leveraged.
(c) examine its dividend policy, and decide whether more or less should be paid in dividends
(d) value the firm
(e) restructure the firm, and revalue it.
How is the project structured?
- This is a group project. Each group must have
at least four individuals in it. The group size should not exceed
eight.
- Each person in the group will pick a company to
analyze. The company should be publicly traded and have at least
one year of trading history and one set of annual financial statements.
The company can be listed in any market.
- There should be a common theme in each group. The theme can be broadly
defined. For instance, an entertainment group can include movie companies,
television broadcasters and syndication companies. An automobile group
can include auto companies, suppliers to auto companies and even an auto
dealership. In putting together the group of companies, try to pick as
diverse a mix of companies as possible (small and large, domestic and foreign,
closely held and widely held….)
- Each person will be responsible for doing the
entire analysis for the company that he or she has chosen.
- At the end of the process, the group will write
one report for all the firms in the group. In this report, the
firms will be compared and contrasted and the results will be presented
as a whole rather than as five separate parts.
How will the project be graded?
- Each group will receive one grade and every group
member will receive the same grade.
- No attempt will be made to allow for intra-group
differences in effort.
Who polices the group?
- You do.
- In exceptional circumstances, I will step in and act as divorce
or marriage counselor as the case may be.
