corporate finance
Task 1. Introduction of the selected industry/sector and companies. Explain the current trading environment of the industry and analyse recent three years financial performance of the selected companies. (20% of the grade)
Task 2. Capital Structure. Evaluate the capital structure for your chosen companies. Compare and critically analyse your findings across two companies. Please support your analysis with evidence and relevant theories. (30% of the grade)
Task 3. Dividend Policy. Report on what the dividend policy has been adopted for each company over the past years. Compare and critically analyse your findings across companies. Please support your analysis with evidence and relevant theories. (30% of the grade)
4. Presentation and compliance of the requirements. You should have clear and logical structure of your report, make good use of headings/subheadings, appropriate use of diagrams and tables, sources are correctly referenced, following all other the requirements and rules. (20% of the grade)
Word limit: Max 2500. You need to include your total word count (exclude reference and appendix)
on your cover page. If your work exceeds word limit, you will be penalised by 5% reduction from the
presentation criteria (see marking rubric below).
The data required for this coursework can be obtained from Bloomberg, Yahoo Finance, London
Stock Exchange and company annual reports.
If you fail to meet the deadline, penalties apply unless you have approved extension.
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Corporate Finance: An Analysis of Capital Structure and Dividend Policy in the Selected Industry
Introduction
In this report, we will analyze the capital structure and dividend policy of two companies operating in the selected industry. The selected industry is [mention the industry], and the chosen companies are [Company A] and [Company B]. We will evaluate their financial performance over the past three years, assess their capital structure, and compare their dividend policies. This analysis will provide valuable insights into the financial strategies adopted by these companies and their implications on shareholder value.
Trading Environment of the Industry
Before delving into the financial performance of the selected companies, it is essential to understand the current trading environment of the industry. [Provide an overview of the industry, including market size, growth prospects, and recent trends]. This information will provide context for evaluating the financial performance of Company A and Company B.
Financial Performance Analysis
To assess the financial performance of Company A and Company B, we will analyze their key financial metrics over the past three years. These metrics will include revenue growth, profitability, liquidity, and solvency ratios.
Revenue Growth
Revenue growth is a vital indicator of a company’s ability to generate sales and expand its market share. Over the past three years, Company A has experienced consistent revenue growth, with an average annual growth rate of X%. This growth can be attributed to [provide reasons such as new product launches or market expansion]. On the other hand, Company B has faced challenges in revenue growth, with a decline of X% in the most recent year. This decline can be attributed to [provide reasons such as increased competition or economic downturn].
Profitability
Profitability measures the ability of a company to generate profits from its operations. The profitability of Company A has been consistently strong over the past three years, with an average return on equity (ROE) of X% and a net profit margin of X%. These figures indicate efficient utilization of resources and effective cost management. In contrast, Company B has struggled to maintain profitability, with declining ROE and net profit margins. This decline can be attributed to [provide reasons such as increased expenses or pricing pressures].
Liquidity
Liquidity ratios assess a company’s ability to meet short-term obligations. Both Company A and Company B have maintained healthy liquidity positions over the past three years, with current ratios above 1. This indicates that they have sufficient current assets to cover their current liabilities. However, Company A has a higher current ratio, indicating a more robust liquidity position compared to Company B.
Solvency
Solvency ratios measure a company’s ability to meet long-term debt obligations. Company A has maintained a conservative capital structure, with a debt-to-equity ratio of X% and an interest coverage ratio of X%. These figures indicate that the company has a lower reliance on debt financing and can comfortably service its interest payments. In contrast, Company B has a higher debt-to-equity ratio and lower interest coverage ratio, suggesting higher financial risk.
Capital Structure Analysis
Next, we will evaluate the capital structure of Company A and Company B. The capital structure refers to the mix of debt and equity financing used by a company to fund its operations.
Debt-to-Equity Ratio
The debt-to-equity ratio measures the proportion of a company’s financing that comes from debt versus equity. Company A has maintained a conservative capital structure, with a debt-to-equity ratio of X%. This indicates that the company relies more on equity financing and has lower financial risk. On the other hand, Company B has a higher debt-to-equity ratio of X%, suggesting a higher reliance on debt financing.
Cost of Capital
The cost of capital is an essential consideration for companies when deciding on their capital structure. Company A has managed to maintain a lower cost of capital compared to Company B. This can be attributed to [provide reasons such as lower interest rates or better credit rating].
Dividend Policy Analysis
Lastly, we will analyze the dividend policies adopted by Company A and Company B. Dividend policy refers to how a company distributes its profits to shareholders in the form of dividends.
Dividend Yield
Dividend yield measures the return on investment from dividends relative to the stock’s price. Both companies have maintained consistent dividend yields over the past years. Company A has a dividend yield of X%, while Company B has a dividend yield of X%. These figures indicate [provide insights such as attractive dividend income or shareholder-friendly policy].
Dividend Payout Ratio
The dividend payout ratio measures the proportion of earnings paid out as dividends. Company A has a conservative dividend payout ratio of X%, indicating that it retains a significant portion of earnings for reinvestment or future growth. On the other hand, Company B has a higher dividend payout ratio of X%, suggesting that it prioritizes returning profits to shareholders.
Conclusion
In conclusion, this analysis has provided insights into the financial performance, capital structure, and dividend policies of Company A and Company B in the [mention industry] industry. While both companies have faced challenges in recent years, they have adopted different strategies to navigate these challenges. Company A has maintained strong financial performance, conservative capital structure, and a balanced dividend policy. On the other hand, Company B has faced profitability issues, higher financial risk due to its capital structure, but has prioritized returning profits to shareholders through higher dividend payouts. Understanding these strategies will assist investors in making informed decisions regarding investment in these companies.
