Business Finance: Is there a separation between management and ownership within your chosen company?

Business Finance: Is there a separation between management and ownership within your chosen company?
July 22, 2020 Comments Off on Business Finance: Is there a separation between management and ownership within your chosen company? Uncategorized Assignment-help
Words: 345
Pages: 2
Subject: Uncategorized

You are an equity investment analyst in a major investment bank in the city of London. As part of your job at the bank, you regularly carry out financial and operational performance analysis of companies listed on the London and Global Stock Exchanges.Requirements Carry out a detailed analysis on a listed company. The company should be publicly traded and have at least a couple of years of trading history and two sets of annual financial statements. The companies can be listed in any market. The period of analysis should be for the last few years. Try to avoid a)Financial service firms (banks, insurance companies,investment banks) b) Money losing companies) c) Real estate investment trustsYour report should includeI. Corporate Governance Analysis Is there a separation between management and ownership within your chosen company? If so, how responsive is management to stockholders? What are the other potential conflicts of interest that you see in those firms? II. Financial Ratio Analysis Calculate appropriate financial ratios for your company over the last couple of years. How do your company ratios compare with industry averages? What do these ratios indicate for the operational and financial performance of your company? Would you consider investing in your company’s shares a good investment ?II. Risk and Return ¨ What return would you have earned investing in your company’s stock? Would you have under or outperformed the market? How much of the performance can be attributed to management? ¨How risky is your company’s equity? What is its cost of equity? How risky is your company’s debt? What is its cost of debt? What is your company’s current cost of capital?III. Dividend/Stock Buyback Policy How has your company returned cash to their owners? Has it paid dividends or bought back stock? How much cash has the firm accumulated over time? How does your company dividend policy compare to its peer group and to the rest of the market?Would you recommend a different dividend policy?Financial Report OutlineThe report should be structured as follows:1650 words (Appendices, references and tables do not count) a title pagea contents page showing all numbered sections or subsections and their page numbersan appropriate Introductionsections which have a heading and a numberpage numbersappendices which should amongs others contain all calculations in detailTHE COMPANY IS GOING TO BE AMAZON