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Finman Assn

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Aarya Vardhan Shandilya
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11 views2 pages

Finman Assn

Uploaded by

Aarya Vardhan Shandilya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ECON / FIN F 315 – Group Assignment

The assignment consists of three questions. Submit only one Excel file covering the
analysis of all three questions.
The group assignment aims to assess the company's performance assigned to your
group. Each part should be completed meticulously, ensuring original work, as plagiarised (or
AI-generated) work will fetch zero marks. The assignment problem statement is open-ended;
hence, use your judgment and available data for analysis. The first sheet of the Excel file
should only contain the group members’ names and ID numbers. Ensure there are no errors
and include the details of only those group members who have contributed.
Rename all Excel sheets appropriately. Before presenting the analysis for each task,
provide all data you consulted for carrying out the analysis in separate sheets and
rename the sheets accordingly.
Name the Excel file as your group number.
Deadline: 27 Nov (EoD).

Part I: Beta and Cost of Capital (Weightage: 35%)


 Use historical data related to the company and market price movement and estimate
the cost of equity (using CAPM) for the firm. Apply different approaches to calculate
the cost of equity and summarise the variations in the cost of equity under alternative
approaches. It is open-ended how you interpret alternative approaches. Discuss
whether the beta adequately reflects the company's market risk.
Part II: Capital Structure and Debt Analysis (Weightage: 35%)
Using data from the last three financial years, analyse the company’s capital structure
in Excel. Focus on:
 The proportion of debt vs. equity and variation over time.
 The company’s ability to service its debt.
 Analyse how the capital structure has evolved and aligned with financing needs.
 If the company does not have any debt, analyse its dividend policy. If the company
does not pay any dividends, analyse its shareholder rewarding policy.
Provide recommendations on the optimal capital structure based on your findings (one
or two hundred words would be enough in the Excel sheet itself).
Part III: Financial Health Report Card (Weightage: 30%)
Prepare the company’s report card by ranking the company for each parameter on a
scale of 1 to 5, with 1 being strongly disagreed (i.e., unfavourable for the company) and 5
being strongly agreed (i.e., favourable for the company). The parameters are:
1. Is the company capable of handling its financial obligations without facing difficulties?
2. Does the company consistently provide returns to its shareholders compared to its
industry peers?
3. Does the company demonstrate stability in its stock price, showing lower volatility than
the overall market?
4. Does the company show promising signs of growth in revenue and earnings, indicating
strong future potential?
5. Does the company’s commitment to environmental and social initiatives positively impact
its long-term sustainability?
Provide justification and include tables, charts, graphs, etc., wherever required, to
substantiate the gradings. The comparison may be done on a time trend or with industry
benchmarks or peers.

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