Rules for Group work (BIB3.2: Corporate Finance):

Rules for Group work (BIB3.2: Corporate Finance):

Rules:

1. Each group consists of 4 students. The teacher will fix the group members in the first lecture.
2. The group task lies in preparing a written report on a listed multinational company’s corporate finance related facts/figures with analytical interpretation.
3. You are supposed to write your group work with the help of various definitions, explanations and critical views.

4. Inform the teacher about the company that you would be analyzing. After this deadline, no changes are allowed regarding the choice of company. Two groups are not allowed to have the same company. Class representative to coordinate the collection of the chosen companies.

6. The report should answer the following questions (not more than 2500 words!):
   1. What details you have about the ownership and Board of Directors of the company? Does it have any conflicts programmed in it between owners and managers?
   2. How is corporate governance organized in the company?
   3. How would you profile the company reference to its size, position in the market and profitability with the latest available data? Provide a comparative analysis of its position vis-à-vis its industry averages.
   4. How do you see the capital structure of this company? Is it over-leveraged when compared with relevant benchmarks?
   5. Interpret the developments in its Operating Cash Flow over the recent two years.
   6. What conclusions you get by looking at its current assets and liability? You may use various financial KPIs to give your conclusions.
   7. Do the details about this company give you any clue about its cost of capital or weighted average cost of capital? Are your able to calculate its average cost of capital over last two years?

7. Your report could have the following structure:
   1. Page 1 is the cover page with details of the team members (with photo), name of the company and its registered address.
   2. Pages 3 to 12 are for the details on the questions asked in Point 6.
   3. Page 11-12 is the bibliographical sources that you have used for your report.

8. Submit the report in a professional manner!!

9. For data search, Bloomberg terminal should be your base! However, you can draw upon:
   1. the published documents of the company, such as its annual report;
   2. investor relations section of the company’s website; and
   3. press coverage on this company
   4. direct contact with the company

10. Grading for group work will be based on the:

1. Coverage of latest information in the report (30%)
2. Suitable data compilation and interpretation (30%)
3. Comparative analysis of collected information over time and across external benchmarks (30%)
4. Professional format of the report (10%)