[SOLVED] Financial Engineering to Enhance Shareholder Value
Create an 8-10 page report in which you examine a major public company and provide a recommendation on how shareholder value could be enhanced, with resulting impact on the firm’s capital structure and stock value. Introduction This portfolio work project will illustrate what potential financial strategies can be employed by firms to impact company valuation and how they should be financed. This is a relevant concept for both large and small companies. You will have a chance to apply the skills expected of an MBA graduate; from the financial management perspective, you should be able to: Utilize financial strategies that will increase the price of stock. Calculate WACC and capital structure. Evaluate how financial strategies impact the capital structure. This assessment requires you to examine a major public company and provide recommendations on how shareholder value could be enhanced, with resulting impact on the firms capital structure and stock value. You will estimate the firm’s current WACC. Scenario Fast forward to when you have successfully completed the MBA program. You are now a Chief Financial Officer of a large, publicly traded company at (go ahead and insert your dream company here). Using your dream company, conduct extensive research on the current situation of the company using resources like the Wall Street Journal, Bloomberg, GuruFocus, Yahoo Finance, EDGAR, and the Capella library. As the CFO, you have been given a project by the CEO and Board of Directors to prepare a report on ways to financially engineer the company to increase stock price. From the companys website, go to the financial section and examine the financial statements (income statement, balance sheet, and statement of cash flows) and 10K and 10Q reports, and conduct a financial ratio analysis including the following: current ratio, debt to equity ratio, return on equity (ROE) ratio, dividend yield, earnings per share (EPS or the last 4 quarters), price to earnings ratio (P/E), and market to book ratio. Compare these ratios to those of the company’s nearest competitor. Assume that the objective of upper management is to maximize shareholder value by increasing the price of the stock. Describe the subjective impacts (threats, opportunities, competitive edge) that are unique to the firm and its industry that you found in your research. Based on the ratio results and research, from the following list of ways to financially engineer an increase in stock price, evaluate each method, examine its pros and cons, and then select the best ways for the firm to increase the stock price. Be as specific as you can by using qualitative assessments without proprietary company information: Capital expendituresnew equipment, plant, machinery, marketing/advertising campaign, computer infrastructure (only choose if your research of the firm has discovered some specific opportunity here). Merger/acquisition of a competitor. Stock repurchases. Dividend policy changeincrease, decrease, stock split, stock dividend. Reduction of debt. Expansion into a new geographic market. Introduction of new products/services. Your Role You are the Chief Financial Officer of your selected company. Requirements The report you submit to the CEO should meet these expectations: Evaluate strategies used to increase stock prices and shareholder value. Analyze strategies to employ cash to potentially increase shareholder value and the impact on financial risk of the entity, such as capital expenditures, mergers/acquisitions, stock buybacks, dividend increases, reduction of debt, expansion into a new geographic area, and introduction of new projects. Analyze financial statements and ratio analysis to determine the optimal strategies. Describe the subjective impacts that are unique to the firm and its industry through ratio analysis of the financial statements and qualitative research. Relate the analysis to the strategies. Identify the pros and cons regarding each strategy. Use behavioral models and theories to support your analysis and evaluation. Determine the best strategies, and describe how earnings and stock price can be increased by these choices. Comment on how the efficient market hypothesis may impact stock price with the recommendations. Recommend the best strategies to gain the most optimal performance. Provide justification and rationale for your recommendation. Align your recommendation with analysis and data. Provide examples and analysis to defend recommended strategies. Connect the recommendation to methods and models of financing and investing. Evaluate how the recommendation will be financed and how it will impact the capital structure and the risk of the company and the WACC. Calculate the firms current WACC and capital structure (percentage of assets financed by liabilities versus percentage of assets financed by shareholder equity). Determine whether the firm has sufficient finances to fund your recommendation internally (with cash) or if it needs to raise funds externally. If external financing is required, decide between common stock and debt (bonds) and explain the rationale for your decision. Examine how your strategy recommendation will potentially impact WACC, capital structure, the overall risk of the company stock, and the effect on the stock price. Deliverable Format Report requirements: Ensure written communication is free of errors that detract from the overall message and quality. Use at least three scholarly resources. Your report should be between 8 and 10 pages. Use 12 point, Times New Roman. Related company standards: This report is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines (located in the MBA Program Resources), including single-spaced paragraphs. Use APA-formatted references.
Haven’t found relevant content or pressed for time? –Don’t worry, you have a team of Finance professionals to help you.
All you need to do is fill in the order form in the upper right corner and upload the files that are crucial for your assignment. Also, don’t forget to specify whether your assignment has to be based upon specific research, theory, method, or program. After that, we will assign the most suitable expert to complete your assignment. You can always chat with your expert and ask any questions you have during the working process.
Paperwritinghelp247 is here for any paper writing help you need!
Plagiarism-free Papers
We guarantee that every piece of work we produce is original. PaperWritingHelp247 has a team of native-speaking experts who are devoted to giving you the best paper writing help. Your work will be 100% original and on time since they always adhere to your instructions, use reputable sources, and quote them appropriately. The referencing styles used by our paper writing help experts are always per university guidelines..
Stay Anonymous
We are dedicated to delivering the safest online payment experience possible, guaranteed confidentiality. That is why we maintain complete confidentiality regarding our customers' orders. Customers' private information is always protected with the highest care and confidentiality. SSL data encryption ensures that all transactions with us are safe and secure, and we provide a variety of payment choices. You can trust Paperwritinghelp247 to keep your personal information private..
Wow Customer Support
Our online support chat is available around the clock to answer any queries about the ordering paper writing help procedure. Our customer service team cares about your satisfaction and will answer any questions you may have along the way. Our experts can assist you in any way possible, whether it's assisting you in putting together the essential points that you're struggling to convey, providing advice, or writing an entire essay.
Top Notch Quality Papers
If you need an essay urgently, or you have been in the “I need help with writing a paper” mode, you can always count on the expertise of our writers to deliver. You can relax knowing that you'll acquire a high-quality paper with our paper writing help services since their arguments are well-defined and presented. We offer help in writing papers that meet or exceed the standards and criteria of colleges and universities. That's why we have a quality assurance team to ensure that our papers help writing services are of the highest quality.
We can help with urgent tasks
Whether you need help writing papers in a matter of hours or a matter of days, we can meet your deadline. All our college paper writers are full-time writers, which means that they know their way around credible scholarly sources, and they can write a lot of pages in a short time. When you work with Paperwritinghelp24/7, you can count on us to meet every deadline. To meet your deadline, we work around the clock, even if that means staying up all night..
Pay a fair price
Our paper writing help service stands out from the competition because we put the needs of our customers first and charge lower high-quality paper writing help services. With a large array of papers, customers worldwide recognize the perfect combination of price and professionalism that we offer here at Paperwritinghelp247.com.