Analyse a Real Corporate Finance Decision
8 weeks · 0 milestones
Analyse a real, documented corporate finance decision — a major acquisition, a restructuring, a capital structure change, or a significant capital allocation choice — applying the relevant analytical frameworks (NPV, WACC, leverage analysis, etc.) and arriving at a reasoned position on whether the decision was correct and why. The case must be a real event with documented financial data, not a textbook example. Proof requires review and challenge by a finance professional who can confirm the framework application is correct and the position is analytically defensible.
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3 milestones
Select a real listed company and analyse its current capital structure using the Modigliani-Miller framework, trade-off theory, and pecking order theory. Calculate the company's WACC, debt-equity ratio, and interest coverage ratio. Assess whether the current capital structure appears optimal relative to industry norms.
Proof required
Submit: (a) a capital structure analysis (minimum 1,200 words) for the chosen company covering: current D/E ratio with historical trend (five years), WACC calculation with inputs sourced, interest coverage ratio, comparison against two named industry peers, and an assessment of whether the structure is appropriate under trade-off theory, and (b) links to the actual financial filings used.
What gets checked
- D/E ratio and interest coverage calculated from actual financial statements — not pulled from a data site without verification
- Trade-off theory assessment addresses the tax shield and financial distress costs explicitly
- Comparison against named peers with actual peer ratios