Guidelines for the Project of Financial Management Students are required to make groups of 3-4members each. A sector will be allotted to each group and every member will chose one company each from the sector allotted to his/her group. Afterwards, students are required to perform the following tasks. 1. Collect stock prices data for 5 years and 3 years financial data of your company. 2. Calculate the beta of the company based on data collected from the stock market. 3. Calculate the unlevered beta of the company. 4. Calculate WACC of the company for last three years. 5. Calculate the firm's value of operations 6. Calculate the total value of the firm equity using the FCF approach and DDM. 7. Observe the changes in capital structure of the firm during last three years and explain the possible reasons of these changes. 8. Perform an analysis of the capital structure of the firm and asses in which year the company was at its optimal level of capital structure or it could not achieve it in any year. 9. Change the level of debt in the company (hypothetically) and recalculate WACC. You need to evaluate through this exercise if the current capital structure of the firm is an optimal one. You also need to show how EPS will be affected by these changes. Please keep all the key concepts in mind related to capital structure while doing this exercise. Write a detailed commentary to support your judgement. Why do you think that the current capital structure of the firm is optimal or not? Support your answer with logical arguments and graphs. Guidelines for the Project of Financial Management Students are required to make groups of 3-4members each. A sector will be allotted to each group and every member will chose one company each from the sector allotted to his/her group. Afterwards, students are required to perform the following tasks. 1. Collect stock prices data for 5 years and 3 years financial data of your company. 2. Calculate the beta of the company based on data collected from the stock market. 3. Calculate the unlevered beta of the company. 4. Calculate WACC of the company for last three years. 5. Calculate the firm's value of operations 6. Calculate the total value of the firm equity using the FCF approach and DDM. 7. Observe the changes in capital structure of the firm during last three years and explain the possible reasons of these changes. 8. Perform an analysis of the capital structure of the firm and asses in which year the company was at its optimal level of capital structure or it could not achieve it in any year. 9. Change the level of debt in the company (hypothetically) and recalculate WACC. You need to evaluate through this exercise if the current capital structure of the firm is an optimal one. You also need to show how EPS will be affected by these changes. Please keep all the key concepts in mind related to capital structure while doing this exercise. Write a detailed commentary to support your judgement. Why do you think that the current capital structure of the firm is optimal or not? Support your answer with logical arguments and graphs
