Question
Prepare a comprehensive report about TAYLOR WIMPEY PLC(The data necessary for the analysis could be obtained through free online data sources like Yahoo Finance and
Prepare a comprehensive report about TAYLOR WIMPEY PLC(The data necessary for the analysis could be obtained through free online data sources like Yahoo Finance and Morning Star) All the relevant tables and figures should be contained and discussed in the main body of the report and not only in the appendix. The report should include the following sections:
Section 1. Present the profile of the firm. It should include brief description of the business and main shareholders. What is the breakdown of stockholders in your firm insiders, individuals and institutional? Who is the marginal investor in this stock? Present key financials of the firm. Pay special attention to firm market capitalization, stockholders equity (common stock and preferred stock), short-term and long-term debt, retained earnings, corporate tax rate and the payout ratio. Do the comparative analysis of firm-specific financial statistics with industry averages. (20 points)
Section 2. Analyse the current financing of the firm. Discuss what capital structure theory the data you observe are in line with. Evaluate how much your firms needs in recent years come from internal equity (retained earnings), external equity, and debt. Examine in qualitative and quantitative terms the advantages and disadvantages to your company of using debt, as opposed to equity. On the basis of this assessment, make a qualitative judgement of how much debt the firm should be using. Evaluate how much your firm has borrowed, relative to other firms in the sector. (40 points)
Section 3. Analyse the dividend policy of the firm. Has that firm ever paid out dividends? If so, is there a pattern to the dividends over time? How are these dividends related to earnings (assess at least three last years)? Given the current firm characteristics, do you think this firm should be paying more dividends, less dividends, or no dividends at all? (Think whether the firm easily convey information to financial market and whether it needs to use dividend policy as a signal.) How does the firm compare with other firms similar size, risk, in the same sector in terms of dividend policy?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started