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Required write 3500 words as comprehensive analytical report on TESCO plc using the below instructions: Topic Key Questions Corporate Governance Analysis Separation of Ownership and

Required write 3500 words as comprehensive analytical report on TESCO plc using the below instructions:

Topic

Key Questions

  1. Corporate Governance Analysis
  • Separation of Ownership and Management
  • Outlook of the company in the Financial Markets
  • Corporate Social Responsibility (CSR) and ESG standing
  1. Stockholder Analysis
  • Investors profile of the Company
  • Individual vs Institutional Investors
  • Domestic or Foreign
  • Small or Large
  • Any recent change in the investors profile
  1. Risk and Return
  • Risk profile of the company
  • Sources of Risk (Market, Industry, Currency or Firm Specific)
  • Changes in the risk profile of the company over the last decade
  • Investment performance of the company? Returns for Equity investors (Stock returns Vs. RoE)
  • Would you have under or out-performed the market?
  • How risky is this company's equity? Why? What is its cost of equity?
  • How risky is this company's debt? What is its cost of debt?
  • What is this company's current cost of capital?
  1. Optimal Capital Structure
  • Source of financing for the company in comparison with the sector
  • Optimal Debt Ratio using Cost of Capital Approach
  • Over or underleveraged?
  • What Debt ratio would you suggest for this company, given the real-world constraints. Explain the basis of your suggestion.
  • Compare Companys actual debt ratio to the sector and overall market?
  • Recommendations to achieve Optimal Capital Structure
  1. Dividend Policy
  • Dividend Policy Cash and stock dividends, Stock split and Repurchase
  • Comparison of Payout Policy with overall market and industry
  • Given the current financial condition of the company, do you recommend any change in the dividend policy
  1. Valuation
  • What type of cash flow (dividends, FCFE or FCFF) would you choose to discount for this firm?
  • What growth pattern (Stable, 2-stage, 3-stage) would you pick for this firm? How long will high growth last?
  • Value the overall Firm and Common Equity? Compare your valuation with the market value
  • What are key drivers of the Firm Value e.g. (Risk, Growth, leverage, profit margin etc)

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