REQUIREMENT

Collect the financial statements in 3 continuous years from a listed company in Vietnam stocks market. Class monitor should be informed about all selected companies to make sure one company cannot be analysed by more than 1 student. Prepare an analysis report about these following financial aspects of the company:

1. Financial analysis (50 points)

Prepare trend-analysis for company's ratios. The computed ratios should measure those financial aspects of the company.

Short-term solvency or liquidity

Long-term solvency or financial leverage

Asset management or turnover

Profitability

Market value

Provide short review on those ratios using acceptable benchmark.

2. Dupont analysis (30 points)

Using Dupont analysis to identify the elements that affect ROE of the company in three selected years.

3. Capital structure and cost of capital (40 points)

Identify the changes in the company's capital structure and compute the company's cost of capital using CAPM or Dividend Growth Model.

4. Project's finance analysis

If the company has decided to bid on the contract to supply 150,000 units per year over the next 7 years. It will cost the company VND 10 billion to install the equipment necessary to start production. The cost will be depreciated straight-line to zero over the project's life. The company estimates that in 7 years, the equipment can be salvaged for VND 580 million. The fixed production cost will be VND 2.5 billion per year, and the variable costs should be VND 250,000 per unit. The company also need an initial investment in net working capital of VND 340 million. Using the cost of capital computed in question 3 as the company's required rate of return, what bid price should the company submit?

5. Short-term finance management

Analysing the short-term finance management by interpreting the changes in operating cycle, cash cycle, and cash management in the studied period.