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Select Nestle India company. Search for this company's annual report using their website or other sources. The annual report of a listed company is a
Select Nestle India company. Search for this company's annual report using their website or other sources. The annual report of a listed company is a publicly available document and is generally accessible through the company's website. Based on the analysis of the annual report of the selected company, provide responses to the following questions: Question 1 (3 + 7) (a) Find out the last year's reported cash flow from operating activities (CFOA) for your chosen company. Assume that for the next six years, CFOA will grow at a constant growth rate of 15%. Calculate the CFOA for the next six years. (b) Find out the present value of future five-year CFOAs assuming a discount rate of 10%. (Approximate word limit: 150200) Question 2 (10) Identify the major Capex projects done by the chosen company in the last three years and evaluate their success or failure by applying capital budgeting techniques. (Approximate word limit: 150200) Question 3 (10 + 5 + 5) Describe the capital structure of the company and find out the following: (a) Cost of equity (b) Cost of debt (c) Weighted average cost of capital (WACC) Please use the after-tax cost of debt. (Approximate word limit:150-200) Question 4 (20) Analyze the operating and financial leverage of the company and compare it with its main competitor in the same industry. (Approximate word limit: 250300) Question 5 (10 + 10) (a) Analyze the dividend and share buyback policy for the chosen company and which mode is being more preferred by the financial managers. (b) What are the reasons you feel that the company is choosing one mode over the other (share buyback vs. dividend)? (Approximate word limit: 250300) Question 6 (10 + 10) (a) Analyze the trend of the working capital of the company over the past three years. (b) What are the areas where the firm has improved, and which areas are of concern? (Approximate word limit: 250300)
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