Subject - Applied Corporate Finance

Company to be worked on - Lowes.ca

you will pretend that you are a financial manager for a firm looking to invest excess cash into securities, which would be a significant investment for a long-term period. You will pick one company to research and complete the following assignment. Your company must be a public corporation with the following characteristics:

Has been public in the market for approximately five years or longer.

Has been playing a relatively consistent dividend over the last five years.

It is a North American company (thus more accessible for you to understand their financial statements).

Has some level of long-term debt, either as bonds, senior notes, or other long-term debt.

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Part 5 - Capital Structure (1 to 2 pages) of Lowes.ca

In this part, you will dive deeper into the capital structure of Lowes.ca and market performance. It should include, at the minimum, the following:

Describe the company's equity in detail. Is there one class of ordinary shares or several? Are there preferred shares? How many shares are outstanding?

Comment and describe the company's current dividend policy/payments and share buybacks.

What is the significant debt that the company has? Describe it in detail.

Estimate the debt cost based on information on long-term debt and interest rates in the financial statements.

Part 6 - Market Performance & Valuation of Lowes.ca (2 to 3 pages)

In this section, you will review the stock's performance over the last several years (3 to 5), comment on its performance, and the value of Lowes.ca (with some assumptions). This should include, at a minimum:

Calculations for market performance, including market-to-book value and price/earnings ratio.

Comment on the history of the company's stock performance (can relate to critical events in part 1 and their potential impact on stock price).

Value the company using a dividend discount model (make reasonable assumptions on growth and attempt to calculate the return); comment on your value versus the current stock price.

Compare the company's value to some of its peers using comparable ratios like price/earnings or market value to book value. Does it indicate if your company is undervalued, overvalued or fairly valued? Please explain.