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These are a few questions that you might find useful in doing the project analysis and include the following. I. Financial Statements Analysis (45 Marks)
These are a few questions that you might find useful in doing the project analysis and include the following. I. Financial Statements Analysis (45 Marks) Ratios analysis Calculate the company's liquidity ratios. Comment on the company's liquidity position in 2021, 2022? How do these compare with the other company in your group? Calculate the company's activity ratios. How does your company's utilization of its assets stack up against the other firm chosen by your group? Calculate the company's' leverage ratios. How does your company compare within your group with respect to financial leverage? What can you conclude from these ratios? Calculate the 2021 and 2022 ratios of profitability and market ratios for the companies chosen and comment on the results. II. Estimating the stock value. (10 marks) Using the Discounted dividend model (DDM) estimate the intrinsic value of the firms' stocks using the following steps: Estimate the dividend growth rate using the actual growth rate for the last 5 years. Estimate the required rate of return using the CAPM formula (assume risk free rate is 5% - the average T bill rate over the last five years) Use the DDM to find the
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