Corporate Finance - Twitter Inc

CORPORATE FINANCE ASSIGNMENT

Twitter Inc has recently been the subject of events that will have an impact on their share price over the short-to-medium term. The task of this assignment is to write a brief research (analyst) report on Twitter Inc, with a recommendation to BUY or SELL the share of the chosen company.

1) Students should write a brief description of the chosen company’s key activities, target market and strategy. (150 words)

2) Each student will identify the key drivers of the company’s future sales and profits, these should be company specific and where relevant include potential impacts from the global economy, such as economic conditions and market trends. Students should give reasons for their forecasts. (1,000 words)

3) Each student should produce an individual 5 year share price performance chart including the share price of a competitor and the market performance with comments on their future expectations.

4) Each student will value the company using a two-stage discounted cash flow formula to arrive at their conclusion on whether to buy or sell the chosen company’s shares. (350 words)

Students should note that a DCF valuation is necessary in order to determine the BUY or SELL rating and that the predictions from their research must be put in their forecasts into their valuation. Students should look at analyst reports by investment banks as an indication of the tutor’s expectations.

The Annual Report is the authoritative document for any historical numerical data. Students can use Porter’s 5-Forces or SWOT analysis as a basis for determining the future sales and cash-flow forecasts. Charts and tables should be used as often as possible for numerical data, with text supporting the data.

Maximum Word count –Total 2,000 words.

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