We need a project on company : Dupont
Requirements for the Reports
Multinational Corporations (MNC) are defined as firms that engage in some form of international business. Their managers conduct international financial management which involves international investing and financing decisions that are intended to maximize the value of the MNC. The goal of these managers is to maximize their firm’s value. The MNC objectives are to identify new markets to increase market share, invest excess cash, and ensure the soundness of any host country's financial market. As the CFO you are asked to analyze the strengths and risk of a potential new market and prepare a report to present to the Board. You will be given 8 questions to answer, and each question will represent a heading in your documents.
PART 1: Answer the first four questions. Each group member should respond to one question and put their name next to the response they provided. One person in the group will put all answers together following APA format (including references), using each question as a heading, and submit only one file. Remember that only ONE file should be submitted for the group.
PART 1 REPORT - Answer the following questions:
Question 1: Overview of the Corporation.
a. Provide an overview of the corporation to include but not limited to, when and how it was incorporated, by who, the board of directors, specific interest of the corporation, its headquarters, size, regions of operation and strength in the market.
b. The MNC wants to expand in new markets. Choose a foreign country (host country) and explain your reasons for choosing the host country. State clear reasons for your choice of host country. Do a profile of the country, to include its strengths and weaknesses
c. There are different ways to enter a foreign market. Discuss the different options and explain how you will enter the foreign market. (example, franchise, acquisition). Choose a location in the foreign country (city). Explain why you chose the city
d. Identify the gap in the market. Explain the potential for growth, is there some evidence that consumers in the foreign country will purchase your product?
e. Discuss the competitive advantage of the corporation.
Question 2: MNC Financing. The MNC will need financing to purchase the product or raw material new supplier.
a. Discuss the amount of financing needed.
b. Explain how you arrived at the amount and how it will be spent.
c. Explain the different options available for financing.
d. From your discussions from “c” choose the best option for your corporation and explain its advantages for the corporation
e. Will you seek financing in the domestic or foreign country, why, how, and where? Include the impact of interest rates and foreign exchange rate in your answer.
Question 3: Entering a new market comes with risk.
a. What are the financial risks of the host country?
b. What are the political and economic risks of the host country?
c. Discuss the types of foreign exchange exposures
d. Which of the foreign exchange exposures will impact the MNC? Explain why?
e. Research and study historical foreign exchange rates between home country and the host country for a minimum of 12-36 months. Analyze the trend. Home currency is the currency of your home country where your business is established, and the host country’s currency is the foreign currency. Please note that you must express the currency in terms of home currency per 1 unit of foreign currency. (For example, if Canada is your home country and US is the foreign country, the currency rate is expressed as 1 USD= 1.2685 CAD) ( https://www.oanda.com/fx-for-business/historical-rates), https://www.xe.com/currencycharts/ Explain how the home currency has changed over the period and how will it impact the MNC’s business.
Question 4. The CFO has noticed a constant increase in the stock market and sees this as a good opportunity to purchase a stock (your professor has assigned a stock you should monitor)
(a) Examine the corporation’s financials for the last two years and discuss the performance of the company. Include the following in your answer: sales revenue, profits, earning per share, debt ratios, liquidity ratios and gross margins.
(b) Discuss the reasons for changes in the stock price for the last 12 months. Finance.yahoo.com www.msn.com . Yahoo Finance, Google Finance, MarketWatch, Morningstar, Seeking Alpha, Financial Post, CNBC.com and Bloombergcan assist you to find the most current news about your corporation.
(c) Use the Gordon Growth Model to calculate the true value of the stock. Comment on the results.
(d) Make your recommendations to the Board, should the MNC purchase the stock you are asked to monitor, yes/no and explain your reasons include financial analysis.
(e) Apart from the stock you are asked to monitor, choose another stock that you would recommend to the CFO to purchased and explain the reason for your choice.
Your project submission will be graded according to the criteria below.
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1-9.99 |
10-11.99 |
12-13.99 |
14-15.99 |
16-20 |
Score |
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17.0% Content Questions |
One or more of the content questions are not addressed. |
All the content questions are addressed. No supporting detail is provided, and the paper lacks self-reflection. |
All the content questions are addressed. A cursory amount of supporting detail is provided. The self-reflection is trite and lacks insight. |
All the content questions are addressed. Adequate supporting detail is provided, though the self-reflection remains vague and generalized. |
All the content questions are addressed. Rich supporting detail and insightful self-reflection are provided. |
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1.0% Thesis Development and Purpose |
Paper lacks any discernible overall purpose or organizing claim. |
Thesis and/or main claim are insufficiently developed and/or vague; purpose is not clear. |
Thesis and/or main claim are apparent and appropriate to purpose. |
Thesis and/or main claim are clear and forecast the development of the paper. It is descriptive and reflective of the arguments and appropriate to the purpose. |
Thesis and/or main claim are comprehensive. The essence of the paper is contained within the thesis. Thesis statement makes the purpose of the paper clear. |
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1.0% Argument Logic and Construction |
Statement of purpose is not justified by the conclusion. The conclusion does not support the claim made. Argument is incoherent and uses non-credible sources. |
Sufficient justification of claims is lacking. Argument lacks consistent unity. There are obvious flaws in the logic. Some sources have questionable credibility |
Argument is orderly but may have a few inconsistencies. The argument presents minimal justification of claims. Argument logically, but not thoroughly, supports the purpose. Sources used are credible. Introduction and conclusion bracket the thesis. |
Argument shows logical progressions. Techniques of argumentation are evident. There is a smooth progression of claims from introduction to conclusion. Most sources are authoritative. |
Clear and convincing argument that presents a persuasive claim in a distinctive and compelling manner. All sources are authoritative |
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1.0% Mechanics of Writing (includes spelling, punctuation, grammar, language use) |
Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice and/or sentence construction are used. |
Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register), sentence structure, and/or word choice are present. |
Some mechanical errors or typos are present but are not overly distracting to the reader. Correct sentence structure and audience-appropriate language are used. |
Prose is largely free of mechanical errors, although a few may be present. A variety of sentence structures and effective figures of speech are used. |
Writer is clearly in command of standard, written, academic English. |
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Total Weight 20% |
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PART 2 is assignment #5. It is a group effort, and you will be graded accordingly. Please complete the team contract and peer review form. Members that do not/or contributes less will be graded different. Questions will be sent to you weekly starting week 8.