final report of finance

FINAL REPORT & PRESENTATION FOR YOUR FINC 601 TERM PROJECT

This assignment requires your team to select a pair of companies listed in a U.S. or Canadian major stock exchange, and then conduct a comprehensive analysis of these two companies in a M&A scenario regarding three modules described in the course outline, namely, valuing financial market instruments, financial analysis and corporate valuation, and mergers and capital structure decisions. Your team is required to write a written report as financial analysts, and to prepare a brief oral presentation (12-15 min length) outlining the key aspects of your report.

Requirements for Final Report

 The Final Report should be typed in Arial 12 font with double line spacing

 The report should not exceed 12 pages.

 I encourage you to include graphs/tables in the body of the report. Any tables that are not suited for inclusion in the body should be included as an appendix with a clear reference in the body of the report to the appropriate appendix.

Suggested Format of the Final Report

Your report should contain the following sections:

Cover Page

 At least, the company names and the names of team members should be included.

EXECUTIVE SUMMARY

 Illustrate your main findings/conclusions

 Approximately 1 page in length

COMPANY OVERVIEW

 A brief introduction of selected companies

 A brief introduction of the announced M&A deal terms

 Opportunities and challenges the companies are facing in the coming 2-5 years

 Approximately 1-2 pages in length

COMPANY ANALYSIS

 Conducting financial statement analysis for both companies

 Estimating intrinsic stock value for both companies by using corporate valuation models (e.g.: dividend growth model, total payout model, and market multiples model among others)

 Analyzing capital structures and weighted average cost of capital for both companies

 Applying the APV Model to estimate the bid price for the target firm

 For this section, show detailed information about data, assumptions, methodologies and models applied

 Approximately 6-9 pages in length