END OF TERM ASSIGNMENT

FOR THE COURSE: CORPORATE FINANCE

Collect the financial statements in 3 continuous years from a listed company

in Vietnam stocks market. Class monitor should be informed about all selected
companies to make sure one company cannot be analysed by more than 1 student.
Prepare an analysis report about these following financial aspects of the company:
1. Financial analysis (50 points)
Prepare trend-analysis for company’s ratios. The computed ratios should
measure those financial aspects of the company.
• Short-term solvency or liquidity
• Long-term solvency or financial leverage
• Asset management or turnover
• Profitability
• Market value
Provide short review on those ratios using acceptable benchmark.
2. Dupont analysis (30 points)
Using Dupont analysis to identify the elements that affect ROE of the
company in three selected years.
3. Capital structure and cost of capital (40 points)
Identify the changes in the company’s capital structure and compute the
company’s cost of capital using CAPM or Dividend Growth Model.
4. Project’s finance analysis
If the company has decided to bid on the contract to supply 150,000 units
per year over the next 7 years. It will cost the company VND 10 billion to install
the equipment necessary to start production. The cost will be depreciated straight-
line to zero over the project’s life. The company estimates that in 7 years, the
equipment can be salvaged for VND 580 million. The fixed production cost will be
VND 2.5 billion per year, and the variable costs should be VND 250,000 per unit.
The company also need an initial investment in net working capital of VND 340
million. Using the cost of capital computed in question 3 as the company’s
required rate of return, what bid price should the company submit?
5. Short-term finance management
Analysing the short-term finance management by interpreting the changes in
operating cycle, cash cycle, and cash management in the studied period.
Deadline: 25/6/2020 in Teams
Other presentation requirements: MS Word with Times New Roman 13; 1.5
lines.

Lecturer

Vu Thi Loan