FINC 312 Project

Prof Jasim Al-Ajmi

IOLs: A3, D2, D4

Project = 15 (including Excel) marks

Presentation= 5 marks

Assignment Task Produce a financial analysis of a chosen S&P 500 company, in the role of an
advisor to an investment bank.

Size of the group: 4-5 students.

Assignment Details and Instructions.

You work for the Ahlia Bank. You have been asked to appraise the possibility of making a small-
scale investment in Saudi Basic Industries Corporation (SABIC). Do not choose a bank or financial
institution. You are to present your findings at a meeting of the board, and provide a report to
evidence your conclusions. This semester the case is the American company is Ford.

Your report should contain the following:

1. An introduction to your chosen company, and the reason why this company has been chosen
(approx. 250 words);
2. Critical analysis of the performance of your chosen company, comparing the most recent
financial statements to the prior year, and a chosen competitor (approx. 500 words);
3. Critical analysis of the cash flows of your chosen company, comparing the most recent
financial statements to the prior year, and a chosen competitor (approx. 500 words);
4. Critical analysis of reasons for changes in investor information, and movements in share price
of your chosen company since the date of the latest financial statements, until 30th November
2019 (approx. 500 words); and
5. A conclusion on whether you would recommend investment in your chosen company (approx.
250 words)

You are expected to use the excel file that is uploaded in the model to perform most of the needed
calculation.

The report should be accompanied by PowerPoint slides and excel file for your board presentation
(maximum of 5 slides).

Your report will be 2,000 words maximum (excluding references and ratio appendix), and all
references must be made using standard Harvard referencing.

Your assignment must be submitted by Sunday 12th July 2020 at 9.00pm. Submissions after this
date will not be marked.
Submission Instructions: Submit on Moodle via turnitin

1
 Section Max Marks 0 10% 30% 50% 70% 90% 10%
Introduction 10 No Badly Basic but Clear and Thorough and Insightful Innovative
introduction designed and limited accurate critical introduction, and
poorly introduction introduction introduction meticulously meticulous
planned planned introduction,
introduction which
challenges the
limits of
established
knowledge
Performance 30 No analysis of Analysis of Analysis of Analysis of Analysis of Analysis of Analysis of
performance performance performance performance performance performance performance
is approached contains is presented contains clear is carried out is evaluated
haltingly or some with critical with insightful and solved
uncritically. reference to reference to reference to critical with original
Analysis theory and theory and theory and reference to and insightful
inadequate, practice. practice. practice. theory and reference to
with an Limited Analysis Analysis practice. theory and
inappropriate critical carried out carried out Assignment is practice.
range of reflection accurately thoroughly innovative, Assignment is
primary and shown. using an gathering and has been innovative,
secondary Appropriate appropriate relevant designed, and has been
sources. range of range of information planned and designed,
Outcomes are primary and primary and from primary carried out planned and
partially secondary secondary and meticulously, carried out
evaluated. sources used, sources, with secondary obtaining meticulously,
with outcomes sources. information obtaining
accurate are evaluated Outcomes from an information
outcomes thoroughly appropriate from an
and critically. range of appropriate

2
 evaluated primary and range of
carefully. secondary primary and
sources, and secondary
contains sources,
critical challenging
insight. the limits of
established
knowledge.
Cash flows 30 No analysis of Analysis of Analysis of Analysis of Analysis of Analysis of Analysis of
cash flows cash flows is cash flows cash flows is cash flows cash flows is cash flows is
approached contains presented contains clear carried out evaluated and
haltingly or some with critical with insightful solved with
uncritically. reference to reference to reference to critical original and
Analysis theory and theory and theory and reference to insightful
inadequate, practice. practice. practice. theory and reference to
with an Limited Analysis Analysis practice. theory and
inappropriate critical carried out carried out Assignment is practice.
range of reflection accurately thoroughly innovative, Assignment is
primary and shown. using an gathering and has been innovative,
secondary Appropriate appropriate relevant designed, and has been
sources. range of range of information planned and designed,
Outcomes are primary and primary and from primary carried out planned and
partially secondary secondary and meticulously, carried out
evaluated. sources used, sources, with secondary obtaining meticulously,
with accurate outcomes sources. information obtaining
outcomes evaluated Outcomes are from an information
carefully. evaluated appropriate from an
thoroughly range of appropriate
and critically. primary and range of
secondary primary and
sources, and secondary
contains sources,

3
 critical challenging
insight. the limits of
established
knowledge.
Investor 20 No analysis of Analysis of Analysis of Analysis of Analysis of Analysis of Analysis of
information investor investor investor investor investor investor investor
and share information information information information information information information
price and share and share and share and share and share and share and share
movements price price price price price price price
(Refer to the movements movements is movements movements is movements movements is movements is
excel file) approached contains presented contains clear carried out evaluated and
haltingly or some with critical with insightful solved with
uncritically. reference to reference to reference to critical original and
Analysis theory and theory and theory and reference to insightful
inadequate, practice. practice. practice. theory and reference to
with an Limited Analysis Analysis practice. theory and
inappropriate critical carried out carried out Assignment is practice.
range of reflection accurately thoroughly innovative, Assignment is
primary and shown. using an gathering and has been innovative,
secondary Appropriate appropriate relevant designed, and has been
sources. range of range of information planned and designed,
Outcomes are primary and primary and from primary carried out planned and
partially secondary secondary and meticulously carried out
evaluated. sources sources, secondary obtaining meticulously,
used, with with sources. information obtaining
accurate outcomes Outcomes are from an information
outcomes evaluated evaluated appropriate from an
carefully. thoroughly range of appropriate
and critically. primary and range of
secondary primary and
sources, and secondary
contains sources,

4
 critical challenging
insight. the limits of
established
knowledge.
Conclusion 10 No conclusion Inadequate Conclusion Conclusion Conclusion Conclusion Conclusion
conclusion contains analyses with analyses with analyses with analyses with
containing no some reference to a clear critical insightful original and
critical evidence of theory and reference to critical insightful
reflection. critical practice. theory and reference to reference to
reflection. practice. theory and theory and
practice practice
PowerPoint 10 No slides/ Work Presentation Work Work is is Work is Work is
slides/ unacceptable presented contains a clearly
presented presented presented
presentation presentation haltingly using range of presented to
coherently to fluently to the creatively and
(video) or limited strategies and the selected
the selected selected fluently to the
range of media. audience with
audience audience selected
strategies and a range of
using a range using a range audience
media. strategies and
of of strategies using a range
media.
strategies and and media. of strategies
media. and media.
Excel file 10 No No formulas Several Minor errors Most Functionally Professionally
submission/ are used errors in in correct formulas done but not presented
error in the formula formulas used are Professionally
price/ calculations used. correct presented
formulas are applicable
not used formulas as
properly required

5
Grading
Introduction
Business description Not Covered Partially Covered Covered related to the
(what the company 0point 0.5 point overall content of the
does? project.
1point
Corporate governance Not Covered Partially Covered Covered related to the
0 point 0.5 point overall content of the
project.
1 point
Market(s) (where the Not Covered Partially Covered Covered related to the
company sells its 0point 1point overall content of the
products/services) project.
2 points
Strengths of the Not Covered Partially Covered Covered related to the
company 0point 1point overall content of the
project.
2 points
Weaknesses of the Not Covered Partially Covered Covered related to the
company 0point 1point overall content of the
project.
2 points
Future prospects Not Covered Partially Covered Covered related to the
0point 1point overall content of the
project.
2 points

Performance
Profitability Not Covered Partially Covered, but Partially Covered with Covered related to the
0point luck depth of analysis depth of analysis but overall content of the
2points lack relation to the project
overall content of the 6points
project 4points
Liquidity Not Covered Partially Covered, but Partially Covered with Covered related to the
0point luck depth of analysis depth of analysis but overall content of the
2points lack relation to the project
overall content of the 6points
project 4points

6
Leverage Not Covered Partially Covered, but Partially Covered with Covered related to the
0point luck depth of analysis depth of analysis but overall content of the
2points lack relation to the project
overall content of the 6points
project 4points
Dividends Not Covered Partially Covered, but Partially Covered with Covered related to the
0point luck depth of analysis depth of analysis but overall content of the
2points lack relation to the project
overall content of the 6points
project 4points
Efficiency/ Not Covered Partially Covered, but Partially Covered with Covered related to the
Turnover 0point luck depth of analysis depth of analysis but overall content of the
2points lack relation to the project
overall content of the 6points
project 4points

7
Cash Flow
Cash from financing Not Covered Partially Covered, Partially Covered related to
activities 0point but luck depth of Covered with the overall content
analysis depth of analysis of the project
2points but lack relation 6points
to the overall
content of the
project 4points
Cash from investment Not Covered Partially Covered, Partially Covered related to
activities 0point but luck depth of Covered with the overall content
analysis depth of analysis of the project
2points but lack relation 6points
to the overall
content of the
project 4points
Cash from operating Not Covered Partially Covered, Partially Covered related to
activities 0point but luck depth of Covered with the overall content
analysis depth of analysis of the project
2points but lack relation 6points
to the overall
content of the
project 4points
Free Cash flow (to Not Covered Partially Covered, Partially Covered related to
firm and equity) 0point but luck depth of Covered with the overall content
analysis depth of analysis of the project
2points but lack relation 6points
to the overall
content of the
project 4points
Interrelationship Not Covered Partially Covered, Partially Covered related to
between the 0point but luck depth of Covered with the overall content
components analysis depth of analysis of the project
2points but lack relation 6points
to the overall
content of the
project 4points

8
Investor information and share price movements
Weighted average Not Covered Cost of debt, Cost of debt and WACC with the
cost of capital 0point Well justified Cost of equity proper weights
1 point 2points 4points
Dividend discount Not Covered Estimated future Estimated the Estimated the price
model 0point dividends price at the of the company’s
1point1 beginning of the stock
constant growth 4points
period 2points
Price based on the Not Covered Estimated future Estimated the Estimated the price
free cash flow to 0point FCFE price at the at the beginning of
equity (FCFE) 1point beginning of the the constant growth
constant growth period 4points
period 2points
Price based on the Not Covered Estimated future Estimated the Estimated the price
free cash flow to firm 0point FCFF price at the at the beginning of
(FCFF) 1point1 beginning of the the constant growth
constant growth period 4points
period 2points
Price based Not Covered Selection of peers Estimated the Proper estimation
multipliers of the 0point with full price on the of the price based
company’s peers justification basis of each on all multipliers
1point multiplier 4points
2points

Conclusion
No conclusion Inadequate Conclusion Conclusion Conclusion Conclusion Conclusion
0point conclusion contains analyses with analyses with analyses with analyses with
containing no some reference to a clear critical insightful original and
critical evidence of theory and reference to critical insightful
reflection. critical practice. theory and reference to reference to
1point reflection. 3points practice. theory and theory and
2points 5points practice practice
7points 10points