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1. What is the corporate goal of your firm? Do you think the goal of the firm is well
defined? If the goal of the firm is not stated anywhere in the annual report then what do
you think the goal of this firm should be? Analyze the provision of information in the
Annual Report in relation to the strategic thinking of a company in terms of corporate
objectives.
2. What is your comment regarding the corporate social responsibility (CSR) of the firm? Is
anything stated about the CSR in the annual report?
II. Valuation
7. Analyze your firms behavior with the analysis of structure, conduct and performance of
the industry to which your firm belong?
8. Evaluate the firms financial condition of the recent five years using the ratios like (a)
liquidity (CR, QR), (b) efficiency & activity (A/R period, Inventory period, TAT, operating
and cash cycle, (c) solvency (debt equity ratio, debt to total asset, debt service coverage
ratio (d) profitability (OPM, NPM, ROA, ROE), and (e) market (BV/MV, P/E ratio. TOBIN
Q).
9. Prepare five factor Du Pont Analysis for the firm. If you want to increase the ROE what
may be your course of actions? Suggest specific actions.
11. Analyze the optimum debt equity ratio of the company using the checklist of capital
structure.
V. Dividend Policy
12. What is the last five years dividend pattern of the firm?
13. Prepare a Table on the computation of the following parameters over the five recent
years in order to assess the dividend policy of the firm.
DPS (Cash Div. per share and stock div. per share), EPS, DPR, OCF per share, FCF per
share, MP, P/E ratio, P/E multiple of the Industry/sector, BV per share, Reserve & RE per
share, Sustainable Growth rate (G), Inflation rate, GDP growth arte.
14. Make judgments for inculcating the stylized facts of the dividend behavior in your firm.