ACCT1063: Select One Company Above 10 Companies, and  Investigate and Briefly Describe the Company: Management Accounting & Business Report, RMIT, Singapore

Students are required to select one of the following 10 top manufacturing companies in Singapore:

1.Infineon Technologies

2.Procter & Gamble

3.Siemens

4.Unilever

5. 3M

6. Continental

7. GE

8. L’Oréal

9. STMicroelectronics

10. Panasonic

Prepare a business report covering three sections (see 1 to 3 sections below) Detailed requirements are outlined below:

Select one company above 10 companies, and investigate and briefly describe the company and the industry within which it operates. (When choosing a company, it is very important to find comprehensive information about the company and the industry it operates in. So that you will have sufficient data for the analysis.)

1. Introduce the selected company (context, industry position, and future goals)

2. Analysis of a company’s capital structure policies

a. Describe the capital structure under the following criteria:

1. Why is capital structure analysis useful for a company?

2. What are the capital structure theories say about a company’s capital structure?

3. Identify the current capital structure of the selected company and assess the selected company’s current capital structure(used at least the last 5 years data to analyze the company capital structure)

3. Analysis of the company’s long-term debts(bonds), share valuation, and dividend policies

a. Explain the relationships between bond prices and interest rates and explain why it is important for company investors to understand the relationship.

b. What are the company share valuation and dividend policies?

1. The Characteristics of stock in the selected company

c. Identify the application of the above valuations to the selected company.

4. Analysis of the company’s cost of capital

a. Discuss the cost of capital key definitions and concepts, identify selected company financial policies and cost of capital.

b. Discuss the importance of the cost of capital under the following criteria:

1. Issues in implementing the Dividend Growth Model and the relationship between the company’s weighted average cost of capital (WACC) and investors’ required rate return.

c. Calculate company cost of capital for the, 2017, 2018, 2019, and 2020 financial years and compare it with the required rate return and assess the performance.  Estimate the divisional costs of capital as well.