Assume that You are Currently Working at One of the Top Investment Banks in Singapore: Finance Assignment, SIM, Singapore

Assignment Details:

Assume that you are currently working at one of the top investment banks in Singapore. You are required to choose a non-financial company listed on the Singapore Stock Exchange that has paid annual cash dividends over the past three years. Using Yahoo Finance, annual reports, and any other web resources, complete the tasks below:

Question 1.

Identify the main long-term sources and uses (investments) of finance from the company’s balance sheet over the most recent 5 years and comment on the company’s capital expenditure (Capex) during the same period.

Question 2.

Identify the company’s annual cash flows over the past 5 years as per its cash flow statement. Assuming that this cash flow pattern will occur in the future i.e. during the coming 5 years, calculate the present value of those cash flows using a10% discount rate. If the company is offered an investment opportunity with an initial outlay of S$20 million, would you accept this investment opportunity using NPV, IRR, and Payback period?

Question 3.

Use the Dividend Discount Model to calculate the company’s intrinsic share price if the expected growth rate in dividends is 3% indefinitely and the company’s cost of equity is 10%. Compare your calculated price with the market price of the share is listed on the Singapore Stock Exchange. What is your investment decision?

Question 4.

Using the Singapore Corporate Governance Code and the company’s annual reports, please comment on how the company mitigates the principal-agent problems using examples.