FIN355: With gradually more people receiving a vaccination, the world economy is opening up once again: Equity Securities Assignment, SUSS, Singapore

SECTION A

Question 1

With gradually more people receiving a vaccination, the world economy is opening up once again. Coupled with huge stimulus packages from governments, especially the United States, the world economy has started to rebound.

However, the resurgence of the COVID-19 virus has caused some countries to reintroduce tighter measures, and these threaten to derail economic growth.

Choose any non-financial institution listed on the Singapore Stock Exchange (SGX) and analyze to show the impact of the above scenario for the sector that your chosen company belongs to.

Question 2

Determine the company’s cost of capital by considering separately the cost of equity and the cost of debt and calculate the weighted average cost of capital that can be used to discount the free cash flows of the company.

Question 3

(a) Qualitatively discuss the likely impact of the scenario in Question 1 on the fundamentals of your chosen company (i.e. financial statement items and valuation indicators)

(b) Value the shares of the company using a discounted free cash flow model and the weighted average cost of capital calculated above (c) Compare using relative valuation methods your chosen company with at least two (2) comparable companies, which may or may not be listed on the SGX.

Question 4

From the information gathered, design and develop a short recommendation summary page on the chosen stock, using the reference:

You can consider including these sections in your report, which should not be more than two (2) pages.
• Revenue and profit expectations over next 1 – 2 years and reasons
• Current valuation and reasons
• Expected price in 12 months and reasons
• Significant corporate developments and future strategy Other sections may be added if you think they are appropriate

SECTION B

Prepare a video recording of the presentation of at least 3 minutes but not exceeding 6 minutes. There are two methods for ECA video assignment submission; either Record Media or Upload Media. For Upload Media, please note that your file size should be no more than 500MB and the format is in .mp4.

SECTION C

Prepare a set of PowerPoint presentations upon which the video presentation is based. Please note that the PowerPoint must be converted to PDF before submission to Canvas.