Current cost of equity finance using dividend growth model

Assignment Help Business Management

Reference no: EM132328166

The primary company on which you should base this coursework is WM Morrison Supermarkets PLC

Required:

Prepare a report that addresses the questions below. You must clearly reference where you have obtained all financial information from and where appropriate include extracts of any financial reports used in your appendices.

(a) Critically evaluate Morrison's working capital management policy over the five year period ending onthe most recent accounts date. Your analysis should include:

• the calculation of key working capital ratios

• an evaluation of trends in the ratios over the five year period

• a comparison with an appropriate comparator company

(b) Calculate Morrison's current cost of equity finance using the Dividend Growth Model. You must explain and justify, in detail, your selection and analysis of the data used in your calculation.

(c) Estimate Morrison's after-tax cost of debt capital, and, using your cost of equity for part (b), calculate Morrison's weighted average cost of capital (WACC).

The assignment must be word-processed and not more than 2,000 words in length. List allthe sources of information used in your assignment. Include in an appendix any relevant financial data. All books, journals or electronic data systems (including web addresses) used in the preparation of your report must be clearly and appropriately referenced in footnotes using academic referencing. All quotations made directly from books, journals or other information media must be clearly acknowledged by using footnotes and quotation marks. More information below.

Referencing

Accurate and consistent referencing is essential in all academic work. Whenever you refer to either the work or ideas of someone, or are influenced by another's work, you must acknowledge this. Similarly if you make a direct quotation from someone's work this should be referred to accurately.

You are strongly advised to keep detailed records of the sources you use in your research, and to do this at the time that you use them. The Referencing Help page on the Library Gateway web page is a useful tool to help you do this.

Reference no: EM132328166

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