2- Corporate Finance

Corporate Finance
Assignment Question:
1. Provide a valuation of two UK PLCs (Public Limited Companies). (the evaluation is already provided use it for analysis and recommendation)
2. Offer your recommendation on which one investor should consider.(consider the company that gets high results from the valuation model)
3. Use appropriate corporate valuation models which could be selected, outlining their advantages and disadvantages.
CORPORATION VALUATION MODELS TO BE USED:
• DIVIDEND DISCOUNT MODEL (DDM)
• NET ASSETS VALUE PER SHARE (NAVPS)
• EBITDA (earnings before interest + tax + depreciation + amortization)

PART 1 INTRODUCTION: (150 words)
Please give a little knowledge about the content and what will be discussed in the essay and why investors’ advisers (stock brokers) need valuation models when they offer their recommendations to investors or those who want to invest. And why do investors need an advisor when planning to invest?

PART 2 ( BODY OF THE ESSAY (1000 words)
DIVIDEND DISCOUNT MODEL
As an investor’s advisor, what are the characteristics of the company that should be revealed or communicated to investors when using the DDM model?
What is the dividend discount model or DDM model?
what are the features of the DDM model to be considered by the two parties? (investor’s advisor and investors) and how does it help investor’s advisors and investors?
WHAT ARE THE ADVANTAGES OF THE dividend discount model or DDM MODEL? as an investors advisor what are the steps you should recommend to investors so that they (investors) can use or maximize the advantages of DDM correctly?
WHAT ARE THE DISADVANTAGES OF THE dividend discount model or DDM MODEL? as an investor’s advisor, what are the things you can recommend to investors so they can avoid the disadvantages of the DDM model?

NET ASSETS PRESENT VALUE (NAVPS)
As an investor’s advisor, what are the characteristics of the company that should be revealed or communicated to investors when using the NET ASSETS PRESENT VALUE (NAVPS) model?
What is the NET ASSETS PRESENT VALUE (NAVPS) model?
What are the features of the NET ASSETS PRESENT VALUE (NAVPS) model to be considered by the two parties? (investor’s advisor and investors) and how does it help investor’s advisors and investors?
WHAT ARE THE ADVANTAGES OF THE NET ASSETS PRESENT VALUE (NAVPS)? as an investor’s advisor what are the steps you should recommend to the investors so that they (investors) can use or maximize the advantages of NET ASSETS PRESENT VALUE (NAVPS) correctly.
WHAT ARE THE DISADVANTAGES OF THE NET ASSETS PRESENT VALUE (NAVPS) MODEL? as an investor’s advisor, what are the things you can recommend to investors so they can avoid the disadvantages of the NET ASSETS PRESENT VALUE (NAVPS)

EBITDA (earnings before interest + tax + depreciation + amortization)
As an investor’s advisor, what are the characteristics of the company that should be revealed or communicated to investors when using the EBITDA (earnings before interest + tax + depreciation + amortization) model?
What is the EBITDA (earnings before interest + tax + depreciation + amortization)?
What are the features of the EBITDA (earnings before interest + tax + depreciation + amortization) model to be considered by the two parties? (investor’s advisor and investors) and how does it help investor’s advisors and investors?
WHAT ARE THE ADVANTAGES OF THE EBITDA (earnings before interest + tax + depreciation + amortization)? as an investors advisor what are the steps you should recommend to investors so that they (investors) can use or maximize the advantages of EBITDA (earnings before interest + tax + depreciation + amortization) correctly.
WHAT ARE THE DISADVANTAGES OF THE EBITDA (earnings before interest + tax + depreciation + amortization) MODEL? as an investor’s advisor, what are the things you can recommend to investors so they can avoid the disadvantages of the EBITDA (earnings before interest + tax + depreciation + amortization)

PART 3 ( 625 words): THE RESULTS OF THE EVALUATION OF TWO COMPANIES (ABERDEEN COMPANY AND CT UK COMPANY) USING THE THREE CORPORATION VALUATION MODELS (DDM model, NAVPS model, EBITDA model):
ABEERDEEN COMPANY: DDM model = 0.62pence. NAVPS model=108pence. EBITDA model = 222,403,860.
CT UK COMPANY: DDM model =0.96 pence. NAVPS model= 99.25 pence. EBITDA model= 146,497,500

In the DDM model choose CT UK COMPANY because its result is high compared to Aberdeen company, which has 0.96pence. In the NAVPS model choose ABERDEEN COMPANY because its result is high compared to CT UK COMPANY, which has 108 pence. and in the EBITDA model select ABERDEEN COMPANY because its result is high COMPARE TO CT UK COMPANY which has 222,403,860.

The COMPANY THAT GET HIGH RESULTS IN EACH MODEL USED IN EVALUATING, IS THE COMPANY THAT SHOULD BE RECOMMENDED TO INVESTORS they should choose to invest in that company.
AND FOR EACH MODEL:
FOR DDM model: AS AN INVESTORS ADVISOR GIVE YOUR ANALYSIS RECOMMENDATION, and OPINION to investors to clarify things they don’t know about investing. (ASIDE FROM THE FACT THAT THE COMPANY OBTAINED HIGH RESULTS FROM THE 3 EVALUATION MODELS USED).

FOR NAVPS model: AS AN INVESTORS ADVISOR GIVE YOUR ANALYSIS RECOMMENDATION, and OPINION to investors to clarify things they don’t know about investing. (ASIDE FROM THE FACT THAT THE COMPANY OBTAINED HIGH RESULTS FROM THE 3 EVALUATION MODELS USED).

FOR EBITDA model: AS AN INVESTORS ADVISOR GIVE YOUR ANALYSIS RECOMMENDATION, and OPINION to investors to clarify things they don’t know about investing. (ASIDE FROM THE FACT THAT THE COMPANY OBTAINED HIGH RESULTS FROM THE 3 EVALUATION MODELS USED).

PART 4 CONCLUSION: (150 WORDS)
TOTAL WORDS 1925
Use all available resources and information to complete the essay, either books, online resources or financial corporation news. Etc.
REFERENCING STYLE: HARVARD ANGLIA