This report will require students to critically evaluate “financial strategy” of the given company. The report will base on real life cases. Arguments based on reading of academic articles will provide theoretical foundations for the discussion. Make your calculations on an Excel spreadsheet. (Separate from your report.)
Students are required to:
– Evaluate Next plc’s choice of sources of funds using appropriate theory;
– Evaluate Next plc’s strategy of distribution of funds (dividend policy, share repurchases) by using appropriate theory;
– Recommend an appropriate financial strategy for Next plc to be followed over the next 3 years.
Follow a report format. Please include a brief abstract (excluded from word count).
Use Next plc’s financial data for the last 3 years in order to evaluate firm’s financial strategy. Please use financial statement data predominantly sourced from the firm’s annual reports. Reference the financial statement data used in your coursework by providing, in a footnote, the page number your data can be found in the financial report.
Use relevant corporate finance theory (e.g. Corporate life cycle theory, M&M, Lintner, etc) to evaluate Next plc’s financial strategy.
Take into consideration the current economic climate when recommending an appropriate financial strategy for Next plc’s. Also, your recommendations should be based on the findings of your analysis of Next plc’s financial strategy.