1. Undertake a critical analysis of the agency problemsin the past or the main factors that could cause agency problem in future.(40/100)
2. Undertake a Risk Profile Analysis of the chosen company over the last 3/4 years. More specifically, using both accounting and market-based risk measures, estimate and explain the meaning, significance and sources of the key risks facing the company. (30/100)
This analysis must cover the following lines of investigation:
i) Analysis of the business risk of the company.
ii) Analysis of the systematic risk of the company over the last 5 years.
iii) Analysis of the financial risk of the company.
iv) Trend and Comparative Analysis of the key ratiosthat highlight any aspect of risk.
3. Analysis of Company's value by means of: (30/100)
a) Net Asset Value Approach
b) The Dividend Valuation Model
c) The Price-Earnings Ratio approach
d) Rappaport's Shareholder Value Model