You are to assume the role of a new researcher at a large investment bank. The bank has provided you with a task to research the clothing retailer Phillips Van Heusen. You are to produce a research memo to your supervisors. The company is requesting £20 million in new debt because it wants to build two new stores in London.
Or, alternatively, you can use Yahoo Finance and the stock symbol PVH to look up the salaries of the company's directors, historical trades for the company's stock, competitor analysis, and a summary of the company.
Draw upon your knowledge of financial ratios learned thus far in the course to indicate whether this is a stable company which could afford to increase its debt by £20 million. Is this company highly liquid? How much debt is the company carrying? Are the compensation packages for the company directors too liberal? These are just a few of the issues you should address.
It is also recommended that you use Academic Search Premiere to find peer reviewed journal articles about Phillips Van Heusen and SWOT analysis and competitor analysis. What are the major risks facing this company?
When you have completed your ratio analysis and critical review of the literature concerning Phillips Van Heusen, then make recommendations as to whether £20 million in financing should be provided in a memo format. This memo should be 1500 to 2000 words.
Note: The following criteria are considered in marking this coursework:
- Good introduction,
- Clear and accurate referencing (according to the Harvard system)
- Clear and logical explanation and discussion
- Good business English
- Independence of thought and originality
- Good conclusion
- Style and Presentation of the report