TASK: Analyze a UK PLC along the lines prescribed below
Firm: Computacenter plc
Risk and Return
• Evaluate the risk profile of your companies.
• Use BETA to compare/describe risk
• Use returns ratios across firms and over time
• Cost of capital
Section IV Capital Structure
• Analyze your firms’ capital structure.
• Are they under- or over-leveraged?
• Use debt/equity ratio, and other measures
Section V Dividend Policy
• Examine the firms’ dividend policy
• How much paid in dividend s over last few years?
• Should more or less dividend be paid?
• How does firm compare with others in industry re dividend policy?
Section VI Valuation
• What is value these firms?
• How fast has earnings grown historically?
• How much of earnings are reinvested?
Section VII Conclusion
• Summary of your findings
• Your views on firms’ future prospects based on your analyses.
Sources of information
• Company web site
• FAME (MMU library)
• Yahoo Finance (web)
• Bloomberg (pay site –not needed)