CORPORATE FINANCE KMBA

CORPORATE FINANCE KMBA COMPANY – TESLA MOTORS INC You must complete a Module Project that will apply tools and techniques in analysing the role of a finance manager, how he/she affects financial function and outcomes and how these outcomes are recorded in financial statements. The final project of approximately 5,000 words will contain five chapters covering the following topics: • Chapter 1: Introduction o Explain the corporate history, background and corporate objectives of the organisation. o Identify the ownership structure and provide a shareholder analysis (distribution of shares as held by individuals, pension funds, marginal investors and large domestic or foreign investors). o Identify and discuss sources of finance (not capital structure). o Discuss corporate control, agency problems and corporate governance mechanisms. • Chapter 2: Risks, cost of capital and return o Examine the major risks (both systematic and unsystematic risks) that have been facing the organisation and discuss how these may have been dealt with or managed over the years. o Based on the various sources of capital employed, estimate the company’s cost of capital (component costs and WACC) and determine the percentage return on capital employed (accounting ROCE). o Comment on whether the risks you identified have had an impact on the return. o Explain how the return compares with the cost of capital. o Make a constructive comparison of your findings with similar companies within the same industry. • Chapter 3: Capital structure and dividend policy o Critically evaluate the capital structure policy of the company and compare with similar companies within the same industry. o Critically appraise the dividend policy of the company and compare this with similar companies within the same industry. • Chapter 4: Working capital management and liquidity o Critically evaluate the effectiveness of the working capital management policy of the company and compare with similar companies within the same industry. o Based on the issues covered in this chapter and previous chapters, assess the liquidity position of the company and whether there are any ongoing concerns that may make it a target for acquisition. • Chapter 5: Summary and conclusions o Relate your findings to relevant theories and summarise and draw conclusions as well as recommendations. This should include an estimate of the value of the company. Each chapter will be 750-1,000 words. Include a title page with the title of the project, the company that you are writing about, and your name. Also ensure you include a comprehensive index, separate indices of tables and figures, appropriate references and a one-page executive summary (or abstract) at the start of your project paper.