PART ONE: COMPANY BACKGROUND
You are required to discuss the background and setting for your selected company to be valued in the subsequent parts.
You should address the following issues using publicly available information:
1.1. Describe the profile of your company. In your discussion, you should include: nature of the business, industry and age of your company. (1 mark)
1.2. Provide an evaluation of the current state of the economy, business confidence levels and future outlook of the economy moving forward. (1 mark)
1.3. Identify the key business segments and how they contribute to profitability. (1 mark)
1.4. How is the company positioned in its industry? (1 mark)

PART TWO: CAPITAL STRUCTURE

2.1. Graph the company’s total liabilities to total assets ratio over the last 3-5 years, and provide trend and peer analyses. (3 marks

2.2. What do you think about the target capital structure of the company? Do you think it would be beneficial for the company if it raised more or less debts than its current debt level? (1 mark)
2.3. Estimate the company’s cost of capital. (4 marks)
In performing your estimation, you will need to clearly state and justify all assumptions made.