Critical Analysis of Croda International (CRDA) - Accounting and Finance Assignment Help

Assignment Task

Coursework Final
You are expected to critically analyse each of the following aspects for the below company:

Company : Croda International (CRDA). Listed in London Stock Exchange

Topic to be covered:
1- Introduction
2- Background of the company
3- Risk Profile
4- Capital Structure
5- Conclusion

1. Evaluate the Risk Profile for each company and examine the sources of risk. Investigate how systematic risk factors are considered in the company. Compare and critically analyse your findings across the company and make recommendations

A) Beta
B) Rsquared (Market Risk)
C) Jensen’s Alpha (Monthly and Annually) – Compare with Industry standard
D) Derive the equation (Risk free rate, Beta, Market return)
E) Operating leverage and Financial Leverage (Comment on DOL)
F) Rf - UK 10 year Govt bond and it should be in UK Currency
G) Sources of Risk (Context of CAPM and Estimation)
H) Systematic risk and Asystematic risk and examples
I) Risk should be classified to the industry

2. Analyse the Capital Structure (Sources of Finance for Croda as or 2022, Forms of Debt-traded bonds) for the company. Estimate the Cost of Debt and Cost of Equity for the company. Calculate the Weighted Average Cost of Capital for the company. CAPM Model and Estimation to be done. Compare and critically analyse your findings and make recommendations. (For tax rate use Latest UK’s Corporate Governance Tax rate)

A) Estimate the Cost of Debt and Cost of Equity for the company
B) Calculate the Weighted Average Cost of Capital for the company.
C) CAPM Model and Estimation to be done.
D) Comment on Tax benefit
E) Volatility of earnings
F) Agency cost
G) Trade off theory
H) debt/capital ratio
I) check if debt is stable, compare with Industry average
J) check the stage of the company.
K) Taxes and Cost of Debt

3. Payout Policy. Report on what the payout policy has been for the company over the past 3 years. Critically analyse the payout policy adopted by the company and make recommendations. Compare and critically analyse your findings. Please support your analysis with relevant theories.

Data has to be presented annually –
A) Talk about difference in EPS and DPS growth for 3 years
B) Check for re-purchase.
C) Dividends stickiness
D) Dividend payout.
E) Dividend yield
F) Industry pay out
G) Industry dividend yield
H) Intercept dividends earnings to earnings
I) Talk about clientele effect.
J) The signaling story.
K) Compare payout and yield with industry and critically comment
L) Pros and cons of share buyback vs dividends

All the above should be compared with the industry standard and then critically compared and analysed. Damodar’s website can be used. S& P data, industry average will be shared; you can check and take the balance sheet for the company’s website if required.

Please use tables to summarise data and findings where you can. In your report, you might find it useful if you start each section with a table that summarizes your findings for that section.
You should have the company discussed in an integrated report, by section.
At the end of the report please include references to the data sources that you have used for your report (such as the London Stock Exchange website, Annual Reports, Yahoo Finance, etc.).

Note
· 3500-word count.
· Appendix and Reference should be given.
· Use tabular column to explain Cost of Equity, Cost of debt, CAPM, Dividend payout,
· Citations to be given for everything and Harvard style referencing to be done.
· Excel workings for all the calculations must be shared
· Highly professional, UK university standard should be followed.
· Plagiarism not tolerated.

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