Multinational Financial Management

Running head: CORPORATE FINANCE
Corporate Finance
Name of the Student:
Name of the University:
Author’s Note:

CORPORATE FINANCE1
Executive Summary:
Corporate finance is the process of finding financial needs of corporations and sourcing such
finance needs with efficient capital structure with the objective of achieving overall objectives of
the business and to maximize shareholders wealth. In this report the financial and operating
performance and financial position of the Palestine Telecommunications Company has been
analyzed along with their corporate management strategies. The capital structure and dividend
policies of the company have also been analyzed to understand their financial management or
corporate finance strategies aiming towards achieving the objective of the shareholders wealth
maximization. With an assessment of investment needs for the company various strategies have
been suggested for sourcing such investment. Further, various investment appraisal techniques
and method have been applied and analyzed to help in decision making for the investment.
Lastly, the report concludes with outlining overall strengths and weaknesses of the company and
recommending an investment strategy.

CORPORATE FINANCE2
Table of Contents
1. Introduction:................................................................................................................................3
2. Background to the company:.......................................................................................................3
3. Challenges and investment opportunities for PALTEL:.............................................................4
4. Capital structure and dividend policy of the Palestine Telecommunication Company:..............5
5. Financing needs and financing decisions:...................................................................................7
6. Investment appraisal techniques:.................................................................................................9
Net Present Value:.....................................................................................................................11
Internal Rate of Return:.............................................................................................................12
Discounted payback:..................................................................................................................12
Accounting rate of return:..........................................................................................................13
Profitability Index:.....................................................................................................................13
7. Conclusion and recommendation:.............................................................................................14
8. References and bibliography:....................................................................................................15

CORPORATE FINANCE3
1. Introduction:
In this report, financial performance and financial position of the Palestine
Telecommunication Company have been analyzed to understand and interpret the corporate
strategies of the company. Information from the 2018 annual report and financial statement of
the company have been considered for such analysis. For further analysis previous few years
financial statements and annual report information have also been considered (Paltelgroup.ps
2020). In this report the present capital structure of the company has been analyzed to understand
the leverage benefit the company is having currently. Dividend policies have also been analyzed
and interpreted based on the dividend payout for the last few years. Based on their present capital
structure and leverage in the capital based, financing decision have been suggested and
investment appraisal techniques have been applied to help in making investment decisions.
2. Background to the company:
Palestine Telecommunication Company is a group of companies in the
telecommunication industry in Palestine. It is the largest telecommunication in Palestine. The
Palestine Telecommunication Company is also considered as the largest employer in the country
(Paltelgroup.ps 2020). In recent few years a downtrend in the financial performance of the
company can be observed. It can be observed from the 2018 annual report of the company that,
the total assets of the company or the net worth of the company has been decreased from JD925
million to JD858 million, which implies shrunk in the capital base and financial position of the
company (Paltelgroup.ps 2020).
From the income statement of the company is can be observed that there is a marginal
increase in the net income of the company, which implies improvement in the financial