Corporate Finance Analysis

Running Head: Corporate Finance Analysis
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Project Report: Corporate financial analysis

Corporate Finance Analysis
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Contents
Introduction.......................................................................................................................3
Stockholder analysis.........................................................................................................3
Risk and return..................................................................................................................3
Measuring investment returns...........................................................................................4
Capital structure choices...................................................................................................4
Optimal capital structure...................................................................................................5
Mechanics of moving to the optimal................................................................................5
Dividend policy................................................................................................................5
A framework for analyzing dividends..............................................................................6
Valuation...........................................................................................................................6
References.........................................................................................................................7

Corporate Finance Analysis
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Introduction:
It is a financial accounting part that is mainly used by the financial managers or the
investors of the company to evaluate about the internal functions of the company such as
dividend structure, company’s stockholder, valuation and risk and linked return along with
the stock of the business. The report focuses on Campbell Soup Company. various internal
financial activities and external financial activities of Campbell Soup Company has been
measured in the report to know whether the company is managing the activities and the
performances related to finance at better level. If further focuses that investment in the
company will be a good option or not. Bloomberg, yahoo finance etc online sources have
been taken into consideration to conduct the research.
Stockholder analysis:
Management style and management position of company has been done under the
Stockholder analysis. Through study over the investors of the company and annual report, it
has been found individuals are the main stakeholders in the business. The common man
(individuals) have made invested in stock of the company to get the higher return as well as
reduce the tax burden. Along with that, investors who have made their maximum contribution
in capital of a company are recognized as marginal contributors of the company. On the basis
of annual report (2018), it has been found that highest contribution has been made by few big
businesses in the company in order to earn additional penny and diverse the business in the
market. Further, it has been studied that each marginal investors are diversified investors in
the company. Further, a good dividend payout ratio of the business is assisting the business to
preserve the market cap.
Risk and return:
In addition, the risk and return level of Campbell Soup Company has been calculated
to identify the investment level in the company. Bloomberg (2019) depicts that the
unsystematic risk is 0.013 and the systematic risk is 0.33 of the company. the study of risk in
the company explains that the risk of the company is high because of the industry and the
currency changes. However, the risk level of the company is not that much higher. In the
industry and market; firm is doing better as well as the currency of the country is also
performing well which would help the business to maintain the risk level.