1.1 The Corporate Finance assignment
For a company, comparative performance (against peers) may be as important, as performance measured using financial accounting and externally reported. Comprehensive business analysis, including robust market analysis and news-gathering represents a basis on which on a daily level millions of shares, representing billions of Euro’s and Dollars, are being traded all around the world. In this assignment we are going to look at 2 car manufacturers: Volkswagen and Daimler. You need to provide comparative business analysis of bot car manufactures. This analysis should include: business strategy analysis, financial analysis and prospective analysis (as a basis for valuation). Companies need to be compared, and you need to provide and explain your opinion and advice on these 2 companies, both from an equity (for instance shareholders or other investors), debt perspective (for instance a rating agency like Standards & Poor’s, Moody’s or Fitch) and management perspective (to enable the improvement of performance).
Prospective analysis should be done using net present value method.
IFRS (international financial reporting standards) should be used for the evaluation because it is what is used in Germany.