- Evaluate and discuss the financial performance of JD Sport Fashion PLC over 5 years period of analysis. As a minimum you must cover the following: (500 words)
a. Review of the income statements
b. Working capital management policy
c. Dividend policy
d. Historical share price performance - Estimate the share price of JD Sport Fashion PLC by means of either Dividend Discount Model or Free Cashflow to Equity. For this task estimate the required rate of return based on the Capital Asset Pricing Model (CAPM). Please provide a brief analysis of the results. (1100 words)
- Discuss the capital structure of JD Sport Fashion PLC using the company’s balance sheet in the context of the Modigliani and Miller theories on capital structure and prepare a constructive critique of these theories. Your discussion should involve various balance sheet items such total equity, total debt, and other relevant information. (1100 words)
Sample Solution