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MF - MBA - ESLSCA - Midterm Exam - June 2019

Financial Management Course
Mid-term Exam
Group Assignment
Many important business decisions – especially in today's economic environment – require a solid
understanding of a company's strengths and weaknesses, future prospects and value creation
opportunities. Furthermore, the amount and quality of information about companies and industries
is growing rapidly. In this assignment, you will interpret your company's financial health; how its
performance compares to the competition, and how financing strategies and options shape the
business (and the other way around).
The key objectives of this assignment are to improve your ability to interpret how a firm is performing
by using its financial statements and to improve your understanding of the links between a company’s
financial performance, its value creation opportunities and its financing.
What is this project?
This project provides an opportunity to get some hands-on experience applying corporate finance
theory and models to real firms. In the process, participants will get a chance to:
Evaluate the strength and weaknesses of a firm, and examine the sources of risk and risk
management policies.
Analyze its sources of financing
Assessing the risk that the company facing
How is the project structured?
The assignment will be completed on a team basis. Class members will form four to five-person teams.
Although team members are free to allocate the work in any equitable fashion.
Each team member should be generally familiar with all sections of the Company Report and have
every opportunity to provide input into the project as a whole. All team members will be expected to
participate in the development of Company Report and presentation to the class.
The Project
Select an Egyptian Company, listed in the Egyptian Exchange, and perform an in-depth financial
analysis for the company over a four-year period 2015 till 2018.
1- Briefly describe the company’s history, business and operations.
2- Describe the major activities of the company; investments, Mergers & Acquisitions…
3- Where appropriate, look into business division and/or product segmentation, to discuss
revenue and profitability.
4- A summary of the forces that most influence your company's performance, i.e. what are the
major factors (internal and external) that could have a significant impact, positive or negative,
on your business.
5- Comment on the financial statements within the study period.
6- Conduct a full financial analysis of the Company.
a. Liquidity Ratios
b. Profitability Ratio
c. Debt Ratios
d. Activity Ratios, commenting on Cash Conversion Cycle of the Company
e. Market Ratios
7- Calculate the Free Cash Flow to Firm “FCFF”, Comment.
8- A summary of your company’s main risk areas, on an enterprise-wide basis, along with what can
be done to mitigate those risks. Where possible, quantify the risk and assess the impact to
financial performance.
Suggested companies:
GB Auto, Ezz Steel, Talaat Mostafa Group, El Swedy Cabels, Telecom Egypt, Juhayn, EDITA, Domty,
Obour Land, Ezz Steel and EMAAR ….. etc.
If you have any enquiry, do not hesitate to contact me:
Dr. Nader Ibrahim
M +2 0100 163 4792
E nader.ibrahim@epic-advisory.com
Good Luck