FIN360: Capital Investment and Financing
FIN360- PROJECT SEM. 192
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FIN360: Capital Investment and Financing
Semester 192, 2019/20
Group Project: (10%)
Due date: Week 14
The purpose of this project is to enhance student’s in-depth understanding of cost of capital
topic and also measures the related learning outcomes for this course.
Domain Course Learning Outcomes Measurements:
Skills Estimate the individual cost components, and the weighted average cost of
capital.
Discuss the implication of the capital structure decisions, from the
fundamental and alternative viewpoints.
Competency Ability to communicate effectively through written work and oral
presentation.
Ability to collect and interpret data related to real estate market.
Students are required to carry out project on a group basis. The project consists of two main
sections – reviewing of articles and analysis of cost of capital of selected companies. Each
group should consist of 5 members and you should submit the report in week 14.
Instructions:
1. Section A: Review of Articles (5 marks)
You are required to select THREE journal articles which discussed the relationship of
determinants of cost of capital and its impacts on financial performance of companies.
Write in details of the followings:
a) Research objectives / research questions
b) Period of study and location
c) Variables involved in the studies
d) Hypothesis testing
e) Results and analysis
f) Conclusion, limitations and future studies.
Comment and conclude on what you have reviewed.
2. Section B: Cost of Capital Analysis (5 marks)
Select three listed companies in the same sector from Tadawul Saudi Arabia.
http://www.tadawul.com.sa/. (Note: You need to update the companies’ name in Google
sheet before starting the project, which I will share the link through Moodle).
– Provide a brief introduction of each company.
– Compute each component of cost of capital for current period and compute
WACC.
– Compute also capital structure weights on a book value basis and capital
structure weights on a market value basis.
– Comments on each company’s result and conclude your findings.
Format of your submission:
Font size: 12, 1.5 spacing
Font types: Times New Roman or Arial
Number of pages: Not more than 10 pages. Please insert page numbers.
FIN360- PROJECT SEM. 192
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You may include screen shots for the information you gathered through online such as
Yahoo Finance, Tadawul and others.
Submission: through Moodle.
Dr. Zaiton Ali