XUE BA Corporate Finance senior copy (1).docx - Cover Sheet \u2013 Corporate Finance(FNCE3000 Name 1 2 Student ID Chin Siang Lian Clara Ivan Lim 3 Ong Jia

XUE BA Corporate Finance senior copy (1).docx - Cover Sheet...

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Cover Sheet – Corporate Finance (FNCE3000) Name Student ID Contribution Signature 1 Chin Siang Lian @ Clara 1 2 3 2 Ivan Lim 19535300 1 2 3 3 Ong Jia Wen @ Carmen 1 2 3 4 Yugen Paramesvaran 1 2 3 Comments: Contribution Key: (1) Did less than fair share, (2) Did fair share, (3) Did more than fair share. Recall that there is a 50% penalty if you did not contribute your fair share to completion of the project. Please use the comments section to note any comments you have on the way in which your team worked on the project, the structure of the project, and possible improvements for the project in future sessions. Contents 1.0 Shareholder Analysis ................................................................................................................ 3
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1.1 Maybank’s Summary .......................................................................................................... 3 1.2 Chief Executive Officer’s Message ................................................................................. 3 1.3.1 Types of Investors ......................................................................................................... 4 1.4 Non-Marginal Stakeholders ............................................................................................. 5 2.0 Risk-Return Analysis ................................................................................................................ 7 2.1 Analysis of Risks Listed ...................................................................................................... 7 2.2 Prove of Risk ........................................................................................................................... 8 2.3 Analysis on Shareholder’s Return ............................................................................... 11 2.4 Analysis on Capital Project ............................................................................................ 12 3.0 Cost of Capital .......................................................................................................................... 13 3.1 Cost of Equity ...................................................................................................................... 13 3.1.1 Method 1 - Capital Asset Pricing Model (CAPM) ........................................ 13 3.1.2 Method 2 - Dividend Growth Model (DGM) .................................................. 14 3.2 CAPM v DGM ..................................................................................................................... 15 3.3 Cost of Debt .......................................................................................................................... 16 3.4 Cost of Equity V Cost of Debt ....................................................................................... 17 3.5 Weighted Average Cost of Capital (WACC) ............................................................ 18 4.0 Financial Statement ................................................................................................................ 19 4.1 Market-Valued-Based Measures .................................................................................. 19 4.2 Analysis on Time Series ................................................................................................... 20 4.2.1 Economic Value Added (EVA) .............................................................................. 20 4.3 Profitability Ratios ............................................................................................................. 21 4.4 Analysis on Cross-Sectional ............................................................................................ 24 5.0 Appendix ..................................................................................................................................... 27 5.1 Appendix 1 ............................................................................................................................. 27 5.2 Appendix 2 ............................................................................................................................. 28 5.3 Appendix 3 ............................................................................................................................. 29 5.4 Appendix 4 ............................................................................................................................. 29 5.5 Appendix 5 ............................................................................................................................. 29 5.6 Appendix 6 ............................................................................................................................. 30 5.7 Appendix 7 ............................................................................................................................. 31 5.8 Appendix 8 ............................................................................................................................. 31 6.0 Reference .................................................................................................................................... 32
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1.0 Shareholder Analysis 1.1 Maybank’s Summary Malayan Banking Berhad or more commonly known as Maybank is the largest public listed company on Bursa Malaysia. Maybank was recognized in 1960, which is also known as the largest financial services group in Malaysia in the ASEAN region. According to the annual report, Maybank is the fourth largest bank in ASEAN with the total asset grown from RM560.32 billion as at end 2013 to RM806.99 billion as of financial year ended 31 December 2018 (FY2018) while the market capitalisation of the firm has risen from RM88.09 billion to RM104.97 billion. Maybank Group has more than 2400 divisions and workplaces in 20 countries with over 45000 workers. Maybank also has 22 divisions in Singapore, 79 divisions in Philippines and other countries like New York, London and Hong Kong. Maybank is one of the two brands from Malaysia who is capable to be recorded in the Finance’s Global 500 Brands. The brand assessment of Maybank increased from 32% in the year 2018. In 2018, Maybank was also known for the Best Malaysian Group. Maybank’s aim is to help the people across the district by leading the role in ASEAN in order to increase economic development. The firm’s strategy is to accomplish customers’ needs as well as supporting businesses to prosper in ASEAN and after. Maybank also provides goods and amenities in profitable banking, asset banking and protection.
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