Its my final assignment for corporate finance. Its an financial assignment on Netflix. There is clearly some disagreement about the financial situation of Netflix (NFLX). Consequently, a more in-depth analysis (over the last 5 years) is called for. 1) Executive summary: Review and select the most important facts and figures about Netflix, which, in your opinion, will enable a reasonably educated person to understand in which financial position Netflix is right now. Perform the same for Netflix’s earnings situation. Provide evidence for any and all claims you make. 2) Performance review: a. How is Netflix performing right now? Would you say that Netflix is earning adequate returns? Why or why not? b. How has Netflix’s performance changed over the last years? Why or why not? Which metric do think is most meaningful for this purpose? Why? 3) Capital structure review: a. Provide an overview of Netflix’s current capital structure and additionally identify anything out of the ordinary. b. Analyze all material (!) changes in Netflix’s capital structure over the last 5 years. Put an emphasis on: i. Can you reconcile your analysis of capital structure changes with the propositions of Modigliani and Miller? Why or why not? Provide evidence for your claims. ii. Do you find evidence that Netflix changes its capital structure in accordance with the pecking order theory? Why or why not? Provide evidence for your claims. iii. If you were Netflix’s financial advisor, what would you recommend? 4) Dividend policy review: a. Provide an overview of Netflix’s dividend policy of the last 5 years. When and why did Netflix: i. pay a cash dividend? ii. perform a share repurchase? iii. perform a stock split? iv. perform a reverse stock split? b. Can you find any evidence for the presence of a clientele effect? What would even constitute evidence in this case? c. Does Netflix engage in a so-called “high dividend policy”? Why or why not? Which evidence do you find? d. Do you see any evidence that Netflix acts upon shareholder pressure? Which evidence can you present? 5) Risk review: a. Calculate Netflix’s CAPM beta coefficient and provide an interpretation b. Compare Netflix’s CAPM efficient to the beta of its main competitor and explain in detail: i. how you calculated Netflix’s beta, ii. which input parameters you used, iii. the data of which period you processed (Hint: you need not stick to 5 years here!), and iv. how you selected the main competitor (Note: you need not calculate the beta of the main competitor as well – you may look it up) v. Which of the 2 firms is the riskier investment in your opinion? Why? 6) Portfolio theory: Imagine a portfolio consisting of any full percentage (0% – 100%) of Netflix stock (NFLX) and any full percentage of fellow NASDAQ listed firm Wynn Resorts (WYNN). This means you could have a “portfolio” consisting only of Netflix stocks, only of Wynn Resort stocks or any mix in between. a. Calculate and interpret the average returns of Netflix and Wynn Resort stocks individually using stock price data from the last 5 years. b. Calculate and interpret the standard deviations of Netflix and Wynn Resort stocks returns individually using stock price data from the last 5 years. c. Plot all possible portfolios resulting from the combinations of the stocks of Netflix and Wynn Resorts in a risk-return diagram. Indicate the minimum variance portfolio (MV), the opportunity set (a.k.a. the feasible set), the efficient frontier as well as the inefficient frontier (a.k.a. the “idiot curve”). d. Imagine you could only use stock price data from the last 4 months (starting November 2019). How and why would your risk-return diagram change?
Why Choose Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
Customer Support 24/7
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission and Business Papers
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Editing and Proofreading
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.