Vodafone Plc: Corporate Finance - An Overview and Analysis - Essay Example

The first chapter deals with the background information about the company whereby their corporate objectives, details about finance division, sources of finance, shareholder analysis, and corporate governance have been presented in brief. In the second chapter, the systematic and unsystematic risks associated with Vodafone and the global telecommunications industry as the whole. The risk reports have been taken from Ernst and Young’s assessment of global telecommunications industry risks, Deloitte’s report on Vodafone’s risks (published on the website of Vodafone) and the 2008 annual report of Vodafone.

In the third chapter, the Capital Structure of Vodafone and have compared the same with old theories that have been accepted by accounting community largely. The Debt to Equity ratio of Vodafone is compared with similar companies in the telecommunications industry and the results are analyzed. The last part of this chapter deals with an application of dividend payment theories in these companies.In the fourth chapter, the empirical theories of Working Capital management of firms and the usage of Money Markets have been presented with the help of literature review.

Thereafter, the working capital management of Vodafone and their usage of money market instruments have been analyzed. Overall, the working capital management of Vodafone is found to be not managed well as the long-term debts are being used to fund working capital year after year. In the fifth chapter, the conclusions & recommendations have been presented against all the subject areas touched in this paper. The recommendations presented herewith are a result of the application of empirical theories and self-analysis by me.

Vodafone is the relatively young group with slightly more than two decades of history.