Write a recommendation report for a potential client on your company. The report shall be structured in 5 Sections (preceded by a brief executive summary) to address the following questions of your client:

1). What are the competitive forces behind the industry’s structure? How does industry competition affect the margins of the industry and the company? What is DLX’s business strategy? (Lecture 1 and 2)


2). What is the position of the firm in the industry life cycle? Please highlight potential investment risks the company could face in the future. (Lecture 1)


3). How does the company’s profitability compare relatively to its industry peers (select between 3 and 5 industry peers)? Please examine DLX’s liquidity ratios. (Lecture 2)


4). Quantify the level of earnings management by calculating the firm’s total accruals (TA), non-discretionary accruals (NDA) and discretionary accruals (DA), and draw some conclusions on your findings. (Lecture 4)


5). Analyse how the market is pricing DLX using different relative

valuation techniques. (Lecture 3)

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