Reference no: EM131318288
External capital funding proposal: For Keurigs Expansion to Europe
IDEA: Bring your finance and economics knowledge to bear by preparing an external capital funding proposal for a major international investment at a publicly traded corporation. In order to secure the support of potential financial backers, your proposal will need to lay out what the proposed investment opportunity is, how it fits within the company's broader mission and goals, its financial impact, and the amount being requested and why (including alternative funding mechanisms considered). In addition, it will also need to include information on the organization's context, risk factors, and microeconomic assumptions that could affect the success of the investment.
Requirements: Financial impact:
This section should discuss the project's most likely financial implications and the consolidated financial projection with and without the project. Be sure to:
- Project the incremental, annual, and cumulative cash benefits and outflows associated with the proposed expansion for the next seven to 10 years, using a spreadsheet or other relevant presentation vehicle to support your narrative. Be sure to justify your assumptions and methodology based on sound microeconomic and financial principles. For example, what assumptions have you made about demand, price, volume, capital purchase costs, incremental hiring, and so on?
- Develop a consolidated financial projection of revenue, pretax income, and cash flow for the overall business, over that same number of years, both with and without the proposed investment. Use a spreadsheet or other relevant presentation vehicle to support your narrative, being sure to describe any relevant assumptions.
Financing: In this section, compare the proposed loan to alternative financing methods. Specifically:
Track Record: Use this section to persuade the lender that you are credit-worthy. You must:
- Convincingly argue that your organization is on solid financial footing, and thus at a low risk for default, supporting your argument with appropriate financial statements, ratios, and other indicators of financial performance and health.
- Convincingly argue for your organization's trustworthiness, providing credible evidence of legal and ethical financial behavior. For example, this might include recent audit results; credit history; absence of significant lawsuits, recalls, or regulatory judgments; or other evidence designed to show that the company holds itself to the highest legal and ethical standards.
Prompt: Project and justification paper should be approximately 8-10 pages in length (excluding spreadsheets, other exhibits, and list of references as necessary). It should be double-spaced with 12-point Times New Roman font and one-inch margins, and should use APA format for references and citations. No Plagiarism
|
Process of capital rationing in its decision making
: The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm's cost of capital is 10 percent. It will only invest $77,000 this year. It has determined the internal rate of return for each of the following proje..
|
|
How much gaap income will michigan motors report
: Michigan Motors is a U.S. corporation with $1 billion of U.S.-source income. In addition, Michigan Motors owns 60% of Detroit Parts, a U.S. corporation with a total of $200 million of U.S.-source income, How much GAAP income will Michigan Motors re..
|
|
What is the net present value
: a. What is the net present value at an 8 percent discount rate? b. What is the internal rate of return? c. In this problem, would you make the same decision under both parts a and b?
|
|
Demonstrate knowledge of nutritional supplements
: LS6018- Extreme Environments and Ergogenic Aids Demonstrate a comprehensive knowledge of nutritional supplements, including critical evaluation of the theoretical mechanism of action, the evidence supporting an ergogenic effect, and possible side e..
|
|
External capital funding proposal
: Bring your finance and economics knowledge to bear by preparing an external capital funding proposal for a major international investment at a publicly traded corporation. In order to secure the support of potential financial backers
|
|
Comment on the data reviewed for each individual company
: Comment on the data reviewed for each individual company for 2010 and 2009.- Based on the above, which firm would you select?
|
|
Estimate the mass transfer coefficient
: Determine whether increasing the diameter of the glucose sphere or increasing the velocity of the water stream effects the magnitude of the mass transfer coefficient, kc. Which of these variables has the larger effect on the coefficient?
|
|
List the key features of a bond
: What is the YTM? List the key features of a bond. Explain what is meant by net proceeds in the context of a bond sale. Provide an example.
|
|
How you will incorporate any changes into your books
: How you will incorporate any changes into your books and records. Prepare a pro forma balance sheet and income statement providing the assumptions made and support the valuations assigned.
|