Has management identified correct amount of money required

Assignment Help Corporate Finance
Reference no: EM131489202

Assignemnt: Finance Project

Read PowerWater Beverages, Inc. case by Jeffrey P. Shay, Tony Crawford, Bambi Douma and Joshua Herbold. Take a viewpoint and re-analyze the company. In doing your analysis, you may use outside information, but keep in mind that any market information should correspond to the timing of this case (2006).Remember, this is the final project for the class and your opportunity to display your mastery of all of the subjects covered in class. Please be sure to show your work and explain each decision and assumption you are making.

Board Perspective

Your job is to decide whether or not the management of PowerWater is making good decisions.

1. Funding request: Has management identified the correct amount of money required? What is the runway for this business if they get the investment? What is the runway without the investment?

2. Based on the amount of investment you have identified as correct, what is the impact on the current owners and the capital structure if this new investment is accepted?

3. Does this venture still make sense to proceed with? Is PowerWater a good opportunity?

4. If the company finds an investor, describe the terms that you would expect to receive. Pay special attention to the amount of money changing hands, the ownership shares, and the covenants included in the agreement.

Remember to pay close attention to the instructions and make sure you are as in depth as possible. You necessarily need to discuss the percent of ownership you will be giving up or purchasing, which necessarily requires you to find a specific valuation for the company.

Reference no: EM131489202

Questions Cloud

What is the optimum order size : The supplier charges $48 for each order. Assuming the store's annual demand of 5000 stones, and the annual holding/carrying cost 30% of unit cost.
Communication and feedback processes : Based on your KPIs, smart goals, communication and feedback processes and the organisation's operational plans.
Ratio analysis of ramsay healthcare pvt ltd : RATIO ANALYSIS OF RAMSAY HEALTHCARE PVT LTD. This assignment is a team task which involves self-learning, some 'real world' research and team-work skills
Discuss the six-step risk management process : Using the traditional, six-step Risk Management Process described in the module and this week's readings, go through the process using CSU-Global as your model.
Has management identified correct amount of money required : Has management identified correct amount of money required? What is runway for this business if they get the investment? What is the runway without investment?
New computer system can be purchased : If a new computer system can be purchased for $25,000 and will be depreciated using MACRS 3-year rates, and will save your firm $10,000 per year in labor costs
Calculate the pay-back period for each project : Strategic decision makers are required to be able to evaluate projects based on the long-term objectives of the firm as well as the project's ability to earn.
What is current price for the del monte bonds : what is the current price for the Del Monte bonds?
Wealth protection-insurance planning : Boon Teck has savings of $35,000 and shares worth $78,000. What is the additional amount of life insurance that Boon Teck needs?

Reviews

Write a Review

Corporate Finance Questions & Answers

  When the mnc develops an economic exposure strategy

When the MNC develops an economic exposure strategy, the ___ the price elasticity of demand, the ___ the incentive to hold down price and thereby expand sales.a) Lower, greaterb) Greater, lowerc) Greater, greaterd) Lower, lower

  Provide an example of a financial report and then explain

provide an example of a financial report and then explain in detail the steps in the financial analysis process.a

  Evaluating the two companies financial statements

A corporation has recently met with auditors to discuss scope of year's audit. Talk about the reason for an integrated audit and give a recent failure of a corporate governance.

  T-bill and foreign exchange markets adjust to situation

How might the British and American T-bill and foreign exchange markets adjust to situation - recent regulatory reform or change in federal or state laws that are intended to promote competition among financial intermediaries and how they are to do ..

  Explain how you rank each bond for risk and return

Determine the yield to maturity (YTM) on the bonds given the current price. Based on each bond's ratings and your determination of its yield to maturity, explain how you rank each bond for risk and return.

  Describe how value-at-risk is used as a tool

Describe how Value-at-Risk (VAR) is used as a tool to assist management with achieving its overall strategic financial goals?

  Compute the quick ratio using the balance sheet

Compute the following ratios using the balance sheet and income statement data you collected- Quick ratio, Inventory turnover, Debt ratio, Net profit margin, Return on Investment (or assets), P/E ratio and Return on equity.

  Financial statement required to expense for stock options

Accounting for Stock-Based Compensation, to employee stock benefits, including shares issued under the stock option plans and under the company's Stock Participation Plan, collectively called "options.

  How would you go about determine a cost of debt for company

Compute the cost of capital for the firm for the following. If the firm's bond are not frequently traded how would you go about determine a cost of debt for this company?

  Assuming the projects are independent

Assuming the projects are independent, which one or ones would you recommend? If the projects are mutually exclusive, which would you recommend?

  Calculate the simple interest rate

A car broker will sell you a used car for $5,534 with $534 down & payments of $160.56 per month for 36 months. Calculate the simple interest rate?

  How many shares of stock are currently outstanding

Given that the company has the following dividend policy: Dividends are paid quarterly based on the annual rate of $2.00 per share. How many shares of stock are currently outstanding?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd