Make a pro forma model for yummy

Assignment Help Financial Management

Reference no: EM131984905

Show the work on Excel please. The following sheet presents the balance sheet and value drivers of Yummy Company, which manufactures a very special tomato sauce. (You might want to copy the table into Excel.)

Yummy Company, Financial Model
Value Drivers
Sales growth	12%
Current assets/Sales	22%
Current liabilities/Sales	20%
Net fixed assets growth rate	5%
Cost of goods sold/sales	45%
Depreciation rate (of average fixed assets at cost)	20%
interest rate on debt	8%
interest earned on cash balances	4%
tax rate	36%
dividend payout ratio	25%
sales	2000000
WACC	16%
long term FCF growth rate	4%

Balance sheet
Cash	460000
Current assets	440000
Fixed Assets
At cost	4000000
Depreciation	500000
Net fixed assets	3500000
total assets	4400000

Current liabilities	400000
Debt	3000000
Stock (1500000 shares, issued at $0.5 each)	750000
accumulated retained earnings	250000
Total Liabilities + Equity	4400000

Additional model assumptions are as follows:

The FCF evaluation is for a 5-year period. In addition, a terminal value should be determined using the long-term FCF growth rate.

The debt principal repayments are $300,000 each year.

Cash is a plug in the model.

please show work on excel

Make a pro forma model for Yummy and computer the firm value using a DCF valuation model with year-end discounting.

Show in a graph the sensitivity of the enterprise value to the growth in sales;

Show in a graph the sensitivity of the enterprise value to the company's WACC.

Reference no: EM131984905

Questions Cloud

Determine the optimal economic life of each franchise : Use NPV to determine the optimal economic life of each franchise when the salvage values are as follows.

Adjust the balance of public and private power in society : Woodrow Wilson progressive agents of change, who would try to adjust the balance of public and private power in society.

What is the present value of an investment that promises : What is the present value of an investment that promises to pay the following: $240 received at the end of each year for 3 years.

Poetry to playing tennis with the net down : The poet Robert Frost compared writing free verse poetry to playing tennis with the net down. His analogy implies that rules such as rhyme

Make a pro forma model for yummy : Make a pro forma model for Yummy and computer the firm value using a DCF valuation model with year-end discounting.

Create the six tables shown on the diagram : Create the six tables shown on the diagram. Simulate a point of sale (A transaction header is a sale. A transaction item is an item in a sale).

How many periods are there : Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1,000, 20 years to maturity and is selling for $1,197.93.

Do you feel that it is acceptable to use slang : Do you feel that it is acceptable to use slang, colloquialisms, stereotypes, or sexist language in email correspondence at work

Longest period of peacetime economic growth in history : We look back at the legacy and the leadership of Ronald Reagan and use them to provide lessons not only for our national government

User Account

All Pages