What is the businesss current market value

Assignment Help Financial Management

Reference no: EM131134493

Part -1:

Question:1. Recent Financial Performance

a. Assess what the organization's consolidated income statements for the last three years say about its financial performance. Use relevant indicators, graphs, and spreadsheets to support your narrative. (Include all spreadsheets in an appendix.) For example, what do the amounts and year-to-year changes in revenue, operating income, net profit or loss, and Earnings Before Interest, Taxes, Depreciation, and Amortization tell you? Do any items stand out?

b. Assess what the organization's consolidated cash flow statements for the same time period say about its financial performance. Use relevant indicators, graphs, and spreadsheets to support your narrative. For example, what do the amounts and year-to-year changes in cash from operating activities, cash from investing, cash from financing, and total cash flow tell you? Do any items stand out?

c. Assess the organization's underlying financial performance. Support your answer with the analysis above and relevant research. For example, is recent performance substantially affected by unusual events such as a major acquisition or spin-off? Is the business thriving or struggling in its industry? How do you know?

2. Current Financial Health

a. Assess how the organization is capitalized and what that tells you about its financial health. Support your response with relevant graphs, spreadsheets, and indicators such as "cash and cash equivalents," total debt, shareholders' equity, current ratio, debt/equity ratio, and Days Sales Outstanding (DSO). For example, does the organization have enough cash for payroll and other bills? Does it have the right mix of debt versus equity (stock)? How do you know?

b. Does the organization have the right amount of cash and other resources (e.g., key people, technologies, reputation, physical assets, etc.) to fuel future growth? What does this suggest for business decisions? For example, if it has too much cash, should it pay a large dividend, repurchase its own shares, or reinvest the excess funds?

c. Assess the financial value of the company using relevant indicators. What does your assessment imply for future business health and performance? For example, what is the business's current market value? What is its price-to-earnings ratio? What do these suggest about investor perceptions of the business's future?

Part - 2:

Projections

1. Project the organization's likely consolidated financial performance for each of the next three years. Support your analysis with an appendix spreadsheetshowing actual results for the most recent year, along with your projections and assumptions. Remember, your supervisor isinterested in fresh perspectives, so you should not just replicate existing financial statements, but should add other relevant calculations or disaggregations to help inform decisions.

2. Modify your projections for the coming year to show a best- and worst-case scenario, based on the potential success factors and risks you identified. As with your initial projections, support your analysis with an appendix spreadsheet, specifying your assumptions and includingrelevant calculations and disaggregations beyond those in existing financial reports.

3. Discuss how your assumptions, forecasting methodology, and information gaps affect your projections. Why are your projections appropriate? For example, are they consistent with the organization's mission and priorities? Aggressive but achievable? How would changing your assumptions change your projections?

Attachment:- Assignment.rar

Reference no: EM131134493

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