Estimate the companys wacc, Financial Management

Assignment Help:

Assemble all other inputs/assumptions based on the past data. Use your best judgment to have the most reasonable estimates.

Tasks

1. Prepare an Excel spreadsheet containing the following:

  1. Construct the next five-year pro-forma statements (income statement and balance sheet)following the FSM_B.xls file format.
  2. Estimate annual FCFF.
  3. Estimate the company's WACC.
  4. Estimate the terminal value and the enterprise value.
  5. Conduct the sensitivity analysis, scenario analysis, and Monte Carlo simulation on the enterprise value.

2. Prepare a PowerPoint deck including a high-level executive summary and conclusions, together with an appendix containing details such as assumptions and robustness checks.

Notes

  1. Each company includes different line items in its income statement and balance sheet. Your pro forma statements should resemble them as much as possible. You should not usea format identical to my filedemonstrated in class.
  2. This project is due on the 6th class.Late submission won't be accepted.
  3. Upload the PowerPoint and spreadsheet fileson the Blackboard.  If you log in to your Blackboard site, you will see Assignments on the left banner menu. Select Assignments and then click ProjectFile Submission. Then, upload your files. The file names should be your name (lastname_firstname). You won't be able to upload after the start time of the 6th class.
  4. When you prepare the final report of the project, keep in mind that you are submitting the report to your CEO. Your PowerPoint should start with the executive summary, in which you summarize important inputs/assumptions of your model, your estimated values, and conclusion whether the company is undervalued or overvalued. Besides the quality of analysis, the mannerin which the analysis is presented will also be graded. The CEO, who may not have a finance background, should be able to easily understand your work. And all your assumptions should be reasonable and realistic.After building the pro-forma statements, you should examine the results carefully to check forany unreasonable inputs/assumptions.

Related Discussions:- Estimate the companys wacc

Calculate the total extra annual cost, Question : (A) The following dat...

Question : (A) The following data for the current year relate to a sterile pack purchased by the Apollo Hospital: Annual demand                        90,000 units Ann

What do you understand by business cycle, Q. What do you understand by Busi...

Q. What do you understand by Business cycle? Business cycle: business cycle refers to the alternate expansion and contraction in the general business activity. in a period of t

Define the term- profit, Define the term- profit The term "profit" can ...

Define the term- profit The term "profit" can be used in two senses. As an owner-oriented concept it refers to amount and share of national income that is paid to owners of bus

Caselets, How would you judge the potential profit of Bajaj Electronics on ...

How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit.

Convertible bonds, Convertible bonds are the debt instruments issued which ...

Convertible bonds are the debt instruments issued which can be converted after a pre-specified date for a pre-specified number of securities (generally equity stock). I

Answer to an exercise, dear, I found an exercise on the Internet which coul...

dear, I found an exercise on the Internet which could help me has better to understand the finance, but there were no answers. What is that you can help me has to solve it. I''m fr

Function of stock market, Functions of a Stock Exchange The stock excha...

Functions of a Stock Exchange The stock exchange is a market place where investors trade in securities. It is a competitive market involving large numbers of buyers and sellers

Role of the public expenditure management system, Question : (a) The ro...

Question : (a) The role of the Public Expenditure Management System (PEMS) is to allocate and use resources responsively, efficiently and effectively'. Briefly explain the abo

Explain that many u.s. firms simply do not hedge, Recent surveys of corpora...

Recent surveys of corporate exchange risk management practices point out that many U.S. firms simply do not hedge. How would you explain this result? Answer:  There can be severa

Find out weighted average cost of capital, The Beta Corporation has an opti...

The Beta Corporation has an optimal debt ratio of 40%. Its cost of equity capital is 12% and its before-tax borrowing rate is 8%.  Given a marginal tax rate of 35%, calculate (

Write Your Message!

Captcha
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