Estimate the companys wacc, Financial Management

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.
Posted Date: 3/9/2013 2:46:02 AM | Location : United States







Related Discussions:- Estimate the companys wacc, Assignment Help, Ask Question on Estimate the companys wacc, Get Answer, Expert's Help, Estimate the companys wacc Discussions

Write discussion on Estimate the companys wacc
Your posts are moderated
Related Questions
Suppose the bid-ask spot prices for one British pound are $1.50 and $1.60 respectively. 1. Compute the bid-ask prices for one US dollar in terms of British pound. 2. Suppose

Chrysler decides to avoid the problems associated with exporting autos to Japan by building a plant in Japan. The cost is expected to be $1 billion with $500 million to be spent no

Two companies are identical in all aspects except in the debt-equity profile. Company X has 14% debentures worth Rs. 25,00,000 whereas company Y does not have any debt. Both compan

Why do a Split? A 4 x 1 Split is an operation by which a shareholder now owns 4 shares for every share he/she had before. Logically, the stock market value of each of these new


Determine the example of Future Value of an Annuity An annual payment of 7000 $ is invested at 5% per annum compounded yearly. What will be the amount after 20 years? Solut

One of the most important objectives of statistical analysis is to get one single value that describes the characteristic of the entire mass of unwieldy

Explain how Eurocurrency is created. Answer: The center of the international money market is the Eurocurrency market. A Eurocurrency is a time deposit of money in an internationa

a) Social marketing is the use of normal marketing methods to achieve the benefits of social change, such as informing the public about the harm of under-age drinking, rather than

Q. Describe about Permanent Working Capital? Permanent Working Capital: - The requirement for working capital fluctuates from time to time. Nevertheless to carry on day-to-day