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
Hedge funds are short two types of funding options. Describe in detail what these options are.   Describe why these options become more valuable during a financial crisis.   During

Define intermediation The financial system makes it probable for surplus and deficit economic units to come together, exchanging funds for securities, to their mutual advantage

SCOPE OF FINANCE FUNCTION In several businesses, based on the complexity and size of financial decision-making, the scope of finance function may be categorized into incidenta

This assignment is an analysis of a U.S. publicly-traded company; its common stock could be a prospective investment. The report is due in Week 10, in needs to be at least 5 pages

2010 equity balance required: (600-20 - 25 - 15 - 20)= 520 employees eligible Total expected equivalent value = 520 x 500 options x $1.48 = $384,800 $384,800 x 3/4 years = $28


A firm has $700 in inventory, $600 in fixed assets, $600 in accounts receivables, $800 in accounts payable, and $50 in cash. What is the amount of the present assets?

What can a financial institution Frequently do for a deficit economic unit (DEU) that it would have difficulty doing for itself if the DEU were to deal directly along with an SEU?

Explain the Cash and cash equivalents Cash and cash equivalents include: Bank and cash balances Short term investments that are highly liquid and can be converted

Investment Strategy OF HEDGE FUNDS After the Funds are raised from genuine investors, the next step for Hedge Funds is to invest them as per the investment objectives and strat