Capital budgeting model, Financial Management

Assignment Help:

Develop a scenario for the future growth of the firm e.g. through using a SWOT analysis to identify an appropriate outcome (this will be covered in lectures)

• If it is to grow organically, identify the market opportunities for growth.

• If it is to grow by acquisition, identify the potential take-over target(s) and justify the choice.

• If it is to expand overseas, identify a possible joint venture partner in the country targeted.

• If it is to be acquired, clearly identify the reasons why, and the potential acquirer.

• Include analyses of the factors contributing to the decision, including any options discarded. 

Support the strategy

• Provide a capital budgeting model that demonstrates the financial business case for the chosen strategy. (Use a time period longer than 3 years for this model).

• Include equity or debt raising as necessary to finance the recommended strategy. The spreadsheets provided on the Damodaran web site may help (see above). If the firm has sufficient internal resources to fund the strategy, they must be clearly identified.

• Pay attention to the impact of the strategy on capital structure, gearing ratios, dividend payouts, any liquidity concerns, management strengths and weaknesses, etc.

  • Describe the characteristics of the financial facilities to be used for any funds raised.
  • Include management of financial risks as necessary.
  • Provide a financial profile of the firm after the growth strategy is complete i.e.

extend the Excel spreadsheet used in Step 3 forward by 3 years using the ratios calculated previously, (see Gitman et al., Chapter 3 for an example of how to do this) and then add the data from the first 3 years of the capital budgeting model.


Related Discussions:- Capital budgeting model

Agency theory, AGENCY THEORY An agency relationship may be defined as a...

AGENCY THEORY An agency relationship may be defined as a contract under which one or more people (the principals) hire another person (the agent) to perform some services on th

Determination of credit terms, Determination of Credit Terms:- The sec...

Determination of Credit Terms:- The second feature of receivable management, subsequent to setting the credit standards and assessment of credit worthiness of the customers, i

Ratio analysis, How can we calculate ration analysis in financial managemen...

How can we calculate ration analysis in financial management?? Determine the ration analysis? Need assignemt help on this topic

Negotiation with bidders, N egotiation You can also negotiate with the...

N egotiation You can also negotiate with the bidders based on the requirements as mentioned below. You can negotiate only with the lowest evaluated responsive and qualified

What are the limitations of trade payable day''s ratio, What are the Limita...

What are the Limitations oftrade payable day's ratio? Year-end trade payables may not be representative of the year. Credit purchases are VAT exclusive in the income sta

Budget setting styles, Advantages and disadvantage of pacipatory style of b...

Advantages and disadvantage of pacipatory style of budgeting

What is the meaning of leverage, What is meant by Leverage? What are its di...

What is meant by Leverage? What are its different types? With what type of risk is associated with each type of leverage. (Explain with illustration)

Explain the factors that are responsible for recent surge, What factors are...

What factors are responsible for the recent surge in international portfolio investment (IPI)? Answer:  The recent surge in international portfolio investments denotes the global

Describe the meaning of financial management, Q. Describe the Meaning of Fi...

Q. Describe the Meaning of Financial Management? Meaning of Financial Management: - Financial management is a vital as well as an integral part of business management. It demot

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