MBA
\nCOURSE : FINANCIAL MANAGEMENT (FM)
\nGLOBAL CASE STUDY
\nIn order to succeed on the course FM, as stated in the Syllabus, it is necessary to make a Global Case Study in the form of a financial model in excel. The goal is to apply in practice the financial tools you have learned on FM lectures. It is a specific task whose solution makes it possible to understand and manage corporate finance.
\nGlobal Case study: FINANCIAL MODEL
\nObjective: To create an excel financial model associated with formulas from accounting to cash flow to Valuate the company, to calculate CF, FCF, optimal capital structure and to determine the risk of investment (CAPEX) using different techniques for measuring investment profitability. You will have a company with its financial forecasts in excel with a possibility to do scenario or sensitivity analysis.
\nPage 1 (Pro forma): Make a page where you have 3 last years (Year N, Year N-l, Year N-2) Balance sheet data, Income statement (P&L) and Cash flow statement. You have to choose the company listed you wish from one of the following web sources : www.nasdaq.com, www.finance.yahoo.com, www.marketwatch.com, www.reuters.com, or other. Please add the name of source you chose in your excel sheet.
\nPage 2 (Inputs): Make a page of inputs that will put all your assumptions: growth\/decline rates of Revenues and Expenditures and other various inputs you will use in the financial model. On this page all inputs are manually entered. Use one large investment in the beginning year (CAPEX) Year N+l with an assumption that CAPEX is equal to 2% of the Total Assets of the Year N
\nYear I Year 2 Year 3 Year 4 Year 5
\nFinancial Plan<\/p>\n
Key Assumptions<\/p>\n
10.0%
\nSales increase\/decraese (Student decision)
\nIncome tax
\nInterest rate on Long term financing (Loan) (Student decision)
\nCoupon rate on Long term financing (Bonds) (Student decision) Pay out ratio
\nNumber of stocks of the company
\nPage 3 (Amortization): Make an Amortization calculating page for all your assets including the new CAPEX annually and cumulatively with linear (straight line) amortization policy during the life of your project ( help with nursing paper writing from experts with MSN & DNP degrees). Consider the amortization cost for annual future amortization of existing Assets same as average annual amortization of last 3 years from your P&L. Add a separate line for the new amortization cost of your new CAPEX using the linear amortization from Year N+l to the end of your project ( help with nursing paper writing from experts with MSN & DNP degrees).
\nPage 4 (Projections of P&L): Make a project ( help with nursing paper writing from experts with MSN & DNP degrees)ion of the profit and loss account for 5 years based on the assumptions from the page inputs. Your revenues and costs from the Inputs page should be increased\/decreased for rates of revenue\/costs growth \/ falls. Revenues (Sales) for the Year 1 should be taken from the Total Revenues from the Year 0 (Year N) increased\/decreased by the rate of growth\/decline of your Total Revenues in Year 0.
\nPayout ratio for dividends each Year 1 here after correspond to the year N+l.
\nP&L (Mil.$)
\nSales
\nCost of goods sold-COGS (70% of sales) year
\nYear 1 10%.
\nYear 2 Income
\nYear 3 tax
\nYear 4 30%
\nYear 5<\/p>\n
Gross eamings
\nGeneral and administrative costs (10% of COGS)
\nAmortisation(2% of total Assets)
\nEBIT
\nInterests on Loan (only from the loan and bonds of new CAPEX) Income tax
\nNet income\/Loss
\nNumber of stocks in million
\nEPS
\nEPS share
\nDividends
\nRetained eamings
\nPage 5 (Debt): Based on page 2, make a table of amortization of loans and bonds, calculation of interests and coupons, principals using formulas (PMT or other) Use your bonds, loans and equity to finance your assets and investments. Loan has an interest rate and Bonds have a coupon rate. Both debt sources of funding are used for the duration of the investment.
\nFor cost of bonds you can use yield which is published on web pages such as www.bloombera.com\/markets\/rates-bonds or other source.
\nPage 6 (Cash Flow):
\nCalculate net working capital and NWC investments. To do that use the simplified calculation Receivables and Stocks for Current assets and Liabilities for current liabilities.
\nCurrent assets
\nReceivables (25% of sales)
\nStocks (6% of COGS)<\/p>\n
Current liabilities
\nPayables (8% of COGS)<\/p>\n
To obtain the annual receivables, Stocks and payables you should calculate it every year and determine the annual investments in such items for the purpose of your CF statement here below. MBA COURSE : FINANCIAL MANAGEMENT (FM) GLOBAL CASE STUDY In order to succeed on the course FM, as stated in the Syllabus, it is necessary\u2026<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7643,7642,7645,7644],"tags":[7678,8989,8988,7387,633,8991,630,8987,8994,8467,15,8990,7656,7571,8993,66,8992],"class_list":["post-105117","post","type-post","status-publish","format-standard","hentry","category-custom-same-day-essays","category-custom-writings-writers","category-do-my-essay-mla-format","category-write-my-paper-hub-writers","tag-best-custom-paper-writing-service","tag-best-online-paper-writing-service","tag-best-paper-writing-service","tag-best-research-paper-writing-services","tag-cheap-research-paper-writing-service","tag-cheapest-paper-writing-service","tag-college-paper-writing-service","tag-free-paper-writing-service","tag-free-term-paper-writing-service","tag-paper-writing-service","tag-paper-writing-service-reddit","tag-professional-paper-writing-service","tag-someone-to-write-my-paper","tag-websites-that-write-papers-for-you","tag-what-is-the-best-paper-writing-service","tag-write-my-paper","tag-write-my-paper-for-me-free"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/105117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=105117"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/105117\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=105117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=105117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=105117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nMake the cash flow calculations page from the Projections page.
\nCash Flow statement (Mil.$) Year 1 Year 2 Year 3 Year 4 Year 5
\nCF from Operating activities
\nNet incomenoss
\n+ Amortization
\n– Receivables
\n– Stocks
\nTotal CF from operating activities
\nCF from Investment activities
\n– CAPEX on from new investment
\nTotal CF from Investment activities
\nCF from finance activities
\n+ Long term debt (only new loan and bonds) + Equity
\n– Dividends
\nTotal CF from finance activities
\nTotal Cash at end of period
\nDiscount all your Cash Flow’s with WACC assuming the CF of your last year (Terminal value) is growing in the infinite at a g rate ( % growth rate of CF forever) of 2% annually.
\nThe discount rate (cost of capital) is the weighted average of the cost of capital (WACC) of all your long-term (loan, bonds and equity) funding sources. You have to calculate WACC in this page.
\nCalculate the shareholder’s cost using the DDM model (Gordon). For bonds use the yield rate you should calculate or find it from the financial statement of your company if company has issued the bonds. For Loan use the interest rate you estimate or the lowest interest rate from the financial statement of the existing Loans.
\nPage 7 (Scenarios): Make a page by using the CF’s obtained from the page 6 including the initial investment. Consider these CF’s as base case scenario. Below, add the worst case scenario where you have an increase of your investment by 20%, and all CF’s decrease by 5%. Add a best case scenario where you can reduce the investment by 12% and increase all the CPS by 6%. Calculate the XNPV and XIRR for each scenario by setting the exact dates for each year of your CF (every 30 of June of each year) with the investment starting on 01.01.Year N+l.
\nAnalyse the optimal capital structure Marketing Assignment Help UK and what would you do as a CFO to improve the capital structure and to increase the company value. Calculate WACC in worst and best case scenarios according to the assumptions you specify.
\nPage 8 (Financial Management): On this page, make an analysis of the results you got. Apply the financial management to understand your company’s status, value, risk, return for shareholders and business success and all shortly describe. Calculate the value of a Marketing Assignment Help UK<\/a> company with the help of discounted FCFs in infinite (Gordon’s model for terminal value) and using WACC. Calculate the stock value based on the method
\nCalculate PER (market price 12% higher than EPS) Calculate the NPV, IRR and payback period relative to the initial investment.
\nValue of the company should be calculated based on the following logics :
\nDFCF CALCULATION Year 1 Year 2 Year 3 Year 4 Year 5
\nEBIT -Income tax
\nEAT
\n+AMORTIZATION
\n-CAPEX
\n– NWC change
\nFCF
\nTerminal Value
\nDFCF
\nEnterprise Value
\n+Cash
\n-Long Term Debt and Bonds
\nMarket value of Equity Number of shares
\nValue of Equity\/share
\nDiscount all your Free Cash FloWs with WACC assuming the FCF of your last year (Terminal value) is growing in the infinite at a g rate ( % growth rate of CF forever) of 2% annually. For Cash item use the cash amount from the balance sheet of your company from the Year N.
\nPage 9 (Conclusion): On page 10, -Conclusion,- explain the process, model problems, how you as a CFO can improve your company’s business by using the entire above analysis to maximize your revenue and minimize your expenses. Your goal is to repay long-term loan and bonds, pay dividends to shareholders, and ensure that IRR is greater than WACC. Once you calculate the XIRR on page 7 and WACC in base case scenario explain whether you should launch the investment in your project ( help with nursing paper writing from experts with MSN & DNP degrees) or not. Explain how you would further increase IRR and reduce WACC and increase the Enterprise value. What do you suggest to the Executive Board as an incentive to achieve the planned goals of raising the company’s value and stock price.
\nNotes-
\n-Do not copy paste datas or exact form from preparatory case which has to be used only to help students to understand the Final Assignment
\n– You need an Introduction, an Explanationi and a Conclusion
\n– First project ( help with nursing paper writing from experts with MSN & DNP degrees)ion year is N+l (or Year 1)
\n– An additional plus IS If you have a detailed explanation of whether your stocks are overvalued or undervalued. Is IRR acceptable to Investors? How to increase the value of a company for shareholders ? Is the financing structure optimal?
\n– An additional plus is if you have good financial and adequate formulas in excel. In the model everything must be linked With formulas In excel (sum, If, NPV, IRR PMT, Price, Yield etc)
\n– you have to put data sources and to explain where have you found your datas and inputs
\nServices Marketing GBD110
\nSustainability Services Marketing \u2013 Assignment (Due date : 18th March)
\nWrite an essay (200 words, APA style formatting) discussing the Pros and Cons of adding Partnership to the existing 7P\u2019s in the Services Marketing Mix. Reference ONLY the research article provided \u201cBuilding Sustainability into Services Marketing: Expanding Decision-Making from a Mix to a Matrix.\u201d
\nFurther instructions:
\n1. Reference at least 10 points from the research article to support your argument. You get to determine the balance between pros and cons.
\n2. Marks will be awarded for how the essay is developed. Pay attention to language and formatting style.<\/p>\n","protected":false},"excerpt":{"rendered":"