Case 1- EuroJet (C) 2017 - EuroJet is a low cost no frills airline which is registered in Ireland and listed on the Dublin Stock Exchange. The company was founded in the 1980s as a small internal airline. However, the airline had ambitious growth plans.
REQUIRED:
Evaluate the EuroJet (UK) plc proposal from a financial perspective and advise the Board whether the project should be given approval. Also, advise the Board on the forex risk aspects of the project. You should support your arguments with relevant theory and calculations.
Your answer should take the form of a written report of approximately 2500 words excluding appendices and the reference list. In addition, submit an Excel spreadsheet containing your calculations.
Guidance for the preparation of your report.
The purpose of this assignment is simply to give you the opportunity to demonstrate that you have acquired the knowledge and skills identified in the Module Guide and that you can apply them in a typical business situation.
You should approach the task as a business manager dealing with a ‘real' business and should:
a) Adopt a coherent approach to dealing with the set task with a clearly stated business purpose.
b) Identify an appropriate theoretical dimension and consider the implications for practice.
c) Adopt appropriate analytical methods and a critical perspective.
d) Refer to empirical work where appropriate.
Do refer to the assessment criteria given in the Module Guide which gives a general outline of how marks will be awarded.
Case 2 - Bellingham plc
Task 1
Analyse Bellingham's current financial position using relevant financial ratios. You should show the calculation of the ratios and provide interpretation of the results.
Task 2
Prepare an annual profit forecast and cash flow forecast for American Creations. You should create an Excel model using linked formulae. (5 year horizon?)
Task 3
Calculate Bellingham's cost of capital, using alternative methods and arriving at the most appropriate figure.
Task 4
Complete an investment appraisal of the American Creations proposal assuming the valuation suggested in the case using a variety of methods and evaluate the results. Do a sensitivity analysis of the proposal and interpret the results.
Task 5
Calculation and discussion of alternative valuations for acquiring the share in American Creations and how these would impact on the investment appraisal.
Task 6
Evaluate the foreign exchange exposure aspects of the American Creations investment project on behalf of Bellingham plc. Advise the firm on how their foreign exchange exposure might arise, its possible magnitude, and, how it could be managed should the investment project go ahead.
Task 7
Identify alternative methods of financing the acquisition of American Creations and consider which is the most appropriate.
Attachment:- Case Studies.rar