Prepare a 700-1,050 word response, plus Excel spreadsheet, for the Mini-case at the end in Fundamentals of Corporate Finance (Brealey). Specifically, the Learning Team will need to follow all assumptions in the Mini-case precisely and carefully to complete the following:
a. Identify the steps necessary to financially plan and forecast for 2005, 2006, and 2007,
b. Project future years using the growth rate assumptions in the Mini-case,
c. Determine what type and amount of financing may be required, taking into account the impact on leverage ratios,
d. Determine the impact of rising interest rates on future performance,
e. Assess alternative capital structures and impact on debt ratio and return on equity.
f. Separately, after completing (a) through (e) above, explain how outsourcing certain cost of goods sold items would impact this planning and budgeting process