FINANCE FINAL Exam
The exam involves an unknown company. The Excel workbook shows the five-year financial history.
State everything you can about this unknown firm and WHY you believe that is the case (financial-data/analysis supported evidence, please).
Part I: Unknown Firm-related questions:
1. What type of firm do you think this is? (What kind of business are they in?)
What is your basis for that conclusion?
- Use common sized values from the IS/BS and operating performance measures to guide your discussion.
2. Management and Investment:
How well do you believe the firm has been financially managed?
What is the factual basis of your conclusion?
- In addition to the prior valuation discussion, use profitability indicators, operating performance measures and solvency leverage indicators as the basis for your answer.
3. Two-years forecasts for:
Income Statement:
Balance Sheet:
- Gross PP&E
- Working Capital
Make sure your assumptions are well-documented and supported.
ADDED for FINAL EXAM
4. Calculate the EnV: EBITDA value for the unknown company using the data provided for the period ending August 2017. What does the value mean? Do you think this value is it reasonable given your answer to question #1. Why or Why not?
Part II: Project Financial Analysis (Tornado Diagram Interpretation):
Your boss has asked you provide an analysis and recommendation for a proposed manufacturing plant expansion project. The project is highly classified within the company (information distributed on a "need to know" basis only) and has been code-named "Big Dog." Your subordinate has done lots of calculations and presented you with the Tornado Diagram (see next page). Your boss would like to know:
1. Would you recommend going forward with this project, given the base-case assumptions. Why?
2. What are the key risks of this project? How significant are these risks to the project's future success? How did you reach these conclusions?
3. What more/better information should you and your boss try to obtain before giving the "green light" to this project? Explain.
Attachment:- Assignment Files.rar