Please read and analyzeTekno is a company involved in the Technology sector specializing in Data Storage and Computer Peripherals. The company is seeking a bank loan and so is preparing an internal assessment of its overall health, financial needs, as well as the potential for value enhancing future investments. Some initial data has been gathered (please see the Historical Financial Statements and Similars sheets in this file.
Your task is to implement the following analysis:
1. Provide an assessment of Tekno's overall financial health. For this part, you are encouraged to use as many of the tools we have covered as possible.
2. Provide an estimate of Tekno's financing needs for 2017.
I have to come up with a forecast ratio by using CAGR (compound annual growth) goal seek function of excel
3. Because the company needs to quantify its future value creation capability, you are also asked to estimate the company's Weighted Average Cost of Capital. You may assume the following:
a) Corporate tax rate for Tekno is 15%
b) Target Capital structure (D/V) for Tekno is 20%
c) The group of similar companies is as listed in the Similars sheet provided in this file.
d) To estimate the corporate tax rate for for the similars, you may use the actual taxes reflected in the most recent Income Statement found in Yahoo Finance.
e) For leverage calculation of similars, your D can be assumed to be equal to Total Debt as presented in Yahoo Finance
Instructor Notes:
1. The optimal format for this report is to provide two files: a word document with your responses and an excel document that contains your calculations.
2. The Word document should (a) clearly identify the question (in bold) and then proceed to provide the answer below it. (b) incorporate relevant tables, graphs or calculations within the body of the word document. In essence, your document should be self-contained in that I should be able to read and understand your analysis without having to continuously go to the excel sheet.
3. The excel sheet should present calculations in a well-structured and organized manner with your answers clearly marked (this is important, as I will not "chase" your answer). While your answers are actually presented in the word document, the supporting excel file will be used to check or clarify any calculation.
4. Please make sure to always explain your steps and clearly identify any additional references you may use. Regarding the former, keep in mind that showing how much you thought about the steps is more important than getting the "correct" answer. Show me that you understand what you are doing.
5. Keep in mind that the score will be a function of two criteria: (a) Did you address the question being asked? and (b) How does your response compare to others?
Attachment:- Project Handout.xls