Questions for Finance Assignment -
Scenario - Pacific Container Corporation: Some Financial Concerns
1) Assess the current financial health and recent financial performance of the company. What strengths and/or weaknesses would you highlight to Lillian Chen?
2) Forecast the firm's financial statements for 2015 and 2016. What will be the external financing requirements of the firm in those years? Can the firm repay its loan within a reasonable period?
3) What are the key driver assumptions of the firm's financial performance? What are the managerial implications of those key drivers? That is, what aspects of the firm's activities should Lilian Chen focus on especially?
4) What is Pacific Container's weighted-average cost of capital (WACC)? What are the key assumptions that especially influence the WACC?
5) What are the free cash flows of the packaging machine investment? Should Lilian Chen approve the investment?
NOTES:
Focus on quantitative analysis. Thus, the write-up should be (a) concise and to the point and (b) based on your quantitative analysis. The write-up should not exceed three (3) pages plus however many pages you need for your spreadsheet analysis. It is essential that we can follow and understand the spreadsheets. That means to annotate and format the spreadsheets appropriately. The grade will be partly based on how the data is presented.
Attachment:- Assignment Files.rar