PART V: Financial Analysis of Company’s Past and Present Performance

1. Determine the following for your company:

a. Cost of debt capital using the After-Tax Cost of Debt model

b. Cost of equity capital using the CAPM model

c. Weighted cost of capital 

d. Dividend Discount Framework

Use the first year of your forecasted financial statements to perform these calculations. You DO NOT have to do these calculations for all the years, only the first year of your forecasted financial statements.

Must show all work and calculations. Must provide summary or where information was gathered or calculated for assumptions.

The work should be performed on a separate tab in your Financial Analysis Excel file.  

2. For both of the valuation models below, develop a valuation for your company.

a. Discounted Cash Flow Model

b. Residual Operating Income Model

These models require multiple years of financial information; therefore, you will use more than just the first year of your forecasted financials statements.  You will use all the years of your forecasted financial statements.

Must show all work and calculations. Must provide summary or where information was gathered or calculated for assumptions.  This value would be what you would use to buy or sell the company.

The work should be performed on a separate tab in your Financial Analysis Excel file.  

3. A) Prepare the company and equity intrinsic value for your company using all of the following Multiple Models:

a. NOPAT Multiple

b. Net Income Multiple

c. Net Operating Assets (NOA) Multiple

d. Book Value Multiple

B) Also calculate the Price per Earnings Ratio (P/E) for your company.

Use the first year of your forecasted financial statements to perform these calculations. You DO NOT have to do these calculations for all the years, only the first year of your forecasted financial statements.

Must show all work and calculations. Must provide summary or where information was gathered or calculated for assumptions