FINANCE 404 ASSIGNMENT
Projections: Based on the company’s financial statements, your analysis, and any additional evidence, project the company’s performance for the next
three years. Are there any areas of concern? Is the company in good financial shape for moving forward? Discuss a best-case, worst-case, and most likely
scenario, including a sustainable growth rate for sales based on existing financial statements and any macroeconomic and financial market conditions
that might impact the firm’s strategic objectives. You must thoroughly address the assumptions behind your predictions, supported by spreadsheet
calculations. At a minimum, your analysis must cover:
A. Weight of equity
B. Weight of debt
C. Cost of debt
D. Cost of equity
E. Tax rate
F. Value of the company’s stock compared to your forecasted value and free cash flow
Guidelines for Submission: Your draft must contain all of the elements listed above. It should be at least 5 pages in length (excluding the title page, references,
supporting calculations, and appendices)
