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FIN 700 Milestone Two

FIN 700 Milestone Two

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Product Description<br />

Overview: The final project for this course is the creation of a financial analysis and<br />

planning report, including a presentation to the executive management team. For<br />

<strong>Milestone</strong> <strong>Two</strong>, submit a draft of your financial projections (Component 1: Section III).<br />

Project the next three year’s financial statements and free cash flows. Using the<br />

projected cash flows, use the cost of capital as a discounting rate to obtain the<br />

present value of the firm. Analyze the projections compared to the current market<br />

value of the firm.<br />

Prompt: <strong>Milestone</strong> <strong>Two</strong> should contain the following sections:<br />

III. Projections: Based on the company’s financial statements, your analysis, and any<br />

additional evidence, project the company’s performance for the next three years. Are<br />

there any areas of concern? Is the company in good financial shape for moving<br />

forward? Discuss a best-case, worst-case, and most likely scenario, including a<br />

sustainable growth rate for sales based on existing financial statements and any<br />

macroeconomic and financial market conditions that might impact the firm’s strategic<br />

objectives. You must thoroughly address the assumptions behind your predictions,<br />

supported by spreadsheet calculations. At a minimum, your analysis must cover: A.<br />

Weight of equity B. Weight of debt C. Cost of debt D. Cost of equity E. Tax rate F.<br />

Value of the company’s stock compared to your forecasted value and free cash flow<br />

Guidelines for Submission: Your draft must contain all of the elements listed above. It<br />

should be at least 5 pages in length (excluding the title page, references, supporting<br />

calculations, and appendices) and should follow APA guidelines. You must include


calculations and appropriate graphs, tables, references, and other appendices as<br />

needed to support your written analysis. Cite your sources within the text of your<br />

paper and on the reference page.

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