You must prepare an Excel file and a 3-4 page Equity Research Update

Anonymous
timer Asked: Nov 17th, 2018
account_balance_wallet $20

Question Description

Case 3: Valuation

Context: You recently joined Morningstar as an equity research analyst. Your task is to value a firm from the restaurant industry using relative and discounted cash flow valuation techniques. Use your financial projection from Case 2 to value the firm – you are free to change the assumptions you made in Case 2.

You must prepare an Excel file and a 3-4 page Equity Research Update that includes an investment thesis and valuation as in the McDonald’s Morningstar Equity Analyst Report. You do not need to include items other than the investment thesis and valuation but you may include additional items if you choose to do so. Your write up must be 4 pages or less.

For the firm you selected find:

1. The enterprise value

2. The total equity value (market capitalization)

3. The implied share price

You must find each of the above values using each of the 5 approaches covered in class. Note that in approaches where you use a multiple DO NOT simply use the firm’s multiple but rather the multiple of similar firms. The idea is to see if the current multiple applied by the market is accurate.

Ø Create data tables to perform sensitivity analysis on the results from approaches C and D.

Ø Discuss the results under the various scenarios created in Case 2.

Ø Which assumptions are most critical to the analysis?

Ø Summarize your conclusions. Do you think the stock is currently fairly valued in the market?

For EXCEL file, I already did every thing. I want report beads on outline

Unformatted Attachment Preview

Wendy's Assumptions Income statement Revenue Cost of sales of revenue Depreciation and amortization % PPE General and administrative % sales Other operating expense, net Other income, net Interest expense rate Investment income, net Income taxes Hist. Hist. Hist. Proj Proj 2015 2016 2017 2018 2019 13.7% -37.629 0.8 3.9% 52.2 31.2% -23.3% 56.6% 10.0% 17.1% -60.396 1.0 4.6% 0.7 35.7% -14.8% 49.1% 10.5% 17.0% 73.42 1.6 4.3% 2.7 92.1% 15.9% 49.5% 11.0% 17.5% 73.42 2.0 4.5% 2.7 27% 6.9% 50.5% 11.5% 17.0% 73.42 2.0 4.5% 2.7 27% Balance Sheet - assets CAPEX 13.5% Accounts receivable, % sales 5.6% Inventories % COGS 0.4% Prepaid expenses and other current assets % sales 9.6% Goodwill 770.78 Other intangible assets 1339.6 Investments 58.4 Other assets 95.5 10.4% 10.9% 0.4% 6.6% 741.41 1322.5 57.0 173.5 6.7% 12.0% 0.5% 6.8% 743.33 1321.6 56.0 308.6 16.0% 12.5% 0.6% 8.0% 743.33 1321.6 56.0 350.0 14.3% 12.5% 0.6% 8.0% 743.33 1321.6 56.0 380.0 24.7 3.4% 12.6% 446.5 39.8% 30.2 3.8% 18.6% 299.1 55.9% 30.2 4.5% 19.0% 455.0 40.0% 9.3 30.2 4.5% 21.8% 455.0 40.0% 9.3 47.0 2878.6 -290.9 -2043.8 -63.2 262.2 266.7 8.7% 47.0 2886.0 -163.3 -2150.3 -46.2 244.2 252.3 12.0% 47.0 2886.0 -163.3 -2150.3 -46.2 244.2 252.3 47.0 2686.0 -163.3 -2150.3 -46.2 244.2 252.3 12.0% 12.0% 65.9% Liabilities Current portion of long-term debt 23.3 Accounts payable % COGS 4.4% Accrued expenses and other current liabilities% COGS 10.1% Deferred income taxes 459.7 Other liabilities % COGS 23.7% Debt repayment Equity Common stock Additional paid-in capital Accumulated deficit Common stock held in treasury Accumulated other comprehensive loss Weighted Avg. Basic Shares Out. Weighted Avg. Diluted Shares Out. Growth rate in dividends per share 47.0 2874.8 -356.6 -1741.4 -70.8 323.0 328.7 Proj Proj Proj 2020 2021 2022 6.9% 51.0% 12.0% 17.0% 80 2.0 4.5% 2.7 27% 6.9% 53.0% 12.5% 17.0% 60 2.0 4.5% 2.7 27% 6.9% 55.0% 12.5% 17.0% 30 2.0 4.5% 2.7 27% 14.7% 13.0% 0.7% 8.0% 743.33 1321.6 56.0 380.0 15.0% 13.0% 0.7% 8.0% 743.33 1321.6 56.0 380.0 14.0% 13.0% 0.7% 8.0% 743.33 1321.6 56.0 380.0 30.2 4.5% 21.8% 455.0 40.0% 9.3 30.2 4.5% 21.8% 455.0 40.0% 9.3 30.2 4.5% 21.8% 455.0 40.0% 9.3 47.0 2686.0 -163.3 -2150.3 -46.2 244.2 252.3 47.0 2586.0 -163.3 -2150.3 -46.2 244.2 252.3 47.0 2386.0 -163.3 -2150.3 -46.2 244.2 252.3 12.0% 12.0% 12.0% Hist. Hist. Hist. Proj Proj Proj Revenue build up 2015 2016 2017 2018 2019 2020 US Operations Revenues growth rate 1,749.1 1,373.3 1,154.9 1,339.7 1,433.4 1,533.8 Canada Revenues growth rate 71.9 International Revenues growth rate 17.2 Total Revenues growth rate 1,838.2 -21.5% -15.9% 16.0% 7.0% 7.0% 46.0 50.4 58.0 60.9 63.9 -36.1% 9.7% 15.0% 5.0% 5.0% 16.1 18.1 20.8 22.1 23.4 -6.1% 12.3% 15.0% 6.0% 6.0% 1,435.4 -21.9% 1,223.4 -14.8% 1,418.5 15.9% 1,516.4 6.9% 1,621.1 6.9% 15.9% 15.9% 19.0% 9.0% 6.9% 6.9% 10.0% 4.0% 6.9% 6.9% 10.0% 4.0% Revenue growth scenario 1 Overall growth rate Base case Upside case Downside case Proj Proj 2021 2022 1,641.1 1,756.0 7.0% 7.0% 67.1 70.5 5.0% 5.0% 24.8 26.3 6.0% 6.0% 1,733.1 6.9% 1,852.8 6.9% 6.9% 6.9% 10.0% 4.0% 6.9% 6.9% 10.0% 4.0% Wendy's Income statement - millions of USD Hist. Hist. Hist. 2015 2016 2017 Total revenue Cost of sales Depreciation and amortization Gross profit $ $ $ $ 1,870.30 1,231.85 145.05 493.39 $ $ $ $ 1,435.42 812.46 122.70 500.25 $ $ $ $ 1,223.41 600.96 125.69 496.76 General and administrative EBIT $ $ 256.55 236.84 $ $ 245.87 254.38 $ $ 208.58 288.18 Other operating expense (income), net Operating profit $ $ (37.63) $ 274.47 $ (60.40) $ 314.78 $ 73.42 214.76 Interest expense, net Investment income, net Other income, net Income before taxes $ $ $ $ (93.36) 52.21 0.81 234.13 Income taxes Net income $ $ (72.99) $ 161.14 $ (72.07) $ 129.62 $ 93.01 194.03 EBITDA $ 381.89 377.09 413.87 Weighted Avg. Basic Shares Out. Weighted Avg. Diluted Shares Out. Basic earnings per common share Diluted earnings per common share Dividends per share Dividends $ $ $ $ $ $ $ $ 323.0 328.7 0.50 $ 0.49 $ $0.23 74.29 $ (114.80) 0.72 0.99 201.69 $ $ $ $ $ 262.2 266.7 0.49 $ 0.49 $ $0.25 65.55 $ (118.06) 2.70 1.62 101.02 244.2 252.3 0.79 0.77 $0.28 68.37 Proj Proj Proj Proj Proj 2018 2019 2020 2021 2022 $ 1,418.47 $ 702.14 $ 138.94 $ 577.39 $ 1,516.39 $ 765.78 $ 155.37 $ 595.24 $ 1,621.10 $ 826.76 $ 169.51 $ 624.83 $ 1,733.07 $ 918.52 $ 185.17 $ 629.37 $ 1,852.79 $ 1,019.03 $ 194.52 $ 639.24 $ $ 248.23 329.16 $ $ 257.79 337.45 $ $ 275.59 349.25 $ $ 294.62 334.75 $ $ 314.97 324.26 $ $ 73.42 255.74 $ $ 73.42 264.03 $ $ 80.00 269.25 $ $ 60.00 274.75 $ $ 30.00 294.26 $ $ $ $ 122.59 2.70 2.00 383.03 $ $ $ $ 122.17 2.70 2.00 390.91 $ $ $ $ 121.76 2.70 2.00 395.71 $ $ $ $ 121.34 2.70 2.00 400.80 $ $ $ $ 120.93 2.70 2.00 419.89 $ (103.42) $ (105.55) $ (106.84) $ (108.22) $ (113.37) $ 279.61 $ 285.36 $ 288.87 $ 292.58 $ 306.52 $ 468.09 $ 492.83 $ 518.75 $ 519.92 $ 518.78 244.179 244.179 244.179 244.179 244.179 252.289 252.289 252.289 252.289 252.289 $ 1.15 $ 1.17 $ 1.18 $ 1.20 $ 1.26 $ 1.11 $ 1.13 $ 1.14 $ 1.16 $ 1.21 0.31 0.35 0.39 0.44 0.49 $ 76.57 $ 85.76 $ 96.06 $ 107.58 $ 120.49 Hist. Hist. Hist. 2015 2016 2017 Balance Sheet - millions of USD Assets Current assets: Cash and cash equivalents Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total current assets $ $ $ $ $ 327.2 104.9 4.3 180.2 616.6 $ $ $ $ $ 198.2 156.4 2.9 95.0 452.5 $ $ $ $ $ 171.4 147.0 3.2 82.7 404.4 Properties Goodwill Other intangible assets Investments Other assets Total assets $ $ $ $ $ $ 1,227.9 770.8 1,339.6 58.4 95.5 4,108.7 $ $ $ $ $ $ 1,192.3 741.4 1,322.5 57.0 173.5 3,939.3 $ $ $ $ $ $ 1,263.1 743.3 1,321.6 56.0 308.6 4,096.9 Liabilities and Equity Financing gap Current portion of long-term debt Accounts payable Accrued expenses and other current liabilities Total current liabilities $ $ $ $ 23.3 53.7 124.4 201.4 $ $ $ $ 24.7 27.6 102.0 154.3 $ $ $ $ 30.2 22.8 111.6 164.6 Long-term debt Deferred income taxes Other liabilities Total non current liabilities $ $ $ $ 2,402.8 459.7 291.9 3,154.4 $ $ $ $ 2,487.6 446.5 323.1 3,257.3 $ $ $ $ 2,724.2 299.1 335.9 3,359.2 Total liabilities $ 3,355.8 $ 3,411.6 $ 3,523.7 Common stock Additional paid-in capital Retained Earing Common stock held in treasury Accumulated other comprehensive loss Total stockholders $ $ $ $ $ $ 47.0 2,874.8 (356.6) (1,741.4) (70.8) 752.9 $ $ $ $ $ $ 47.0 2,878.6 (290.9) (2,043.8) (63.2) 527.7 $ $ $ $ $ $ 47.0 2,886.0 (163.3) (2,150.3) (46.2) 573.2 Total liabilities and stockholders $ 4,108.7 $ 3,939.3 $ 4,096.9 Balance 0.0 0.0 0.0 Proj Proj Proj Proj Proj 2018 2019 2020 2021 2022 $ $ $ $ $ 305.3 177.3 4.2 113.5 600.3 $ $ $ $ $ 245.2 189.5 4.6 121.3 560.7 $ $ $ $ $ 369.6 210.7 5.8 129.7 715.9 $ $ $ $ $ 407.3 225.3 6.4 138.6 777.6 $ $ $ $ $ 359.9 240.9 7.1 148.2 756.1 $ $ $ $ $ $ 1,351.1 743.3 1,321.6 56.0 350.0 4,422.3 $ $ $ $ $ $ 1,412.5 743.3 1,321.6 56.0 380.0 4,474.2 $ $ $ $ $ $ 1,481.3 743.3 1,321.6 56.0 380.0 4,698.1 $ $ $ $ $ $ 1,556.1 743.3 1,321.6 56.0 380.0 4,834.7 $ $ $ $ $ $ 1,621.0 743.3 1,321.6 56.0 380.0 4,878.1 $ $ $ $ $ 30.2 31.6 133.4 195.2 $ $ $ $ $ 30.2 34.5 166.6 231.3 $ $ $ $ $ 30.2 37.2 179.9 247.3 $ $ $ $ $ 30.2 41.3 199.9 271.4 $ $ $ $ $ 30.2 45.9 221.8 297.8 $ $ $ $ 2,715.0 455.0 280.9 3,450.8 $ $ $ $ 2,705.7 455.0 306.3 3,467.0 $ $ $ $ 2,696.5 455.0 330.7 3,482.2 $ $ $ $ 2,687.2 455.0 367.4 3,509.6 $ $ $ $ 2,678.0 455.0 407.6 3,540.6 $ 3,646.0 $ 3,698.3 $ 3,729.5 $ 3,781.0 $ 3,838.4 $ $ $ $ $ $ 47.0 2,886.0 39.7 (2,150.3) (46.2) 776.2 $ 4,422.3 0.0 $ 47.0 $ $ 2,686.0 $ $ 239.4 $ $ (2,150.3) $ $ (46.2) $ $ 775.8 $ $ 4,474.2 0.0 $ 47.0 2,686.0 432.2 (2,150.3) (46.2) 968.7 4,698.1 0.0 $ 47.0 $ 47.0 $ 2,586.0 $ 2,386.0 $ 617.2 $ 803.2 $ (2,150.3) $ (2,150.3) $ (46.2) $ (46.2) $ 1,053.7 $ 1,039.7 $ 4,834.7 0.0 $ 4,878.1 0.0 Wendy's Hist. Hist. Hist. Proj Proj Proj 2015 2016 2017 2018 2019 2020 Property, plant and equipment, net Beginning balance Capital expenditure Depreciation Ending balance 251.6 145.1 150 122.7 81.7 125.7 1263.1 1263.1 227.0 138.9 1351.1 1351.1 216.8 155.4 1412.5 1412.5 238.3 169.5 1481.3 Intangibles Beginning balance Additions to intangibles Amortization Ending balance Retained Earnings Beginning balance Net earnings Dividends Ending balance -163.289 39.7493 239.3507 $ 279.61 $ 285.36 $ 288.87 $ 76.57 $ 85.76 $ 96.06 -163.289 $ 39.75 $ 239.35 $ 432.16 Proj Proj 2021 2022 1481.3 260.0 185.2 1556.1 1556.1 259.4 194.5 1621.0 432.1621 $ 292.58 $ 107.58 $ 617.16 617.1618 $ 306.52 $ 120.49 $ 803.19 Wendy's Cash flow statement - millions of USD Hist. Hist. Hist. 2015 2016 2017 Net income Depreciation and amortization Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Accounts payable Accrued expenses and other current liabilities Deferred income taxes Other liabilities Operating cash flows CAPEX Goodwill Other intangible assets Investments Other assets Investing cash flows Current portion of long-term debt Common stock Additional paid-in capital Common stock held in treasury Accumulated other comprehensive loss Dividends Financing cash flows Change in cash Cash - beg Cash - end $ 171.4 $ $ $ Proj Proj Proj Proj Proj 2018 2019 2020 2021 2022 279.61 $ 138.94 $ -30.3 -1.1 -30.8 8.8 21.8 155.9 -55.0 487.98 $ -227.0 0 0 0 -41.395 -268.3 285.36 $ 155.37 $ -12.2 -0.4 -7.8 2.9 33.2 0.0 25.5 481.84 $ -216.8 0 0 0 -30 -246.8 288.87 $ 292.58 $ 306.52 169.51 $ 185.17 $ 194.52 -21.2 -14.6 -15.6 -1.2 -0.6 -0.7 -8.4 -9.0 -9.6 2.7 4.1 4.5 13.3 20.0 21.9 0.0 0.0 0.0 24.4 36.7 40.2 468.02 $ 514.40 $ 541.79 -238.3 0 0 0 0 -238.3 -260.0 0 0 0 0 -260.0 -259.4 0 0 0 0 -259.4 -9.25 0 0 0 0 (76.57) $ -85.82 -9.25 0 -200 0 0 (85.76) $ -295.01 -9.25 -9.25 -9.25 0 0 0 0 -100 -200 0 0 0 0 0 0 (96.06) $ (107.58) $ (120.49) -105.31 -216.83 -329.74 $ 133.81 $ (60.02) $ 124.41 $ 37.61 $ (47.34) $ $ 171.4 $ 305.3 $ 305.3 $ 245.2 $ 245.2 $ 369.6 $ 369.6 $ 407.3 $ 407.3 359.9 $ Wendy's 2017 2018 2019 2020 2021 Revolver Ending balance Interest rate on revolver Long term debt Beginning balance Repayment Ending balance 0.0 2,724.2 0.0 5% 0.0 2,724.2 9.3 2,715.0 0.0 5% 0.0 2,715.0 9.3 2,705.7 0.0 5% 0.0 2,705.7 9.3 2,696.5 0.0 5% 0.0 2,696.5 9.3 2,687.2 Interest rate on LTD 0.0 Interest expense - use beginning balance 4.5% 122.6 4.5% 122.2 4.5% 121.8 4.5% 121.3 Total interest expense 122.6 122.2 121.8 121.3 Cash Ending balance Assume no interest earned on cash 2022 0.0 5% 0.0 2,687.2 9.3 2,678.0 4.5% 120.9 120.9 Wendy's Summary Scenario running Growth Hist. Hist. Hist. 2015 Base case 2016 2017 Sales growth Sales CAGR 2015 - 2017 EBITDA growth Net income growth -23.25% -14.77% -1.26% -19.56% 9.75% 49.69% 21.93% 17.72% 26.27% 9.03% 24.56% 17.55% 23.56% 33.83% 15.86% 33.85% -13.19% Profitability Operating margin EBIT margin EBITDA margin Net income margin Return on equity - ROE total 14.68% 12.66% 20.42% 8.62% 21.40% Leverage & Coverage Net debt Gross debt / EBITDA EBITDA / interest expense $ 2,075.61 $ 2,289.39 $ 2,552.78 6.35 6.66 6.66 -4.09 -3.28 -3.51 Asset management Receivable days Inventory days Payable days Cash conversion cycle OWC OWC to sales Net PPE /Sales CAPEX/Sales CAPEX/Depreciation 20 1 16 6 111 5.9% 65.7% 13.5% 173.5% 40 1 12 29 125 8.7% 83.1% 10.4% 122.2% 44 2 14 32 99 8.1% 103.2% 6.7% 65.0% Proj Proj Proj Proj Proj 2018 2019 2020 2021 2022 15.94% 6.90% 6.91% 6.91% 6.91% 13.10% 44.11% 5.28% 2.06% 5.26% 1.23% 0.23% 1.29% -0.22% 4.76% 18.03% 23.21% 33.00% 19.71% 36.02% 17.41% 22.25% 32.50% 18.82% 36.78% 16.61% 21.54% 32.00% 17.82% 29.82% 15.85% 19.32% 30.00% 16.88% 27.77% 15.88% 17.50% 28.00% 16.54% 29.48% $ 2,409.72 $ 2,460.49 $ 2,326.83 $ 2,279.98 $ 2,318.07 5.86 5.55 5.26 5.23 5.22 3.82 4.03 4.26 4.28 4.29 46 2 16 31 130 9.2% 95.2% 16.0% 163.4% 46 2 16 31 114 7.5% 93.2% 14.3% 139.6% 47 3 16 34 129 8.0% 91.4% 14.7% 140.6% 47 3 16 34 129 7.5% 89.8% 15.0% 140.4% 47 3 16 34 129 6.9% 87.5% 14.0% 133.4% Wendy's WACC Value of debt share price shares Mkt cap Total capital Debt % Equity % Cost of debt MTR 10 yr USG ERP Beta Cost of equity WACC 2,754.40 17.76 236.77 4,205.04 6,959.44 39.6% 60.4% 4.1% 32.2% 3.2% 5.5% 0.95 8.4% 6.19% Wendy's EnterValue Scenario running Inputs EBIT Depreciation & amortization Change in OWC & other operating cash flows CAPEX Tax rate FCF long run growth rate WACC Cash & Investments Value of Debt Shares of stock outstanding EV/EBITDA multiple Hist. 2017 Base case 288 126 Proj 2018 Proj 2019 Proj 2020 Proj 2021 329 139 69 (227) 27% 337 155 41 (217) 27% 349 170 10 (238) 27% 335 185 37 (260) 27% 3.00% 6.19% 227 2,754 237 16.6 Yum, DNKN, MCD A: Enterprise Valuation: Relative Valuation using Trailing EBITDA Multiple EBITDA EV Equity value Share price 414 6,852 4,325 $18.27 B: Enterprise Valuation Assuming Constant Growth FCF EV Equity value Share price 222 6,942 4,415 $18.65 C: Enterprise Valuation: Non-Constant Growth over short term;TV is based off EBITDA Multiple Calculations Variable growth phase Year (for discounting) Free cash flow Present value of FCF TV using EBITDA multiple PV of TV Enterprise value Equity value Share price 1 222 209 2 226 200 3 196 163 4 206 162 6,360 7,252 4,725 $19.96 20.0 6.7% 6.5% 6.2% 6.0% 5.8% $ $ $ $ $ EV/EBITDA 17.0 16.6 19.98 $ 19.28 20.25 $ 19.54 20.68 $ 19.96 20.95 $ 20.22 21.23 $ 20.50 D: Enterprise Valuation: Non-Constant Growth over short term;TV assumes we hit steady state and can apply constan Stable growth phase Free cash flow during first year of stable growth Enterprise value when growth becomes stable Present value of enterprise value in stable phase Enterprise value Equity value Share price 5,077 15.2 6.7% 6.5% 6.2% 6.0% 5.8% 6,137 3,610 $15.25 $ $ $ $ $ 1% 5.29 5.82 6.71 7.34 8.04 $ $ $ $ $ 2% 7.88 8.65 9.97 10.90 11.97 E: Enterprise Valuation Assuming Non-Constant Growth and Finite Time Horizon Free Cash Flow Valuation of an Enterprise under a 60 Year Time Horizon Inputs Year Free cash flow FCF growth rate expected Calculations Year (for discounting) Free Cash Flow PV of FCF Output Enterprise Value for 60 year time horizon Equity value Share price 2018 222 1 222 209 5,023 2,496 $10.54 2019 226 1.9% 2 226 200 2020 196 -13.4% 3 196 163 2021 206 5.3% 4 206 162 Proj 2022 324 195 41 (259) 27% 5 213 157 8,589.29 BITDA $ $ $ $ $ 16.0 18.39 18.65 19.05 19.31 19.58 6 219 and can apply constant growth model 219 6,856.9 $ $ $ $ $ 3% 11.88 13.09 15.25 16.84 18.72 2022 213 3.1% 5 213 157 $ $ $ $ $ 4% 18.82 21.07 25.34 28.70 32.95 2023 219 3.0% 6 219 153 2024 226 3.0% 7 226 148 2025 232 3.0% 8 232 144 2026 239 3.0% 9 239 139 2027 246 3.0% 10 246 135 2028 254 3.0% 11 254 131 2029 261 3.0% 12 261 127 2030 269 3.0% 13 269 123 2031 277 3.0% 14 277 120 2032 286 3.0% 15 286 116 2033 294 3.0% 16 294 113 2034 303 3.0% 17 303 109 2035 312 3.0% 18 312 106 2036 322 3.0% 19 322 103 2037 331 3.0% 20 331 100 2038 341 3.0% 21 341 97 2039 351 3.0% 22 351 94 2040 362 3.0% 23 362 91 2041 373 3.0% 24 373 88 2042 384 3.0% 25 384 85 2043 395 3.0% 26 395 83 2044 407 3.0% 27 407 80 2045 420 3.0% 28 420 78 2046 432 3.0% 29 432 76 2047 445 3.0% 30 445 73 2048 458 3.0% 31 458 71 2049 472 3.0% 32 472 69 2050 486 3.0% 33 486 67 2051 501 3.0% 34 501 65 2052 516 3.0% 35 516 63 2053 531 3.0% 36 531 61 2054 547 3.0% 37 547 59 2055 564 3.0% 38 564 57 2056 581 3.0% 39 581 56 2057 598 3.0% 40 598 54 2058 616 3.0% 41 616 52 2059 635 3.0% 42 635 51 2060 654 3.0% 43 654 49 2061 673 3.0% 44 673 48 2062 693 3.0% 45 693 46 2063 714 3.0% 46 714 45 2064 736 3.0% 47 736 44 2065 758 3.0% 48 758 42 2066 781 3.0% 49 781 41 2067 804 3.0% 50 804 40 2068 828 3.0% 51 828 39 2069 853 3.0% 52 853 37 2070 878 3.0% 53 878 36 2071 905 3.0% 54 905 35 2072 932 3.0% 55 932 34 2073 960 3.0% 56 960 33 2074 989 3.0% 57 989 32 2075 1,018 3.0% 58 1,018 31 2076 1,049 3.0% 2077 1,080 3.0% 59 1,049 30 60 1,080 29 ...
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School: UC Berkeley

Attached.

Surname 1

Name
Supervisor
Course
Date

EQUITY RESEARCH UPDATE

RESULTS UNDER SCENARIOS CREATED IN CASE 2
The rate of rising in revenue has constantly been rising until the year 2018, which is a
positive indicator.it is therefore projected to drop in the year 2019. However, there is an
appositive projection that in the years 2020, 2021 and 2022, the rate will remain constant and at a
positive percentage.
The comparison of the rate of cost of revenue over the years has been fluctuating from
the year 2015 up to 2018.the projection consequently has got fluctuating percentage rates all
through from the year 2019 up to the year 2022. However, the rates projected are slightly higher
than those already experienced.

Surname 2

The depreciation and amortization comparison rates have been slightly rising. The
projections also illustrate that the rates might slightly rise in the year 2019 and 2020 and then
stabilize in the year 2021 and 2020....

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Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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