Description
Create a presentation, Each part of the assignment depicted below must be represented with at least one slide and must include a minimum of 500 words per slide in the notes section.
Power Point
APA 7 Format: Paper that goes with the "notes section" of each topic that is 500 words per slide in the notes section.
Works Cited
Reference Page
Option #1: Corporate Finance Application
Part A: Ratio Analysis
Attached are the financial statements for Smith Company, Inc. Use the financial statements to calculate the attached ratios. Write a couple sentences interpreting the ratio.
- Calculate and interpret the following debt ratios: debt ratio, debt-equity ratio, and times interest earned.
- Calculate and interpret the following profitability ratios: operating profit margin, net profit margin, return on assets, and return on equity.
Part B: Require Return for Capital Funding
Suppose that Smith Company is considering a new project. They are trying to determine the required rate of return for their debt and equity holders. See the information below:
- A 7.5% percent annual coupon bond with 20 years to maturity, selling for 104 percent of par. The bonds make semiannual payments. What is the before tax cost of debt? If the tax rate is 40%, what is the after-tax cost of debt?
- The firm's beta is 1.2. The risk-free rate is 4.0% and the expected market return is 9%. What is the cost of equity using CAPM?
Part C: WACC and Capital Budgeting
- Calculate the firm's WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equity from the Balance Sheet. The firm has no preferred stock).
- Use the WACC to calculate NPV and evaluate IRR for proposed capital budgeting projects. Assume the projects are mutually exclusive and the firm has the money available to fund the project.
Part D: Analysis
- You will must offer suggests to a senior financial manager and CFO on the proposed projects. Be sure to include a discussion of external funding and where it should come from if necessary and which project the firm should undertake. Prepare a presentation, a minimum of one slide for each part, summarizing your results. You should submit either an Excel or Word document showing your work for each part.
Finacial Tables:
12/31/2018 | 12/31/2017 | 12/31/2016 | 12/31/2015 | |
Current Assets | ||||
Cash And Cash Equivalents | 8,719,000 | 10,607,000 | 9,157,000 | 9,095,000 |
Short Term Investments | 270,000 | 8,897,000 | 6,966,000 | 2,912,000 |
Net Receivables | 7,140,000 | 7,021,000 | 6,693,000 | 6,436,000 |
Inventory | 3,126,000 | 2,944,000 | 2,722,000 | 2,719,000 |
Other Current Assets | 2,042,000 | 43,000 | 31,000 | 730,000 |
Total Current Assets | 21,297,000 | 29,512,000 | 25,569,000 | 21,892,000 |
Long Term Investments | 2,407,000 | 2,039,000 | 1,949,000 | 2,310,000 |
Property Plant and Equipment | 17,587,000 | 17,237,000 | 16,590,000 | 16,316,000 |
Goodwill | 14,806,000 | 14,741,000 | 14,429,000 | 14,176,000 |
Intangible Assets | 15,823,000 | 13,835,000 | 13,432,000 | 13,080,000 |
Other Assets | 5,122,000 | 910,000 | 635,000 | 749,000 |
Total Assets | 77,042,000 | 78,274,000 | 72,604,000 | 68,523,000 |
Current Liabilities | ||||
Accounts Payable | 7,211,000 | 6,724,000 | 6,157,000 | 5,545,000 |
Short/Current Long Term Debt | 3,951,000 | 4,017,000 | 4,400,000 | 3,108,000 |
Other Current Liabilities | 6,601,000 | 4,112,000 | 3,870,000 | 3,882,000 |
Total Current Liabilities | 17,763,000 | 14,853,000 | 14,427,000 | 12,535,000 |
Long Term Debt | 28,293,000 | 33,793,000 | 30,052,000 | 29,591,000 |
Other Liabilities | 12,611,000 | 14,522,000 | 11,102,000 | 10,466,000 |
Total Liabilities | 58,667,000 | 63,168,000 | 55,581,000 | 52,592,000 |
Stockholders' Equity | ||||
Total Stockholder Equity | 18,375,000 | 15,106,000 | 17,023,000 | 15,931,000 |
Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
Module 8
by HAL Lab
Submission date: 23-Oct-2020 01:01PM (UTC-0400)
Submission ID: 1424407473
File name: Module_8.pptx (88.46K)
Word count: 493
Character count: 2206
Module 8
ORIGINALITY REPORT
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SIMILARITY INDEX
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INTERNET SOURCES
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Submitted to Colorado State University, Global Campus
Student Paper
mba13c.files.wordpress.com
Internet Source
kaf-lurang.blogspot.com
Internet Source
Raad Mozib Lalon. "An Analysis of Financial Performance on Non-bank Financial
Institutions (NBFI) in Bangladesh: A Study on Lanka-Bangla Finance Limited",
International Journal of Economics, Finance and Management Sciences, 2017
Publication
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Module 8: Portfolio Project
Name:
Institutional Affiliation:
Date:
Ratio Analysis
• The main focus for this section
is the analysis of the financial
performance of the Smith
Company, Inc.
• The table below shows the
ratios for the firm based on the
given dat...