FIN 3002 CSUGC Smith Company Corporate Finance Ratio Analysis Presentation

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Qveglq1000

Business Finance

FIN 3002

Colorado State University Global Campus

FIN

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

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Explanation & Answer

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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
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Submitted to Colorado State University, Global Campus
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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
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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...


Anonymous
Really useful study material!

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