Description As a manager, what are some challenges you anticipate in computing the WACC? Do you agree or disagree with the following statement: Using an inaccurate WACC could totally offset the capital budgeting decision. Fully explain and support your discussion.
Category Archives: Finance
Demonstrate knowledge of financial management tools for raising finance, managing working capital and calculating optimum capital structures, looking at the relevance and implications to control and decision-making requirements of a business.
LO1: utilise Management and communication skills using problem solving skills around key Financial management and decision-making topics such as analysis and interpretation of PLC sets of accounts LO2: Demonstrate knowledge of financial management tools for raising finance, managing working capital and calculating optimum capital structures, looking at the relevance and implications to control and decision-making […]
Discuss Using each of these methods, what is your estimate of the growth rate for the company that you elected to study?
Description Estimating Terminal Value – Analysts normally must calculate a terminal value of a firm when preparing a discounted cash flow valuation. There are three ways to prepare this estimate, which include (1) assuming a liquidation value of the firm’s assets in the terminal year, (2) applying a multiple to earnings, revenues or book value, […]
Discuss all assumptions you are making and why you are making them.
Description Determine assumptions for use in forecasting a 10-year pro forma income statement and balance sheet for the target. Submission files: Report in Word file and spreadsheet in Excel file. The first thing to do will be to determine a growth rate in sales. It should not be the same rate for each year. The […]
Compare the financial performance of two companies in the same sector for the last three years (you need to use three years of data). The organisations are Easyjet plc and Ryanair Holding plc. As a consultant, use this analysis to suggest a prospective long term investor of the most attractive organisation to invest in.
Description The aim of the assignment is to compare the financial performance of two companies in the same sector for the last three years (you need to use three years of data). The organisations are Easyjet plc and Ryanair Holding plc. As a consultant, use this analysis to suggest a prospective long term investor of […]
Explain the differences between the arithmetic return and the geometric return. Include in your explanation what factor determines the difference between arithmetic returns and geometric (compounded) returns.
Description How do you feel about the following statement: “Avoiding risks is the biggest risk of all”? That statement may seem contradictory at first, but it makes more sense if you apply the concept to various situations in life and business. For example, many people pursue a college degree because they feel it will increase […]
What are the risks and potential pitfalls of investing that might cause someone to make the statement that “playing the stock market is like gambling”?
Description Based on past experiences and personal values, people have different beliefs about gambling. Some view it as a moral issue and consider luxurious casinos to be deceptive and eager to take money out of the hands of the naïve. Some people enjoy the excitement of watching the dice roll and view a night in […]
What is your upfront cost for all options to purchase this equipment?
1NEWEQUIPMENT-TOPAYCASH,RENT,GETALOAN,ORLEASE?ESF needs new, state of the art equipment. The management team has already identified a vendor for this equipment and a package that costs $50,000. Your manager would like you to present how you would like to purchase this equipment. Answer the questions below and present your recommendation to your manager based on the information […]
What are some of the difficulties that might come up in actual applications of the various investment rules? Elaborate.
Description Instructions • You have to answer all questions by yourself. Don’t share your work with others. • You are reminded of the necessity for clear and orderly presentation in your answers. Please show all steps of your workings and computations clearly. Otherwise marks will be deducted. Your assignment will also be assessed based on […]
Describe in detail the Quantitative Finance or Fintech topic you are considering including its main ideas and applications.
Write a report about the topic that incorporates the following components: — Describe in detail the Quantitative Finance or Fintech topic you are considering including its main ideas and applications. — Address the purpose and function of the topic you selected; in the case of Fintech topics, discuss what traditional financial technology the Fintech topic […]
