I have highlighted the section in the document that needs to be completed. Below are the instructions. It is based around the Disney company The competition is Universal and Time Warner. Part II: F

CLC-STEPS FOR FINANCIAL RECOMMENDATIONS 7

CLC-Steps Required for Financial Recommendations

July 13, 2022

CLC-Steps Required for Financial Recommendations

Part I: EPS / EBIT Analysis

Prepare an EPS/EBIT Analysis for your CLC group’s company by doing the following:

• Determine whether the firm should use all debt, all stock, or a 50-50 combination of debt and stock to finance their market-development strategy.

• Use your Strategic-Planning Template to complete the EPS/EBIT tables and chart.

• In 50-100 words, provide a summary recommendation/analysis overview for this part

• Slide 22 from strategy club: https:// www.strategyclub.com/wp-content/uploads/2020/11/SandersonFarms.Sample.Project.pdf

EBIT for Disney in 2021 was $3.005B a 254.82% decline from 2020 (Macrotrends)

Disney plans to raise its capital by $8 Million

Disney’s outstanding shares is 1.828B in 2021

290 MIL before taxes

Below is a figure illustrating the changes of EPS (y-axis) with estimated EBIT values (x-axis).

HAVE TO REDO CHART JUST AN EXAMPLE

Summary

The Financial mixes represented in the data tables above examine Disney’s earnings per share (EPS) and earnings before income tax (EBIT) from a pessimistic, realistic, and optimistic viewpoint. Both the EPS and EBIT consist of a combination of financing from stock and debt (David et al., 2020)

Part II: Financial Statements

Prepare a projected income statement and balance sheet for the firm by doing the following:

• Refer to and follow the steps given in Chapter 8 of the David text to learn how to complete financial statements.

• Apply current acceptable financing percentages afforded your CLC group’s company according to the Standard and Poor’s or Moody’s rating.

• Make any other assumptions necessary for this segment of the project and have them approved by your instructor prior to completing this part of the assignment.

• Assume that the firm needs to secure capital to implement the strategy your team proposes to recommend. Your instructor will give you an amount if the team doesn’t determine an amount that will accommodate the production of the required reports.

• Use the information gathered above to prepare a projected income statement and 8balance sheet for the firm using your Strategic-Planning Template.

• In 50-100 words each, provide an analysis overview for both the projected financial statement and balance sheet.

I made a table below:

Part III: Cash Value

D2etermine the Cash Value of the company by doing the following:

• Refer to and follow the steps given in Chapter 8 of the David text to learn how to determine the cash value of your CLC group’s company.

• To construct this element of the project, it will be necessary for the team to make use of the financial information provided initially about the company as well as the information and data that you’ve discovered as a result of the research and assignments completed thus far in the course.

• Calculate the financial worth of the firm based on four approaches: (1) the net worth method, (2) the net income method, (3) the price-earnings ratio method, and (4) the outstanding shares method.

• Use your Strategic-Planning Template to complete the company valuation tables.

• In 50-100 words, provide an analysis overview for this part. Calculate the average of the four methods. State a dollar amount of how much the company is worth.

Part IV: Projected Financial Ratios

Prepare Projected Financial Ratios for your company by doing the following:

• Refer to and follow the steps given in Chapter 8 of the David text to learn how to prepare projected financial ratios.

• If you completed the previous parts of this assignment, the template will generate projected financial ratios after the team converts the firm’s financial statements to the template format and then creates projected financial statements based on recommended strategies.

• Compute the projected current ratio, debt-to-equity ratio, and return-on-investment ratio. Use your Strategic-Planning Template to complete the company ratio tables.

• In 50-100 words, provide an analysis overview for this part. Also explain how the projected ratios compare to the prior year ratios. Explain the importance of this comparison.

Part V: Retained Earnings

Create a Retained Earnings Table by doing the following:   

• Refer to and follow the steps given in Chapter 8 of the David text to learn how to complete a retained earnings table.

• Use the data you have compiled about your company throughout the course to assist you.

• Use your Strategic-Planning Template to complete the company retained earnings table.

• In 50-100 words, provide an analysis overview for this part.

Part VI: Analysis

• In 350-750 words, summarize the importance of each of the parts above in this assignment (Parts I-V). Explain how each of the steps contributes to the firm’s success going forward.