Corporate Finance project
Format for FINC324 Project
Title page
Table of contents. Please make sure that all pages of your paper are numbered, except for the appendixes. You should indicate the pages in which each of the sub-sections is presented.
The following are the sub-sections of your project. Use double space and 12 pt. font.
Part I - Introduction
a. Introduction (one page maximum)
b. Corporate history, products, etc. (one page maximum)
Part II – Historical Analysis
Cash flow analysis. Analyze the cash flows for four years and present it in chronological order.
Ratio analysis. Analyze the same three ratios for all the four years and present it in chronological order.
WACC. There must be a written analysis of the WACC, but this need not be divided into individual years.
Summary. In this section you will summarize your observations on the performance of the firm from the analysis you conducted in the previous three sections.
Part III - Forecasting
Premises and forecast. In this you will describe the premises on which you built the forecasting model and the analysis of the forecasted financial statements.
Model Section. In this section show the percentage growth rates you used in the forecasting of each variable in the Income Statement and Balance Sheet. Also print the formulas for the first year of forecast using the attached Exhibit A. as example and attach it as Appendix E.
What if analysis. In this section you will discuss the results of Income Statement and Balance sheet when the sale growth rate is higher and lower than the one you used in part a. of this section.
Bibiliography
Appendixes
Financial Statements: Five years of historical data plus three years of forecasted data. Use Aloca model that I emailed to you. This should also have Free Cash Flows, Cash Flows as well as ratios.
Weighted average cost of capital calculations.
Correlation estimates
Trend analysis
Forecast model
Financial statements from what-if analysis. Print only the Income statements and Balance sheets.
Three separate graphs of the three ratios you have analyzed. Include the three forecasted years also.
Four years Valueline report copies
Four years industry ratios
Note: When you print the spreadsheets make sure that all columns are in the same page.
| Alcoa | ||||
| Generated Annual Income Statement | 39447 | 39813 | 40178 | |
| Currency | ||||
| Auditor Status | Final | |||
| Consolidated | Growth rate | |||
| Scale | ||||
| Total Revenues | =F9*(1+$J9) | =Sheet4!D9 | ||
| Cost of Revenues | =F10*(1+$J10) | =Sheet4!D10 | ||
| Gross profit | =G9-G10 | |||
| Selling, General & Administrative | =F12*(1+$J12) | =Sheet4!D12 | ||
| Depreciation & Amortization | =F13*(1+$J13) | =Sheet4!D13 | ||
| Research & Development | =F14*(1+$J14) | =Sheet4!D14 | ||
| Other Indirect Expenses | =F15*(1+$J15) | =Sheet4!D15 | ||
| EBIT | =G11-SUM(G12:G15) | |||
| Interest Income | =F17*(1+$J17) | =Sheet4!D17 | ||
| Interest Expense | -384000 | Do not forecast | ||
| Realized Capital Gains (Losses) | =F19*(1+$J19) | =Sheet4!D19 | ||
| Foreign Exchange Gain (Loss) | 40000 | =Sheet4!D20 | ||
| Other Income (Expense), net | 150000 | =Sheet4!D21 | ||
| EBT | =G16+G17+G18+G19+G20+G21 | |||
| Income Taxes | =G22*0.34 | Do not forecast | ||
| Equity Earnings | =F24*(1+$J24) | =Sheet4!D24 | ||
| Minority Interest | =F25*(1+$J25) | =Sheet4!D25 | ||
| Discontinued Operations | =F26*(1+$J26) | =Sheet4!D26 | ||
| Accounting Changes | =F27*(1+$J27) | =Sheet4!D27 | ||
| Net Income | =G22-G23+G24-G25+G26+G27 | |||
| Alcoa | ||||
| Generated Annual Balance Sheet | ||||
| Currency | ||||
| Auditor Status | ||||
| Consolidated | ||||
| Scale | ||||
| Cash & Cash Equivalents | =F39*(1+$J39) | =Sheet4!D39 | ||
| Receivables | =F40*(1+$J40) | =Sheet4!D40 | ||
| Inventories | =F41*(1+$J41) | =Sheet4!D41 | ||
| Other Current Assets | =F42*(1+$J42) | =Sheet4!D42 | ||
| Total Current Assets | =SUM(G39:G42) | |||
| Long-term Receivables | =Sheet4!D45 | |||
| Investments and Advances | =F46*(1+$J46) | =Sheet4!D46 | ||
| Land | =F47*(1+$J47) | =Sheet4!D47 | ||
| Buildings | =F48*(1+$J48) | =Sheet4!D48 | ||
| Machinery and Equipment | =F49*(1+$J49) | =Sheet4!D49 | ||
| Other fixed assets | =F50*(1+$J50) | =Sheet4!D50 | ||
| Gross Property, Plant & Equipment | =SUM(G47:G50) | |||
| Accumulated Depreciation & Amortization | =F52*(1+$J52) | =Sheet4!D52 | ||
| Net Property & Equipment | =G51-G52 | |||
| Intangible Assets | =F54*(1+$J54) | =Sheet4!D54 | ||
| Other Assets | =F55*(1+$J55) | =Sheet4!D55 | ||
| Total Assets | =G43+G45+G46+G53+G54+G55 | |||
| Accounts Payable | =F59*(1+$J59) | =Sheet4!D59 | ||
| Taxes Payable | =F60*(1+$J60) | =Sheet4!D60 | ||
| Accrued Expenses | =F61*(1+$J61) | =Sheet4!D61 | ||
| Short-term Borrowings | =F62*(1+$J62) | =Sheet4!D62 | ||
| Current Portion of Long-term Debt | =F63*(1+$J63) | =Sheet4!D63 | ||
| Other Current Liabilities | =F64*(1+$J64) | =Sheet4!D64 | ||
| Total Current Liabilities | =SUM(G59:G64) | |||
| Long-term Debt | =5910000+Sheet5!G84 | Do not forecast | ||
| Deferred Income Taxes | =F68*(1+$J68) | =Sheet4!D68 | ||
| Other Deferred Liabilities | =F69*(1+$J69) | =Sheet4!D69 | ||
| Minority Interest | =F70*(1+$J70) | =Sheet4!D70 | ||
| Other Liabilities | =F71*(1+$J71) | =Sheet4!D71 | ||
| Total Liabilities | =G65+SUM(G67:G71) | |||
| Preferred Stock | =F74*(1+$J74) | =Sheet4!D74 | ||
| Common Stock | 925000 | Do not forecast | ||
| Additional Paid-In Capital | 5817000 | Do not forecast | ||
| Retained Earnings | =G28+F77+$F125 | Do not forecast | ||
| Treasury Stock | =F78*(1+$J78) | =Sheet4!D78 | ||
| Other Stockholders' Equity | -1233000 | =Sheet4!D79 | ||
| Stockholders' Equity | =G74+G75+G76+G77-G78+G79 | |||
| Total Liabilities & Stockholders' Equity | =G72+G80 | |||
| Balance sheet difference | =G56-G82 |
