Overview:\u00a0Corporate financial managers must have a business-wide perspective to successfully navigate the corporate environment. The skills you develop in this course will support you in your future business career as well as set the conceptual foundation for the future courses in your program. Your final project for FIN 330 will allow you to showcase your mastery of the varied skills a finance professional must obtain by requiring you to analyze a real-world corporation from a quantitative perspective while also investigating the challenges and decisions a manager must face.
In this milestone, you will continue to work on elements of Final Project I, the corporation valuation report.
Prompt:\u00a0This milestone requires you to write a draft of the Capital Structure and Valuation sections (Sections III and IV) of Final Project I, the corporate valuation report. In this assignment, you will use the same corporation you focused on in Milestone One to expand upon the capital structure of the organization and the valuation of the corporation through forecasting.
Specifically, the following critical elements must be addressed in this milestone:
Capital Structure:\u00a0In the third section of your report, discuss the capital structure of the corporation.
Outline the most recent year\u2019s debt, equity, and total capital using the provided\u00a0Excel template to show the\u00a0overall\u00a0capital structure of the
corporation. Please note: to complete this, you will use the same\u00a0template\u00a0you used in support of Milestone One, but this time you will be
completing the \u201cCapital Structure\u201d tab. <\/p>\n
Articulate the corporation\u2019s\u00a0dividend policy\u00a0and what impact it has on the investors. <\/p>\n
Analyze the\u00a0relationship\u00a0between capital structure, cost of capital, and risk, using examples from your chosen organization. <\/p>\n
Explain how the relationship between capital structure, cost of capital, and risk can help inform decision making and\u00a0maximize\u00a0corporate\u00a0value. <\/p>\n
Valuation: The final section of your report will focus on calculating current value, outlining assumptions, and estimating the future value of the corporation through forecasting the cash flows. Specifically, respond to the following:
Calculate the\u00a0current\u00a0market\u00a0value\u00a0of equity for your corporation, using the three-year history and\u00a0provided Excel template, and explain what it means for the corporation. You will submit this template along with your report, and may embed pieces of the Excel template into your report to help support your work in this section. Please note: this is the same template you used in support of Milestone One, but this time you will be\u00a0completing the \u201cValuation\u201d tab. <\/p>\n
Outline any\u00a0assumptions\u00a0you have made in calculating the current value and estimating the future value of the corporation, explaining why you made them and why they are important. (Hint: Assumptions can include growth rates, margins, trends, etc.) <\/p>\n
Estimate\u00a0the current value of your corporation by forecasting the cash flows over five years using the provided Excel template, and explain your findings. Calculate EVA, NPV, IRR and MIRR. <\/p>\n
\u00a0Guidelines for Submission:\u00a0Your submission should be 3\u20134 pages in length, not including the Excel template you use to address sections IV.A and IV.C, above. The written submission should use 12-point Times New Roman font, double spacing, one-inch margins, and APA formatting. Be sure to submit both your written response and the completed Excel template when submitting this assignment. Any citations should follow APA guidelines. <\/p>\n","protected":false},"excerpt":{"rendered":"
Overview:\u00a0Corporate financial managers must have a business-wide perspective to successfully navigate the corporate environment. The skills you develop in this course will support you in your future business career as well as set the conceptual foundation for the future courses in your program. Your final project for FIN 330 will allow you to showcase your […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[14],"class_list":["post-27634","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-finance"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/27634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=27634"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/27634\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=27634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=27634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=27634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}