Review the Historical and Forecasted Financial Statements - Accounting and Finance Assignment Help

Assignment Task:

Task:

Instructions:
Answer all questions. The minimum passing score is 70 percent for Part I and 70 percent for Part II. You must pass both Parts I and II. Your answers MUST be emailed ON or BEFORE 6pm of June 18, 2021.
You are the Head of the Asset Management Department of an investment company. You will review the work submitted by one of your subordinates, a fundamental analysis of Discovery World Corporation (DWC) to be presented before a group of investors one week from now. You have to give your comments to improve the analysis to make a holistic presentation and give a credible assessment of the DWC.

• Question 1: Review the historical and forecasted financial statements (income, balance sheet and cash flow statements. Pay especial attention to the computations for the Projected Free Cash Flow to the firm, and Weighted Average Cost of Capital. Make the required corrections for errors you may find. (45 points)
• Question 2: Review the Assessment/DISCUSSION on the company based on the information provided in the case (i.e., company profile, industry information, the calculations you obtained from Question 1, the logic and flow of discussion especially on the traditional ratios and cash flow worksheet). Are the numbers discussed in relation to the whole? Does the submission give an integrated story? (45 points)
• Question 3: What changes in the conclusions/recommendations would you make? Would you recommend buy shares of the company? Include the key observations from your analysis in Questions 1 and 2, as well as the additional information regarding other companies in the industry. (10 points)
• Tips on Financial Ratios:
• Liquidity ratios [working capital, current and quick-acid]
• Activity ratios [accounts receivable turnover ratio and the average collection period; inventory turnover, average age of inventory; operating cycle; cash conversion cycle; total asset turnover]
• Leverage ratios [debt ratio; debt/equity; times interest earned; cash coverage]
• Profitability ratios [gross profit margin; profit Margin; return on investment (ROI); return on common equity (ROE)]
• Market value ratios [earnings per share; price/earnings ratio; book value per share; market value, market value added; dividend yield; dividend payout]
•  
• Part II. Decision Analysis 100 points (70% minimum score required)
• 1.Candy Parker has been offered an opportunity to receive the mixed stream of revenue below over the next 3 years. If she must earn a minimum of 6 percent on her investment, what is the most she should pay today?
• YearRevenue
• 1$1,000
• 2$2,000
• 3$ 500
•  
• 2.Mary Czech wishes to determine the equal annual end-of-year deposits required to accumulate P5,000,000 at the end of 5 years when her son enters college. The interest rate is 10 percent. The annual deposit is:
• 3.Jeff Sosa is getting a 40-month auto loan of P 5,000,000 at a 12 percent annual interest rate. He wants to find out the monthly loan payment amount.
• 4.You own a car that is a few years old, and you have just replaced the brake pads at a cost of P 2,500. But then you find out that the entire brake system is defective and also must be replaced. This will cost you an additional P 15,000. Alternatively, you could sell the car and buy another of comparable quality, but with no brake defects, by spending an additional P 16,000. What should you do: fix your old car, or sell it and buy another? Why?
• Final instructions:
• Email answers in your original Word and/or Excel computations. These must have been prepared and presented in a logical, orderly and neat manner, and in easy-to-read Calibri font type and size 12 or 13). Disorderly presentation will result in very poor assessment of your answers. DO NOT consult or use human or near-human resources such as artificial intelligence (AI) or near-AI. The standard Future Value and Present Value and Annuity Tables are attached with this exam.

The above  Accounting Assignment has been solved by our  Accounting Assignment  Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.