11217PM WedAprS "- -I '357%l- z File Details [5 7' FIN 6806-102, FIN 6806-109: Advanced Financial Mgmt portingmmrements Power Plant LLC has met all the reporting requirements under the agreements with the banks. Power Plant LLC delivered the following documents to the bank: Construction Progress report from third party consultant Construction Budget - Expense Report The bank is asking that a formal request is sent before approving the next tranche/ disbursement. Risks: If the board of director rejects this request, Power Plant LLC will run out of cash. This will delay the project which is under a very strict schedule. PPL will not be able to pay supplier and cover operating expenses. Alternatives Should the board decide to reject this request, PPL will need to go to the shareholders for an injection of capital for construction purposes, and also to cover operating expenses. Exit strategy if business case fails: If Power Plant LLC fails, the banks will use the collateral assigned to service the loan. PPL pledged 3 lots to each bank (BUH, Sogebank, BNC). Recommendation: Power Plant LLC strongly recommends the board to urgently approve this request in order to continue construction and to meet deadlines per the construction schedule. Financials See Excel File under Module 4 The nancial and projections are provided. You will need to calculate unlevered free cash ow and produce a DCF for Power Plant LLC. The shareholders would like to know the value of Power Plant LLC prior to the board meeting. You are to calculate the Discounted Cash ow using the following additional information: ' The risk-free rate is 5.5% 0 The beta is 2.2 ' The market risk premium is 8.7% 0 The average exit multiple for deals similar to Power Plant LLC is 8.0x You are also asked to create an amortization schedule for the 3 loans from each bank. Each bank provides $5 million in funding, with an interest rate of 9% per annum. The banks have agreed to provide Power Plant LLC a 2year grace period on the principal. This scenario is different than what is reported on the nancial statements, you do not need to change the nancial statements, however you need to present your ndings. ' Previous Next ' (b! Dashboard a Calendar [fTo Do D Notications @lnbox 11217PM WedAprS "- II ?56%l- z File Details [5 FIN 6806-102, FIN 6806-109: Advanced Financial Mgmt 7| Instructions The project will teach you how to perform a nancial analysis on a set of nancials. A nancial analysis report is constructed by a person who is researching a company, usually with the intent of recommending its stock to investors or to a board of directors. The report contains multiple components, such as company overview, investment essentials, valuation, risk analysis, and a summary. However, for the purpose of this class, we will focus on the investment essentials. In this component \"investment essentials\