Acquiring the competition is often an option to penetrate untapped markets, increase market share, and realize elevated stock performance. As the CFO of CVS, you have identified a clear opportunity to become the dominant leader in retail pharmaceutical sales through the acquisition of your principal competitor, Walgreens. The key capital investment trade-off decision facing the organization is whether your organization should acquire the competitor or expand by building new stores throughout the continental United States. What factors will influence your decision?

Interpretation of Results - A. Calculate the operational performance metrics you selected, and analyze the results of your calculations in terms of the company's needs and the intended purpose of the financial model.B. Discuss how you would most appropriately convey this analysis to the following decision-makers, being sure to articulate the distinctions necessary to effectively present to the specific audience: 1. Your supervisor. Ensure that you defend your rationale. 2. Your horizontal managers and/or colleagues. Ensure that you defend your rationale. 3. The financial institution considering granting you a line of credit. Ensure that you defend your rationale.

I need help creating pro forma statements for both CVS and Walgreens to assess whether or not an acquisition is worth it. I am supposed to use Discounted Cash Flow (DCF) as this is what has been used throughout the course. Please help with calculations/excel spreadsheet to show why or why not it is a good idea for CVS to acquire Walgreens.

I am working on "milestone 4" in the attached final project guidelines and rubric. The Milestone four guidlines and rubric is what I need for this assignment. The calculations in an excel spreadsheet.

FIN 691 Final Project Guidelines and Rubric Overview In the recent past, spreadsheets became the dominant vehicle for financial professionals, all but replacing calculators. The type of active learning presented in this course, and exhibited during this assessment, will pay dividends as you acquire this important applied skill. In this assessment, you will have the opportunity to connect corporate financial analysis with statistical analysis. It is common for these analyses to be applied to potential opportunities that companies are considering. The modeling tools and techniques you have used in this course will prepare you to use the specific tools of the organization in which you work or consult. Many firms create their own proprietary software to analyze data, so the spirit of this assessment is for you to develop the modeling skill-set to be prepared, no matter what type of financial or statistical models you may face in the future. For this final project, you will propose a financial model by providing analysis, creating procedures, synthesizing modeling techniques, interpreting calculated data, and recommending implementation strategies. These model-building skills will translate to those necessary for you to be successful on a practical basis within any business context. You will need to choose a Fortune 500 Company from the two provided as well as one of two scenarios upon which to build your financial model proposal. Companies: 1. CVS 2. Walgreens Scenarios: 1. Seeking global success is not a new concept to Fortune 500 companies and fuels the argument that all company activities should serve to maximize the wealth of its shareholder's. Penetrating new markets is a path to potentially large-scaled opportunities and increased return on investment (ROI). Evaluating the feasibility of securing a global presence or expanding (shoring up your domestic presence) locally is the key capital investment trade-off decision facing the organization. As the chief financial officer (CFO), determine the critical elements that will influence your decision using actual company data as guided by the factors outlined within the final project document. 2. Acquiring the competition is often an option to penetrate untapped markets, increase market share, and realize elevated stock performance. As the CFO, you have identified a clear opportunity to become the dominant leader in retail pharmaceutical sales through the acquisition of your principal competitor. The key capital investment trade-off decision facing the organization is whether your organization should acquire the competitor or expand by building new stores throughout the continental United States. What factors will influence your decision? The project is supported by four milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules One, Two, Four, and Six. The final submission will occur in Module Nine. In this assignment, you will demonstrate your mastery of the following course outcomes: Analyze data and financial market conditions for making models effective in achieving strategic objectives Determine appropriate foundational elements for building financial models that arrive at optimal business solutions Synthesize modeling techniques in developing financial models that are appropriate to given situations Interpret data produced by financial models for communicating results that inform strategic corporate decision-making Recommend implementation strategies that are derived from modeling results for balancing risk and return Prompt Using the information provided, prepare a report that thoroughly describes the financial model that you would build. In addition to the required calculations, describe key assumptions, the method of analysis, key results, and your plans to utilize said results. To fully develop your skill-set for future use in the real world, you will also discuss how you plan to present your findings to your supervisor, to a group of colleagues, and to a financial institution that is considering granting your company a line of credit. The rationale is that the method, tone, and slant differ depending on the audience and the ensuing objective. Specifically, the following critical elements must be addressed: I. Analysis of Scenario A. Analyze the overall competitive industry of the firm to determine what variables should go into the model, paying close attention to those issues that can have the largest impact on the firm. Describe why each variable you select is an important driver in this scenario. B. Analyze the interest rate environment to determine what variables should go into the model, paying particular attention to the effect of current and future rates on the company, especially with regard to securing a line of credit. Describe why each variable you select is an important driver in this scenario. C. Analyze the overall economy to determine what variables should go into the model, focusing specifically on how the macro-economy may impact this particular company (rather than all companies). Describe why each variable you select is an important driver in this scenario. D. Discuss the role that variables such as market conditions play in creating financial models that effectively achieve strategic objectives. II. Appropriate Procedures A. Describe why the model is needed and define its purpose in terms of providing optimal results. Be sure to defend your rationale. B. Based on the purpose you defined and the necessary variables you identified, select the most appropriate type of model to fulfill the identified purpose. C. Provide an explanation bridging the gap between the equations necessary and the conceptual idea. That is, describe how and why the calculations will provide value and benefit the company. Be sure to explain the concepts behind the numbers. III. Modeling Techniques A. Define the essential inputs or assumptions you would need to build your model, using evidence and examples to substantiate your claims. B. Determine the operational performance metrics that you would want your model to achieve. C. Analyze the financial processes needed to engage in building the model. In other words, describe the financial artifacts you would need, such as cash flow projections, revenue, expenditures, etc. IV. Interpretation of Results A. Calculate the operational performance metrics you selected, and analyze the results of your calculations in terms of the company's needs and the intended purpose of the financial model. B. Discuss how you would most appropriately convey this analysis to the following decision-makers, being sure to articulate the distinctions necessary to effectively present to the specific audience: 1. Your supervisor. Ensure that you defend your rationale. 2. Your horizontal managers and/or colleagues. Ensure that you defend your rationale. 3. The financial institution considering granting you a line of credit. Ensure that you defend your rationale. V. Implementation Strategies A. Based on the anticipated results of the model you would construct from this framework, recommend an implementation strategy that balances risk with return. Be sure to justify your recommendation. B. Identify key organizational stakeholders who will need to be involved in the implementation, and discuss their roles in ensuring a successful implementation. Be sure to defend your reasoning. C. Discuss how the strategy you are recommending would effectively balance risk with return. Be sure to substantiate your claims with examples and evidence. Milestones Milestone One: Select Organization In Module One, you will select one of the two companies and one of the two scenarios to be the focus of your final project throughout the duration of this course. Start thinking about the variables that you will include within your model. Refer to the Milestone One Rubric for specific elements to consider as you select your organization. Start thinking about the variables that you will include within your model. You will construct a 250- to 350-word synopsis that analyzes the scenario outlined within the first section of the Final Project Document. You will upload your selections and synopses to your instructor via a designated link. (Note: This assignment is designed to get you started thinking about your final project. Keep in mind that this section should be revised and expanded upon after receiving feedback from your instructor before final submission in Module Nine, where it should be approximately 2-3 pages in length.) This milestone will be graded using the Milestone One Rubric. Milestone Two: Appropriate Procedures In Module Two, you will start building your model for your final project based on your choice in Milestone One and begin the analysis process based on the elements outlined within the appropriate procedures section of the Final Project Document. You should be looking at the procedures you would implement within your model. Articulate why the model is necessary and its purpose, name the applicable model type, and justify how your calculations will add value and benefit the organization overall. All of these factors are interconnected. Prepare a 350- to 500-word spec sheet detailing these elements and upload it to your instructor via the designated link. (Note: This assignment is designed to help you start thinking about your final project. Keep in mind that this section should be revised and expanded upon after receiving feedback from your instructor before final submission in Module Nine, where it should be approximately 2-3 pages for your final project.) This milestone will be graded using the Milestone Two Rubric. Milestone Three: Modeling Techniques In Module Four, you will begin outlining your modeling techniques based on your choice in Milestone One. Here you will begin to see your calculations take shape and identify the necessary financial artifacts needed to formulate an informed financial model. How you display this information is optional. Consider using charts, spreads, or whatever medium you feel will best represent your position and the rationale for your selection. Submit a 750-word draft outlining your inputs and assumptions, operational performance metrics, and the financial processes needed to engage your model. Upload to your instructor via the designated link. (Note: This assignment is designed to help you start thinking about your final project. Keep in mind that this section should be revised and expanded upon after receiving feedback from your instructor before final submission in Module Nine, where it should be approximately 2-3 pages in length.) This milestone will be graded using the Milestone Three Rubric. Milestone Four: Interpretation of Results In Module Six, you will submit your draft of the \"Interpretation of Results\" section of the Final Project Guidelines and Rubric. (Note: This assignment is designed to help you start thinking about your final project. Keep in mind that this section should be revised and expanded upon after receiving feedback from your instructor before final submission in Module Nine, where it should be approximately 2-3 pages in length.) This milestone will be graded using the Milestone Four Rubric. Final Project Submission: Financial Model Report In Module Nine, you will submit your Financial Model Report. Your report should be 10-15 pages in length and should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. Your final submission will require you to complete Section V of the final project independently with the knowledge and expertise that you have gained throughout the course. The final project will be graded using the Final Project Rubric. Deliverables Milestone One Deliverables Select Organization Module Due One Grading Graded separately; Milestone One Rubric Two Appropriate Procedures Two Graded separately; Milestone Two Rubric Three Modeling Techniques Four Graded separately; Milestone Three Rubric Four Interpretation of Results Six Graded separately; Milestone Four Rubric Nine Graded separately; Final Project Rubric Final Submission: Financial Model Report Final Project Rubric Guidelines for Submission: Your proposal should be formatted using 12-point Times New Roman font with one-inch margins and be between 10 and 15 pages long, not including the title and references pages. All citations should be formatted according to the most current APA guidelines. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Scenario: Competitive Industry Exemplary (100%) Meets \"Proficient\" criteria and demonstrates exceptional insight into the role of variables in financial modeling Proficient (90%) Comprehensively analyzes the overall competitive industry of the company to determine the variables that should go into the model and describes why each variable is an important driver Scenario: Interest Rate Meets \"Proficient\" criteria and demonstrates exceptional insight into the role of variables in financial modeling Comprehensively analyzes the interest rate environment to determine the variables that should go into the model and describes why each variable is an important driver Needs Improvement (70%) Analyzes the overall competitive industry of the company to determine the variables that should go into the model and describes why each variable is an important driver, but response is cursory or illogical Analyzes the interest rate environment to determine the variables that should go into the model and describes why each variable is an important driver, but response is cursory or illogical Not Evident (0%) Does not analyze the overall competitive industry of the company to determine the variables that should go into the model Value 4.8 Does not analyze the interest rate environment to determine the variables that should go into the model 4.8 Scenario: Overall Economy Meets \"Proficient\" criteria and demonstrates exceptional insight into the role of variables in financial modeling Scenario: Role Meets \"Proficient\" criteria and demonstrates exceptional insight into the role of variables in financial modeling Procedures: Purpose Meets \"Proficient\" criteria and demonstrates exceptional insight into financial models and their purpose Describes why the model is needed and defines its purpose, defending rationale Procedures: Type Meets \"Proficient\" criteria and provides examples that demonstrate exceptional insight into financial models and their purpose Meets \"Proficient\" criteria and articulation is exceptionally clear and logical Selects the most appropriate type of model based on its purpose and the necessary variables Techniques: Build Meets \"Proficient\" criteria and examples and evidence cited provides a robust context for response Defines the essential inputs or assumptions needed to build the model, supporting claims with evidence and examples Techniques: Metrics Meets \"Proficient\" criteria and articulation is exceptionally clear and logical Determines the operational performance metrics the model should achieve Procedures: Bridging the Gap Comprehensively analyzes the overall economy to determine the variables that should go into the model and describes why each variable is an important driver Discusses the role that variables such as market conditions play in creating financial models that effectively achieve strategic objectives Provides an explanation bridging the gaps between the equations necessary and the conceptual idea Analyzes the overall economy to determine the variables that should go into the model and describes why each variable is an important driver, but response is cursory or illogical Discusses the role that variables such as market conditions play in creating financial models that effectively achieve strategic objectives, but response is cursory or illogical Describes why the model is needed and defines its purpose, but response is cursory or illogical, or is not defended Selects a type of model that is not appropriate based on its purpose and the necessary variables Does not analyze the overall economy to determine the variables that should go into the model 4.8 Does not discuss the role that variables such as market conditions play in creating financial models that effectively achieve strategic objectives 4.8 Does not describes why the model is needed and does not define its purpose 6.4 Does not select a type of model 6.4 Provides an explanation bridging the gaps between the equations necessary and the conceptual idea, but response is cursory or illogical Defines and supports the essential inputs or assumptions needed to build the model, but with gaps in logic, detail, or support Determines the operational performance metrics the model should achieve, but response is cursory or illogical Does not provide an explanation bridging the gaps between the equations necessary and the conceptual idea 6.4 Does not define and support the essential inputs or assumptions needed to build the model 6.4 Does not determine the operational performance metrics the model should achieve 6.4 Techniques: Processes Meets \"Proficient\" criteria and analysis is exceptionally clear and logical Comprehensively analyzes the financial processes needed to engage in building the model Interpretation: Analyze Meets \"Proficient\" criteria and analysis is exceptionally clear and logical Accurately calculates the selected operational performance metrics and analyzes results in terms of company's needs and purpose of financial model Interpretation: Supervisor Meets \"Proficient\" criteria and demonstrates exceptional insight into the nuances of communicating with different audiences Meets \"Proficient\" criteria and demonstrates exceptional insight into the nuances of communicating with different audiences Meets \"Proficient\" criteria and demonstrates exceptional insight into the nuances of communicating with different audiences Meets \"Proficient\" criteria and provides suggestions for achieving optimal balance between risk and return Interpretation: Colleagues Interpretation: Financial Institution Implementation: Strategy Does not analyze the financial processes needed to engage in building the model 6.4 Does not calculate the selected operational performance metrics 4.8 Discusses how to most appropriately convey analysis to supervisor and defends rationale Analyzes the financial processes needed to engage in building the model, but analysis is cursory or illogical Calculates the selected operational performance metrics and analyzes results, but calculations are incorrect or are not in terms of company's needs and purpose of financial model Discusses how to convey analysis to supervisor and defends rationale, but response is cursory or illogical Does not discuss how to convey analysis to supervisor 4.8 Discusses how to most appropriately convey analysis to colleagues and defends rationale Discusses how to convey analysis to colleagues and defends rationale, but response is cursory or illogical Does not discuss how to convey analysis to colleagues 4.8 Discusses how to most appropriately convey analysis to financial institution and defends rationale Discusses how to convey analysis to financial institution and defends rationale, but response is cursory or illogical Does not discuss how to convey analysis to financial institution 4.8 Recommends an implementation strategy that balances risk with return based on anticipated results of model, justifying recommendation Recommends an implementation strategy that balances risk with return, but recommendation is cursory, illogical, not based on anticipated results of model, or not justified Does not recommend an implementation strategy 6.4 Implementation: Stakeholders Meets \"Proficient\" criteria and demonstrates exceptional insight into the interrelationship between organizational stakeholders and successful implementation Identifies key organizational stakeholders who will need to be involved in implementation and discusses their role in ensuring successful implementation, defending reasoning Implementation: Balance Meets \"Proficient\" criteria and discussion demonstrates exceptional insight into achieving optimal balance between risk and return Discusses how recommended strategy will effectively balance risk with return and substantiates claims with examples and evidence Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-toread format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Identifies key organizational stakeholders who will need to be involved in implementation and discusses their role in ensuring successful implementation, but response is cursory or illogical, or reasoning is not defended Discusses how recommended strategy will effectively balance risk with return and substantiates claims with examples and evidence, but response is cursory or illogical Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not identify key organizational stakeholders who will need to be involved in implementation 6.4 Does not discuss how recommended strategy will effectively balance risk with return 6.4 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 4 100% FIN 691 Milestone Four Guidelines and Rubric The results are in, and now you must interpret the results based on the inherent meaning of each of the calculations as well as the qualitative factors that shaped your model. Now, let's tell the story. You get paid the big bucks to guarantee a favorable outcome and to select the investment with the highest net present value (NPV). Make your case! Prompt: In Milestone Four, you will construct a draft of your Interpretation of Results. Specifically, the following critical elements must be addressed: IV. Interpretation of Results A. Calculate the operational performance metrics you selected, and analyze the results of your calculations in terms of the company's needs and the intended purpose of the financial model. B. Discuss how you would most appropriately convey this analysis to the following decision-makers, being sure to articulate the distinctions necessary to effectively present to the specific audience: 1. Your supervisor. Ensure that you defend your rationale. 2. Your horizontal managers and/or colleagues. Ensure that you defend your rationale. 3. The financial institution considering granting you a line of credit. Ensure that you defend your rationale. Guidelines for Submission: You will construct a 500-word synopsis of your interpretation of results. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Calculation of Performance Metrics Proficient (100%) Fully and thoroughly calculated and analyzed performance metrics Analysis of Results Fully and thoroughly analyzed the results considering the intended purposes and needs of the company Needs Improvement (70%) Calculated and analyzed performance metrics, but response needs improvement in scope and clarity Analyzed the results considering the intended purposes and needs of the company, but response needs improvement in scope and clarity Not Evident (0%) Did not calculate or analyze performance metrics or response needs considerable improvement Did not analyze the results considering the intended purposes and needs of the company Value 30 30 Articulation of Results Fully and thoroughly detailed how results will be disseminated to various level of management, colleagues, financial institutions, and other relevant end users Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Somewhat identified how results will be disseminated to various level of management, colleagues, financial institutions, and other relevant end users, but response needs improvement to provide clarity Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Did not identify how results will be disseminated to various level of management, colleagues, financial institutions, and other relevant end users, or response needs considerable improvement Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 30 10 100%