can someone please tell me if this makes sense? if it doesn't please tell me why.

Executive Summary Purpose of Report As McCormick & Company are considering expanding their franchise, many factors come into play when they decide where to build a new factory. They plan on expanding their product lines and increasing overall production capacity. Before building an additional factory, it is important that we calculate the financial benefits for the future of McCormick & Company. By additional stocks, there is a risk that they will be taking if investors do not accept. The construction of the factory will not have an impact on the current cash flow if stocks are added and the expected return will benefit the company in the end Weighing and balancing the risk of change, such as building a new factory, is crucial for the company to be precautious of the choices they make. The purpose of this report is to: Use capital budgeting to better understand the financial implications of developing capital structure Assist McCormick & Company in selecting the best financing option Understand how McCormick & Company's anticipated growth, debt, market retum, and marginal tax rate will affect their bottom line if they choose to purse opening the new factory T Methods Examining current cash flow within the company Deciding the best finance options of a loan that will have little impact on the company's revenue Review of the land's current value and forecast future value Determining the expected return rate of per share Findings and Conclusions In order to buy the land in Largo, Maryland for $4.424.000 McCormick & Company will have to take out a commercial acquisition and development loan for 70% Loan to Value (LTV) of what they offered Focus 5 le- 8:51 PM * e 50% 0 Bte L AG Type here to search 11/25/2019 Dee g uie capellu Telul de UL pel sule Findings and Conclusions In order to buy the land in Largo, Maryland for $4,424,000 McCormick & Company will have to take out a commercial acquisition and development loan for 70% Loan to Value (LTV) of what they offered James Francis as well as making a 30% down payment to secure the loan. James should accept McCormick & Company's offer and select the 20-year loan with a with a fixed annual interest rate of 6.0% and value of $269,993.14. I would recommend this loan based on the overall total cost. If the company carefully increases the stock amount, the expected return from the additional stock is 5.63%. McCormick & Company disclosed the company's levered beta of 0.60 as well as the expected return on the market of 8.03%. Before these additions, we needed to figure out the expected future value of the company with these changes. By using the CAPM it is determined that the dividend end per share next year will be $2.28, with a constant growth rate of 8.70%. As of this year, the stock price per share is $155.70. Liz accumulated $700,000 in her Thrift Savings Plan; her monthly pension is $7.500 monthly. Based on a life expectancy of 17.5 years after the age of 70, and a bond rate of 3% and monthly rate of bond at 0.0025 Liz's annuity payment will be $4288.62. Kathy and Stan plan on purchasing a bome in Garrison Maryland. They have a budget of $500,000 with S100,000 for a down payment. The net interest rate for the 15-year mortgage (4%) is less than the 30-year interest rate (4.5%). The monthly payment for the 15 year rate is $2958.75 with an added $1.000 extra for property taxes and insurance. The 15-year mortgage is $932.01 per month more expensive than the 30-year rate. If Kathy and Stan have the finances to be able to afford the 15-year mortgage versus the 30-year mortgage it will benefit them financially in the future to choose the 15-year mortgage because they will own the house in a shorter time period. Recommendations for increasing Revenue Capital budgeting and ideal capital stricture will support McCormick & Company in making the best decisions when weighing the financing options available to them to purchase the new factory McCormick & Company must take into consideration the WACC (Weighted Average Cost of Capital), TVM (Time Value of Money). NPV (Net Present Value), taxes, cost of capital, risks, and constraints for the purchase of the new factory. Focus + 90% 647 words 50% O 852 PM 11/25/2019 Type here to search - 6