CORPORATE FINANCIAL ANALYSIS - PROJECT

Report (final report to be submitted)

Executive Summary

This section will contain a summary of the full report and your findings. It will also provide your conclusion. This should be only of 1-2 pages and is only a summary.

Introduction and Background

Discuss the background of the Company that you are analysis and especially highlight any items that are particularly important about the company and its future growth.

Methodology

Discuss methodology that you are using in your analyses.

Under each technique/methodology provide the assumptions that you have used and calculations of the assumptions.

Why do you feel this analysis is important.

Results

Discuss the figures/results of each test and describe what it shows.

Discussion and Conclusion

In this section provide interpretation of the results and draw a conclusion.

In the end, on the basis of your analysis provide a conclusion about the performance of the company and its future prospects.

Appendix

A-1 Attach XL sheets of results

A-2 Attach copy of financial statement data that you have used

Financial Statement Analysis and Forecasting

Project Requirements

You have been assigned a PSX listed company for your analysis.

Perform an evaluation of your company through following:

Conduct Strategic Financial Plan and Forecasting for your company providing THREE YEAR PROJECTIONS OF FINANCIAL STATEMENTS (you will need to project AFN, establish the capacity intensity ratio, determine the fixed assets needed for each year, project sales growth for each year, etc.

Conduct Scenario Analysis of the company on a comprehensive Income Statement.

Conduct Sensitivity Analysis of all components of the Income Statement.

Calculate the Degree of Operating Leverage, Accounting Breakeven and Cash Breakeven of the Company.

Using information from past three years data, find the EBIT Breakeven of the company with leverage and without leverage (Capital Structure)

Find optimal capital structure of the firm.

NOTE:

Before the presentation you need to submit soft copy of report, XL worksheets and PPTs.

Remember to write the course name and name of students in the group in the subject of email.

At the time of the presentation you need to submit the final report, bound and well presented. No written material will be accepted.