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How would you go about answering these? 1. Assess the current financial health and recent financial performance of the company. What strengths and/or weaknesses would
How would you go about answering these?
1. Assess the current financial health and recent financial performance of the company. What strengths and/or weaknesses would you highlight to Adeline Koh? 2. Forecast the firm's financial statements for 2016 and 2017. What will be the external financing requirements of the firm in those years? Can the firm repay its loan within a reasonable period? 3. What are the key driver assumptions of the firm's future financial performance? What are the managerial implications of those key drivers? That is, what aspects of the firm's activities should Koh focus on especially? 4. What is Star River's weighted average cost of capital (WACC)? What methods did you use to estimate WACC? What are the key assumptions that especially influence WACC? 5. What are the free cash flows of the packaging- machine investment? Should Koh approve the investment Step by Step Solution
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