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Pick a business idea of your choice which you intend to start and do the following: 1. Evaluate the local markets in light of stock

Pick a business idea of your choice which you intend to start and do the following:

1. Evaluate the local markets in light of stock markets, interest rates, currencies and commodities. Explain how these elements would affect your proposed business.

2. Financial Management

a) Choose a form of business. Describe why?

b) Project cash flows for the next five years (derive from assumptions about revenues and expenses) – use excel spreadsheet to perform this task

c) Discuss sources of financing for the project

3. Risk Analysis

Evaluate the risk of this venture and compare with public companies in the same industry. Use CAPM to discover the required return on equity.

4. Cost of Capital

Determine the cost of capital and explain its effects on rates of return. You should use this for discounting cash flows in the valuation step.

5. Valuation

a) Value these cash flows based on corporate finance principles. Use multiple methods (including multiple growth models).

b) Give final accept/reject recommendation and explain reasons

Please assist me for this questions and elaborate the answers well. The word limits up to 2000 words. Kindly complete this as soon as possible. Thank you.


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