This assignment will apply the lessons from chapter 1 to chapter 3 and Chapter 12. Lesson from Chapter 1 (An overview of Financial Management and the Financial Environment). You are required to form any type of business either it is a sole proprietorship, partnership or corporation. Lesson from Chapter 2 (Financial Statements) You are required to prepare the financial statements (balance sheet and income statements for 2 years from Year 2018 to 2019. Also to prepare a cash flow statements for Year 2019. Lesson from Chapter 3 (Analysis of Financial Management) You are required to use FIVE (5) main ratios and to show the calculations of the ratios and analyse the performance of the firm for 2 years. LIQUIDITY RATIOS - ONLY 1 RATIO EFFICIENCY RATIO - AT LEAST 2 RATIOS DEBT RATIO - ONLY 1 RATIO PROFITABILITY RATIO-ANY 2 RATIOS MARKET VALUE - 2 RATIOS Lesson from Chapter 6 (Risk & Return) Assume your firm buy TWO (2) stocks, please name of the stocks either local or foreign. Analyse the expected return and standard deviation for each of stocks and portfolio. Please refer to the current market price (actual price from Bursa Malaysia or any exchange trade). You have to decide how many shares to invest in each of these stocks. Create your own probability, expected return and your standard deviation. Lesson from Chapter 5 & 7 (Bond & Stock Valuation) a) You company buy TWO (2) more stocks, one is common stock and the other one is preferred stock. You have to evaluate all the FOUR (4) stocks according to the Discounted Dividend Model (DDM) - zero growth, constant growth rate and variable growth rate and preferred stock valuation. You must name each of the stock and the stock price must according to current market price. Then calculate the value of each stocksand analyse either each stocks are undervalued or overvalued bonds. b) Your company buy TWO (2) bonds either locally or foreign bond. You have to evaluate these bonds. Find the actual price, the interest rate and the coupon rate for these bonds. Then calculate the value of the bond and analyse either both bonds are undervalued or overvalued bonds. c) Your company is considering few new projects in Selangor and Kuala Lumpur. Therefore, you have to evaluate all these projects according to: i) Payback period -an independent project. Required to recover the initial outlay in 3 years. Discounted payback period -a mutually exclusive project. Required to recover the initial outlay in 3 years. iii) Net Present Value (NPV)- a mutually exclusive project. iv) Internal Rate of Return (IRR) an independent project. Profitability Index - a mutually exclusive project. d) Analyze and evaluate the outcome from (a) to (g). e) Recommend to the management and summarize your findings. Lesson from Chapter 12 (Financial Planning and Forecasting) - KIV To provide Pro-forma Income Statement and Balance Sheet either for 2018/2019. To design your own decision for sales growth and dividend payout ratio or the common dividend. Also to prepare the cash budget. Analyse your pro-forma of financial statements. Table of Content: 1.0 Introduction 2.0 Company Background 2.1 Organisation Chart 3.0 Financial Statements & Firm Performance for 2 Years 3.1 Current Ratio 3.2 Management/Efficiency Ratio 3.3 Debt Management Ratio 3.4 Profitability Ratio 3.5 Market Value Ratio 4.0 Risk & Return 5.0 Stock Valuation 6.0 Bond Valuation 7.0 Capital Budgeting 8.0 Financial Planning and Forecasting 8.1 Pro-forma Balance Sheet 8.2 Pro-forma Income Statement This assignment will apply the lessons from chapter 1 to chapter 3 and Chapter 12. Lesson from Chapter 1 (An overview of Financial Management and the Financial Environment). You are required to form any type of business either it is a sole proprietorship, partnership or corporation. Lesson from Chapter 2 (Financial Statements) You are required to prepare the financial statements (balance sheet and income statements for 2 years from Year 2018 to 2019. Also to prepare a cash flow statements for Year 2019. Lesson from Chapter 3 (Analysis of Financial Management) You are required to use FIVE (5) main ratios and to show the calculations of the ratios and analyse the performance of the firm for 2 years. LIQUIDITY RATIOS - ONLY 1 RATIO EFFICIENCY RATIO - AT LEAST 2 RATIOS DEBT RATIO - ONLY 1 RATIO PROFITABILITY RATIO-ANY 2 RATIOS MARKET VALUE - 2 RATIOS Lesson from Chapter 6 (Risk & Return) Assume your firm buy TWO (2) stocks, please name of the stocks either local or foreign. Analyse the expected return and standard deviation for each of stocks and portfolio. Please refer to the current market price (actual price from Bursa Malaysia or any exchange trade). You have to decide how many shares to invest in each of these stocks. Create your own probability, expected return and your standard deviation. Lesson from Chapter 5 & 7 (Bond & Stock Valuation) a) You company buy TWO (2) more stocks, one is common stock and the other one is preferred stock. You have to evaluate all the FOUR (4) stocks according to the Discounted Dividend Model (DDM) - zero growth, constant growth rate and variable growth rate and preferred stock valuation. You must name each of the stock and the stock price must according to current market price. Then calculate the value of each stocksand analyse either each stocks are undervalued or overvalued bonds. b) Your company buy TWO (2) bonds either locally or foreign bond. You have to evaluate these bonds. Find the actual price, the interest rate and the coupon rate for these bonds. Then calculate the value of the bond and analyse either both bonds are undervalued or overvalued bonds. c) Your company is considering few new projects in Selangor and Kuala Lumpur. Therefore, you have to evaluate all these projects according to: i) Payback period -an independent project. Required to recover the initial outlay in 3 years. Discounted payback period -a mutually exclusive project. Required to recover the initial outlay in 3 years. iii) Net Present Value (NPV)- a mutually exclusive project. iv) Internal Rate of Return (IRR) an independent project. Profitability Index - a mutually exclusive project. d) Analyze and evaluate the outcome from (a) to (g). e) Recommend to the management and summarize your findings. Lesson from Chapter 12 (Financial Planning and Forecasting) - KIV To provide Pro-forma Income Statement and Balance Sheet either for 2018/2019. To design your own decision for sales growth and dividend payout ratio or the common dividend. Also to prepare the cash budget. Analyse your pro-forma of financial statements. Table of Content: 1.0 Introduction 2.0 Company Background 2.1 Organisation Chart 3.0 Financial Statements & Firm Performance for 2 Years 3.1 Current Ratio 3.2 Management/Efficiency Ratio 3.3 Debt Management Ratio 3.4 Profitability Ratio 3.5 Market Value Ratio 4.0 Risk & Return 5.0 Stock Valuation 6.0 Bond Valuation 7.0 Capital Budgeting 8.0 Financial Planning and Forecasting 8.1 Pro-forma Balance Sheet 8.2 Pro-forma Income Statement