this is the questionplease help me thanksits a project about renovation one level of a building. project management case .

This is a renovation project On the basis of group work as a personal papers, the details can be change, group as the darf, belong to the project management of low level, more strict personal papers, high-level project management. In the group papers and speeches, I set the financial limit of $300,000.00. The total project is 180 days, and the formal construction will be about 100 days from January to march next year. Indoor area 270 square meters, outside 90 square meters not make big changes. Pay attention to the points that the tutor points out: construction in the building, elevator safety elevator inside cover, goods and garbage transportation, to neighbor's notice, labor cost investigation PURPOSE The purpose of this single assessment is to: Demonstrate the ability to define an industry project involving the selection of a suitable methodology for an approved industry topic. Produce a project execution plan of professional standard that meets the host organization needs by applying estimation techniques and the development of a full planning and scheduling process as well as academic requirements. Including the use of project management software TASK/ASSIGNMENT This assignment builds on the project charter. The project management plan is the core of the project. It is the integrated framework which includes the management plans from all of the project management knowledge areas. It ties these management plans together into a collective whole which is then used to manage the project through to completion. The project plan is a detailed document and as such your assessment should provide enough detailed planning to complete the proposed project, it will also provide some academic grounding. As an individual, you will produce a project management plan, from one of the scenarios given in assessment 1. You may either build on your existing charter, or choose to develop a different project scenarios: Renovating the 8th floor of building into a full library space that incorporates modern ways of study, including collaborative work spaces, informal seating, technology, and self-checkout capabilities of course text. DESCRIPTION The purpose of this assessment is to give you an opportunity to apply your understanding of Project Management principles, tools and techniques covered in class by developing a Project Plan. Remember that the objective is to demonstrate your understanding of these concepts. This is an academic piece so you will need to use a narrative to explain the managerial implications in each section. The academic narrative is as important as your application of the tools and systems of the course to your project plan. A Project Management plan should include the following; 1. Title page 2. IntroductionI already wrote it background and purpose 3. Project Management Approach 4. Project Scope and management plan 5. Schedule Baseline and Work Breakdown Structure - Provide both Gantt and Network diagrams with key resources against work packages and schedule/staffing management a. Include in your plan a list of scheduled items / activities or events relating to Iwi or Maori protocols that an organization may need to use before or during your project 6. Milestone list 7. Change management plan 8. Communication management plan 9. Cost baseline and management plan 10. Procurement management plan 11. Quality baseline and management plan 12. Risk management plan including risk register 13. Project approval requirement 14. List of references 15. Appendices Have to have budget form Gantt chart template and critical path This is the photo in future we want revocation now is my group as The project plan is defined as follows: Project objectives, reasons, background, target description, project manager, project risk, project budget summary, project deliverables, summary milestones and project authorization related projects. Project plan The total budget$30,000,00.00 Project cycle 180 Days Project objective, target description, and campus background Reclassify the eight layers of library area, make reasonable use of space, transform and create modern learning mode. Time manager The three parties are assisted by the project manager of the general school district, and the project manager of the Auckland campus is in coordination with the construction manager. Project Financial The material costs half the total budget Labor cost 10 people per-day /100 days Summary Milestone Schedule Began to 01/2018 End of the 03/2018 Project Examine and approve Project Planning Construction (demolition, cutting area, walking line, carpet, wall, equipment) The project acceptance Project risks management (including status report, problem management, scope control, deliverables quality control, risk management and communication management) Project approval requirements Project authorization 2 Project purposeJustification and Project Description 2.1 Project purposeJustification 2.1.1 Background The library is a certain place of the collection of sources of information and similar resources, that would be defined a community for reference or borrowing (Bopp, R. E., & Smith, L. C. (Eds.). ,2011). And campus library has the particular effect that where is located in the college and university campuses and mainly serve to the students and its own faculty by the importance of providing academic support in research and relevant information, meanwhile it usually offers the related resources on specific courses, such as copies of textbooks and article reading held on \"reserve\" (Bird, D., & Roberts, P. M. ,1998). The campus library should provide a quiet learning space, and also has the condition for teamwork. In most countries, campus libraries are becoming increasingly digitally oriented, and as the gateway to researchers to access various resources, both print/physical and digital Since OPAIC established in 2010, its 8th floor be designed as a comprehensive site for its institute member's leisure time spending and self-learning, over the years, the over usage of this floor causes old environment, and outdated equipment, ragged facilities, indefinite educating target, as well as its losing on information resources by imperfect management that shows its initial designing shortage, and it is unable to meet the current teaching requirements, and useless on effective learning assistance and tech support. The main aim of this renovation work is to re-build the meaning and function of the campus library and find out the method to create a brand-new studying environment at the present limited space. 2.1.2 Purpose The project of the renovating the 8th floor of OPAIC is to create a better studying place, more efficient to use the present space, build-up a fully library-learning atmosphere from its original multi-function room. It shows generous attitudes of school-side that add matched equipment to provide the opportunities considerably that students would to practice and idea demonstrate on their own subjects by the modern learning methods. It offers the students working spaces of collaboration, more specific information resources for reference and self-checkout for their conveniences, a quiet and comfortable site to the whole school members, increases the responsibilities of mutual supervision on public property maintaining. To this end, it is being decided to focus on attracting individuals by providing an attractive and cozy space to promote on-campus interaction and connections, meanwhile, readers would feel relaxed and receptive to converse and discover. Learning environment helps students to learn also (Palloff, R. M., & Pratt, K. 1999). Objectives Value The renovated library should conform to Maximizes the space of library using, provides OPAIC arrangement under reasonable budget conveniences, crates its higher value New library adds more digital equipment in boxes, to please the diversified learning requires Moderate investment brings the attractiveness, and meet advanced educating demands New designing work should be adaptable and Rational distribute the costs on additional new efficient to the better features and necessary features, future maintaining cost under considerate additions Should meet OPAIC educating system quality Increased satisfaction by different subjects requires requirements in performance Renovating Projects must follow the schedule Qualified Management, and highly controlling when process framework capability 2.2 Project Description (All the description as you can see in the Appendix 1) Book shelves area The Book shelves area is the main activity place in the campus library, the renovation of this place should pay attention to several aspects: Lighting Fully use the daylighting by natural light in the book shelves area, so that the reading area can be well lit and uniform. Reflective glass be adapted for external window in order to avoid directing-sunlight. Color The color of book shelves area need to be pure and fresh, white color be considered the priority choice. The ceiling and floor could use the light yellow or light green, and bookshelf could be grey or other cold color choices. Reading table and chair could match with tea-color, it through the harmonious combination of the cold tune to create a comfortable color space for the readers. Airiness It is very important to maintain the fresh airiness in the opening Book shelves area, and requires to be well ventilated by the mix wise usage of natural and mechanical methods. To the spaces that mainly relay on air equipment to adjust the temperature and humidity where would not be designed the window as completely fixed style, but be installed air conduits to keep ventilating. In a short, it is must to ensure the qualified indoor airiness. Comprehensive space Reasonable maximize the book borrowing area to practical its specific comprehensiveness. The area requires to build-up with book storing space, searching space, consulting space, lending space, reading space, etc., the decorative renovation of the certain space should be combined in flexible, efficient and reasonable structure. Besides, the mainly service machine such as copy machine, printer, digital camera should be equipped at the appropriate location. The lounge The lounge is designed at one side of opening space, and is divided into 4 meeting rooms, the purpose of this place be arranged is for provide the conveniences for students self-learning and group discussion, as well as school management department hold objective meetings. To truly achieve the goal of combination of selfstudying practical discussing, and positively encourage the idea discovery and exchanging and interaction, so that increase various learning capabilities. The lounge requires quiet, spacious and bright environment. The renovation material should be adapted tightness goods, anti-dusting, easy for cleaning, soundproof and hardly distorting under the change of temperature and humidity. Wall-mounted TV sets, projectors placement to meet modern educating demands. Leisure area Leisure area is the place for reader resting, consist of refresh area, coffee seat and recreational informal reading seat. The style of decoration in leisure area should be elegant, relaxed, comfortable, carefree, bright is the good choice. Decorating style is closely around the leisure theme to use various elements, fully use colors, furniture, books and any others to create the relaxing atmosphere. It would be wise that set up in the areas with broad vision and overlooking the out-door view. In additional, make full use of corridor, deck, and probable spaces for effective arrangement; comfortable sofa, bar-chair, tea table, flowers & plants cater to the ambient. The adornment of coffee area decorates should notice to avoid vulgar tendency, appropriate choose Mori style ornament to highlight NZ unique culture. Limits The project of renovation only based on the present space, not change any original building structure; the central air conditioning system & air conduit in existence may only be carried though the cleaning process and still keep its utilizing after the whole renovation be accomplished; OPAIC roles the main-decision making, and have to report the project process to headquarter in time; project must follow the schedule so that would avoid long-term impacts to classes and neighbors. 3 Maori protocols In 2004, Otago Polytechnic signed a Memorandum of Understanding (MoU) with the four Araiteuru Papatipu Rnaka: Te Rnanga Moeraki, Kti Huirapa Rnaka ki Puketeraki, Te Runanga tkou, and Hokonui Rnanga (Russell, K. ,2014). This memorandum clearly determines the school's support for the development of Maori culture and provides the necessary assistances to Maori. Meanwhile, in the process of renovating the library, we will purchase some decorations with Maori cultural features to decorate the library. Furthermore, we will buy some of the characteristics of the Maori cultural decorations to decorate the library (we would like to purchase decoration with Maori cultural features and decorate the campus library), and sort out some separate bookshelves, specifically used to install Maori knowledges. It would be enable students and teachers to better experience the Maori culture and atmosphere. 4 Project Risks Project risk management refers to the process of project risk from identification to analysis. (Chapman, C., & Ward, S. ,2003). Even it takes measures and a series of processes, including the positive impact of the positive factors and the negative factors to minimize the impact of two aspects. From the point power from the class, it shows that project risk includes project management integration, information, human resource, contract, cost, time, quality and scope. Therefore, we can analyze and identify the risks of renovating the 8th floor of OPAIC from these eight ways. First of all, it needs to identify the risks of this project. Risk identification includes external unpredictable, external predictable, internal non-technical, technical, legal. In order to identify all the potential risks to a particular project, it may be necessary to undertake a risk identification program. After our analysis, it is considered that there are six risks in this project, and then we analyze the impact of every risk. Safety OPAIC is next to the Queen Street which is most bustling street in Auckland. Therefore, it need to pay special attention to the construction to ensure the safety of passers-by and students. If there is a problem in terms of security, the reputation and development of the school will be fatal blow, in a meantime, this is also extremely irresponsible for pedestrians and students. Human resource It means that we need to ensure that workers can complete the project by quality and that there is a need for a second set of programs to prevent certain workers from working on time. If we If we ignore the risk of human resources, it is very likely that we cannot complete the project on time. Cost This is the risk that every project will face. Our budget is less than 450,000 dollars, therefore, decoration market price fluctuations and cannot be completed on time is the risk of increasing costs we face. Obviously, our task is to control the cost within a reasonable range. Fourthly, time. This project is to renovate the library of the OPAIC, and in order not to affect students attending classes, the plan is to implement the project during the Christmas Holiday. Public implementation It should be needed to take into account the specific situation of OPAIC that there are some public implementation, such as two elevators, public stairs. Therefore, it will be considered that the damage of public facilities is a risk of this project. It is also one of our responsibilities to protect the school's public property and security of students and teachers. If we do not pay attention to this aspect, this will cause the damage to the public implementation, furthermore, it will affect the progress of the project and the use of the student, consequently, it result in the increasing of the time and cost. Time This project is to renovate the library of the OPAIC, and in order not to affect students attending classes, the plan is to implement the project during the Christmas Holiday. It is very crucial to control the time to finish this project. If time risk cannot be avoided and solved, the project will be postponed, furthermore, it will result in that the increasing of the cost and affect students to learn and use the library. Quality Library is a place where students can learn the knowledge and communicate with each other. It is a core for a university so that we must ensure the quality of every facility and renovation. it is responsible for students and university. If the quality of the problem is not qualified, it will be a threat to the safety of students. Sixth, unable to satisfy the students and staffs of the OPAIC. The library is serving the students, and our aim is to build a modern and modern library to improve students' learning experience and the environment, therefore, if the students don't feel satisfied with the new library, it means that this project is failed. Then, we need to do assessment to determine their ranking or status in terms of type, impact and probability. What more crucial is that we need to response. Mitigating project risk requires first, to establish an appropriate system strategy, then take out insurance as appropriate against those risks that are insurable, and finally plan specific actions to deal with the remainder. 5 Project deliverables and Summary Milestone Schedule 5.1 Project deliverables A 270+90sq ft. , finish library 4 meeting room, Finish Leisure area, Finish Book area, Finish receptions area , Finish drinking area , finish equipment (TV, refrigerator, projectorlighting) 5.2 Summary Milestone Schedule The milestone program is a goal plan that shows that in order to achieve a specific milestone, to complete a series of activities (Andersen, E. S., Grude, K. V., & Haug, T. 2009). Milestone plans to control the progress of project work and ensure the achievement of the overall goal by establishing milestones and testing the arrival of milestones. Project milestones is beneficial for the whole project The milestone could be determined in line with the overall target system and construction plan. The plan itself contains control of the results, is conducive to the three managers supervision, control and transfer. It plays a good bridge between management and construction. It clearly stipulates the scope of the project and the responsibility and obligations of the parties to the project. In term of the renovation, first of all, we will employ the most professional decoration team to design a decoration program in the next two weeks. And then, approximately between 10 October to 15 November we will submit the design program to Otago Head Office. From 16 November to around January, the design program will be presented to Auckland government. Taking into account the middle of a Christmas holiday, the trial process may be a bit long. We will notify the surrounding neighbors and other school departments immediately after we have been approved in January. Between January to March, a total of 10 people in the construction team to complete the renovation of the new library in approximately 100 days. In details, In the first fifteen days, the workers will carry out the removal of the old library, including the removal of the wall, floor and so on. In the next 10 days, the team should complete the transformation of hydropower, while the need for further measurement of furniture position. In the next 30 days, paint the walls, pavement, and tiles to be finished by team, this is the most toilsome and complicated work. Then, in the next 15 days, team need to finish installing the furniture, including bookshelf tables and chairs installation, electrical installation, socket installation, window installation, lighting installation and so on. In the last five days, the construction team needs to make the final details of the rectification, including the construction team needs to make the final details of the rectification, including placing decorations, adjusting electrical appliances and so on. After 100 days renovation, we will invite government officials, managers of Otago and OPAIC to conduct a review. 6 Project Summary budgets The formal document be required by OPAIC BOARD of directors for all major renovation capitals that the total project cost not to exceed $300,000. And documents describe the renovation project, its purpose, objective and scope, as well as its schedule, value, and information about potential environmental effects. All the major project capital report must be submitted to either OPAIC AUCKLAND CENTRAL CAMPUS or OPAIC BOARD for precise consideration and approval prior to Auckland Regional Council. Budgets are driven higher by the objective of providing sufficient funds to achieve project goals (Ballard, G. 2012, July). The budget consists of 3 main parts: all service charge and papers, materials and labors, reserve funds for all unexpected incidentsfor further described such as: project design consulting fees, construction administration and inspection fees, project insurance, construction costs and other administrative costs such as council review fees, files printing, acquisition costs, and all fees in detailed by necessary. In the human recourse part, we may need to reference NZ Employment law (https://www.employment.govt.nz/about/employment-law/) and relevant regulations to estimate the basic costing. Renovation project capital requires approval of the Board, University President and Auckland Council. As a part of capital budget, Campus Planning take the responsibility of the project planning process. A certain proportion of reserve capital roles as the Emergency Fund for special circumstances such as community concern, or the significant environmental impact, or project incident. And if there is a restingbudget after the project accomplished, it will invest on additional information purchasing or future equipment replacing. The project planning and designing of the renovation is appointed by a building committee. After designing step be completed, a representative will designate as the Executive supervision by Building Committee to response the renovation work oversight. The Executive will supervise in all cases with the total project cost within $300,000, and will ensure the Building Committee coordinates with campus for project review activities during the appropriate phases. Project Summary budgets form MATERIAL AMOUNT ESTIMATED COST Sand 10 m $25,000.00-$30,000.00 Cement 4 tons Putty Paint vehicle 6kg *40 bottles Timber $3,000.00 $2,000.00 Cable 160M $400.00-$500.00 Door 5 $200.00-$300.00 Switch 20 Transformer 2 $600.00 Regular glass 10* (2.5M * 3M) $5,000.00 Mirror glass 6 Tile 10 $500.00 Spotlight 20 $300.00 Lamp 6 $500.00 Carpet 350 $40,000 Reception table 1 $1,000.00 Bookshelf 12 * (1M *0.4*1.8M) $7,000.00 Sofa 6 sets $20,000.00 Meeting table 6 $3,000.00 Chair 50 $1,500.00 Study table 2 $1,500.00 Bar chair 18 $500.00 Projector 4 $30,00.00 TV set 6 $15,000.00 Multi-function printer 2 $1,500.00 Ornament 15 $1,000.00 Flowers and plants 8 $1,000.00 Total $150,000.00 7 Project approval requirementsProject managers and Authorizations 7.1 Project approval requirements According to the law of New Zealand, if we want to renovate the 8th of the OPAIC, we need to go through the approval of the five departments. First of all, we need to consult with the owner of the office where the school is located and get their approval. Secondly, we must communicate with the neighbors and the managers of the rest of the floor to ensure that this project will not affect their daily life, work and study. Thirdly, certainly, our plan of project needs to get permission of OPAIC. Fourthly, OPAIC is the campus of the Otago, therefore, this project must get the authorizations of Otago Head Office. Fifthly, according to the provisions of the Auckland government, we must submit our design drawings to the government, including building location plane, building plane, elevation view, section view, furthermore, get the approval of the government. Sometimes project requirements can change in the blink of an eye (Chin, G. 2004). 7.2 Project managers According to the law of New Zealand, if we want to renovate the 8th of the OPAIC, we need to go through the approval of the five departments. The project manager's leadership style as a success factor on projects (Turner, J. R., & Mller, R. 2005, June). First of all, we need to consult with the owner of the office where the school is located and get their approval. Secondly, we must communicate with the neighbors and the managers of the rest of the floor to ensure that this project will not affect their daily life, work and study. Thirdly, certainly, our plan of project needs to get permission of OPAIC. Fourthly, OPAIC is the campus of the Otago, therefore, this project must get the authorizations of Otago Head Office. Fifthly, according to the provisions of the Auckland government, we must submit our design drawings to the government, including building location plane, building plane, elevation view, section view, furthermore, get the approval of the government. 7.3 Authorizations The project authorization is a conventional process in purpose of verify the start-up and further development of the proposed project (Johnson, S. P., Menor, L. J., Roth, A. V., & Chase, R. B. 2000). It is aims to confirm the project's feasibility and costeffectiveness, so that could be step though in the phases of initiation and processed planning. It involves those critical stakeholders to project reviewing and analyzing, that in order to judge the value of the project. As a process, it performs a series of activities on project objectives, project deliverables, benefits and impacts. A requirement be set up and submitted to its sponsors and customers for investigation. Project reviewingit aims on review and evaluate the project feasibility and costeffectives. Project Approving/Rejecting-- The final activity is to generate the responding to the proposal and submit it to the development team. My company is NVIDIA CORPORATION (NVDA) You need to choose a company that is in the same industry as NVidia. Nike is an example. As same as NVidia, like Intel, Qualcomm, Mediate. PURPOSE The purpose of this assessment is to: Analyses working capital decisions, interpret financial statements, make capital budgeting decisions and value financial assets within a managerial context; Provide the student with the basic analytical tools required to make value creating financial decisions. Critically evaluate the role of finance in strategic decision-making. TASK/ASSIGNMENT Based on the simulated stock exchange game and the in-class test, learners will be given different cases to analyse and evaluate various financial management related problems. Based on the case assigned, each learner can choose at least three questions to cover in the individual analytical report. The problems will be assigned individually as a component of your regular homework. However, please note that the solution from one problem may carry over as an important input on subsequent problems. You should therefore consider the case study not as a set of individual problems, but as one larger assignment that will be completed in steps. Taking Nike as an example, to solve the Nike problems, you will make use of Nike's most recent financial statements as well as the notes to the financial statements. Nike's financial statements from the most recent fiscal year ending Aug 31, 2017. An overview of the individual questions are provided below. Question 1 - Financial Ratio Analysis Question 2 - Cost of Capital Question 3 - Operating Lease Adjustments Question 4 - Capitalization of Advertising Expenses Question 5 - Taxes Question 6 - Estimating Cash Flows Question 7 - Fundamental Growth in Earnings Question 8 - Cash Flow Discounting and Stock Price Estimation Question 9 - Relative Valuation DESCRIPTION1. Financial Ratio Analysis A. Using Nike's financial statements and any additional resources that are necessary, calculate the profitability ratios we discussed in class (ROC, ROE, After-tax Operating Profit Margin, Net Profit Margin). Compare these ratios to those we calculated in class for Home Depot and note any important similarities/differences between the two firms. For the purposes of this assignment, we will assume that Nike and Home Depot are comparable firms. B. Show the decomposition of Nike's Return on Capital (ROC) into After-tax Operating Margin and Capital Turnover. Show the decomposition of Nike's Return on Equity (ROE) into Net Profit Margin, Capital Turnover, and Financial Leverage. What do these decompositions suggest about the performance of Nike relative to Home Depot's performance, as discussed in class? 2. Cost of Capital In this problem, you will calculate the cost of equity and weighted average cost of capital for Nike as of May 31, 2015. Be sure to explain any assumptions you make to arrive at your answers. A. Collect monthly return data for both Nike and the S&P 500 Index for the 60-month period ending in May 2015. Using this data, estimate the Beta for Nike based on a market model (CAPM) regression. Using this Beta estimate, calculate the cost of equity (Ke) for Nike based on the CAPM model. Note that you must choose an appropriate risk-free rate and market risk premium to use in the CAPM equation. Briefly explain your choice for each of these variables. B. Assume that the value of Nike's operating lease debt is $2,604 million and the firm's employee stock options have an after-tax value of $2,398 million. Estimate the market value of debt and the market value of equity for Nike as of May 31, 2015. Nike has an AA- debt rating from S&P and an A1 (A+) rating from Moody's. Use this information along with the default spreads provided in the course notes to estimate the firm's cost of debt (Kd). Using these estimates and your answer to (a), calculate the weighted average cost of capital (WACC) for Nike. Assume a marginal tax rate of 20.2%. 3. Operating Lease Adjustments Using Nike's most recent 10K, identify the firm's future operating lease commitments and the amount the firm paid in operating lease (rental) expenses for the most recent fiscal year. Use this information to answer the questions below. A. In Case Study Question (2), we found the cost of debt for Nike to be 2.97%. Using this cost of debt, calculate the value of Nike's operating lease debt and operating lease assets as of May 31, 2015 (the end of Nike's fiscal year). Use these values and any necessary information from Nike's financial statements to estimate the adjusted book values of debt and assets for Nike. B. Using your answers from prior questions and any necessary information from Nike's financial statements, calculate the values of after-tax operating income and Net Income in the most recent fiscal year, both before and after adjusting for operating leases. Assume a marginal tax rate of 20.2%. 4. Capitalization of Advertising Although Nike's R&D expenses are limited, the firm invests heavily in advertising and other promotional expenses. Because you believe these expenses create benefits that accrue to the firm over multiple periods, you decide to capitalize these expenses in your valuation of Nike. Total advertising expenses for Nike in each of the past six fiscal years are listed below. Use this information to answer the subsequent questions. Year Advertising Expense ($ millions) 2011 2,344 2012 2,607 2013 2,745 2014 3,031 2015 3,213 A. Assuming a three-year life for advertising, calculate the Advertising Amortization for Nike in the most recent fiscal year and the unamortized value of Nike's Advertising asset at the end of the fiscal year (May 31, 2015). Use your answers and any necessary information from Nike's financial statements to calculate the adjusted book values of equity and assets. B. Using your answer above and any necessary information from Nike's financial statements, calculate the value of after-tax operating income and Net Income for Nike in the most recent fiscal year after adjusting for the both operating lease and the capitalization of Advertising. 5. Taxes Using your answers from prior questions and any necessary information from Nike's financial statements, answer the following questions about Nike's taxes. A. Calculate Nike's effective tax and marginal tax rates for the fiscal year ending May 31, 2015. B. McKinsey & Co. recommend estimating the taxes actually paid on the operating income of the firm. They refer to this as operating cash taxes. Estimate the operating cash taxes for Nike in the most recent fiscal year using the following steps: (1) start with reported taxes, (2) subtract the taxes paid on non-operating income, (3) add back the tax shield related to interest expenses on the firm's debt (including debt listed on the balance sheet and operating lease debt), and (4) subtract (add) any increase (decrease) in net deferred tax liabilities. For steps (2) and (3), estimate the tax adjustments using a marginal tax rate of 20.2%. 6. Estimating Cash Flows Using your answers from prior questions and any necessary information from Nike's financial statements, answer the following questions about Nike's cash flows in the most recent fiscal year. A. Calculate FCFF for Nike in the most recent fiscal year. B. Calculate FCFE for Nike in the most recent fiscal year. Note that this calculation requires you to use the cash flow statement to determine the firm's net debt issues during the year. 7. Fundamental Growth in Earnings Using your answers from prior questions and any necessary information from Nike's financial statements, answer the following questions about fundamental growth in earnings for Nike. Note that most of the information you need to answer these questions can be found in the prior solutions. A. Using the fundamental growth formulas we discussed in class and assuming the ROC will remain constant, estimate the expected growth in EBIT for Nike in the coming year. Be sure to incorporate any necessary adjustments made in prior assignments (for example, adjustments for one-time charges, operating leases, capitalization of advertising, etc.). How does your estimate of future growth compare to the firms actual growth in EBIT over the previous year? B. Using the fundamental growth formulas we discussed in class and assuming the ROE will remain constant, estimate the expected growth in Net Income for Nike in the coming year. Be sure to incorporate any necessary adjustments made in prior assignments (for example, adjustments for one-time charges, capitalization of advertising, etc.). How does your estimate of future growth compare to the firms actual growth in Net Income over the previous year? 8. Cash Flow Discounting and Stock Price Estimation A. To perform a discounted cash flow analysis for Nike, begin with your Free Cash Flow to the Firm (FCFF) estimate from Case Study Question (6a). This value will represent your year zero cash flow estimate. Based on the fundamental growth estimates from Case Study Question (7), you forecast that this cash flow will grow at 6.0% in year one, with the growth rate decreasing by 0.7% per year until it stabilizes at 2.5% in year six. Based on these forecasts and your cost of capital (WACC) estimate from Case Study Question (2), estimate the present value of FCFF for Nike. Show your work on a separate page if necessary. B. As of May 31, 2015, Nike's shares outstanding include 178 million class A shares and 679 million class B shares. In addition, Nike's stock was trading at a price of $101.67, the firm's marginal tax rate was 20.2%, and the yield on 10-year treasuries was 2.17%. Use this information, along with any necessary information from the firm's financial statements (and notes to the financial statements) to estimate the value of Nike's outstanding employee stock options as of May 31, 2015. Attach a printout of the spreadsheet or other option pricing model used to calculate the option price. C. Nike has no minority interests or majority active holdings, but does have other long- term nonoperating assets (i.e., investments) and liabilities. Using your answers to (a) and (b) above, along with any other necessary information from the firm's financial statements, estimate the per share value of Nike's stock (Note: you can assume that class A and B shares are identical). 9. Relative Valuation A. Nike's stock price and shares outstanding as of May 31, 2015 were $101.67 and 857 million. Calculate the P/E ratio for Nike based on this information and the EPS from the most recent fiscal year. Recalculate an adjusted version of the P/E ratio by dividing the current market value of equity by the net income from the most recent fiscal year, incorporating all appropriate adjustments (Note that all of the information you need to complete these calculations is contained in the previous homework solutions). How did the ratio change after incorporating the adjustments and why? B. Using information from the end of Nike's most recent fiscal year (May 31, 2015), calculate the Enterprise Value to EBITDA ratio for Nike. Recalculate an adjusted version of the ratio, incorporating all appropriate adjustments (Note that all of the information you need to complete these calculations is contained in the previous homework solutions). How did the ratio change after incorporating the adjustments and why Situation (20%) 3 4 States general background of the case chosen, rather than highlights on financial situations. Well written introduction of General summary of description of situation the financial and context for the situations, with little corporation's finance financial analysis conditions. Analysis included. tools are introduced, but briefly. Analysis and solution (70%) The selected solution(s) are No relevant Poorly used described and data or data/information. explained, including information key characteristics, used, no Poor discussion fundamental principles, analysis, use of and lack of and how the solution literature or evidence of solves the problem(s) calculated critical analysis. and/or addresses the results. issues. Very limited use of data or information, superficial identification and discussion of finance related issues. Based on the case assigned, learners are to explain the context, situation, financerelated problem in detail, with good reference. 1 2 Context and Irrelevant or introduction on poorly written the case is introduction. absent Discussion and analysis meets minimum requirements. 5 Succinct description of situation and context for the financial situation. Exceptional discussion on the nature of problems (issues, challenges, opportunities), with analysis tools applied and results interpreted. Good use of relevant data and information with in-depth analysis Excellent use of relevant data and using credible sources. information with in-depth analysis using appropriate and credible sources. Data and information Financial tools had used with some been used to provide Excellent critical inquiry with analysis and some and indicate solid academically sound reasoning. credible sources solutions and listed. evalutions. Lack of credible sources from literature. Some evidence of financial analysis. Writing (10%) Specific and clear writing Grammar, spelling and punctuation are excellent Clear and flowing sentence and paragraph structure throughout Lacks clarity and coherence: Poor academic cloudy writing. nothings Evidence is provided that indicates the appropriateness and superiority of the solution compared with alternatives considered. Quantitative analysis has some gaps/is incorrect. Academic writing Academic writing is needs improvements Academic writing clearly articulated Demonstrate excellent academic - does not meet meets minimum level with coherent writing skills. required competence of competency. arguments. level