What's Your Story? 5th Edition Use answer boxes on the question tabs. Keep each answer inside of its answer box. Q1 Using historical financial ratios, judge Apex's performance. What information would you need to appraise its business risk and financial risk? Do so to the extent possible. Q2 Explain the meaning of Apex's financial statement forecast, i.e., what is the external financing required? Can Apex repay the loan, and is the loan within Apex's debt capacity? Q3 Calculate Apex's k-wacc. Explain. Q4 Calculate NPV, PI, IRR and PP for the proposed robotics project. Then, explain whether or not Apex should green-light or red-light the proposed investment project. Q5 Calculate and explain fully the equity value of the business and whether it could be an LBO target. Q6 ls equity financing a reasonable alternative to borrowing? Explain. The answer to this question has been provided to you Q7 UNRELATED TO APEX Explain to a group of people without a background in finance, using language they can understand and without jargon, why the equity risk premium (ERP) is, simultaneously, both so simple and so complex. THERE IS NO SINGLE CORRECT ANSWER. THE PURPOSE OF THE ASSIGNMENT IS TO DEMONSTRATE WHAT YOU HAVE LEARNED TO DO IN THIS COURSE. USE TEMPLATE RESULTS, CASE FACTS, AND YOUR JUDGMENT. THINK LIKE A PROFESSIONAL... NOT LIKE A STUDENT. DISPLAY YOUR ABILITY TO THINK CRITICALLY/ANALYTICALLY. WRITE PROFESSIONALLY What's Your Story? 5th Edition Use answer boxes on the question tabs. Keep each answer inside of its answer box. Q1 Using historical financial ratios, judge Apex's performance. What information would you need to appraise its business risk and financial risk? Do so to the extent possible. Q2 Explain the meaning of Apex's financial statement forecast, i.e., what is the external financing required? Can Apex repay the loan, and is the loan within Apex's debt capacity? Q3 Calculate Apex's k-wacc. Explain. Q4 Calculate NPV, PI, IRR and PP for the proposed robotics project. Then, explain whether or not Apex should green-light or red-light the proposed investment project. Q5 Calculate and explain fully the equity value of the business and whether it could be an LBO target. Q6 ls equity financing a reasonable alternative to borrowing? Explain. The answer to this question has been provided to you Q7 UNRELATED TO APEX Explain to a group of people without a background in finance, using language they can understand and without jargon, why the equity risk premium (ERP) is, simultaneously, both so simple and so complex. THERE IS NO SINGLE CORRECT ANSWER. THE PURPOSE OF THE ASSIGNMENT IS TO DEMONSTRATE WHAT YOU HAVE LEARNED TO DO IN THIS COURSE. USE TEMPLATE RESULTS, CASE FACTS, AND YOUR JUDGMENT. THINK LIKE A PROFESSIONAL... NOT LIKE A STUDENT. DISPLAY YOUR ABILITY TO THINK CRITICALLY/ANALYTICALLY. WRITE PROFESSIONALLY
