Assignment Requirements
Pretty much what I need is for the company sky city limited you need to calculate:
The forecasted results for the next 5 years (2014-2019) for the following – Profit margin, Sales Growth, Asset turn over, Divedend pay out ratio and debt ratio.
ALSO you need to calculated the discounted abnormal earnings calculation, weighted average cost of capital (WACCM) and Capital asset pricing model (CAPM).
The actual assignment question is below however i am more concerned with getting the calculations for what I mentioned above. Please see the attachment for the past 5 years of financial data for the company that I have attached
Individual Assignment (20 Marks) Due: Beginning of Lecture 12
Using the company and analysis from your group assignment, provide the following:
1. Prospective Analysis (10 marks)
Forecast future financial performance and use appropriate valuation models to produce an estimate of firm value. As you are valuing a publicly traded company for the common shareholders, you should focus on the value of a share of common stock in that company and compare your valuation to the market valuation, providing possible explanation for any differences (sensitivity analysis). You should comment on the extent to which management is adding value, and comparison with stock price is encouraged.
2. Application (10 marks)
As a potential management consultant to your chosen firm, provide a discussion as to the possible opportunities for improvement, and potential challenges for your firm. Provide remedies for these concerns. You should be quite specific in any recommendations you make.