Exam

MBA 7294 – Advanced Financial Analysis

Final Exam

All answers must be prepared on an Excel spreadsheet with supporting calculations documented. Please remember to include your name on your exam or in the file name.

Use the exhibits on the attached file to prepare answers to the following questions:

1). Calculate the geometric average rate of growth in revenue for the company.

2). Prepare common-sized income statements for all prior years.

3). Prepare pro forma income statements for the next 5 years.

4). Estimate the company’s free cash flow for the next 5 years using the assumptions provided in the exhibits.

5). Prepare common-sized balance sheets for all prior years.

6). Prepare pro forma balance sheets and statements of cash flows for the next 5 years.

7). Construct a pie chart of the firm’s capital structure (market values) and calculate the Weighted Average Cost of Capital (WACC) assuming the data provided in the exhibits.

8). Calculate the value of the firm using the assumptions provided in the exhibits.

Using your answers to the above questions, prepare a brief executive summary (no more than one page) analyzing the company and discussing future financial performance. This section should be prepared in a Word document.