FIN502 Final SMIF Project

Project Instructions

Please carefully follow the project instructions. It is important and required that you review the documents below in the order they are numbered.

  1. Review of Sensitivity Analysis

Note: Dates in your template might be different. Please make sure to use the correct dates in your analysis

“Hello everyone.

In this video, I will show you how to construct the data table. Here we have the weighted average cost of capital. Here we have the

terminal growth rate (constant growth rate) In the last value for weighted average

cost of capital, please provide the

weighted average cost of capital for

your own company. Now the first thing we need to do is we need to link this table to the DCF output

which is here. This is a sample

spreadsheet. Next we will choose this whole area and then

we will go to data. And What if analysis

data table. It is asking us row input

cell. In our row, we have the terminal

growth rate which is here. In our column, we have the WACC,

which is here. Then the table

is generated. We need to make sure that WACC and terminal

growth rate combination produces the

correct answer. This is your WACC here for this sample

spreadsheet. Here is the growth rate and their combination

generates this stock price which matches the stock price. This confirms

that data table is correctly set up. Thank you so much for

watching this video.” (i couldnt upload the video here is the transcript)

Please submit the following by the due date. It will suffice if one person from a given team makes the submissions. Late submissions will earn zero points.

  • Your REPORT (based on the required template)
  • Valuation Template SPREADSHEET (must contain the raw accounting data from Capital IQ and all
    your calculations)
  • Presentation Slides
  • Video Presentation

WRITE MY PAPER

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