Assignment Task
Questions
Draw the graph to explain how total assets and liabilities are changed over the selected period. how much proportion of fixed assets stays in total assets over the time. How much debt has been accumulated over the last 15 years in the company.
Analyze the results regarding annual revenues of your selected company and use the results of regression analysis keeping sales as dependent variable and select most relevant 5 -10 ratios (give justification for such selection as well) as independent variables. Make a good forecast about the future sales [for next 5 years with 1%, 5% and 10% standard forecasting errors (SFE)]
Perform the comparative analysis of all ratios (at least 15 or more) you have already calculated for your selected company. Explain the trends and turning points in all of these ratios with logical arguments based on the types of products that company deals in.
Relate the Scenario analysis by using ‘BEST’, ‘NORMAL’ and ‘WORST’ scenarios on your company data through capital budgeting. Values that will change include ‘interest rate’, income tax rate, and ‘equipment cost’. Whereas the results values will show the ‘NPV’ ‘IRR’, ‘MIRR’ and ‘Break Even Period’ respectively.
Execute the simulation of profit after tax and interest payment (EAT) for all the selected years of your company [take one ‘mean’ and ‘standard deviation’, use minimum and maximum values of the profits from the same data]. Apply Normal Distribution to calculate the downside risk for the simulated values of profits by using these same ‘mean’ and ‘standard deviation’. Then draw the graph of these probabilities and identify the most probable profits your firm may earn. [with 1%, 5% and 10% standard forecasting errors (SFE).
