the company is Sandisk this assignment is 5 excel sheets, and 3-5 pages written narrative. all data is available at yahoo finance or company site. instructions: 1. Find a mid-cap company (something like $500M to $2B in market cap) which has been consistently paying dividends. 2. Get 3-5 years of historical financial statements 3. Forecast the next 5 years, Pro Forma financials (but ignore the Statement of Cash Flows) 4. Now, come up with a major project for your company (expansion, new product, vertical integration, etc.) that will cost roughly 15-25% of the company’s Total Assets. 5. Create a high level (as in major expense categories) Cost Benefit Analysis for the company’s project over a 5 year projection. Focus on the MODEL not the numbers, but make the numbers work. That is, positive NPV, realistic IRR, etc. 6. Now do another SEPARATE forecast for 5 years using your forecast above, but incorporate this new project (make this simple, cash basis from the CBA added to Revenues and Expenses). 7. Determine how you’re going to raise funds for this: Issue stock or debt, but no combination. One or the other. And justify your decision. Show a WACC before and after with this new capital. 8. Present your project to the class. 5 minute presentation on company history, your forecast and how you did it, your company’s new project, how it affects the forecast, how you will get the money and why. 9. Turn in a 3-5 page written narrative, including appendices for financial statements, etc. Make them look professional. 10. Upload your financial model: the pro formas, the CBA, the WACC, etc. All this should be linked, and I should be able to change variables that automatically update your model. For example, if you used X% growth in revenue, I should be able to change that and all your calculations in the model update.
