can anyone tell me how to do this assignment? i know i need to gather some data

Question

can anyone tell me how to do this assignment? i know i need to gather some data but what data ?

can you tell me the direction how to do this and what formula should i use , also what is the required structure of balance sheet and income statement.

thank you.

-Prepare qualitative analysis (of economics, industry and the company)
-Prepare Income statement & Balance Sheet projection for minimum 5 years
-Calculate the CFFA for every year of the projection. Calculate terminal value (which is cash flow from year 6 and later using perpetuity).
-Calculate WACC
– Calculate cost of Equity, find company beta in Bloomberg/Reuters.
- Assume cost of debt as 11% if the debt/(debt+equity)<25% and 12% if more. (you will learn more about how to actually calculate cost of debt in later years)
-Calculate the target price of the company stock using discounted cashflow of CFFA and terminal value and divided by shares outstanding (from financial report).

Explanation / Answer

You will need to pick a company first to determine the industry and after that you can use internet and research reports for analyzing whole economy, then that particular industry and the company.

You can use Yahoo or Google for the past financial statements. Again, pick a company first, collect the past financial statements and do the projections based on trends shown earlier.

For the remaining you have to use different formulas such perpetuity formula for determining the terminal value. However, you will need all the financial statements of that particular company first.

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