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Midterm 1_Fall 2016_part one

Midterm 1_Fall 2016_part one - FIN 305W Midterm 1 Part One...

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FIN 305W Midterm 1 – Part One Fall 2016 1. ( Total of 60 points ) You are the manager of a small, growing manufacturing company. Your team would like to know a) the equity financing needs, and b) the valuation of your company (such that you can properly price your shares). You plan to finance the company with Notes during the first two years, and then with equity for 2019. After proper analysis with industry experts, your suppliers, customers and competitors, you are comfortable with the following projection assumptions: a) ( 10 points ) Build the Income Statement projections ( round to the nearest whole dollar ) :
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FIN 305W Midterm 1 – Part One Fall 2016 b) ( 30 points ) Build the Balance Sheet projections ( round to the nearest whole dollar ) :
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FIN 305W Midterm 1 – Part One Fall 2016 c) ( 9 points ) Given the assumptions, what are a) the Cash Flow to Equity (CFE), b) Capital Expenditures (Capex), and c) the Investment in Net Operating Working Capital (NOWC) for 2017,
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