BAVA320 Business Analysis and Valuation- techniques of financial analysis


Unit Learning outcomes 

1. Demonstrate strong foundation knowledge on the tools and techniques of financial analysis and business valuation.
2. Evaluate the linkage between industry analysis, strategic business analysis, accounting analysis, financial analysis and prospective analysis.

3. Compare and contrast inter-relationships among various business disciplines that include financial accounting, financial management and strategic management

4. Apply and explain the relationships between strategic business analysis, accounting analysis and financial analysis. Identify and utilise value-relevant information contained within financial statements.

Specifically , you are required to :

1. Calculate/recalculate( using given excel sheets: Requirement 1 Calculation sheet , Requirement 2 Calculation sheet , Requirement 3 Calculation sheet , Requirement 5 Calculation sheet ) according to the following assumptions provided in the questions.

2. answer the following 5 (five) questions in a report
1. How will the forecasts in Table 8.2 change if Bega Cheese to maintain a sales growth rate of 6% per year from 2014 to 2023 (and all
the other assumptions are kept unchanged)?  

2. Recalculate the forecasts in Table 8.2 assuming that the NOPAT profit margin is held steady for the first five years of the forecast and
then declines by 0.1 percentage points per year thereafter (keeping all the other assumptions unchanged).  

3. Recalculate the forecasts in Table 8.3 assuming that the ratio of net operating working capital to sales is 10% and the ratio of net longterm assets to sales is 30% for all the years from fiscal 2014 to fiscal 2023. Keep all the other assumptions unchanged. 

4. Calculate Bega Cheese’s cash payouts to its shareholders in the years 2014–23 that are implicitly assumed in the projections in Table 8.2.  

5. How will the abnormal earnings calculations in Table 8.3 change if the cost of equity assumption is changed to 10%?

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