A202 BWFF2053 Group Assignment C uum PDF

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BWFF 2053 Financial Statement Analysis and Valuation (Group C)Semester A202 Group AssignmentInstructions:  Total Marks: 25 marks (20 marks for text and 5 marks for recorded presentation)  Number of pages required: Between 10 to 15 pages (Times New Roman, single space, 12 fonts).  Date released: 2...

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BWFF 2053 Financial Statement Analysis and Valuation (Group C) Semester A202 Group Assignment Instructions:  Total Marks: 25 marks (20 marks for text and 5 marks for recorded presentation)  Number of pages required: Between 10 to 15 pages (Times New Roman, single space, 12 fonts).  Date released: 20 April 2021 and Online submission due date: 20 May 2021.  Online text submission should be in Microsoft word and NOT PDF  Submission: You are in FSAV group A and if you are in group assignment member 1, then Name your WORD FILE to submit as FSGCM1. If you are in group assignment member 2, then Name your WORD FILE to submit as FSGCM2, and so on.  Failure to comply with instructions will cost you 3 Marks. You are provided the list of 12 companies (Industry: Consumer product) in excel based on Bursa Malaysia Main Market & ACE Market. NOTE: Use Company Number 4 To 10, While 13 To 17 are Reserved. For example, Subgroup member 1 should choose company with serial number 4, Subgroup member 2 should choose company with serial number 5, and so on accordingly. Download the annual reports and obtain the recent 3 years financial statements (balance sheet (B/S) and Income statement (I/S)) of your chosen company. Required task 1. Cash flow analysis. i) Present the financial statements obtained in TWO tables, one for 3 years B/S and the other for 3 years I/S. (2 marks) ii) Prepare a statement of cash flows (indirect method) for your company using the last two years B/S and last year I/S information. (4 marks) iii) Based on the outcome of the statement of cash flows prepared, compute the free cash flow of your company for the last year. (2 marks) iv) Discuss how free cash flow computed affects the future earnings and financial condition of your company (Comment NOT more than 10 lines). (2 marks) Required task 2 – Using Prospective Analysis in Value securities. i) Base on the financial information obtained from your company, compute (ratios) and complete the following in the below table:

Sales growth Net profit margin (Net income/Sales) in percentage Net working capital turnover (Sales/Average net working capital) Fixed asset turnover (Sales/Average fixed assets) Total operating assets/Total equity Number of shares outstanding (Net Income/Earning per share)

Year 2 8%

(RM)

Year 3 10%

(RM)

Sales Net income Net working capital Fixed assets Total operating assets Long-term liabilities Total stockholders’ equity (12* 0.25 = 3 marks)

ii) Use the residual income model to prepare a valuation of the common stock of your company as of year 3 by assuming: a) Forecast horizon of 5 years, b) Sales growth of 10% each year over the 5-year forecast horizon and 3.5% after 5-year forecast (the terminal year) c) Cost of equity capital is 12.5% (7 marks)...