Assessment Brief Business Faculty Business Valuations & Financial Statement Analysis BVF204 Level 200 Trimester 1 2020 Assessment Brief ASSESSMENT BRIEF BVF204 T2 2020 Business Valuations & Financial...

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Assessment Brief Business Faculty Business Valuations & Financial Statement Analysis BVF204 Level 200 Trimester 1 2020 Assessment Brief ASSESSMENT BRIEF BVF204 T2 2020 Business Valuations & Financial Statement Analysis Assessment 1 Individual Analysis Project Due: Week 6 Weighting: 20% Type: Practical Exercise Learning Outcomes: a. Explain the importance and functions of business valuation and financial statement analysis b. Identify and discuss key components of various types of valuations and financial statement c. Identify and use appropriate tools and techniques to analyse company performance d. Explain the limitations of financial statements and company information Description: The assignment will require you to progressively analyses a company using the strategic, accounting, financial and prospective analysis tools identified in the course . The BAV project is aimed at developing your understanding of, and practical skills in financial statement analysis and valuation. It is also designed to enhance analytical and communication skills. Upon successful completion of the project you will have acquired a working knowledge and practical skills in undertaking an equity valuation using ‘leading-edge’ financial statement analysis techniques. From past experience, the final report often provides excellent evidence of your analytical skills that can presented to prospective employers when applying for jobs. The submission will be online and in the form of a written report. Assessment Brief ASSESSMENT BRIEF BVF204 T2 2020 Details: To complete this project, you are required to: 1. Get approval of the company, from your lecturer, on which you want to progressively analyse 2. Conduct analysis using the strategic, accounting, financial and prospective analysis tools identified in the unit. 3. Prepare a Business Valuation Analysis Report for the client/company Format of the Report You at least should have the following details: a. Assignment Cover page clearly stating your name and student ID Number b. A table of contents, executive summary c. A brief introduction or overview of what the report is about. d. Body of the report with following sections and with appropriate section headings 1. Strategy Analysis 2. Accounting Analysis 3. Financial Analysis 4. Conclusion 5. List of references 6. Exhibits e. Conclusion f. List of references. g. Diagrams and tables clearly labelled and explained. h. Ensure all materials are correctly referenced. Assessment Brief ASSESSMENT BRIEF BVF204 T2 2020 Plagiarism will be severely penalised. MARKING SCHEME FOR REPORT: Contents of the report Excellent 8-10 Good 6-7 Average 5 Not adequate 3-4 Poor 0-2 1. Format of the Report a) Assignment Cover page clearly stating your name and student number b) A table of contents, executive summary c) A brief introduction or overview of what the report is about. d) Section headings e) Conclusion f) List of references Comments: /5% 2. Strategy Analysis a) Industry analysis: five forces or alternative approach: industry profitability b) Competitive strategy: price leader, differentiation, total customer satisfaction, system lock in, or other c) Corporate strategy analysis: how well the business segments support each other Comments: /30% Assessment Brief ASSESSMENT BRIEF BVF204 T2 2020 3. Accounting Analysis a) Key success and risk factors: which accounting lines capture them? b) Accounting flexibilities of 2a: accounting policies and estimates used by the firm c) Do you agree with the policies and estimates in 2b, justify d) Is accounting strategy hiding or revealing e) Red Flags f) Undo what managers did Comments: /20% 4) Financial Ratio Analysis i) Growth and profitability: the big picture ii) Operation iii) Investment iv) Finance v) Dividend policy vi) Other ratios Comments: /30% Assessment Brief ASSESSMENT BRIEF BVF204 T2 2020 6) Conclusion: proposed action and its justification Comments: /10% 7) List of references 8) Exhibits: BAV printouts and others Comments: / 5 % Overall Comments TOTAL /100% TOTAL /20 Assessment Brief ASSESSMENT BRIEF BVF204 T2 2020 Assessment 2 Practical Exercise: Group Analysis Project Practical exercises assess students’ ability to apply theoretical learning to practical, real world situations. The group (2-3 students) assignment is aimed at developing your understanding of, and practical skills in financial statement analysis and valuation. It is also designed to enhance teamwork, and analytical/ communication skills. Upon successful completion of the project, you will have acquired a working knowledge and practical skills in undertaking an equity valuation using ‘leading-edge’ financial statement analysis techniques Each student must perform a discrete and documented function as part of the group. Due: Exam Week Weighting: 30% Type: Group Analysis Project Learning Outcomes: a. Explain the importance and functions of business valuation and financial statement analysis b. Identify and discuss key components of various types of valuations and financial statement c. Identify and use appropriate tools and techniques to analyse company performance d. Explain the limitations of financial statements and company information Assessment Brief ASSESSMENT BRIEF BVF204 T2 2020 Description: Making Performance Forecasts for Valuing Bega Cheese You have to make forecasts of financial performance stated in terms of abnormal earnings and book values, or free cash flows, over the life of the firm- Bega Cheese. The forecasting task itself is divided into two subcomponents: (1) detailed forecasts over a finite number of years, known as the ‘forecast horizon’, and (2) a forecast of ‘terminal value’, which represents a summary of performance beyond the forecast horizon. Second, you have to estimate the cost of capital to discount our forecasts. Specifically, you need to forecast Bega Cheese’s condensed income statement, beginning balance sheet and free cash flows for a period of 10 years starting in fiscal year 2014 (year beginning July 2013). You
Answered Same DayJul 29, 2021

Answer To: Assessment Brief Business Faculty Business Valuations & Financial Statement Analysis BVF204 Level...

Sweety answered on Aug 01 2021
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NAME:
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TABLE OF CONTENT
Page
1. Overview……………………………………
…………………. 3
2. Forecast of Financial Performance.
2.1. Assumption 1……………………………………………... 4
2.2. Assumption 2……………………………………………... 5
2.3. Assumption 3……………………………………………… 6
2.4. Assumption 4……………………………………………… 7
2.5. Assumption 5………………………………………….…....8
3. Conclusion…………………………………………………….. 9


1. OVERVIEW.
Financial forecasting is the process of estimating or predicting how a business will perform in the future. The most common type of financial forecast is an income statement, however, in complete financial model; all three financial statements are forecasted.
In this case forecast of financial performance of Bega cheese is made. To be specific, Bega Cheese’s condensed income statement; beginning balance sheet and free cash flows for a period of 10 years (i.e. year beginning from July 2013) is forecasted. There are 3 tables provided as a part of question (i.e. 8.1, 8.2 & 8.3). Table 8.1 specifies “the valuation assumption used for Bega Cheese”, table 8.2 represent “forecasted financial statement for Bega cheese” and 8.3 represents “Performance forecast for Bega cheese”. The forecasting assumptions and financial forecasts repeated in the table, mentioned above, are used as a starting point to value Bega cheese as of July 2023. There are 5 assumptions provided in the question on the basis of recalculation is performed. This report highlight’s the change in forecast on the basis of the assumptions made.
Two excel sheets are attached to this report. Detailed calculation, wherever required, along with the...
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