Using the Case: "Friendly Cards Inc." (Harvard Business School case, no. 9-293-135):
1. Perform a ratio analysis of Friendly Cards for 1985-1987 and discuss the company's health. Decided if Friendly Cards should accept the West Coast investors offer and issue new equity.
2. Perform a Pro Forma Analysis for Friendly Cards' financials from 1988-1990 to show what is likely to happen the company's bond covenants if the status quo continues.
3. Perform a NPV analysis to see if Friendly Cards should purchase the envelope machine (a reasonable WACCT should be sought)
4. Perform a pro forma for Creative Designs to show what would happen if Friendly Cards purchased the company. Then do a valuation of the decision to buy Creative Designs (balance the asking price against the PV of Creative Designs free cash flows).© BrainMass Inc. brainmass.com October 17, 2018, 4:39 am ad1c9bdddf
A ratio analysis, pro forma analysis, and NPV analysis for Friendly Cards Inc are completed. Creative Designs is also compared to Friendly Cards through a pro forma analysis to see if it would be a good decision.
Financial statements, planning & rental analysis
There are a total of 4 problems
The attached chapter problems 13-4, 13-10 & 14-6 . Use Excel or Word for each problem.
Use the attached Excel spreadsheet to calculate the Rental Property Analysis. Please complete the cash flow projections and calculate the NPV, IRR and MIRR of the two scenarios. Ignore tax considerations in this analysis. Do not change any formatting. Also, as an aid I have attached 2 PPT presentations and related lecture material in word format.
Double wide dealers has an ROA of 10%, a 2% profit margin and a return on equity equal to 15%
What is the company's total asset turnover? What is firm's equity multipler?