Project 1 Calculating FCF and ROIC Use five years Compustat data for your company to compute or find the following for each of the five years: 1. NOPAT 2. Operating CA 3. Operating CL 4. NOWC 5. Net PPE 6. Total Operating Capital 7. Change in TOC 8. ROIC 9. FCF 10. Uses of FCF Use cell references for your computations. Project 1 Format is an example file. Project 2 Ratio Analysis Use the five year annual ratio report to identify trends in liquidity, profitability, asset utilization (activity) and debt utilization (leverage). Prepare a table that shows the ratios for your company’s latest reporting year, compared to the same year for it’s two closest peer companies and the industry average. Identify areas where your company is performing well or needs improvement. Project 2 Format shows what this table should look like. Project 3 WACC For your company find: 1. The capital structure 2. The pre and after tax cost of debt 3. Beta 4. The risk-free rate 5. The market risk premium 6. The cost of equity capital 7. The weighted average cost of capital (WACC). Define 1 through 7 and identify your sources. Show all calculations. Use the WACC to complete the valuation in Project 4. Project 4 Forecasting and FCF Valuation Prepare a spreadsheet forecast of FCFs and a valuation for your company similar to what we did for Chapter 9 Problem 11. Show cell references in your calculations. Chapter 9 Problem 11 spreadsheet is provided as reference.
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