Solution
Himanshu answered on
Dec 17 2021
In this assignment, our role is to serve as a consultant to a conceptual corporation. Our role and responsibility for this assignment is to provide appropriate guidance on their concerns and the client's business-related issues. Client deals in the Business of Craft Beer. I've assessed all the essentials related to setting up a company. As a consultant, I need to do more research and analysis, undertaking short as well as long term projects to address a variety of issues and needs, analysis statistics, detecting issues and investigating ways to resolve them, the consultant gives expert guidance on market issues: how to maximize revenue, how to standardize management, strengthen network security, define an organizational plan. Roles include commitment to the clients; obligations include the fulfilling of the commitments. Integrity is vital to the industry. Strategic advice: These will encompass everything from how to efficiently integrate an investment and how to expand a start-up enterprise. All the things namely, effective sources of finance, Calculation of cost of capital: It applies to the cost of equity if the company is funded solely by equity, or to the cost of debt if it is financed solely by debt, weighted average cost of capital: The weighted average capital cost (WACC) is a measure of the capital cost of a business in which each type of assets is percentage wise allocated. Both forms of assets, such as common equity, prefe
ed shares, bonds and all other long-term debt, are included in the WACC measure, Project Evaluation: The evaluation of a project is a comprehensive and rational review of an existing. The aim is to assess the importance and extent of accomplishment of project goals, implementation success, performance, effects and resilience and Break-Even analysis: Break-even measurement reveals how many units of a good would be produced to offset the fixed and variable cost of production. The
eak-even point is known to be a calculation of the safety margin. Break-even methodology is commonly employed from stock and options markets to corporate financial planning for various initiatives. As per the feedback, I have updated all the required factors that needs to be altered. Feedback was very crucial for efficient and effective operations occu
ed in the company, I have covered all the necessity sources of finance available for my firm in the initial phase apart from Venture capital, bank overdraft, bank bills, leasing and factoring and inventory financing. Other sources we can include, Retained earnings, corporate bonds, prefe
ed shares etc. Some important areas need to be modified for better understanding of the project, I had the wrong values of credit spread, before tax cost of corporate bonds, cost of ordinary shares, yield per coupon payment, market value of corporate bonds, WACC value was also wrongly measured. Value for Tax rate was inco
ect and incremental cash flows was also wrong. At the end of the day, I was remarked on good overall performance, but...