Please answer the below for the company “Biogen”. Direct competitor is Bristol Myers Squibb. Be sure...

Question

Please answer the below for the company “Biogen”. Direct competitor is Bristol Myers Squibb. Be sure to include this competitor only on any analysis (if needed). Include a paragraph explaining each financial statement. Include references and use citations as needed.

Prospective analysis (Forecasting) should provide projected statements/numbers

that will provide all essential projected variables (dividends, free cash flow and residual earnings) so that you can estimate the valuation models (similar to table 6- 4 in page#6-14)

fwdbiogenphaseii-ohevf1ne-ot2ny1l1.zip

Sumit · Accepted Answer

Statement of Forecast
(A). Statement of Profit and Loss:
1. Revenues: Since the company is the leading market player and the company has over the period build a Goodwill as well as the company is able to continue the growth it has seen over the past many years. Hence the company will keep the prices of the goods stable or same to stay competitive with the other players. The company should also expect to lose some market share to its competitors. Because of these factors the growth of the sales of the company will be low. Hence it is estimated that the revenue of the company for the next financial year would be $15200 (in million), in comparison to the revenue of 2019 $14378 (in million). This shows the increase in revenue by 5.72%.
2. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA): Since due to the increase in the sales of the company, it is anticipated that the revenue of the company will increase, Hence the EBITDA of the company will also rise. The EBITDA of the company for the financial year 2019 was $8070 (in million), but for the year 2020, the EBITDA is estimated to be $8560 (in million). This shows that the EBITDA of the company will increase by 6.07%. 
3. Operating Profit: Since it is expected that the company will have to invest additional funds to reduce the cost of operations and to maintain the sales of the company and to face the increasing competition in the market,

Please answer the below for the company “Biogen”. Direct competitor is Bristol Myers Squibb. Be sure to include this competitor only on any analysis (if needed). Include a paragraph explaining each...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment