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Corporate Financial Management
Key task and word count (or equivalent) For this assignment, you will produce a valuation report for Next plc. The report will include a valuation model, a critique of the key methodologies employed, and justification of the key inputs used to value Next plc. (2,000 words (+/- 10%).
Assignment Details and Instructions
Assignment Scenario Quanto Associates is a company with a proven track record in providing valuation services to multinational corporations. In your role as a Valuation Consultant at Quanto Associates (QA), you have been commissioned by the board of Next plc to produce a report justifying an appropriate valuation figure for the company.
Individual Assignment Components
1. Valuation Model Produce a company valuation using a free cash flow valuation model. The model should incorporate estimates of the following;
• Return on invested capital (ROIC)
• Cost of capital (combining the Risk Free, Risk Premium and Beta)
• Horizon or competitive advantage period
• Growth
• Reinvestment required
This section of the report should be included as an Appendix to the written element of the report. An Excel based valuation model template will be provided as a basic template for students to develop.
The marks for the valuation model are awarded as follows;
– Presentation
– Model Accuracy
– Cost of Capital Calculation
– Perpetuity Calculation
– Reinvestment Calculations
– Sensitivity Analysis
– When constructing the valuation model students should carry out some sensitivity analysis to assess the impact that any changes in estimates will have on their valuation. – Evidence of sensitivity analysis should be included in the form of additional valuation models (x 4) included as appendices.
2. Report
The written element of the report should contain three distinct sections (Section A, B & C).
Section A
In your role as Valuation Consultant at QA;
1. You will comment briefly on the valuation you have produced (using the valuation model) and compare your valuation figure with any other current valuation figure available , and;
2. You will be expected to fully justify the estimates used in your model regarding the following key elements;
• The horizon period chosen
• The difference (spread) between ROIC and the Cost of Capital both during and after the horizon period
• The expected future growth both during and after the horizon period
Justification should be provided with reference to a combination of theoretical literature, company, and industry specific factors. It is vital that justification comes from a combination of these sources.
Section B
In your role as Valuation Consultant, you will be required to;
1. Write a critique of the valuation methodology employed (e.g., free cash flow / discounted cash flow valuation methodology)
2. Briefly write a critique of any two alternative valuation methodologies.
Justification should be made with reference to a wide range of relevant theoretical literature.
Section C
In your role as Valuation Consultant, you will be required to;
1. Write a critique the model used to estimate the Cost of Capital e.g. CAPM and;
2. You will be required to justify the estimates used, both in the Horizon Period and the Perpetuity Period in respect of;
• the risk-free rate
• the risk premium
• Beta
Issues surrounding the Cost of Capital model (CAPM) and the difficulties in estimating inputs to the model should be fully explored with reference to relevant theoretical literature.
Specific requirements
Students will be required to base any figures or estimates used on Next plc. Students should assume, for the purposes of the assignment, that Next plc is an all equity-financed company.
Students may wish to structure the report as follows:
Section A – 500 words +/-10% (25% of total word count)
Section B & C – 1,500 words +/-10% (75% of total word count)
General requirements
– Word limit: 2,000 words +/- 10% (excluding company valuation calculation, bibliography, references, tables, headings, sub-headings and appendices).
– The report should include Harvard referencing.
– The report is to be completed on an individual basis.

Overview
Company leaders need to keep a watchful eye on the economy and how
micro- and macro-environments affect their business. Successful leaders
are always a step ahead. They stay there by leading with data-driven
decisions that allow their companies to anticipate and respond to
challenges. In this module, you’ve learned how information is key in
making decisions and solving problems; however, research and analytical
skills are also needed to extract value from data. Information-gathering
should align with research objectives. Qualitative and quantitative
data alongside relevant and credible primary and secondary sources are
fundamental ingredients for informing good judgement.
Prompt
In a report by the U.S. Department of Commerce, the U.S. economy
contracted at an annual rate of 4.8% in the first quarter of this year.
For this assignment, you will take on the role of an HR manager at an
air transportation supply company. The company is currently struggling
with a significant loss of revenue and considering operational costs.
You have been asked to analyze employee performance over the last year
and make sense of the data.
Using a summary (provided below) of the company’s employee salaries, bonuses, and performance data, address the following rubric criteria:
Interpretation: Discuss your interpretation of the data.
What questions emerge from your analysis of the data?
What story can they tell about the company’s employees?
Analysis: Explain how the provided data helps you
understand your employees and how the company is using its financial
resources. Identify potential gaps or issues in the data.
What is the quantitative and qualitative data telling you? Are there any underlying issues or perspectives?
What is the data not telling you?
What additional primary and secondary sources would help the company make a decision?
Conclusion and related outcomes: Describe how you have used data to determine a strategy. Use evidence to support your explanations.
What would your strategy be if you were asked to recommend a 10% reduction in the budget?
How would you synthesize and defend your decision process?
This resource will assist you as you complete your paper.
Air Transportation Supplier HR Performance Data Spreadsheet. This summary table of your company’s HR performance data will inform your work on this assignment.
What to Submit
Complete the Making Decisions and Overcoming Bias Using Research
worksheet in your Soomo webtext, download your completed work, and
submit it in Brightspace for instructor feedback. You should write using
a professional voice, and any sources should be cited according to APA
style. Your assignment must be between 400 and 800 words in length.

Discussions Forum 3: The work of managers and the role analytics plays
2-weeks discussion
Due Date:  There are two deadlines.
First Deadline, week13: Saturday April. 27th.
Post your essay to discussion forum2.
Review other classmates’ views.
Second Deadline, Week14:  Saturday May. 4th.
Review other classmates’ views.
Comment on the most recent (latest) post of other classmate to engage in a meaningful debate regarding his/her view.
Respond to other classmates who commented on your post.
Objective
To identify the role analytics plays in the managers’ work.
Discussion Statement and Tasks
Search the Internet for material regarding the work of managers and the role analytics plays. What kinds of references to consulting firms, academic departments and programs do you find? What major areas are represented? Select three sites that cover one area and report your findings. Summarize your findings in an essay (no less than 200 words) with the exact sources and post it to discussion3.
Discussion Reading Requirements
Future Trends, Privacy and Managerial Considerations in Analytics
Internet
What should you post on the discussion forum?
An essay that identifies the role analytics plays in the managers’ work.
The essay should be no less than 200 words in addition to the references of your findings.
Comment on at least one of your classmates’ views.   
Discussion Requirements
Individual posting should provide substantial responses, and comments that advance the learning process for students in the course. A student also should comment on at least one of your classmates’ view but not in the nature of “I agree” or “I disagree”. The responses should be elaborated to make them substantive; otherwise they do not count towards participation in the forum discussion. Each posting should be referenced if it includes information from other resources than the textbook. The individual posting should be titled by the “Student Name followed by the “_Subject of the discussion”.
Self-Assessment Checklist
I identified one application for each of the DSS, BI, and analytics.
I summarized my thoughts in an essay (no less than 200 words) and posted it to discussion forum2.
I responded to at least to one of the classmates’ views to engage in a meaningful debate regarding their choices or to defend my choices.