Assignment 3: Financial statement modelling task (20%)

Assignment 3: Financial statement modelling task (20%)

Learning outcomes assessed.

1 Synthesise and apply knowledge to new contexts in meaningful ways demonstrating a systematic understanding of key aspects of business and finance

3 Select, justify and apply tools of research, data analysis, decision-making and evaluation to substantive business and finance scenarios

4. Express complex arguments logically, using supporting analysis and evaluation

The brief

Choose a UK-based non-financial company for which the last two years financial statements are available.

Making justified assumptions about both sales growth and the relationships between entities in the financial statements, produce projected income statements and statements of financial position for the next 5 years.

Making justified assumptions about the weighted average cost of capital and the long-term growth rate, calculate a value for the company based on discounted free cash flowEvaluate your method and discuss alternative possible valuation approaches.

Presenting coursework for assessment

Your assignment must be presented in the following format:

It must be based on one Excel file with multiple worksheets but saved and uploaded as a pdf file.

Each worksheet should be formatted for printing on no more than 2 pages.

Any discussion should be in textboxes, not spreadsheet cells or comments.

It should not contain your name(s)

Submission date and instructions

Your work must be uploaded by 13:00 on 26 April 2024

Assessment criteria

For calculations:

Techniques correctly applied to the data (45%)

Work well-presented (15%)

For discussion:

Demonstration of understanding of concepts (30%)

Clarity of writing (10%)

ACFI6015 Business & Finance Synoptic Assignment 3 Detailed requirements

The Assignment Briefs document gives general instructions:

Choose a UK-based non-financial company for which the last two years financial statements are available.

Making justified assumptions about both sales growth and the relationships between entities in the financial statements, producing projected income statements and statements of financial position for the next 5 years.

Making justified assumptions about the weighted average cost of capital and the long-term growth rate, calculate a value for the company based on discounted free cash flowEvaluate your method and discuss alternative possible valuation approaches.

Choosing the company and accessing the financial data

Download the alphabetical list of Issuers from the website of the London Stock Exchange at https://www.londonstockexchange.com/reports?tab=issuersChoose a non-financial company whose name begins with the first letter of your family name. If there is no company beginning with this letter, you may choose one letter up or down in the alphabet.

Check that financial information for the past two years for this company is available in FAME. You are recommended to choose a company that:

Does not have many exceptional itemsHas had revenue growth over the past two years.

Download the Financial Worksheet from FAME.

National Grid PLC

Building the model

You are recommended to use one of the Models that you worked on in class as a template. But if you want, you can build the spreadsheet from scratch.

Copy the Income Statement and Statement of Financial Position from the FAME worksheet into your spreadsheetUsing VLOOKUP() or otherwise, transfer data from the copied FAME sheets into your model.

Presenting your work

It must be based on one Excel (or other spreadsheet) file with multiple worksheets but saved and uploaded as a pdf file.

Each worksheet should be formatted for printing on no more than 2 pagesAny discussion should be in textboxes, not spreadsheet cells or comments