Orecast future financial performance and use appropriate valuation models to produce an estimate of firm value.

Individual Assignment (20 Marks)
Using the company and analysis from your group assignment, provide the following:
1. Prospective Analysis (10 marks) (at least 800 Words)
Forecast future financial performance and use appropriate valuation models to produce an estimate of firm value. As you are valuing a publicly traded company for the common shareholders, you should focus on the value of a share of common stock in that company and compare your valuation to the market valuation, providing possible explanation for any differences (sensitivity analysis). You should comment on the extent to which management is adding value, and comparison with stock price is encouraged.

Forecast aspects:
1: Estimated sales growth rate and forecast Sales
2: Forecast Asset Turnover (ATO) and calculate NOA
3. Revise Sales Forecast
4. Forecast Profit Margin and calculate NOPAT
5. Forecast any other operating income (unusual items)
6. Calculate free cash flow (NOPAT a change in NOA)
7. Forecast net dividend payout
8. Calculate net payments to debt holders
9. Forecast net after tax cost of debt, and apply to opening net debt to calculate net financial expenses. Calculate closing net debt. Check leverage
10. Calculate comprehensive income
11. Calculate equity

2. Application (10 marks) (at least 800 Words)
As a potential management consultant to Blackmores, provide a discussion as to the possible opportunities for improvement, and potential challenges for your firm. Provide remedies for these concerns. You should be quite specific in any recommendations you make.