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DCF Valuation and EVA/MVA Analysis - Using Apple Inc., there are two parts to this assignment:

1. DCF Company Valuation -

Prepare a DCF Valuation of the selected company using the eVal model and the projections developed in Week 2.

Compare the intrinsic value of the company's stock (valuation) compared to the current stock price. 

Interpret and explain the results.

2. EVA & MVA Analysis -

Prepare an analysis of EVA and MVA for the selected company.  Excel models are provided by the instructor.  Explain the results.

The analysis associated with the assignment needs to include:

1. Explanation of the Variables Used in the DCF Valuation - Explain and justify all of the variables used in the DCF valuation.  These would include, but are not limited to, the growth rates, capitalization structure, cost of capital components, WACC, etc.

2. Explanation and Interpretation of DCF Valuation Results - Explain the results of the DCF analysis.  This should include an analysis of any difference between the results of the DCF analysis and the current stock price.

3. Explanation of the Data Used for the EVA Analysis and Interpretation of Results- Present the results of the EVA analysis and explain what they mean.  The analysis should discuss future EVA results and what variables can affect those results either positively or negatively.

4. Explanation of the Data Used for the MVA Analysis and Interpretation of Results- Present the results of the MVA analysis and explain what they mean.  The analysis should explain a discussion of future MVA results and what variables can affect those results either positively or negatively.

The subheadings used in the paper should be:

1. Introduction

2. Explanation of the Variables Used in the DCF Valuation

3. Explanation and Interpretation of DCF Valuation Results

(Including comparison and explanation of differences between the current stock price and results of the DCF valuation.)

4. Explanation of the Data Used for the EVA Analysis and Interpretation of Results

5. Explanation of the Data Used for the MVA Analysis and Interpretation of Results.

Completeness of analysis: The analysis must demonstrate a solid understanding of capital budgeting and the analysis of corporate investments.  All assumptions used in preparing the projections for the project need to be thoroughly explained. 

Organization: The paper should be well-organized and follow a logical pattern of analysis and discussion.

Presentation: Papers should meet professional business standards and meet APA formatting requirements.

Attachment:- Assignment Files.rar

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92204332

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