Prepare a three year forecast of estimated future cash flows for you company and give valid economic or business reasons for your projections. This signifies you will have a statement of incremental cash flows. One year in the future, develop a future market value of equity and an estimated future price per share for the company’s common stock.
prepare a one page analysis that incorporates marketing, accounting, sales, production, management, technology and so on information into your estimates of future cash flows. Please cite 2 to 3 media sources for this analysis.
a) Perform a what-if analysis for your cash flows by using at least one of the given: sensitivity analysis, scenario analysis or simulation analysis. Also, give a written summation of your what-if analysis.
b) Collect and assess information on inflation estimates and incorporate those estimates, as you see fit, into your cash flow estimates.
c) Comment on how future cash flows may be affected by information contained in the footnotes to the financial statements. Footnotes are often more interesting than the rest of financial statements and give valuable information.
d) Do a short analysis of your competitors, the prospects of their future cash flows and how that affects your company's cash flows.
e) Conduct”post-audit” of one (or more) of your company’s main past projects and incorporate this qualitatively into your estimates of future cash flows.
Company selected for assignment: The Hershey Company