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Acct 5910 - Business Analysis & Valuation Exam Paper

Autor:   •  August 1, 2016  •  Exam  •  2,536 Words (11 Pages)  •  1,137 Views

Page 1 of 11

CONTENTS

Exclusive summary        

Introduction to the Company and the Industry        

Industry analysis        

Company analysis        

Accounting and financial analysis        

Accounting analysis        

Financial analysis        

Time series analysis        

Cross-sectional analysis        

Forecast and valuation analysis        

Revenue growth rate        

NOPAT /sales        

Net operating working capital        

Net operating long-term asset        

Cost of capital---- WACC calculation        

Discounted Free Cash Flow Method (DFCF)        

Discounted Abnormal Earning Method (DAE)        

Discounted Abnormal Returns Method (DAR)        

Sensitivity analysis        

Conclusion and Recommendation        

Reference        

Appendix        

Appendix A: ratio        

Appendix B: assumptions        

Exclusive summary

Introduction to the Company and the Industry

Industry analysis

Health service industry is a growth industry, which supplies health services to the public either directly or via proxies (IBIS World).

The supply chain of PRY, which is different from other industry, has different customers and buyers.  showing as below:

[pic 2]

Industry prospect

Here are high expectations in the community about health services and outcomes, and spending on health care has consistently grown faster than GDP. As a result, governments have introduced measures to make public-funded health care more effective and efficient. Revenue in the subdivision is estimated to total $116.5 billion in 2012-13, up 4.1% for the year. Over the five years through 2012-13, subdivision revenue is expected to grow by 4.2% per annual. Due to industry is barely influenced by the global economic situation, but it is underpinned by rising household income, the implications of having an aging population and support of Federal funding for Medicare (financial review 2013).[pic 3]

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