Prepare a financial plan for the company you select for your business plan. This financial plan will be included in your final business plan in your capstone course.
Describe the business, including the type of business.
Create the business case.

• Determine why funding is needed for the company.
• Determine the sources of funding. Considerself-funding, borrowing, equity, venture capital, etc.
• Evaluate the requirements of each funding source you determined appropriate.
• Analyze the associated risks of each funding source.
• Decide which sources are the best fit for your company based on the requirements of each. Justify your decision.
• Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs for your selected sources of funding. Consider creating a table or chart to display this information.

Create a profit-and-loss statement for a 3-year period. Project revenue, stating realistic assumptions, such as growth per year, in your projections.
Estimate direct costs, including capital, marketing, labor, and supply costs.
Cite references to support your assignment.
Format your citations according to APA guidelines.

1. What are the theories, models and implementation in financial management and how the theories will help in practice?
2. Malaysian Airlines Bhd (MAS) is considering a proposal to buy two new passenger aircrafts in order to increase their service capacity. The aircrafts that are being considered are from model Airbus MH370. The price for each aircraft is RM279, 000,000. Generally, it takes two years for Airbus to construct each MH370 aircraft ordered.
The buying process requires MAS to pay down payment, which is 35% of the total aircraft price upon placing the order. The remaining 65% will be paid once the construction process has completed, before the delivery could take place. This is scheduled to be two years from the date where the order is placed. Below is the general information for one Airbus MH370 aircraft:
MAS Airlines Bhd.
Accounting & Financial Department
Aircraft Model – Airbus MH370
COSTS TOTAL AMOUNT REMARKS
Maintenance cost RM5,760,000 per year
All costs are projected to increase by 2% per annum throughout the project’s life.
Salary:
 Pilot RM240,000 per year
 Air crews RM240,000 per year
Fuel cost RM16,000,000 per year
Insurance RM9,600,000 per year
Aircrafts will be depreciated using simplified straight line depreciation method down to zero.
Each aircraft has 10 years economic life.
Each aircraft is expected to be able to increase MAS’s revenues by RM72, 900,000 during the first year of its operation. The revenue then is projected to increase by 4% per annum throughout the project’s life. Since the aircrafts is the latest model in its class, the company will need to train their pilots and air crews on the aircrafts’ operational aspect. The training which will cost the company RM250, 000 will be conducted in Airbus Training Facility in France only if the aircrafts are purchased.
MAS will finance RM300, 000,000 from the total aircraft price through a loan from one of the local banks at 8.4% per annum. At the end of the project’s life, each of the aircrafts is expected to be sold as used aircraft at prices tabulated as below:
Probabilities
0.20
0.30
0.35
0.15
Aircraft Price (RM)
218,000,240
219,000,420
218,240,240
219,840,460
Two months ago, MAS hired Wong Business Consulting Services Sdn. Bhd. to advise them on the proposal to buy the aircrafts. The consultation cost was RM44, 000 and had already being paid. If the two aircrafts are purchased, MAS will need to rent two hangars owned by Malaysia Airport Bhd. (MAB) for the purpose of aircraft maintenance and repairs. The rental costs for each hangar is RM200, 000 a year. The hangar rental costs will be revised every two years. Based on the discussions with MAB, the hangar rental costs are likely to increase by 2% every time the revision is made.
The corporate tax rate is 24% while the company’s required rate of return is 14%.
A. Based on the information given,
(i) calculate the project’s total initial outlay.
(ii) calculate the annual project cash flows.
(iii) calculate the project’s terminal cash flow.
(iv) how terminal value growth assumptions affect a project’s overall value with the interactive tool: What is your cost of capital?
B. Calculate net present value (NPV) and profitability index (PI) for the project.
C. Calculate the internal rate of return (IRR) for the project.
D. Should MAS proceed with the project? Explain your answer.
E. Assume there is a delay in the aircrafts’ construction process and the delivery could only take place after three years (instead of two years) after the order is placed. Could this project still be a viable project for MAS? Explain your answer.
F. Will Pandemic COVID-19 increase the Cost of Capital in the MAS Airlines Bhd and why? Explain by your strategies.

Select a Fortune 500 company or another company you are familiar with. Consider pharmaceuticals, computer hardware, retail, or automotive industries for your selection. If you choose a company that is not in the Fortune 500, ensure that enough financial information and key performance indicator results are available to complete the assignment.
Imagine your manager has asked you to help with a presentation on the company’s financial performance at the company’s annual meeting.
Research financial information and key performance indicators for the company.
Create a 10- to 16-slide presentation for investors to assess the company’s financial growth and sustainability.
Identify key performance indicators for the company you selected, including the following:

• The company and its ticker symbol
• Cash flow from operations
• Price-to-earnings ratio
• Stock dividends and the yield, if any
• Earnings per share ratio
• Revenue estimates for the next 12 months
• Revenue from the previous 3 years
• Statement of cash flows and identify net cash from operating, investing, and financing activities over the past 3 years
• Average trade volume.
• Current stock price, 52-week high, and 1-year estimated stock price
• Analysts’ recommendations for the stock (buy,sell, hold)
• Market cap for the company

Relate the stock price to price-to-earnings ratio.
Explain the market capitalization and what it means to the investor.
Evaluate trends in stock price, dividend payout, and total stockholders’ equity. Relate recent events or market conditions to the trends you identified.
Determine, based on your analysis, whether you think the organization is going to meet its financial goals, the outlook for growth and sustainability, and explain why you recommend this stock for purchase.
https://finance.yahoo.com/

Continue your work with the company you selected in Wk 2.
Research your company’s financial reports for 2017.
Complete a 2- to 3-page FAQ/Shareholder Analysis.
Evaluate economic conditions that influence company performance. Consider political, environmental, currency (money), global economics, and government influences on economic conditions.
Compare market conditions with the company’s performance for 2017. Conclude how the market conditions that year influenced the company’s performance, such as interest rates, Federal Reserve Bank monetary policy changes, or other market conditions relevant to the company you selected.
Analyze year-over-year performance from 2016 and 2017. Consider key metrics or ratios such as trailing PE ratio, forward PE ratio, price to book, return on assets, and return on equity in your conclusions.
Cite references to support your assignment.