you are an entrepreneur ready to start your own business. You will use
the various skills learnt in the course to evaluate if you should accept or reject your
business idea. An 8-page report is to be handed in according to details below.
Pick a business idea of your choice (New Business) which you intend to start and do the
following:
- Evaluate the local markets in light of stock markets, interest rates, currencies and
commodities. Explain how these elements would affect your proposed business. - Financial Management
a) Choose a form of business. Describe why?
b) Project cash flows for the next five years (derive from assumptions about
revenues and expenses) – use excel spreadsheet to perform this task
c) Discuss sources of financing for the project - Risk Analysis
Evaluate the risk of this venture and compare with public companies in the same
industry. Use CAPM to discover the required return on equity. - Cost of Capital
Determine the cost of capital and explain its effects on rates of return.