Financial Management Term Paper

• Consider a manufacturing firm listed with Dhaka Stock Exchange (DSE)

• Collect the annual report of the last 5 years of that company.
• Calculate and interpret the following ratios:
a) Current Ratio f) Return on Assets
b) Inventory Turnover Ratio g) Return on Equity
c) Total Assets Turnover Ratio h) Earnings per share
d) Debt Ratio i) Net Profit Margin
e) Time-Interest-Earned Ratio j) Price/Earnings Ratio
• Collect the information of net cash flow from the Cash Flow Statement for the last five
years and calculate the average annual growth rate of net cash flow. Based on the average
growth rate, forecast the cash flow for the next five years. This 5-year cash flow will be
your reference for further calculations.
a) If you are given the opportunity of receiving this cashflow for the next 5 years, how
much are you ready to provide now for this cash flow? You should assume your
required rate of return.
b) Suppose the company is making an investment requiring BDT 2,000,000 and
WACC of the firm is 08%.
i. Calculate the payback period, discounted payback period, and
accounting rate of return of the project. Consider that the allowable
PP/DPP is 3 years.
ii. Calculate the NPV of the project.
iii. Calculate the IRR of the project.
iv. For (i), (ii), and (iii), provide your decision of acceptance or rejection.

Term Paper Outline

Term Paper Contents: Formatting:

Title Fly Individual Financial
Title Page Management Term Paper
Table of Content Deadline: 10th Class
Executive Summary Presentation: 11th and 12th Class
1. Introduction
2. Overview of the Company
3. Significance of the Study
4. Research Objectives
5. Methodology
6. Analysis and Findings
7. Recommendations
8. Conclusion
Appendix