CASE HARVARD: FRIENDLY CARDS, INC (3)

1. Perform a financial analysis of the company
2. Stucture
3. Vertical and Horizontal Analysis; i) Balance sheet, ii) Statement of Profit and Loss
4. Evolutionary analysis of financial ratios; i) Liquidity Ratios, ii) Management Ratios, iii) Debt Ratios, iv) Profitability Ratios, v) Dupont Analysis
5. Evaluate the proposed project

2.1 Should Friendly Cards invest in equipment to enable it to manufacture its envelopes instead of buying them? If so, how?

3. Calculate the wacc of the company to be acquired, as well as the cash flow of the first two years (of that company, not CF)
4. Evaluate the alternative or proposed financing alternatives (see attached pdf criteria)

4.1. Should Friendly Cards Acquire Creative Designs?

4.2 Should Friendly Cards have recourse to the market to raise additional own funds and thus relieve the pressure on the financial situation?

Solution in word and excel