FIN355: Russia invaded Ukraine on 24 February 2022 This act of aggression

Question 1

Russia invaded Ukraine on 24 February 2022. This act of aggression was condemned by the rest of the world and followed by a string of sanctions that are targeted toward Russia. Forex activities of Russian banks are curtailed. Restrictions are imposed on Russia’s oil exports. Export controls limit Russia’s access to high-tech products.

(a) Analyse what impact the Russia-Ukraine War has on the world economy as a whole.

(b) Besides the obvious impact on Russia and Ukraine, analyse what other regions/countries and what sectors it will affect most.

(c) Discuss what you think will be the impact to the US stock market.

Question 2

Megatron is a high-tech start-up company that produces Artificial Intelligence software that can help companies fine-tune their digital marketing campaigns to bring in more results. After two years of developing the software, Megatron has just completed one full year of software sales on a commercial basis.

Both profits and cash flows just barely turned positive as the company is only beginning to gain traction, and revenue is still tiny. The management of Megatron is optimistic that income and profits will grow exponentially in the next few years.

Megatron is at the point where more capital is needed to fund its growth. It has begun talks with a Venture Capital company, which suggests that they would value the company based on the Price Earnings (PE) ratio multiplied by its latest historical Net Income. It is willing to be generous in valuing Megatron at the same PE as similar listed companies.

CEO of Megatron, however, felt that perhaps the company could get a better valuation if they were to base it on a discounted cash flow method, valuing Megatron’s cash flows in the coming years.

You are Megatron’s CFO and are asked to advise the CEO.

(a) Appraise the two (2) valuation approaches and choose the more appropriate one in valuing Megatron, giving your reasons.

(b) Examine the difficulties involved in employing the valuation method you chose above.

Question 3

Several companies have approached Axer to acquire it. The CEO would like to prepare himself for discussions and has asked you to do a valuation of the company using the discounted cash flow approach with cash flows from the most recent financial statements as shown below:

(a) Assess the cash flows that can be used to value the entire firm (i.e., equity plus debt portion).

(b) Assess the cash flows that can be used to value the equity portion of the firm.

• WE OFFER THE BEST CUSTOM PAPER WRITING SERVICES. WE HAVE DONE THIS QUESTION BEFORE, WE CAN ALSO DO IT FOR YOU.
• Assignment status: Already Solved By Our Experts
• (USA, AUS, UK & CA PhD. Writers)
• CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

Why Choose Us?

How It Works

• Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
• Fill in your paper’s requirements in the “PAPER DETAILS” section.
• Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
• Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
• From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.

About AcademicWritersBay.com

AcademicWritersBay.com is an easy-to-use and reliable service that is ready to assist you with your papers 24/7/ 365days a year. 99% of our customers are happy with their papers. Our team is efficient and will always tackle your essay needs comprehensively assuring you of excellent results. Feel free to ask them anything concerning your essay demands or Order.

AcademicWritersBay.com is a private company that offers academic support and assistance to students at all levels. Our mission is to provide proficient and high quality academic services to our highly esteemed clients. AcademicWritersBay.com is equipped with competent and proficient writers to tackle all types of your academic needs, and provide you with excellent results. Most of our writers are holders of master’s degrees or PhDs, which is an surety of excellent results to our clients. We provide assistance to students all over the world.
We provide high quality term papers, research papers, essays, proposals, theses and many others. At AcademicWritersBay.com, you can be sure of excellent grades in your assignments and final exams.