Using information from the Balance Sheet and Income Statement, you need to calculate the Cash Flow Identity: calculate free cash flow from both the operational and financial perspectives. You may need to use information from the Statement of Cash Flows to obtain the value of dividends and depreciation if the company does not adhere to US GAAP. Also, calculate the Net Investment Rate (NIR), Return on Invested Capital (ROIC), and EVA assuming the cost of capital WACC is 10%. If you have information that the WACC is different from 10%, use that WACC and cite the source.
The Word document should contain an explanation of how corporate decisions or events in the company’s macro or competitive environment translated into the result shown by the Cash Flow Identity and the value drivers (ROIC, NIR, EVA). The explanation in Word should not exceed two pages. Use any indicator or tool learned so far in finance courses to analyze the company.
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