Acc – newgrade energy inc.

END-OF-COURSE CASE
NEWGRADE ENERGY INC.
Blair Swystun, the Senior Vice-President and Chief Financial Officer of Crown Investments Corporation of Saskatchewan (CIC), was faced with a challenging decision. CIC was contemplating the sale of its fifty percent (50%) interest in a heavy oil upgrader, NewGrade Energy Inc. (NewGrade), and wanted an assessment of the worth of the company. To obtain a reasonable estimate, Swystun has instructed an independent adviser with expertise in the industry to provide input. In addition to receiving an estimate of value, Swystun also needed to formulate a strategy for selling off the company.
The learning objectives include:
 How to value a company utilizing the free cash flow method, the comparables method and the precedent transactions method
 Strategies for arranging a strategic sale
Based on your analysis, please answer the following questions. The quality of the case analyses should be based on the originality and rigor of the answers provided for the questions related to the case and the thoroughness of the power point presentation documents. The groupss also need to do adequate outside research to complement their findings and analyses.
1. Describe the various constraints of the valuation faced by NewGrade.
2. Describe the calculation underlying the Free Cash Flow to the Firm Method utilizing
a. The Value of the Firm using Free Cash Flow
b. The Cash Flow Forecast
c. The Capital Structure
d. The Cost of Capital
i. The Capital asset Pricing Model
ii. Beta of Comparable Companies
iii. Adjusting the Beta for Leverage
iv. Cost of Equity
v. Adjusting for an Illiquidity Premium
vi. The Cost of Debt
vii. Weighted Average Cost of Capital
e. Valuation Using Discounted Cash Flow
Describe the Valuation using Comparables Method
Describe the Valuation using Precedent Transactions Method
As the adviser to Swystun, assess the value of CIC’s equity interest in NewGrade by employing the free cash flow method with no debt, free cash flow method with 25% debt, the comparables method and the precedent transactions method.
What is the average valuation of NewGrade?
Which strategy should Swystun employ in selling the company?

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more