FIN1FSA Financial Statement Analysis-Semester 1

b) Prospective Analysis-Forecasting
Prospective analysis involves forecasting of future consolidated balance sheet and income statement. You are required to perform a prospective analysis with the 5-year forecasting of key metrics such as:

• Sales growth
• NOPAT margin
• Net Operating Assets turnover
• Net operating working capital to Sales ratio
• Net Debt to Capital ratio
• After tax cost of debt and Dividend rate

Also, explain the key assumptions underlying your forecast.