Course Title: Corporate Finance

Competency Assessment Title: Financial Plan

Total Number of Points: 100

Assignment Directions

Review the company you chose to work with in Competencies 1 and 2.

Describe the business, including the type of business.

Create the business case:

• Determine why funding is needed for the company.

• Determine the sources of funding. Consider self-funding, borrowing, equity, venture capital, and so on.

o Evaluate the requirements of each funding source you determined appropriate.

o Analyze the associated risks of each funding source.

o Decide which sources are the best fit for your company based on the requirements of each. Justify your decision.

• Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs for your selected sources

of funding. Consider creating a table or chart to display this information.

Create a profit-and-loss statement for a 3-year period. Project revenue. State any realistic assumptions, such as growth per year, in your

projections.

Estimate direct costs, including capital, marketing, labor, and supply costs.

Cite references to support your assignment.

Competency Assessment Rubric

1. Sources of Funding (weight 10%) Determination of sources of funding such as self-funding, borrowing, equity, venture capital, etc. was comprehensive.

2. Cost of Capital (weight 35%) Comprehensively estimated the cost of capital including current APRs for selected sources.

3. Profit-and-Loss Statement (weight 35%) Created a fully complete profit-andloss statement for a 3-year period including revenue projections and stated assumptions.

4. Direct Costs (weight 20%) Comprehensively estimated direct costs