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Case Study sample - Matthew Knight Arena : Financial Forecasting
Finance & Accounting
Pages 3 (753 words)
Name: University: Course: Tutor: Date: Matthew Knight Arena – Financial Forecasting Executive Summary This paper represents a summary of the cash flow forecast for Matthew Knight Arena as well as an estimation of the current firm’s value. As part of considering the cash flow realizations for both the forecasted and the actual cash flow figures, this paper will involve some of the financial ratios…
This ratio is known as cash realization ratio. According to the senate budget subcommittee (3), that was involved in the projection of the cash flow when the arena was being started, the projections for the year 2008 to 2012 closely matched to the actual figures. The cash flows were projected using past evaluation and the consistency of the figures for the last periods. Revenue and Cost Streams The firm generates much of its revenue from the men’s basketball, that s, from the income generated from the season tickets sales. This income will comprise of construction fees, annual DAF contribution, high face value prices of tickets and ticket facility fee that will be sold for 2 dollars per ticket. Other revenues include the sales of tickets for football games, baseball, and golf and tennis games. The costs will be attributed to the operations that will be done to improve the generations of the revenues. The administration expenses will also cover part of the costs streams (University of Oregon, Senate Budget Committee 3). Debt Service Coverage Ratios Debt has been projected to be 13 million every year for the next forty years. This is done mainly to service the 40 million F-bonds that were used in the initial financing of the Arena construction. ...
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