Matthew Knight Arena : Financial Forecasting - Case Study Example

Only on StudentShare

Extract of sample
Matthew Knight Arena : Financial Forecasting

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. ...
Download paper


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…
Author : clare49

Related Essays

900,000 ?1,600,000 ?1,850,000 ?1,100,000 ?2,225,000 Discount Factor @ 12% Cost of Capital 1.00 0.893 0.797 0.712 0.636 0.567 Present Value (?5,150,000) ?803,700 ?1,275,200 ?1,317,200 ?699,600 ?1,261,575 NPV ?207,275 NPV:-?5,150,000 + ?803,700 + ?1,275,200 + ?1,317,200 + ?699,600 + ?1,261,575 = ?207,275 The Net Present Value of a company is the value of a future number in terms of today. It basically helps in finding out a project’s is profitability. It requires finding out the present value of each future cash flow discounted at a specific value, which is the cost of capital of the project...
10 pages (2510 words) Term Paper
Business Forecasting: Share price evaluation
For Skewness, ideally it should be zero indicating symmetry and normality. Positively skewed data are said to be right tailed and it is an indication that stocks carry on a likelihood of have a higher probability of earning positive returns. In this case, only FTSE MID 250 (1.690595) was seen to be positive and this is also because the company prides in having one of the leading share returns in the market over the recent period. On the other hand, negatively skewed data are referred to as left-tailed and this is reflected in the rest of the variable ranging from BRUSSELS ALL SHARE 0...
10 pages (2510 words) Essay
Forecasting Crude Oil (Spot Price) Volatility
Daily prices for crude oils are effective in volatility forecasting. 17 It was also imperative to use the two cluster analysis in the paper. 17 In the case of GARCH to obtain the unknowns the formula was applied where the initial value Xk was taken to be 25.56 where a= 0.001 (fixed) 17 b= 0.00 18 c= 0.00 18 In using the same formula the values for a, b and c were P-GARCH established to be 18 a= 0.001(fixed) 18 b= 0.394 18 c= 0.050 18 Xk= 25.56 18 For GARCH GJR, the values were found to be 18 a=0.001 (fixed) 18 b= 0.488 18 c= 0.110 18 Xk= 25.56 18 for E GARCH a=0.001 (fixed) 18 b= 0.488 18 c=...
20 pages (5020 words) Dissertation
ARCH modeling: forecasting the return in the UK stock market
On the other hand, the index helps ARCH models to bring forth exact forecasts for out-of-sample forecasting on considering performance measures. This study would help to develop an investing strategy based on the results that would bring about significant positive returns. Keywords: ARCH Models, Stock index volatility, Predictive ability, ARCH modeling: forecasting the return in the UK stock market Introduction There have been quite a number of studies which show that different parameters of ARCH models offer good estimates of equity returns. The compatibility of ARCH models are evident in...
42 pages (10542 words) Dissertation
Financial Analysis and Forecasting
analysis shows that there exist a perfect relationship between sales and assets. The value of R-square is 1 this shows a perfect relationship that will produce a best-line-of fit that passes through the origin. The proportionality assumption that the value of assets increases proportionally with sales is therefore, holds, and is true. B) Repeat the part a regression analysis assuming the given data. Under these conditions, does it appear that the proportionality assumption holds true? Explain. From the results obtained below, the R squared value is 0.906304 this shows a good relationship...
7 pages (1757 words) Coursework
Financial Forecasting
The report also explains further information that needs to be reviewed to make the findings more meaningful. This performance analysis can be used by the management, the shareholders or the potential investors to identify with the performance of the company and in particular assess its strengths and weaknesses. Assumptions The following information is available for preparation of the marginal costing cost statement ?/Unit Direct materials 0.04 Direct labour 0.15 0.19 Selling price 0.5 The fixed production overheads include depreciation amounts to ?3,000 per month. For the first month, the...
3 pages (753 words) Essay
Introduction to Financial Markets - Forecasting interest rates
Interest rates, according to the Financial Times , have fallen back to the historic lows, permitting companies, individuals, and some countries to borrow loans at a price lower than before. Contrary to this, households and the extensive economy still fight back in the wake of credit stagnation. The relationship between these two forces, that is the stimulating impact on economic operations of low borrowing prices and the damping impact of a liability squeeze has adverse repercussions for investors globally, from those individuals who save on their own to the world’s largest insurance...
6 pages (1506 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!