Financial Evaluation and Analysis of Superstore Options

Running head: FINANCE PART 2
Finance
Name of the Student:
Name of the University:
Author’s Note:

1FINANCE PART 2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Methodology................................................................................................................................3
Evaluation and Analysis..............................................................................................................5
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................9
References......................................................................................................................................11

2FINANCE PART 2
Executive Summary
The aim of the assignment is to conduct a financial assessment of the two alternative proposal
available for building of a new superstore and for a takeover bid for the Helibeb Plc. The
alternative option would be considered for the purpose of the financial evaluation based on the
return generated and the initial investment done by the company. In order to make an effective
evaluation, the major set of data that has been made available are the cost of the building of New
superstores under different options along with estimated cost and annual sales of both proposed
stores. The proposal for financing the options will be analysed with the help of the available
option like the 20-Year Bond, 50-Year Bond and issuance of shares. The assignment also deals
with the evaluation and determining the takeover bid for the Helibeb Plc. and the same was done
with the help of the ratio analysis comparing the financial performance of the company over the
last two-years. The analysis for the project will be done with the help of the financial position of
the company and assessing how the company has performed on a financial basis. It is essential to
consider various business and macro-economic environment for the purpose of the analysis. The
takeover bid will be evaluated in order to make a takeover offer to a clothing retailer naming
Helibeb Plc for which the income statement, Balance sheet and significant ratios have been
provided to assist the process of this evaluation. The major areas covered by this report include
the methodology for evaluating the proposed new superstore locations and prospective
acquisition, in the light of available finance, an evaluation of the proposed new superstore
locations and prospective acquisition of the firm.

3FINANCE PART 2
Introduction
Financial viability of the project is evaluated with the help of the cash flows and the net
profitability generated by the investment project. The financial assessment for building Project A
and Project B would be taken into consideration for the purpose of the evaluation of the overall
suitable project for the investors. It is essential that the financing sources selected by the
company for financing the assets of the company be suitable so that the investor and company on
a net enjoy a higher return from the investment (Khmel & Zhao, 2016). The report is based on
the case study of Scylace Plc, which has engaged a management consultant who will be
recommending the best alternative investment proposal available with Scylace plc for which the
requisite quantitative data has been provided. The alternative investment options are the
construction of new superstores either at one or at both of the different locations or considering
the proposal for the takeover of Helibeb Playa clothing retailer. Currently as a means of raising
finance, the alternative sources of finance to be evaluated are bonds with 20 years or 50-year
redemption period or the shares to be. Further, the requisite data for the target organization, the
Helibeb Plc. as provided are the income statement, balance sheet and the relevant ratios of the
entity. The financial performance of the Helibeb Company will be taken into consideration for
the purpose of the evaluation of the financial statement of the company (Iswandari,
Amboningtyas & Yulianeu, 2018). The selection of the best alternative project for the company
will done accordingly with the tools of capital budgeting which will help in better assessment of
the available projects (Huang & Zhao, 2016).