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Capital Budgettting

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FINANCE CAPITAL BUDGETING SIMULATION WORKSHEET

Part I – Loan Analysis

|Group Members: | |
|Loan Decision: | |
|Loan Amount: | |
|Interest Rate: | |

INSTRUCTIONS: Congratulations! Your team is the newest addition to the loan committee at Barsema Hall Investment Bank (BHIB). The CEO of the New Heritage Doll Company has come to BHIB for a potential commercial loan to support future capital expenditures for their production, retail, and licensing divisions over the next five years. Your team has been charged with evaluating their financials and deciding whether to extend the loan, the maximum amount BHIB will lend, and at what interest rate.

Review the foreground reading and company financials posted on Blackboard in the ‘Simulation’ section. You may also use other third party resources (i.e. Google searches, etc) if you feel it is helpful, but the materials provided on Blackboard take precedence in the case of conflicting information.

Complete the executive summary, qualitative analysis, the financial statement analysis, and all questions in this worksheet using the foreground reading and the financial data for each firm posted on Blackboard. Each discussion response should be complete and self-supporting (one-line responses are not sufficient). You should incorporate relevant information into your responses from the foreground reading wherever possible.

It is

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