In this assignment, you are to create and evaluate a startup company

similar to the company assigned to you in FIN 1 practice-based

assignment. ( the company assigned to me was KENYA AIRWAYS) You are required to do the following:

1. Similar to the OutReach Networks case, make a 5-year financial

projection (from the latest year) of the company. This financial

projection is for the income statement, however, you are also required

to calculate the Free Cash Flow for these 5 years. Show your workings

clearly regarding this.

2. Identify 3 similar companies (of the company assigned to you) quoted

in the capital market (Kenyan stock Exchange). Explain why they are

similar and calculate the Forward Price-to-Earnings (Forward P/E) of

each of these companies. Find the mean and median of these companies.

3. Assume that the beta of all companies is 1.50 and calculate the mean

and median.

4. A 10-year Kenyan Treasury rate is 15.045% and market risk premium is

assumed to be 12%.

5. Using the Venture Capital Method, calculate the post-money valuation,

pre-money valuation and equity stake if a private equity firm was to

investment $1m in the firm. Use the official conversion exchange rate.

You are required to submit your workings in Microsoft Excel and the

explanation of your analysis in Microsoft Word. Submission links for

each file type will be created separately.

Note: Assignment should be written in Times New Roman, font size 12 and

all margins should be 2cm at all sides. The paper size is A4 and

orientation is portrait.