Objective: The objective of this assignment is to apply the principles of corporate finance to a hypothetical new venture (MY TOPIC IS TOYS R US) . Students will develop a pro forma financial statement, analyze risk and return considerations, and identify potential sources of capital to fund the venture. Instructions: 1. Develop a brief business plan for a new venture, including a description of the product or service, target market, competition, and growth potential. 2. Create pro forma financial statements for the first three years of operations, including income statements, balance sheets, and cash flow statements. Use reasonable assumptions to forecast revenues, expenses, and capital expenditures. 3. Analyze the risk and return considerations of the venture, including the cost of capital, expected return, and risk profile. Use appropriate financial models, such as the Capital Asset Pricing Model (CAPM), to determine the cost of equity and the weighted average cost of capital (WACC). 4. Identify potential sources of capital to fund the venture, including equity and debt financing. Evaluate the advantages and disadvantages of each source of capital and recommend an optimal financing mix. 5. Write a report that includes your business plan, pro forma financial statements, risk and return analysis, and capital raising strategies. Your report should be no more than 15 pages in length and should include appropriate tables, graphs, and other visual aids to support your analysis. Evaluation Criteria: Your assignment will be evaluated based on the following criteria: 1. The completeness and accuracy of your business plan and financial statements. 2. The quality of your risk and return analysis, including the calculation of the cost of equity and the WACC. 3. The effectiveness of your capital raising strategies, including the optimal financing mix and the evaluation of potential sources of capital. 4. The organization, clarity, and professionalism of your report and presentation. 5. The depth and breadth of your research into the industry and competitive landscape, including your understanding of relevant economic, political, and regulatory factors