Sumame

$...$ Other names: $.....$

Olive Branch Ltd manufactures high$-$grade olive oil for homes and religious bodies in Ghana and the West African sub$-$region. The company is currently in the growth stage of its business lifecycle. Though ugh its brand of olive oil is ranked second in Africa and fifth in the world, its production plants are becoming outdated due to technological advancements. Its smart engineers have been tweaking the production plants to at least maintain the current efficiency and quality levels. It imports some of its inputs from abroad but obtaining letters of credit from banks in Ghana has always been a challenge. Last year, shareholders voted on a resolution authorising management to make an initial public offer to raise additional money to recapitalise their company. The company plans to make its initial public offer in three months' time.

You have been asked to value the equity stock of the company and are about to carry out the valuation analyses. advise management on the IPO price. You

Required

$6$ marks$]$

$($a$)$ Mention and explain two factors you would consider in the global economy analysis. $(($b$)$ in the domestic economy analysis. $[6$

marks$]$

Mention and explain two factors factors you would consider in the industry analysis.

you would consider

$[6$ marks$]$

$($c$)$ Mention and explain two $($d$)$ Use Porter's Five Forces to assess the olive oil industry. $(10$ marks$]$

$($e$)$ Consider this fact: "The company is currently in the growth stage of its business lifecycle". Explain how this information would influence your valuation of the company. $[3$ marks