GF520 · Unit 10

GF520 Unit 10 corporate finance report example

Corporate Finance Purdue University Global Free custom sample in 24 to 48h

Everything GF520 has built across the term, the rate, the appraisal, the capital structure argument and the payout decision, usually converges in a final report. This Unit 10 example is written for directors at a composite medical-device contract manufacturer deciding whether and how to fund an 85-million-dollar clean-room expansion, and it answers both questions in a single recommendation.

What this page holds

One project, three ways to pay for it: the GF520 Unit 10 corporate finance report recommends a term loan plus paused buybacks over new shares or all debt. Searches like "gf 520 unit 10 assignment example", "gf520 unit 10 sample" and "gf520 unit 10 example" land here.

What a finished GF520 Unit 10 corporate finance report looks like

Twelve pages with an executive summary, five analytical sections and appendices. The summary states the verdict: build the expansion, fund 55 million with a seven-year term loan and 30 million from cash previously earmarked for repurchases. The investment section shows a net present value of 14.2 million at a 9.6 percent project rate, set above the firm-wide figure because contract manufacturing for a single device maker concentrates customer risk. The financing section compares three structures. All debt lifts net debt from 0.6 to 2.4 times EBITDA of 48 million. A share issue avoids leverage but dilutes current holders by roughly 9 percent. The mixed plan peaks near 1.8 times and keeps interest coverage near eight times. A final section lists conditions, among them renewal of the anchor customer's contract before construction begins.

How a GF520 Unit 10 example is structured

The report is organized so that the investment case and the financing case can each stand alone and then meet. The executive summary gives both answers in a page. An investment section follows with the project's cash flows, its rate, and a paragraph explaining why the rate differs from the firm-wide figure. The financing section then treats funding as its own decision, comparing structures on leverage, coverage, dilution, flexibility and what each signals to lenders and shareholders. A pro forma section projects the balance sheet and coverage ratios for three years under the recommended structure. Risks come next, ranked by their effect on value, with the single customer contract first. Conditions and a monitoring plan close the body, and appendices hold the full model, the rate derivation and the covenant terms assumed.

Two answers in one summary

Whether to build and how to pay are stated together on the first page, each with the figure that carries it, so the board can decide from the summary alone.

A project rate above the average

Customer concentration pushes the rate to 9.6 percent, and the report explains the premium rather than borrowing the firm-wide cost of capital unchanged.

Three structures, five tests

All debt, new shares and a loan-plus-cash mix are compared on leverage, coverage, dilution, flexibility and signal, each result shown in one table.

Three years, pro forma

Projected balance sheets and coverage under the chosen structure show leverage peaking in year one and falling as the clean room reaches capacity.

Conditions before commitment

Renewal of the anchor customer's contract and a covenant package with headroom are set as requirements before construction funds are drawn.

Where marks go in GF520 Unit 10

A closing report is marked on integration, and the most common loss is two papers stapled together. An investment analysis followed by a financing discussion that never refers back to it misses what the unit is testing: whether the funding choice fits the project's risk and size. Using the firm-wide rate for a project with concentrated customer risk draws a specific comment in many sections. Financing options compared on cost alone, without flexibility or signaling, look incomplete at graduate level. Pro formas that stop at the income statement cannot show whether covenants hold. Recommendations without conditions read as overconfident, particularly when a single contract carries the forecast. Presentation counts in a board document, so an executive summary that runs three pages or omits the funding answer loses points before the analysis is read.

Get a GF520 Unit 10 example written to your instructions

The capstone for GF520 Unit 10 varies by section, so send the full case, any data your instructor supplied and the rubric. Both the investment and the funding question get answered in one recommendation, backed by a three-year pro forma and stated conditions. Your first custom sample is free, with turnaround in the 24-48h range.

GF520 Unit 10 questions, answered

Can the report reuse work from earlier units?

Often it is expected to, since the capstone gathers the term. The cost of capital, the project appraisal and the capital structure analysis from earlier units can be updated and cited rather than rebuilt. The sample treats earlier work as inputs and spends its length on integration, which is where closing rubrics tend to place most of their weight.

What belongs in the executive summary?

The decision, the funding structure, the value created and the conditions, in that order and on a single page, which many rubrics require for a board document. The sample's summary carries three figures only, net present value, peak leverage and dilution avoided, because a summary crowded with numbers stops being read and the detail belongs in the sections behind it.

Should the report include a sensitivity analysis?

Yes, usually on the one or two inputs the recommendation depends on most. In the sample those are the anchor customer's volume and the construction timeline, since a six-month delay moves the first year of cash flow. Sensitivity on inputs that barely move value adds length without informing the board, and graders often note the difference.