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Astral Records Ltd Case Report

Satisfactory Essays

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KOZMINSKI UNIVERSITY
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Financial Statement Analysis
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Critical Review
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Astral Records Ltd
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Ewelina Łaguna 23200
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Joanna Czechowicz 23155
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Yue Jingtong 23275
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And more assumption means more incorrect of the result. For example here is no need to assume stable interest expensive. During the presentation, when people asking why using the numbers they said just because of assumption. The growth rate they were using is 15% and they give no reason, however the 15% is from the expected growth rate not only from the assumption.
Considering all the previous calculation is from assumptions and we must agree but if they do it more careful and using less assumption it will be much better compare the thing they have now.

3. What are the key driver assumptions of the firm’s future financial performance? * What are the managerial implications of those key drivers? * That is, what aspects of the firm’s activities should Conner especially focus on?

Question 3 is not clear during the presentation however they showed everything in their report.

4. What is Astral’s weighted average cost of capital (WACC)? * What methods did you use to estimate the WACC? * What key assumptions especially influenced the WACC?

Question 4 looks correct, but they didn’t show us numbers and we feel like the result is from the heaven. After checking the report we found out they use the wrong data.
What they wrote in their report:
‘‘WACC was calculated using the following inputs;
Using

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