Corporate Valuation Report : General Electric

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CORPORATE VALUATION REPORT: GENERAL ELECTRIC KARL ANDERSON APRIL 15TH 2015 QUANTITATIVE MODELS IN FINANCE FNN 6205 DR. IVAN COHEN RICHMOND THE AMERICAN INTERNATIONAL UNIVERSITY IN LONDON Contents I. Report II. Executive Summary III. Bibliography IV. Data Appendices Report This report would create a corporate valuation based on the financial forecasts of General Electric (GE) and recommend whether investors should invest their capital into the company. The report would focus on whether General Electric would have a positive or negative outcome from the financial analysis of the accounts. The risks of GE taking a loan from a bank in the US should also be taken into consideration as it would have a direct impact on their financial position. In addition, it would look at the most important variables that would make the company profitable in the long term. This means that there would be factors that would help increase their sales growth higher than increase in costs. To start off with the most important factors that make the company profitable are sales of goods and sales of services as they contribute to the total revenue. From viewing the sales, the sales have increased from 2013 to 2014 and according to the financial forecast, GE is expected to experience future sales in 2015 and onwards given the premise that there is no recession in the subsequent years. This sales growth would be at a rate of 2.5% while the US economy is growing at
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