Lady M Confections

Deadline: 4.6.2019, 1:15pm.

Case Study Questions:

1. Assuming sales in year one are break-even, how quickly would sales need to grow after
the first year to pay the start-up costs within 5 years. Is this growth rate feasible? (Include
break-even calculation for year 1 n your answer)
2. Prepare a financial forecast of free cash flows from 2015-2019.
3. Estimate Lady M’s enterprise value using DCF method.
4. Do you think they should take the Chinese investors’ offer? Why/why not?

Writing Instructions:

 The submitted paper should not be less than one page and more than two pages long.
 The font size should not be less than 9 and more than 11 in Times New Roman.
 Late submissions will not be accepted and graded.
 Students are expected to submit a professionally written paper (in terms of structure,
content and grammar), as part of grading will be based on professionalism of the
submitted paper.
 Calculations (if any), in the form of spreadsheets or other, can be attached to the paper, or
sent via email as a separate document.
 Copying from each other or from other sources is strongly prohibited and if caught will
have heavy consequences for the student.