Business Analysis Valuation Managerial Financial Statements

Question: Discuss about the Business Analysis Valuation : Managerial Financial Statements. Answer: In this report a study has been prepared on the cost and profit structure of Tangam Dairies Ltd Tangam Dairies Ltd reflects that if it is going to accept this new project then it would increase the sales units in the market by 200% after five years. However, the overall interest on capital for purchasing new machine $ 2, 00, 00. It reflects that company will have return more than its cost of capital which will surely increase the value of organizations. Tangam Dairies Ltd has estimated that it will increase its overall sales by 200% after five years. In addition to this, net profit of company will also increased by 900% due to less price and increase turnover (Healy Palepu, 2012). After analyzing the cost structure and capital investment decision of organization, it is observed that Tangam Dairies Ltd will have return on its capital employed more than its cost of capital. This shows that company will surely create value on its investment by increasing overall turnover of organization (Hirschey, 2008). References Healy, P.M. Palepu, K.G. (2012).Business Analysis Valuation: Using Financial Statements. Cengage Learning. Hirschey, M. (2008).Fundamentals of Managerial Economics.9thed. Mason: Cengage Learning.