Finance Assignment

Finance Master’s Degree Level Assignment

Due: Thursday, May 7th at 11:30 am EST

Please answer each question in detail on a WORD document (2 pages). You are free to use data from the stryker data.xlsx in the form of an appendix. 
   
The data and assignment questions are based on the Stryker Corporation.     
This assignment refers to data in the attached Excel file: ‘stryker data.xlsx’.

Below some assumptions you must use in answering the questions below:
Key Assumptions and Questions

1. The attached spreadsheet contains financial data for Stryker. It also contains a standard 5-year forecast. Use the forecast to inform your answers. Make changes to the model as you deem appropriate.  
Please note: in the instructions I refer to it containing a standard 5 year forecast. To be clear, within the data you are provided, you have the ability to *build* that 5 year forecast using reasonable assumptions. That is a core part of this exercise 

2. Stryker sells medical devices, that require PCB’s. It is evaluating whether it should insource the production of circuit boards *PCB’s). To insource, they would need to build a manufacturing facility, and sever ties with their suppliers. The current spreadsheet describes their base financial model if they continue their current strategy. Make sure you understand and describe this scenario fully

3. If Stryker decides to insource, that will have multiple impacts on their financial situation. They would take a long term loan to build or buy a PCB factory. They can borrow money from a bank at 8%.

4. All items on the IS/BS are in 1,000s

5. If Stryker builds a PCB manufacturing plant, assume they can build it immediately. This is unrealistic but will simplify the problem