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The CFO has asked you to analyze the information to help the decision makers select among different options. He asked that your analysis include the following topics:

• Operational performance- Write a brief analysis of GBATTs operational performance. Include discussion of the year over year performance.
  • Discuss the financial condition of the entity and the positives and negative aspects of the balance sheet. Discuss the following:
    • Trends in receivables
    • Trends in cash and investing
    • Trends in inventory
    • Trends in accounts payable
  • Discuss the operational results of the past year focusing on the following:
    • Changes in sales, variable costs and fixed costs
    • Interest expense
    • Foreign currency translation hedge
• Financial Markets and Funding Choices Analyze the choices of funding for the new plant. Your analysis should include
  • Debt Financing
    • Compare currency denomination choices for debt, and if debt is selected for financing suggest whether the debt should be denominated in U.S. dollars or Brazilian reais. Discuss how your decision changes because of the foreign currency hedge currently in place.
    • Compare centralized and decentralized denomination of debt and its effect on the debt issuance.
    • Determine if a fixed or a floating debt rate should be used and the performance of what is currently in place.
  • Equity Financing Examine whether equity should be domestically listed in a single exchange, or cross-listed in multiple exchanges around the world. What are some advantages and disadvantages of each?
  • WACC Summarize the level of GBATTs current weighted average cost of capital and risks and opportunities in that regard.
• Discuss successes of foreign currency hedge in place and what you would do to help protect against foreign currency risk going forward.

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