This request is to do an investment recommendation for MNST (Monster Beverage Corp) focusing on the following two specific sections: Part 1) Section 4.2 Five-year cash flow model - Each group needs to gather five-year’s worth of financial data on the company that they pick. The data includes income statements from which you can extract the earnings and create a cash model similar to the one that we build in the class. The model is essentially a valuation model that will tell you to buy or sell short the company depending upon your valuation compared to the stock price at the time of your analysis. Using the five-year cash flow, you will make a forecast on the coming year’s stock price. This could be a simple extrapolation or any combination of qualitative and valuation analysis. You will need to use the WACC formula to develop the 5 year cash flow analysis Part 2) Section 7 Risk management. For each investment proposal, students are required to elaborate on the risk characteristics of the proposal. Important metrics that should be considered include the volatility and the maximum loss that your position can withstand. The two sections above require analyzing the Income statement, Balance sheet and the Annual cash flow. All three documents are attached to this request.

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