Netflix has approached the bank for a $50 million long-term bond with an 8% coupon rate over 30 years. The student must calculate the monthly interest expense, discuss the impact on Netflix's income statement and balance sheet, and make a recommendation on approving the loan. Netflix also wants a line of credit and the student must analyze Netflix's statements to recommend an amount and rate, with a 300-word summary for the credit committee. Finally, the student needs to create an 8-10 slide PowerPoint to present their findings to the committee.

1. For this assignment, you have a commercial loan case study to
analyze and report on.
There are multiple parts to the project:
Complete pro forma statements for the years 2015–2019,
assuming an 8% growth rate for all line items. The cells that
need to be completed are shaded in yellow.
The management of Netflix has approached your bank about
borrowing $50,000,000 in the form of a long-term bond. The
bond would have a 30-year maturity and an 8% coupon rate. The
first step is to calculate what the interest expense would be for
this bond for Netflix on a monthly basis. Next, discuss what
areas of the income statement and balance sheet would be
impacted by this new debt and how. Finally, write a one-page
recommendation to your credit committee regarding the
approval of this loan.
The management of Netflix has approached your bank about a
line of credit. They are shopping for the largest line of credit
and the best rate possible. Analyze the accounting statements
and write a one-page recommendation to your credit committee
that includes if you think you should approve a line of credit. If
so, state how much, and a suggested interest rate. Explain your
rationale and any assumptions you have made. Your summary
should be at least 300 words.
Lastly, prepare an 8- to 10-slide PowerPoint presentation
summarizing your findings that you could use to present to the
credit committee.