1) What are the principal challenges facing Monsanto, both in the near term and in the long run?
2) Please calculate a set of financial ratios for Monsanto. These will form the basis of your forecast.
3) Please complete a forecast for Monsanto’s 2009 income statement and balance sheet in the supplemental worksheet. Do not forecast debt or equity accounts (i.e., just complete a balance sheet for current assets, total assets, and current liabilities). You may assume that interest expense remains at 2008 levels. Please be aware that Monsanto has an August year-end, though this will not affect your analysis. As a starting point, consider a forecast with 20% growth in corn seeds and traits and 10% growth in Roundup. Perform a sensitivity analysis to explore alternative assumptions.