Finance homework help

Assignment 1: LASA 2—Country/Industry Risk Analysis

 
Assume that you work for a large multinational telecommunications corporation in the U.S. that is considering establishing operations in another country. Select one country as the basis for exploring the possibility of starting a joint venture in that country. You are assigned by your supervisor to conduct a full country risk analysis for this country and the telecommunications industry in that country. You are to present your findings to the Board of Directors in the form of a risk analysis report.
 
Your supervisor has asked for you to divide your report into the following areas for analysis:
 

  • Economic Risk
  • Political Risk
  • Business Environment Risk
  • Currency Risk
  • Recommendations for proceeding and suggestion of two additional financial analysis methods which could be used to further support the decision.

 
You are to conduct a country/industry risk report, identifying as many factors as possible in the categories listed above for the analysis.  Present your findings in a report of 10-12 pages.
 
In your report, you will make a recommendation to your supervisor as to whether or not the company should proceed with this venture.  Suggest two additional financial analysis methods which should be explored further in analyzing the feasibility of starting the global joint venture.  Explain your recommendations. The textbook suggests methods for doing a country analysis and there are several models that can be found on the Internet.
 
Use the following file naming convention: LastnameFirstInitial_M5_A1.doc. For example, if your name is John Smith, your document will be named SmithJ_M5_A1.doc.
 
By Monday, December 7, 2015, deliver your final project to the M5: Assignment 1 Dropbox. Your facilitator will post the final projects in Doc Sharing.
 

Assignment 1 Grading Criteria
Maximum Points
Identified and analyzed the Economic Risks for this country as they relate to the industry and this venture.
48
Identified and analyzed the Political Risks for this country as they relate to the industry and this venture.
48
Identified and analyzed the Business Environment Risks for this country as they relate to the industry and this venture.
48
Identified and analyzed the Currency Risks for this country as they relate to the industry and this venture.
48
Recommendations as to whether the company should proceed and two additional financial methods which could be explored were accurate, feasible and well supported.
44
Written Components:
Organization (16)
usage and mechanics (16)
APA elements (24)
Style (8)
64
Total:
300

Assignment 2: Exchange Rates

Assignment 2: Exchange Rates

You own and operate a chain of electronic stores in Texas and you are considering expanding your inventory to include tablet work stations for small businesses. There is only one supplier of the brand of tablets you would like to stock in your store, and that firm is located in Mexico. You have researched the current spot and forward rates between the U.S. and Mexico, as indicated in Table-1:

TABLE-1 Spot Rate 30-Day Forward 90-Day Forward 180-Day Forward
U.S. Dollar/Peso 1.7851 1.7052 1.8051 1.7555
<OR>
Peso/U.S. Dollar ? ? ? ?

Questions:

  1. Complete the Peso/ U.S. Dollar row in Table-1 and explain your methodology.
  2. If you agree to pay 2-million pesos for 100,000 tablets at today’s spot rate, how much would you pay in U.S. dollars?
  3. If you agree to pay 2-million pesos but wait 180 days and end up paying the 180-Day forward rate, how much would you be paying for the 100,000 tablets, in U.S. Dollars?
  4. Your competitors sell the tablet for $41.20 and you must mark you product up from cost by at least 20% to earn a minimal profit, should you buy the tablets today?  Explain your answer.
  5. Should you wait to buy the tablets in 30 days at the current 30-day forward rate?  Explain your answers.

Use the following file naming convention: LastnameFirstInitial_M4_A2.doc. For example, if your name is John Smith, your document will be named SmithJ_M4_A2.doc.
By Wednesday, December 2, 2015, deliver your assignment to the M4: Assignment 2 Dropbox.

Assignment 2 Grading Criteria
Maximum Points
Correctly completed Table-1, Peso/Dollar conversion.
20
Correctly calculated the conversions from pesos to dollars.
32
Correctly determined the maximum costs that could be incurred that would allow minimal profit goals.
32
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.
16
Total:
100

executive level financial report

THE PROJECT IS DESIGNED TO BE COMPLETED INDIVIDUALLY (OR A GROUP) AS ASSIGNED BY YOUR PROFESSOR) BY THE STUDENT.
I           SITUATION:
OBJECTIVE
The specific objective of this graded written research exercise is to prepare an “executive level financial report” to the Chief Financial Officer (CFO) of a mythical company in which you are employed as a financial analyst.  This report will pertain to the financial evaluation of a real, publicly-traded, company. It will require independent research (web-based or library), careful financial analysis, and the proper application of key financial theories and formulas.
The company that is to be analyzed for this project is (company selected by instructor).
Alternatively, you can request me to approve another publicly traded company. This request must be submitted before the end of the first week of the course. The request must include
a.         identification of the company by ticker symbol and name
b.         a reasonable and appropriate explanation of why you want to examine the alternative company
c.         the source of the analyst’s report that will be used in the analysis (which must be submitted to me)
d.         acknowledgement by you that all of the specific elements of the assignment (see below) will be prepared by you and included in the final research project report
 
SITUATION
You are a financial analyst with the mythical High Technology Corporation (“HTC”). HTC is an established manufacturer of a line of electronic components, which services an international market. HTC is currently a new fully-integrated wireless communication service for world-wide use.  A competitive technical and economic product evaluation has determined that THE COMPANY THAT IS TO BE ANALYZED FOR THIS PROJECT (COMPANY SELECTED BY INSTRUCTOR) (a real publicly-traded company) is the best potential candidate for a long-term commitment.  THE COMPANY (COMPANY SELECTED BY INSTRUCTOR) is offering a competitively favorable deal.  However, based on some serious general concerns about the fallout of companies in the industry in general, the CEO has asked your CFO to conduct a financial analysis of THE COMPANY (COMPANY SELECTED BY INSTRUCTOR) to determine if it is prudent to commit to this company’s communication system.  The cost of cutting over to the new communications system is significant and any interruption in support during the next few years would adversely affect HTC’s performance and profit. Specifically, the question is: will THE COMPANY be financially viable over the next two to three years?
 
YOUR SPECIFIC ASSIGNMENT
Your specific assignment is to research, analyze, and prepare a report for the CFO on the actual financial performance of THE COMPANY THAT IS TO BE ANALYZED FOR THIS PROJECT (COMPANY SELECTED BY INSTRUCTOR).  In addition to reviewing the traditional financial performance indicators, you are also to review THE COMPANY’S past and current stock performance. Your report includes three parts:
(1)        An evaluation of THE COMPANY’S financial performance for the last year. DuPont analysis and analysis of significant financial performance results are required for the last three years. (See detailed description below)
(2)        An evaluation of THE COMPANY’S stock performance for the last one year.
(3)        Finally, a specific recommendation, with supporting rationale, as to whether or not THE COMPANY’S recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment.
To assist you in your task, the CFO has provided the following general guidance. Since it is recognized that the industry is undergoing a major contraction, it is very important to comparatively evaluate THE COMPANY’S financial and stock performance trends against its Industry.
You may wish to include all necessary and relevant financial performance and stock information, trends, and projections in supporting your recommendation. These factors may include, financial ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, and management and investment reports – when these documents are available.
REPORT REQUIREMENTS
YOUR SPECIFIC ASSIGNMENT
Research and analyze the following information for THE COMPANY (SELECTED BY INSTRUCTOR).
–Annual Balance Sheets for THE COMPANY for the last three years.
–The Income Statements for THE COMPANY the last three years.
— Annual reports, 10K or 10Q——
–Industry norms ———–
—Analysts’ reports on performance
— Management reports or press releases
Using this information the students have to develop evaluation of the financial performance for THE COMPANY (SELECTED BY INSTRUCTOR). (Totally 85% of the assignment grade)
-1—Background and Industry (one short paragraph).
-2—Select of most significant financial performance results for the company: Compare Revenue, net income, working capital, total assets for the last three years and other results of your choice of the company against the industry or main competitor. Present the table with this information in your report. Write about 1 page of the analysis of these financial performance results. (15% of the project grade)
-3—Find financial ratios for the company and its major competitor in the Internet. Write about 1-2 pages of analysis of the ratio results you received. (15% of the project grade). Compare the ratio results against the industry or main competitor.
-4- Evaluate Return on Equity for the company for the last three years using the DuPont analysis. (10% of the project grade). Compare the company’s results to a major competitor.
Taking the information from the Income statements and the Balance sheets, calculate the company’s return on equity using the DuPont technique for the company for three years. Show your calculation!
Write about 1 page of analysis of the results that you received. Compare the results to main competitor. If the management of the company would like to improve their return on equity, what should the management of these companies do?
-5- Evaluate other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations (if possible), bond rating valuations (if possible), etc. Make an overall conclusion about financial performance of the company during the last years. Compare the results that you received against the industry or main competitor.  Summarize the results that you received in 1 page. What are the firm’s financial strengths and weaknesses? (10% of the project grade)
-6- Collect and evaluate the data about stock performance of the assigned company’s for the last one year. Compare the results that you received against the industry or main competitor.
Write about 1-2 pages of analysis of the ratio results you received. (20% of the project grade).
-7- Develop a specific recommendation, with supporting rationale, as to whether or not the assigned company’s recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment (about 1 page) (15% of the project grade)
 
PRESENTATION OF PAPER AND WRITING (15%) of the project grade):
-Organization, Format and Presentation of Paper including the Title page, Introduction, Body, and Summary (4% of the project grade)
Use of Tables, Figures and Other Graphics to Summarize and Support Analysis Presented in the Paper (3% of the project grade)
Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report (3% of the project grade)
Research Sources and Significance of Research Information and Data, Use of APA Citation Methodology (5% of the project grade)
Your final report is to be an executive-level financial report, directed to the CFO. This report should be about 8 double-spaced typewritten pages (without tables and graphs). Include suitable comparative, quantitative and qualitative analyses and conclude with a specific and supported recommendation on the projected financial viability of THE COMPANY THAT IS TO BE ANALYZED FOR THIS PROJECT (COMPANY SELECTED BY INSTRUCTOR) for the next several years.
Essential research data, financial calculations and other documentation as necessary to support your recommendation should be referred to in summary form in your report and attached in detail as enclosures.  All major sources should be referenced.  There is no set limit to the size of the enclosures, but it is recommended that only essential enclosures be attached. You should use references and bibliography to identify any remaining supporting documents you wish to include.
The Individual Research Report must be posted to the D2L Student Assignments as a Attachments are limited to a maximum two files in doc, docx., xls. xlsx., or rtf. formats. OTHER FORMATS ARE NOT ACCEPTABLE, will not be reviewed and graded.
If these formats are not available, use the following option:
File – Save As – in the bottom of the window for saving file you see “save as type” – choose type Rich Text Format for doc. file, and previous option of Excel for Excel file.
Pdf. files will not be accepted and graded.
All works must be Word processed. Handwritten and scanned work will not be accepted and graded.
This report is an individual effort and must be researched, developed and prepared by you.  All questions related to this assignment, should be referred to the mythical CFO (i.e., your instructor).
All works must be Word processed. Handwritten and scanned work will not be accepted and graded.
This report is an individual effort and must be researched, developed and prepared by you.  All questions related to this assignment, should be referred to the mythical CFO (i.e., your instructor).
*****************************************************
Evaluation Rubric for the Research Project.
An evaluation rubric is available for the research project. The evaluation rubric outlines the specific requirements and elements of the project. It is suggested that the rubric be used as a guideline for the content, preparation, and completion of the project.
The rubric will be used for the evaluation and grading of the final research project.
 
 

1. Financial statements analysis of the assigned company  (15%) Virtually no effort to develop financial statements analysis of the assigned company; not worthy of credit. Only  a superficial effort to develop financial statements analysis of the assigned company The project contains some financial statements analysis of the assigned company, but should be considerably more developed Good effort is made to develop financial statements analysis of the assigned company Excellent and very thorough development and articulation of financial statements analysis of the assigned company
2. Financial ratio trend analysis of the assigned company and industry comparatives. (15%) Virtually no effort to develop financial ratio trends analysis of the assigned company and industry comparatives;  not worthy of credit Minimal effort to develop financial ratio trends analysis of the assigned company and industry comparatives. Some effort made to develop financial ratio trends analysis of the assigned company and industry comparatives, however the result are not explained and analyzed. Good effort to develop financial ratio trends analysis of the assigned company and industry comparatives, the result are well explained and analyzed Excellent and successful effort to implement financial ratio trends analysis of the assigned company and industry comparatives; very clear linkages between financial retio results and  investment decisions and recommendations;
3. DuPont analysis of the assigned company. Compare with main competitor. (10%) Virtually no effort to develop DuPont analysis of the assigned company  not worthy of credit Minimal effort to develop DuPont analysis of the assigned company. Some effort made to develop DuPont analysis of the assigned company, however the result are not explained and analyzed. Good effort to develop DuPont analysis of the assigned company, the result are well explained and analyzed Excellent and successful effort to implement DuPont analysis of the assigned company very clear linkages between DuPont analysis and  investment decisions and recommendations;
4. Other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, etc. (10%)  Virtually no effort to develop the analysis of the other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations; unworthy of much credit Minimal effort to develop  analysis of the areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations Some effort made to analyze other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations but gaps are obvious Very good effort to  analyze other areas of financial performance: capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations Outstanding effort to to  analyze other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations
5. The evaluation of the assigned company’s stock performance for the last year. (20%) No effort to develop the  evaluation of the assigned company’s stock performance for the last year. Some effort made to develop evaluation of the assigned company’s stock performance for the last year, but analysis is very short and limited Good effort made to develop the evaluation of the assigned company’s stock performance for the last year,  however the result are not explained and analyzed. Good effort made to develop  the evaluation of the assigned company’s stock performance for the last year, the result are well explained and analyzed Excellent and accurate  evaluation of the assigned company’s stock performance for the last year; very clear linkages between stock performance results and  investment decisions and recommendations;
6.        The student developed specific recommendation, with supporting rationale, as to whether or not the assigned company’s recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment. (15%) Little or no effort to explain linkages between the assigned company’s  financial and stock performance  to warrant entering into a long-term commitment Some effort made to explain relationships of the assigned company’s  financial and stock performance to warrant entering into a long-term commitment, the analysis is poor and incomplete. Some effort made to explain relationships the assigned company’s  financial and stock performance to warrant entering into a long-term commitment, but there are significant gaps in the analysis Very good effort made to explain relationships the assigned company’s recent trend in financial and stock performance to recommend entering into a long-term commitment.  There are no significant gaps in the analysis Outstanding and very thorough effort to explain relationships the assigned company’s recent trend in financial and stock performance. The results are sufficient to warrant entering into a long-term commitment.
PRESENTATION OF PAPER AND WRITING        
7. Organization, Format and Presentation of Paper including Introduction, Body, and Summary (4%) There appears to be no logical organization of the paper’s contents Presentation has numerous blemishes and there may be a general lack of organization Paper has some blemishes in presentation and may have some weaknesses in organization Paper is neatly presented without major blemishes and is generally well-organized Paper is extremely neat and has no blemishes; its organization is outstanding and very easily followed
8. Use of Tables, Figures and Other Graphics to Summarize and Support Analysis Presented in the Paper (3%) Use of tables, figures and other graphics in support of paper is unworthy of credit Tables, figures and other graphics do not provide much support for the paper; they may have inadequate labels; and numbering sequence is inadequate Tables, figures and other graphics provide marginal support for the paper; some labels may be incomplete; there may be some problems with the numbering sequence Tables, figures and other graphics are descriptive and provide solid support for the paper; they are properly labeled and numbered Tables, figures and other graphics are very descriptive and provide exceptionally strong support for the paper; there are no errors in labels or in the numbering sequence
9. Logical and Smooth Flowing Transitions and Relationships Among Sections of the Written Report (3%) No effort made to provide appropriate transitions Paper makes minimal use of transitions Some transitions used in paper Good transitions used in most sections Very effective transitions are used throughout the written analysis
RESEARCH APPROACH AND USE OF APPROPRIATE PROFESSIONAL SOURCES OF INFORMATION AND DATA  
10. Research Sources and Significance of Research Information and Data, Use of APA Citation Methodology, use of double spaced, with one-inch margins, and use 12-point Times New Roman font. (5%) No obvious effort to use professional and supporting research sources Little effort made to use appropriate professional and supporting research sources which may be accompanied by inadequate documentation Some effort to identify and use appropriate and professional and supporting research sources with some documentation Good effort to identify and use appropriate and professional and supporting research sources; appropriate and professional use of APA documentation, use of double spaced, with one-inch margins, and use 12-point Times New Roman font. Excellent and successful effort to identify and use appropriate and professional research sources including Library Search Engines, Websites, S&P, SEC, stock exchanges, Morningstar, NYSE, Competitors, 10K Report, analyst reports, news releases, articles, etc.; appropriate and accurate documentation

 
 
Project-Related Questions
All questions related to this assignment should be referred to me through the WebTycho classroom discussion or the Project Conference so all students can benefit from the questions and answers.
As these are new and challenging assignments for many of you, your questions may well serve to better define what I really want and expect, which can lead to better reports

Capital Budgeting

Capital Budgeting

Capital Budgeting Techniques

 

Capital Budgeting Techniques

As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities.  You have agreed to provide a detailed report illustrating the use of several techniques for evaluating capital projects including the weighted average cost of capital to the firm, the anticipated cash flows for the projects, and the methods used for project selection.  In addition, you have been asked to evaluate two projects, incorporating risk into the calculations.

You have also agreed to provide an 8-10 page report, in good form, with detailed explanation of your methodology, findings, and recommendations.

Company Information

Wheel Industries is considering a three-year expansion project, Project A.  The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the project will generate additional revenues of $1.2 million per year before tax and has additional annual costs of $600,000.  The Marginal Tax rate is 35%.

Required:

  1. Wheel has just paid a dividend of $2.50 per share. The dividends are expected to grow at a constant rate of six percent per year forever. If the stock is currently selling for $50 per share with a 10% flotation cost, what is the cost of new equity for the firm? What are the advantages and disadvantages of using this type of financing for the firm?
  2. The firm is considering using debt in its capital structure. If the market rate of 5% is appropriate for debt of this kind, what is the after tax cost of debt for the company? What are the advantages and disadvantages of using this type of financing for the firm?
  3. The firm has decided on a capital structure consisting of 30% debt and 70% new common stock. Calculate the WACC and explain how it is used in the capital budgeting process.
  4. Calculate the after tax cash flows for the project for each year. Explain the methods used in your calculations.
  5. If the discount rate were 6 percent calculate the NPV of the project. Is this an economically acceptable project to undertake? Why or why not?
  6. Now calculate the IRR for the project. Is this an acceptable project? Why or why not? Is there a conflict between your answer to part C? Explain why or why not?

 

Wheel has two other possible investment opportunities, which are mutually exclusive, and independent of Investment A above.  Both investments will cost $120,000 and have a life of 6 years. The after tax cash flows are expected to be the same over the six year life for both projects, and the probabilities for each year’s after tax cash flow is given in the table below.

Investment B   Investment C
Probability After Tax

Cash Flow

  Probability After Tax

Cash Flow

0.25 $20,000   0.30 $22,000
0.50   32,000   0.50   40,000
0.25   40,000   0.20   50,000

 

  1. What is the expected value of each project’s annual after tax cash flow? Justify your answers and identify any conflicts between the IRR and the NPV and explain why these conflicts may occur.
  2. Assuming that the appropriate discount rate for projects of this risk level is 8%, what is the risk-adjusted NPV for each project? Which project, if either, should be selected? Justify your conclusions.

.

Detailed overview of a Exxon

Fin 534 Assignment 1 Exxon

Submit your analysis in the form of a 6-8 page

 

 

Provide a detailed overview of a Exxon. This should be one to two (1-2) pages.

 

 

Evaluate Exxon’s vulnerability to current financial threats such as a recession, higher interest rates, and global competition.

 

 

Based on the financial trends of Exxon, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction.

 

 

Cite at least five (5) quality references.

The Walt Disney Company

The Walt Disney Company

5 pages MAX, financial stats based of The Walt Disney Company

-The paper is expected to be a lot of diagrams, does not have to be 15 written pages.

 

Instructions:

  1. For the fiscal years 2013 and 2014, review the financial statements (annual reports) of the company you selected for the project. Identify key the elements of the following financial reports:
    1. Balance Sheet: Liquidity, Debt versus Equity, Market Value Versus Book Value;
    2. Income Statement: Income, Earnings and Dividends per Share, Noncash Items, Taxes;
    3. Statement of Cash Flows: Operating Cash Flow, Capital Spending, Change in Net Working Capital, Cash flow to Creditors and Stockholders, Sources and Uses of Cash.
  2. Measuring Corporate Performance – calculate the company’s financial ratios (use Table 4.3 on page 127 as a guide). Perform peer group analysis: compare the company’s ratios either to the industry sector or to the company’s major competitor. Interpret your findings.
  3. Find estimates made by stock analysts for revenue and growth for the next 3 years for the company and compare them to benchmarks: sector, industry and the S&P 500 index.
  4. Calculate the firm’s internal growth rate (review Chapter 8, p. 259) and discuss the determinants for growth.
  5. Value the company’s common stock and bonds. You can find information on the bonds issued by the company in the WSJ, among others. By using the yield on a 10-year T-bill as the risk free rate, determine the individual rate of return required by you as an investor (review the concept in Ch.6). Explain the reason(s) why or why not you would invest in the company’s securities (stocks and bonds).
  6. Find the stock’s beta coefficient and calculate the cost of the company’s common equity by using the CAPM. Use the return on the S&P 500 as proxy. Calculate the company’s after-tax cost of debt and the cost of its preferred stock (if any). Determine the company’s weighted average cost of capital (WACC).
  7. Discuss the dividend policy, if any, of the corporation and describe its dividend payment procedures.
  8. Analyze the company’s working capital management by calculating its cash conversion cycle (CCC). Perform the same calculation for the company’s major competitor. Compare and contrast the peer company’s cash conversion cycle with the company you selected. Suggest ways to improve your company’s CCC.

roles of financial intermediaries, and banks

write 400–600 words that respond to the following questions with your thoughts, ideas, and comments.

 

 

 

Locate 2 transactions in recent financial news to illustrate and explain the roles of financial intermediaries, and banks in particular, in these transactions. Furthermore, explain how these transactions would occur without a financial intermediary.

Capital Budgeting Techniques

Capital Budgeting Techniques

As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities.  You have agreed to provide a detailed report illustrating the use of several techniques for evaluating capital projects including the weighted average cost of capital to the firm, the anticipated cash flows for the projects, and the methods used for project selection.  In addition, you have been asked to evaluate two projects, incorporating risk into the calculations.

You have also agreed to provide an 8-10 page report, in good form, with detailed explanation of your methodology, findings, and recommendations.

Company Information

Wheel Industries is considering a three-year expansion project, Project A.  The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the project will generate additional revenues of $1.2 million per year before tax and has additional annual costs of $600,000.  The Marginal Tax rate is 35%.

Required:

  1. Wheel has just paid a dividend of $2.50 per share. The dividends are expected to grow at a constant rate of six percent per year forever. If the stock is currently selling for $50 per share with a 10% flotation cost, what is the cost of new equity for the firm? What are the advantages and disadvantages of using this type of financing for the firm?
  2. The firm is considering using debt in its capital structure. If the market rate of 5% is appropriate for debt of this kind, what is the after tax cost of debt for the company? What are the advantages and disadvantages of using this type of financing for the firm?
  3. The firm has decided on a capital structure consisting of 30% debt and 70% new common stock. Calculate the WACC and explain how it is used in the capital budgeting process.
  4. Calculate the after tax cash flows for the project for each year. Explain the methods used in your calculations.
  5. If the discount rate were 6 percent calculate the NPV of the project. Is this an economically acceptable project to undertake? Why or why not?
  6. Now calculate the IRR for the project. Is this an acceptable project? Why or why not? Is there a conflict between your answer to part C? Explain why or why not?

 

Wheel has two other possible investment opportunities, which are mutually exclusive, and independent of Investment A above.  Both investments will cost $120,000 and have a life of 6 years. The after tax cash flows are expected to be the same over the six year life for both projects, and the probabilities for each year’s after tax cash flow is given in the table below.

Investment B
Investment C
Probability After Tax

Cash Flow

  Probability After Tax

Cash Flow

0.25 $20,000   0.30 $22,000
0.50   32,000   0.50   40,000
0.25   40,000   0.20   50,000

 

  1. What is the expected value of each project’s annual after tax cash flow? Justify your answers and identify any conflicts between the IRR and the NPV and explain why these conflicts may occur.
  2. Assuming that the appropriate discount rate for projects of this risk level is 8%, what is the risk-adjusted NPV for each project? Which project, if either, should be selected? Justify your conclusions.

.

 

“Financial Planning and Agency Conflicts”

FIN 534 Week 7 Discussion

“Financial Planning and Agency Conflicts”  Please respond to the following:

  • * From the scenario, cite your forecasting conclusions that support TFC’s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario could become a roadblock to your conclusions. Provide a rationale for your response.
  • * From the mini case, recommend two (2) desired characteristics of a board of directors. Provide support for your response, citing the ways in which these characteristics usually lead to effective corporate governance.

"Financial Planning and Agency Conflicts"

FIN 534 Week 7 Discussion

“Financial Planning and Agency Conflicts”  Please respond to the following:

  • * From the scenario, cite your forecasting conclusions that support TFC’s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario could become a roadblock to your conclusions. Provide a rationale for your response.
  • * From the mini case, recommend two (2) desired characteristics of a board of directors. Provide support for your response, citing the ways in which these characteristics usually lead to effective corporate governance.

Annual Reports of the Coca-Cola® Company and Wal-Mart®

Discussion Topic: Annual Reports of the Coca-Cola® Company and Wal-Mart® For this week’s Discussion, you will review the annual reports of the Coca-Cola Company and Wal-Mart, two of the largest publicly traded firms in America. Coca-Cola and Wal-Mart Rece

Discussion Topic: Annual Reports of the Coca-Cola® Company and Wal-Mart® For this week’s Discussion, you will review the annual reports of the Coca-Cola Company and Wal-Mart, two of the largest publicly traded firms in America. Coca-Cola and Wal-Mart Receivable Comparison Compute and compare the accounts receivable turnover ratios for Coca-Cola and Wal-Mart. Indicate all numbers you used to calculate the ratio. What constitutes a “reasonable” accounts receivable turnover ratio? What characteristic(s) of these companies would indicate that these ratios are reasonable? (Back up your answers with facts and cite website and text references used.) An article recently appeared in the Wall Street Journal indicating that companies are selling their receivables at a record rate. Why might Coca-Cola and Wal-Mart sell their receivables? Coca-Cola Go tohttp://us.coca-cola.com/ to visit the website. You will need to find the financial information and the annual reports. At the site, rest your mouse over Coke in the USA (top of the page); on the drop-down menu, select “About The Coca-Cola Company,” then “Investors,” and finally “Financial Reports & Information.” Choose the most current Annual Report. Note in the Discussion Board which year’s information you used. You will need to scroll through the annual report to find the information that you need to answer the questions. Remember what you learned in Accounting I about financial statements to help you find what you need. Wal-Mart Go tohttp://www.walmart.com/ to go to the website. Remember what you have learned in Accounting I about financial statements to help you find what you need. Follow the link above to Wal-Mart’s website. Scroll to the bottom of the page. Under the “Get to know us” column, select the link “Investors.” On the left-hand page, Select “Annual Reports.” Select the “2014 Annual Report” PDF link. Respond using the information from the website visits. Take the time to review the responses of your classmates and provide your feedback.

The Time Value of Money

Assignment 2: LASA 1—The Time Value of Money

By Wednesday, August 12, 2015 submit a 4-5 page report based on the following problem:

Mary has been working for a university for almost 25 years and is now approaching retirement. She wants to address several financial issues before her retirement and has asked you to help her resolve the situations below. Her assignment to you is to provide a 4-5 page report, addressing each of the following issues separately. You are to show all your calculations and provide a detailed explanation for each issue.

Issue A:

For the last 19 years, Mary has been depositing $500 in her savings account , which has earned 5% per year, compounded annually and is expected to continue paying that amount. Mary will make one more $500 deposit one year from today. If Mary closes the account right after she makes the last deposit, how much will this account be worth at that time?

Issue B:

Mary has been working at the university for 25 years, with an excellent record of service. As a result, the board wants to reward her with a bonus to her retirement package. They are offering her $75,000 a year for 20 years, starting one year from her retirement date and each year for 19 years after that date. Mary would prefer a one-time payment the day after she retires. What would this amount be if the appropriate interest rate is 7%?

Issue C:

Mary’sreplacement is unexpectedly hired away by another school, and Mary is asked to stay in her position for another three years. The board assumes the bonus should stay the same, but Mary knows the present value of her bonus will change. What would be the present value of her deferred annuity?

Issue D:

Mary wants to help pay for her granddaughter Beth’s education. She has decided to pay for half of the tuition costs at State University, which are now $11,000 per year. Tuition is expected to increase at a rate of 7% per year into the foreseeable future. Beth just had her 12th birthday. Beth plans to start college on her 18th birthday and finish in four years. Mary will make a deposit today and continue making deposits each year until Beth starts college. The account will earn 4% interest, compounded annually. How much must Mary’s deposits be each year in order to pay half of Beth’s tuition at the beginning of each school each year?

 

Assignment 2 Grading Criteria
Maximum Points
Calculated the compounded interest over 20 years and evaluated the value of the savings account upon closing. (CO 1)
32
Calculated the bonus payout over 20 years vs. a one time payout with interest and distinguished which bonus option would be better for the client. (CO 1)
32
Calculated the present value of the bonus and analyzed the difference in bonus for the client. (CO 2)
32
Analyzed the tuition costs for the client and determined what the future costs will be and determined how these funds can be accumulated over time. (CO 4)
60
Written Components: Organization, usage and mechanics, APA elements, style
44
Total:

ole of metrics for entrepreneurship–based initiatives

FINC625 Forum wk2

Discuss the role of metrics for entrepreneurship–based initiatives. Please note the underlying purpose of such measurements. Your response should be 250 words.  

View Full Description

 Make sure you are using credible sources in your discussions and assignments. Scholarly journals are the preferred source of credible/quality references. These consist of peer-reviewed articles published in academic journals related to the field, which are found via our Library APUS.  Websites such as Investopedia, ask.com, answers.com, or dictionary-type of websites limit the insight to the topics. Wikipedia is not acceptable as it is not a reliable, credible source of reference.

strengths and weaknesses of key components within business plans

FINC625 Forum wk3

In 250 words, evaluate and discuss the strengths and weaknesses of key components within business plans. Please read full description

 

 

 

 Make sure you are using credible sources in your discussions and assignments. Scholarly journals are the preferred source of credible/quality references. These consist of peer-reviewed articles published in academic journals related to the field, which are found via our Library APUS.  Websites such as Investopedia, ask.com, answers.com, or dictionary-type of websites limit the insight to the topics. Wikipedia is not acceptable as it is not a reliable, credible source of reference.

benefits gained from receiving capital investments and positive valuations

FINC625 Forum wk5

In 250 words, what are the benefits gained from receiving capital investments and positive valuations? In your opinion, which benefit is the most important?

 

 Make sure you are using credible sources in your discussions and assignments. Scholarly journals are the preferred source of credible/quality references. These consist of peer-reviewed articles published in academic journals related to the field, which are found via our Library APUS.  Websites such as Investopedia, ask.com, answers.com, or dictionary-type of websites limit the insight to the topics. Wikipedia is not acceptable as it is not a reliable, credible source of reference.

key concepts involved with the planning and management of securities

FINC625 Forum wk6

In 250 words, evaluate the key concepts involved with the planning and management of securities. In your opinion, which concept is the most important?

 

 Make sure you are using credible sources in your discussions and assignments. Scholarly journals are the preferred source of credible/quality references. These consist of peer-reviewed articles published in academic journals related to the field, which are found via our Library APUS.  Websites such as Investopedia, ask.com, answers.com, or dictionary-type of websites limit the insight to the topics. Wikipedia is not acceptable as it is not a reliable, credible source of reference.

steps necessary for measuring new business venture performance

FINC625 wk2

Address the steps necessary for measuring new business venture performance.

  • Write a paper of 500 words, typewritten in double-spaced format (Arial 12-point font or Times New Roman styles), page margins Top, Bottom, Left Side and Right Side = 1 inch, with reasonable accommodation being made for special situations and online submission variances.
  • Prepare this assignment according to the APA guidelines, including a title page, an introduction, and a conclusion. An abstract is not required. Cite in text and include a References section
  • In your report, make certain that you include at least two outside references from search engines or scholarly sources from the APUS Online Library.
  • Your paper will be automatically submitted to Turnitin in the assignment dropbox. Originality reports will be returned to the faculty and student. Make sure that your Similarity Index does not exceed 15%.

plan for retirement

  • Bob and Lisa are both married, working adults. They both plan for retirement and consider the $2,000 annual contribution a must.

    First, consider Lisa’s savings. She began working at age 20 and began making an annual contribution of $2,000 at the first of the year beginning with her first year. She makes 13 contributions. She worked until she was 32 and then left full time work to have children and be a stay at home mom. She left her IRA invested and plans to begin drawing from her IRA when she is 65.

    Bob started his IRA at age 32. The first 12 years of his working career, he used his discretionary income to buy a home, upgrade the family cars, take vacations, and pursue his golfing hobby. At age 32, he made his first $2,000 contribution to an IRA, and contributed $2,000 every year up until age 65, a total of 33 years / contributions. He plans to retire at age 65 and make withdrawals from his IRA.

    Both IRA accounts grow at a 7% annual rate. Do not consider any tax effects.

    • Write a two to three (2-3) paragraph summary in which you:

      Create a chart summarizing the details of the investment for both Bob and Lisa.

    • Explain the results in terms of time value of money.

Goodman Industries stock

FIN 534 Week 6 Homework Set 3

FIN 534 – Homework Set#3

 

Directions: Answer the following questions on a separate document. Explain how you reached theansweror show your work if a mathematical calculation is needed, or both. Submit your assignment usingtheassignment link in the course shell. This homework assignment is worth 100points.

 

Use the following information for questions 1 through4:

The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with theMarketIndex, are shown below. Stock prices are reported for December 31 of each year, and dividendsreflectthose paid during the year. The market data are adjusted to includedividends.

 

GoodmanIndustries                                                                  LandryIncorporated                                                                   MarketIndex

 

Year StockPrice Dividend StockPrice Dividend IncludesDividends
2013 $25.88 $1.73 $73.13 $4.50 17495.97
2012 22.13 1.59 78.45 4.35 13178.55
2011 24.75 1.50 73.13 4.13 13019.97
2010 16.13 1.43 85.88 3.75 9651.05
2009 17.06 1.35 90.00 3.38 8403.42
2008 11.44 1.28 83.63 3.00 7058.96

 

  1. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index,andthen calculate average annual returns for the two stocks and the index. (Hint: Remember,returnsare calculated by subtracting the beginning price from the ending price to get the capital gainorloss, adding the dividend to the capital gain or loss, and then dividing the result by thebeginningprice. Assume that dividends are already included in the index. Also, you cannot calculatetherate of return for 2008 because you do not have 2007data.)

 

  1. Calculate the standard deviations of the returns for Goodman, Landry, and the MarketIndex.(Hint: Use the sample standard deviation formula given in the chapter, which corresponds totheSTDEV function inExcel.)

 

  1. What dividends do you expect for Goodman Industries stock over the next 3 years if youexpectyou expect the dividend to grow at the rate of 5% per year for the next 3 years? In otherwords,calculate D1, D2, and D3. Note that D0 =$1.50.

 

  1. The risk-free rate on long-term Treasury bonds is 6.04%. Assume that the market risk premiumis5%. Assume that Goodman Industries’ stock, currently trading at $27.05, has a required returnof13%. You will use this required return rate to discount dividends. If you plan to buy the stock,holdit for 3 years, and then sell it for $27.05, what is the most you should pay forit?

 

 

Fraud, Internal Controls, and Technology

Fraud, Internal Controls, and Technology

Fraud, Internal Controls, and Technology

Write a paper of no more than 1,050 words describing the two types of fraud, reasons why fraud occurs, and how internal controls, technology, and auditing can help deter and detect fraud.

Provide two examples of technology and internal controls.

Format your paper consistent with APA guidelines.

Corporate Responsibility and Marketing Strategies

Assignment 1:

ASSIGNMENT 1 BUS 508

Students, please view the “Submit a Clickable Rubric Assignment” in the Student Center.

Instructors, training on how to grade is within the Instructor Center.

Assignment 1: Corporate Responsibility and Marketing Strategies

Due Week 3 and worth 240 points

Use the Internet to research the Apple Corporation, its current position and reputation regarding ethical and social responsibility, and the strategies that it currently employs to market its products.

Write a six to eight (6-8) page paper in which you:

  1. Examine Apple’s current position on the company’s ethical and social responsibilities, and determine whether or not the company has met these responsibilities. Provide two (2) examples that support your position.
  2. Determine the impact that the publication of ethics and social responsibilities violations made by Apple’s suppliers has had on Apple’s reputation. Support your response with examples of the impact in question.
  3. Suggest two (2) methods that Apple can utilize to ensure that its suppliers adhere to wage and benefits standards going forward. Justify your response.
  4. Determine whether or not you believe that Apple’s customers would be willing to pay more for its products if Apple had to increase selling prices in order to provide better wages and benefits for suppliers’ workers. Provide a rationale for your position.
  5. Analyze Apple’s current overall marketing strategy. Recommend two (2) actions that Apple can take in order to improve its competitive advantage in the global marketplace. Support your response with examples of instances where your recommendations yielded the desired results.
  6. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Examine the private enterprise systems, drivers of change on the system, ethical and social responsibilities of business, and the requirements for success in today’s business environment.
  • Analyze the factors that drive supply and demand, different types of market structures in a free enterprise system, and factors of stability in a nation’s economy.
  • Use technology and information resources to research issues in contemporary business.
  • Write clearly and concisely about contemporary business using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric found here.

ASSIGNMENT 1 BUS 508

Students, please view the “Submit a Clickable Rubric Assignment” in the Student Center.

Instructors, training on how to grade is within the Instructor Center.

Assignment 1: Corporate Responsibility and Marketing Strategies

Due Week 3 and worth 240 points

Use the Internet to research the Apple Corporation, its current position and reputation regarding ethical and social responsibility, and the strategies that it currently employs to market its products.

Write a six to eight (6-8) page paper in which you:

  1. Examine Apple’s current position on the company’s ethical and social responsibilities, and determine whether or not the company has met these responsibilities. Provide two (2) examples that support your position.
  2. Determine the impact that the publication of ethics and social responsibilities violations made by Apple’s suppliers has had on Apple’s reputation. Support your response with examples of the impact in question.
  3. Suggest two (2) methods that Apple can utilize to ensure that its suppliers adhere to wage and benefits standards going forward. Justify your response.
  4. Determine whether or not you believe that Apple’s customers would be willing to pay more for its products if Apple had to increase selling prices in order to provide better wages and benefits for suppliers’ workers. Provide a rationale for your position.
  5. Analyze Apple’s current overall marketing strategy. Recommend two (2) actions that Apple can take in order to improve its competitive advantage in the global marketplace. Support your response with examples of instances where your recommendations yielded the desired results.
  6. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Examine the private enterprise systems, drivers of change on the system, ethical and social responsibilities of business, and the requirements for success in today’s business environment.
  • Analyze the factors that drive supply and demand, different types of market structures in a free enterprise system, and factors of stability in a nation’s economy.
  • Use technology and information resources to research issues in contemporary business.
  • Write clearly and concisely about contemporary business using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric found here.

 

Multinational Corporation Expansion

ITB-400 International banking and finances paper

Assignment 1: Multinational Corporation Expansion

Due Week 4 and worth 300 points

Imagine that you are a senior business manager for a U.S.-based multinational company. You have been informed by your supervisor that your Company needs to consider expanding into a new international market to seek new opportunities.

To get started, you must decide the following:
  • Select a publicly-traded Multinational Corporation (MNC) with which you are familiar. Chipoltle
  • Select a new international market and a country this company currently has not explored and should consider. Chile
Write a 8-10 page paper in which you:
  1. Analyze how each of the three major dimensions of international finance can affect your possible venture of your MNC in your chosen new international market, including potential opportunities and risks for each dimension.
  2. Examine the economic trends and impact of globalization in the chosen market and determine which of those emerging factors have potential for disruption that could affect operations.
  3. Assess whether the country you have chosen maintains a fixed or a flexible exchange system and discuss how this monetary system will affect your MNC. Provide a strong rational for possible implications and drawbacks of the existing system.
  4. Determine how the balance of payments will support the management of your MNC and explain how deficits and surpluses found within the country you have chosen can positively or negatively affect operations of your company.
  5. Analyze how the foreign exchange market your company is considering entering can impact international business operations. Examine key foreign market participants and provide recommendations of possible key financing opportunities for your MNC.
  6. Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources
Your assignment must follow these formatting requirements:
  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
  • Analyze the current trends and impact of globalization on international financial management.
  • Assess the basic functioning of the current arrangements of flexible exchange systems that dominate the international monetary system and explain the impact on business operations.
  • Interpret the balance of payments accounts, and summarize key information to support financial planning and the strategic management of international business.
  • Analyze the foreign exchange markets to anticipate fluctuations, minimize the negative impact on international business operations, and identify financing opportunities.
  • Use technology and information resources to research issues in international banking and finance.
  • Write clearly and concisely about international banking and finance using proper writing mechanics.

survey on banking crisis and bank competition

This is for creating a questionnaire/survey for bank officials to answer, to try and see what their opinions and suggestions are about competition in the banking industry and its effects on banking crisis, the survey should follow a well-organized and precise structure. Do research on the top styles and structures of surveys and construct it. I will email the survey to bank officials.
• At least 60 question
• Do research on the top survey structures and styles and improvise on which to choose, or use a few of them thus becoming a hybrid structure
• Do research on what questions should be asked in this specific subjects
• Look for questions that would have great significance.
• Look for questions that would fill any gaps suggested by scholars in the banking competition banking crisis phenomena.
• Make the survey interesting in way to get the respondents attention and compliance.
• Get the respondents to feel an interaction with the survey when answering it.
• 7 Questions about the Lerner index read about it on this subject
• 7 Questions about the concentration ratios iam using read about it on this subject
• This is just to make the survey respondents have an idea on what the survey is about and what the concerns im raising like an introduction or an executive report at the begining. My dissertation is on financial stability I will explain exactly what its about. Iam defining financial stability on the probability of a banking crisis occurring, and iam using 3 variables and they are the Lerner Index and the 2 Concentration Ratios( and they are CR1 and CR3)
These methods include the Lerner index and 2 Concentration Ratios (CR1 and CR3). CR1 and CR3 will be calculated as follows:
CR1 = the market share of the largest bank =
CR3 = the market share of the 3 largest banks combined =
An important method will be the survey method. This will involve interviewing various representatives especially those working in banks in order to get a first-hand opinion of how bank competition actually affects financial stability. In instances where I will not be in a position to present the questionnaires on a face-to-face basis, I will have to email them to the respondents. In order to make the surveys more valid, I will have to structure the questions properly and precisely. This will mainly involve asking open-ended questions, as these types of questions have a greater likelihood of generating comprehensive answers to the questions. The survey method can present numerous advantages during the research process. For example, it is a relatively cost efficient technique and can also help in getting statistical data for further analysis.

Finance homework

800–1,000 words
Choose a public company, and present findings from your financial analysis in a report. Your report must include the following:

  • Give a description of the operating profit margin.
  • Give a description of the asset turnover.
  • Give a description of the equity multiplier.
  • Give a description of the return on equity.
  • Give a description of the return on assets.
  • Calculate the operating profit margin. Explain your answer.
  • Calculate the asset turnover. Explain your answer.
  • Calculate the equity multiplier. Explain your answer.
  • Calculate the return on assets. Explain your answer.
  • Calculate the return on equity. Explain your answer.
  • What does the DuPont analysis describe about the company chosen?
  • Which ratio demonstrates the company’s weakest area? Explain your answer.

tax planning and research

Patel owned all the stock of ParentCo. ParentCo owned all the stock in Subby1 and Subby2, two subsidiary corporations. The three corporations have filed a consolidated, calendar year tax return since they were formed in 1998. Patel decided that the corporate income tax was too much of a burden on the corporations, and restructured them in the following manner: Subby1 merged with ParentCo. Legally, Subby1 was the survivor. Sixteen hours (but on the same day) after the merger, Subby1 distributed the stock of Subby2 to Patel in a tax-free reorganization. This happened on Nov. 1. The companies became S-corporations on January 1 of the following year. Subby1 suffered a loss in the period Nov. 2–Dec. 31. Can this loss be included on the final consolidated return?
write memo like in example

Finance homework help

A new client, Dr. Bueller, has demonstrated a particular thirst for knowledge of stocks and bonds and has asked that you put together an example of these investments to illustrate how they work.
Calculate the returns on the following investments (include the US$ and percent) to illustrate how they work.

  1. A stock that does not pay a dividend of which you buy 100 shares for $25.00 per share and sell the 100 shares for $27.50 a year later. You pay the $50.00 commission when you sell the securities.
  2. A 5-year bond that you purchase for US$1,000 pays a 6% yearly rate. It is paid semiannually, and you hold the bond until maturity.
  3. The current yield on a bond that is priced at $89 has a 6% coupon.
  4. The yield-to-maturity (YTM) on a 7.25% ($1,000 par value) bond that has 10 years remaining to maturity, currently trading in the market at $825.
  5. The holding period return (HPR) for 1,000 shares of a no-load mutual fund currently selling at a NAV of $11, purchased a year ago at a NAV of $10.50/share, including $300 of distributed investment income dividends and capital gains dividends of $350.

After you have shared some basic information with Dr. Bueller about the different types of investments, he also wants you to explain the differences between the different types of bonds—from investment grade to high yield. Explain the various ratings that bonds can get and explain the two major rating agencies.
Assignment Guidelines

  • Perform the 5 calculations listed in the Assignment Description.
    • You must show all of your work as well as any formulas that you used.
    • If you used Excel to arrive at your answers, then you must provide an explanation of your methodology.
  • Next, answer the following questions for Dr. Bueller:
    • What are the different types of investments a person can make?
    • What are the differences between the various types of bonds?
    • What do bond ratings indicate, and what 2 major agencies are in charge of assigning these ratings?
  • Compile your calculations, Excel tables and explanations (if applicable), and your answers to the 3 questions above into a single Word document.

Your submitted assignment must include the following:

  • A 3–4-page Word document (body of paper) that contains your 5 assignment calculations, any work you performed in Excel along with your explanations, and your answers to the 3 questions listed in the Assignment Guidelines.

Grading
You will be graded on the accuracy of your calculations and answers, the completeness of your work, and your demonstrated understanding of financial calculations, various investment vehicles, and the fundamentals of investment bonds.

Financial Statement Analysis

Select one (1) of the following publicly traded health care organizations: Universal Health Services (NYSE: UHS) or Health Management Associates (NYSE: HMA).
Suppose you are a newly appointed CFO of your chosen health care organization. One of your first tasks is to conduct an internal financial analysis of the organization. Conduct a brief financial analysis and review of the chosen company’s financial statements for at least three (3) consecutive years. After conducting the analysis, interpret the data contained within the statements.
Write a three to four (3-4) page paper in which you:

  1. Based on your review of the financial statements, suggest a key insight about the financial health of the company. Speculate on the likely reaction to the financial statements from various stakeholder groups (employee, investors, shareholders). Provide support for your rationale.
  2. Identify the current industry trend that has the most significant impact on your chosen organization’s financial performance. Indicate the trend’s impact on the financial performance of the organization. As the CFO, suggest at least one (1) way that you might minimize the impact of the trend on the organization.
  3. As the CFO, suggest one (1) key strategy that you might use in order to improve the financial performance of the organization. Recommend an approach to implement the suggested strategy. Provide support for your recommendation.
  4. Use at least four (4) quality academic resources. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Financial Management

New Economy Transport (A)
 
The New Economy Transport Company (NETCO) was formed in 1959 to carry cargo and passengers between ports in the Pacific Northwest and Alaska. By 2012 its fleet had grown to four vessels, including a small dry-cargo vessel, the Vital Spark.
 
The Vital Spark is 25 years old and badly in need of an overhaul. Peter Handy, the finance director, has just been presented with a proposal that would require the following expenditures:
 
 

Overhaul engine and generators $340,000
Replace radar and other electronic equipment 75,000
Repairs to hull and superstructure 310,000
Painting and other repairs  95,000
$820,000

 
Mr. Handy believes that all these outlays could be depreciated for tax purposes in the seven-year MACRS class.
 
NETCO’s chief engineer, McPhail, estimates the postoverhaul operating costs as follows:
 
 

Fuel $ 450,000
Labor and benefits 480,000
Maintenance 141,000
Other  110,000
$1,181,000

 
These costs generally increase with inflation, which is forecasted at 2.5% a year.
 
The Vital Spark is carried on NETCO’s books at a net depreciated value of only $100,000, but could probably be sold “as is,” along with an extensive inventory of spare parts, for $200,000. The book value of the spare parts inventory is $40,000. Sale of the Vital Spark would generate an immediate tax liability on the difference between sale price and book value.
 
The chief engineer also suggests installation of a brand-new engine and control system, which would cost an extra $600,000.16 This additional equipment would not substantially improve the Vital Spark‘s performance, but would result in the following reduced annual fuel, labor, and maintenance costs:
 
 

Fuel $ 400,000
Labor and benefits 405,000
Maintenance 105,000
Other  110,000
$1,020,000

Overhaul of the Vital Spark would take it out of service for several months. The overhauled vessel would resume commercial service next year. Based on past experience, Mr. Handy believes that it would generate revenues of about $1.4 million next year, increasing with inflation thereafter.
But the Vital Spark cannot continue forever. Even if overhauled, its useful life is probably no more than 10 years, 12 years at the most. Its salvage value when finally taken out of service will be trivial.
NETCO is a conservatively financed firm in a mature business. It normally evaluates capital investments using an 11% cost of capital. This is a nominal, not a real, rate. NETCO’s tax rate is 35%.
QUESTION

  1. Calculate the NPV of the proposed overhaul of the Vital Spark, with and without the new engine and control system. To do the calculation, you will have to prepare a spreadsheet table showing all costs after taxes over the vessel’s remaining economic life. Take special care with your assumptions about depreciation tax shields and inflation.

Finance Homework

Resource:  Financial Statements for the company assigned by your instructor in Week 2.Company is American family Insurance Group
 
Review the assigned company’s financial statements from the past three years.
 
Calculate the financial ratios for the assigned company’s financial statements, and then interpret those results against company historical data as well as industry benchmarks:
 

  • Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).
  • Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.

 
Write a 500 to 750 word summary of your analysis.
 
Show financial calculations where appropriate.

Finance homework

  1. Please respond to the following:

Starting with your current situation, what must you do to ensure an annual retirement income of $75,000 starting at age 65?  Make sure that you submit calculations that support the conclusions (you may use the Excel retirement calculators that are provided, online retirement calculators, or develop you own Excel solution).
.B. What are the advantages and disadvantages of a call provision from the viewpoints of both a firm and its bondholders?  If you were the CEO of a firm, would you recommend a call provision for a new bond issue?  Why or why not?  Can you identify a recent bond issue that has a call provision fund?
.C. From the Scenario and e-Activity, recommend two (2) bonds that you believe TFC should invest in, and provide rationale for your recommendations?  Make sure that you identify the issuers of the bonds, the coupon rates, the maturity dates, the yields to maturity, the present prices of the bonds, etc.?

Financial Reporting homework

US GAAP follows the Historical Cost Concept in valuing the cost of long-term assets. Explain this principle and how it compares to the standards used in the reporting of long-term assets under International Financial Reporting Standards (IFRS). If there is a convergence of standards, which method do you believe should be used and why?

Weight vs Mileage

Can anyone answer these questions in their own words please.
1-According to the transformed model of the association
between weight and mileage, which will save
you more gas: getting rid of the 50 pounds of junk
that you leave in the trunk of your compact car or
removing the 50-pound extra seat from an SUV?
 
2- A company tracks the level of sales at retail outlets
weekly for 36 weeks. During the first 12 weeks, a fixed
level of advertising was used each week to draw in
customers. During the second 12 weeks, the level of
advertising changed. During the last 12 weeks, a third
level of advertising was used. What does the SRM have
to say about the average level of sales during these
three periods? (Treat sales as Y and advertising as X
and think of the data as 36 weeks of information.)
 
What business decision might be made as a result of this calculation?
 
3-Supervisors of an assembly line track the output of
the plant. One tool that they use is a simple regression
of the count of packages shipped each day versus
the number of employees who were active on the
assembly line during that day, which varies from
35 to about 50. Identify a lurking variable that might
violate one of the assumptions of the SRM.
 
Do you think that is the only lurking variable? Why or why not?
 
4-As part of locating a new factory, a company investigated
the education and income of the local population.
To keep costs low, the size of the survey of
prospective employees was proportional to the size of
the community. What possible problems for the SRM
would you expect to find in a scatterplot of average
income versus average education for communities of
varying size?
Could those problems lead to a bad decision?
Why or why not?
 

Module 02 Written Assignment – The Federal Reserve

Explore www.federalreserve.gov to learn more about the Federal Reserve. After reviewing the Federal Reserve’s website, prepare a paper that explains the mission of the Federal Reserve and details its structure. Also discuss the importance of monetary policy and the tools the Federal Reserve uses to implement monetary policy and maintain stability of the financial system.
Your assignment should be a minimum of 2 written pages and utilize APA formatting. In-text citations and a reference page should also be included.
Criteria
Points
Explains the mission of the Federal Reserve
20
Describes the structure of the Federal Reserve
25
Discusses the importance of monetary policy
25
Identifies the tools the Federal Reserve uses to implement monetary policy and maintain stability of the financial system
20
Grammar, APA, organization and minimum page requirement
10
Total
100

Financial Statement Analysis

Focus of the Final Paper Prepare an 8- to 10-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on Amazon’s financial statements:
1. Provide a background of the firm, industry, economy, and outlook for the future
2. Analyze the short term liquidity of the firm
3. Analyze the operating efficiency of the firm
4. Analyze the capital structure of the firm
5. Analyze the profitability of the firm
6. Conclude with recommendations for the future analysis of the company (trend analysis) Writing the Final Paper
The paper: 1. Must be 8 to 10 double-spaced pages in length (not including the title and reference pages) and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page that includes: ◦ Title of paper ◦ Student’s name ◦ Course name and number ◦ Instructor’s name ◦ Date submitted
3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must use at least three scholarly sources from the Ashford University Library, in addition to the text. 7. Must document all sources in APA style as outlined in the Ashford Writing Center.
8. Must include a separate reference page that is formatted according to APA style as outlined in the Ashford Writing Center. Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.

HCA270 Annualizing Staff Assignment

Associate Level Material
Annualizing Staff
Consult Ch. 9 of Health Care Finance and other outside sources to complete the worksheet.
Part I: Taking information for the following scenario, complete the table accordingly by listing the number of days next to each category. Remember, a business year is divided into quarters. Therefore, when calculating a business year, you must divide the year into 52 weeks, which creates 13 months of 28 days, or 4 weeks. This translates into 4 quarters of 91 days, as there are 364 days in a business year.
You are the office manager for a site the physician group owns. You are working on the budget for next year. Your boss has asked you to annualize staff at both sites, because the second site’s office manager is on family leave. You agree to do both sites. To annualize the staffing, you must convert the staff’s net paid days worked to a factor.
Both offices are open and staffed 7 days a week, per the agreement with two managed care plans. The physicians’ group offers the following paid days for each full-time employee after 3 years of service: 8 holidays, 5 sick days, 15 vacation days, 3 personal holidays, and 3 education days. For FTEs over 1 year of service but less than 3 years, the physician group offers the following paid days: 8 holidays, 5 sick days, 7 vacation days, 2 personal holidays, and 1 education day.
Site 1: All employees have been employed for more than 3 years.
Site 2: All employees have been employed for less than 3 years, but more than 1 year.
Compute net paid days worked for a full-time employee in the physicians’ group.
CATEGORY OF DAYS NUMBER OF DAYS: Site 1 NUMBER OF DAYS: Site 2
Total days: business year
Less 2 days off per week
Number of paid days per year
Less paid days not worked:
Holidays
Personal holidays
Sick days
Education days
Vacation days
Total nonproductive days
Net productive days
Part II: Convert net paid days worked to a factor to annualize the staffing plan for the physician practice at both sites. Complete the following table by entering the annualizing equation to obtain the factor.
SITE EQUATION FACTOR
1
2

Probability Tree

I like the idea of a probability tree. Even though I feel comfortable with the equation for the probability, having the visual representation is much more clear and easier to understand. I do feel that using it for something as simple as the probability of flipping a coin is not worthwhile unless you are looking to find the probability of finding what the odds of it being heads the twentieth time will be, and even then the equation may be. I do find the probability tree to be very useful for things like the example that was given in the book however of finding what the probability is of someone watching a commercial, or to relate this to another discussion we had on another post, what are the chances of finding the money behind one of three doors. Probability trees can be a very useful tool for me in the future.

Financial Plan

Write the Financial Plan for your organization (500 word maximum). Create the accompanying spreadsheet(s) and address the following in your plan:

  1. Using Excel, create a three-year Pro Forma income statement for your organization (or product/service). Review the resources in the topic materials for additional information.
  2. Calculate your financial break-even point. BEP= Fixed Costs/ (unit price – variable unit costs).
  3. Identify possible sources for investment capital if required (friends, family, banks, USSBA, etc.).
  4. Explain how you will use financial information to help you craft your business strategy.
  5. Identify the key financial ratios you will use to measure the performance of your organization to determine success.

Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

Attachments:

Standard Normal Distribution

Standard normal distribution has a mean of 0 and a standard deviation of 1. The standard deviation is simply how spread out the numbers are so the further the data point is from the mean, the less likely it is to occur. The characteristics of standard normal distribution is that it is symmetrical around its center and mirrors on the right and left side. There is also one mode (peak) of the curve. The tails of the curve never touch the x axis. I think that education would follow normal distribution in this example because if HR pulls the files and plot employees education, it’ll fall within standard deviation. The other categories would be too spaced out because they have too much of a wide range to plot and fall within normal distribution. The other categories would look more like a scatter plot.

Corporate Finance 800-1000 words APA format

Choose a public company, and present findings from your financial analysis in a report. Your report must include the following:

  • Give a description of the operating profit margin.
  • Give a description of the asset turnover.
  • Give a description of the equity multiplier.
  • Give a description of the return on equity.
  • Give a description of the return on assets.
  • Calculate the operating profit margin. Explain your answer.
  • Calculate the asset turnover. Explain your answer.
  • Calculate the equity multiplier. Explain your answer.
  • Calculate the return on assets. Explain your answer.
  • Calculate the return on equity. Explain your answer.
  • What does the DuPont analysis describe about the company chosen?
  • Which ratio demonstrates the company’s weakest area? Explain your answer.

Revenue and Expenses

Recognition of concepts. Jim Armstrong operates a small company that books entertainers for theaters, parties, conventions, and so forth. The company’s fiscal year ends on June 30. Consider the following items and classify each as either:
(1) prepaid expense, (2) unearned revenue, (3) accrued expense, (4)
accrued revenue, or (5) none of the foregoing.
a. Interest owed on the company’s bank loan, to be paid in early July
b. Professional fees earned but not billed as of June 30
c. Office supplies on hand at year-end
d. An advance payment from a client for a performance next month at a convention
e. The payment in part (d) from the client’s point of view
f. Amounts paid on June 30 for a 1-year insurance policy
g. The bank loan payable in part (a)
h. Repairs to the firm’s copy machine, incurred and paid in June
2. Understanding the closing process. Examine the following list of accounts:
Note Payable Accumulated Depreciation: Building
Alex Kenzy, Drawing Accounts Payable
Product Revenue Cash
Accounts Receivable Supplies Expense
Utility Expense
Which of the preceding accounts
a. appear on a post-closing trial balance?
b. are commonly known as temporary, or nominal, accounts?
c. generate a debit to Income Summary in the closing process?
d. are closed to the capital account in the closing process?
3. Adjusting entries and financial statements. The following information pertains to Sally Corporation:
 The company previously collected $1,500 as an advance payment for services to be rendered in the future. By the end of December, one half of this amount had been earned.
 Sally Corporation provided $1,500 of services to Artech Corporation; no billing had been made by December 31.
 Salaries owed to employees at year-end amounted to $1,000.
 The Supplies account revealed a balance of $8,800, yet only $3,300 of supplies were actually on hand at the end of the period.
 The company paid $18,000 on October 1 of the current year to Vantage Property Management.
The payment was for 6 months’ rent of Sally Corporation’s headquarters, beginning on
November 1.
Sally Corporation’s accounting year ends on December 31.
Instructions
Analyze the five preceding cases individually and determine the following:
a. The type of adjusting entry needed at year-end (Use the following codes: A, adjustment of a prepaid expense; B, adjustment of an unearned revenue; C, adjustment to record an accrued expense; or D, adjustment to record an accrued revenue.)
b. The year-end journal entry to adjust the accounts
c. The income statement impact of each adjustment (e.g., increases total revenues by $500)
4. Adjusting entries. You have been retained to examine the records of Mary’s Day Care Center as of December 31, 20X3, the close of the current reporting period. In the course of your examination, you discover the following:
On January 1, 20X3, the Supplies account had a balance of $1,350. During the year, $5,520 worth of supplies was purchased, and a balance of $1,620 remained unused on December 31.
Unrecorded interest owed to the center totaled $275 as of December 31.
All clients pay tuition in advance, and their payments are credited to the Unearned Tuition Revenue account. The account was credited for $65,500 on August 31. With the exception of $15,500 all amounts were for the current semester ending on December 31.
Depreciation on the school’s van was $3,000 for the year.
On August 1, the center began to pay rent in 6-month installments of $24,000. Mary wrote a check to the owner of the building and recorded the check in Prepaid Rent, a new account.
Two salaried employees earn $400 each for a 5-day week. The employees are paid every Friday, and December 31 falls on a Thursday.
Kathy’s Day Care paid insurance premiums as follows, each time debiting Prepaid Insurance:
Date Paid Policy No. Length of Policy Amount
Feb. 1, 20X2 1033MCM19 1 year $540
Jan. 1, 20X3 7952789HP 1 year 912
Aug. 1, 20X3 XQ943675ST 2 years 840
Instructions
The center’s accounts were last adjusted on December 31, 20X2. Prepare the adjusting entries necessary
under the accrual basis of accounting.ACC205: Principles of Accounting I
5. Bank reconciliation and entries. The following information was taken from the accounting records of
Palmetto Company for the month of January:
Balance per bank $6,150
Balance per company records 3,580
Bank service charge for January 20
Deposits in transit 940
Interest on note collected by bank 100
Note collected by bank 1,000
NSF check returned by the bank with the
bank statement 650
Outstanding checks 3,080
Instructions:
a. Prepare Palmetto’s January bank reconciliation.
b. Prepare any necessary journal entries for Palmetto.
6. Direct write-off method. Harrisburg Company, which began business in early 20X7, reported $40,000 of
accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was $550 for a
sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that Mattingly had filed
for personal bankruptcy. Harrisburg uses the direct write-off method to account for uncollectibles.
a. Prepare the journal entry needed to write off Mattingly’s account.
b. Comment on the ability of the direct write-off method to value receivables on the year-end balance
sheet.
7. Allowance method: analysis of receivables. At a January 20X2 meeting, the president of Sonic Sound directed the sales staff “to move some product this year.” The president noted that the credit evaluation department was being disbanded because it had restricted the company’s growth. Credit decisions would now be made by the sales staff.
 
By the end of the year, Sonic had generated significant gains in sales, and the president was very pleased.
The following data were provided by the accounting department:
20X2 20X1
Sales $23,987,000 $8,423,000
Accounts Receivable, 12/31 12,444,000 1,056,000
Allowance for Uncollectible Accounts,
12/31
? 23,000 cr.
The $12,444,000 receivables balance was aged as follows:
Age of Receivable Amount Percentage of Accounts
Expected to Be
Collected
Under 31 days $5,321,000 99%
31260 days 3,890,000 90
61290 days 1,067,000 80
Over 90 days 2,166,000 60
Assume that no accounts were written off during 20X2.
Instructions
a. Estimate the amount of Uncollectible Accounts as of December 31, 20X2.
b. What is the company’s Uncollectible Accounts expense for 20X2?
c. Compute the net realizable value of Accounts Receivable at the end of 20X1 and 20X2.
d. Compute the net realizable value at the end of 20X1 and 20X2 as a percentage of respective year-end receivables balances. Analyze your findings and comment on the president’s decision to close the credit evaluation department.

ABC Financial

Income Statement and Balance Sheet Preparation
Resource: ABC Company History, ABC Financial and Supplemental Data Excel® spreadsheets, and footnotes from the Week 2 Learning Team assignment
Calculate the deferred tax asset or liability of an error for the scenario provided.
Calculate inventory calculation average cost, first-in-first-out (FIFO), and last-in-first-out (LIFO). Record the calculated average cost in the financial statement.
Calculate the straight-line depreciation.
Create an income statement using the results calculated above.
Create a balance sheet using the results calculated above. Insert your Learning Team’s footnotes into the balance sheet and income statement. Identify in the footnotes the depreciation methods being used for the fixed assets. Also identify the footnotes the methodology used to determine deferred taxes.
Submit the Income Statement and Balance Sheet in a Microsoft® Excel® spreadsheet that includes the required calculations.
Please disregard Los Lobos, Jamona, etc
The purchases only included the actual purchases for the period. The beginning inventory balance needs to be included in the calculations, but is not considered a purchase for the period
 

Diageo and Mey Icki deal

I have a presentation of 10 slides to hand in by tomorrow midnight (UK time). It is about a post-acquisition deal between the UK spirits company Diageo and the Turkish brand Mey Icki. I have got a presentation of 10 slides already for when I presented in class with my group, however, that presentation was focusing on a deal pitch before the deal went actually through (so in 2011). Now I kind of need to look at it in retrospective, so further analysis. I have a case study for it and the presentation, which I could provide you with. I also have a merger market login, if that is of help to you. How much would it cost to get the 10 slides done from you by tomorrow evening? Enclosed you find: the case study to the deal, a presentation that was given from a Diageo employee at the university and my group presentation on the deal (as of 2011), so pretending we were the advisers to Diageo on this deal.

Equity Valuation

Bart Industries is about to be purchased by Kramer Enterprises.  Both firms are in the rocks and mineral industry.  As one of the founders of Bart Industries, you are concerned about the value of the equity in the firm.  You have acquired the following data on your firm:

  1. Bart has 200,000 shares of stock authorized, with 120,000 shares outstanding and held by the current owners.
  2. The free cash flows for next year are estimated to be $642,000.
  3. The WACC for the firm is currently 13%
  4. Bart has $320,000 of outstanding debt.
  5. The growth rate for Bart is estimated to be 5% for the future.
  6. Bart has a surplus of cash in the amount of $985,000.

Required:

  • What is the value of Bart’s equity?

Expenditures Approach to Calculating GDP

DATA EXERCISE #1
consists of four parts
Part 1: Expenditures Approach to Calculating GDP (weight 25% of the assignment grade)
Complete the following exercise
Visit the Bureau of Economic Analysis Web site at www.bea.gov Select National, then Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables, click “Begin using the data”, and use Section 1 – Tables 1.1.5 and 1.1.6 to identify the GDP (nominal GDP) and real GDP for the past four quarters.
a) Present the information that you received in your project as a table.
b) Write a report (1 page double – spaced), which contains the analysis of the results you received.
In this report consider, but do not be limited to the following:
1. Why was nominal GDP greater than real GDP in each of those quarters?
2. What were the percentage changes in Nominal GDP and real GDP for the most recent quarter?
3. What accounts for the difference?
Part 2: Income Approach to Calculating GDP (weight 25% of the assignment grade)
Complete the following exercise:
Go to http://www.bea.gov/
Find the information on GDP in billions of current dollars for the past four quarters (in GDP and the National Income and Product Account (NIPA) Historical Tables –click “Begin using the data”- choose Section 1- domestic product and income- table 1.7.5 – Create the table that contains the following information quarterly:
Gross domestic product
Gross national product
Net national product
National income
Personal income
Write a report in your own words (1 page, double-spaced), which contains the analysis of the results you received. In this report consider, but do not be limited to the following:
1. What is the difference between gross domestic product (GDP) and gross national product (GNP)?
2. Based on the table, what calculations must you make to determine GNP from GDP?
3. What is national income (NI)?
4. Which was higher in this year, GNP or NI? By how much?
5. What calculations must you make to determine NI from GNP?
6. What was the main component of NI?
Part 3: GDP in Different Countries (weight 25% of the assignment grade)
Complete the following exercise:
Go to World Development Indicators database:
http://ddp-ext.worldbank.org/ext/ddpreports/ViewSharedReport?&CF=&REPORT_ID=9147&REQUEST_TYPE=VIEWADVANCED
Choose the country in the window on the top of the page.
Fill in the table below. Calculate the per capita GDP for the most recent available year for the countries listed in the table with the equation given in the far right column.
Country GDP (in billions of U.S. dollars) Population (in million) Per Capita GDP (in thousands of U.S. dollars)
1 2 3 4 = 2/3
United States
Japan
China
Mexico
Russian Federation
Switzerland
Sweden
Luxembourg
Write a short report in your own words (1 page, double-spaced), which contains the analysis of the results you have gotten. In this report consider, but do not be limited to the following:
1. List the countries by highest per capita GDP to lowest.
1. Does the order remain the same for total GDP as for per capita GDP?
2. If not, explain why is it different?
Part 4: Index of Economic Freedom (weight 25% of the assignment grade)
Log onto the Heritage Foundation’s website at http://www.heritage.org/Index/
“The 2011 Index of Economic Freedom covers 183 countries across 10 specific freedoms such as trade freedom, business freedom, investment freedom, and property rights. The 2011 Index provides an even clearer picture of economic freedom by using data-driven equations which allows countries to be graded between scores of 0 and 100.”
Click on RANKING to find the rank of economic freedom. Lower rank scores indicate a higher level of economic freedom.
Click on EXPLORE to find the rank of business, trade, financial freedom, and property rights.
1. Find the rank in economic freedom (overall) of the countries listed on the table in part III of the assignment.
2. Find the rank in business, trade, financial freedom, and property rights of the countries listed on the table in part III of the assignment.
3. Compare the rank in economic freedom (overall) and other indicators with the order of the countries using the per capita GDP in the table in part III of the assignment.
Write a report in your own words (1 page, double-spaced), which contains the analysis of the results that you received.

Financial Management

Please read the relevant parts of your textbook, which refer to cash flow and financial planning.
To avoid any uncertainty regarding his business’ financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next 9 months:
March $100,000
April $275,000
May $320,000
June $450,000
July $700,000
August $700,000
September $825,000
October $500,000
November $115,000
He has also gathered the following collection estimates regarding the forecast sales:
• Payment collection within the month of sale = 25%
• Payment collection the month following sales = 55%
• Payment collection the second month following sales = 20%
Payments for direct manufacturing costs like raw materials and labor are made during the month that follows the one in which such costs have been incurred. These costs are estimated as follows:
March $187,500
April $206,250
May $375,000
June $337,500
July $431,250
August $640,000
September $395,000
October $425,000
Additional financial information is as follows:
• Administrative salaries will approximately amount to $35,000 a month.
• Lease payments around $15,000 a month.
• Depreciation charges, $15,000 a month.
• A one-time new plant investment in the amount of $95,000 is expected to be incurred and paid in June.
• Income tax payments estimated to be around $55,000 will be due in both June and September.
• And finally, miscellaneous costs are estimated to be around $10,000 a month.
• Cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times.
To receive full credit on this assignment, please show all work, including formulas and calculations used to arrive at the financial values.
Group Project Guidelines
• As a group, prepare a monthly cash budget for Cyrus Brown Manufacturing for the 9-month period of March through November.
o Use Excel to prepare the monthly cash budget.
• Based on your cash budget findings, answer the following questions:
o Will the company need any outside financing?
o What is the minimum line of credit that CBM will need?
o What do you think of CBM’s cash position during the budget period? Do you see any concerns for the company in this regard?
o If you were a bank manager, would you want CBM as your client? Why or why not?
• It is up to the members of the group to divide the assignment tasks evenly. You will be graded on group participation
Your submitted Group Project (150 points) must include the following:
• 75 Points. An Excel spreadsheet that contains your group’s monthly cash budget for Cyrus Brown Manufacturing.
• 75 Points. A double-spaced Word document of 1–2 pages that contains your answers to the questions listed in the Assignment Guidelines.
Grading
You will be graded on the accuracy of your monthly cash budget and your demonstrated understanding of financial analysis procedures. You will also be graded on your group participation.

Finance 303

This is requesting work for a compounded assignment that starts July 13 and will finish on Aug 18. It is to complete quizzes for finance 303. Will compensate appropriately! Please message me for more details

Stock market and the bond market

rite 400–600 words that respond to the following questions with your thoughts, ideas, and comments.
 
APA Format, reference page and intext citations.
 
Understanding the differences between the stock market and the bond market is essential to managing corporations and investing. In your discussion, answer the following questions:

  • Describe the products and the functionality of the stock market.
  • Describe the products and the functionality of the bond market.
  • Describe how an individual company can use the stock market to generate initial funding as well as subsequent funding.
  • Describe how an individual company can use the bond market to generate funding.
  • Describe which is more expensive for a company to generate funds—the stock market or the bond market.

valuing a vanilla bond (a plain bond)

CF Indiv Project 2

Understanding how to properly value a vanilla bond (a plain bond) is essential for finance. Using the followingWeb site (https://www.auctions.zionsdirect.com/), find 3 different funding structures. Describe for each structure: security type, term, and yield. Furthermore, take a look at each of their offering documents, and provide a short description of the information found in the documentation.

  • Why do the different types of bonds get different rates? Explain your answer.
  • What makes each of the different structures different? Explain your answer.
  • What does the rate given say about the credit rating for each issuer? Explain your answer.
  • How does credit rating affect the rate given to the issuer? Explain your answer.
  • Which structure has the best credit rating based on the yield given to each structure? Explain your answer.
  • What is the credit rating supposed to tell you? Explain your answer.
  • Which bond is receiving the best price? Explain your answer.
  • Why does having a good credit rating matter to the issuer? Explain your answer.

Money Market Funds

bus 405 week 1 dis
Money Market Funds
From Chapter 4, complete Problem 4: The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 2.5 percent. If you had invested $50,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? Why?  Remember to complete all parts of the question, show your work, and report the results of your analysis.  Respond to at least two of your classmates’ posts outside of your own thread.

Annualized Returns

bus 405 week 1
BUS405 Grading Rubric
Assignment: Annualized Returns
Instructions
Complete problem 18 in Chapter 3 (shown below) and submit to the instructor. Show your work to find the annualized  return for each of the listed share prices. Write a 100 word analysis of the process to calculate these annualized returns.
Suppose you have $28,000 to invest. You�re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $40 per share. You also notice that a call option with a $40 strike price and six months to maturity is available.
The premium is $4.00. MMEE pays no dividends. What is your annualized return from these two investments if, in six months, MMEE is selling for $48 per share? What about $36 per share?

Capital Budgeting Analysis

Capital Budgeting Analysis
 
You are required to work the following problem, using a discounted cash flow (NPV) analysis. You should model your answer on the text approach in Chapter 8.
 
“Gordon Hall is considering replacing an old machine with a new one from Li Ho. The old machine (bought 5 years ago from Tom Lee) cost $340,000, while the new one will cost $280,000, fully financed by a 5 year 9% per annum interest only loan.
 
“The new machine will be depreciated prime cost to $50,000 over its 5 year life. Gordon estimates that it will be worth $40,000 (salvage value) after 5 years. The old machine is being depreciated at prime cost to zero over its original expected life of 10 years. However, George can sell the old machine today for $86,000.
 
“The new machine will save Gordon $70,000 a year in cooling costs. Other costs are that, one year ago, a feasibility study on the new machine conducted for Gordon by an external firm of consultants, cost Gordon $20,000. With the new machine, Gordon will also lose $10,000 of sales of another product to Tom Lee.
 

“With the new machine, a one-off amount of cleaning supplies (current assets) at a cost of $9,000 will be required, and Henry estimates that accounts receivable (also current assets) will increase by $14,000. Both of these increases in working capital will be recouped at the end of the new machine’s life in five years time.

 
“Gordon’s cost of capital is 9%. The tax rate is 30%. Tax is paid in the year in which earnings are received.
 
“REQUIRED.
(a) Calculate the net present value of the proposed change, that is, the net benefit or net loss in present value terms of the proposed changeover.
 
(b) Should Henry purchase the new machine? State clearly why.”

Cost of Capital

Financial Management

Question 1: (Cost of Capital) 8 points
Pine Tree Farms Corporation (PTFC) has a target capital structure of 40% debt, 10% preferred stock, and 50% common stock. Currently PTFC has a capital structure of 75% debt, 10% preferred stock, and 15% common stock. The after tax cost of debt is 4%. The preferred stock has a par value of $100 per share, a $7 per share dividend, and a market price of $60 per share. The common stock of PTFC trades at $86 per share and has a projected dividend (D1) of $2.55. The stock price and dividend are expected to continue to grow at 7% per year for the foreseeable future. The CFO expects the company to have $590,000 available from retained earnings.
What is PTFC’s weighted average cost of capital (WACC)?
Question 2: (Capital Budgeting) 6 points
Consider Projects A and B, with net cash flows as follows:
—- Net Cash Flows —-
Project A Project B
Initial Cost at T-0 (Now) ($20,000) ($20,000)
cash inflow at the end of year 1 10,000 6,000
cash inflow at the end of year 2 8,000 16,000
cash inflow at the end of year 3 6,000 26,000
a. Construct NPV Profiles for these two projects.
b. If the two projects were mutually exclusive, which would you accept if your firm’s cost of capital were 4%? Which would you accept if your firm’s cost of capital were 9%?
Question 3: (Capital Budgeting) 2 points
Calculate the IRR of the following project:
Year Cash Flow
0 ($60,000)
1 $22,000
2 $24,000
3 $26,000
Question 4: (Capital Budgeting) 2 points
Calculate the Modified Internal Rate of Return (MIRR) of the project in Question 3, assuming your firm’s cost of capital is 6%.
Question 5: (Capital Structure) 4 points
Firms R and S are similar firms in the same industry. Firms R and S have the same profit margin and total asset turnover when compared. However, Firm R’s capital structure is 60% debt, 40% equity, and Firm S’s capital structure is 30% debt, 70% equity. Given the above conditions, which firm will experience the highest return on equity (ROE)?
Question 6: (Capital Structure) 4 points
A consultant has collected the following information regarding Hobbit Manufacturing:
Operating income (EBIT) $600 million, Interest expense $0, Tax rate 40%, Debt $0, Cost of equity 7%, WACC 7% . The company has no growth opportunities (g = 0), so the company pays out all of its earnings as dividends . Hobbit can borrow money at a pre-tax rate of 6%. The consultant believes that if the company moves to a capital structure consisting of 30% debt and 70% equity (based on market values), which would require taking on debt in the amount of $1,617 million, that the cost of equity will increase to 8% and the pre-tax cost of debt will remain at 6%, but the value of the firm will rise. Is the consultant correct? If the company makes this change, what will be the increase in total market value for the firm?
Question 9: (Forecasting) 8 points
Jolly Joe’s Novelties, Inc. had the financial data shown below last year. Jolly Joe’s has just invented a new toy which they expect will cause sales to double from $100,000 to $200,000, increasing net income to $10,000. The company feels they can handle the increase without adding any fixed assets. a. Will Jolly Joe’s need any new outside funding if they pay no dividends? b. If so, how much?
 
Question 8: (Working Capital Management) 6 points
Suppose it takes Jolly Joe’s Novelties, Inc. 5 days to build and sell toys (on average). Also suppose it takes the firm’s customers 30 days, on average, to pay for the toys after they have purchased them on credit. Finally, suppose the firm is able to delay paying for the materials it uses in the manufacturing process for 30 days. Given these conditions, how long is Jolly Joe’s cash conversion cycle?
Question 9: (Working Capital Management) 6 points
If Jolly Joe’s buys $100 worth of supplies on credit with terms 2/15 n30 and pays the bill on the 30th day after the purchase:
a. What is the approximate, or “nominal,” cost of trade credit as an annual rate?
b. What is the exact cost of trade credit as an annual rate?

Tax Accounting

Use the tax formula as a structure for your answer. You need not use a tax return form. You should not use a tax computation service for this problem completion. As a suggestion, you should break this problem into small parts, solve each part, do what you know, and come back to what you do not.
Johnson recieves a $7,800 reimbursment for the travel expenses. He did not recieve any reimbursement for the auto expenses. He uses his personal automobile 80$ for business use and placed his current automobile in service on October 1, 2008. Total, business miles driven during the year (evenly throughtout the year) amount to 26,400,his commuting miles in 2012 amount to 2,000 (average, daily roundtrip of 7,000 miles), and other personal miles amount to 4,600 miles. Johnson’s AGL is $60,000, and he has no other miscellaneous itermized deductions.
a) Calculate Johnson’s expense deduction using the 2012 Form 2016 )Employee Business Expenses_ based on actual automobile expenses and other employee bsuiness expenses.
b) Calculate Johnson’s expense deduction for 2012 using the standrad mileage rate method and other employee business expenses. (Assume that none of the restrictions on the use of the standard mileage rate method are applcable)
George Large (SSN 000-11-1111) and his wife Marge Large (SNN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2012 income tax return based on the information below:
George Large worked as a salesman for Toyboat, Inc. He recieved a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbrsement from Toyboat of %5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbirsement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insruance worth $7,200 per year. George drove his car a total of 24,000 miles during the yeear, and he placed the car in service on June 1, 2010. His log indicates that 18,000 miles were for sales calls to customers at the customers’ offices and the remainder was personal mileage. George uses the standard mileage rate method. Assume his business miles were driven evenly during the year. George is a college basketball fan. He purchased two season tickets for a total of $4,000. He tales a costomer to every game, and they discuss some business before, during, adn after the games. George also takes to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he sent the other two days sighseeing. He had the following expenses during each of the fve days of his trip:
Airfare  $2,000
Lodging $85/day
Meals    $50/day
Taxicabs $20/day
Marge Large is self-employed. She repairs rubber toy boats in the basement of their home, which is 25% of the house’s square footage. The business code is 811490. She had the following income and expenses:
Income from rubber toyboat repais  $15,000
Cost of supplies  $5,000
Contract labor  $3,500
Long distance phone calls (business)  $500
The Large’s home cost a total of $150,000, of which the cost of the land was $20,000.  The FMV of the house is $225,000. The house is depreciable over a 39-year recovery period. The Larges incurred the following total other expenses:
Utility Bill of the House   $2,000
Real State Taxes   $2,500
Mortgate Interest   $4,500
Cash charitable contributions  $3,500
Prepare form 1040, schedules A,C and SE for From 1040, and Froms 2106 and 8829 for the 2012 year. (Assume no depreciation for this problem and that no estimates taxes were paid by the Larges)

Differences between perpetuities and annuities

write 600–800 words that respond to the following questions with your thoughts, ideas, and comments. Provide a reference sections and intext citations.
 
Describe the differences between perpetuities and annuities. Give examples of both types of products. Then, browse the following Web sites:

  1. https://personal.vanguard.com/us/funds/byobjective/detail?category=LifeCycle
  2. http://www.johnhancock.com/products/annuities.html
  • What information on the first Web site could be the most applicable to a consumer or investor?
  • What information on the second Web site could be the most applicable to a consumer or investor?
  • Find 1 example of a perpetuity. How is the perpetuity structured? How can you tell that this is an annuity within the product? Explain your answer.
  • Find 1 example of an annuity. How is the annuity structured? How can you tell that this is a perpetuity within the product? Explain your answer.
  • Why would an investor prefer one product over the other? Explain your answer.
  • How does the time value of money impact the eventual returns of both products?
  • If the investor had a short life expectancy, which investment would he or she prefer?
  • If the investor had a long life expectancy, which investment would he or she prefer?

Finance Assignment

800–1,000 words APA Format, reference page and intext citations

  • Find 5 different online mortgage lenders
  • From these 5 lenders, find the following rates, assuming the mortgage payments are made monthly:
    • 10-year (if available) for fixed-rate mortgage
    • 15-year (if available) for fixed-rate mortgage
    • 30-year for fixed-rate mortgage
  • Convert these rates into effective annual rates (EARs).
  • Discuss which rate is actually the cheapest rate.
    • What are 2 things about the sample Web site given above that could be applicable to a consumer or investor?
    • Present the rates in a table. List the quoted rate and EAR rate, the lender, and the maturity of the loan. Show your work for each calculation.
    • What is 1 mistake people make when calculating their mortgage payments? Explain your answer.
    • Based solely on the EAR, which rate is the cheapest? Does this make sense?
    • Why do the different lenders have different rates?
    • Is the difference in rates going to make a huge impact on the cost to the homebuyer? Explain your answer.

Finance Homework

Understanding how to properly value a vanilla bond (a plain bond) is essential for finance. Using the following Web site (https://www.auctions.zionsdirect.com/), find 3 different funding structures. Describe for each structure: security type, term, and yield. Furthermore, take a look at each of their offering documents, and provide a short description of the information found in the documentation.

  • Why do the different types of bonds get different rates? Explain your answer.
  • What makes each of the different structures different? Explain your answer.
  • What does the rate given say about the credit rating for each issuer? Explain your answer.
  • How does credit rating affect the rate given to the issuer? Explain your answer.
  • Which structure has the best credit rating based on the yield given to each structure? Explain your answer.
  • What is the credit rating supposed to tell you? Explain your answer.
  • Which bond is receiving the best price? Explain your answer.
  • Why does having a good credit rating matter to the issuer? Explain your answer.

min 800 words ref page and in-text citations

Differences between the stock market and the bond market

Understanding the differences between the stock market and the bond market is essential to managing corporations and investing. In your discussion, answer the following questions:

  • Describe the products and the functionality of the stock market.
  • Describe the products and the functionality of the bond market.
  • Describe how an individual company can use the stock market to generate initial funding as well as subsequent funding.
  • Describe how an individual company can use the bond market to generate funding.
  • Describe which is more expensive for a company to generate funds—the stock market or the bond market.

write 400–600 words that respond to the following questions with your thoughts, ideas, and comments.
 
APA Format, reference page and intext citations.

Capital Budgeting Analysis

 
You are required to work the following problem, using a discounted cash flow (NPV) analysis. You should model your answer on the text approach in Chapter 8.
 
“Gordon Hall is considering replacing an old machine with a new one from Li Ho. The old machine (bought 5 years ago from Tom Lee) cost $340,000, while the new one will cost $280,000, fully financed by a 5 year 9% per annum interest only loan.
 
“The new machine will be depreciated prime cost to $50,000 over its 5 year life. Gordon estimates that it will be worth $40,000 (salvage value) after 5 years. The old machine is being depreciated at prime cost to zero over its original expected life of 10 years. However, George can sell the old machine today for $86,000.
 
“The new machine will save Gordon $70,000 a year in cooling costs. Other costs are that, one year ago, a feasibility study on the new machine conducted for Gordon by an external firm of consultants, cost Gordon $20,000. With the new machine, Gordon will also lose $10,000 of sales of another product to Tom Lee.
 

“With the new machine, a one-off amount of cleaning supplies (current assets) at a cost of $9,000 will be required, and Henry estimates that accounts receivable (also current assets) will increase by $14,000. Both of these increases in working capital will be recouped at the end of the new machine’s life in five years time.

“Gordon’s cost of capital is 9%. The tax rate is 30%. Tax is paid in the year in which earnings are received.
 
“REQUIRED.
(a) Calculate the net present value of the proposed change, that is, the net benefit or net loss in present value terms of the proposed changeover.
 
(b) Should Henry purchase the new machine? State clearly why.”

RETIREMENT AND ESTATE PLANNING

Answer the Following Questions with at least 50 words each question.

  1. Discuss qualified plan fiduciary requirements along with the duties and impact of being named a plan fiduciary.
  1. Discuss types of investments that may be appropriate for use in qualified plans. Contrast these with investments that may not be appropriate.
  1. Discuss types of pension and welfare plans that are exempt from ERISA regulations.
  2. Discuss the primary pension plan reporting and disclosure requirements.
  3. Discuss implications of using life insurance to fund a qualified plan relative to the incidental death benefit test.
  4. Discuss requirements for fully insured plans and how they may relate to overfunding problems.
  5. Discuss differences between flat amount, flat percentage, and unit credit benefit formulas.
  6. Discuss advantages and disadvantages of installing a defined benefit pension plan.
  7. Discuss advantages and disadvantages to using a cash balance pension plan for both the employer and employee.
  8. Discuss under what circumstances an employer might want to switch from an existing defined benefit plan to a cash balance plan, along with the implications of doing so.

Assignment : Tax Reform

Assume you are a CPA and are hired by an elected official to recommend changes to the current tax
code related to corporate taxes.
Using the Internet or Strayer databases, conduct research on the current congressional proposals related
to federal corporate taxation.
Write a four to six (4-6) page paper in which you:
1. Based on your research, assess which proposal you believe to be the most viable and financially
attractive proposal for U.S. corporate taxpayers indicating how this proposal could be
implemented. Provide support for your rationale.
2. Explore the impact to corporations and the US economy if U.S. companies could repatriate
foreign profits earned without incurring a federal tax liability. Provide support for your rationale.
3. Based on your research, which corporate taxes would you propose to eliminate and why?
4. Determine the impact, positive or negative, that your proposed eliminations would have on
corporations and the economy. Provide evidence to support your position.
5. Propose an alternative tax method for corporations and demonstrate how your proposed changes
would be beneficial to corporate taxpayers compared to the current system for both corporations
and the economy. Provide support for your rationale.
The specific course learning outcomes associated with this assignment are:
? Create an approach to tax research that results in credible and current resources.
? Use technology and information resources to research issues in organizational tax research and
planning.
? Write clearly and concisely about organizational tax research and planning using proper writing
mechanics.

Holbrook Company

1) On January 1, 2011, Holbrook Company leased a building under a 3-year operating lease. The annual rental payments are $68,000 on January 1, 2011, the inception of the lease, and $50,000 January 1 of 2012 and 2013. Holbrook made structural modifications to the building costing $90,000 before occupying the building. The useful life of the building and the modifications is 30 years with no expected residual value. Prepare the appropriate journal entries for Holbrook Company for 2011. Holbrook’s fiscal year is the calendar year, and the company uses straight-line depreciation.
2) At the end of the preceding year, World Industries had a deferred tax asset of $17,500,000 attributable to its only temporary difference of $50,000,000 for estimated expenses. At the end of the year, the temporary difference is $45,000,000. At the beginning of the year there was no valuation account for the deferred tax asset. At year- end, World Industries now estimates that it’s more likely than not that one-third of the deferred tax asset will never be realized. Taxable income in $12,000,000 for the current year, and the tax rate is 30% for all years. Prepare journal entries to record World Indusrties’ income tax expense for the current year. Show well- labled supporting computations for each componet of the journal entries.
3) Vrable Corporation has a defined benefit pension plan. Two alternative possibilities for pension-related data for the current calender year are shown below:
Net loss (gain), Jan.1 (case 1) $240,000 (case 2) $(230,000)
Loss (gain) on plan assets (case 1) (8,000) (case 2) (6,000)
Loss (gain) on PBO (case 1) (17,000) (case 2) 12,000
ABO, Jan1 (case1) (1,900,000) (case 2) (1,500,000)
PBO, Jan1 (case 1) (2,500,000) (case 2) (1,700,000)
Plan Assets, Jan1 (case1 ) 2,100,000 (case2) 2,000,000
Average remaining service period of active employees (years) (case1) 10 (case2) 12
For each independent case, valculate amortization of the net loss or gain that should be included as a component of pension expense for the current year.

Bonds Market

1. a) What would be the expected price of each bond one year from now if interest rates were 8 percent?
b) What would be the expected price two years from now if interest rates initially fall but subsequently rise to 12 percent at the end of the second year?
2. If interest rates were expected to fall and not rise back to 12 percent, which alternative is best?
3. If interest rates were expected to decline initially and then rise, which alternative should be selected?
4. If bond A were selected, what would happen after a year elapses? What decision must then be made?
MINI CASE
Kavita De Falla is an individual with low risk tolerance who has just inherited $100,000. She has no immediate needs for the funds but would like to supplement her current income. Thus, De Falla is considering investing these funds in debt instruments, since the interest and repayment of principal are legal obligations of the issuer. While she realizes that the borrower could default on the payments, she believes this is unlikely, especially if she limits her choices to triple- or double-A-rated bonds. De Falla does realize that she could earn more interest by purchasing lower-rated bonds but is not certain that she is capable of bearing the risk.

Finance homework

Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at a 6% rate.
(1) What is the firm’s expected dividend stream over the next 3 years?
(2) What is the firm’s current stock price?
(3) What is the stock’s expected value 1 year from now?
(4) What is the expected dividend yield, the capital gains yield, and the total return during the first year?
Sam Strother and Shawna Tibbs are senior vice presidents of Mutual of Seattle. They are co-directors of the company’s pension fund management division, with Strother having responsibility for fixed income securities (primarily bonds) and Tibbs being responsible for equity investments. A major new client, the Northwestern Municipal League, has requested that Mutual of Seattle present an investment seminar to the mayors of the represented cities, and Strother and Tibbs, who will make the actual presentation, have asked you to help them.

Bond Markets Assignment

The City of Charleston issued $3,000,000 of 8% coupon, 30 year, semiannual payment, tax-exempt muni bonds 10 years ago. The bonds had 10 years of call protection, but now the bonds can be called if the city chooses to do so. The call premium would be 7.50% of the face amount. New 20 year, 6%, semiannual payment, bonds can be sold at par, but flotation costs on this issue would be 3.0% of the amount of bonds sold. What is the net present value of the refunding? Note that cities pay no income taxes, hence taxes are not relevant

Accounting for intangibles

Midland Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Midland purchased goodwill as part of the acquisition of Shipley Wireless Company, which had the following figures.
 
Requirements

  1. Journalize the entry to record Midland’s purchase of Shipley Wireless for $320,000 cash plus a $480,000 note payable.
  2. What special asset does Midland’s acquisition of Shipley Wireless identify? How should Midland Telecom account for this asset after acquiring Shipley Wireless? Explain in detail.

Investment Project Valuation

Using a 5% discount rate, calculate the Net Present Value, Payback, Profitability Index, and IRR for each of the investment projects below (note, the inflows are for each year). Based on your calculations rank the projects and support you answer. Project 1 Initial Invest= $500,000, Cash inflows of $100,000 for years 1-5 and $50,000 for years 6-10. Project 2 Initial Invest= $1,000,000, Cash inflows of $400,000 for years 1-3, $0 for years 4-7 and $250,000 for years 8-10. Project 3 Initial Invest= $800,000, Cash inflows of $300,000 for years 1-5, $0 for years 6-9 and $100,000 for year 10. (Part 2) Assuming a budget of $1,200,000 what are your recommendations for the three projects in the above problem. Explain. Assuming a budget of $2,000,000 what are your recommendations for the above problem? Explain.

Finance Homework

Assignment Description:

ABC Corporation has a machine that requires repairs or should be replaced.  ABC has evaluated the two options and calculated the cash flows resulting from each option as follows:

Option A: Repair the Machine

Year Cash Flow
0 -50,000
1 31,500
2 20,100
3 18,900
4 17,100
5 13,700

Option B: Buy a new Machine

Year Cash Flow
0 -400,000
1 91,300
2 155,000
3 127,800
4 126,900
5 125,100

You have recently been hired by ABC Corporation and your first assignment is to help them decide which of these two options should be pursued.  You would like to apply Capital Budgeting and Time Value of Money concepts you have learnt in FIN 301 to analyze the problem and present your recommendation to your boss, Ms. Jane Austen.

Conduct the analysis by calculating the following for each option:

  •  Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Profitability Index (PI)
  • Payback Period (PB)
  • Crossover Rate

The company has a Weighted Average Cost of Capital (WACC) (discount Rate) of 12%.  For this analysis, your boss John Doe asked you to calculate NPV at three different discount rates: 12% (the current WACC), 14% and 16%.

Things to turn in:

  • A one-page memo explaining the results of your analysis and your recommendation. The memo should include important results of your analysis such as a summary table or graph. The memo is limited to one page so be very selective on what information to include.
  • An Excel spreadsheet showing calculation of above at the 3 discount rates and graph on NPV Profile. Assume benchmark for payback period. Write =if( ) statements to offer dynamic decisions.

Sycamore Candy Company

Question 1
Sycamore Candy Company offers a CD single as a premium for every 6 candy bar wrappers presented by customers together with $3.35. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each CD to the company is $3.10; in addition, it costs 50 cents to mail each CD. The results of the premium plan for the years 2012 and 2013 are as follows. (All purchases and sales are for cash.)

2012 2013

CDs purchased 397,500 524,700

Candy bars sold 2,994,100 2,751,400

Wrappers redeemed 1,908,000 2,385,000

2012 wrappers expected to be redeemed in 2013 461,100

2013 wrappers expected to be redeemed in 2014 556,500

(a) Prepare the journal entries that should be made in 2012 and 2013 to record the transactions related to the premium plan of the Sycamore Candy Company. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No. Account Titles and Explanation Debit Credit

2012

1. (To record the pemium inventory.)

2. (To record the sales.)

3. (To record the expense associated with the sale.)

4. (To record the premium liability.)

2013

5. (To record the pemium inventory.)

6. (To record the sales.)

7. (To record the expense associated with the sale.)

8. (To record the premium liability.)

(b) Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2012 and 2013.
Amount
Account 2012 2013 Classification
Inventory of Premiums $
Premiums Liability
Premium Expense

1. During 2012, Maverick Inc. became involved in a tax dispute with the IRS. Maverick’s attorneys have indicated that they believe it is probable that Maverick will lose this dispute. They also believe that Maverick will have to pay the IRS between $800,000 and $1,400,000. After the 2012 financial statements were issued, the case was settled with the IRS for $1,200,000. What amount, if any, should be reported as a liability for this contingency as of December 31, 2012?
2. On October 1, 2012, Holmgren Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Holmgren’s management along with its counsel have concluded that it is probable that Holmgren will be responsible for damages, and a reasonable estimate of these damages is $6,000,000. Holmgren’s insurance policy of $9,000,000 has a deductible clause of $500,000. How should Holmgren Chemical report this information in its financial statements at December 31, 2012?
3. Shinobi Inc. had a manufacturing plant in Darfur, which was destroyed in the civil war. It is not certain who will compensate Shinobi for this destruction, but Shinobi has been assured by governmental officials that it will receive a definite amount for this plant. The amount of the compensation will be less than the fair value of the plant but more than its book value. How should the contingency be reported in the financial statements of Shinobi Inc.?

Calculate the firm’s profit

A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm’s output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at the level of 120,000 units per day.)Assume that total fixed cost equals $900,000. Calculate the values for the following four formulas:Total Variable Cost = (Number of Workers x Worker’s Daily Wage) + Other Variable Costs

Total Costs = Total Variable Costs + Total Fixed Costs

Total Revenue = Price * Quantity

Average Variable Cost = Total Variable Cost / Units of Output per Day

Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day

Complete the following:Calculate the firm’s profit or loss. Is the firm making a profit or a loss?

Explain the Short Run Shut Down Rule. Should this firm shut down? Please explain.

Provide a report to the management of the firm that discusses what should be done.Be sure to show your work to support the decision that you outline in your report.

Schuler Company’s

1. The risk-free rate of return, rRF , is 11%; the required rate of return on the market, rM, 16%; and Schuler Company’s stock has a beta coefficient of 1.6.

a. If the dividend expected during the coming year, D1, is $3.00, and if g is a constant 2.75%, then at what price should Schuler’s stock sell? Round your answer to the nearest cent.

b. Now, suppose the Federal Reserve Board increases the money supply, causing a fall in the risk-free rate to 4% and rM to 12%. How would this affect the price of the stock? Round your answer to the nearest cent.

c. In addition to the change in part b, suppose investors’ risk aversion declines; this fact, combined with the decline in rRF, causes rM to fall to 10%. At what price would Schuler’s stock sell? Round your answer to the nearest cent.

d. Suppose Schuler has a change in management. The new group institutes policies that increase the expected constant growth rate to 7%. Also, the new management stabilizes sales and profits, and thus causes the beta coefficient to decline from 1.6 to 0.6. Assume that rRF and rM are equal to the values in part c. After all these changes, what is Schuler’s new equilibrium price? (Note: D1 goes to $3.12.) Round your answer to the nearest cent.

2. Investors require a 15% rate of return on Brooks Sisters’ stock (rs = 15%).

What would the value of Brooks’s stock be if the previous dividend was D0 = $3 and if investors expect dividends to grow at a constant compound annual rate of (1) – 6%, (2) 0%, (3) 2%, or (4) 14%? Round your answers to the nearest cent.

Schuler Company's

1. The risk-free rate of return, rRF , is 11%; the required rate of return on the market, rM, 16%; and Schuler Company’s stock has a beta coefficient of 1.6.
a. If the dividend expected during the coming year, D1, is $3.00, and if g is a constant 2.75%, then at what price should Schuler’s stock sell? Round your answer to the nearest cent.
b. Now, suppose the Federal Reserve Board increases the money supply, causing a fall in the risk-free rate to 4% and rM to 12%. How would this affect the price of the stock? Round your answer to the nearest cent.
c. In addition to the change in part b, suppose investors’ risk aversion declines; this fact, combined with the decline in rRF, causes rM to fall to 10%. At what price would Schuler’s stock sell? Round your answer to the nearest cent.
d. Suppose Schuler has a change in management. The new group institutes policies that increase the expected constant growth rate to 7%. Also, the new management stabilizes sales and profits, and thus causes the beta coefficient to decline from 1.6 to 0.6. Assume that rRF and rM are equal to the values in part c. After all these changes, what is Schuler’s new equilibrium price? (Note: D1 goes to $3.12.) Round your answer to the nearest cent.
2. Investors require a 15% rate of return on Brooks Sisters’ stock (rs = 15%).
What would the value of Brooks’s stock be if the previous dividend was D0 = $3 and if investors expect dividends to grow at a constant compound annual rate of (1) – 6%, (2) 0%, (3) 2%, or (4) 14%? Round your answers to the nearest cent.

Stanford Rosenberg

 Stanford Rosenberg Computing wants to establish an assembly line for producing a new product, the Personal Digital Assistant (PDA). The tasks, task times, and immediate predecessors for the tasks are as follows: Rosenberg’s goal is to produce 180

PDAs per hour. a) What is the cycle time? b) What is the theoretical minimum for the number of workstations that Rosenberg can achieve in this assembly line? c) Can the theoretical minimum actually be reached when workstations are assigned? 9.13 Sue Helms

Appliances wants to establish an assembly line to manufacture its new product, the Micro Popcorn Popper. The goal is to produce five poppers per hour. The tasks, task times, and immediate predecessors for producing one Micro Popcorn Popper are as follows:

a) What is the theoretical minimum for the smallest number of workstations that Helms can achieve in this assembly line? b) Graph the assembly line and assign workers to workstations. Can you assign them with the theoretical minimum? c) What is the efficiency

of your assignment? 9.15 The following table details the tasks required for Indiana-based Frank Pianki Industries to manufacture a fully portable industrial vacuum cleaner. The times in the table are in minutes. Demand forecasts indicate a need to operate

with a cycle time of 10 minutes. a) Draw the appropriate precedence diagram for this production line. b) Assign tasks to workstations and determine how much idle time is present each cycle. c) Discuss how this balance could be improved to 100%. d) What is

the theoretical minimum number of workstations?

Fundamental of multinational Finance

Mini Case Yanzhou (china) Bids for Felix Resources (Australia) 1 When should stockholders doubt their own company’s support of a friendly acquisition? 2 What is your assessment of the stipulation placed on the acquisition by the Australian government? 3 Which of the various valuation techniques do you find the most and least useful? 4 Do you think the offer is a good one? Should Quillan take it?

The chromatograph

New-Project Analysis The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm’s R&D department The equipment’s basic price is $150,000, and it would cost another $22,500 to modify

it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $67,500. Use of the equipment would require an increase in net working capital (spare parts inventory) of $6,000. The machine would

have no effect on revenues, but it is expected to save the firm $45,000 per year in before-tax operating costs, mainly labor. The firm’s marginal federal-plus-state tax rate is 30%. a. What is the Year-0 net cash flow? If the answer is negative, use minus

sign. $ b.What are the net operating cash flows in Years 1, 2, and 3? Round your answers to the nearest dollar. Year 1 $ Year 2 $ Year 3 $ c.What is the additional (nonoperating) cash flow in Year 3? Round your answer to the nearest dollar. $ d.If the project’s

cost of capital is 10%, should the chromatograph be purchased?

Contribution in Kind

In each of the following scenarios, an organization receives a contribution in-kind. Prepare journal entries, as necessary, to give them accounting recognition. For each, tell why you made an entry or why you did not. 1)A local not-for-profit art museum

receives advertising for its yearly benefit from radio station WLOU. The airtime would have cost the museum $1,000. 2)Volunteers for ‘‘Breakfast on Bikes,’’ a voluntary health and welfare organization, deliver hot meals to the elderly three times a week. Each

of the ten volunteers works about six hours per week. All of the volunteers have permanent jobs with pay averaging $36.10 an hour. 3)Lynn Simms, a local CPA, maintains the books and records of her church. Although her normal billing rate is $120 per hour,

she accepts no payment from the church. She works on church matters approximately four hours a week. 4)A construction company allows a not-for-profit community association to use its bulldozer at no cost to clear land for a new baseball park. If the association

had to rent the bulldozer it would have incurred costs of $2,400.

Managerial Tasks in Strategy Execution (GOOGLE, INC)

While companies must tailor their strategy-executing approaches to their particular situation, there are eight managerial tasks which are common elements in executing strategies. Review the eight components of strategy execution and develop a PowerPoint presentation which applies each of these components to an organization of your choice.  Include at least three visual elements such as charts or graphs to complement your presentation.

Consider the following while developing your PowerPoint presentation:

  • Discuss what is involved in performing the eight key managerial tasks that shape the process of implementing and executing strategy.
  • Explore building resource strengths and organizational capabilities including: marshaling resources, instituting strategy-facilitating policies and procedures, adopting best practices, installing operating systems, and tying rewards to the achievement of good results.
  • Explain what role a company’s culture plays in executing these managerial tasks.

Present your findings in an 8-10 slide PowerPoint presentation. Use the notes section to clarify your work.  Cite your sources and apply APA standards for writing style to your presentation.

Fundamental of multinational Finance

Mini Case Yanzhou (china) Bids for Felix Resources (Australia) 1 When should stockholders doubt their own company’s support of a friendly acquisition? 2 What is your assessment of the stipulation placed on the acquisition by the Australian government? 3 Which of the various valuation techniques do you find the most and least useful? 4 Do you think the offer is a good one? Should Quillan take it?

compute the Weighted Average Cost of Capital

Based on the information provided below, compute the Weighted Average Cost of Capital (CO 7).

Acme International Capital Sources Required
Return rates
Common Stock and Retained Earnings  $  400,000 8%
Preferred Stock  $  100,000 7%
Corporate Bonds  $  300,000 10%
Corporate tax rate

Managerial Finance Assignment

It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks you to do the following:

  1. Describe his working capital practices, including his methods of capital budgeting analysis techniques.
  2. Analyze the potential pitfalls in his capital budgeting practices that George should be aware of.
  3. Develop a simple statement of cash flows for George’s Trains using any information gleaned from the video. What areas of improvement do you recommend? Provide at least three references from the Ashford University Library or other scholarly sources to support your recommendations.

In a three- to five-page paper (excluding the title and reference pages), respond to George’s request for advice in detail. The paper should be properly formatted in alignment with APA 6th edition formatting.

NEEDS TO BE 100% ORIGINAL WORK! WILL BE CHECKED FOR PLAGIARISM!

View the following Video:

http://searchcenter.intelecomonline.net/playClipDirect.aspx?id=4870EEC7664070BB9D6744FDA7325EE44F45E0E47862343D60FAA8E3325D1A8

Challenges faced by finance Managers

Reflecting on the focus and content of this course budgeting, what is an important challenge facing the financial management of organizations today, and how would you go about addressing it? Explain.

Principles of Finance Final

The chosen company for the paper is the Coca Cola Company.

8 to 10 pages in length.

The Final Project will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report either recommending or not recommending purchase of the company stock.
Research Tip: The “Mergent” database in the Ashford University Library contains company profiles and financial information for publicly traded companies and their competitors.  To access this database enter the Ashford Library and select “Find Articles and More” in the top menu panel. Next, select “Databases A-Z” and go to section “M” for “Mergent”. For help with using Mergent, use Mergent Online Quick Tips.
For help with reading an annual report access this handy guide from Money Chimp.
The completed report should include:

  1. An introduction to the company, including background information.
  2. A complete and thorough financial statement review.
  3. Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the next year.
  4. Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
    1. Liquidity
    2. Financial leverage
    3. Asset management
    4. Profitability
    5. Market value
  5. A calculation of Return on Equity (ROE) using the DuPont system.
  6. Assessment of management performance by calculating Economic Value Added (EVA).
  7. A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.

This report should be eight to ten pages long (excluding title page and reference pages) using APA 6th edition formatting guidelines. Support your findings and recommendations with evidence from at least five scholarly resources, such as the textbook, industry reports, and articles from the Ashford University library.

Writing the Final Paper

The Final Paper:

  1. Must be eight to ten double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide.
  2. Must include a cover page that includes:
    1. Title of paper
    2. Student’s name
    3. Course name and number
    4. Instructor’s name
    5. Date submitted
  3. Must include an introductory paragraph with a succinct thesis statement.
  4. Must address the topic of the paper with critical thought.
  5. Must conclude with a restatement of the thesis and a conclusion paragraph.
  6. Must use at least five scholarly resources from the Ashford University Library.
  7. Must document all sources in APA style, as outlined in the approved APA style guide.
  8. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

Three Type Cash Budget

1) What types of companies might have responsibility centers?

A Responsibility Reporting System Involves preparation of a report for each level of responsibility in the company’s organization chart. It

begins with the lowest level of responsibility and moves upward to higher levels. This permits management by exception at each level of responsibility, and each higher level can obtain the detailed report for each lower level.

The reports are summarized as they move up the line, until upper managers have the summary reports from the manager below them.

Responsibility reporting allows for comparative evaluations. These rankings provide facts , data and incentives for managers to control costs.

What are the three types of responsibility centers? What is unique about each?

————————————————

2) What is the difference between forecasting and budgeting?

Managers are always looking for ways to predict sales, expenses and to be prepared for anything that can affect operations. There are different

techniques that can help with this.

Financial planning models are mathematical models of the master budget that can react to any set of assumptions about sales, costs, and product

mix.

Budgetary analysis is more applicable for analyzing the variances between expected and actual results. Futuring is an effective technique to examine historical events and to project future events.

An important factor considered by sales forecasters is competitors activities.

What else would sales forecasters be interested in?

—————————————————–

3)

There are different types of budgets that go into the master budget. We started out by looking at the individual types-cash, travel, etc. These

are usually easy to identify since many of experience with these. Now, these accounts will be classified into the two types- the operating

budget and the financing budget. This is similar to making classifications for the financial statement accounts. The operating budget consists

of individual budgets that result in the preparation of the budgeted income statement , and it is used to establish goals for sales and

production personnel.

What is included in the financing budget and what statement is the information used for?

——————————————————-

4) Aside from the cash budget, what are some of the multitude of different budgets that comprise the Master Budget?
The cash budget is similar to the statement of cash flows. It shows the beginning and ending cash balances. There are 3 sections- cash

receipts , cash disbursements, and financing. Sound familiar? it is a breakdown of where cash came in and where cash went out. The difference

here is that a budget is expected cash inflows, expected cash outflows and expected borrowing and repayments. Preparing and following a cash

budget contributes to more effective cash management. It shows managers the need for additional financing before actual need arises and it

indicates when excess cash will be available.

Please show a sample cash budget. Use a business that is familiar to you!

Tax Planning Research

Analyzing Risk

Assignment 2: Required Assignment 2—Analyzing Risk (Prof Van Wells)

Assignment 2: Required Assignment 2—Analyzing Risk

 

In this assignment, you will write an executive summary analyzing the exchange risks, country risks, and political risks the company executive team needs to be aware of in building a manufacturing facility in Brazil. Your summary will also provide a recommendation of the location, the company should select for building a new manufacturing facility. In support of your recommendation, you will refer to the analysis performed and include all calculations.

 

In addition, for this assignment, using the information in your executive summary, you will create a PowerPoint presentation which will include your recommendation of where to build the new facility, the supporting analysis for your recommendation, and the risks involved in building a new facility in Brazil.

 

Scenario:

 

Your employer, GBATT, headquartered in the United States of America, has decided to expand operations into Brazil. Although the decision to expand has been made, the CFO has asked for an analysis of the risks associated with the expansion. Your instructions are to analyze specific risks associated with building a manufacturing facility in Brazil. Include a description of each of the following types of risks and analyze their impact on the decision to build the new facility.

  1. Exchange risks
  2. Country risks
  3. Political risks

For the expansion, GBATT is exploring which of two possible approaches to take for constructing a new manufacturing facility in Brazil. In addition to analyzing the risks associated with the expansion, you have been asked to provide analysis for selecting the best approach for the new facility. The following is the information the CFO provided to you to assist in your analysis.

GBATT’s current capital structure is:

  • 60% equity and 40% debt.
  • Stockholders require 6% return on their investment.
  • Bondholders require a 3% return.
  • The corporate tax rate is 35%.

GBATT has narrowed the choice between two facilities in two different parts of the country. Preliminary analysis has been completed and an estimate of the future net cash flows for each choice has been provided. The original cash flows were provided in U.S. dollars. Dollars are in thousands.

 
Year Choice A Choice B
0 ($15,000) (10,000)
1 2,000 1,500
2 5,000 4,000
3 6,000 5,000
4 6,000 5,000
5 4,000 3,000

 

After completing the risk analysis, use the information from the chart above to complete the following:

 

  1. Calculate GBATT’s WACC.
  2. Using the WACC and the above cash flows, calculate the NPV of each project.
  3. Justify the importance of knowing a company’s WACC and NPV.
  4. Recommend the facility to build based on the NPV.
  5. Use current exchange rates to convert the NPV’s to the Brazil real.

 

Note: Exchange rates can be found at Yahoo Finance and other Internet sites.

 

Write a 4–5-page paper in Word format. In addition, create a 7–9-slide PowerPointpresentation. Utilize at least six scholarly sources in your research. Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation.

 

Apply APA standards to citation of sources. Use the following file naming convention for the word document LastnameFirstInitial_M7_A2a.doc. For the PowerPoint presentation, use LastnameFirstInitial_M7_A2b.ppt.

 

Grading Criteria Proficient Maximum Points
Analyze specific risks associated with building a manufacturing facility in Brazil. Include a description of each of the following types of risks and how they may affect the decision to build the new facility.

  • Exchange risks
  • Country risks
  • Political risks
Analysis is complete, accurate, and specific. All three types of risks are described and an accurate analysis of how they affect the decision to build the facility is included. 56
Calculate GBATT’s WACC. WACC is correctly calculated. 40
Using the WACC and the above cash flows, calculate the NPV of each project. The NPV is correctly calculated. 40
Justify the importance of knowing a company’s WACC and NPV. Justification is clear, accurate, and complete. 48
Recommend the facility to build based on the NPV. Recommendation is clearly formulated. Justification of the recommendation is appropriate. 48
Use current exchange rates to convert the NPV’s to the Brazil real. Conversion is accurate. 36
Writing Standards
Write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources (i.e. APA); and display accurate spelling, grammar, and punctuation. Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation. 32

Strategic Financial Plan

FIN 486 Week 5 Learning Team Assignment Strategic Financial Plan

Create the financial portion of the strategic plan. The plan must include 3 years of income statements, balance sheets, and cash flow statements.

 

Write a memo of no more than 1,050 words that explains the plan’s major assumptions and identifies areas of risk. The memo must include the following:

  • A review of cash flow statements and a recommendation of implementing new short-term working capital strategies on long-term cash flow
  • An explanation of corporate risk mitigation techniques used in capital budgeting
  • An analysis of the effect of a company’s capital structure on strategic financial planning and how it affects risk

Refer to the Mergent Online database available in the University Library for financial plan examples.

 

Format your memo consistent with APA guidelines.

Help with Finance Paper

The specific objective of this critical assignment is to assure that students of business have a sufficient capacity of skills to conduct an organizational-examination of all procedures and strategies in the money management field, and convey effectively their own philosophy which could become the foundation of an investment organization. This exercise will provide students with the opportunity to integrate and apply theory to practice. Preparing students to develop a comprehensive investment plan and analyst presentation where they will be able co communicate investment goals and strategic objectives, risk measurement and control methods, investment philosophy and directives, quantitative and qualitative factors to be used in investment selection etc..

 

For the purpose of this exercise, students will choose a well known investor/portfolio manager (i.e. Warren Buffet, David Einhorn, Kenneth Griffin, Carl Icahn, Howard Marks or William Ackman etc.) for which they will conduct an investment and portfolio management analysis. The analysis of the money manager should culminate with students creating an in depth analysis of the personality, and methods applied by the manager chosen. Students will be evaluated on the depth, and scope of the analysis as well as its applicability to an investment portfolio.

 

The specific components of the proposed analysis should include:

  • Introduction and history (brief introduction to the manager and his/her background)
  • Education and professional history (where did the manager go to school, how was his/her financial education started and prepared him/her as a portfolio and investment manager)
  • Investment strategies used and materials read by the manager (What books and materials were of influence in the managers methods of portfolio management, and how were the managers investment  strategies developed throughout their career)
  • Investment and portfolio management philosophy of the manager and application of it (what strategies are taken by the manager, like mitigation of risk, research and analytics, active or inactive investing, diversification or concentration, etc.)
  • Success analysis (analyzing positions taken and the success of portfolio management and  investments of the manager)
  • Conclusion and application of investment and portfolio management methods.

 

The assignment will address the following components:

Section 1: Introduction and History

  • Description of the upbringing of the portfolio manager chosen
  • Analysis and reflection of how this history influences the manager’s mind set and investment characteristics.

Section 2: personal Culture/Education and Strategy

  • Describe the manager’s culture, and based on this culture the strategy he/she takes in business.
  • Education and influential personalities that built the investment thesis and portfolio management styles of the manager.
  • Books, research and materials read by the manager that helped build his/her investment theory and portfolio management style.

Section 3: Investment Management

  • What is the management culture?
  • What is the type of analysis carried out on the manager’s investments and Portfolio management?
  • What are some well-known successful investments and portfolio management done by the manager?

 

Section 4: Application

  • Describe an application plan for the analyzed methodologies of investment and portfolio management.
  • Analyze skills required to carry out this investment strategy and portfolio management styles.
  • Analysis of current positions and possible future investments and portfolio management strategies based on the methods used by the manager and write an investment thesis and portfolio management strategies for at least 4 investments and portfolio management based on this body of work.

 

 

The written paper is to be typed single –spaced, 1’ margins, Ariel and 11-point font, page length between 10-12, with correct spelling and grammar, proper citation, references, with a cover page and organized with headings. The instructor’s approval of the topic is required.

 

The following Library resources and web-sites could assist students in conducting the research to do the Critical Assignment:

 

Lynn Library Sources

ABI/INFORM

Academic OneFile

Academic Search Premier

Biography In Context

Bloomberg Station

Business Source Complete

Campus Research: News and Law — U.S. (Powered by Westlaw)

Data monitor

General Business File ASAP

Hoover’s Company Profiles

LexisNexis

ProQuest

Reference USA & OneSource

Research Library Core

 

Websites:

www.businessweek.com

www.forbes.com

www.wsj.com

Performance Drinks Case

The financial reporting to date has been done using absorption costing. That is to say that the manufacturing costs included direct materials, direct labor, variable manufacturing overhead and fixed manufacturing overhead. In this sense the Income Statements have historically reported Gross Margin. Following is a Monthly Income Statement, based on absorption costing, for Performance Drinks:

You begin to wonder if there would be any value in repackaging the income statement in a way that would report Contribution Margin as opposed to Gross Margin. You know that in order to report Contribution Margin you will need to understand your costs as variable and fixed. Unfortunately the general ledger does not specifically report costs as variable and fixed. You remember learning that regression analysis can be used to generate data that can be used to create a total cost equation. With the total cost equation we can understand our total cost as the sum of fixed costs and variable costs. After doing some research your collect the following data related to overhead and possible causal factors:

Requirement #1

Using the data above, which has also been provided electronically in Excel, run the following regression analyses:

• Linear regression analyzing total overhead cost and units sold

• Linear regression analyzing total overhead cost and machine hours used

• Multiple regression analysis analyzing total overhead cost along with both units sold and machine hours used

Requirement #2

Based on the results from the three regression analyses determine which correlation provides the best estimate of the total cost equation. Explain why you selected the correlation that you did.

Requirement #3

Write out the total cost equation using the results from the multiple regression test.

Requirement #4

Create a “Contribution” formatted income statement using the results from the multiple regression test. Your selling price per unit and your direct material cost per unit and your direct labor cost per unit and your fringe benefits all come from the original “Traditional” income statement. Use the following additional information regarding machine hours, used by each product, to compute variable overhead.

Reference the following sales volumes, by product, for your cost allocation related to units sold. This data will help you calculate variable overhead.

Use the following template as a guide for the format of your “Contribution” Income Statement:

Requirement #5

Compute the following:

• Break-even point in units

• Break-even point in sales dollars

• Targeted profit point in units (use $50,000 as your targeted profit point)

• Margin of Safety

Requirement #6

A new customer has surfaced. That customer has asked you to consider producing a special one-time order for them. This special order would require a modification to the recipe that will slightly increase the variable cost per unit. Furthermore, there would be a small fixed cost addition. The details for the order as follows:

Conduct a differential analysis regarding this special order. Would you accept this order under the conditions provided? Explain and defend your position.

Requirement #7:

Your management team has asked you to consider investing in a new piece of equipment. The details of that investment opportunity are following:

The discount rate for this project is 5%. Compute the following:

• Net Present Value

• Internal Rate of Return

Would you recommend investing in this new piece of equipment? Explain and defend your position.

Gonzales Corporation

Presented below is information related to Gonzales Corporation for the month of January 2014. Cost of goods sold $208,000 Salaries and wages expense $ 61,000 Delivery expense 7,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 13,000 Rent expense 20,000 Sales revenue 350,000 Instructions Prepare the necessary closing entries.

Daniel LLC

Daniel LLC incurred the following cost in the month of October:

Material $55,000

Labor $46,000

Factory Overhead $23,000

There was no beginning inventory. Ending work in process was 10,000 units at 50 percent complete. 15,000 units were completed and transferred out.

Prepare a cost of production summary for the month, assuming Daniel uses the average cost method of process costing.

.Consider the following cost of production summary for Carrigan Products for May:

Carrigan Products

Cost of Production Summary

For the Month Ended May 31, 20

Cost of work in process, beginning of month:

Materials $8,200

Labor 5,500

Factory overhead 2,000 $15,700

Cost of production for month:

Materials $24,000

Labor 17,600

Factory overhead 16,900 58,500

Total costs to be accounted for $74,200

Unit output for month:

Finished and transferred to finished goods 2,000

Equivalent units of work in process,

end of month (1,000 units, 80% completed) 800

Total equivalent production 2,800

Unit cost for month:

Materials [($8,200 + $24,000) ÷ 2,800] $11.50

Labor [($5,500 + $17,600) ÷ 2,800] 8.25

Factory overhead [($2,000 + $16,900) ÷ 2,800] 6.75

Total $26.50

Inventory costs:

Cost of goods finished and transferred to

finished goods during month: (

Cost of work in process, end of month:

Total production costs accounted for $74,200

  1. Prepare the journal entries to record the production activity.
  2. Prepare the Statement of Cost of Goods Manufactured for May
  3. Howard Corporation has two production departments. Curing has 12,000 units in process at the beginning of the period, three-fourths complete. During the period, 45,000 units were received from Crushing, 48,000 units were transferred to Finished Goods, and 9,000 units were in process at the end of the period, 2/3 complete. Cost information was as follows:

Cost of beginning work in process:

Cost in Crushing $21,640

Cost in Curing:

Materials 8,810

Labor 1,190

Factory overhead 2,420

Costs during the month:

Cost of goods received from Crushing $ 85,520

Cost in Curing:

Materials 53,830

Labor 10,690

Factory overhead 17,560

Total costs to be accounted for $201,660

  1. Determine the unit cost for the month in Curing.
  2. Determine the total cost of the products transferred to finished goods.
  3. Determine the total cost of the ending work in process inventory.

4.Information for Chaucer, Ltd. in July for the Prep Department,

the first stage of the production cycle, is as follows:

Conversion

Materials Costs

Beginning work in process $8,100 $6,200

Costs added during July 23,400 13,400

Total costs $31,500 $19,600

Goods completed 60,000 units

Ending work in process 15,000 units

Material costs are added at the beginning of the process.

The ending work in process is two-thirds complete as to conversion costs. How would the total costs accounted for be distributed using the average cost method?

  1. Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These units were 60 percent complete as to conversion costs. Materials are added in the beginning of the process. During the month of October, 38,000 units were started, and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs.
  2. Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method.
  3. Using the average cost method, determine the equivalent units for materials and conversion costs for the month of

October.

  1. Jim Company processes pork into three products—chops, bacon, and sausage. Production and selling price data follow:

Chops 100,000 lbs. $5.00/lb.

Bacon 210,000 lbs. $4.00/lb.

Sausage 410,000 lbs. $2.00/lb.

Pork is processed in the Processing Department. From the split-off point, bacon is smoked, sliced, and packaged in the Bacon Department. The cost incurred for these processes was $100,000. In addition, sausage was ground and formed into patties in the Sausage Department after the split-off. This process cost $60,000.

  1. If joint processing costs were $1,500,000, calculate the total cost of each product using the adjusted sales value method.
  2. Prepare the journal entries to (1) record the joint processing and movement of product out of the Processing Department after the split off, and (2) record the additional processing and completion of the bacon and sausage.
  3. Joleen Harmon, CPA, has two clients and uses a job order cost system. Client A requires 20 hours of partner time and 100 hours of staff time. Client B will use 12 hours of partner time and 75 hours of staff time. Partners are paid $85 an hour and bill support time at 50% of their hourly rate. Staffs are paid $25 an hour and bill support time at $20 per billable hour. What is the total charge to each of

Harris Corporation

Financial Statement Analysis

The following information relates to Harris Corporation

Account Current year Prior year

Account  Current year  Prior year

Net sales (all credit)  $520,125   $499,500

Cost of goods sold  $375,960   $353,600

Gross profit  $144,165   $145,900

Income from operations  $95,500   $79,900

Interest expense  $23,500   $19,500

Net income  $57,600   $51,600

 

Cash  $30,600   $15,900

Accounts receivable, net  $33,800   $23,200

Inventory  $42,000   $30,300

Prepaid expenses  $2,000   $1,500

Total current assets  $108,400   $70,900

 

Total long-term assets  $62,000   $38,000

Total current liabilities  $46,000   $41,600

Total long-term liabilities  $20,000   $22,700

Required:

  1. What is the acid-test ratio for the current year?
  2. What is the inventory turnover for the current year?
  3. What is days’ sales in receivables for the current year?
  4. What is the book value per share of common stock for the current year?
  5. What is the price-earnings ratio for the current year?
  6. What is the rate of return on total assets for the current year?
  7. What is the times-interest-earned ratio for the current year?
  8. What is the current ratio for the current year?

Financial Reporting Problem

Browse the Internet to acquire a copy of the most recent annual report for the publicly traded company.  One place to look is www.annualreports.com. (see materials for the link)  You can click on a company shown or browse for any publically traded company of your choice and download a PDF copy of the report.

 

Analyze the information contained in the company’s balance sheet and income statement to answer the following questions:

  • What are the company’s total assets at the end of its most recent annual reporting period? And why is this important?
  • How are the company’s assets classified?
  • Are the assets included under the company’s current assets listed in the proper order? Explain your answer.
  • How much cash and cash equivalents did the company have at the end of its most recent annual reporting period?
  • What are cash equivalents?
  • What are the company’s total current liabilities at the end of its most recent annual reporting period?
  • What are the company’s net revenues for the years reported (current and prior)?
  • What is the change in dollars in the company’s net income from its most recent annual reporting period to the previous annual reporting period?
  • Considering all the information you have gathered, why might this information be important to potential creditors, investors, employees, and so on?

 

Summarize the analysis in a 1,000- to 1,500-word paper in a Microsoft® Word document.

 

You MUST include a copy of the company’s balance sheet and income statement to earn credit for this assignment.

 

Format your paper and presentation consistent with APA guidelines.

Financial Accounting

Click here to download the selected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data.

  1. Determine the year-to-year percentage annual growth in total net sales.
  2. Based only on your answers to question #1, do you think the company achieved its sales goal of +10% annual revenue growth in 2009? Determine the target revenue figure, and explain why you do or do not feel that the company hit its target.

Next, consider Micro Chip’s Consolidated Statement of Operations for the year ended September 25, 2008. Download the file here and answer questions 1 and 2.

  1. Use the Percentage Sales Method and a 25% increase in sales to forecast Micro Chip’s Consolidated Statement of Operations for the period of September 26, 2008 through September 25, 2009. Assume a 15% tax rate and restructuring costs of 5% of the new sales figure.
  2. Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?

To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at the financial values. Students using Microsoft Excel must provide an adequate explanation of the methodology used to arrive at that answer.

Assignment Guidelines

  • Download the financial statements and consolidated statement of operations by clicking on the links above in the assignment description.
  • Analyze the statements and then answer the four questions listed in the assignment description.
  • Show all work including calculations and formulas. If applicable, provide a detailed explanation of how you used Microsoft Excel to arrive at your answers.
  • Organize your answers, mathematical calculations, and Microsoft Excel data into a Word document of 1–2 pages.

Your submitted assignment (120 points) must include the following:

  • A double-spaced Word document of 1–2 pages that contains your answers to the four questions listed in the assignment description, any calculations you performed, and all formulae that were used. Also, provide your Excel data table(s) along with an explanation of how you arrived at your answers if applicable.

Grading

You will be graded on the accuracy of your financial calculations as well as your demonstrated understanding of financial statement analysis.

Deliverable Length:  1-2 pages

JCP and Target SEC

Do some research on the history of the two companies (Target and JCPenney) and then write a paper that tells me what you have learned. What do they have in common?  How are the businesses different? This will take some deep digging.  Go into the company web sites and search through their various filings with the SEC. How big are their stores (in sq. ft.)? What are their sales per square foot? Why are they different? How much per square foot do they pay in rent?  Do they own the land?  If they don’t do you see any evidence that their leases are below current market rates?

Financial statement

Comprehensive Financial Analysis – Walt Disney World

Required:

Based on these financial statements, the company’s background, industry statistics, and other market and company information, prepare a financial statement analysis report covering the following points:

a. Executive summary of the company and its industry.

b. Detailed evaluation of:

(1) Short-term liquidity (current debt-paying ability).

(2) Cash forecasting and pro forma analysis.

(3) Capital structure and solvency.

(4) Return on invested capital.

(5) Asset turnover (utilization).

(6) Profitability and equity analysis. Note: You are expected to use a variety of financial analysis tools in answering (b). Your analysis should yield inferences for each of these six areas.

Page 693c. Comment on the usefulness of the financial statements of this company for your analysis.

d. How did accounting principles used in the financial statements affect your analytical measures?

e. Prepare a forecast of the income statement, balance sheet, and statement of cash flows for a five-year horizon and a terminal year in Year 6.

f. Estimate the value of your company’s common stock per share using the valuation analysis and procedures described in the Comprehensive Case.

Financial Accounting

A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be a depreciated straight line over the next 5 years. The new line will also require an additional net investment in inventory and receivables in the amount of $200,000.

Assume there is no need for additional investment in building the land for the project. The firm’s marginal tax rate is 35%, and its cost of capital is 10%.

To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values.

Assignment Guidelines

  • Using the information in the assignment description:
    • Prepare a statement showing the incremental cash flows for this project over an 8-year period.
    • Calculate the payback period (P/B) and the net present value (NPV) for the project.
    • Answer the following questions based on your P/B and NPV calculations:
      • Do you think the project should be accepted? Why?
        • Assume the company has a P/B (payback) policy of not accepting projects with life of over 3 years.
      • If the project required additional investment in land and building, how would this affect your decision? Explain.

Your submitted assignment (130 points) must include the following:

  • A double-spaced Word document of 2–3 pages that contains your calculation values, your complete calculations, any formulae that you used, and your answers to the two questions listed in the assignment guidelines.
    • You must include your explanation of how you used Excel for your calculations if applicable.

Grading

You will be graded on the accuracy of your value calculations as well as your demonstrated understanding of payback periods, net present value, and cash flows.

 

Deliverable Length:  2-3 pages

 

Analyze project analysis and evaluation processes

Evaluate capital project techniques and cost of capital valuation

Execute concepts of NPV and cash flow analysis

Corporate Finance

BUS 320 Comprehensive Problem 3 Version C

Use what you have learned about the time value of money to analyze each of the following decisions:

Decision #1:   Which set of Cash Flows is worth more now?

Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive:

Option A: Receive a one-time gift of $ 7500 today.  

Option B: Receive a $1000 gift each year for the next 10 years. The first $1000 would be

   received 1 year from today.                

Option C: Receive a one-time gift of $14,000 10 years from today.

Compute the Present Value of each of these options if you expect the interest rate to be 3% annually for the next 10 years.   Which of these options does financial theory suggest you should choose?

Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

      

Compute the Present Value of each of these options if you expect the interest rate to be 7% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

       Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

 

Compute the Present Value of each of these options if you expect to be able to earn 10% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

       Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

Decision #2 begins at the top of page 2!

Decision #2: Planning for Retirement

Tom and Tricia are 22, newly married, and ready to embark on the journey of life.   They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start investing $2400 per year to prepare for retirement. Tricia just told Tom, though, that she had heard that they would actually have more money the day they retire if they put $2400 per year away for the next 10 years – and then simply let that money sit for the next 35 years without any additional payments – then they would have MORE when they retired than if they waited 10 years to start investing for retirement and then made yearly payments for 35 years (as they originally planned to do).

Please help Tom and Tricia make an informed decision:  

Assume that all payments are made at the END a year (or month), and that the rate of return on all yearly investments will be 9% annually.

 

  1. How much money will Tom and Tricia have in 45 years if they do nothing for the next 10 years, then put $2400 per year away for the remaining 35 years?

 

 

 

  1. How much money will Tom and Tricia have in 10 years if they put $2400 per year away for the next 10 years?

 

b2)                 How much will that amount you just computed grow to if it remains invested for the remaining

35 years, but without any additional yearly deposits being made?

  1. How much money will Tom and Tricia have in 45 years if they put $2400 per year away for each of the next 45 years?

 

 

  1. How much money will Tom and Tricia have in 45 years if they put away $200 per MONTH at the end of each month for the next 45 years? (Remember to adjust 8% annual rate to a Rate per month!)

 

 

  1. If Tom and Tricia wait 25 years (after the kids are raised!) before they put anything away for retirement, how much will they to put away at the end of each year for 20 years in order to have $1,000,000 saved up on the first day of their retirement 45 years from today?

Trend Analysis & Ratio Analysis

Objective: Familiarize students with the application of ratio and trend analysis. 

This project allows students the opportunity to perform critical thinking, by addressing specific financial trends and industry comparisons for a company of their choosing.  This project will be a comparison/contrast paper that shows a demonstration of the application of financial analysis and critical thinking in a large organization.  The student will be performing trend analysis and industry comparisons on 3-4 years worth of financial statement data (whatever tells the story).

Trend Analysis & Ratio Analysis

Ratio analysis uses percentage or decimal calculations of comparison to at least two different sets of financial data.  You are comparing how one relates (compares) to another.  Decision makers use ratios because they illuminate relationships between financial data taken from the company’s statements.

Although ratio analysis can be used to evaluate financial performance, the number, by itself, does not reveal the entire story.  To take the analysis to the next level, one must engage in trend analysis.  Trend analysis utilizes the aforementioned ratios and shows the changes in those ratios, over time.  Stakeholders can use trend analysis to not only compare “this year” to “last year” for this company, but can compare each year to the industry as a whole and even to the number one competitor for benchmarking purposes.

When you are setting up your paper, it would help to group your ratios and analysis together by content area (profitability, debt management, asset utilization, liquidity, and market value ratios)

Deliverables

Choose a publicly traded, publicly held, U.S. company.  This means you need to pick a company that is public and has stock.    You will use a variety of sites to find your financial date.  Start with either Yahoo! Finance site or www.reuters.com. These two sites will allow you to capture one year of data for each of the two companies you are going to review as well as the industry ratios you will need. You will need to acquire annual reports for the company sites for years older than the most current year. You will need to review three – five years of financial information on this company, more years of data will produce a more thorough analysis.

Specific areas of analysis are noting major ratio categories and identifying whether the trend is up or down, whether that is good or bad, and why.  Once the data are gathered, analyzed, and trends revealed; the student will acquire the same information for a competitor within the same industry.  The same ratio and trend analysis will be gathered for the competitor.  A comparison will ensue, identifying specific strengths and weaknesses of various components of the financial statements.   Upon completion of the original company trend analysis and the competitor’s trend analysis, an analysis and trend comparison with the industry is required.  This will allow the student to demonstrate an understanding of financial ratios and what trends are present among two different companies in one industry, as well as, being able to determine the position of the industry and be able to project future trends and how the company being evaluated can budget for changes in the industry.

So . . . .what is required . . . .

  1. Your chosen company (financial ratios and trend analysis)
    1. Using the data provided at the Yahoo! Finance site, use the ratios in the textbook and determine the status of your chosen company based on those ratios.  Also, identify any trends you notice and what the impact might be if those trends continue.  The ratios you will be reviewing are the same ratios as you will find in chapter 3, page 95 of the text.  Note that some of these ratios may not be applicable to your company.  Some ratios are specific to certain types of firms.  Not all firms carry significant accounts receivable as an example.
  2. A competitor in the same industry (financial ratios and trend analysis)
    1. Using the data provided at the site, use the ratios in the textbook and determine the status of your chosen competitor based on those ratios.  Also, identify any trends you notice and what the impact might be if those trends continue.
  3. The industry as a whole; how does your chosen company compare and what evaluations can you make (predict) for future financial success?
    1. Review industry data and determine where these two companies fit within that industry.  Are they leaders/followers?  What does the future hold for this industry?
  4. Using your chosen company and the current conditions in the financial markets, assume the firm needs to raise a large amount of cash.  Compare the choices of raising these funds in the capital market (selling new shares of stock) versus the bond market (debt financing), and make a decision as to what is best and why.  Also, consider ethical implications of financial reporting and how it relates to acquiring additional investors and accessing markets for additional capital.
  5. Take one of the following positions and justify your decision:
    1. You are a banker who has been approached by this company to borrow a sum of money (you decide how much, and why).  Based on the company’s financials and its future business prospects, would you loan the money?  Why or why not.
    2. You are an investor with a large sum of money (or a company looking for an investment), and buying either the company or shares of stock in the company is being considered.  Determine, based on the company’s financials and its future business prospects, whether you will invest in this company or not.

There is no specific number of pages required to do this assignment, but past experience has shown it takes at least 8-10 pages of text to adequately complete this assignment.  This is a critical thinking assignment so all the specifics are not laid out in front of you.  You must research, assess, analyze, and strategize about the company you have chosen, the competitors, and the industry as a whole.

Trend Analysis & Ratio Analysis

Objective: Familiarize students with the application of ratio and trend analysis. 
This project allows students the opportunity to perform critical thinking, by addressing specific financial trends and industry comparisons for a company of their choosing.  This project will be a comparison/contrast paper that shows a demonstration of the application of financial analysis and critical thinking in a large organization.  The student will be performing trend analysis and industry comparisons on 3-4 years worth of financial statement data (whatever tells the story).
Trend Analysis & Ratio Analysis
Ratio analysis uses percentage or decimal calculations of comparison to at least two different sets of financial data.  You are comparing how one relates (compares) to another.  Decision makers use ratios because they illuminate relationships between financial data taken from the company’s statements.
Although ratio analysis can be used to evaluate financial performance, the number, by itself, does not reveal the entire story.  To take the analysis to the next level, one must engage in trend analysis.  Trend analysis utilizes the aforementioned ratios and shows the changes in those ratios, over time.  Stakeholders can use trend analysis to not only compare “this year” to “last year” for this company, but can compare each year to the industry as a whole and even to the number one competitor for benchmarking purposes.
When you are setting up your paper, it would help to group your ratios and analysis together by content area (profitability, debt management, asset utilization, liquidity, and market value ratios)
Deliverables
Choose a publicly traded, publicly held, U.S. company.  This means you need to pick a company that is public and has stock.    You will use a variety of sites to find your financial date.  Start with either Yahoo! Finance site or www.reuters.com. These two sites will allow you to capture one year of data for each of the two companies you are going to review as well as the industry ratios you will need. You will need to acquire annual reports for the company sites for years older than the most current year. You will need to review three – five years of financial information on this company, more years of data will produce a more thorough analysis.
Specific areas of analysis are noting major ratio categories and identifying whether the trend is up or down, whether that is good or bad, and why.  Once the data are gathered, analyzed, and trends revealed; the student will acquire the same information for a competitor within the same industry.  The same ratio and trend analysis will be gathered for the competitor.  A comparison will ensue, identifying specific strengths and weaknesses of various components of the financial statements.   Upon completion of the original company trend analysis and the competitor’s trend analysis, an analysis and trend comparison with the industry is required.  This will allow the student to demonstrate an understanding of financial ratios and what trends are present among two different companies in one industry, as well as, being able to determine the position of the industry and be able to project future trends and how the company being evaluated can budget for changes in the industry.
So . . . .what is required . . . .

  1. Your chosen company (financial ratios and trend analysis)
    1. Using the data provided at the Yahoo! Finance site, use the ratios in the textbook and determine the status of your chosen company based on those ratios.  Also, identify any trends you notice and what the impact might be if those trends continue.  The ratios you will be reviewing are the same ratios as you will find in chapter 3, page 95 of the text.  Note that some of these ratios may not be applicable to your company.  Some ratios are specific to certain types of firms.  Not all firms carry significant accounts receivable as an example.
  2. A competitor in the same industry (financial ratios and trend analysis)
    1. Using the data provided at the site, use the ratios in the textbook and determine the status of your chosen competitor based on those ratios.  Also, identify any trends you notice and what the impact might be if those trends continue.
  3. The industry as a whole; how does your chosen company compare and what evaluations can you make (predict) for future financial success?
    1. Review industry data and determine where these two companies fit within that industry.  Are they leaders/followers?  What does the future hold for this industry?
  4. Using your chosen company and the current conditions in the financial markets, assume the firm needs to raise a large amount of cash.  Compare the choices of raising these funds in the capital market (selling new shares of stock) versus the bond market (debt financing), and make a decision as to what is best and why.  Also, consider ethical implications of financial reporting and how it relates to acquiring additional investors and accessing markets for additional capital.
  5. Take one of the following positions and justify your decision:
    1. You are a banker who has been approached by this company to borrow a sum of money (you decide how much, and why).  Based on the company’s financials and its future business prospects, would you loan the money?  Why or why not.
    2. You are an investor with a large sum of money (or a company looking for an investment), and buying either the company or shares of stock in the company is being considered.  Determine, based on the company’s financials and its future business prospects, whether you will invest in this company or not.

There is no specific number of pages required to do this assignment, but past experience has shown it takes at least 8-10 pages of text to adequately complete this assignment.  This is a critical thinking assignment so all the specifics are not laid out in front of you.  You must research, assess, analyze, and strategize about the company you have chosen, the competitors, and the industry as a whole.

Stock Valuation

Finance project

The project submission consists of five exhibits and a five-page-maximum paper, this is waht you would need to submit. And the requirement is in the attachment.

OVERVIEW

The project is an exercise in stock valuation. Working in groups of five, you will pick a company and

estimate the value of its stock using the methods we’ve discussed in class. The project has two parts:

(1) You’ll estimate the company’s beta by doing a regression analysis of the company’s stock returns

compared to those of the market. This will involve finding and downloading the needed data from the

internet, using Excel to perform a regression analysis, evaluating the reasonableness of the result and

considering any issues or adjustments that need to be addressed.

(2) You’ll research the company and its industry and develop your estimate(s) of the value of the

company’s stock. You’ll use your beta estimate and apply the three major methods we’ve discussed in

class:

(a) Dividend discount model

(b) Free cash flow

(c) Multiples.

You’ll compare the estimates you get from these methods with each other and with the stock’s current

market price and indicate what you conclude about the value of the company’s stock.

The company you choose should be a publicly traded dividend-paying company other than General

Electric (which we’ll be using as an example in class).

PROJECT SUBMISSIONS

Written presentation: One written presentation from each group, due no later than June 8 before class

starts. (Brief paper – five pages maximum – plus several exhibits. See next page for outline.) If the

written presentation is submitted by email, it must be in a single .pdf file.

Class presentation: One or several members of each group will present the group’s findings to the class

on June 8 (15 minutes per group). The presenters will show the class the exhibits from the group’s

written presentation and comment on (1) the results of the different approaches to valuing the company,

(2) the group’s overall conclusion and (3) interesting things the group discovered in doing its analysis.

Note: No new/additional exhibits are needed for the class presentation.

OTHER NOTES

ï‚· Consistent with the university academic integrity policy, your submission should be your original

work; sources of data and any material which isn’t original should be documented.

 My LIFEfolio: Each group member should put a copy of the group’s presentation in her/his My

LIFEfolio.

 

WRITTEN SUBMISSION OUTLINE

ï‚· Brief paper (five pages maximum):

 Provide a concise assessment of the company and its industry, including the outlook for

profitability and growth.

 Discuss the factors which you think are most important in determining the company’s value and

what you assumed about those factors.

 Referring to a summary exhibit (see below), discuss the results of your valuations and what you

conclude about the company’s value. Do you think it’s a good investment?

ï‚· Exhibits showing your analysis (see next page for details):

1: Summary exhibit showing results of the different valuation methods, with dotpoints

summarizing your conclusions

2: Beta, kE and WACC results

3: Dividend discount model valuations

4: Free cash flow to the firm (FCFF) valuation

5: Multiples valuation

ï‚· Attachments

 Copy of Excel worksheet showing data used for beta regression and Excel regression output

(graph/trendline, ANOVA table)

 Copies of one or two exhibits from the source data about the company which you use (e.g.,

Value Line, Yahoo Finance, etc.) – not a lot, just enough to provide the reader some context.

EVALUATION

Projects will be evaluated relative to:

Identification and understanding of key issues 5 points

Analysis and recommendations:

Understanding, analysis of company financial situation and business

Grasp and use of relevant theory

Discussion of alternative approaches, assumptions – their pros and cons

Discussion of open issues, uncertainties

10 points

Clarity of presentation

Concise

Easy to understand

Logical order

Clear writing

5 points

Total 20 points

 

EXHIBITS

You should prepare five exhibits which address the points listed below. (You may address other points

you think are important as well.) A good way to format the exhibits is to have the calculations on the left

and the related discussion on the right; if you would like to take a different approach to formatting, we

should discuss it in advance.

Calculations Discussion (using dotpoints)

1: Summary exhibit

Table recapping values from:

ï‚· Constant growth dividend discount model

ï‚· Multi-stage dividend discount model

ï‚· Free cash flow to the firm (FCFF) model

ï‚· Multiple comparisons

What causes the differences among the results?

How do your results compare to the stock’s current

market value?

What are your conclusions about the value of the

company?

2: Beta and discount rates

ï‚· Beta

 Regression result

 Adjustments you made to regression result

ï‚· Beta equation, kE

ï‚· WACC

Beta:

Rationale for any adjustments

How does your beta compare to Yahoo’s,

Value Line’s? What might cause any

difference?

WACC assumptions (basis):

Capital structure

Interest rate on debt

Tax rate

3: Dividend Discount Models

ï‚· Constant growth (show formula, inputs/result)

ï‚· Multi-stage growth (ditto)

What are the most important factors determining

the stock’s value? How did you estimate those

factors?

Which model works better for this company?

4: Free Cash Flow to the Firm

ï‚· Table showing FCFF estimates

ï‚· Value per share calculation

What are the most important factors determining

the stock’s value? How did you estimate those

factors?

5: Multiples

ï‚· Table showing the multiples you used and the

resulting values

How did you decide which multiples to use?

How did you use them, e.g., to evaluate results

from the dividend discount and FCFF models? to

directly estimate the company’s value?

What do they tell you?

Finance Homework

Resource:  Financial Statements for the Steel Dynamics, Inc. company

Review Steel Dynamics, Inc. financial statements from the past three years.

Calculate the financial ratios for the assigned company’s financial statements, and then interpret those results against company historical data as well as industry benchmarks:

  • Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).
  • Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.

Write a 500 word summary of your analysis.

Show financial calculations where appropriate.

Finance Homework

Milwaukee Surgical Supplies Inc. sells on terms on terms of 3/10, net 30. Gross sales for the year are $1,200,000, and the collections department estimates that 30 percent of the customers pay on the tenth day and take discounts, 40 percent pay on the thirteenth day, and the remaining 30 percent pay, on average, 40 days after the purchase. (Assume 360 days per year.)

  1. What is the firm’s average collection period?
  2. What is the firm’s current receivables balance?
  3. What would be the firm’s new receivables balance if Milwaukee Surgical toughened up on its collection policy, with the result that all non-discount customers paid on the 30th day?
  4. Suppose that the firm’s cost of carrying receivables was 8 percent annually.

How much would the toughened credit policy save the firm in annual receivables carrying expense?  (Assume that the entire amount of receivables had to be financed.)

Business Ethics

FIN 486 Week 1 Individual Assignment Business Ethics

FIN 486 Week 1 Individual Assignment Business Ethics

 

Write a paper of no more than 1,000 words, describing the demise of Enron Corporation® and WorldCom®.

 

Identify major factors that led to the dissolution of Enron Corporation® and WorldCom®.

 

Explain specific ethical violations in accounting practices at Enron Corporation® and WorldCom®.

 

Describe the role of business ethics in strategic financial planning.

 

Cite readings and at least one other source, including the Internet.

 

Format your paper consistent with APA guidelines.

Long-Term Financial Needs

FIN 486 Week 3 Individual Assignment Long-Term Financial Needs

Examine financial information for Huffman Trucking, within the Virtual Organization web link located on the course materials page. Read the New Strategic Directions Memo. Calculate external funds needed (EFN) to create the pro forma balance sheet. Calculate the following year-end ratios for the pro forma statements:

 

Profit as a percentage of sales

Current ratio

Asset ratio

Prepare a 500-word financial report for the CEO containing the EFN calculation, the ratio calculations, and an explanation of how you reached the calculations. Explain which income statement and balance sheet items you assumed were variable instead of fixed.

Personal Finance

Personal Finance

Submit a 350- to 700-word summary addressing the following questions:

 

  • How would you explain the value of financial planning to friends or family?
  • Which topics will you discuss with children in your life?
  • Which topics do you feel are most important for adults to fully understand? Explain why you chose these topics.
  • What financial goals have you set for yourself? How will you meet them?  Explain what steps you will take to begin saving toward these goals.

Learning Team Assignment Strategic Plan and Presentation

STR 581 Week 6 Learning Team Assignment Strategic Plan and Presentation

JC Penney Strategic Plan

 

Individual Strategic Plan and Presentation

 

Resource: Implementation, Strategic Controls, and Contingency Plans assignment with facilitator feedback

 

Complete a 2,800- to 3,500-word strategic plan for your organization.

 

Update your plan to incorporate facilitator feedback from the draft versions submitted in previous weeks. Include the following:

 

· Table of contents

 

· Executive summary, with a 2-page maximum

 

· Company background, organizational mission, vision, and value statements

 

· Note. For a start-up, this should focus on the backgrounds and accomplishments of key anticipated management personnel. The goal is to convince the investor that these individuals are trustworthy and successful.

 

· Environmental scan

 

· Review of Week Four strategies and a recommendation for the best strategy for your organization

 

· Implementation plan: Include objectives, functional tactics, action items, milestones, tasks, resource allocation, and a deadline. In addition, analyze key success factors. Include a budget and forecasted financials, including a break-even chart.

 

· Risk management plan, including contingency plans for identified risks

 

Prepare a 6- to 10-slide Microsoft® PowerPoint® presentation with speaker notes. Your audience will play the board of directors or a venture capital firm. The focus is to sell your recommendations to the board or venture capital firm, and obtain approval for funding your plan.

Format your plan and presentation consistent with APA guidelines

Johnson Controls Capital Investments

Visit the Website of Johnson Controls Inc., located at http://www.johnsoncontrols.com, and review its 2012 financial forecasts. You can also find useful financial information about the company in this report titled, “2011 Business and Sustainability Report“. According to the forecasts, Johnson Controls will increase capital investments to approximately $1.7 billion. More than 70% of the company’s capital expenditures in 2012 are associated with growth and margin expansion opportunities.

Write a five to six (5-6) page paper in which you:

  1. Suggest a methodology to supplement the traditional methods for evaluating the capital investments of Johnson Controls in the emerging markets to reduce risk providing a rationale of how risk will be reduced.
  2. Assess the potential impact of inflation on planned capital investments in China and examine approaches for an accurate evaluation of the investments. Suggest how this knowledge may impact management’s decisions.
  3. Contrast the modifications you would make in evaluating the projects to increase internal capacity in North America to evaluating expansion projects in the global market and how this information will impact the decisions made related to expansion.
  4. Examine the benefits of using sensitivity analysis in evaluating the projects for Johnson Controls and how this approach can provide a competitive advantage for the company.
  5. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Plan and evaluate capital investments.
  • Use technology and information resources to research issues in managerial accounting.
  • Write clearly and concisely about managerial accounting using proper writing mechanics

Financial softwares

BSA/310 WEEK 5

Your company has been hired as consultants for Bubble Films, a Hollywood, California-based company that produces documentary films. The company has 150 employees located in three states. Roughly 20% of the employees work virtually from home. Bubble Films has 200 personal computers, five servers, and one mainframe computer. You are charged with making recommendations for the following categories of software: Financial software: accounting and cost analysis Business intelligence software Your deliverable must be a 15-slide Microsoft® PowerPoint® presentation. For each category, provide the following information: Type of software List of vendors and products reviewed, from at least three categories Product selected Reason the product was selected Brief description of the software, including cost: Discuss the possibility of integrating with other software being recommended. Advantages and disadvantages of using the software Information about the vendor: How long have they been in business? How large are they in terms of number of employees, revenues, and so on? What is their reputation? The first slide must serve as the title page, the second slide must contain an executive summary, and the final slide must list APA formatted references. All slides must contain speaker notes.

Fundamentals of Budgeting

fundamentals of Budgeting

you have been hired as an executive director of a small nonprofit organization. Among your many duties are to determine an annual budget and develop a fiscal plan for the organization.

For this assignment, you must develop a 2-page spreadsheet that you will deliver to the director and staff containing an annual generic annual budget for the RTWMTC.  Using an income of 800,000 per year, you must answer the following questions:

  • How many employees does the RTWMTC company have, and what is the breakdown of their salaries (you may choose)?
  • What additional costs does RTWMTC have (include utilities, lease/mortgage, phone, etc.)?
  • What is the surplus or deficit of the RTWMTC?

Then create a one page word document and Explain why it is important for an organization, a project, or a department to have a budget.  Must be APA format.

Public budgeting

Public budgeting question & Essay

Discussion Question: How, specifically, do the tax structure, rate(s), and environment affect public budgeting and finance? How do taxes determine public policy priorities?

 

Unit II Essay Compose an essay of no less than 500 words discussing the topics covered in this unit. Your essay should include a description of at least three jobs that budgetary and financial management professionals may perform in the public sector. Discuss how these types of jobs are similar or different than the prevailing theory within the field of budgetary or financial management. Also, discuss how the practice of budgeting and financial management is influenced by external, environmental, economic, and political factors. Finally, explain how technology has influenced the practice of budgeting and financial management. You must use at least one scholarly source in addition to your textbook to complete this assignment. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA style.

 

Statement of Cash Flows

Problem 13-7A-Rajesh Company-statement of cash flows

Problem 13-7A

Presented below are the financial statements of Rajesh Company.

Rajesh Company

Comparative Balance Sheets

December 31

Assets 2014 2013
Cash $36,880 $19,710
Accounts receivable 32,050 19,660
Inventory 29,110 20,140
Equipment 59,660 77,250
Accumulated depreciation—equipment (29,580 ) (23,440 )
   Total $128,120 $113,320
Liabilities and Stockholders’ Equity
Accounts payable $28,290 $ 16,200
Income taxes payable 7,150 8,140
Bonds payable 27,430 32,330
Common stock 18,660 14,420
Retained earnings 46,590 42,230
   Total $128,120 $113,320

Rajesh Company

Income Statement

For the Year Ended December 31, 2014

Sales revenue $241,690
Cost of goods sold 176,700
Gross profit 64,990
Operating expenses 23,870
Income from operations 41,120
Interest expense 3,180
Income before income taxes 37,940
Income tax expense 8,920
Net income $29,020

Additional data:

1. Depreciation expense is 14,010.
2. Dividends declared and paid were $24,660.
3. During the year equipment was sold for $9,720 cash. This equipment cost $17,590 originally and had accumulated depreciation of $7,870 at the time of sale.

(a) Prepare a statement of cash flows using the indirect method.

(b) Compute free cash flow.

Free cash flow

Stock Option Plans and the Issuance of Debt

Stock Option Plans and the Issuance of Debt

Compare the two (2) main accounting issues associated with stock option plans.  Make one (1) recommendation to FASB for overcoming obstacles in accounting for stock option plans.   Provide one (1) specific example of the way in which your recommendation could improve the accounting for stock option plan.

Suppose management is in need of large sums of cash to finance the construction of a new manufacturing plant and is considering issuing debt to obtain the cash.  However, management is unsure of whether to issue convertible debt or debt issued with stock warrants.  You are the senior accountant at your company, and management has asked for your help.  Explain the similarities and dissidence between convertible debt and debt issued with stock warrants.  Also, recommend to management the type of debt which it should issue.  Provide a rationale for your recommendation.

Cost Accounting and Management Decisions

Cost Accounting and Management Decisions

Conduct research on a U.S. manufacturing company that produces two (2) or more products.

Write a five to six (5-6) page paper in which you:

Describe the company researched, indicating the primary products manufactured.

Examine the effect of changes in the variable cost / fixed cost structure of the company on cost-    volume analysis decisions by managers.

Analyze the current cost system used by the company to determine manufacturing costs and examine the benefits of using an activity-based cost system over the traditional system for management decisions.

Compare the company’s sales and cost of sales forecast to the actual sales and costs of sales in the current financial statement. Evaluate strategies management can implement in response to changing conditions affecting budgetary planning and forecasting.

Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Examine the assumptions of cost-volume-profit analysis.

Discuss the allocation of costs to divisions, plants, departments, contracts, and products.

Analyze activity-based costing and activity-based management.

Analyze the advantage of budgeting, the preparation of a master budget, and other forms of planning.

Use technology and information resources to research issues in cost accounting.

Write clearly and concisely about cost accounting using proper writing mechanics.

financial crisis of 2008

Conduct an independent online search regarding the financial crisis of late 2008. In a 1-2 page Word document, address the following prompts:

Briefly summarize the events that led to the financial crisis.

How did sub-prime mortgages factor into the crisis?

In what ways did companies like HSBC Holdings PLC contribute to the financial crisis? What decisions did they make that led to the crisis?

What future impacts will this crisis have on the market? On buyers? On corporations?

Stock Performance and Equity Investments

Stock Performance and Equity Investments

In your assignment, discuss the following:

  • How are the stocks in your watch list performing since you first selected them? Speculate on reasons for each stock’s performance and justify your analysis with research about the firms and the stock market in general.
  • Do any of the firms selected have preferred stock or convertible investments available? If so, how do these investments compare and contrast to the common stock ones you have been following?

Your assignment should be a minimum of 2 written pages and utilize APA formatting. In-text citations and a reference page should also be included.

Managing Financial Resources and Budgeting Processes

For this assignment, assume the role of Chief Financial Officer (CFO) of a multi-complex health care organization that includes rehabilitation facilities, ambulatory care centers, and outpatient surgical centers. Write a 1,750- to 2,100-word paper in which you address financial resources and budgeting processes as CFO of your organization. Your paper should include the following: Develop a strategic budget goal for each department in your organization (Rehab, Ambulatory Care, and Outpatient Surgery). Justify each goal and explain its role in maintaining the department’s budget. Identify the major components to be included on an income and expense budget for each department. Discuss the impact of performance measures on budgeting. Examine the role of policy, accountability, and monitoring in your budgeting process. Explain how your organization will adapt to financial profits or losses due to: The Affordable Care Act Centers for Medicaid and Medicare Services (CMS) Managed Care Pairs Format your paper consistent with APA guidelines.

Finance

Type of service: Writing from scratch
Work type: Research paper
Deadline: 6 June
Academic level: College (1-2 years: Freshmen, Sophomore)
Subject or discipline: Business Studies
Title: Closing realestate loans
Number of sources: 4
Provide digital sources used: No
Paper format: APA
# of pages: 7
Spacing: Double spaced
# of words: 1925
# of slides: ppt icon 0
Paper details:
Please choose a real estate finance topic identified in the text book or another topic relative to this course which has the potential to impact the buying, selling and finance of real estate. Prepare a paper of at least 7 pages discussing the topic. The 7 pages are in addition to your title and reference page. It must be in proper APA format. Upon completion, upload your work to the Assignments area of the classroom.

Jack Donaldson Finance Assignment

Jack Donaldson

13-1 NPV with Normal Cash Flows Compute the NPV for Project M and accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent. (LG13-3)

Project M

Time:    0              1              2              3              4              5

Cash flow            2$1,000                $350       $480       $520       $600       $100

13-2 NPV with Normal Cash Flows Compute the NPV statistic for Project Y and indicate whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 percent. (LG13-3)

Project Y

Time:    0              1              2              3              4

Cash flow            2$8,000                $3,350   $4,180   $1,520   $300

13-3 NPV with Non-Normal Cash Flows Compute the NPV statistic for Project U and rec-

ommend whether the firm should accept or reject the project with the cash flows shown

below if the appropriate cost of capital is 10 percent. (LG13-3)

Project U

Time:    0              1              2              3              4              5

Cash flow            2$1,000                $350       $1,480   $520       $300       2$100

13-4 NPV with Non-Normal Cash Flows Compute the NPV statistic for Project K and rec-

ommend whether the firm should accept or reject the project with the cash flows shown

below if the appropriate cost of capital is 6 percent. (LG13-3)

Project K

Time:    0              1              2              3              4              5

Cash flow            2$10,000 $5,000 $6,000 $6,000 $5,000     2$10,000

13-5 Payback Compute the payback statistic for Project B and decide whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 percent and the maximum allowable payback is three years. (LG13-2)

Project B

Time:    0              1              2              3              4              5

Cash flow            2$11,000             $3,350   $4,180   $1,520   $0           $1,000

13-6 Payback Compute the payback statistic for Project A and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable payback is four years. (LG13-2)

Project A

Time:    0              1              2              3              4              5

Cash flow            2$1,000                $350       $480       $520       $300       $100

13-7 Discounted Payback Compute the discounted payback statistic for Project C and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable discounted

payback is three years. (LG13-2) Time:  0              1              2              3              4              5

Cash flow            2$1,000                $480       $480       $520       $300       $100

13-8 Discounted Payback Compute the discounted payback statistic for Project D and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (LG13-2)

Project D

Time:    0              1              2              3              4              5

Cash flow            2$11,000             $3,350   $4,180   $1,520   $0           $1,000

13-13 PI Compute the PI statistic for Project Z and advise the firm whether to accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent.

(LG13-6)

Project Z

Time:    0              1              2              3              4              5

Cash flow            2$1,000                $350       $480       $650       $300       $100

13-14 PI Compute the PI statistic for Project Q and indicate whether you would accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 percent. (LG13-6)

Project Q

Time:    0              1              2              3              4

Cash flow            2$11,000             $3,350   $4,180   $1,520   $2,000

Thesis/Dissertation chapter

Type of service: Writing from scratch
Work type: Thesis/Dissertation chapter
Deadline: 7 June
Academic level: College (3-4 years: Junior, Senior)
Subject or discipline: Finance
Title: The financial analysis oil company socar
Number of sources: 10
Paper format: MLA
# of pages: 71
Spacing: Double spaced
# of words: 19525
# of slides: ppt icon 0

Financial report

Writing from scratch
Financial report
7 Jun, 08:10 am
Academic level: College (3-4 years: Junior, Senior)
Subject or discipline: Finance
Title: Financial report
Number of sources: 3
Provide digital sources used: No
Paper format: APA
# of pages: 14
Spacing: Double spaced
# of words: 3850
# of slides: ppt icon 0
Paper details:
Please review rubric and final project instructions and let me know if you can help. i have listed 14 pages as that is the estimate needed to be written. this excludes financial reports that have to be included.

Financial Report

Type of service: Writing from scratch
Work type: Coursework
Deadline: N/A
Academic level: College (1-2 years: Freshmen, Sophomore)
Subject or discipline: Accounting
Title: Individual Federal Income Tax
Number of sources: 0
Provide digital sources used: No
Paper format: APA
# of pages: 1
Spacing: Double spaced
# of words: 275
# of slides: ppt icon 0
Paper details:
Book: Federal Taxation 2015 for Individuals (28th edition). Pope & Anderson

Do Chapter 7 – Problem 63 (Tax Return

Gainesboro Machine Tools Corporation

Please review the case and answer question 1 and question 5 base on the case below.

For Question 1, our team decided to borrow more for the company.

About 1-2 pages for each cases

Gainesboro Machine Tools Corporation

In theory, to fund an increased dividend payout or a stock buyback, a firm might invest less, borrow more, or issue more stock. Which of those three elements is Gainesboro’s management willing to vary, and which elements remain fixed as a matter of the company’s policy?

  1. What happens to Gainesboro’s financing need and unused debt capacity if:
  2. no dividends are paid?
  3. a 20% payout is pursued?
  4. a 40% payout is pursued?
  5. a residual payout policy is pursued?

Note that case Exhibit 8 presents an estimate of the amount of borrowing needed. Assume that maximum debt capacity is, as a matter of policy, 40% of the book value of equity.

  1. How might Gainesboro’s various providers of capital, such as its stockholders and creditors, react if Gainesboro declares a dividend in 2005? What are the arguments for and against the zero payout, 40% payout, and residual payout policies? What should Ashley Swenson recommend to the board of directors with regard to a long-term dividend payout policy for Gainesboro Machine Tools Corporation?
  2. How might various providers of capital, such as stockholders and creditors, react if Gainesboro repurchased its shares? Should Gainesboro do so?
  3. Should Swenson recommend the corporate-image advertising campaign and corporate name change to the Gainesboro’s directors? Do the advertising and name change have any bearing on the dividend policy or the stock repurchase policy that you propose.

Financial DNA

Based on Financial DNA book by Hugh Massie

Case Study #1. Bill is a young professional who comes to you for help. He earns a very good salary (+$100,000) and is trying to figure out what to do with all his money. He has a checking and a savings account and no debt. He comes to you for help on how to handle his finances.

How would you apply the principles outlined in Modules One through Three to help Bill with his finances?

Papers should be 3-4 pages in length, include a title page, and follow APA formatting. Use the link below to submit your assignment.

 

Case Study #2. Jack and Susan are a newlywed couple who have come to you for financial advice. They have recently gotten married and are trying to figure out how to handle their money together. As you ask them questions you quickly realize they know very little about personal finances.
How would you apply the principles outlined in Modules One through Five to help Jack and Susan with their finances? What concepts would be most important for them to learn at this stage of their marriage, and why?

Papers should be 3-4 pages in length, include a title page, and follow APA formatting. Use the link below to submit your assignment.

Case Study #3. Janet is a young single who has come to you for financial help. She earns a salary of $45,000 per year working as a teacher and rents a three bedroom apartment not far from her school ($1200/month). She lives alone and likes the added space two extra bedrooms provide – one is used as a guest room and the other is used as an office. She’s a bit vague when you ask about her spending, and you discover she does not have a budget. Additionally you find that she has over $30,000 is school loans and $12,000 in credit card debt. She wants to buy a new car, but is having a difficult time figuring out how to pay for it. She has no savings to draw from to help her with this purchase.

How would you apply the principles outlined in Modules One through Seven to help Janet with her finances?

Papers should be 3-4 pages in length, include a title page, and follow APA formatting.

Financial reporting training

You have been asked to create a training PowerPoint presentation on different financial reports used in an office or hospital setting.  These reports include charge-masters, fee schedules and claims management.  Create a presentation that discusses what these reports are, what they are used for and provide an example of each report.  Your presentation should be at least 7 slides, not including the cover slide and references, and should contain speaker notes to show what you would say during the training.  Use your textbook as a reference as well as outside sources as needed.

Financial Management

Question 1 (25 marks)

Don is the production manager of Temple Limited, a famous toilet roll manufacturer in Hong Kong. Currently he is reviewing the possibility of replacing the old machinery in order to boost production volume. The old machinery was purchased 4 years ago with a total cost of $4,800,000. It has a 10-year economic life with 6 years remaining with zero salvage value. If this machinery were to be sold today, it would be worth $2,880,000. The company uses the straight line depreciation method on all production machinery. The firm’s cost of capital is 12% with marginal tax rate of 25%.

The new machinery is proposed by ECG Consulting, a well-known business consulting firm in the manufacturing field. The purchase price of the proposed machinery would be $5,400,000. In addition, the company would have to incur $300,000 shipping and installation costs and $600,000 investment in net working capital. The economic life of the new machinery is 6 years with zero scrap value. It is expected that the new machinery can reduce before-tax operating expenses by $880,000 every year. The company had paid $75,000 to ECG Consulting to obtain the assessment report regarding this replacement recommendation.

Answer the following questions:

  1. a  What is the initial outlay associated with this proposed purchase?
    (9 marks)
  2. b  What are the annual after-tax cash flows associated with this proposed purchase, for years 1–5? (7 marks)

Assignment File 1

page1image20328 page1image20488 page1image20648

2 FIN B280 Introduction to Financial Management
c What is the amount of after-tax cash flow that should appear in

year 6? (4 marks)

d Calculate the net present value (NPV) of this replacement decision. Would you accept or reject the purchase of the new machinery?

(5 marks)

Question 2 (25 marks)

Black Rocket is a private equity firm investing in hi-tech projects. The company uses 12% discount rate for its investments. Recently Black Rocket has two potential projects on hand, code named Project X and Project Y. The firm is now considering investing in one project amongst these two candidates. The projected after-tax cash flows of the two projects are as follows:

page2image7128

page2image9656

After-tax cash flows ($)

Year

page2image12000

Project X

page2image13104

Project Y

0

page2image16128

-3,000,000

page2image17056

page2image17528

-3,000,000

page2image18456

1

780,000

600,000

2

page2image23184

780,000

page2image24112

page2image24584

800,000

page2image25512

3

780,000

1,300,000

4

page2image30240

780,000

page2image31168

page2image31640

1,600,000

page2image32568

5

420,000

6

page2image36840

420,000

page2image37768

page2image38232 page2image38712

7

420,000

8

page2image43248

420,000

page2image44176

page2image44640 page2image45120

Answer the following questions:

  1. a  Using the equivalent annual annuity (EAA) method, advise Black Rocket on which project the firm should choose. (17 marks)
  2. b  Define the time disparity problem and the unequal life span problem and their implication in project selection. Explain which problem appears in this case. (8 marks)

 

Assignment File 3

page3image912

Question 3 (25 marks)

Chinatown Gas Corporation (CGC) is a utility company providing liquefied petroleum gas (LPG) to households in Hong Kong. The business of CGC has been stagnant in recent years and the board of directors wants to increase the company’s revenue by investing overseas. One of the candidate projects is a diamond mining business in Sierra Leone in West Africa. The management believes this project can bring a huge profit to the company in future.

As a business analyst of the CGC, you have been asked by the board to determine an appropriate discount rate to evaluate this mining project. As a student of FIN B280, you would like to identify the Weighted Average Cost of Capital (WACC) of your company first. The information about the current capital structure of CGC is as follows:

  1. i  3,600,000 shares of common stock with a par value of $1.0, currently trading at $25 per share.
  2. ii  1,500,000 shares of 6% preferred stock with a par value of $50. These preferred stocks are currently trading at $40 per share in the market.
  3. iii  80,000 units of 10-years, 8% p.a. coupon bonds with semi-annual interest payment. The bond has exactly 3 years to maturity with par value of $1,000. The current quotation of this bond is 104.3, which means 104.3% of its par value. Bonds with similar risk, interest term and maturity are currently selling at 6.40% p.a. yield to maturity.
  4. iv  An $80,000,000 long-term bullet payment loan with Open Bank. The loan was borrowed a year ago with 7% p.a. borrowing rate. The market value of this bank loan is not available.
  5. v  The expected market return is 10%, the risk-free rate is 3% and beta of CGC’s common stock is 0.88 respectively. The marginal tax rate is 25%.

Answer the following questions:

  1. a  What is the capital structure of CGC on a market value basis? Please make assumptions in your calculation if necessary. (6 marks)
  2. b  Evaluate the weighted average cost of capital (WACC) of Chinatown Gas Corporation. (15 marks)
  3. c  Discuss in detail whether Chinatown Gas Corporation should use its WACC as the benchmark to evaluate the diamond mining project.

    (4 marks)

 

Question 4 (25 marks)

Kiwi Production is a manufacturer of electrical appliances. The company is preparing a financial plan for the coming year and has the following independent kitchen appliance projects under consideration:

page4image2928

Project

page4image5296

Initial investment ($ million)

page4image6584

Internal rate of return (%)

A

page4image10096

220

page4image11024

page4image11496

20.50

page4image12424

B

250

17.00

C

page4image17152

170

page4image18080

page4image18552

22.00

page4image19480

D

260

17.50

E

page4image24560 page4image24720

190

page4image26056 page4image26216

18.30

Assume the above projects have the same risk as that of the company and the cost of capital (WACC) of Kiwi Production is 18%. The chief financial officer estimates that earnings after tax in this financial year will be $170 million. Kiwi Production has 8 million shares outstanding, and the board would like to maintain a debt-to-equity ratio (D/E) of 4.

Answer the following questions:

  1. a  Based on the above information, determine the major criteria for Kiwi Production to select project(s). With such criteria, which project(s) should be accepted by the company? Calculate the firm’s total planned capital expenditure for the coming year. (8 marks)
  2. b  Suppose Kiwi Production follows a residual dividend policy. What will be the company’s dividend per share? (8 marks)
  3. c  Provide TWO major disadvantages of a strict residual dividend policy. How does a compromise dividend policy differ from a strict residual dividend policy? (9 marks)

Yahoo Beta and Return Stock Analysis

FIN 5620 – Investments
Project 1: Beta and Return.
This homework must be completed individually.
The objectives of this exercise:
1.To access and download stock and index price data from yahoo.com.
2.To discern the difference between a real-time closing price and an adjusted price.
3.To discover how yahoo.com calculates beta for an individual stock.
4.To replicate the yahoo.com calculation for twenty firms in the S&P 500 index, tabulate the results and report your findings.
Learning Outcomes:
Students should be able to:
1.Identify individual stocks in the S&P 500 index and discuss the composition of the S&P 500 index.
2.Collect financial data including closing stock prices and adjusted stock prices.
3.Estimate beta from historical data.
4.Tabulate regression results and discuss empirical findings.
Guidelines:
1.You will be assigned twenty (20) stocks from the current S&P 500 index. You must use these 20 stocks (or, more precisely, the ticker symbols) to download data from yahoo.com. Go to yahoo.com, then Finance, then type in your ticker symbol. Next choose Historical Prices from the tabs on the left. Tag “Monthly” then choose the appropriate dates (to be determined below). Click Get Prices, scroll to the bottom of the page and download to spreadsheet (it is actually saved as a ‘.csv’ file, but it will open okay in Excel). The last month of return data should be March 2015. Be sure to use end-of-month data! Yahoo might print a beginning of month date in the monthly output, but it should be end of month. To check this, look at the daily data and verify that the last day of the month is used in the monthly spreadsheet (it should be if you wait until after the sample period to collect your data).
2.You must determine how exactly yahoo.com calculates historical beta, then replicate their calculations. This requires the use of regression software (or functions in Excel, if you know how to do that). Note, you must calculate returns first. Is the data sorted correctly – in time order? If not, you must sort your stock prices and market prices so that the oldest prices are first, then calculate returns.
Answer the following questions:
a.How, exactly, does yahoo.com calculate their beta? How many months of return data do they use? How many months of price data do you need? How do you know that you and Yahoo used the same data period?
b.Should you use closing price or adjusted price when calculating returns? Why?
c.What is the market proxy? What ticker did you use for your market proxy?
3.After calculating returns for your twenty stocks and the market, you must calculate beta for each of your twenty stocks. Create a Table showing the following: Ticker, Company Name, yahoo beta, calculated beta, intercept and r-square from your regressions.
4.Do your regression results match yahoo.com results? Why or why not?
Output:
You must submit a brief write-up of your results. Your paper should be detailed enough so that someone else could pick up your paper and replicate your results. So, you will need a brief introduction describing your data sources, how you manipulated the data, how you calculated returns, how you calculated beta, a Table, and a brief summary and discussion of your findings. In total, you must submit:
1.Your write-up as a Word file including the Table described above in Guideline #3 and your answers to the various questions.
2.An Excel spreadsheet (one sheet), properly formatted, containing the ticker symbol, closing price, adjusted price and dates (dates should be the same for each ticker) for each of your twenty stocks and your market proxy.
3.Another Excel spreadsheet, properly formatted, detailing how, exactly, you calculated the results in your Table (i.e., replicate the detailed findings for your stocks). The two Excel worksheets should be in one file with two different labeled worksheet tabs. Alternatively, you may use 20 Excel sheets named with the ticker symbol if you wish to combine the date, ticker symbol, closing price, adjusted closing price, and calculations and/or regressions separately for each of your 20 companies.
MY stocks:

DLTR Dollar Tree Inc
D Dominion Resources Inc
DOV Dover Corp
DOW Dow Chemical
DPS Dr Pepper Snapple Group
DUK Duke Energy Corp
DNB Dun & Bradstreet Corp
ETFC E*TRADE Financial Corp
DD E. I. du Pont de Nemours and Company
EMC EMC Corp
EOG EOG Resources
EQT EQT Corporation
EMN Eastman Chemical Co
ETN Eaton Corp plc
ECL Ecolab Inc
EIX Edison Intl
EW Edwards Lifesciences Corp
EA Electronic Arts
EMR Emerson Electric Co
ENDP Endo International

 

Evaluative Tools and Capital Investment

Evaluative Tools and Capital Investment The operations management team now feels that it can effectively evaluate the cost and benefits of…

Evaluative Tools and Capital Investment
The operations management team now feels that it can effectively evaluate the cost and benefits of long- term investments in operating assets that are critical to its growth plans. To ensure consistency within the organization, the general manager asks the accounting personnel to prepare a brief set of guidelines for all capital investment decisions.
Considering yourself as the Genesis’ accountant serving the operations management team, do the following:
Create a set of capital investment guidelines for evaluating planned projects in terms of financial performance.
Provide guidelines supported by evaluative tools, such as NPV, IRR, MIRR, payback, and breakeven analysis.
Identify the most appropriate methods for comparing projects of different sizes.
Write your initial response in 4–5 paragraphs. Apply APA standards to citation of sources.

Financial Management Challenges and Ethics

Ashford BUS 401 Week 1 Assignment: Financial Management Challenges and Ethics

Find at least two articles from the Ashford University Library that highlight and discuss two of the biggest challenges facing financial managers today. One of the articles should be about the challenge of maintaining ethical financial integrity and the other article should be on any other challenge that a financial manager may face (e.g., competition, foreign markets, government intervention, etc.).
Summarize your findings from the articles in a two- to three-page paper (excluding title and references pages). The paper should be formatted according to APA style as outlined in the Ashford Writing Center.
Be sure to properly cite your selected articles using APA style.

Ratio Analysis Memo Berry's Bug Blasters

ACC 291 Ratio Analysis Memo Berry’s Bug Blasters

ACC 291 Ratio Analysis Memo Berry’s Bug Blasters. So I have the some information contained in my selected organization’s balance sheet and income statement that needs to calculate the following: Here is the current data
Attachment: 205409_statements.docx
Here is previous data
Attachment: 205429_income_statements.pdf
Attachment: 205454_balance_sheets.pdf
Attachment: 205519_cash_flow_statements.pdf
Liquidity ratios
Attachment: 205259_acc291_homeworktemplate.xls
Current ratio
Acid-test, or quick, ratio
Receivables turnover
Inventory turnover
Profitability ratios
Asset turnover
Profit margin
Return on assets
Return on common stockholders’ equity
Solvency ratios
Debt to total assets
Times interest earned
Show your calculations for each ratio.
Create a horizontal and vertical analysis for the balance sheet and the income statement.
Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions:
What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?
Which users may be interested in each type of ratio?
What does the collected data reveal about eh performance and position of the company?
Format your memo consistent with APA guidelines.

CORPORATE RESEARCH PAPER

FIN 456/556 CORPORATE RESEARCH PAPER
Required of all students
Due at the time of our final exam. This paper should have 5-8 pages of narrative (3,000 – 4,000 words), plus exhibits. Place particular emphasis on risk management and offshore borrowing/investing activities. Every student must use a different publicly traded, multinational firm as the subject for their paper. Here are some examples:
 
Dow Chemical
Ford Motor Co.
GE
Honda
IBM
Intel
Merck
Pfizer
P&G
Samsung
Toyota
 
Required:

  1. Introduction
  • What is the global reach of the corporation? Detail the number of overseas subsidiaries, the geographic breakdown of sales, assets and income, and their involvement in international trade.
  • What is the company’s Foreign Exchange (FX) Risk Management Policy?
  • Is centralized or decentralized?
    • Head Office, Regional Offices, or Operating Subsidiaries
  • What types of exposure are measured and managed?
    • Translation, Transaction and Economic or Operating Exposure
  • How has “Other Comprehensive Income”, an equity account, changed

in recent years?

  • What hedging transactions are used for each type of exposure?
    • Forward Contracts, Futures, Options and Swaps
    • Cash Flow, Fair Value and Net Investment Hedges
  • How long a time frame is used to manage this risk?
    • One year, several years etc.
    • How does the company use derivatives for funding, investing, and other price risks?

What is the extent of the company’s offshore and Euromarket funding and investing activities?
Conclusion: How effective is this firm’s international financial strategy? How have they created value with it? How have they destroyed value with it? What do you believe will be the future result of continuing to follow this strategy?
Sources: You should have at least three sources, plus the company’s published financial report & associated notes. List any sources of data or information used in creating this paper. Make sure to use the company’s 10-k as one of the sources.

Company Stock Watch & Analysis

Please use the attached document, using Target and Walmart for the two stocks required that is listed below.
This assignment is the third part of the course project. In this assignment, you will utilize the two stocks within the same industry that were selected in Module 03.

Required

For the two firms, locate and download their latest annual report. Annual reports are typically found within the ‘Investor Relations’ section of a firm’s website.
Utilizing the data from each of the firm’s annual reports, calculate the following ratios:

  • Liquidity Ratios – Current Ratio and Quick Ratio
  • Activity Ratios – Inventory Turnover, Receivables Turnover, Days Sales Outstanding, Fixed Asset Turnover, and Total Asset Turnover
  • Profitability Ratios – Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on Assets, and Return on Equity
  • Leverage Ratios – Debt/Net Worth and Debt Ratio
  • Coverage Ratios – Times-Interest-Earned

You may utilize a Microsoft Excel document to calculate the ratios for each firm.
After calculating the ratios for each of the firms, present the results and provide a brief analysis on the financial health of each firm.
Your assignment should be a minimum of 3 written pages in addition to the ratio calculations and utilize APA formatting. In-text citations and a reference page should also be included.

Company Selection and Stock Watch
No. Date Stock Name Stock Symbol Current Price Exchange Traded On Financial Facts
1 4/23/2015 Target Corporation TGT $81.93 NYSE EPS is 2.55
DPS is 2.08
Price/Book value is 3.72
2 4/23/2015 Walmart WMT $79.18 NYSE P/E Ratio is 15.68
EPS is 5.05
DPS is 1.96
3 4/23/2015 Google GOOG $547.00 NASDAQ P/E Ratio is 26.06
EPS is 20.99
Price/Book value is 3.51
4 4/26/2015
5 4/26/2015

Using Financial Ratios to Assess Organizational Performance Answer

HSA 525 Assignment 2 Using Financial Ratios to Assess Organizational Performance Answer

Using the financial statements from your selected health care organization in
Assignment 1, develop a financial plan for the next three (3) years.
Write a four to five (4-5) page paper in which you:
1.Suggest the financial ratio that most financial analysts would use to
evaluate the financial condition of the company. Provide support for your
rationale.
2.Speculate on the organization’s ability to meet its financial obligations as
they come due. Provide support for your rationale.
3.Based on your ratio analysis, determine whether the profitability trends are
favorable or unfavorable and explain your rationale.
4.Using financial ratio analysis, predict whether or not the company will be
viable in five (5) years based on its performance over the past three (3) years.
Provide support for your prediction.
5.Use at least two (2) quality academic resources. Note:
Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
•Be typed, double spaced, using Times New Roman font (size 12), with one-inch
margins on all sides; citations and references must follow APA or
school-specific format. Check with your professor for any additional
instructions.
•Include a cover page containing the title of the assignment, the student’s
name, the professor’s name, the course title, and the date. The cover page and
the reference page are not included in the required assignment page
length.

Should the U.S. Convert to a Zero Personal Income Tax

Income tax refers to a tax imposed on an individual or a corporate   who earns income by the government. In simpler terms is the tax paid on income. Personal income taxes are based on the total earnings of a person while corporates tax usually taxes net profit of a company. Income tax is usually progressive. This means that as one earns more money, a higher proportion of income is taxed. While the income tax is considered to distribute wealth and also provides a stable income stream for the government, its implementation is a bit complex particularly when trying to regulate the rich and the corporations (Jake, 2006). Income tax also lowers the households’ standard of living when they are living by their means. As a result, some countries impose zero income tax to its citizens. Some of these countries include Oman and Bahrain;
Like most Middle East nations, Bahrain depends on oil for income. Petroleum production and processing is the country’s most lucrative field, contributing up to 60% of the total exports and 70% of the government revenues and 11% of the country’s GDP. There is no income tax imposed on individuals, but the state charges indirect charges; Stamp duty on real estate transfers 3% of the value of the property. No tax on capital gains, estates, interest, dividends, sales royalties or fees. No withholding tax is imposed in Bahrain. However, citizens contribute 7% of their salaries towards social security benefits (Li et al., 2012).
Just like Bahrain, Oman relies on its extensive petroleum reserves and natural gas for its revenue. Revenues from oil account   for 70% of Oman’s total revenue amount to $13.7 billion in 2011.   Although the country does not impose income or capital gains taxes, Sole proprietors are subject to tax at a rate of 12% for   profit amount in excess of RO 30,000. Citizens are supposed to pay 6.5% of their monthly salaries towards social security benefits (Li et al., 2012). Oman does not, levy value added tax, net worth tax, estate tax or gift tax.
It will be almost impossible for US to adopt the tax system used in Oman and Bahrain. The tax system of any country is determined by its economic structure, its public service needs, capacity to administer taxes and many other factors. Unlike the two countries, United States has relatively low natural resources to generate enough revenue that can suffice the socially desired objectives (Cengage, 2014). Income from natural resources and revenue from the tax on consumption will not be sufficient to fund government operations. Lack of sufficient revenue will result in large budget deficits. Deficits have undesirable macroeconomic consequences such as increasing inflation and crowding out private investment.
By adopting zero income tax system, the US government will improve incentives for the investment of capital in the country by both the US residents and the foreigners. Multinational corporations based in the country would have incentives to shift investment and operations to the country so as to benefit from the lower income tax rates. Where bilateral tax agreements apply, the US multinational operating in foreign markets will receive tax treatment comparable to the tax treatments of foreign companies based in the country. That is, if a foreign company enjoys zero corporate income tax in US, the same will still apply to US companies in foreign countries.
A zero income tax model will reduce the administrative and compliance cost for the government and taxpayers. It is estimated that the current taxpayers’ compliance costs amount to 13% per dollar of tax receipts (Claus, 2010). The cost of conformity per dollar would fall as a result of reduced incentives for income evasion since not income tax is implemented.   The high tax wages in the formal sector discourages many people from working in such area. Instead, they prefer working in the untaxed formal sector. The zero income incentives will encourage workers to work in formal sectors
Never the less, the zero income tax models will pose some challenges. First, United States uses their income tax systems to provide income to certain low-income people. As a result, the federal government might struggle raising enough revenue to provide income to such people. Income tax enhances equality by distributing wealth. Those who earn more are taxed more. By switching to zero income tax model, the gap between the rich and the poor will keep on widening. Lastly, the zero income tax system will not provide a steady income to the government.   The government will, therefore, struggle in mobilizing enough funds for developing infrastructures that require a lot of capital (Cengage, 2014).
The best tax plan for US is the one that creates economic pressure on its citizen. Fairness in the taxation system requires that those with the greatest capacity to pay more than those with lesser capacity to pay. A person’s income does not necessarily reflect what he/she owns. Let’s take a case of a fresh graduate who has just landed a well-paying job. He/she earns a large amount of money but not rich. Wealthy individuals might also have a little income but a high standard of living. The state should, therefore, switch to national sales tax. The national sales tax would eliminate many of the distortions associated with the current income taxes. The main objective of the national sales tax is that individuals to pay their fair share depending on what they spend (Murray et al., 2002). . Taxing consumption will encourage citizens to save and invest therefore stimulating production and economic growth. This tax system will increase efficiency and promote equity in the following ways.
First, if the income tax is eliminated, the Internal Revenue Service, as well as the large number of pages of tax code, would become obsolete. Persons will not be required to report their personal financial information to the government. People who live rich will be taxed on goods they choose to spend. The tax base should be wide to capture most good and services. This will help reduce distortions in good’s consumption. Few item such as gasoline, alcohol, and tobacco products may be taxed at a higher either because the demand for these goods is somehow unresponsive to taxation or for regulatory reasons. Basic goods such as clothes and food products may be taxed relatively low to favor the middle-class as well as low-income earners. This will, in a way promote equity. National sales tax should be set as low as possible. Whenever possible, a single rate of tax should be imposed on a broad-based instead and imposing differential rates on each segment. This will further increase efficiency (Murray et al., 2002).
The national sales tax plan will also help solve the problem of double taxation. Currently, a business must pay sales tax on raw material they use to create the products they sell, which are then taxed again. However, under the national sales tax,   items purchased directly can avoid tax and thereby avoid being taxed twice. The plan should also include an annual consumption allowance (Probate) to relieve poverty level Americans that provides a monthly check that would offset all their sales tax expenditures. The amount of allowance would be based on the poverty level guidelines and would ascend would increase for larger families. National sales tax plan will also make it easier for the government to predict tax revenues since consumption rates are much more stable than incomes (Claus, 2010). Estimates will, therefore, be accurate.
The best way in which the federal government can make up any shortfalls does not collect its targeted revenue is through the income tax is through appropriate design for a VAT adopted at the federal level. The VAT should be imposed on broadest consumption base. It should be consistent with the structure of the federal government and also maintain neutrality between public and private sector provision of goods and services (Caragata, 2008). Further, the VAT should adopt the credit-invoice method and impose at a single uniform rate. The VAT should be set at a rate high enough to raise sufficient revenue to suffice government expenditures, justify the administrative burden of the VAT on businesses and government and also discourage subsequent rate increases.
However, it would be impossible for the federal government to assess an excise tax on non-commercial states and local government services. Instead, the state and the local governments will be required to pay a VAT on the purchases but still receive a refund from the federal government for VAT paid.
Economists agree that a well-designed VAT imposes a lower excess burden than most of other taxes for any   given amount of revenue raised. Reducing the excess burden of taxation on the economy is an important way that the tax system can encourage growth. The system is also efficient as it does s not distort consumers’ choices among goods   and services and does not discourage savings or distort the allocation of capital (Caragata, 2008). The VAT has been adopted by   major developed countries expect the US. Thus the treasury Department and the IRS should study and apply best practices from around the world. Also, Most US multinational corporations have extensive experience in complying with VAT, and the current remit the taxes in most countries in which they operate.
 
References
Caragata, P. (2008). The Economic and Compliance Consequences of Taxation A Report on the   Health of the Tax System in New Zealand. Boston, MA: Springer US.
Claus, I. (2010). Tax reform in open economies international and country perspectives       Cheltenham: Edward Elgar.
Introduction to global business: Understanding the international. (2014). New york: Cengage       learning.
Jake, O. (2006). Fundamental reform of personal income tax, Paris: OECD.
Li, C., & Whalley, J., (2012). Indirect tax initiatives and global rebalancing, Cambridge, Mass.:    National Bureau of Economic Research.
Murray, M., & Washington, D. (2002). The sales tax in the 21st century. Westport, Conn.:            Praeger.

Corporate Finance

Read three different but substantial articles in the Wall Street Journal about CORPORATE FINANCE (and/or corporate valuation) and write a 4 to 6 page report about the three articles. Please cite the articles, report on the content of the articles IN YOUR OWN WORDS, and discuss how each article relates to a subject that we discussed in the course(such as corporate valuation, Bond Valuation, Stock valuation, Risk and Return, WACC, Capital Budgeting, and Capital sturucture)

Financial Analysis

Week 7 discussion questions
Question#1-
From the scenario, cite your forecasting conclusions that support TFC’s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario could become a roadblock to your conclusions. Provide a rationale for your response.
 
Questions#2-
From the mini case, recommend two (2) desired characteristics of a board of directors. Provide support for your response, citing the ways in which these characteristics usually lead to effective corporate governance.
 
Week 8
Question#1
– From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a stockholder in a company. Determine whether you would prefer to see the company that you researched declare a 100% stock dividend or declare a 2-for-1 split. Provide support for your answer with one (1) real-world example of your preference.
 
Question#2
From the scenario, examine the dividend rate that TFC is paying in order to determine if the company should receive a rate adjustment. Suggest whether TFC’s dividends should either (1) stay the same; (2) be increased; (3) or go down. Provide a rationale for your response
 Week9
Question#1
Examine the key reasons why a business may not want to hold too much or too little working capital. Provide two (2) examples that illustrate the consequences of either situation.
 
Question#2
From the scenario, analyze TFC’s cash budget to determine key methods in which the budget may be optimized (e.g., by renegotiating terms and conditions on some of its payables, etc.). If you believe that there is room for improvement, recommend key strategies for TFC to use in order to optimize its cash budget. If you do not believe that this is the case, provide a rationale for your response
 
 

DETAILED FINANCIAL ANALYTICAL ASSESSMENT

FINANCE ANALYTICAL ASSESSMENT
 You are reviewing a company based in Egypt , The company is the largest distributor of industrial chemicals with an 80% market share. The turnover in 2014 was US$ 2.6 million with a 19% EBITDA margin and 13% net margin. The business owners seeking US$ 2.2 million to be invested towards increasing capacity. They are not willing to be diluted beyond 48% shareholding in the business.
 
You have found the articles attached on the internet to help you with your quick analysis of the business. You believe that the company has a strong cash generation capacity but part of the challenge you have is that repatriation of profits from Egypt is a huge concern for investors because the government of Egypt has very strict policy regarding dollars leaving the country.
 
The business is currently registered as a partnership in Egypt between the two principals, investing in the partnership as the fund would result in a disadvantageous tax structure for the LPs. Egypt has a 10% capital gains tax which will dumpen your IRR at exit. It seems likely that one of the principals (the technical person) is likely to exit the business post investment, you’re not sure how core his role is in context of the business at this stage.
 
​Prepare
A draft analysis for the team (not exceeding 1 page on a word document), making sure you cover the following issues:
 
1) Preliminary valuation of the business and your view on the pricing
2) Your view of the challenges faced on repatriation of profits
3) Optimal tax structure for the investment
4) Your proposed solution to prevent the existing principal from leaving
 
The report should not exceed 4 pages

Company Analysis

Select a publicly traded company using the U.S. Securities and Exchange Commission (SEC) EDGAR System at http://sec.gov/edgar/searchedgar/companysearch.html and submit to the instructor for approval. Please note that each student must research a different company. Once the instructor has approved the company selection, obtain the Annual Report (Form 10K) and Proxy Statement (Form DEF 14A) of the company for the immediate past fiscal year. Review these documents in addition to Earnings Releases and other financial information available on the company’s Investor Relations website to evaluate the following items.
Independent Auditor’s Report

  • Based on the selected public traded company, what type of auditor’s report was issued on the financial statements.
  • What kind of evidence the auditors found that indicated the company did not follow Generally Accepted Accounting Principles (GAAP).

Audit Committee

  • Identify members of the Audit Committee of the Board of Directors, its functions, and number of meetings held.
  • Determine if the composition of this committee satisfies Public Company Accounting Oversight Board (PCAOB) requirements in terms of independence and accounting knowledge.
  • Review the audit committee report and discuss Committee actions. Determine how these actions ensure the integrity of the audited financial statements.

Independent Registered Public Accountants

  • Identify the company’s independent registered public accounting firm.
  • Determine how long this firm has served as the external auditors.
  • Determine other services, if any, provided to or on behalf of the company.
  • Determine fees paid to this firm by type of service provided.
  • Discuss changes in or disagreements with the accountants on accounting and financial disclosures, if any.

Reports of the Independent Registered Public Accountants

  • Review the report of the independent registered public accounting firm on internal controls. Determine if the report and its contents meet the criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the PCAOB.
  • Review the report of the independent registered public accounting firm on the audited financial statements. Determine what type of opinion was issued and whether the work performed meets the criteria of COSO and the PCAOB, in addition to GAAP and GAAS.

Prepare a 10-12 page research paper (excluding title page, abstract, references page, and appendices containing financial analysis) in APA format that presents the findings of your analysis of the company’s SEC filings. Your paper should also discuss the following:

  • The type of auditor’s report that was issued.
  • What kind of evidence the auditors found which indicated the company did not follow Generally Accepted Accounting Principles (GAAP).
  • Roles, responsibilities, and objectives of internal and external auditors.
  • Types and assessment of audit and Internal control risks.
  • Ethical standards in auditing and the implications of unethical behavior.
  • Internal control system, its role in a business and its significance in the auditing process.
  • Use of computer assisted auditing techniques.
  • GAAS, GAAP, PCAOB, and COSO requirements for audits of publicly traded companies.

In addition to the SEC Forms, a minimum of five (5) peer-reviewed academic or professional references must be used in the paper.

managerial finance

1.Select a stock in which you are interested. Calculate its per share value using the DDM or another method discussed in Chapter 9. Then find the current market value of a share of the stock. Compare that two. Can you explain the similarity or difference?
 
 
 
2.Do some research, probably on the Web, and find some bonds with differing yields to maturity (YTM). How do you explain the difference? Both the lecture and the textbook discuss some factors that may lead to this difference.
 
 
Please answer these 2 questions for managerial finance

Taxation & individual returns

You just hired a former individual tax preparer to be in your tax accounting department. While she has a degree in taxation, all her experience has focused on individual returns.
To make sure she completely understands the differences between individual and business tax accounting, you ask her to review some of the materials from her college courses in taxation.
You have asked her to prepare a report of 450–600 words on the following topics:

  • Specifically, how the treatment of the following items differs between individual and business income tax accounting:
    1. depreciation
    2. double taxation
    3. dividends
  • Using the following information for b and c, create a brief numerical result demonstrating the impact of different tax treatment for individuals versus businesses.
    1. For b, assume taxable income of a corporation is $100,000 and it subsequently pays out $100,000 in dividends to all its shareholders.
    2. For c, assume a corporation gets dividends of $10,000 from another company, and it happens to be in the 34% tax bracket versus an individual in any bracket

Financial Forecasting

Forecasting a firm’s future sales is the key element in developing a financial plan, yet forecasting can be extremely difficult in some industries. If forecast accuracy is very poor, does this mean that the financial planning process is not worthwhile

Return on Investment

Develop a three- to five-page analysis (excluding the title and reference pages) on the projected return on investment for your college education and projected future employment. This analysis will consist of two parts.
Part 1: Describe how and why you made the decision to pursue an MBA. In the description, include calculations of expenses and opportunity costs related to that decision.
Part 2: Analyze your desired occupation. Determine how much compensation (return) you expect to earn and how long will it take to pay back the return on this investment. Use the financial formulas, Net Present Value (NPV), Internal Rate of Return (IRR), and Payback, provided in Chapters 3 and 4 of your text.
The analysis should be comprehensive and reference specific examples from a minimum of two scholarly sources,

Portfolio Management

Pick three stocks of your choice (Select stocks listed in the ASX or any other national Exchange), preferably from different industry groups. Go to the recommended websites or any other website that offers historical stock price data or to published information sources such as Yahoo Finance, or any other source of financial information. Extract weekly (for example, every Friday) closing share prices for the most recent 28 weeks
Extract also the values of the stock market index, (represented by the ASX 300 or ASX 200 Index in the case of Australia), on a weekly basis over the same time period.
Calculate the following:
Part 1 (30 marks)
(a) The rate of return in each week for each stock and for the stock market index for the 27 weekly periods. Calculate the discrete rate of return as well as the continuously compounded rate of return. Calculate the arithmetic mean return and the geometric mean return of each stock for the entire period. Use only the discrete returns for your calculations and for the calculations in the questions that follow. (10 marks)
(b) The variance of returns for each stock and the index and the covariances of returns between each pair of stocks, the covariance between each stock and the stock market index, and the corresponding correlation coefficients.                                (5 marks)
(c) Compare your results in (a) and (b) for each stock and the stock market index and comment on the risk return characteristics and performance of each of your stocks and the index. Illustrate with tables/charts as appropriate. Comment on the results, relating to what you have learnt in this course. Relate the risk return pattern and the performance of the market index and your stocks to relevant events that took place during this period. Draw on economic, political, industry and company related events that took place over this period that may have impacted on the performance of your stocks and the market index. Give bibliographic references to the sources of your information.                                                                                                      (15 marks)
Part 2 (10 marks)
(a) Based on the discrete returns calculations in Part 1, compute the weekly rate of return and the variance of an equally weighted portfolio formed from the three stocks. Make use of your knowledge of matrix algebra in your calculations.         (5 marks)
(b). Examine and compare the pattern of the returns of your portfolio with those of the individual stocks, and the stock index. Compare the corresponding variances. Comment on your observations, relating to material learnt in this course.            (5 marks)
Part 3 (45 marks)
(a) Extract for each week, the yield of the 26-week Treasury bill (or equivalently the 90 day or 180-day bank accepted bill (BAB) rate) from the financial media (i.e. RBA website http://www.rba.gov.au/statistics/tables/index.html#interest_rates) over your sample period. (Remember that reported yields are usually annualised figures.) Convert the yields to weekly numbers. Use these as a proxy for the risk free rate.
(5 marks)
(b) Estimate the Security Characteristic Line (SCL) for each of your stocks and the equal weighted portfolio, based on the ‘Market Model’, using excess returns (discrete returns less the risk free rate), using Excel regression analysis functions. Show your results graphically. From your results, compute the Beta and the Jensen’s Alpha of each stock and the portfolio.                                                                                   (15 marks)
(c) Calculate the total risk (the return variance) of each stock and the portfolio. Partition the total risk to their respective systematic and unsystematic risk components.                                                                                                  (10 marks)
(d) Based on your observations and results in parts (b) and (c) above, comment on each of your stock’s and portfolio’s performance, and on their risk characteristics, comparing and contrasting the magnitude and the proportions of their systematic and unsystematic risk components. What further insights can you gain on the characteristics and behaviour of your stocks and portfolio compared to the analysis and observations you made in Part 1 (c) and Part 2 (b)?                              (15 marks)
Part 4 (15 marks)
From the point of view of an investor who wishes to evaluate whether the stocks that you examined are worth investing in, how useful was the analysis you carried out on these stocks? What limitations do you see in your analysis and results for investment decision making purposes? What further analysis would you wish to carry out? Explain briefly.
__________________________________________________________________________________
Examples of websites for sourcing data
Australian Stock Exchange:
http://www.asx.com.au/asx/statistics/indexInfo.jsp
BARRA indexes:
http://www.barra.com/research/download_returns.asp
Morgan Stanley Indexes:
http://www.msci.com
For individual stock data:
http://finance.yahoo.com/
Reserve Bank of Australia – for interest rates, exchange rates etc.
http://www.rba.gov.au/Statistics/

Financial markets

As the newly-hired pension fund management team for a Multinational Corporation, you are responsible for managing the $100 Million portfolio on behalf of the association. The monies are currently 100% invested in cash and cash equivalents.
Write a paper of not more than 10 pages, as follows:

  1. Determine an appropriate asset allocation percentage between fixed income, stocks, and cash, in accordance with a moderately conservative risk-tolerance investment policy.
    • Describe, and defend your selections of Capital Markets Securities investment categories that would be suitable given the policy parameters and constraints of your directives. With regard to your securities selections:
    • Consider types of securities, maturities,
    • Credit ratings if appropriate, and other important criteria.
    • You have also been instructed to add an international component to aid in diversification efforts.
  2. This multinational corporation has a satellite branch in London, England. The financial statement below reflects this year’s income statement for this branch. Please provide the income statement below converted into US Dollars. Discuss accounting exposure and the impact it may have on profits.

 
10 page paper
references required

Budget Paper

Using your income from your current job or using income from a future job that you are planning on having after graduating from college, construct a budget.
Job will be a Human Resource Manager for a wider variety of career opportunities as many industries have HR and the salary is respectable.
Searching for a job: Using a daily newspaper or an online search engine, find the monthly income/salary which will be used as your income in your personal budget.
Some useful job search websites: Monster (www.monster.com), Career Builder (www.careerbuilder.com), and Jobs (www.jobs.com).
Additional information can be found at the United States Department of Labor, Bureau of Statistics (http://stats.bls.gov/oco/home.htm).
You may also take the research above to confirm and/or project what you should be earning if you intend to use your current job to complete this assignment.
Use the Personal Budget spreadsheet from Doc Sharing to enter your income from your current job or the income from the job that you are planning on having, then enter the rest of the details based on this personal income (expenses, spending, etc.).
Write a short paper (two page maximum, double spaced, APA format) on your job and budget; it should include the following as a minimum:

Evaluation of Corporate Performance

Evaluation of Corporate Performance
The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report recommending whether or not to purchase the company stock.
The completed report should include:

  • An introduction to the company, including background information.
  • A financial statement review.
  • Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.
  • A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:

a.       Liquidity
b.      Financial leverage
c.       Asset management
d.      Profitability
e.       Market value

  • Calculate Return on Equity (ROE) using the DuPont system.
  • Assess management performance by calculating Economic Value Added (EVA).
  • Evaluate the soundness of the company’s financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.) based on the material covered during class.
  • A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.

This report should be 15 to 20 pages long, excluding title page and reference page(s), using APA 6th edition formatting guidelines. Support your findings and recommendations with evidence from at least five scholarly sources in addition to the annual report, such as the textbook, industry reports, and articles from the Ashford University Library. Be sure to include links to websites that were used as references or to access company information.
Writing the Final Paper
The Final Paper:

  1. Must be 15 to 20 double-spaced pages in length (excluding the title and reference pages), and formatted according to APA style as outlined in the approved APA style guide.
  2. Must include a cover page that includes:
    – Title of paper
    – Student’s name
    – Course name and number
    – Instructor’s name
    – Date submitted
  3. Must include an introductory paragraph with a succinct thesis statement.
  4. Must address the topic of the paper with critical thought.
  5. Must conclude with a restatement of the thesis and a conclusion paragraph.
  6. Must use at least five scholarly sources.
  7. Must use APA style as outlined in the approved APA style guide to document all sources.
  8. Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide.

Cyrus Brown Manufacturing (CBM).

Please read the relevant parts of your textbook, which refer to cash flow and financial planning.
To avoid any uncertainty regarding his business’ financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next 9 months:

March $100,000
April $275,000
May $320,000
June $450,000
July $700,000
August $700,000
September $825,000
October $500,000
November $115,000

He has also gathered the following collection estimates regarding the forecast sales:

  • Payment collection within the month of sale = 25%
  • Payment collection the month following sales = 55%
  • Payment collection the second month following sales = 20%

Payments for direct manufacturing costs like raw materials and labor are made during the month that follows the one in which such costs have been incurred. These costs are estimated as follows:

March $187,500
April $206,250
May $375,000
June $337,500
July $431,250
August $640,000
September $395,000
October $425,000

Additional financial information is as follows:

  • Administrative salaries will approximately amount to $35,000 a month.
  • Lease payments around $15,000 a month.
  • Depreciation charges, $15,000 a month.
  • A one-time new plant investment in the amount of $95,000 is expected to be incurred and paid in June.
  • Income tax payments estimated to be around $55,000 will be due in both June and September.
  • And finally, miscellaneous costs are estimated to be around $10,000 a month.
  • Cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times.

To receive full credit on this assignment, please show all work, including formulas and calculations used to arrive at the financial values.
Group Project Guidelines

  • As a group, prepare a monthly cash budget for Cyrus Brown Manufacturing for the 9-month period of March through November.
    • Use Excel to prepare the monthly cash budget.
  • Based on your cash budget findings, answer the following questions:
    • Will the company need any outside financing?
    • What is the minimum line of credit that CBM will need?
    • What do you think of CBM’s cash position during the budget period? Do you see any concerns for the company in this regard?
    • If you were a bank manager, would you want CBM as your client? Why or why not?
  • It is up to the members of the group to divide the assignment tasks evenly. You will be graded on group participation

Your submitted Group Project (200 points) must include the following:

  • 100 Points. A Excel spreadsheet that contains your group’s monthly cash budget for Cyrus Brown Manufacturing.
  • 100 Points. A double-spaced Word document of 1–2 pages that contains your answers to the questions listed in the Assignment Guidelines.

Basic Finance Questions

  1. Gomez Electronics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan in which interest must be paid at the end of each month, and the stated nominal rate is 12.00% per year. Bank B offers to lend Gomez the required funds on a loan in which interest is continuously compounded and the stated nominal rate is 11.95% per year. Bank C offers to lend Gomez the required funds on a loan in which interest must be paid semi-annually, and the stated nominal rate is 12.10% per year.

Make sure that you show or explain all calculations. Briefly explain your choice.
From which of the 3 banks should Gomez obtain financing?
 

  1. The interest rates in Canada and the United States are 6% and 5% per annum, respectively, with continuous compounding. The spot price of the Canadian dollar is $0.8000. The forward price for a contract deliverable in one year is $0.7900.

Does interest rate parity exist? If it does exist, then show why it exists. If interest rate parity does not exist, then show whether covered interest arbitrage is possible for Canadians or Americans. If covered interest arbitrage is possible, what is the annual rate of return with continuous compounding?
Make sure that you show or explain all calculations. Make sure you answer all questions above.
Hint: Covered interest arbitrage exists for Canadians, if a Canadian makes more than 6% (continuous compounding) from the following: selling Canadian dollars in the spot market, depositing US dollars in a US bank for one year, and buying Canadian dollars forward. Covered interest arbitrage exists for Americans, if an American makes more than 5% (continuous compounding) from the following: buying Canadian dollars in the spot market, depositing Canadian dollars in a Canadian bank for one year, and selling Canadian dollars forward.
 
 

Health Care Financing & Information Systems

Discuss the importance of prices in the healthcare industry.  Explain traditional methods for paying healthcare organizations and how these may impact the pricing.  Discuss the impact of the various reimbursements (e.g., Medicare, Medicaid, Private, or Self-Pay).  Support your response in at least 250-300 word post.

Business Finance

What is the implied annual rate if you deposit $750 and receive $2,000 in 8 years, assuming interest is compounded quarterly?

2. How many months it will take to grow your money from $10,250 to $25,000 if you can earn an interest of 8% compounded monthly? How many years will it take?

3. How many years it will take to grow your money from $3308 to $9537 if you can earn an interest of 15% compounded quarterly?

4. The difference between an ordinary annuity and an annuity due is the:

a. timing of the annuity payments.

b. interest rate applied to the annuity payments.

c. number of annuity payments.

d. amount of each annuity payment.

5. Which one of the following is an annuity due?

a. $225 paid at the end of each monthly period for an infinite period of time

b. $100 paid at the end of each monthly period for one year

c. $225 paid forever

d. $600 paid at the beginning of every quarter for five years, starting today

6. What is the present value of $150 received at the beginning of each year for 16 years? The first payment is received today. Use a discount rate of 9%.

7. What is the present value of $250 received at the beginning of each year for 21 years? Assume that the first payment is received today. Use a discount rate of 12%

8. What is the future value of semi-annual payments of $6,500 for eight years at 12 percent?

9. You are considering an investment which would entail $5,000 payments each year for 20 years. The investment will pay 7 percent interest. How much will this investment be worth at the end of the 20 years?

10. Kelly starting setting aside funds six years ago to buy some new equipment for her firm. She has saved $2,000 each quarter and earned an average rate of return of 7.5 percent. How much money does she currently have saved for this purpose?

11. Today, you are purchasing a $85,000 20-year car loan at 6 percent. You will pay annually at the end of each year. What is the amount of each payment?

12. You just won a lottery that will pay you $2,500 a year for twenty years. You will receive your first payment today. If you can earn 8 percent on your money, what are your winnings worth to you today? (Note that since you will receive your first payment today, it is an annuity due problem).

Globalization

There are certainly pros and cons of going global. For example, with a physical product, the pros might include selling in more volume and the cons may include having to manage the process and logistics. It might also be costly to set up geographic distribution and global marketing at these destinations. Of course, all of this will depend on the global market chosen to do business in and the pro and cons may be different by product and service.
With this in mind, create a 2-3 page response to the following:

  • Identify and describe a global market
  • Analyze pros and cons of entering this specific market

APA Format and references

Financial Management

QUESTION 1
 

  1. a) Find the present value of an income stream that has a negative flow of RM100 per year for 3 years, a positive flow of RM200 in the 4th year, and a positive flow of RM300 per year in Years 5 through 8.  The appropriate discount rate is 4% for each of the first 3 years and 5% for each of the later years.  Thus, a cash flow accruing in Year 8 should be discounted at 5% for some years and 4% in other years.  All payments occur at year-end.

[10 marks]
 
 

  1. b) Rahman is trying to determine the cost of health care to college students and parents’ ability to cover those costs.  He assumes that the cost of one year of health care for a college student is RM1,000 today, that the average student is 18 when he or she enters college, that inflation in health care cost is rising at the rate of 10% per year, and that parents can save RM100 per year to help cover their children’s costs.  All payments occur at the end of the relevant period, and the RM100/year savings will stop the day the child enters college (hence 18 payments will be made).  Savings can be invested at a nominal rate of 6%, annual compounding.  Rahman wants a health care plan that covers the fully inflated cost of health care for a student for 4 years, during Years 19 through 22 (with payments made at the end of Years 19 through 22).  How much would the government have to set aside now (when a child is born), to supplement the average parent’s share of a child’s college health care cost?  The lump sum the government sets aside will also be invested at 6%, annual compounding.                                                                                                                                                                                                                                                 [10 marks]

 
 

  1. c) You are saving for the college education of your two children.  One child will enter college in 5 years, while the other child will enter college in 7 years.  College costs are currently RM10,000 per year and are expected to grow at a rate of 5% per year.  All college costs are paid at the beginning of the year.  You assume that each child will be in college for four years.

You currently have RM50,000 in your educational fund.  Your plan is to contribute a fixed amount to the fund over each of the next 5 years. Your first contribution will come at the end of this year, and your final contribution will come at the date when you make the first tuition payment for your oldest child.  You expect to invest your contributions into various investments, which are expected to earn 8% per year. How much should you contribute each year in order to meet the expected cost of your children’s education?
[10 marks]
[Total: 30 marks]
 
QUESTION 2
Benang Industrial Tools is considering a 3-year project to improve its production efficiency. Buying a new machine press for RM611,000 is estimated to result in RM193,000 in annual pretax cost savings. The press falls in the MACRS five-year class (table 1), and it will have a salvage value at the end of the project of RM162,000. The press also requires an initial investment in spare parts inventory of RM19,000, along with an additional RM2,000 in inventory for each succeeding year of the project. If the tax rate is 35 percent and the discount rate is 12 percent, should the company buy and install the machine press? Why or why not?
[30  marks]
Table 1: Modified ACRS depreciation allowances
 
PART B  [Total : 40 marks]
INSTRUCTION : Answer ALL question.
 
QUESTION 1
 

  1. a)     A 10-year, RM1,000 par value bond pays an 8% coupon with quarterly payments during its first five years (you receive RM20 a quarter for the first 20 quarters).  During the remaining five years the security has a 10% quarterly coupon (you receive RM25 a quarter for the second 20 quarters).  After 10 years (40 quarters) you receive the par value.

Another 10-year bond has an 8% semiannual coupon.  This bond is selling at its par value, RM1,000.  This bond has the same risk as the security you are thinking of purchasing.
Given this information, what should be the price of the security you are considering purchasing? Calculate and justify your answer.
 

  1. b)      Recently, SMJC Hospital Inc. filed for bankruptcy.  The firm was reorganized as American Hospitals Inc., and the court permitted a new indenture on an outstanding bond issue to be put into effect.  The issue has 10 years to maturity and an annual coupon rate of 10%. The new agreement allows the firm to pay no interest for 5 years.  Then, interest payments will be resumed for the next 5 years.  Finally, at maturity (Year 10), the principal plus the interest that was not paid during the first 5 years will be paid.  However, no interest will be paid on the deferred interest.  If the required annual return is 20%, what should the bonds sell for in the market today? Calculate and discuss your answer.

Organizational Chart

Consider an organization for which you have worked.

Draw its organization chart and describe it by using terms from Ch. 8 of Management.

Write a 350-word paragraph describing your experience with the organization. Did you enjoy working there? Explain your response.

Submit your paragraph and your organizational chart to your instructor.

Format your paragraph consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.

cost of capital in global markets

DGP Inc is planning an expansion of its business operations internationally by adding a subsidiary (FDI) in Spain. The CFO has approached three investment banks, 2 in the USA and 1 in Europe, to provide the firm with financial information regarding the cost of capital in their respective markets, and also in major capital markets globally.
Instructions:

  1. Explain what is meant by global sourcing of capital.
  2. Explain what is meant by the terms Systematic risk, Unsystematic risk, and Beta as related to Investment in shares of public organizations.
  3. According to Eiteman, Stonehill, and Moffett (2010) “Depository receipts (depository shares) are negotiable certificates issued by a bank to represent the underlying shares of stock, which are held in trust at a foreign custodian bank” (p. 393) Define and contrast American Depository Receipts (ADRs,) and Global Depository Receipts (GDRs).
  4. What is meant by the term “Cross-Listing?”
  5. What is the difference between “Eurodollars” an “Euronotes?”

The actual Harmful to Best Precise same day financial loans

You may need cash urgently to repay your own costs, or even for just about any unpredicted crisis such as health care treatment or even unexpected costs. In most these types of conditions you would like fast cash to satisfy the actual essentials. These types of can not be fulfilled through person loans because they need period with regard to [PROTECTED18]; the most effective option for you personally is actually on-line cash loans.
Besides the higher curiosity costs as well as costs you need to spend while you make an application for the actual online. Additionally, you will need to spend the cost if you’re past due inside your repayment. The majority of past due compensation costs which are charged through on-line lenders are very excellent that they’ll are as long as dual or even multiple the total amount you have borrowed.
http://instantpaydayloanszone.co.uk/
 

Financial Ratio

Using the financial statements from your selected health care organization in Assignment 1, develop a financial plan for the next three (3) years.
Write a four to five (4-5) page paper in which you:

  1. Suggest the financial ratio that most financial analysts would use to evaluate the financial condition of the company. Provide support for your rationale.
  2. Speculate on the organization’s ability to meet its financial obligations as they come due. Provide support for your rationale.
  3. Based on your ratio analysis, determine whether the profitability trends are favorable or unfavorable and explain your rationale.
  4. Using financial ratio analysis, predict whether or not the company will be viable in five (5) years based on its performance over the past three (3) years. Provide support for your prediction.
  5. Use at least two (2) quality academic resources. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Evaluate the financial statements and the financial position of health care institutions.
  • Describe the overall planning process and the key components of the financial plan.
  • Use technology and information resources to research issues in health financial management.
  • Write clearly and concisely about health financial management using proper writing mechanics.

New-Project Analysis The president

New-Project Analysis The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm’s R&D department The equipment’s basic price is $150,000, and it would cost another $22,500 to modify
it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $67,500. Use of the equipment would require an increase in net working capital (spare parts inventory) of $6,000. The machine would
have no effect on revenues, but it is expected to save the firm $45,000 per year in before-tax operating costs, mainly labor. The firm’s marginal federal-plus-state tax rate is 30%. a. What is the Year-0 net cash flow? If the answer is negative, use minus
sign. $ b.What are the net operating cash flows in Years 1, 2, and 3? Round your answers to the nearest dollar. Year 1 $ Year 2 $ Year 3 $ c.What is the additional (nonoperating) cash flow in Year 3? Round your answer to the nearest dollar. $ d.If the project’s
cost of capital is 10%, should the chromatograph be purchased?

Depreciation Methods Wendy's boss

Depreciation Methods Wendy’s boss wants to use straight-line depreciation for the new expansion project because he said it will give higher net income in earlier years and give him a larger bonus. The project will last 4 years and requires $900,000 of
equipment. The company could use either straight-line or the 3-year MACRS accelerated method. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-year life (ignore the half-year convention for the straight-line
method). The applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%. The company’s WACC is 8%, and its tax rate is 40%. a.What would the depreciation expense be each year under each method? Year Scenario 1 (Straight Line) Scenario 2 (MACRS)
1 $ $ 2 $ $ 3 $ $ 4 $ $ b.Which depreciation method would produce the higher NPV? How much higher would it be? Round your answer to the nearest dollar. $

The financial staff of Cairn Communications

The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $25 million, Operating costs (not including depreciation) 9 million, Depreciation 5 million, Interest expense 4 million. The company faces a 35% tax rate. What is the project’s operating cash flow for the first year (t = 1)? Write out your answer completely. For example, 2 million should be entered as 2,000,000.

Net Present Value

The below example is to be in Excel format.
Based on the information provided below, compute the Net Present Value of the project (CO 3).  A Net Present Value Template is Attached.  (Hint: Don’t forget to update the discount rate to the amount required for this project and add your cash flow numbers.)
Royal Dutch Shipping is planning on Investing $1,600,000 to buy a freighter.   Prepare a net present value analysis based on the assumption that the freighter will be sold for 10% of its cost at the end of the year 5.   Assume a 10% cost of capital.  Annual operating cash flows for the project are:
Year 1:   $380,000
Year 2:   $390,000
Year 3:   $400,000
Year 4:   $410,000
Year 5:   $420,000
Prepare a loan amortization schedule based on monthly payments for the $1,600,000 if Royal Dutch Shipping can pay 10% down on a loan for $1,600,000 and can get a loan for 6% interest for 10 years (do not include this in your Net Present Value computations.  This is a separate issue.  (CO 3).  (Hint:  www.bankrate.com/calculators/mortgages/amortization-calculator.aspx )
 

NPV example
Discount rate 16%
Year Cash in (out) PV factors PV of cash flows
0              (80,000) 1.0000                            (80,000)
1                20,000 0.8621                              17,241
2                18,000 0.7432                              13,377
3                22,500 0.6407                              14,415
4                10,000 0.5523                                5,523
5                30,000 0.4761                              14,283
Net Present Value                            (15,161)
Internal rate of return 7.81%

 

comparative financial statements of Blige Inc.

he comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $63 on December 31, 2012.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2012 and 2011
    2012     2011
Retained earnings, January 1 $1,262,100 $1,067,600
Add net income for year 300,000 218,700
Total $1,562,100 $1,286,300
Deduct dividends:
On preferred stock $9,800 $9,800
On common stock 14,400 14,400
Total $24,200 $24,200
Retained earnings, December 31 $1,537,900 $1,262,100
Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2012 and 2011
    2012     2011
Sales $1,787,170 $1,644,200
Sales returns and allowances 8,890 5,780
Net sales $1,778,280 $1,638,420
Cost of goods sold 613,200 564,140
Gross profit $1,165,080 $1,074,280
Selling expenses $392,700 $490,010
Administrative expenses 334,530 287,790
Total operating expenses 727,230 777,800
Income from operations $437,850 $296,480
Other income 23,050 18,920
$460,900 $315,400
Other expense (interest) 120,000 66,400
Income before income tax $340,900 $249,000
Income tax expense 40,900 30,300
Net income $300,000 $218,700
Blige Inc.
Comparative Balance Sheet
December 31, 2012 and 2011
    Dec. 31, 2012     Dec. 31, 2011
Assets
Current assets:
Cash $288,770 $300,730
Temporary investments 437,050 498,350
Accounts receivable (net) 328,500 306,600
Inventories 248,200 189,800
Prepaid expenses 54,632 60,150
Total current assets $1,357,152 $1,355,630
Long-term investments 754,858 195,781
Property, plant, and equipment (net) 1,950,000 1,755,000
Total assets $4,062,010 $3,306,411
Liabilities
Current liabilities $424,110 $614,311
Long-term liabilities:
Mortgage note payable, 8%, due 2017 $670,000 $0
Bonds payable, 8%, due 2021 830,000 830,000
Total long-term liabilities $1,500,000 $830,000
Total liabilities $1,924,110 $1,444,311
Stockholders’ Equity
Preferred $0.70 stock, $20 par $280,000 $280,000
Common stock, $10 par 320,000 320,000
Retained earnings 1,537,900 1,262,100
Total stockholders’ equity $2,137,900 $1,862,100
Total liabilities and stockholders’ equity $4,062,010 $3,306,411

Instructions:
Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Assume 365 days a year.

1. Working capital: $
2. Current ratio:
3. Quick ratio:
4. Accounts receivable turnover:
5. Number of days’ sales in receivables:
6. Inventory turnover:
7. Number of days’ sales in inventory:
8. Ratio of fixed assets to long-term liabilities:
9. Ratio of liabilities to stockholders’ equity:
10. Number of times interest charges are earned:
11. Number of times preferred dividends earned:
12. Ratio of net sales to assets:
13. Rate earned on total assets: %
14. Rate earned on stockholders’ equity: %
15. Rate earned on common stockholders’ equity: %
16. Earnings per share on common stock: $
17. Price-earnings ratio:
18. Dividends per share of common stock: $
19. Dividend yield: %

Stock Homework

FIN 5620 – Investments
Project 1: Beta and Return.
This homework must be completed individually.
The objectives of this exercise:

  1. To access and download stock and index price data from yahoo.com.
  2. To discern the difference between a real-time closing price and an adjusted price.
  3. To discover how yahoo.com calculates beta for an individual stock.
  4. To replicate the yahoo.com calculation for twenty firms in the S&P 500 index, tabulate the results and report your findings.

 
Learning Outcomes:
Students should be able to:

  1. Identify individual stocks in the S&P 500 index and discuss the composition of the S&P 500 index.
  2. Collect financial data including closing stock prices and adjusted stock prices.
  3. Estimate beta from historical data.
  4. Tabulate regression results and discuss empirical findings.

 
Guidelines:
 

  1. You will be assigned twenty (20) stocks from the current S&P 500 index. You must use these 20 stocks (or, more precisely, the ticker symbols) to download data from yahoo.com. Go to yahoo.com, then Finance, then type in your ticker symbol. Next choose Historical Prices from the tabs on the left. Tag “Monthly” then choose the appropriate dates (to be determined below). Click Get Prices, scroll to the bottom of the page and download to spreadsheet (it is actually saved as a ‘.csv’ file, but it will open okay in Excel). The last month of return data should be March 2015. Be sure to use end-of-month data! Yahoo might print a beginning of month date in the monthly output, but it should be end of month. To check this, look at the daily data and verify that the last day of the month is used in the monthly spreadsheet (it should be if you wait until after the sample period to collect your data).

 

  1. You must determine how exactly yahoo.com calculates historical beta, then replicate their calculations. This requires the use of regression software (or functions in Excel, if you know how to do that). Note, you must calculate returns first. Is the data sorted correctly – in time order? If not, you must sort your stock prices and market prices so that the oldest prices are first, then calculate returns.

 
Answer the following questions:

  1. How, exactly, does yahoo.com calculate their beta? How many months of return data do they use? How many months of price data do you need? How do you know that you and Yahoo used the same data period?
  2. Should you use closing price or adjusted price when calculating returns? Why?
  3. What is the market proxy? What ticker did you use for your market proxy?
  4. After calculating returns for your twenty stocks and the market, you must calculate beta for each of your twenty stocks. Create a Table showing the following: Ticker, Company Name, yahoo beta, calculated beta, intercept and r-square from your regressions.
  5. Do your regression results match yahoo.com results? Why or why not?

 
Output:
You must submit a brief write-up of your results. Your paper should be detailed enough so that someone else could pick up your paper and replicate your results. So, you will need a brief introduction describing your data sources, how you manipulated the data, how you calculated returns, how you calculated beta, a Table, and a brief summary and discussion of your findings. In total, you must submit:
 

  1. Your write-up as a Word file including the Table described above in Guideline #3 and your answers to the various questions.
  2. An Excel spreadsheet (one sheet), properly formatted, containing the ticker symbol, closing price, adjusted price and dates (dates should be the same for each ticker) for each of your twenty stocks and your market proxy.

 

  1. Another Excel spreadsheet, properly formatted, detailing how, exactly, you calculated the results in your Table (i.e., replicate the detailed findings for your stocks). The two Excel worksheets should be in one file with two different labeled worksheet tabs. Alternatively, you may use 20 Excel sheets named with the ticker symbol if you wish to combine the date, ticker symbol, closing price, adjusted closing price, and calculations and/or regressions separately for each of your 20 companies.

 
MY stocks:

DLTR Dollar Tree Inc
D Dominion Resources Inc
DOV Dover Corp
DOW Dow Chemical
DPS Dr Pepper Snapple Group
DUK Duke Energy Corp
DNB Dun & Bradstreet Corp
ETFC E*TRADE Financial Corp
DD E. I. du Pont de Nemours and Company
EMC EMC Corp
EOG EOG Resources
EQT EQT Corporation
EMN Eastman Chemical Co
ETN Eaton Corp plc
ECL Ecolab Inc
EIX Edison Intl
EW Edwards Lifesciences Corp
EA Electronic Arts
EMR Emerson Electric Co
ENDP Endo International

 

Financial Investigation

Scenario:

For the past year, you have been working as a secretary/processor for a local construction company, XYZ Homes, which specializes in the building of low-cost, limited-option homes. You left a comfortable, good-paying job to work for XYZ because it was family-owned and operated by some long-time friends.

Soon after you began working for XYZ, you noticed questionable behavior on the part of Mr. and Mrs. XYZ’s two sons, who are company salesmen. In fact, you are positive that they are falsifying documents to increase their commissions and to trick local banks into approving mortgages to customers who don’t meet credit standards.

You are trying to decide how to handle the situation when one of the sons approaches you and asks you to produce and sign a memo to a bank, falsely stating that a certain potential home buyer is creditworthy. You refuse to do so and, after much consideration, approach Mr. XYZ about the situation. To your surprise, he simply brushes off your comments as unimportant and laughingly states that “boys will be boys.”

Questions:

What would you do in this situation? Is the fact that you correctly refused to produce and sign a false memo enough, or are you obligated to report these crimes to the banks and proper authorities? Consider these questions and then post what you believe are your options, responsibilities, and the implications you are facing.

Equity Valuation

Please answer all questions briefly, yet succinctly. Do not only show your answer, but how you got there as well. Please organize your answers. The easier you make it for me, the easier for me to assign full credit. Neatness counts! Grading will be based on your demonstrated ability to work with valuation concepts.
This is a take home assignment. It is expected, that students will discuss their work with cohorts and other students enrolled in the class. It is imperative that you do your own work. I will not accept a student handing in a copy of another students work. I will not accept obvious replications.
Please answer each question on a separate piece of paper. Assignment #2 is due on the last day of week 4 which is Sunday 05/24 at 1 PM.
 
You have been given three (3) stock symbols. These stocks are referred to as “Your Portfolio”. With each stock in Your Portfolio:

  • Create a graph of trailing earnings. Is your company cyclical or defensive?
  • Value your stocks using each of the following methods:
  1. P/E Multiple approach
  2. P/B Multiple approach
  3. Multi-stage dividend (EPS) discount model
  • Describe your results. Are the answers consistent? Do they give you a mixed picture? Are they useful? What techniques do you have greater confidence in? Why?
  • Calculate PEG ratios. Do these help you understand where your issues are valued?
  • Create a graphs:
  1. PE/PB   (PE on the Y-axis, PB on the X-axis)
  2. Assume the market’s PE is 17.5 and the P/B is 2.8.

Answer this question: Your graph displays a trade-off? What trade-off am I referring to? Does your graph help in understanding where which issue has a better trade-off and a better value

  • Rate your stocks given a 12% market totreturn

 
Note / your 3 stocks are : (ABBOTT LABORATORIES, BOEING CO, FAST)

Finance Case study

In your text, at the end of Chapter 11, read Case Study 1. This case deals with the Chipmunk Company. You are hired to detect financial statement fraud.

After reviewing the balance sheet and statement of earnings provided in your text, complete the following analyses as outlined in your textbook:

  • Calculate the 2008 and 2007 liquidity and equity ratios identified in the Ratio Analysis table included with the case study. Also calculate the change and the percentage change for the ratios and complete the table. (Formulas are given to shorten the time spent on the assignment – you do not need to recreate the table; just list your answers line by line in a Word document. )
  • Analyze the Chipmunk Company’s ratios for both years and compare the figures with the given industry ratios. Based on the ratios identified, where do you think fraud may have occurred?

If using outside sources all source citation should adhere to the guidelines of the APA style guide.

Case Study

In your text, at the end of Chapter 11, read Case Study 1. This case deals with the Chipmunk Company. You are hired to detect financial statement fraud.

After reviewing the balance sheet and statement of earnings provided in your text, complete the following analyses as outlined in your textbook:

  • Calculate the 2008 and 2007 liquidity and equity ratios identified in the Ratio Analysis table included with the case study. Also calculate the change and the percentage change for the ratios and complete the table. (Formulas are given to shorten the time spent on the assignment – you do not need to recreate the table; just list your answers line by line in a Word document. )
  • Analyze the Chipmunk Company’s ratios for both years and compare the figures with the given industry ratios. Based on the ratios identified, where do you think fraud may have occurred?

If using outside sources all source citation should adhere to the guidelines of the APA style guide.

Financial Statement Fraud Motivators

There are many situations that may motivate managers to commit financial statement fraud. Please list at least two situations that you feel would be good motivation for managers to commit financial statement fraud. In addition to listing these situations, please give at least two possible methods to prevent and detect the frauds.