...1-2. Firms often involve themselves in projects that do not result directly in profits. For example, IBM and ExxonMobil frequently support public television broadcasts. Do these projects contradict the goal of maximization of shareholder wealth? Why or why not? I don’t believe they contradict the goal of maximization of shareholder wealth. Companies that involve themselves in projects may not see direct profits from the project they are involved in but profits from these projects come from a good name and indirect advertising. If a company supports public television broadcasts, like IBM and ExxonMobil, it shows that the company cares about its society, these of which are its customers. These public broadcasts usually “thank” their supporters at the end so this would also be indirect advertising for the company. Keown, A., Martin, J., & Petty, J. (2011). Foundations of finance (7th ed.). Boston, MA: Prentice Hall. ISBN: 9780136113652 2-2. (Real interest rates: financial analyst’s method) The CFO of your firm has asked you for an approximate answer to this question: What was the increase in real purchasing power associated with both 3-month Treasury bills and 30-year Treasury bonds? Assume that the current 3-month Treasury bill rate is 4.34 percent, the 30-year Treasury bond rate is 7.33 percent, and the inflation rate is 2.78 percent. Also, the chief financial officer wants a short explanation should the 3-month real rate turn out to be less than the 30-year real rate. ...
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...BUS 401 Entire Course Purchase here http://chosecourses.com/BUS%20401/bus-401-entire-course Description This document of BUS 401 Entire Course consists of: BUS 401 Week 1 Assignment, Comparative Analysis.doc BUS 401 Week 1 Assignment, Ratio Analysis, Problem (4-10).xlsx BUS 401 Week 1 DQ 1, Goals of the Firm and Real Interest Rates.doc BUS 401 Week 1 DQ 2, Cash Flow and Ratio Analysis, Problem (3-2, 4-5(Mitchem Marble ).doc BUS 401 Week 1 Quiz.pdf BUS 401 Week 1, DQ 1, Corporate Income Tax and Real Interest Rates, Problem 1-2(Page 26), 2-2(Page 58).xlsx BUS 401 Week 1, DQ 2, Cash Flow and Ratio Analysis, Problem 3-2 (Page 85), 4-2(Page 122).doc BUS 401 Week 2 Assignment, Mini Case, Alternative Investments(Page 254).xlsx BUS 401 Week 2 DQ 1, Annuity and Capital Asset Pricing(Problems 5-6, 6-4).doc BUS 401 Week 2 DQ 2, Bond and Common Stock (problem 7-8, 7-10, 8-16).doc BUS 401 Week 2 Quiz Version a.pdf BUS 401 Week 2 Quiz Version b.pdf BUS 401 Week 2 Quiz Version c.pdf BUS 401 Week 2, Assignment, Mini Case.xlsx BUS 401 Week 3 Assignment, Weighted Average Cost(Mini Case Page 368).xlsx BUS 401 Week 3 DQ 1 NPV, PI and IRR, Problem 9-4 (Page 289), 10-4(Page 235).doc BUS 401 Week 3 DQ 2 Calculating Free Cash Flow, Problem 11-4(Spartan Stores).doc BUS 401 Week 3 DQ 2 Cost of Debt, Problem 11-10(Page 365).doc BUS 401 Week 3 Quiz Version a.pdf BUS 401 Week 3 Quiz Version b.pdf BUS 401 Week 3 Quiz Version c.pdf BUS 401 Week 4 Assignment...
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...BUS 401 Entire Course Purchase here http://chosecourses.com/BUS%20401/bus-401-entire-course Description This document of BUS 401 Entire CoBUS 401 Entire Course Purchase here http://chosecourses.com/BUS%20401/bus-401-entire-course Description This document of BUS 401 Entire Course consists of: BUS 401 Week 1 Assignment, Comparative Analysis.doc BUS 401 Week 1 Assignment, Ratio Analysis, Problem (4-10).xlsx BUS 401 Week 1 DQ 1, Goals of the Firm and Real Interest Rates.doc BUS 401 Week 1 DQ 2, Cash Flow and Ratio Analysis, Problem (3-2, 4-5(Mitchem Marble ).doc BUS 401 Week 1 Quiz.pdf BUS 401 Week 1, DQ 1, Corporate Income Tax and Real Interest Rates, Problem 1-2(Page 26), 2-2(Page 58).xlsx BUS 401 Week 1, DQ 2, Cash Flow and Ratio Analysis, Problem 3-2 (Page 85), 4-2(Page 122).doc BUS 401 Week 2 Assignment, Mini Case, Alternative Investments(Page 254).xlsx BUS 401 Week 2 DQ 1, Annuity and Capital Asset Pricing(Problems 5-6, 6-4).doc BUS 401 Week 2 DQ 2, Bond and Common Stock (problem 7-8, 7-10, 8-16).doc BUS 401 Week 2 Quiz Version a.pdf BUS 401 Week 2 Quiz Version b.pdf BUS 401 Week 2 Quiz Version c.pdf BUS 401 Week 2, Assignment, Mini Case.xlsx BUS 401 Week 3 Assignment, Weighted Average Cost(Mini Case Page 368).xlsx BUS 401 Week 3 DQ 1 NPV, PI and IRR, Problem 9-4 (Page 289), 10-4(Page 235).doc BUS 401 Week 3 DQ 2 Calculating Free Cash Flow, Problem 11-4(Spartan Stores).doc BUS 401 Week 3...
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...A++PAPER;http://www.homeworkproviders.com/shop/bus-401-week-5/ BUS 401 WEEK 5 Focus of the Final Paper Evaluation of Corporate Performance 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: An introduction to the company, including background information. A complete and thorough financial statement review. 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. Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories: Liquidity Financial leverage Asset management Profitability Market value ...
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...Present and Future Values, and Expected Returns BUS 401 Principles of Finance Instructor: February 29, 2016 Present and Future Values, and Expected Returns Critically reflect on the importance of present and future values. This week started rough for me but while reviewing the material for this week’s lesson I learned the importance of the present value (PV) and future value (FV). PV and FV are related in a sense because they both represent the financial worth of the money at a given time. For starters, present value is the current financial worth of money at that moment. In contrast used to increase a likely return profit. The future value is the financial worth of value of the items at a particular time. In contrast used to measure the expected amounts of money that a given quantity of the cash that will be worth at the available time. Furthermore, FV assists in investment decisions when determining the amount of money by calculating the financial value of the money. The time value of the money is an indication that the money available now is worth more than it would be on the forthcoming date due to the potential money making capacity. What factors must be considered when calculating present and future values? Calculating PV, the factor must include discounting because discounting reveals the time value of the investment and any liabilities occurs along the way with the investment. The use of present value in the calculation of money...
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...TUI University BUS 401 Case Study Module 3 Dr. Yi Ling Abstract Outsourcing occurs when a company either buys products or services from outside sources or sends work to outside contractors versus doing it themselves. There are several advantages and disadvantages to outsourcing to include cost savings, sharing risk and developing better leaders internally. There are also some disadvantages like lack of quality control, loss of some management functions and losing the ability to build well rounded leaders in all aspects of the company. In a country like Iraq, the United States military is outsourcing many occupations in an effort to rebuild the Iraqi economy and eliminate the need for military presence at the same time As our lesson for module 3 starts out with in one of the first comments, in that people are the main asset of any organization, it is up to the organization itself, mainly through its Human Resources Department to figure out what parts of a companies process or performance could be contracted out for somebody else to perform. I am going to discuss some advantages of outsourcing to include saving money, the shared risk associated with outsourcing, accommodating fluctuations in requirements, and the assistance in developing internal staffs. I will also discuss some disadvantages to utilizing outsourcing within a business to include poor quality control, loss of managerial control, decreased loyalty among company employees, and the loss in developing...
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...As assistant financial manager of Caledonia Products the first priority is the shareholder. This analysis of free cash flow will help Caledonia determine the actual benefit and cost involved in the project. Capital Budgeting can decide which projects will help Caledonia Products achieve its objectives and worthy of funding and which should be rejected. Caledonia Products must focus its attention on free cash flows the firm essentially receives cash flows, not profits, cash flow can be reinvested. These cash flows are beneficial on an after tax basis. The company should be interested in incremental cash flows. The acceptance of the project results in increased value of the firm while the cash flows are the marginal benefit. The decision of capital budgeting should be based on cash flows not accounting profits. Cash flow are examined and adjusted for the time value of money. Time value of money identifies that a dollar today is valued more than the same dollar in the future. Accounting profits are reported when they are earned, and expenses are matched to the periods of the revenue. This same cash is the will increase the wealth of the shareholders. Depreciation is an expense; the more assets purchased the larger the expense. When you purchase capital asset cash will be used to purchase the item and will appear on the cash flow statement; it is affect free cash flow over the project life span due to taxation. The higher depreciation expenses can cause a lower taxable income...
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...13-5. (Flotation costs and issue size) D. Butler Inc. needs to raise $14 million. Assuming that the market price of the firm’s stock is $95, and flotation costs are 10 percent of the market price, how many shares would have to be issued? What is the dollar size of the issue? Market price of the firms stock $95 Flotation cost 10 percent of market price Stock price is $95, so the flotation Costs are $9.50 (10% x $95) the firm receives $95 - 9.50 = $85.50 per share Therefore, to raise $14 million, the firm should issue $14,000,000 / $85.50 = 163,743 shares. The dollar size of the issue = $95 x 163,743 = $15,555,585 Flotation cost is the cost that D. Butler would incur when ever it makes any offering of stocks or bonds. The flotation cost includes the cost of printing the formal documents used to record facts, pay the fees from the government, and other cost that is needed to run D. Butler Inc. The dollar size depending on the outcome will determine if the odds are high or low. To raise 14 million, D Butler Inc. can either size the issue by shares or by dollar amounts. To solve for the number of shares for the issue: Divide the amount of money the company needs to raise 14,000,000 by the net price of the stock 85.50 (the price of the stock - 10 percent flotation costs) which equals 163,743 shares. To solve for the dollar amount of the issue: Multiply the number of shares 163,743 times the market price 95.50 for a total dollar amount of...
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...When we think of risk management techniques, our first thoughts are to evaluate what are risks are then create value by purchasing insurance to protect potential financial loses. Others start creating financial nest eggs by placing money into savings. While both techniques are valid techniques, they are but pieces of a larger risk management pie that requires techniques to consider when looking into solutions for optimal risk management. There are many perspectives on how to manage financial risk but for the purpose of this analysis I will be evaluating two specific experts Dr. James Kallman and Robert S. Kaplan and Co-Author Annette Mikes on their techniques for managing risk. Dr. Kallman utilizes a risk management solution tree which involves the GEICO approach, these risk prevention techniques include: Government mandates, Education, Information management, Contractual Transfer, and Operations Management; these techniques preserve assets, save lives, and save risk financing costs. In analyzing Robert Kaplan & Annette Mikes techniques requires a qualitative distinction between the risk levels in order to properly categorize them as Preventable risk, Strategy Risks, or External Risks, with the belief that we can influence risk by not buying into standard forecasting and biases which leads to misreading ambiguous threats. After analyzing both Dr. Kallman’s assessment of Financial Risk Management techniques and comparing to Robert S. Kaplan & Annette Mike’s techniques I believe...
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...In this paperwork of BUS 401 Week 2 Quiz Version b you will find the answers on the next questions: 1. Beta is a statistical measure of (Points : 1) 2. At what rate must $500 be compounded annually for it to grow to $1,079.46 in 10 years? (Points : 1) 3. How much money must you pay into an account at the end of each of 20 years in order to have $100,000 at the end of the 20th year? Assume that the account pays 6% per year, and round to the nearest $1. (Points :1) 4. Halverson, Inc. just issued $1,000 par 20-year bonds. The bonds sold for $936 and pay interest semi-annually. Investors require a rate of 7.00% on the bonds. What is the amount of the semi-annual interest payment on the bonds? (Points : 1) 5. What is the present value of $15,500 to be received 12 years from today? Assume a discount rate of 7.5% compounded annually and round to the nearest $1. (Points : 1) 6. Finance theory suggests that the current market value of a bond is based upon which of the following? (Points : 1) 7. A typical measure for the risk-free rate of return is the (Points : 1) 8. A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 7.5% interest per year, starting on the day your child is born. How much would you need to invest each year (rounded to the nearest dollar) to accumulate a million for your child by the time he is 35 years...
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...Abstract The intent of the paper is to examine current trends in the most commonly defined contribution retirement plan, the 401(k) plan. It will outline the best course of action to achieve an effective plan and maximize employee participation. This paper will review current mandates regulated by government agencies and explain the importance of remaining in compliance. Finally, the paper discusses best practices for implementation, as well as the best ways to promote a 401(k) plan within your organization. Throughout the process the details of the 401(k) plan at Tampa Bay & Company, a small sized organization, will be compared to other non-governmental company 401(k) plans to highlight specific examples and draw comparisons. Overall 401(k) Trends In response to the economic downturn there has been an increasing surge of employers who are lowering benefits associated with 401(k) plans. The most common trends are employers reducing the amount of match, reducing the portion of the match, or eliminating the match altogether. Over the past couple of years several surveys have been completed by investment firms, revealing that the number of employers who have decreased company contributions is on the rise. Some surveys show as low as a 7% decrease, but the majority of surveys claim that the amount is closer to 25% of employers who decreased matches or ceased employee contributions all together. Nearly two-thirds of employers still continue to provide matching contributions...
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...Retirement Plan and Communication Proposal Ebony Brown HRM/324 January 24, 2012 Jocelyn Freimark The design of a company’s benefits program is important to ensure the plans fit the structure of the company and the needs of its employees. Being a new company starting with 150 employees it will be important to design a varied and comprehensive retirement program that will not only address the needs of the company’s current employees, but will also attract potential employees, and be affordable for the company. Qualified plans “entitle employers and employees to substantial tax benefits” (Martocchio, 2009, p. 3), because neither has to pay taxes on contributions within a dollar limit outside of defined contribution plans. As an additional benefit, investment earnings are tax free and participants and their beneficiaries do not pay taxes on retirement benefits until the funds are received. There are two types of qualified retirement plans: defined benefit plan and defined compensation plan. A challenge of the defined benefit plan is that it may prove to be more costly for employers as employer contribution rates fluctuate yearly and requirements may be difficult for employers to ensure all the funds are available for participants or beneficiaries to receive. In this case, the best retirement benefit design option is the defined contribution plan. Under the defined contribution plans “employers and employees make annual contributions to separate...
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...Name of the Project: Highway 407 improvement Executive summary In 2013, following 3 years of program definition, research and planning, the province of Ontario’s ministry of transportation and infrastructure launched the project to improve the existing highway 407. This highway is the busiest route and convenient to access different parts of Toronto. The proposal of highway 407 was launched in 1959 and opened to the public in June 7 1997. 407 its one of the busiest highway, the total trips in 2010 was 114.691 Million. 407 ETR is the world’s first all-electronic toll road of its kind, and from the day it was opened up to the present day it continues to fulfill its mission of relieving traffic on local highways and roads. The goal of the project “Highway 407 improvement” includes reducing congestion and travel time; improve safety; expanding networks and transportation choice for high occupancy vehicles. Given the cost of the project and other provincial priorities, a key objective was to be self-financing, paid for through ERT system. The present value cost is estimated more than $5 billion, which is calculated over the period of 35 years. Key features of the project include extending the high occupancy vehicles lanes and commercial vehicle priority access. The project will also provide the reintroduction of the public transit to a corridor that has been too crowded to support reliable service for the past few years. The request of proposal was submitted on...
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...ACC 560,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 560,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 561,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 561,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 565,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 565,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACCT 346,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACCT 346,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACCT 434,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACCT 434,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACCT 567,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACCT 567,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, PHI 200,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, PHI 200,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, Res 301,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, Res 301,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford BA 215,Course...
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