...#1.15) Iraq War Poll a.) ALL the populations of the United States. b.) The variable interest is to find out if the invasion of Iraq is justified and it’s a qualitative data cannot be measured by a numerical scale. c.) 2,000 individuals d.) Whether the population of the United States thinks the invasion of Iraq was justified. e.) Random-digit telephone dialing. f.) The most common way to satisfy the representative sample requirement is to select a random sample. #1.18) Extinct birds. Quantitative data =involves with numbers. & Ratio or Interval Qualitative data = no numbers & categories. & Ordinal or Nominal a.) Qualitative data – Nominal b.) Qualitative data – Nominal c.) Qualitative data – Nominal d.) Qualitative data – Ordinal e.) Qualitative data – Nominal f.) Quantitative data – Ratio g.) Quantitative data – Ratio h.) Qualitative data – Nominal #1.24) Gallup poll of teenagers. a.) The sampling of 505 teenagers selected of all the U.S. teenager’s populations. b.) ALL the populations of teenagers in the United States c.) Yes, the survey randomly selected 505 teenagers from all U.S. teenagers. d.) The variable interest is to determine the topics that teenagers most want to discuss with their parents. e.) The inference is expressed by applying the results of the sample to general populations of teenagers in the United States. f.) The purpose of the margin of error is to safeguard the results of the random sampling because it’s representative...
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...Benefit and Drivers Paper Success is acquired by driving operational excellence throughout the business by building a brand or company reputation. The reputation drivers are created by a company using innovation and creativity to develop products or services, creatively solve problems, and generate improvements in the quality of his or her products and services, which also creates a sustainable competitive advantage over its competitors. It may be restructuring and improving the processes or delivery of the services, driving visibility of the enterprise’s data and goods, or the initiatives that will make the customers take notice of the innovative and creative changes that are made. Benefits and drivers are essential for inspiring innovation and creativity within the company as the competition evolves. Innovation can be separated into two wide classifications. Evolutionary innovations are the knowledge or procedures, and revolutionary innovations are frequently troublesome and innovative. However, they have their benefits too. Benefits such as, an increase in revenue that will allow the company to research or explore other avenues of innovation that can increase profits and create new growth for the company, which are internal drivers. Innovation also brings new ideas to reality, and one of the drivers of innovation is the encouragement from the organization’s leaders. Companies must do more for their employees' creativity than just acknowledging that he or she has good ideas...
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......STARBUCKS PLANNING 1 To understand the relationship between strategic and financial planning we first need to determine both of their meanings. The definition of strategic planning states that it is a “systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.” Strategic planning is a management tool that helps an organization focuses its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization’s direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson’s Strategic Planning in Public and Nonprofit Organizations) From these definitions and quotes we can understand that strategic planning allows a company to develop goals easily so that they can keep the company prospering. Financial planning is similar to strategic planning because both types of plans are used to help the company reach its overall goals. The definition of financial planning states that it is “a comprehensive evaluation of an investor’s current and future financial state by using currently known variable to predict future cash flows, asset values, and withdrawal plans.” This definition helps us to understand...
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...Ethics and Compliance Paper FIN/370 Ethics and Compliance Corporations whether large-scaled or small-scaled can deteriorate if their businesses’ chooses non-ethical actions. Clients can refuse to go to a store if they observed the corporation manages its personnel without fairness of if they observed that the corporation buys goods from a vendor with immoral methods. Wal-Mart controls their personnel to a code of ethics. The ethics code is a declaration announcing that to every employee the viewpoints of the corporation. The yearly records and SEC finding for 2010 and 2011 will be analyzed in the next statements to get comprehension of Wal-Mart as a corporation and its operations in the time course. Role of Ethics and Compliance The finance and accounting industries must involve ethics as a framework on that every movement is performed. “Every movement that contradicts with the ethical contexts can result to a loss of assurance which have a bad and continual influence on this corporation” (Titman, Keown, & Martin, 2011, p. 312). A portion of this equation involves the essence of the corporation in which relies to the morality bestowed to protect viability of clients, adversaries, personnel and suppliers. The mentioned assertion does not contradict the truth that financial records of any corporation must signify a precise and factual view of the corporation’s financial status. Stockholders require this assurance...
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...CH 10 Integrative Problem: Caledonia CAPEX $8,000,000 Straight line depreciation Depreciation expense per year $1,600,000 Pro Forma 1 Pro Forma 2 Pro Forma 3 Sales $21,000,000 Sales $36,000,000 Sales $42,000,000 Variable Cost 12,600,000 Variable Cost 21,600,000 Variable Cost 25,200,000 Fixed Cost 200,000 Fixed Cost 200,000 Fixed Cost 200,000 Depreciation 1,600,000 Depreciation 1,600,000 Depreciation 1,600,000 EBIT 6,600,000 EBIT 12,600,000 EBIT 15,000,000 Tax(34%) 2,244,000 Tax(34%) 4,284,000 Tax(34%) 5,100,000 Net Income $4,356,000 Net Income $8,316,000 Net Income $9,900,000 OCF 1= $5,956,000 OCF 2= $9,916,000 OCF 3= $11,500,000 Pro Forma 4 Pro Forma 5 Sales $24,000,000 Sales $15,600,000 Variable Cost 14,400,000 Variable Cost 10,800,000 Fixed Cost 200,000 Fixed Cost 200,000 Depreciation 1,600,000 Depreciation 1,600,000 EBIT 7,800,000 EBIT 3,000,000 Tax(34%) 2,652,000 Tax(34%) 1,020,000 Net Income $5,148,000 Net Income $1,980,000 OCF 4= $6,748,000 OCF 5= $3,580,000 Year 0 1 2 3 4 5 OCF 0 $5,956,000 $9,916,000 $11,500,000 $6,748,000 $3,580,000 Capex -8,000,000 0 0 0 0 0 Changes in NWC -100,000 -2,100,000 -3,600,000 -4,200,000 -2,400,000 12,400,000 Total ($8,100,000) $3,856,000 $6,316,000 $7,300,000 $4,348,000 $15,980,000 NCF=...
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...Microsoft Strategic Initiative The ability to compete and maintain a higher level of success derives from strategy and financial planning. One corporation has distinguished itself among the best as one of the most successful in its industry as well as one of the world’s most profitable empires. Microsoft is the epitome of what strategic and financial planning can do if done properly. Team B has comprised a paper that will discuss one of the initiatives Microsoft has embraced and illustrate the affiliation involving strategic and financial planning as applied to their initiative. YouthSpark is one of Microsoft’s initiatives to empower the youth of today. They provide mentorship and the necessary skills sets to accomplish their future goals. Many corporations set their goals primarily on profit and do not consider them-selves a corporate citizen. Corporations have a social and ethical reasonability to the communities they reside in and should take initiatives to give back to its community. Initiative and financial planning Microsoft believes that social and economic opportunity go hand in hand. Investment in corporate citizenship programs like YouthSpark increases shareholder value (Microsoft, 2013a). Recent research confirms the correlation that incorporating corporate social responsibility into business planning has financial benefits that increase shareholder value and enhances long-term operating performance in areas related to return on assets and net profit...
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...What is meant by foreign exchange risk? Currency risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged. What specific problems does foreign exchange present in an organization? Effects foreign exchange fluctuations and its Impact on the business The organisation is put to exchange risk. This means that for the same product, if a business contracts with seller for a specific amount due to rate fluctuations, that will be paying more. The customs duty structure, VAT etc are directly linked to such rates which will have further impact. Cash outflow also increases thereby straining the working capital requirements. In short, this directly affects the profitability of a project/business. How may an organization that needs Euros in 6 months protect itself from currency fluctuations?The Best and most widely used methods for currency fluctuation protection is paying prepaid premium. What is globalization? Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.Put in simple terms, globalization refers to processes that increase world-wide exchanges of national and cultural resources. Advances in transportation and telecommunicationsi nfrastructure, including the rise of the telegraph and its posterity...
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...14-1. what are financial markets? What function do they perform? How would an economy be worse off without them? Financial markets are institutions and procedures that facilitate transactions in all types of financial claims. (Financial Management: Principles and Applications) This is a mechanism that is used to facilitate the transfer of savings from those economic units with a surplus to those with a deficit. If we didn’t have financial markets people or companies couldn’t buy houses, life insurance policies, governments or firms couldn’t spend more money than what they actually earned. The text says that the economy would suffer without a developed financial market system. That the rate of capital formation would not be as high if financial markets did not exist. 14-2. Define in a technical sense what we mean by financial intermediary. Give an example of your definition. The financial intermediary collects the savings of individuals and issues its own (indirect) securities in exchange for these savings. The intermediary then uses the funds collected from the individual savers to acquire the business firm’s (direct) securities, such as stocks and bonds. I think an example would be a business giving a direct payment in a savings bond that the employee can match and put the same amount into the same savings plan. 14-3. Distinguish between the money and capital markets. Money market refers to all institutions and procedures that provide for transactions in short-term...
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...Strategic Initiative Paper A major part of a company’s success is planning. A business needs effective strategic planning to remain competitive and grow financially. For a company to reach its full financial potential, a planning process must exist. Strategic planning serves as the roadmap for a company’s financial efficiency. Wal-Mart developed the strategic planning initiative of Every Day Low Price (EDLP), which prices it products at low, affordable prices. Wal-Mart’s strategic planning has made the store one of the best known organizations and industry leaders in low prices. The strategic planning initiative effects costs and the sales within the organization that can also create risks; however, if managed effectively can make the discount giant even more profitable. Strategic Planning Initiative, Financial Planning Wal-Mart has grown from modest beginnings to become one of the most recognizable store chains in the world by operating almost 11,000 stores in 27 countries with more than two million employees (Wal-Mart, 2012). With such a large, well-known organization the company strives to remain competitive within a global market. To succeed, the company used strategic planning to identify an aggressive strategy within their 2012 annual report. Wal-Mart management entitled the strategy“Delivering Everyday Low Price (EDLP). According to Wal-Mart’s 2012 annual report, the EDLP strategy represents an essential component of its message of delivering the lowest prices...
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...International Finance Karen Davis University of Phoenix September 9, 2010 Introduction 3. A firm’s current balance sheet is as follows: Assets - $100 Debt $10 Equity $90 Question 3a. What is the firm’s weighted cost of capital at various combinations of debt and equity, given the following information? Debts/Assets After Tax Debt Cost Cost of Equity Cost of Capital (weight)(cost of debt) weight (cost of equity) = k (cost of capital) 0% 8% 12% 10 8 12% 20 8 12% 30 8 13% 40 9 14% 50 10 15% 60 12 16% Answer – Debts/Assets After Tax Debt Cost Cost of Equity Cost of Capital (weight)(cost of debt) weight (cost of equity) = k (cost of capital) 0% (.0)(.08) (1.0)(.12) 12.0 % 10% (.1)(.08) (.9)(.12) 11.6 % 20% (.2)(.08) (.8)(.12) 11.2% 30% (.3)(.08) (.7)(.13) 11.5% 40% (.4)(.09) (.6)(.14) 12.0% 50% (.5)(.10) (.5)(.15) 12.5% 60% (.6)(.12) (.4)(.16) 13.6% Question 3b. Construct a pro forma balance sheet that indicates the firm’s optimal capital structure. Compare this balance sheet with the firm’s current balance sheet. What course of action should the firm take? CURRENT BALANCE SHEET PROFORMA BALANCE SHEET Assets - $100 Assets - $100 Debt $10 Debt $20 Equity $90 Equity $80 The optimal capital structure is “the unique capital structure that minimizes the firm’s composite cost of long-term capital” (Keown, et.al. 2005). The debt is 20% of the capital and the cost of capital is 11...
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...Industry Averages and Financial Ratios Paper FIN/370 RUNNING HEAD: INDUSTRY AVERAGES AND FINANCIAL RATIOS 2 ACME is looking for a bank loan to provide it with increased capital for its heater business. When deciding whether or not a company, like ACME, is financially healthy and would provide a return on the invested capital there are many tools available. By using a company’s financial statements, such as their balance sheet, we can get a small view of the heath of said business. Now by applying financial ratios and measurements towards the balance sheet, we can view the bigger picture which allows us to make a decision with far less risk in the end. First and foremost, let's discuss each ratio expressed on these financial statements as to better understand the context of how we use them to make decisions in the modern business environment. The current ratio measures the proportion of current assets to current liabilities, with this comes a rough measurement of a company’s financial health by giving us an idea of its ability to pay back its liabilities with its assets.. The acid test, or quick ratio, is a measurement designed to show a company’s ability to use cash assets to pay for short-term liabilities. Where the debt ratio measures the total debt of a company to its total assets allowing us to see what proportion of assets are financed by debt. Times interest earned...
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...Going public through an IPO Riordan Manufacturing’s approach through initial public offering will improve finances quickly. An IPO will raise capital and reduce debt. Funds acquired from common stock will be used to improve the area of the organization that needs help. The organization will have greater access to capital markets and in turn the valuation will increase. Riordan Manufacturing currently does not have a consistent format to maintain corporate date files (University Of Phoenix, 2013). They should consider installing an enterprise system that will improve financial accounting. Selling shares publically puts the company at high observation with the securities exchange commission, and state regulations. The Riordan organization will also have to submit regular financial reports to its shareholders. Acquiring another organization in the same industry If Riordan Manufacturing were to acquire another organization in the same industry they could block competitors and have dominance over the market share. Acquisition can also bring in a positive cash flow, along with a new customer base. There greater weaknesses that pertain to Riordan Manufacturing when considering an acquisition. Management and labor unions could be at risk when merging two companies. There will be a vast change in personnel especially with middle to high management, where elimination is inevitable. Shareholders will also have a positive increase however this can create a view that renegotiating will...
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...Week 1 Financial Terms and Roles FIN370 January 14, 2014 Week 1 Financial Terms and Roles 1) Finance Finance is considers the management of how income acquired and used. Whether dealing with corporate or personal issues, finance may consist of how individual or business acquires, invest, and manage money. Financial decisions are the role finance plays, which consist of money as the resource and how and the source of how the organization obtain the revenue. 2) Efficient Market Efficient markets are a hypothesis that prices in a market are continually fair. This consists of incorporated market prices reflecting associated information completely. Keeping values current is the role efficient markets play by keeping market price fair and prohibiting anyone to make a high returns unless he or she buys a much high risk investment. 3) Primary Market A primary market is a marketplace where securities are distributed for the first time. The government, businesses, and other groups issue debt or equity-based securities permissible to raising finance. In primary market prices are the same for every buyer; however, investors in a primary market do not purchase securities from other investors. 4) Secondary Market A Secondary Markets is a marketplace where securities that already issued are sold or purchased by investors. Prices in a secondary market vary from the issue price and prices can vary from the original cost, although prices are affected by market sentiments...
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...Industry Averages and Financial Ratios Paper Manuelita Blow FIN370 Ms. Christine Gordon University of Phoenix March 13, 2015 Industry Averages and Financial Ratios Paper This paper will be discussing Target, a publicly-traded company. This paper will be Locating the SIC code for the company's industry, Finding Targets ratios for the company using the Dun & Bradstreet® Key Business Ratio link in the University Library. This paper will also be assuming that the inventory ratio is based on a traditional inventory system, but globalized markets and the supply chain make it critical to adopt lean principles to create a more efficient system. This paper will also be discussing what a change to a Just- In- Time inventory system would have if adopted by Target and Financial ratios will be calculated and the ratios will be compared with the appropriate industry. Assume According to "Just In Time Vs Traditional Inventory System." (2014), “Traditional inventory systems, seek to have enough inventory on hand so that production may continue even in the face of unexpected shortages or shipping delays. The ideal goal of JIT (Just in Time) manufacturing is to have precisely the right amount of components or materials on hand at any given moment, with as little idle inventory as possible. In a factory run perfectly according to the JIT model, every component delivered to the factory would go directly from the loading dock to the assembly line”. ("Just In Time Vs Traditional Inventory...
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...Lease versus Purchase Andrew Senkus, Brent Farmer, Clinton Eubanks, Cynthia Albert, Evan McMurray, & Shante Howard Finance for Business / FIN370 December 8, 2014 Su-Yi Lien Lease versus Purchase When it comes time for a company to make a larger investment, they are faced with the question of purchasing versus leasing. In making this decision a few things must be kept in mind. Leasing assets require a much smaller cash outlay than purchasing the assets. Many times when leasing, a maintenance contract will be included to help with the cost of maintenance. When certain assets are leased, it is possible to deduct the interest of the lease from the company’s tax return. On the other hand buying assets allows the company to take advantage of certain tax depreciation benefits. Once the assets are purchased and paid in full, the company will own these assets free and clear. Therefore, if and when the company decides to sell the assets all of the funds received in the selling of the assets will be profit for the company. A problem from our text will be used to illustrate how a firm might solve this dilemma. The Problem The problem in the text explains that management is looking to acquire assets that have a total cost of $200,000.00. The firm only needs the assets for a total of three years while the assets have an economic life of five years. The firm plans to sell the asset for $50,000.00 at the end of the three years of use. The firm must choose...
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