...Week 11 Download Answer Below http://workbank247.com/q/fin-534-complete-course-week-1-to-week-11-discussi/7837 FIN534 Week 1 Discussion * From the e-Activity, examine ethical behavior within firms in relation to financial management. Provide two (2) examples of companies that have been guilty of ethics-based malfeasance related to financial management and determine why their comeuppance was deserved. * From the scenario, recommend two (2) actions that Trevose Fitness Center (TFC) could take in order to raise capital that will, in turn, enable it to reach its expansion goals. Defend your response. Support your recommendation with two (2) real-world examples of successful implementations of these actions. Download Answer Here http://workbank247.com/q/fin534-week-1-discussion/7817 FIN534 Week 2 Discussion "Financial Statement, Cash Flow, and Taxes" Please respond to the following: Analyze the importance and impact of financial managers being able to understand financial statements. Provide the rationale behind your analysis. Imagine that you are starting a business. Determine the tax considerations that might result in you setting the business up as a proprietorship or a partnership, rather than a corporation. Provide a rationale for your decision. Download Answer Here http://workbank247.com/q/fin534-week-2-discussion/7818 FIN534 Week 2 Homework Set 1 Directions: Answer the following questions on a separate document. Explain how you reached the answer or show...
Words: 4711 - Pages: 19
...social and economic influences on personal financial goals and decisions.(Chapter 1, Pg. 2-11) 2. Develop personal financial goals. (Chapter 1, Pg. 16-20) 2.3 Calculate time value of money situations associated with personal financial decisions. (Appendix 40-44) 1. Concept: Influences on financial goals and decisions 1. The Rule of 72 is a. A tool to determine the number of years until retirement for an employee b. Used to estimate how long it takes for prices to double using a given annual inflation rate c. The legal code for requiring companies to provide a match on retirement savings d. Used to calculate interest rates for savings 2. Which is NOT an identifiable financial goal? a. Retirement and estate planning b. Risk management c. Living on a fixed income d. Saving 2.2 Concept: Develop personal financial goals 3. SMART Goals contain all of the following EXCEPT a. Specific – knowing exactly what the goals are and how to attain them b. Action-oriented – the bases for the goals c. Resourceful – to be able to rely on information used to understand the written goals d. Time-based – the time frame needed to reach the goal 4. Short-term goals are: a. Goals to be attained within a year or so b. Contain college plans for children c. Creating an estate plan d. Making a big purchase 5. Long-term goals are: a. Goals to be attained within two years b. Uses short-term goals to attain certain goals in five...
Words: 536 - Pages: 3
...multiple choice, quantitative problems, and so on). Use Students should use the examination blueprint to prepare for the course examination. The blueprint may not include all the topics listed in the course outline; however, students are still responsible for acquiring a broad-based knowledge of all topics not listed in the blueprint since these topics will be tested in assignment and review questions. The topics not listed in the blueprint will also provide students with a greater depth of understanding of finance concepts. Examination Objectives The objectives of this 3-hour, comprehensive examination are to test CGA students on the prerequisite knowledge required for the completion of Accounting Business Case [BC1] and advancement into Financial Accounting Consolidations and Advanced Issues [FA4], Accounting Theory and Contemporary Issues [ATI], and Advanced Corporate Finance [FN2], and to ensure that students have the broad-based knowledge in finance needed to function properly in upper-level education and certification courses. Examination Guidelines for Questions i) Question Type The following are guidelines on the type of questions and their approximate weightings: Percentage Weighting Question Item...
Words: 2503 - Pages: 11
...Analyzing Financial Statements Financial analysis is necessary in any human service agency as it allows it to get a clear picture of the financial standings for the fiscal year. According to Martin (2001), “financial analysis is defined as the process of using information from financial statements to calculate financial ratios that assess the financial standings of human service agencies.” There are six formulas used when conducting the financial analysis: long-term solvency ratio, contribution ratio, programs/expense ratio, current ratio, general and management ratio, and the revenue/expense ratio. Importance of Financial Ratios Current Ratio The current ratio is used to give an idea of the company’s ability to readily pay back its short-term liabilities with its short-term assets. These calculations are found on the balance sheet or the statement of financial position. 2002 Current Ratio = $104,296/$139,017 = 0 .75 2003 Current Ratio = $82,058/$93,975 = 0.87 2004 Current Ratio = $302,902/$337033 = 0.90 (rounded up) Long-term Solvency Ratio The long-term solvency ratio is also developed from the statement of financial position (or the balance sheet). The long-term solvency ratio determines whether an agency’s cash flow is sufficient to meet short and long-term liabilities. 2002 Long-Term Solvency Ratio = $391,270/$310,246 = 1.26 2003 Long-Term Solvency Ratio = $359,863/$259,979 = 1.38 2004 Long-Term Solvency Ratio = $699,004/$338.937 = 2.06 ...
Words: 2091 - Pages: 9
...Alicja Nowak-Igwe ID D03509235 FI 516 Advance Managerial Finance Mini Case a) Provide a brief overview of capital structure effects. Identify the ways in which capital structure can affect the WACC and FCF. Capital structure presents how a company finance its operations. It is expressed as percentage of debt, preferred stock, common equity used in financing a company's operations.[1] WACC calculates a company's “cost of capital in which each category of capital is proportionately weighted. All capital sources - common stock, preferred stock, bonds and any other long-term debt - are included in a WACC calculation.”[2] “WACC depends on percentage of debt and common equity (wd) and (ws), the cost of debt (rd) and cost of stock (rs ) and the corporate tax rate (T)”.[3] WACC = wd(1 – T)rd + wsrs The effect of debt on WACC and Free Cash Flow is influenced by impact of the capital structure on value.[4] Capital structure affects the WACC and FCF of a company in many ways. The debt holders have a right to a cash flow before shareholders, which means that dividend can't be paid out unless all obligations toward debt holders for the specific period of time are met. Because of that, the cost of stock, rs goes up.[5] A high debt increases the risk of bankruptcy for a company, which might able to meet all payments. This risk of bankruptcy causes pre-tax cost of debt, rd, to increase.[6] In addition, increased risk of bankruptcy reduces ed free cash flow, which can be...
Words: 2140 - Pages: 9
...FINANCIAL STATEMENTS ANALYSIS Objectives At the end of this chapter you should be able to: 1. Describe the meaning and relevance of financial analysis. 2. Discuss the users of financial statements. 3. Describe sources of financial statements. 4. Describe in detail financial ratios. 5. Define financial forecasting. 6. Discuss the types of comparison used in financial statement analysis 7. Compute financial ratios and use them to evaluate financial strengths and weaknesses. 8. Discuss the limitations of financial statement analysis Financial analysis is the process or critically examining in detail, accounting information given in financial statements and reports. It is a process of evaluating relationship between component parts of financial statements to obtain a better understanding of a firm’s performance. A ratio is simply a mathematical expression of an amount or amounts in terms of another or others. A ratio may be expressed as a percentage, as a fraction, or a stated comparison between two amounts. The computation of a ratio does not add any information not already existing in the amount or amounts under study. A useful ratio may be computed only when a significant relationship exists between two amounts. A ratio of two unrelated amounts is meaningless. It should be re-emphasized that a ratio by itself is useless, unless compared with the same ratio over a period of time and/or a similar ratio for a different company and the industry. Ratios focus attention on relationships...
Words: 3554 - Pages: 15
...help me in my career choice. I think that after completing this course I am able to understand and explain some of the roles in Corporate Finance. I also understand the expectations of this course and I can analyze financial statements now. I am able to explain why the present values are important to a company valuing there projects and calculating the present value of a lump sum, an annuity, and a perpetuity. I can also calculate the discount rates along with explaining the differences between simple interest and compound interest. I can now use long term financial techniques and formulate financial forecasting methods. I can also explain and discuss variance and standard deviation as the measures of risk for both securities and portfolios. During this course I have learned to explain diversification can reduce risk for companies. I can explain how beta is used as a measure for risks and how to explain an idea of efficient portfolios, and explaining the capital asset pricing model. I can also calculate asset risk and evaluate the long term financial techniques that we use in finance and analyze the personal brand's career effectiveness. xplain other methods of project evaluation along with their shortfalls. Then I can explain how to make capital budgeting decisions with the limited resources that some companies have. I think by understand how...
Words: 671 - Pages: 3
...that incident compelled Harley Davidson to renew its focus on quality. Since then, Harley Davidson’s successful differentiation strategy focusing on quality, luxury and branding has been reflected on Harley Davidson’s financial highlights. Net income has more than doubled in a span of 5 years; net income increased to $213 million in 1998 from $104 million in 1994. Net working capital has also increased to $376 million in 1998 from $179 million in 1994. Harley Davidson’s share price has more than tripled during the same period as well, suggesting improved investor confidence. However, we should note that Harley Davidson has increased its financial leverage as displayed by the change in their debt to assets ratio. It was noted that Harley Davidson’s customers are willing to wait 2 years for its motorcycles. There seems to be unmet demand and that may have caused a focus on production to be ingrained into their culture. This is evident in their vision to dramatically increase production capacity demonstrated in their plan 2003. Harley Davidson’s products also have very long life cycles. The evolution of the product line may have influenced the culture at Harley Davidson to gravitate towards continuous improvement as opposed to transformation. In terms of IT, Harley Davidson’s organization is neither fully centralized nor fully decentralized. We believe that the interlocking circles structure, including the leader and strategy council and ITC, is a great fit for Harley...
Words: 1920 - Pages: 8
...FINANCIAL MANAGEMENT- 12MBA25 FINANCIAL MANAGEMENT 12MBA25 VTU SECOND SEMESTER FINANCIAL MANAGEMENT- 12MBA25 MODULE -1 FINANCIAL MANAGEMENT Financial management is an academic discipline which is concerned with decision-making. This decision is concerned with the size and composition of assets and the level and structure of financing. In order to make right decision, it is necessary to have a clear understanding of the objectives. Such an objective provides a framework for right kind of financial decision making. The objectives are concerned with designing a method of operating the Internal Investment and financing of a firm. There are two widely applied approaches, viz. (a) profit maximization and (b) wealth maximization. The term 'objective' is used in the sense of an object, a goal or decision criterion. The three decisions - Investment decision, financing decision and dividend policy decision are guided by the objective. Therefore, what is relevant - is not the overall objective but an operationally useful criterion: It should also be noted that the term objective provides a normative framework. Therefore, a firm should try to achieve and on policies which should be followed so that certain goals are to be achieved. It should be noted that the firms do not necessarily follow them. Profit Maximization as a Decision Criterion Profit maximization is considered as the goal of financial management. In this approach, actions that Increase profits should be undertaken and...
Words: 21079 - Pages: 85
...Managing Financial Resources and Decisions By (Name) Name of Class (Course) Professor Name of the School State and City Date Managing Financial Resources and decisions Managing financial resources entails the process of input maximization with the scarce resources. This process calls for maximizing opportunities within an organization through the adoption of proper management procedures. These procedures will not only help an organization reduce its overall costs but will also ensure that it achieves its strategic goals. Many a time, the ideas in an organization outweighs the scarcity of resources. However, an organization can review its strategic plans against the ideas available to prioritize its objectives against the scarce resources. This paper tries to show the decisions reached by management to source for additional finance and the effects it has on the company’s financial performance. Benefits of Forming a Liability Company A limited company refers to a company whose members’ liability is limited to their investment or guarantee. The benefits of forming this type of company for instance, Marrocco Company Limited includes: There is a Separate Legal Entity This means that third parties are required to contract with the company itself and not with individual shareholders or directors. It also means that...
Words: 3701 - Pages: 15
...(5982620)Donna Nair (5943632) | | | | (27-11-2014) | | Table of Content Sr. No. | Content | Pg. No. | 1. | Task 1Food-For-Life and its Objectives | 3-4 | 2. | Task 2Preparation of Financial Statements and Analysis * Projected Cash Flow Statement * Projected Income Statement * Projected Financial Position (Balance Sheet) | 5-10 | 3. | Task 3Calculation of Cost of Capital and its Explanation | 11-12 | 4. | Appendix 1 | 13-14 | 5. | Bibliography | 15 | Task1 Modern financial management theory assumes that shareholder wealth maximization is the primary objective of a business. A business is carried primarily to maximize the wealth/profit of shareholders. The principle of shareholder wealth maximization states that the ultimate purpose and the immediate goal of the business concern must be to maximize the returns on equity share capital (R. Boatright, 2010). Most businesses rely upon borrowed money. A part of this is provided by the shareholders in the form of share capital. In return the shareholders expect an increase in the wealth in order to compensate the risk faced. By wealth maximization we mean either an increase in the market value of ordinary shares or in the form of dividends. It is a long-term objective. Many organizations instead of seeking shareholders wealth maximization seek to maximize profits. Profit refers to the surplus generated by a business and hence the firm may conclude that profit maximization will...
Words: 4039 - Pages: 17
...Standards of Practice Handbook, 9th edition (CFA Institute, 2005) * 2. “Guidance” for Standards I – VII, Standards of Practice Handbook, 9th edition (CFA Institute, 2005) * 3. Introduction to the Global Investment Performance Standards (GIPS®) Global Investment Performance Standards (GIPS®), pp. i–iii and 1–9, (CFA Institute, 4.* 2005) A. Preface: Background of the GIPS Standards B. I. Introduction C. II.0. Provisions of the Global Investment Performance Standards – Fundamentals of Compliance * 5. The Corporate Governance of Listed Companies: A Manual for Investors (CFA Institute, 2005) Learning Outcomes 1. “Code of Ethics and Standards of Professional Conduct” The Code of Ethics establishes the framework for ethical decision making in the investment profession. The candidate should be able to state the six components of the Code of Ethics. The Standards of Professional Conduct are organized into seven standards: I. Professionalism II. Integrity of Capital Markets III. Duties to Clients and Prospective Clients IV. Duties to Employers V. Investment Analysis, Recommendations, and Action VI. Conflicts of Interest VII. Responsibilities as a CFA Institute Member or CFA Candidate Each standard contains multiple provisions for which the candidate is responsible. The candidate should be able to identify the ethical responsibilities required by the Code and Standards. * Readings...
Words: 16671 - Pages: 67
...Copyright © 2009, 2008, 2007 by University of Phoenix. All rights reserved. Course Description This course gives students an overview of finance concepts, terminology, and principles. It is an introduction to the role of finance in the business world. Topics covered include the relationship between finance and accounting, basic financial analysis and planning techniques, financial ratios, profit, cash flow, and sources of business financing. Policies Students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Block, B.B., Hirt, G.A., & Danielsen, B.R. (2009). Foundations of financial management (13th ed.). New York, NY: McGraw Hill/Irwin. All electronic materials are available on the student...
Words: 1280 - Pages: 6
...CODE: BAC 502: UNIT TITLE: FINANCIAL MANAGEMENT Course Lecturer: F. Abdul LESSON ONE INTRODUCTION 1.1. What is Financial Management Financial management can be defined as the management of the finances of an organisation in order to achieve the financial objectives of the organization. The usual assumption in financial management for the private sector is that the objectives for the company is to maximize shareholders wealth. 1.2. Financial Planning The financial manager will need to plan to ensure that enough funding is available at the right time to meet the needs of the organisation for short, medium and long-term capital. a) b) 1.3. In the short-term, funds may be needed to pay for purchases of inventory, or to smooth out changes in receivables, payables and cash: the financial manager is here ensuring that working capital requirements are met. In the medium or long term, the organisation may have planned purchase of fixed assets such as plant and equipment, for which the financial manager must ensure that funding is available. Financial Management decisions The financial management decisions relate to investment, financing and dividends. The management of risk must also be considered. Investments in assets must be financed somehow. Financial management is also concerned with the management of short-term funds and with how funds can be raised over the long term. The retention of profits is a financing decision. The other side of this decision is that if profits are...
Words: 6418 - Pages: 26
...Introduction “Show me the money!” said Cuba Gooding Jr’s in movie “Jerry Maguire”. That’s what financial statements do. It shows where a company’s money came from, where it went, and where it is now. There are four main financial statements - balance sheets, income statements, cash flow statements and statements of shareholders’ equity. * Balance sheets show what a company owns and what it owes at a fixed point in time. * Income statements show how much money a company made and spent over a period of time. * Cash flow statements show the exchange of money between a company and the outside world also over a period of time. * The fourth financial statement, called a “statement of shareholders’ equity,” shows changes in the interests of the company’s shareholders over time. Task 1 Financial statements There are two main purposes of financial statement: first of all, to report on the financial position of an entity; secondly to show how the entity has performed over a particular period of time. Throughout the existence of a business many requests will be made for its financial statements. Financial statements are intended to provide information on the recourses available to management, how these recourses were financed, and what the company has accomplished with them. Financial statements are formal presentations of the flow of money into, through and out of a business. Financial statements are comprised of four main areas - balance sheets, income statements, cash...
Words: 4867 - Pages: 20
