Finance

Finance Question

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Finance 4

Description:

Assignment 4: The Corporate Rundown

Due Week 10, Day 7 (Weight: 16.5%)

 

The following are specific course learning outcomes associated with this assignment:

  • Use technology and information resources to research issues in advanced financial management.
  • Write clearly and concisely about advanced financial management using proper writing mechanics.

 

Introduction:

  • At the risk of repeating ourselves, let’s let Mr. Charlie Munger, co-chairman of Berkshire- Hathaway, say his piece on the power of financial incentives once more: “Never, ever think about something else when you should be thinking about the power of incentives.” Of course, we agree, and we want you to learn how to evaluate financial incentives that you’ll discover in the corporate world. We also want you to be able to assess relatively strong and weak corporate governance systems. That’s the crux of this final assignment.
  • First, what we’d like you to do is to identify a public company (preferably one that you’re familiar with from prior assignments). Then, we’d like you to examine and analyze its governance principles, structures, and practices.
  • We firmly believe that the effective financial decision-maker will understand the power that governance and strong systems have over financial performance, and thus it’s important to train ourselves to be acutely aware of these issues. Here’s how we recommend approaching the assignment:

o  Head to edgar.sec.gov to access your company’s financial statements (or any site where you feel comfortable accessing your company’s financial statements, including the company’s own homepage).

o  Pull up the proxy statement (it’s also called the 14A, the DEF14A, and occasionally the PRE14A).

o Read the statement in its entirety and reflect.

 

Write a 3-4 page paper in which you do the following:

  1. Determine whether the board seems appropriately constituted. Are these people qualified to be governing a business of this type? (Read their bios and even Google them for more info.)
  2. Assess the committees the board members sit on. Are they appropriately staffed?
  3. Assess the management. How long have they been with the company? What is their relative experience?
  4. Evaluate the board’s philosophy on executive compensation.
  5. Discuss the metrics tied to the CEO’s inventive compensation. Are they sound metrics or

not?

 

 

  1. Determine if compensation is reasonable considering the company’s financial performance.
  2. Determine if related-party transactions (sometimes called “transactions with related parties”)

exist, and if they do, whether they are reasonable.

 

Your assignment should adhere to these guidelines:

  • Write in a logical, well-organized, conventional business style. Use Times New Roman font size 12 or similar, double-space, and leave ample white space per page.
  • All references must follow JWMI style guide, and works must be cited appropriately. Check with your professor for any additional instructions on citations.
  • On the first page or in a header, include the title of the assignment, the student’s name, the professor’s name, the course title, and the date. Title and reference pages are not included in the assignment page length.
  • Faculty have discretion to penalize for assignments over or under the assignment guidelines.

Check with your individual professor if you feel the assignment requires a much longer or shorter treatment than recommended.

 

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

 

 

Weight: 16.5%

Assignment 4: The Corporate Rundown

Criteria

Unsatisfactory

Low Pass

Pass

High Pass

Honors

1. Determine if the board seems appropriately constituted.

Weight: 10%

Did not submit or incompletely determined if the board seems appropriately constituted.

Partially determined if the board seems appropriately constituted.

Satisfactorily determined if the board seems appropriately constituted.

Completely determined if the board seems appropriately constituted.

Exemplarily determined if the board seems appropriately constituted.

2. Assess the committees the board

members sit on and if they are appropriately staffed.

Weight: 10%

Did not submit or incompletely assessed the committees the board

members sit on and if they are appropriately staffed.

Partially assessed the committees the board

members sit on and if they are appropriately staffed.

Satisfactorily assessed the committees the board

members sit on and if they are appropriately staffed.

Completely assessed the committees the board

members sit on and if they are appropriately staffed.

Exemplarily assessed the committees the board

members sit on and if they are appropriately staffed.

 

 

Weight: 16.5%

Assignment 4: The Corporate Rundown

Criteria

Unsatisfactory

Low Pass

Pass

High Pass

Honors

3. Assess the management, how long they have been with the company, and their relative experience.

Weight: 10%

Did not submit or incompletely assessed the management, how long they have been with the company, and their relative experience.

Partially assessed the management, how long they have been with the company, and their relative experience.

Satisfactorily assessed the management, how long they have been with the company, and their relative experience.

Completely assessed the management, how long they have been with the company, and their relative experience.

Exemplarily assessed the management, how long they have been with the company, and their relative experience.

4. Evaluate the board’s philosophy on executive compensation.

Weight: 15%

Did not submit or incompletely evaluated the board’s philosophy on executive compensation.

Partially evaluated the board’s philosophy on executive compensation.

Satisfactorily evaluated the board’s philosophy on executive compensation.

Completely evaluated the board’s philosophy on executive compensation.

Exemplarily evaluated the board’s philosophy on executive compensation.

5. Discuss the metrics the CEO’s inventive compensation is tied to and whether they are sound metrics or not.

Weight: 15%

Did not submit or incompletely discussed the metrics the CEO’s

inventive compensation is tied to and whether they are sound metrics or not.

Partially discussed the metrics the CEO’s inventive compensation is tied to and whether they are sound metrics or not.

Satisfactorily discussed the metrics the CEO’s inventive compensation is tied to and whether they are sound metrics or not.

Completely discussed the metrics the CEO’s inventive compensation is tied to and whether they are sound metrics or not.

Exemplarily discussed the metrics the CEO’s inventive compensation is tied to and whether they are sound metrics or not.

6. Determine if compensation is reasonable,

considering the company’s financial performance.

Weight: 15%

Did not submit or incompletely determined if compensation is reasonable,

considering the company’s financial performance.

Partially determined if compensation is reasonable,

considering the company’s financial performance.

Satisfactorily determined if compensation is reasonable,

considering the company’s financial performance.

Completely determined if compensation is reasonable,

considering the company’s financial performance.

Exemplarily determined if compensation is reasonable,

considering the company’s financial performance.

 

 

Weight: 16.5%

Assignment 4: The Corporate Rundown

Criteria

Unsatisfactory

Low Pass

Pass

High Pass

Honors

7. Determine if related-party transactions (sometimes called “transactions with related parties”) exist, and if they do, whether they are

reasonable.

Weight: 15%

Did not submit or incompletely determined if related-party transactions (sometimes called “transactions with related parties”) exist, and if they do, whether they are reasonable.

Partially determined if related-party transactions (sometimes called “transactions with related parties”) exist, and if they do, whether they are reasonable.

Satisfactorily determined if related-party transactions (sometimes called “transactions with related parties”) exist, and if they do, whether they are reasonable.

Thoroughly determined if related-party transactions (sometimes called “transactions with related parties”) exist, and if they do, whether they are reasonable.

Exemplarily determined if related-party transactions (sometimes called “transactions with related parties”) exist, and if they do, whether they are reasonable.

8. Clarity, writing mechanics, and formatting requirements.

Weight: 10%

Multiple mechanical errors or much of the text is difficult to understand

and fails to follow formatting instructions. The text does not flow.

Several mechanical errors make

the parts of the text difficult for the reader to understand;

the text does not flow or the discussion fails to justify conclusions

and assertions.

More than a few mechanical errors; text

flows but lacks conciseness or clarity; assertions and conclusions

are generally justified and explained.

Few mechanical errors; text flows and concisely and clearly expresses the student’s position in a manner that rationally and logically develops

the topics.

No mechanical errors; text flows and concisely and clearly expresses the student’s position in an exemplary manner that rationally and logically develops the topics.

 



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    Submitted by PROFSTAN on April 26th, 2016 16:23

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