Finance


Questions

# Description Question
13995

Use the same annual statements for Starbucks as for the prior module. The Starbucks income statements should be used for the first two questions. Do additional research as necessary for the last question. (Please see the attached word document for the previous essay and the income statement used for Starbucks in references). 

1. Locate the income statement for the past two years. Prepare a table in good format comparing at least ten revenue and expense items for the two years. Did the numbers increase or decrease? What can we learn from this information?
2. Comment on the changes from one year to another. Is the company doing better or worse? Did revenues and expenses increase or decrease? Are revenues and expenses moving in the same direction?
3.Investors emphasize earnings per share. Why is this number so important and what are some of the shortcomings of this number?
REQUIREMENTS
Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. Incorporate the required table into the Word document

Financial analysis
13932 please read the case I will attach and answer the 8 questions that follow Financial management
13882 description test
13840

JWMI 540: Strategy

Assignment 2

 

Assignment 2: Escatsa Risk Analysis

 

Due Week 6, Day 7 (Weight: 15%)

 

Risk analysis is an essential practice in all business environments. What are the implications of option 1 versus option 2? Or even options 3, 4, and 5?! The key to risk analysis is to identify factors that have possible impact and assign a risk value to each. Savvy managers know how to account for risk, limit risk, and live with a certain amount. Don’t end up on the wrong side of the risk equation!

 

For this assignment, you will read and analyze the Escatsa case study. Escatsa is a Spanish company that manufactures steel sheet jobs for the automobile industry. You must decide where the organization should relocate their operations. Apply the balanced scorecard heat map approach from the Risk Management and the Strategy Execution System article and make an informed and strategic recommendation on which course of action the company should pursue.

 

Write a 3- 5 page Business Brief that details your recommendation for Escatsa based on your risk analysis. Include the heat maps as an appendix.

 

  1. Summarize the key business challenge and options Escatsa must weigh.

 

  1. Define level 1, level 2, and level 3 risks and provide one example of each type of risk at Escatsa, delineated separately by the automotive and ink jet industries. Hint: For the level 1 risk, review the organizational chart exhibit.

 

3.     Use risk agents exclusive to the automotive and ink jet industries to build two heat maps as follows:

 

a.     Level 2 heat map with a minimum of three risk agents for the automotive industry

 

    1. Level 2 heat map with a minimum of three risk agents for the ink jet industry!
  1. Recommend a course of action based on your heat map risk analysis and explain your rationale.!

!

 

*Note: A complete risk assessment would include development of heat maps for all three levels of risk. For the purposes of this assignment, you will only create heat maps for level 2 risks and use that information to inform your decision.

 

Recommended format and organization for the Business Brief

 

Business briefs are often used to convince and inform clearly and concisely in the business environment. For this assignment, your business brief should state its purpose, detail your findings, and provide a persuasive informed recommendation based on your risk analysis and conceptual understanding.

 

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

 

  1. Single spaced, professional font (Times New Roman or Ariel), 10-12 font size.

 

  1. Headings used to identify main topics and subtopics.

 

!                                               !

 

 

 

 

©2016 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class.!

!                                                                                                                                          Page 1 of 4!


JWMI 540: Strategy

Assignment 2

Weight: 15%

 

Assignment 2: Escatsa Risk Analysis

 

Criteria

Unsatisfactory

Low Pass

Pass

High Pass

Honors

1. Summarize

The key

The key

The key

The key

The key

the key

business

business

business

business

business

business

challenge and

challenge and

challenge is

challenge and

challenge and

challenge and

options are either

options is

satisfactorily

options are

options are

options Escatsa

not summarized

partially

summarized.

completely

exemplary

is weighing.

or incorrectly

summarized.

The summary

summarized. It is

explained. The

Weight: 10%

identified and

The challenge or

identifies the

concise, logical

explanation is

 

explained.

options are not

challenge and

and pulls from

concise, logical

 

 

fully clear and/or

options but does

case

and

 

 

complete.

not fully

information.

demonstrates

 

 

 

demonstrate

 

extended insight

 

 

 

clear

 

beyond the core

 

 

 

understanding of

 

reading.

 

 

 

the circumstance

 

 

 

 

 

and options.

 

 

 

 

 

 

 

 

2. Define level

The three risk

Level 1, level 2,

Level 1, level 2,

Level 1, level 2,

Level 1, level 2,

1, level 2, and

levels are not

and level 3 risk

and level 3 risk

and level 3 risk

and level 3 risk

level 3 risks and

explained

definitions are

definitions are

definitions are

definitions are

provide one

satisfactory or

partially

satisfactorily

completely

exemplarily

example of each

not at all.

explained. One

explained. One

explained. One

explained. One

type of risk at

Additionally,

example of each

example of each

example of each

example of each

Escatsa,

examples for all

type of risk is or

type of risk is

type of risk is

type of risk is

delineated

are missing or

the automotive

provided for the

provided for the

provided for the

separately by

are inaccurate.

and for the inkjet

automotive and

automotive and

automotive and

the automotive

 

business is not

for the inkjet

for the inkjet

for the inkjet

and ink jet

 

correctly

business. The

business. The

business. The

industries.

 

provided or may

risk definitions

explanation of

explanation of

Weight: 30%

 

have one

and/or risks

risk types and

risk types and

 

 

missing. The risk

identified

risk identified

risks identified

 

 

definitions

demonstrate

demonstrates

demonstrate

 

 

and/or risks

some

solid

exemplarily

 

 

identified

understanding of

understanding of

understanding

 

 

demonstrate

the levels, but

concepts.

and leadership

 

 

limited

not complete.

 

application.

 

 

understanding of

 

 

 

 

 

the levels.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

©2016 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class.!

!                                                                                                                                          Page 2 of 4!


JWMI 540: Strategy

Assignment 2

 

Weight: 15%

 

 

 

Assignment 2: Escatsa Risk Analysis

 

 

 

Criteria

 

Unsatisfactory

 

Low Pass

 

Pass

 

High Pass

Honors

 

 

3. Build two

 

Did not provide

 

Two level two

 

Two level two

 

Two level two

Two level two

 

 

Level 2 heat

 

two heat maps or

 

heat maps are

 

heat maps are

 

heat maps are

heat maps are

 

 

maps that

 

did not include

 

provided. One

 

provided. One

 

provided. One

provided. One

 

 

analyze a

 

three risk agents

 

for each for the

 

for each for the

 

for each for the

for each for the

 

 

minimum of

 

per map or heat

 

automotive and

 

automotive and

 

automotive and

automotive and

 

 

three risk agents

 

maps did not

 

the inkjet

 

the inkjet

 

the inkjet

the inkjet

 

 

from both the

 

 

 

 

 

 

 

indicate

 

business. Each

 

business. Each

 

business. Each

business. Each

 

 

automotive and

 

 

 

 

 

 

 

understanding of

 

map contains

 

map contains

 

map contains at

map contains at

 

 

ink jet printer

 

 

 

 

 

 

 

how to value

 

two to three risk

 

two to three risk

 

least three risk

least three risk

 

 

industries.

 

 

 

 

 

 

 

risks.

 

agents. The risk

 

agents. The risk

 

agents. The risk

agents. The risk

 

 

Weight: 25%

 

 

 

agents and

 

agents and

 

agents identified

agents identified

 

 

 

 

 

 

assigned values

 

assigned values

 

and value

and value

 

 

 

 

 

 

may indicate

 

may indicate

 

assigned

assigned

 

 

 

 

 

 

misconceptions

 

minor

 

demonstrates

demonstrates

 

 

 

 

 

 

of risk and their

 

misconceptions

 

understanding of

strong

 

 

 

 

 

 

potential impact.

 

of risk and their

 

types of risk and

understanding

 

 

 

 

 

 

 

 

potential impact.

 

potential impact.

of types of risk

 

 

 

 

 

 

 

 

 

 

 

and potential

 

 

 

 

 

 

 

 

 

 

 

impact from a

 

 

 

 

 

 

 

 

 

 

 

leadership

 

 

 

 

 

 

 

 

 

 

 

decision-making

 

 

 

 

 

 

 

 

 

 

 

perspective.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4. Recommend

 

The heat map

 

The information

 

The information

 

The information

The information

 

 

a course of

 

information is not

 

from the heat

 

from the heat

 

from the heat

from the heat

 

 

action based on

 

used to make a

 

maps is used to

 

maps is used to

 

maps is used to

maps is used to

 

 

your heat map

 

recommendation

 

recommend a

 

recommend a

 

recommend a

recommend a

 

 

risk analysis and

 

or the choice is

 

course of action.

 

course of action.

 

course of action.

course of action.

 

 

explain your

 

not explained.

 

The choice is

 

The choice is

 

The choice is

The choice is

 

 

rationale.

 

 

 

incompletely

 

explained, but

 

completely

exemplarily

 

 

Weight: 25%

 

 

 

explained based

 

lacks some

 

explained based

explained based

 

 

 

 

 

on the heats and

 

relevant support

 

on the heat

on the heat

 

 

 

 

 

 

 

 

 

 

 

 

 

 

relevant case

 

or clarity of

 

maps and

maps and

 

 

 

 

 

 

information.

 

rationale.

 

additional

relevant facts

 

 

 

 

 

 

 

 

 

 

relevant facts

from the case.

 

 

 

 

 

 

 

 

 

 

from the case.

Student

 

 

 

 

 

 

 

 

 

 

 

demonstrates

 

 

 

 

 

 

 

 

 

 

 

thought

 

 

 

 

 

 

 

 

 

 

 

leadership by

 

 

 

 

 

 

 

 

 

 

 

connecting

 

 

 

 

 

 

 

 

 

 

 

ideas, concepts,

 

 

 

 

 

 

 

 

 

 

 

and additional

 

 

 

 

 

 

 

 

 

 

 

insights in a

 

 

 

 

 

 

 

 

 

 

 

novel way.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

©2016 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class.!

!                                                                                                                                          Page 3 of 4!


JWMI 540: Strategy

Assignment 2

Weight: 15%

 

Assignment 2: Escatsa Risk Analysis

 

Criteria

Unsatisfactory

Low Pass

Pass

High Pass

Honors

5. Business

Business brief is

The business

The business

The business

The business

brief is

illogical and

brief is

brief is

brief is logical

brief is highly

professionally

unprofessional

somewhat

satisfactorily

and

logical and

formatted,

and contains

logical and semi-

logical and

professional. It

extremely

includes in-text

multiple

professional,

professional. It

includes in-text

professional. It

citations and

mechanics and

and includes a

includes in-text

citations and

includes in-text

references, is

usage errors.

cover page and

citations and

references a

citations and

logical, and free

There is no cover

some headings.

references that

cover page, may

references, a

from

page, citations or

Some citations

may not be

have mostly

cover page and

grammatical

references and

or references

consistent, a

appropriate

appropriate

errors.!

headings may be

may be

cover page, and

headings, font,

headings,

Weight: 10%

missing.

missing.Several

headings. The

and spacing.

professional font

 

 

mechanics and

headings and/or

Mechanics and

and spacing are

 

 

usage errors

the font or

usage errors, if

used. It enables

 

 

make parts of

spacing may not

any, are minor

the reader to

 

 

the text difficult

be the most

and have no

quickly skim and

 

 

for the reader to

professional.

impact on the

understand

 

 

understand.

There may be a

flow.

main points.

 

 

 

few mechanics

 

There are no

 

 

 

and usage

 

mechanics or

 

 

 

errors, but they

 

usage errors.

 

 

 

do not have a

 

 

 

 

 

major impact on

 

 

 

 

 

the flow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

©2016 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class.!

 

!                                                                                                                                          Page 4 of 4!

Escatsa Risk Analysis
13754

JWI 530: Financial Management I

Academic Submissions and Evaluations 

Assignment 2: Management Accounting Application 

Due Week 10, Day 7 (Weight: 22.5%)

 

In this assignment you will demonstrate your understanding of capital investment techniques by evaluating the following three case studies. 

Case Analysis 1 – Weight 20% of total assignment 

You work for a small, local telecommunications company. In five years, the company plans to undertake a major upgrade to its servers and other IT infrastructure. Management estimates that it will need up to $450,000 to cover all related costs; however, as a fairly young company, the goal is to pay for the upgrade with cash and not to take out loans.

 

Right now, you have $300,000 in a bank account established for Capital Investments. This account pays 6% interest, compounded annually.

 

A member of the finance department has approached you with an investment opportunity for the $300,000 that covers a five-year period and has the following projected after-tax cash flows:

 

Year

Projected Cash

 

Flow

 

 

1

$94,000

 

 

2

$114,000

 

 

3

$134,000

 

 

4

$114,000

 

 

5

$94,000

 

 

 

Based on this information, answer the following questions:

 

  • How much money will be in the bank account if you leave the $300,000 alone until you need it in five years?
  • If you undertake the investment opportunity, what is the Nominal Payback Period?

 

  • Using the factors for 6%, what is the Discounted Payback Period?
  • What is the Present Value of the benefits from this 5-year investment opportunity?

 

 

  • What is the Net Present Value of this opportunity?

 

 

  • If you leave the money in the bank and earn 6% compounded annually, will you have at least $450,000 in 5 years to fund the server and IT upgrades? By how much will you be “over” or “short” of what you need?

 

©2015 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.

 

 

JWMI 530 Course Guide – Spring 2015 !                                                                                        Page 12 of 16

 

JWI 530: Financial Management I

Academic Submissions and Evaluations

 

 

 

 

  • If you undertake the investment, will you have at least $450,000 in 5 years? By how much will you be “over” or “short”?

 

Case Analysis 2 - Weight 30% of total assignment

 

The CEO of Dynamic Manufacturing was at a conference and talked to a supplier about a new piece of equipment for its production process that she believes will produce ongoing cost savings. As the Operations Manager, your CEO has asked for your perspective on whether or not to purchase the machinery.

 

After talking to the supplier and meeting with your Engineers and Financial Analysts, you’ve gathered the following pieces of data:

 

  • Cost of Machine: $150,000
  • Estimated Annual After Tax Savings: $65,000

 

  • Estimated machinery life: 3 years (after which there will be zero value for the equipment and no further cost savings)

 

  • You seem to recall that Dynamic’s Finance organization recommends either a 10% or a 15% discount rate for all Cost Savings Projects. You are fairly sure it is 10%.

 

 

From your JWMI MBA, you understand that you need to understand the project financials to ensure that this investment will be economically attractive to Dynamic Manufacturing’s shareholders.

 

Calculate the Nominal Payback, the Discounted Payback, the Net Present Value and the IRR assuming:

 

  • Part A, BASE CASE: 3 year project life, flat annual savings, 10% discount rate

 

 

 

  • Part B. Saving Growth Scenario: BASE CASE but with 10% compounded annual savings growth in years 2 & 3.

 

  • Part C, Higher Discount Rate Scenario: 3 year project life, flat annual savings, 15% discount rate
  • Part D, 5 Year Equipment Life:5 year project life, flat annual savings, 10% discount rate

 

 

Discussion – in a Word Document in paragraph form, respond to the following:

 

  • From a Financial perspective, would you recommend this purchase to Management? Which scenario would you present and why?

 

  • In your opinion, which scenario is the most aggressive? If you were to select this scenario as the basis for your proposal, how would you justify the more aggressive economics?

 

  • In SIMPLE English (as in talking to a non-Finance and non-MBA person), explain why there was a difference in outcome between Part A and Part B.
  • Beyond Financial measures, what other considerations would you want to consider, before making a recommendation to Management?

 

©2015 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.

 

 

JWMI 530 Course Guide – Spring 2015 !                                                                                        Page 13 of 16

JWI 530: Financial Management I

Academic Submissions and Evaluations

 

 

 

 

 

Case Analysis 3 – Weight 40% of total assignment

 

You are the General Manager at the Bicker, Slaughter and Lynch Law Firm. There is an opportunity to buy out a small law firm that was just started by a young MBA/JD and you believe the firm can be grown and become a lucrative part of your Firm.

 

With help from your Finance leader, you have estimated the following benefit streams for this new division:

 

 

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

 

 

 

 

 

 

 

 

 

Before Tax

 

 

 

 

 

 

 

 

Cash Flow

 

 

 

 

 

 

 

 

From

 

 

 

 

 

 

 

 

Operations

$(149,000)

$-

$51,380

$88,760

$114,100

$129,780

$143,640

$167,300

 

 

 

 

 

 

 

 

 

After Tax

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

From

 

 

 

 

 

 

 

 

Operations

$(103,500)

$(50,500)

$36,700

$63,400

$81,500

$92,700

$102,600

$119,500

 

 

 

 

 

 

 

 

 

After Tax

 

 

 

 

 

 

 

 

Cash Flow

 

 

 

 

 

 

 

 

From

 

 

 

 

 

 

 

 

Operations

$(85,600)

$15,000

$48,600

$72,200

$95,550

$101,300

$125,200

$140,200

 

 

 

 

 

 

 

 

 

 

 

You estimate that the purchase price for this firm would be $200,000 and that additional net working capital would be needed in the amount of $60,000 in year 0, an additional $20,000 in year 2 and then $20,000 in year 5.

 

 

In addition to the purchase price, you would ask that your Advertising budget of $275,000 be increased by an incremental one time amount of $50,000 in advertising in year 0 to publicize the firm’s expansion.

 

 

Your Finance leader has indicated that the firm has access to a credit line and could borrow the funds at a rate of 6%. (Assume the cash associated with this interest is included in the above benefit numbers). He also mentions that when he runs Project economics for Capital budgeting (such as a new copier or a company car), he recommends a standard 10% rate discount but the one other time they looked at an acquisition of a smaller firm he used a 12% rate discount.

 

 

©2015 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.

 

 

JWMI 530 Course Guide – Spring 2015 !                                                                                        Page 14 of 16

JWI 530: Financial Management I

Academic Submissions and Evaluations

 

 

 

 

 

At the end of 8 years, the plan will be to sell this division. The estimated terminal value (the sale and the return of working capital) is conservatively estimated to be $300,000 of cash flow help.

 

 

Calculate the N Nominal Payback, the Discounted Payback, the Net Present Value and the IRR for this potential acquisition.

 

Discussion – in a Word Document in paragraph form, respond to the following:

 

  • From a Financial perspective, would you recommend this purchase to Management? Why?

 

  • What are some of the non-financial elements that would change your initial recommendation made in question #1.
  • Assumptions in Project Economics can have a huge impact on the result. Identify 3 elements/assumptions in your analysis that would make this project not be financially attractive? (E.g. Answer the question, what would have to be true for this to be a bad investment?)

 

 

 

Weight: 22.5%

 

 

Assignment 2: Management Accounting Application

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Criteria

 

Unsatisfactory

 

Low Pass

 

Pass

 

High Pass

Honors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. In Case Analysis

 

Did not

 

Partially

 

Satisfactorily

 

Demonstrated a

Exemplarily

 

 

1, calculate the

 

demonstrate

 

demonstrated

 

demonstrated

 

high level of

demonstrated

 

 

various investment

 

understanding by

 

understanding by

 

understanding by

 

understanding my

understanding by

 

 

options.

 

either not

 

calculating a

 

calculating 5

 

calculating a

calculating all

 

 

Weight: 20%

 

submitting the work

 

minimum of 4

 

questions

 

minimum of 6

seven questions

 

 

 

or only calculating

 

questions

 

correctly.

 

questions

correctly.

 

 

 

 

 

 

 

 

 

 

 

up to 3 questions

 

correctly.

 

 

 

correctly.

 

 

 

 

 

correctly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. In Case Analysis

 

Did not submit or

 

Partially analyzed

 

Satisfactorily

 

Completely

Exemplarily

 

 

2, fully evaluate

 

incompletely

 

the investment

 

analyzed the

 

analyzed the

analyzed the

 

 

and support your

 

analyzed the

 

options and

 

investment options

 

investment options

investment options

 

 

conclusions in

 

investment options

 

partially used

 

and satisfactorily

 

and used financial

and exemplarily

 

 

regards to the

 

and did not use

 

financial

 

used financial

 

knowledge and

used financial

 

 

investment options

 

financial knowledge

 

knowledge and

 

knowledge and

 

calculations to

knowledge and

 

 

by calculating the

 

and calculations to

 

calculations to

 

calculations to

 

explain

calculations to

 

 

nominal payback,

 

explain

 

explain

 

explain

 

recommendations.

explain

 

 

the discounted

 

recommendations.

 

recommendations.

 

recommendations.

 

 

recommendations.

 

 

payback, the net

 

 

 

 

 

 

 

 

 

 

 

present value, and

 

 

 

 

 

 

 

 

 

 

 

the IRR and fully

 

 

 

 

 

 

 

 

 

 

 

explain the financial

 

 

 

 

 

 

 

 

 

 

 

rational for your

 

 

 

 

 

 

 

 

 

 

 

recommendations.

 

 

 

 

 

 

 

 

 

 

 

Weight: 30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

©2015 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.

 

 

JWMI 530 Course Guide – Spring 2015 !                                                                                        Page 15 of 16

 

JWI 530: Financial Management I

Academic Submissions and Evaluations

 

 

 

 

Weight: 22.5%

 

 

Assignment 2: Management Accounting Application

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Criteria

 

Unsatisfactory

 

Low Pass

 

Pass

 

High Pass

Honors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. In Case Analysis

 

Did not submit or

 

Partially analyzed

 

Satisfactorily

 

Completely

Exemplarily

 

 

3, fully evaluate the

 

incompletely

 

the acquisition

 

analyzed the

 

analyzed the

analyzed the

 

 

buy out opportunity

 

analyzed the

 

opportunity and

 

acquisition

 

acquisition

acquisition

 

 

and support your

 

acquisition

 

partially used

 

opportunity and

 

opportunity and

opportunity and

 

 

conclusions by

 

opportunity and

 

financial

 

satisfactorily used

 

used financial

exemplarily used

 

 

calculating the

 

incompletely used

 

knowledge and

 

financial

 

knowledge and

financial knowledge

 

 

nominal payback,

 

financial knowledge

 

calculations to

 

knowledge and

 

calculations to

and calculations to

 

 

the discounted

 

and calculations to

 

explain

 

calculations to

 

explain

explain

 

 

payback, the net

 

explain

 

recommendations.

 

explain

 

recommendations.

recommendations.

 

 

present value, and

 

recommendations.

 

 

 

recommendations.

 

 

 

 

 

the IRR for the

 

 

 

 

 

 

 

 

 

 

 

potential acquisition

 

 

 

 

 

 

 

 

 

 

 

and fully explain the

 

 

 

 

 

 

 

 

 

 

 

financial rational for

 

 

 

 

 

 

 

 

 

 

 

your

 

 

 

 

 

 

 

 

 

 

 

recommendations.

 

 

 

 

 

 

 

 

 

 

 

Weight: 40%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5. Professionally

 

Written

 

Written

 

Written

 

Written

Written

 

 

communicated;

 

communication

 

communication

 

communication

 

communication

communication

 

 

writing is clear,

 

does not flow and

 

does not flow or

 

flows but lacks

 

flows and

flows and concisely

 

 

concise, and free

 

fail to justify or

 

the discussion

 

conciseness or

 

concisely and

and clearly

 

 

from mechanical

 

express student

 

fails to justify

 

clarity; assertions

 

clearly expresses

expresses the

 

 

errors.

 

assertions. Multiple

 

conclusions and

 

and conclusions

 

the student’s

student’s position

 

 

Weight: 10%

 

mechanical errors

 

assertions.

 

are generally

 

position in a

in an exemplary

 

 

 

or much of the

 

Several

 

justified and

 

manner that

manner that

 

 

 

 

 

 

 

 

 

 

 

communication is

 

mechanical errors

 

explained. More

 

rationally and

rationally and

 

 

 

 

difficult to

 

make parts of the

 

than a few

 

logically develops

logically develops

 

 

 

 

understand.

 

text difficult to

 

mechanics errors.

 

the topics. Few

the topics. Free

 

 

 

 

 

 

understand.

 

 

 

mechanical errors.

from mechanical

 

 

 

 

 

 

 

 

 

 

 

errors.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

©2015 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.

 

 

JWMI 530 Course Guide – Spring 2015 !                                                                                        Page 16 of 16

Finance for summer
7537

Here’s the assignment: pick a publicly traded company of your choosing. It should be one you’re familiar with, one that sells a product that you’ve used or seen, and one you would like to understand better. Then, we’re going to ask you to evaluate the company closely.

You should go about doing this using any materials you can get your hands on, including the following:

  • Financial Statements
  • Investor Presentations
  • Industry Reports
  • Newspaper/Magazine Articles
  • Consumer Reviews o Etc.

Once you’ve gotten a firm hold on the company, its financial standing, and its competitive positioning, we want you to use the tools we introduced in the first four lectures to evaluate the company from a variety of different angles. The successful assignment will include all of the following: 

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

  1. Analyze the company’s competition advantages, including the Sellers framework.
  2. Analyze the company’s stock value. This will include analysis of a company’s present P/E, PEG, P/B, and P/S multiples versus competitors in the industry and versus historic multiples going over the past 1-, 3-, and 5-year periods. You are expected to offer an opinion as to the current pricing of the company’s stock. You are also welcome to perform a DCF analysis utilizing appropriate growth rates and discount rate, but this is not required.
  3. Assess the company’s fixed-income makeup. Please identify the bonds that the company has issued, the amounts of those bonds, their structure, their various due dates, and their various interest rates. You may also want to identify their market values versus par values, but it is not required.

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. 

Analyzing Wal-Mart
7532

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.

 

Finance 4
7526

Introduction:

  • The past two modules have been a bit of a mash-up of different ideas and tools, which makes it difficult to ask you to perform a neat, simple task that covers all the material that we covered. Instead, we’re going to ask you to synthesize the bigger concepts from each of the past 4 lectures. We're going to do so using a company that most everyone is familiar with: Facebook.
  • Facebook, as everyone pretty much knows now, rocketed to popularity starting in 2005 and hasn’t looked back since. As you might expect from a highly-successful, capital intensive, high-tech operation that’s growing at blazing speeds, the company went through several rounds of financing to finance the business’s growth. We’re going to ask you to look at that financing and explain to us what was going on.
  • Though a savvy researcher could find these transactions herself via Google if she truly wanted to, we’ve gone ahead and pulled the big ones up for you in chronological order to save you some time. We encourage you to investigate each of these further, however. There’s no shortage of background on each of these. Here they are in nice news-bite capsules for digestion:
    • The Facebook group announced that it has raised between $10 million to $12 million in first round financing led by Accel Partners on April 15, 2005. As a part of the transaction, Jim Beyers, a Managing Partner at Accel Partners, joined the company's board. The post money valuation of the company was $100 million.
    • Facebook, Inc. announced that it has raised $27.5 million in its third round of funding led by new investor Greylock Partners on April 19, 2006. New investor MeriTech Capital Partners and existing investor Accel Partners invested in the transaction. The post money valuation of the company was $525 million.
    • Facebook, Inc. announced that it will raise $240 million in an equity round of funding from new investor Microsoft Corporation on October 24, 2007. As a result of the transaction, Microsoft Corporation will now hold 1.60% stake in the company. The round was raised at a post money valuation of $15,000 million.
    • Facebook, Inc. announced that it has raised $200 million in funding from Digital Sky Technologies Limited on May 26, 2009. Digital Sky Technologies Limited invested in preferred stock and acquired 1.96% stake, valuing the company at $10 billion.
  • So what was really happening here? What were the major events surrounding and shaping these investments? We want you to tell us the story of the business as it unfolded through these massive transactions.
  • In order to successfully complete this assignment, you’ll have to rely on your powers to navigate the world-wide web and your ability to work backwards a bit. The information is out there if you know how to look. Remember, until recently, this was a private company so we can’t easily verify estimates on these financial numbers. So, be sure to justify your thinking with plenty of evidence from similar businesses and events. Good luck!

Write a 3-4 page paper in which you:

  1. Describe the type of financing that was being used here and why it was being used.
  2. Speculate as to what the money was used for after each successive round of financing. (Don’t forget, Facebook was raising money to finance certain projects.)
  3. Provide an explanation behind the company’s bubbly corporate valuation during this time.
  4. Determine how outside investors were valuing this company. (Hint: look at similar businesses).
  5. Estimate the company’s major financial numbers (revenue and net income) based on the implied valuation of the most recent investment.
Assignment 2:The Facebook Deal
7522

Please proceed as follows:  

2.1 Expand your thoughts on topic Product Differentiation in Strategic Management: Formulation, Implementation, and Control.  Quote some information from the eBooks, then present your comments, and indicate how these topics apply to a well-known firm. (200 WORDS) 

Excerpt from eBook:

“Product Differentiation or Brand Identification creates a barrier by forcing entrants to spend heavily to overcome customer loyalty. Advertising, customer service, being first in the industry, and product differences are among the factors fostering brand identification. It is perhaps the most important entry barrier in soft drinks, over the counter drugs, cosmetics, investment banking, and public accounting. To create high fences around their business, brewers couple brand identification with economies of scale in production, distribution, and marketing” 

2.2 Expand your thoughts on Complexity of a Global Environment in Strategic Management: Formulation, Implementation, and Control.  Quote some information from the eBooks, then present your comments, and indicate how these topics apply to a well-known firm. (200 WORDS) 

Excerpt from eBook:

“Coke was finally achieving a goal that it had set a decade earlier when it went to India. That goal was to take the market away from Pepsi and local beverage companies. However, when it arrived, Coke found that the India market was extremely complex and smaller than it had estimated. Coke also encountered cultural problems, in part because the chief of Coke India was an expatriate. The key to overcoming this cultural problem was promoting an Indian to operations chief. Coke also changed its marketing strategy by pushing their “Thums Up” products, a local brand owned by Coke. Then, they began to focus their efforts on creating new products for rural areas and lowering the prices of their existing products to increase sales. Once Coke had new products in the market, they focused on a new advertising campaign to better relate Indian consumers.” 

2.3 Expand your thoughts on Conducting a Value Chain Analysis: Identify Activities. Make sure to quote some information from the eBooks, and then provide your own thoughts on the topic, and indicate the importance of such topics as they apply to a well-known company. (200 Words)

Excerpt from eBook:

The initial step in value chain analysis is to divide a company’s operations into specific activities or business processes, usually grouping them similarly to the primary and support activity categories. Within each category, a firm typically performs a number of discrete activities as installation, repair, parts distribution, and upgrading – any of which could be a major source of competitive advantage or disadvantage. The manager’s challenge at this point is to be very detailed attempting to “disaggregate” what actually goes on into numerous distinct analyzable activities rather than settling for a broad, general categorization. 

2.3 Expand your thoughts on Satisfying Corporate Responsibility.  Make sure to quote some information from the eBooks, and then provide your own thoughts on the topic, and indicate the importance of such topics as they apply to a well-known company. (200 Words) 

Excerpt from eBook:

Corporate social responsibility has become a vital part of the business conversation. The issue is not whether companies will engage in socially responsible activities, but how. For most companies, the challenge is how best to achieve the maximum social benefit from a given amount of resources available for social products. Research points to five principles that underscore better outcomes for  society and for corporate participants. 

Provide your thoughts on article in the attachment, with two key findings. 

Follow APA guidelines for in-text citations, and references.

 

Number Answers accordingly and Follow all requirements
7507

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. You have been given the following objectives:

Upon completing your Net Present Value (NPV) and Future Value (FV) Training Program, employees should be able to do the following:

  • Explain NPV and FV.
  • Describe the factors that are used in the NPV and the FV formulas.
  • Give an example of how to use the formulas for NPV and FV for a stock purchase.
  • Summarize the differences between the two formulas and the purpose of using each.

Develop a 10- to 12-slide PowerPoint Presentation (excluding title slide and reference slide) that cover each of the above topics. In the slide notes, include your explanations for each topic above. You must use a minimum of two scholarly sources. Format the presentation and cite your resources according to the APA 6th edition style guide as outlined in the Ashford Writing Center.

Net Present Value (NPV) and Future Value (FV)
7505

Conduct an internal and external environmental analysis for your proposed business (Fashion Clothing Boutique – Custom made and tailoring services). 

Discuss the forces and trends below that must be taken into consideration while developing a strategic plan. Given today’s business environment and  your selected business idea, provide a list of the lessons learned from your discussion for each of the items listed below. Use this discussion to complete this assignment.

Create a SWOTT table summarizing your findings. Your environmental analysis should take into account, at a minimum, the following factors. For each factor, identify the one primary strength, weakness, opportunity, threat, and trend, and include it in your table. 

  • External forces and trends considerations:

o             Legal and regulatory

o             Global

o             Economic

o             Technological

o             Innovation

o             Social

o             Environmental

o             Competitive analysis

 

  • Internal forces and trends considerations:

o             Strategy

o             Structures

o             Processes and systems

o             Resources

o             Goals

o             Strategic capabilities

o             Culture

o             Technologies

o             Innovations

o             Intellectual property

o             Leadership

 

Write a 1,400 word synopsis in which you analyze at least seven of the forces and trends from the list above. Your analysis must include the following:

  • Include economic as well as legal and regulatory forces and trends.
  • Critique how well the organization adapts to change.
  • Analyze the supply chain operations of the organization.
  • Identify issues and/or opportunities: 

o             Identify the major issues and/or opportunities that the company faces based on your analysis above.

o             Generate a hypothesis surrounding each issue and research questions to use for conducting analysis.

o             Identify the circumstances surrounding each issue; classify the circumstances; attribute the importance of each classification; and test the accuracy of the importance for each classification. 

Format your paper consistent with APA guidelines.

Conduct an internal and external environmental analysis for your proposed business
7502

3.1 Excellent description of forward contracts. Forward contract can be for currency exchange, supply chain, commodity prices, and more. Merna, AL-Thani  (2008, p 222) “In response to the increased foreign exchange risk, the market provided forward contracts on foreign exchange, foreign exchange futures (in1972), currency swaps (in 1981), and options on foreign exchange (in1982).” This strategy provided some risk mitigation as we expanded into the global economy.

 In addition to the existing forward contracts for metal and long-term contracts for petroleum, the onset of the increased price volatility in the late 1970s led to the appearance of futures contracts for commodities (for oil in 1978 and for metal in 1983). These were followed by commodity swaps (in 1986) and commodity options in 1986. (Merna, AL-Thani, 2008, p.222) 

These same contracts as you have stated can be used for hedging to reduce risk. What specific examples can anyone present? 

3.2 In many cases derivatives are more like a scale that balances the risk or reduces uncertainty. Consider a mutual fund that relies on the profits of the real-estate market and we want to protect against the down sides of the real-estate bust. We may invest in a derivative that makes profit on loan defaults. As the one fund decreases in value the other would increase. This would reduce uncertainty in your real-estate business. Both accounts may make money that is why they are in business but when one is losing the other may be gaining. Companies can further reduce risk by pooling these funds into portfolios that are similar in risk or industry to manage those risks.

This is a more likely scenario in the purchase of derivatives for the purpose of hedging, i.e. hedge funds. Derivatives serve other purposes such as future contracts to manage capacity planning for say a refinery. A manufacture or refinery is most efficient when running at 97% – 100% capacity future contracts can help with that. 

Can anyone think of other uses or examples of derivatives? Can anyone provide examples of hedge funds to reduce uncertainty? 

3.2b  Some of the challenges with risk mitigation are the cost above the value of the contacted price. Hedging, a way of offsetting risk, using derivatives can be challenging to calculate. 

They tried to hedge their exposures to these products by taking positions in other

derivatives, which didn't work. The hedges were hard to calculate and they didn't calculate them right. And the difficulties were magnified by the fact that a number of players found themselves in the same situation and tried to leave at the same time. It's known as a 'rush to the exits' or a 'crowded trade.' (Futures: News, Analysis & Strategies for Futures, Options & Derivatives Traders, 2005, p. 19) 

This is a specific example of challenges with risk management and derivatives. What comments does anyone have on this example? How would you use this in risk maangment? 

3.3  Most employees whether supervisors, managers, or employees have some audit responsibilities such as random audits of financial records. Annual audit points for a specific function or department. Project management generally has audit responsibilities such as governance policies that they have to meet.

 Do you have responsibilities to your audit committee? Do you have audit controls set forth by your manager or company? If so what specific examples of audit requirements do you have to meet? How often do you have to meet these requirements? Does anyone else have an example they can share with the class?

Forward contracts and options
7497

Prepare written responses to the Mini Case problems from the text below:  

Prepare a 350 word summary in which you compare and contrast at least two risk management tools and techniques from forward contracts, future contracts, and derivatives. 

Make a recommendation to management about which technique is most appropriate from a risk management standpoint. Support your findings by including answers and rationale from the Mini Case.Mini Case

For your job as the business reporter for a local newspaper, you are asked to put together a series of articles on multinational finance and the international currency markets for your readers. Much recent local press coverage has been given to losses in the foreign exchange markets by JGAR, a local firm that is the subsidiary of Daedlufetarg, a large German manufacturing firm.

Your editor would like you to address several specific questions dealing with multinational finance. Prepare a response to the following memorandum from your editor:

  • To: Business Reporter
  • From: Perry White, Editor, Daily Planet
  • Re: Upcoming Series on Multinational Finance

In your upcoming series on multinational finance, I would like to make sure you cover several specific points. Before you begin this assignment, I want to make sure we are all reading from the same script because accuracy has always been the cornerstone of the Daily Planet. I’d like a response to the following questions before we proceed:

  1. What new problems and factors are encountered in international, as opposed to domestic, financial management?
  2. What does the term arbitrage profits mean?
  3. What can a firm do to reduce exchange risk?
  4. What are the differences among a forward contract, a futures contract, and options?

Use the following data in your responses to the remaining questions:

Selling Quotes for Foreign Currencies in New York
Country—Currency Contract $/Foreign
Canada—dollar Spot .8450
  30-day .8415
  90-day .8390
Japan—yen Spot .004700
  30-day .004750
  90-day .004820
Switzerland—franc Spot .5150
  30-day .5182
  90-day .5328
  1. An American business needs to pay (a) 15,000 Canadian dollars, (b) 1.5 million yen, and (c) 55,000 Swiss francs to businesses abroad. What are the dollar payments to the respective countries?
  2. An American business pays $20,000, $5,000, and $15,000 to suppliers in, respectively, Japan, Switzerland, and Canada. How much, in local currencies, do the suppliers receive?
  3. Compute the indirect quote for the spot and forward Canadian dollar contract.
  4. You own $10,000. The dollar rate in Tokyo is 216.6752. The yen rate in New York is given in the preceding table. Are arbitrage profits possible? Set up an arbitrage scheme with your capital. What is the gain (loss) in dollars?
  5. Compute the Canadian dollar/yen spot rate from the data in the preceding table.
Mini Case
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ENGAGE IN A DISCUSSION, WHERE YOU RESPOND TO EACH RESPONSE – 200 WORDS FOR EACH

B1a.  It is necessary to monitor and control strategic plans because most strategic plans are based on assumptions of something in the future. This means that if the future items or assumptions change, the strategic plan needs to be able to adapt. To know if the future has changed, the strategic plan must be monitored and controlled. Managers at a minimum should be responsible for monitoring and controlling strategic plans. The reason for this is because they have insight on both sides of the plan. The managers see the future of the strategic plan and they also see what is being accomplished presently to accommodate the strategic plan. The pit falls of failing to monitor and control a strategic plan can be disastrous. The biggest disaster would come from a strategic plan that has been implemented to meet an objective or goals that is no longer relevant. There could be a huge waste of resources and manpower working towards an irrelevant goal. Because of this, it would be a snow balling chain of events. There would be personnel turnover, profit losses, and the list goes on. Depending on how big or important the irrelevant strategic goal or plan was would determine the catastrophic magnitude of not controlling or monitoring a strategic plan.

B1b.  It is necessary to monitor and control strategic plans when the market shifts.  A good example is the interest rate on loans. They are very low now! The event that was announced recently by Nancy Yellin the head of Federal Reserve, "stated rates will go up in 2015."  The management team, executives, and stakeholders should monitor and control strategic plans to the interest rate in this case.  The pitfalls of failing to monitor and control strategic plans the organization would find it difficult to handle risk. There could be a competitor who would buy you out or lower their prices and put you out of business.

B1c.  Any company should have a necessity when it comes to monitoring or controlling a strategic plan. The main reason is a strategic plan is based on what if's or what is predicted in the future. These means along will tell a company there is no guarantee on a strategic plan. The world today is fast moving and ever changing. A company should always monitor and control their strategic plans or they could be left behind or even worst have to file bankruptcy. A company monitoring the strategic plan will allow, the company the means to adapt to any changes in the industry, and make them changes into the strategic plan. The upper management or lower level management should be the employees in charge of monitoring and controlling the plan because of their everyday dealing with the company. These levels of management have a better feel of the day to day changes and operations in the industry. Having a strong management level will ensure the future of the company. The pitfalls can be many when it comes to not monitoring or controlling the strategic plans. The two main factors could be profit loss and employee turnover rate. If the plans are not changed to adapt with the times the company would show a loss in sales which in return have a company profit loss. The employees may not want to work for a company that is behind in the times and want to be with a up to date company.

B1d.  Strategic plans are just that, there are plans that are for the future goals that have been put in action but not yet completed. However, plans sometimes change and with the changes someone needs to have a watchful eye open to monitor and control that which need to adjust to the changes of the strategic plans, for to not to have someone to monitor or have some control on these plans can have a terrible ending to these plans. I believe anyone who is involved in the strategic planning stage should be the one who is monitoring and controlling the situation. At least they should have a team of managers that can be put into the position of keeping their eyes open for the changes that will occur causing the strategic plans to be revaluated. The pitfalls that a company can suffer for failing to monitor and control strategic plans is that because we are in a never ending changing world, and the way the strategic plans was planned two years ago might not fly today because of the changes in technology or whatever; and failing to keep an eye open and alert can cause a company to loose their control in the market or loose a great deal of revenue because of not monitoring and controlling strategics plans.

 

B2a. As an employee of my organization (the United States Army, aviation branch), I do not have direct input in the creation of the strategic plan but have a large part in implementing it. As far as the creation process goes, we have quarterly surveys that are used to help adapt the strategic plan as we progress so I guess you could say I have indirect input in the creation process. As far as implementation goes, my specific job (technical inspector) requires that I be very proficient and knowledgeable about my specific aircraft along with training younger guys in maintenance practices, maintaining the training program, maintaining all the forms and records for several aircraft, and being direct representatives of the commander to make on the spot decisions about the airworthiness of aircraft. So with all that my job entails, almost all of those things fall in line with our strategic plan so you could say that I have a pretty large role in implementing, monitoring, and controlling the strategic plan. The commander often comes to us to get a feel for how things are going with the troops. It is not an official way of creating the strategic plan but an unofficial way of helping the commander create it.

B2b. Each employee of the organization should have a role in the strategic planning process that corresponds to his or her position. For example sales agents should be acquainted with and assist with the strategic planning for sales growth. PR managers should help with the planning section on promotion, customer satisfaction. Each employee is responsible for implementing the strategic plan on their level of work. Those involved in administration and accounting with implement the budget section of the strategic plan, those involved in sales can implement the part of the strategic plan regarding increasing customer satisfaction through improved customer service and attention. All good employees who care for the good of the company should play an active role in monitoring and controlling the strategic plan even though they don't have decision making capacity. Their role would be informing their respective supervisor and/or the administration about any potential risks they identify, any opportunities they find that could aid in fulfilling the strategic plan, etc. They should also regularly report on the success and or failings and results of the specific points from the strategic plan they are responsible for implementing.

B2c. As an employee of my organization, I do not play a role in the strategy planning process of our organization. That privilege is only done by the higher, higher ups and probably those who are invited in to share ideals and/or give inputs of how things can be better in certain areas of our organization. As an employee, I do not have a role in the implementation process either, this is usually set up for the managers to do, and yet I was told by a manager of the organization, even they, as managers are kept in the dark about some things that was supposed to be implemented and it was not done, because they didn’t know about the planning. As an employee, I do not play a role in the monitoring and controlling process of the organization, this is done by the managers and supervisors of the organization. Although, there is an opportunity to become a supervisor for me so that I can be involved more in the implementation, monitoring, and controlling process, but I feel as a supervisor, they are not free to think on their own in some aspects of the job. As an employee of the organization, I am part of a process to help make sure that the goals of the organization is reached, once known by all.

B2d. As an employee of an organization the strategic planning process role simply corresponds to the employee’s position.  For example the marketing manager will look to promote sales and growth in the marketing space to result in profit. Likewise the outside sales manager will look to promote growth in sales. This applies to every division of the organization.

As an employee of an organization the strategic implementation process would require a series of steps, programs, investments, over extended period of time. Additionally each employee would execute their own work expertise or function at each level (Pearce & Robinson, Chapter Chapter 10,  2009).

Every employee has a responsibility of monitoring and controlling the strategic plan whether or not they have decision-making capacity.  This creates check and balances and keeps the strategic plan in action, protected, and in place. 

RESPOND TO DISCUSSION COMMENTS ACCORDINGLY: 

SUBJECT MATTER - MONITORING AND CONTROLLING STRATEGIC PLANS (B1a - B1d); STRATEGIC PLAN PROCESS AND IMPLEMENTATION (B2a - B2d). 

EACH RESPONSE MUST BE AT LEAST 200 WORDS AND NUMBERED ACCORDINGLY

ENGAGE IN A DISCUSSION, WHERE YOU RESPOND TO EACH RESPONSE – 200 WORDS FOR EACH
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This 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. 

Company TARGET CORP. Attached is various financial info sheets and company overview

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, not just websites.
  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.

 PLAGARISM FREE OF COURSE! 

Attached are the financial documents for the company

Financial 8-10 pg paper
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Ratio Name Johnson & Johnson Pfizer
     
Profit Margin 16.10% 24.70%
Inventory turnover ratio 3.1 1.7
Average Collection Period 59.4 days 69.1 days
Cash Debt Coverage Ratio 0.27 0.16
Debt to Total Assets 46.60% 127.50%
     

 1) Please explain the meaning of each of the Pfizer ratios above.

 2) Please state which company performed better for each ratio.

 

Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 qustions below
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1. In the PERT scheduling technique, the text (Kerzner, 11e) mentions that you estimate the schedule using a best-case, expected-case, and worst-case scenario. Compare and contrast these three methods. 

2.A customer has asked you to crash the project and told you to crash an activity that is not on the critical path. What do you, as the project manager, suggest to your customer?

 

PERT scheduling technique
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Student life does not generally afford a great deal of free time to pursue your personal interests; however, at one point, you may have considered turning a personal interest or hobby into an official enterprise. Today, you have finally decided to turn that hobby into a business but have realized that you need start-up capital from a lender or investor.
To obtain funding, you need to convince a lender / investor that your business is more than a hobby. You need to demonstrate that you have a firm grasp of your business, the accounting practices that impact your business, the controls needed to safeguard assets, and which accounting system will produce accurate and relevant financial information.
Write a six to eight (6-8) page business plan in which you:

  1. Describe the type of business you have created including: 

    a. The product or service, and general staffing plan. Provide a rationale for your plan. 

    b. The form of your business and the benefits it offers your particular business,

    c. A chart of accounts specific to your business, including a rationale as to the selection of each account. (Note: The chart of accounts is a blueprint of your business for the lender/investor. It should report the expected resources that you will consume in your business (assets), the sources of those resources (liabilities and equity), the sources of revenue, and expenditures that you expect to incur to earn those revenues. You may build a detailed chart that includes business units, divisions, product lines, etc.)
  2. Based on the form of your business, analyze whether or not you will be required to use Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) accounting methods and how the IFRS / GAAP convergence will impact your business. Suggest how you will incorporate any changes into your books and records. (Note: You need to demonstrate to the lender/investor that you have recognized possible changes to GAAP that may impact the accounting and reporting of your accounting events.)
  3. Prepare a pro forma balance sheet and income statement providing the assumptions made and support the valuations assigned. 
  4. Considering the value of assets (assigned per your balance sheet) used within your business, recommend two (2) specific internal controls that you will implement to protect your company’s assets and resources, justifying how each will provide assurances to management. (NOTE:  Safeguarding assets and protecting personal data are paramount to ensuring the viability of a business.  Demonstrate to the lender/investor that your assets will be safeguarded and customer information (if applicable) will be protected.)
  5. Based on the internal control recommendations that you made, suggest how you will implement each within your business environment, indicating how challenges or resistances will be overcome.  
  6. Evaluate the impact of the regulatory environment, including the Sarbanes-Oxley Act and other regulatory requirements, on your business venture, giving considering to how you intend to comply with the requirements and the general impact to decision making within your business.
  7. Use at least four (4) 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. 
You are an entrepreneur
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The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method.  The analysts are puzzled, since the NPV indicated rejection, but the IRR and Payback methods both indicated acceptance. Explain why this conflicting situation might occur and what conclusions the analyst should accept, indicating the shortcomings and the advantages of each method.  Assuming the data is correct, which method will most likely provide the most accurate decisions and why. 

only need one or two paragraphs

PBP QUESTION

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