Using the relevant literature reviews from the past ten years, critically evaluate each hedging method identified in (1) and relate to appropriate examples from the chosen companies to support your arguments.

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  • Using the most recent three years relevant information from the chosen companies, list and discuss two different foreign currency hedging methods that employed by the chosen companies to manage their foreign currency transaction exposures.
  1. List and describe hedging method (B) employed. (SWAP METHOD) 600 words

Describing about the swap method usage in 3yrs info about the Qantas Airways Limited & Virgin Australia Holding ltd…………….. Benefit of swaps method and disadvantage

–Swaps is a derivative product in which two counterparties exchange certain benefits of one party’s financial asset for those of the other part’s assets.

  • Foreign currency swaps

 A FX swaps in a simultaneous sale and purchase transaction that has two settlement dates:

The “start date” when a currency is first exchanged for another at an agreed exchange rate (agreed rate/ swap rate)

The “end date” when the currencies are exchanged back at an agreed exchange rate. (close the deal)

Eg: Transaction is different and set by the market and will generally reflect the current interest rates of the two countries involved for the term of the FX swap.

(Benefit disadvantage, Risks)

  • Cross currency swaps
  • Currency swaps
  • Current interest rate swaps: Is an agreement to exchange periodic payments related to interest payments on a same currency which can be fixed against floating. There are other variations such as 3month floating against 6months floating.
  • Using the relevant literature reviews from the past ten years, critically evaluate each hedging method identified in (1) and relate to appropriate examples from the chosen companies to support your arguments. (300words)
  1. Critical evaluation of hedging method (B). (SWAP METHOD) need to include 3 or 4 research articles

How have your thoughts about your incoming and outgoing money changed? If they haven’t, what insight could you give to others based on your own experience?

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Extra Credit Opportunities (Online Learning)
Financial Planning Budget (20 extra credit points)

Find your “goal” job and determine the following: o What is the base level salary or hourly wage?

Do you feel you have experience to earn more than the base level salary? If so, look to the average (or above) salary

Determine the “take home” amount vs. salary, as taxes, health insurance, retirement, etc., are all items that come out of the bi-weekly paychecks before the reach our bank accounts o Does the company provide health insurance? o Is there one location for this position/company, or do you have options?

Find your living environment o Look for what the average apartment/rent costs in the area you’ll be working o Are you sharing an apartment/living spot or living alone? Sharing bills, etc. o What utilities will you need in your apartment/house/condo, etc., that you will need to consider?

Water, Heat, Electricity, Internet, Cable, etc.. o Create a monthly grocery list, understanding that some items will need to be purchased weekly, if they are perishable

Now, create a budget around the above mentioned topics o Every budget will look different. Below is an example table of what it may look like, but please add if you feel you have other items that need to be listed. o You could set this up in a way that lays out an actual month, suggesting the dates to keep track o The money left over is money do with how you choose – Consider saving a majority of it, while allowing yourself to use the rest how you choose something to consider as we complete this activity is that everyone has different experiences with budgeting. Some of you may already budget in this way, some may have never considered laying it all out in writing.
Write up for Financial Planning Budget (1-2 pages):

What was your goal/dream job and location of choice?

What are you taking away from this assignment?

How have your thoughts about your incoming and outgoing money changed? If they haven’t, what insight could you give to others based on your own experience?

How do you perceive saving money? How would you set a goal and meet it for the sake of saving 6 months’ worth of bills – this is recommended by many financial planners
If you have not met with a financial planner, check to see if your bank offers a financial planner you can speak with to make sure you’re on the right track
Example Budget
Item Income (+) Date In Pay Out (-) Date Out Total Bi-Weekly Salary Rent Utilities Credit Card Payments Student Loans Car Payment Car Insurance Phone Payment Health Insurance Groceries Gym Membership
Grocery Shopping on a Budget (10 extra credit points)

Whether you grocery shop once a week or once a month, create what you need and compare it to your current budget.

As we’ve already created a “future” budget, do something similar with your current situation (1 page) o I do not need to see your current budget for this assignment, only your grocery list for the month (weekly, bi-weekly, or monthly lists) o We have a PowerPoint on “grocery shopping on a budget”, so now it’s time to put your skills into action. DO NOT GO TO THE STORE FOR THIS ASSIGNMENT – look your items up online for the prices, compare the prices of your budget to what you have available to spend. o This helps us to develop skills around eating healthy while staying within the college student budget

Reflect on how this helps you understand that eating healthy on a college budget is manageable (1 page)

Utilizing the Four Habits of Mind that the university has adopted to help develop our educational programs & clusters, please identify one that is both meaningful to you and relates to the concepts of Health and Wellness.

https://wicked-problem.press.plymouth.edu/chapter/what-are-the-habits-of-mind/ o Tie in different lessons/skills learned or developed through the course of this class o Identify how you can best explain the concept of your chosen Habit of Mind as an elevator pitch to someone

 Explain the following:

 What is it?

 What causes this cancer/disease? What are the risk factors? o Risk factors are biological, psychological, social or environmental impacts that make it more likely for us to develop a behavior, disease, etc.

 In this case, it would be the development of a disease or cancer and could be related to our environment, social settings, or biological factors (genetics)

 What different populations does it impact?

 How can it be treated/cured, if at all?

 What health choices can we make to counteract our chances of developing this cancer/disease?

Explain what the entrepreneur’s financial restructuring AT- WACC (% Debt and % Equity) need to be in order to create a positive ROI.

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Instruction Attached at bottom.
Assessment: The Angel Investor

This Competency Assessment assesses the following outcome:

MT480M6: Incorporate the combined attributes of debt and equity given a cost of capital model.

The concept of after-tax Weighted Average Cost of Capital (WACC) is a common issue when studying finance at all levels. The impact of taxes, applicable to most forms of financing is a key component of studies in the field of finance. The Assessment questions will present the opportunity to assess and build upon your knowledge of and ability to calculate the after-tax WACC and the cost of debt and equity.

Read the fictional scenario and respond to the checklist items in this written Assessment.

Scenario: As an Angel Investor you have been asked to assess an entrepreneur’s product and financing options. In your role as an Angel Investor you focus on one year at a time. The entrepreneur asks for $100,000 immediately to purchase a diagnostic machine for a healthcare facility. The entrepreneur hopes to be financed with 60 percent debt and 40 percent equity. As the entrepreneurs’ venture capital partner, you assign a cost of equity of 15% and a cost of debt at 10%. You require a Return on Investment (ROI) of 8%. You are using an After Tax Weighted Average Cost of Capital (AT- WACC) model. A 35% marginal tax rate is applied Address the following checklist items:

Checklist:

Explain the tax benefits of debt financing.
Calculate the AT- WACC with a 60% debt and 40% equity financing structure.
Apply the calculated AT-WACC to explain why this is or is not a viable investment for you as the Angel Investor.
Explain what the entrepreneur’s financial restructuring AT- WACC (% Debt and % Equity) need to be in order to create a positive ROI.
Explain why you as the Angel Investor would require more or less debt versus equity financing. Be sure to note the nature of the claims on assets in times of a bankruptcy.
Submit your response in a minimum of a 2-page APA formatted Microsoft® Word® document to the Dropbox with additional title and references pages.
Access the rubric

Minimum Submission Requirements

Address all the checklist items.
Include a strong thesis statement, introduction, and conclusion. The main points of the response should be developed and explained clearly in the denial letter with appropriate financial and accounting terminology.
Your content should follow proper APA citation style. For assistance with APA formatting, go to the Writing Resources accessed through the Academic Success Center within the Academic Tools area of the course. APA formatting dictates that your paper includes a cover sheet (i.e., title page), the paper is double spaced, in Times New Roman 12-point font, with correct citations, uses Standard English with no spelling or punctuation errors.
If work submitted for this competency assessment does not meet the minimum submission requirements, it will be returned without being scored.

What does ‘security prices reflect all relevant information’ mean? Explain all relevant investment strategies agreeing and/or disagreeing this statement.

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You can choose between these three topics:
1.What does ‘security prices reflect all relevant information’ mean? Explain all relevant investment strategies agreeing and/or disagreeing this statement. Give examples.

2. Discuss the impact of premature financial liberalisation on macroeconomic and financial stability. Give examples.

3. Discuss McKinnon-Shaw theory of financial liberalisation. How may financial liberalisation affect quantity and quality of investment and the economic development according to McKinnon and Shaw? Give specific examples.

Let me know which topic as I can provide sources, especially for the first one, I have a few.

Demonstrate a critical understanding of the nature and significance of financial systems within a changing environment.

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Assignment Aim

It should be shaped by the critical and reflective knowledge gained through your study of the module and demonstrate that you have achieved an understanding of the concepts within the context of your role in your own organization or an organization with which you are familiar.

This will be achieved by drawing on the relevant range of topics studied during the module, and by applying knowledge, understanding, application, relevance and intellectual ability to your chosen module topic.

Assignment Brief

Work-based assignment (3500-4000 words):

You are required to write a report which critically evaluates the application of an aspect of theory presented in this module within your organization or an organization with which you are familiar.

Reflective Statement (1000 – 1500 words)

You are required to write a reflection of your learning from the module, which will identify the significance of the module to the individual’s personal and professional development; its significance to their current and future roles/careers and if appropriate its significance to your organisation. The Reflective Statement should include areas for further development, where these have been identified.

Assessment Guidance

The assessment of your work will look at whether you can demonstrate that you have achieved the learning outcomes for the module and in accordance with the grade criteria are listed in section 5 of the student handbook.

The main criteria for assessment are:

Work-based assignment

Demonstrate systematic and critical understanding of the functional disciplines, techniques and concepts used in the planning measurement, monitoring, controlling and forecasting of financial activities and performance.

Demonstrate a critical understanding of the nature and significance of financial systems within a changing environment.

Critically apply knowledge appropriately in order to analyse problematic situations and identify how organisations can improve the performance of their financial management processes as well as plan more effectively.

Produce a project, which meets both the academic criteria for postgraduate study and the expectations of employers.

Reflective Statement

Demonstrate effective working as a member of a learning group of professionals and contribution to the professional and personal development of others as well as an ability to learn from reflection.

 

Assignment Advice

In choosing a piece of work for your assignment, you are recommended to pay attention to the following criteria as emphasis is placed on these as part of the assessment:

Is it of a manageable size for a detailed analysis (neither too big nor too small)?

Is it accessible for study e.g. do you need to obtain permission before you can start?

Does it have a well-defined focus?

Does it have clear and well-defined boundaries?

Is it significant and important e.g. to you or somebody else?

Can you as a manager and/or your organization learn from this assignment?

If these criteria cannot be met within your own organization, you may select a topic from somewhere else to study for your assignment. However, it is recommended that you discuss this with your module tutor first.

Remember that the award of Master’s level credits will seek to assess your critical understanding of the links between academic principles and their practical application in your professional environments.

An assignment will fail if you have not demonstrated that you have achieved the module learning outcomes and/or that the format for your chosen piece of work is not adhering to the assessment criteria mentioned above.

An assignment will tend to fail if the chosen topic is not consistently defined throughout and the reasons for this is not explained, if the conclusions are not supported by the findings, if you cannot demonstrate that you have a useful knowledge of your chosen topic and if there is no or only little evidence of critical thinking and reflection of academic theories and concepts.

Some useful self-test questions:

Does the work demonstrate your ability to select, reflect upon and critically evaluate an appropriate range of academic material covered by the module curriculum?

Does the work provide a useful analysis of your chosen topic? Reproducing lectures and textbooks un-critically will not be considered appropriate for a Master’s level course.

Does the work make useful and feasible recommendations taking into account the specific circumstances of the chosen topic area?

Does the work demonstrate application and relevance in the professional workplace environment?

Assignment format

The main text of your assignment should be of approximately 3500-4000 words and must be typed or word-processed. Other relevant documents and material should be presented as Appendices. Word lengths will be strictly adhered to. Work exceeding the word length with more than 10% will not be marked. Other relevant documents and material should be presented as Appendices.

Managing your Project

Identifying your Topic

Reflect on your current or previous work situation and identify a management issue, which you and/or your organization might benefit from you exploring further. It can be a project you have been asked to carry out at work, or it can be a situation, which was difficult to handle or it can be a change in the services which you are providing. If you are in doubt about which topic to choose, discuss the various possibilities with your respective module tutors.

Finding a Focus

Once you have identified an area of work you need to ask yourself: “What do I as a manager need to learn from this situation?”  Your approach will be as individual as you are, however generally students tend to undertake one of three approaches;

Perhaps you can identify a specific problem which you need to address in your management practice, e.g., you have just been given a new budget to manage and have some concerns about the impact of it.

Or perhaps you find it more difficult to identify a clear problem, but you are aware of a number of issues concerning management of resources that you would like to explore.

At this stage in producing the work-based assignment it is possible to become very frustrated.  It is important to remember that this is the most difficult part of the learning process and one in which you need to allow yourself time to discuss with your tutors, fellow students, colleagues, line manager etc., and to reflect and focus on your learning needs.

Researching your Focus

This involves two activities: reading and active research.

Reading

Your chosen focus should direct your reading.  The modules and tutorials provide a forum for you to explore areas of knowledge/practice in a practical way.  Theories, models, academic ideas which you think are useful to you should be recorded, in particular keeping notes on how they are useful to you (perhaps they helped you to think about a management issue in a new way?) and how you might use them.

Research

From the theories, models and academic ideas you have gathered it is now time to apply them to your work setting.  You may choose any of the accounting theories that you think are appropriate for you e.g. activity based costing or investment appraisal.

At this stage in the learning process you are trying to use academic knowledge to make sense of a situation which you are required to manage.

Recording and analyzing your findings

Now you are interested in exploring what you have found as the result of your reading and research activity.

Findings

The facts need to be established e.g. resource availability or resource requirements.

Analysis

Your data must then be analyzed using the concepts that you have selected as appropriate.

Writing your Work Based Assignment

It is important to think about the structure as well as the content of your assignment.  You need to remember that the readers (academics, line managers) need to read what you want to tell them and not everything ‘you know’ about a particular area of study.  Therefore you should approach your writing in a focused way.  The following example provides a useful template for anyone who is unsure about what an assignment might look like.

The structure should include:

Summary

A short summary of the assignment, which includes your chosen focus, what you have attempted to do and your findings/analysis and recommendations.  As this is a distilled synthesis of your work it is often useful to complete this part of the writing until the end. 

Introduction

This should include details of what you set out to do, how, why, and what you needed to learn.  In addition some brief explanation regarding the format of the assignment is also required.

Context

Here you set the scene by providing an overview of the topic area including you learning needs and your reading.

Research

Here you detail your research approach and what you did.

Findings

These must be presented clearly.  Where there are lengthy findings these may be attached to the assignment as an appendix and a summary placed in the main body of the assignment.

Analysis and conclusions

Here you need to reflect on your findings in light of your management practice.  In addition there may be lessons which the organization needs to learn from your work.

Recommendations

These need to emerge naturally from the body of your assignment.  They should be attainable and realistic.  They should provide a framework for future work for you or the organization.

Other things you might need to know

Writing an assignment requires an understanding of the expectations readers have of you. Here are some additional points that you may need to consider;

Work should be well presented – no spelling mistakes, use of poor grammar etc.  If you build in editing time into the writing process you will ensure that your assignment is presented appropriately.

Referencing of sources should be clear (please see appendix B on referencing if you are unsure as to how to reference your work).

Anecdotal stories or practice bias should not be presented in your assignment as ‘evidence’ as they are not acceptable.  Whilst your experience and views are important you must remember that your management practice should be based on objective, impartial evidence.

Conclusion

The object of the exercise, writing a work-based management assignment, should not be a futile exercise.  The experience and learning you gain whilst undertaking completion of the assignment should provide valuable, enabling and transferable learning.  If you get stuck or have a mental block contact your tutor, line manager in supervision or your peers and get support by talking about what you are trying to achieve.  Above all remember that the Programme has been designed to be the beginning of an ongoing critical, reflective, learning approach to practice and therefore the learning does not stop when the Programme is over.

Notes on Referencing Your Work

Within the body of the report

Referencing is important in its own right.  A management assignment or academic essay needs to demonstrate its validity by giving the sources of the ideas, concepts and data used in the work.  A precise reference that enables the reader to locate the material referred to is exactly the hallmark of good quality work.  References within your assignment should be made using the author’s surname, followed by the date of the publication, e.g., Douglas (1994) or (Mercer et al, 1997) or Mickey and Mouse, 1998a).  The positioning of the brackets depends upon the wording in the text.  The suffixes a, b, c, etc.) are added to differentiate between publications by the same author(s) in the same year.  You should include books (and pamphlets and journals etc.) that you have consulted, as well as those directly referenced in a bibliography at the end of the assignment.

Bibliography

The following constitutes good practice: the bibliography should be a single list in alphabetical order by author, where the format for each entry is as follows,

Books  Author, (date of publication), Title, Edition (if not first), Publisher e.g., Mazur, L & Hogg, A, (1993). The Marketing Challenge. Adison-Wesley.

Journals Author (date of publication) Title. Journal. Volume: Pages (beginning and ending) e.g., Rothwell, R and Gardiner, P (1989), The Strategic Management of reinnovation.  R & D Management, 19, 2:19 – 29

Internet Publications Material published on the World Wide Web will often be available in print, in which case the normal reference format can be applied.  Ensure that the full source of the document is provided in each case e.g., Software Engineering Institute (1993), The capability maturity model for software CMU/SEI/http://ricis.cl.uh.edu/CMM/TR24/tr24.html

The best way to avoid any risk of plagiarism is to reference all the important ideas and facts you have read in your work (please see the student handbook for information on plagiarism).

Using examples, critically explain factors to be considered in estimating the growth rate of the residual earnings model at the end of the forecast period.

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1. From the perspective of shareholders, why do you agree (or disagree) that the residual earnings is a more accurate measure compared to the conventional earnings? Discuss the drivers of residual earnings as part of your answer.
(250 words)
2. Using examples, critically explain factors to be considered in estimating the growth rate of the residual earnings model at the end of the forecast period.
(250 words)

Use the two or three of the three references:
Main textbooks

S.H. Penman, Financial Statement Analysis and Security Valuation (McGraw Hill) Fifth Edition
K.G. Palepu, V.L. Bernard, P.M. Healy and E. Peek. Business Analysis and Valuation: IFRS edition (Thomson Learning)
R.H. Parker, Understanding Company Financial Statements (Penguin)

Describe how you will divide $25,000 across the three companies (e.g. $10,000 in Company 1, $10,000 in Company 2, and $5,000 in Company 3).

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  1. Week 3 Stock Journal

This is the first of three stock journal assignments that you will complete during this course. For this assignment, two templates have been provided for your use. In one template, you will enter your chosen companies, the share prices, and the number of shares you will be purchasing given your budget of $25K. The other template is where you will write your rationale/summary. Please download both templates, and complete, save, then upload both templates to Blackboard when submitting your work.

Scenario

Capital markets and the ability to raise funds for corporate uses are essential to the U.S. economic system.  For this assignment, imagine that you have $25,000 to invest in U.S. companies. You are buying used stock. The company got the money when it issued the stock originally. You will be buying it from an existing owner.

You are investing, or buying, the stock because you believe the company will make money and pay you a dividend in cash. Each share of stock that you buy entitles you to any dividend declared and a vote at the annual stockholders’ meeting.

The stock also allows you the ability to earn your money back by selling the stock. Of course, investing in stocks is risky and there is the possibility that the stock you buy will be worth less when you want your money back. The company is not obligated to give you any of your money back. You will only get your money back if another investor wants to buy your stock.

Instructions

Using the above scenario and the resources listed below, complete the following directions for your Week 3 Stock Journal entry:

  1. Select three US companies that are publicly traded using your knowledge and experience and make sure you are practicing good diversification. Jim Cramer, Money Manager, on CNBC, plays a game at the end of his show called “Am I Diversified.” Check out the short clip, Am I Diversified – Mad Money [Video], to get a sense of industry diversification.
  2. Describe how you will divide $25,000 across the three companies (e.g. $10,000 in Company 1, $10,000 in Company 2, and $5,000 in Company 3).
    • You decide the amount you are investing in each company. You do not have to provide any analysis to justify your decisions.
  3. Provide a reason for picking each company.
    • For example, you might invest in Ford because that company gets a lot of your money and you hear that Ford is doing well, and will continue to do well.
  4. Identify the number of shares you are buying, and the price of the shares you are buying for each company.
    • Once you decide the companies and the amount for each company, determine how many shares you can buy. For example, if Company 1 is selling for $42.16, then you may buy $10,000/$42.16, or 237.19 shares. But you cannot buy a part of a share, so you decide to buy either 237 or 238. In this example, you buy 237 shares at $42.16 per share, investing $9,991.92. You won’t be able to buy exactly $10,000, or $5,000, or $25,000, but it will be relatively close.
  5. Use at least two quality references. Consider using the sources of information ideas above and/or searching and locating resources from the Strayer University Library. Note: Wikipedia and other websites do not qualify as academic resources.
  6. Submit two documents for your journal assignment submission by uploading them to the assignment submission area:
    • Completed Excel template.
    • Completed Word document template with your rationale.

Note: This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course.

The specific course learning outcome associated with this assignment is:

  • Analyze the performance of an investment portfolio over time.

Resources

Multimedia

Click here to watch the video

  1. By submitting this paper, you agree: (1) that you are submitting your paper to be used and stored as part of the Safe Assign™ services in accordance with the Blackboard Privacy Policy; (2) that your institution may use your paper in accordance with your institution’s policies; and (3) that your use of Safe Assign will be without recourse against Blackboard Inc. and its affiliates.

Provide background information on the business of the company, like when was the company started, what is their business etc. Make sure to provide citations. Describe any unusual events.

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Annual Report Project Guidelines To begin assessing the quality of a company’s financial statements, think specifically about:
1. The types of underlying transactions and events that effect the company,

2. How well the financial accounting model (i.e. generally accepted accounting principals “GAAP”) reflects those transactions and events.

3. The aggressiveness or conservatism or management’s account choices,

4. How well the annual report helps you assess the company’s risks, financial position, earnings, etc.

Guidelines Your written report should demonstrate that you have a complete understanding of the issues you discuss. It is essential that your report be thorough. Read, review and analyze your company and determine what needs and should be reviewed. Ask brokerage firms for their analyst’s reports and check the Internet for any analyst of your company. Explain whether it is reasonable for an item to apply to your company. If an item does not apply to your company, you should state so explicitly. Make sure your notes on the financial statements provide adequate and understandable information about the accounting policies, assumptions, risks and transactions. Finally, your report should contain professional terminology as well as proper grammar and spelling. Please don’t CUT and PASTE from web sites or annual reports. Instructions Follow the format below while creating your Financial Ratios project. You should write in a professional manner. All items should be parsed as if they were going to be reviewed by an executive at a financial institution. Follow APA or MLA style of writing and provide proper citations.
Introduction:

In 1-2 pages, describe what your original strategy was in choosing your company and the strengths that you saw when you did so. Provide background information on the business of the company, like when was the company started, what is their business etc. Make sure to provide citations. Describe any unusual events.

Financial Ratios:

Create a professional presentation of all of the information you have gathered on your company. Please keep in mind this is a professional presentation; therefore, matching fonts, styles, and readability will be considered in your grade. Make sure to provide citations.
Prospectus: In 4-5 pages or more, you will write a thorough analysis of the company’s financial ratios. The report should include an analysis of the types of transactions and events that affect the company, the company’s accounting choices, trends in profitability, and a balance sheet analysis etc. Analyze at least 5 financial ratios to evaluate the financial health of the company you have chosen. Suggest what should be done to improve the performance in future.
4/16/2020 Assignments Overview
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Submit your Ratio Analysis Project report no later than 11:59 pm CT on last Saturday. Common Questions Listed below are common questions to address in your project. Financial Ratios Calculate each of the basic following financial statement ratios for each of the last two years. Is there a trend? If there are other ratios that you believe apply to your company, include those ratios also. Please be sure to provide the details of your computations.
Stockholder Profitability Earning per share (EPS) Price/earnings ratio (P/E) Profitability Gross profit margin Return on total assets Profit Margin Return on stockholders’ equity (ROE) Liquidity Current ratio Quick or acid test ratio Cash flow from operations to sales Stability Debt ratio Times interest earned Book value per common share
Unusual events Describe all significant unusual or nonrecurring items during any of the fiscal years. How significant was the impact on the earnings? Did these items have a significant effect on the profitability ratios? Are these items likely to occur again in the future? Why or why not? Transaction and Recognition Methods Describe the company’s revenue transaction and recognition methods. Are the timing or cash receipts from customers different than the timing of revenue recognition? Are there any uncertainties about the collectibles of customer receivables? What is the likelihood of significant product returns by customers? Trends in bad debt allowances? Business risks associated with estimates? Concentrations of revenues to one business or industry? Footnote disclosures that are of concern? Inventory Describe inventory and related costs. What types of inventory are included in the balance sheet? Working in process, finished inventory? Identify inventory valuation methods and are they reasonable for this type of business? Effect on balance sheet if inventory method changed or if business showed down.
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Property Describe the major types of property, plant and equipment (PP&E). What depreciation methods are used and are they current (life of the asset?). Are these assets undervalued or overvalued on the balance sheet? The nature of the company’s assets. Effects on the balance sheet if these assets were carried by a different deprecation method. Do you agree with management’s deprecation method? Should it be changed? Can it be changed? Business risk’s associated with the company’s assets. Should there be a more aggressive or less aggressive write down of impaired assets? Intangibles What are the major types of intangibles? Are all of them on the balance sheet? What does research and development, advertising or other types of intangibles look like? Collateral Are any of the company’s assets pledged as collateral? If they are, please explain, if they are not, why not? If they are is the company in compliance with its covenants? Contingencies What are the company’s contingencies and commitments? Any off balance sheet leases? How does the company accrue for its liabilities? Any significant litigation? What is your opinion of management? Use of estimates in contingent liabilities? What would be the impact if the company were unsuccessful in defending claims against it? Warranty Liabilities Are product warranty liabilities are overstated or understated? Does the company have product warranties? Does it have insurance against a claim? Warranty Costs? And are they accounted for? Pension plans Describe the types of pension plans and other post-employment plans. Are the plans over-funded or under-funded? Any liabilities from the pension fund not stated? Or potential asset’s in pension fund? Taxes What is the company’s effective tax rate? Major sources of deferred income assets or liabilities? Some analysts believe deferred taxes should be omitted from the company’s balance sheet. What impact would this have on your company? Assets and Liabilities What are the company’s current assets and current liabilities? Have you done a ratio analysis and if so what is your opinion of management’s use of its current assets and liabilities? Cash Flow What are the company’s major sources and uses of cash? What are the company’s operating cash flows? Balance Sheet Analysis
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What does the balance sheet tell you? Is the company managing its assets and liabilities? What would you do differently? Even if this is a large or publicly traded company, management may not be running it correctly. Market Value/Book Value Compare the market value of the stock with its book value. What does this comparison suggest about the accounting valuation of the assets and liabilities? Income Statement Analysis Do the reported revenues and expenses appear to fairly represent the results of the revenue producing activities and are the costs associated with those activities? Why or why not? Be sure to consider your earlier evaluation of management accounting practices. 4/16/2020 Assignments Overview
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Annual Report Project Guidelines To begin assessing the quality of a company’s financial statements, think specifically about:
1. The types of underlying transactions and events that effect the company, 2. How well the financial accounting model (i.e. generally accepted accounting principals “GAAP”) reflects those transactions and events 3. The aggressiveness or conservatism or management’s account choices, 4. How well the annual report helps you assess the company’s risks, financial position, earnings, etc. Guidelines Your written report should demonstrate that you have a complete understanding of the issues you discuss. It is essential that your report be thorough. Read, review and analyze your company and determine what needs and should be reviewed. Ask brokerage firms for their analyst’s reports and check the Internet for any analyst of your company. Explain whether it is reasonable for an item to apply to your company. If an item does not apply to your company, you should state so explicitly. Make sure your notes on the financial statements provide adequate and understandable information about the accounting policies, assumptions, risks and transactions. Finally, your report should contain professional terminology as well as proper grammar and spelling. Please don’t CUT and PASTE from web sites or annual reports. Instructions Follow the format below while creating your Financial Ratios project. You should write in a professional manner. All items should be parsed as if they were going to be reviewed by an executive at a financial institution. Follow APA or MLA style of writing and provide proper citations.
Introduction: In 1-2 pages, describe what your original strategy was in choosing your company and the strengths that you saw when you did so. Provide background information on the business of the company, like when was the company started, what is their business etc. Make sure to provide citations. Describe any unusual events.
Financial Ratios: Create a professional presentation of all of the information you have gathered on your company. Please keep in mind this is a professional presentation; therefore, matching fonts, styles, and readability will be considered in your grade. Make sure to provide citations.
Prospectus: In 4-5 pages or more, you will write a thorough analysis of the company’s financial ratios. The report should include an analysis of the types of transactions and events that affect the company, the company’s accounting choices, trends in profitability, and a balance sheet analysis etc. Analyze at least 5 financial ratios to evaluate the financial health of the company you have chosen. Suggest what should be done to improve the performance in future.
4/16/2020 Assignments Overview
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Submit your Ratio Analysis Project report no later than 11:59 pm CT on last Saturday. Common Questions Listed below are common questions to address in your project. Financial Ratios Calculate each of the basic following financial statement ratios for each of the last two years. Is there a trend? If there are other ratios that you believe apply to your company, include those ratios also. Please be sure to provide the details of your computations.
Stockholder Profitability Earning per share (EPS) Price/earnings ratio (P/E) Profitability Gross profit margin Return on total assets Profit Margin Return on stockholders’ equity (ROE) Liquidity Current ratio Quick or acid test ratio Cash flow from operations to sales Stability Debt ratio Times interest earned Book value per common share
Unusual events Describe all significant unusual or nonrecurring items during any of the fiscal years. How significant was the impact on the earnings? Did these items have a significant effect on the profitability ratios? Are these items likely to occur again in the future? Why or why not? Transaction and Recognition Methods Describe the company’s revenue transaction and recognition methods. Are the timing or cash receipts from customers different than the timing of revenue recognition? Are there any uncertainties about the collectibles of customer receivables? What is the likelihood of significant product returns by customers? Trends in bad debt allowances? Business risks associated with estimates? Concentrations of revenues to one business or industry? Footnote disclosures that are of concern? Inventory Describe inventory and related costs. What types of inventory are included in the balance sheet? Working in process, finished inventory? Identify inventory valuation methods and are they reasonable for this type of business? Effect on balance sheet if inventory method changed or if business showed down.
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Property Describe the major types of property, plant and equipment (PP&E). What depreciation methods are used and are they current (life of the asset?). Are these assets undervalued or overvalued on the balance sheet? The nature of the company’s assets. Effects on the balance sheet if these assets were carried by a different deprecation method. Do you agree with management’s deprecation method? Should it be changed? Can it be changed? Business risk’s associated with the company’s assets. Should there be a more aggressive or less aggressive write down of impaired assets? Intangibles What are the major types of intangibles? Are all of them on the balance sheet? What does research and development, advertising or other types of intangibles look like? Collateral Are any of the company’s assets pledged as collateral? If they are, please explain, if they are not, why not? If they are is the company in compliance with its covenants? Contingencies What are the company’s contingencies and commitments? Any off balance sheet leases? How does the company accrue for its liabilities? Any significant litigation? What is your opinion of management? Use of estimates in contingent liabilities? What would be the impact if the company were unsuccessful in defending claims against it? Warranty Liabilities Are product warranty liabilities are overstated or understated? Does the company have product warranties? Does it have insurance against a claim? Warranty Costs? And are they accounted for? Pension plans Describe the types of pension plans and other post-employment plans. Are the plans over-funded or under-funded? Any liabilities from the pension fund not stated? Or potential asset’s in pension fund? Taxes What is the company’s effective tax rate? Major sources of deferred income assets or liabilities? Some analysts believe deferred taxes should be omitted from the company’s balance sheet. What impact would this have on your company? Assets and Liabilities What are the company’s current assets and current liabilities? Have you done a ratio analysis and if so what is your opinion of management’s use of its current assets and liabilities? Cash Flow What are the company’s major sources and uses of cash? What are the company’s operating cash flows? Balance Sheet Analysis
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What does the balance sheet tell you? Is the company managing its assets and liabilities? What would you do differently? Even if this is a large or publicly traded company, management may not be running it correctly. Market Value/Book Value Compare the market value of the stock with its book value. What does this comparison suggest about the accounting valuation of the assets and liabilities? Income Statement Analysis Do the reported revenues and expenses appear to fairly represent the results of the revenue producing activities and are the costs associated with those activities? Why or why not? Be sure to consider your earlier evaluation of management accounting practices.

Compare your results ex post and critically analyze and evaluate your results.Select at least two different alternative techniques for forecasting volatility for the same stock over the same period and calculate your results. 

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Topics in Risk Management Coursework 2020

Volatility is a key variable in modern financial theories and volatility forecast values critically inform the financial decision making process.  In consequence, accurate measuring techniques and precise forecasts of future volatility are essential within the financial marketplace to enable effective evaluation of asset prices and the implementation of trading, hedging and capital optimization strategies.

Discuss the evolution of and the relevance and accuracy of the volatility forecasting techniques which predominate in todays’ financial marketplace with reference to the models, the time horizon and the period under review.

Select a single liquid option (call or put), calculate the implied volatility of the option which should act as a forecast for volatility over the period until expiration (ideally 2 to 3 months). Select at least two different alternative techniques for forecasting volatility for the same stock over the same period and calculate your results.  In approximately 2 /3months time (i.e. end March), review your data ex post to see how effective the three volatility forecasts were.

Compare your results ex post and critically analyze and evaluate your results.

The length of work should include 1200 words and appropriate academic referencing.

Identify and discuss the expected sources for the major pieces of this revenue (to the extent possible) and forecast the $ amounts for each in this narrative.

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Financial Plan (incl. Budgets)

For a Mobile App Program to be used in the Neonatal Intensive Care Unit (NICU) to help bridge the communication gap between Parents and the Hospital Staff.

  1. Financial Plan Summary and Budgets—Introduce and summarize initial financial plan and attach two budgets Key elements should include:
    1. Financial Plan Summary— In order to set the stage for discussing the details of your financial plan, first present and discuss, at a high-level using narrative and summary charts, the big-picture financial numbers that reflect both your Start-Up and First-Full-Year-of-Operation budgets.
    2. Budgets— write see appendix A and B (Start-Up and First-Full-Year-of-Operation)

Follow your financial plan summary by referencing (i.e., pointing the reader to) the budgets you’ve attached as exhibits at the end of your financial plan. As such, this “section” ought to be limited to a statement along the lines of: “Detailed line item budgets for the Capstone’s Start-Up and FFYO periods are included in Exhibits 1 and 2, below.” As relates to these 2 specific budgets, please note the following: mention June-July Budget

  • Note 1 (Budget Formats): Both of these detailed line-item budgets should use a standard accounting format; and also include adjoining footnotes for any key line-item entries.
  • Note 2 (Level of Detail): It is not necessary to be too comprehensive, or too concerned about the exactness of the budget detail if the program/project is still evolving. Instead, construct broad estimates of expenditures that will be crucial for program effectiveness, and revenue sources that will support it.
  • Note 3 (Start-Up Considerations): Use the Start-Up section to explain the current financial picture (results) and how you are using this information to build the next budget.
  • Note 4 (Time Horizon): Even if the time horizon for the implementation of your project is far off, still provide a FFYO budget based on your best estimates of what it will look like, and require.
  • Note 5 (Budget Periods): While the pre-operation or Start-Up budget is designed for organizations that need time prior to officially starting their programs (to spend time, money, and effort on certain start-up tasks), First-Full-Year-of- Operation budgets are designed to reflect an organization’s projected financial performance once it has opened the doors, gone to market, or begun delivering its services. Unlike a start-up budget (which can be variable in duration), the FFYO budget should be for an annual 12-month period, with its fiscal year start date identified and justified.
  1. Program Expenses—Present and discuss the projects expenditure strategies and plans for both personnel and other operating costs. And do so for both of your budgets designated by your financial plan. Key elements should include:
  1. Personnel/Staffing Costs—In narrative form, discuss your program’s personnel strategies. Estimate how many staff, and at what level of preparation or skills/experience, will be required for implementation of each major part of your project/program. Highlight or summarize the major/relevant financial numbers for personnel in the narrative of this section and reference the specific details to the attached line-item budgets. Also consider and discuss the “personnel benefits” in the narrative and include these costs in your 2 budgets.
  2. Other (Non-Personnel) Operating Costs—Again in narrative form, discuss non-personnel operating cost/spending strategies, focusing on the most important categories for your program. For example, estimate how much space will be necessary, and assign a cost for this. If any major equipment purchases, rental, or leases will be necessary, identify these and estimate their costs. Also discuss any other major expenditures that may be essential to your program, such as travel, communications, marketing, consultation, insurance, etc.; and highlight the differences (and implications) between the fixed and variable costs. Similar to the above instructions for personnel costs, summarize the major/relevant financial numbers for these Other Operating Cost requirements in the narrative, and reference the specific details to your 2 attached line-item budgets.
  • Program Revenues—Present and discuss your projects revenue strategies and financial plans. And do so for both of your budgets designated by your financial plan. Key elements should include:
  1. Revenue Strategies/Models and Funding Types—Based on analysis and research, present thoughts on (1) the most logical/appropriate revenue models for your project, and (2) the types of funding sources your project will rely on going forward. You should include both short- and long-term strategies for this.
  2. Revenue Plans (the “Numbers”)—Project and discuss total revenue for your projects program based on realistic expectations. Identify and discuss the expected sources for the major pieces of this revenue (to the extent possible) and forecast the $ amounts for each in this narrative. Also be sure to reference these $ amounts to your 2 attached Capstone budgets.
  1. Operational/Performance Measures—Consider and discuss ways to measure and track your projects operational performance (re: outputs) … and its longer-term impact (re: outcomes). Key elements should include:
  1. Outputs and Operational Efficiency—Present the units of service (i.e., metrics) that you will use to measure/monitor your Capstone’s expected outputs in order to track operational efficiency. Discuss why these measures are most relevant given the nature of your solution/intervention activities.
  2. Outcomes and Program Effectiveness—Do the same to measure/monitor your expected outcomes in order to track your Capstone program’s effectiveness. Again, discuss why these measures are optimal given the nature of the problem, target population, and your proposed intervention activities.
  1. Conclusions—Present final thoughts on your projects projected financial performance, risks, scalability, sustainability, and any other insights and conclusions you have. More specifically, discuss your projects projected “bottom-line” financial performance. At the same time, consider the opportunities for your project to scale. Finally, raise and discuss the risks, complicating factors, and constraints related to your project’s ability to achieve its projected financial results on a sustainable basis, and your ideas/contingency plans to mitigate these risks. Conclude by sharing your thoughts on any other general insights, critical thinking, and/or overarching conclusions about your projects financial plans.