Ten years ago, Amanda Cortez invested $20,000 in an account paying an annual interest rate of 5%. What is the value of the investment today? What is the interest on interest earned on this investment?

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Company’s net working capital

  1. A company had cash and marketable securities worth $200,000 accounts payables worth $51,000, inventory of $1,501,500, accounts receivables of $5,288,128, short-term notes payable worth $220,000, other current liabilities of 100,000, and other current assets of $121,800. Calculate the company net working capital and describe how managers manage the firm working capital. (2 Marks)

 

  1. Your parents have given you $1,500 a year before your graduation so that you can take a trip when you graduate. You wisely decide to invest the money in a bank CD that pays 7% interest. You know that the trip costs $1600 right now and that inflation for the year is predicted to be 3%. Will you have enough money in a year to purchase the trip? Show your calculations. (2 Marks)

 

  1. If the following financial information related to XYZ Company. Total Revenues last year $970, depreciation expenses $50, costs of goods sold $450, and interest expenses $55. At the end of the year, current assets were $121 and current liabilities were $107. The company has an average tax rate of 35%. Calculate the net income for XYZ Company by setting up an income statement. (2 Marks)

 

  1. Calculate the common-size balance sheet from the following information for the company: (2 Marks)

 

Cash 50,000 Accts/Pay 25,800
Acct/Rec 60,000 Accrued expenses 30,000
Inventories 200,500 Short-term N/P 9,700
  Total Current assets 310,500   Current liabilities 65,500
Net fixed assets 132,000 Long-term debt 150,000
  Total assets 442,500 Total liabilities 215,500
    Owner’s equity 227,000
    Total liabilities and owners’ equity 442,500

 

 

  1. Ten years ago, Amanda Cortez invested $20,000 in an account paying an annual interest rate of 5%. What is the value of the investment today? What is the interest on interest earned on this investment? (2 Marks)

 

  1. You have just won a lottery that promises an annual payment of $120000 beginning immediately. You will receive a total of 15 payments. If you can invest the cash flow in an investment that is paying 8% annually, what is the present value of this annuity? (2 Marks)

 

  1. XXX company has forecast a rate of return of 20% if the economy booms (30% probability); a rate of return of 19% if the economy in in a growth phase (40% probability); a rate of return of 2.50% if the economy in in decline (20% probability); and a rate of return of -10% if the economy in a depression (10% probability). What is the company standard deviation of returns? (3 Marks)

 

 

Create a market multiple analysis for Disney. Calculate the price of the stock at 9/30/2021 based on the 3 market multiples.

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Market analysis for Disney

Create a market multiple analysis for Disney (5 years historical)

Calculate the price of the stock at 9/30/2021 based on the 3 market multiples. You will have to incorporate growth rates from sales, cfps and sps from the historical data in order to do this.

  • Price = Average P/EPS ratio x current EPS(2019)* (1+g)2
  • Price = Average P/CFPS ratio x current CFPS (2019)*(1+g)2
  • Price = Average P/SPS ratio x current SPS (2019)*(1+g)2

Use Yahoo Finance to find data for the 5 years  suggest using the 2015-2019 data as 2020 is skewed due to the coronavirus effects.

Create and upload an excel spreadsheet showing your inputs and results

 

Describe in detail the type of substantive analytical procedures that would be used for these account balances and why this would be an effective test of the account balances.

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Financial statements

Obtain the financial statements of a company with which you are familiar. The Annual report or 10K report of a publicly-traded company would be a great resource for this problem.

  • Identify specific account balances for which substantive analytical procedures would be appropriate and discuss your reasoning for selecting these accounts.
  • Describe in detail the type of substantive analytical procedures that would be used for these account balances and why this would be an effective test of the account balances.

Your paper should be 2 pages in length and include an Excel file with the company financial statements as an additional deliverable. Please follow APA format, according to CSU-Global Guide to Writing and APA (Links to an external site.). Include a title page and reference page. Use two (2) outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.

 

Conduct a five forces analysis placing emphasis on the strength of competitive pressures stemming from each of the forces. What major conclusions can be made about each of these forces?

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Under Armour Case Analysis Questions

Provide written responses for each of the questions below. You are welcome to make diagrams as needed. Your responses should be limited to a total of 2 pages (plus diagrams). Answer should be submitted to through the assignment on Canvas.

ASSIGNMENT QUESTIONS

1. Conduct a five forces analysis placing emphasis on the strength of competitive pressures stemming from each of the forces. What major conclusions can be made about each of these forces?
   
   
2. What is the collective strength of the five competitive forces facing Under Armour, Nike, and the Adidas Group?
   
3. Does Under Armour have any core competencies and, if so, what are they?
   
4. Does Under Armour have any resource strengths or competitive capabilities that qualify as a distinctive competence?
   
5. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Under Armour is employing?
   
6. What is impressive about Under Armour’s financial performance during the 2008-2013 period

 

List four protective covenants that you might be interested in as a prospective bondholder. Briefly describe why these would be realistic bondholder concerns. How would a convertible bondholder decide whether to exercise his rights of exchange?

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Protective covenants

Q-1. List four protective covenants that you might be interested in as a prospective bondholder. Briefly describe why these would be realistic bondholder concerns. How would a convertible bondholder decide whether to exercise his rights of exchange? ( Words- 300 to 400 )

Q-2- How do venture capital firms design successful deals? Why it is likely that venture capital is disbursed in installments, rather than issuing all necessary funds at once? ( Words- 300 to 400 )

Q-3- (A)- Calculate the annual value of an interest tax shield under the assumption that a firm maintains debt at a permanent $1,000,000 level and rate of 12%. The corporate tax rate is 35%. If there is no chance of financial distress, how does the value of the firm change as a result of this debt?

(B)- How are dividends paid and how do companies decide on dividend payments? Discuss the concept of dividend signaling. ( Words- 250 to 350 )

Q-4- Discuss how agency problems can develop between shareholders and bondholders when the firm is experiencing financial distress. Is there a rule for finding optimal capital structure? ( Words- 300 to 400 )

 

Explain the difference between portfolio risk and stand-alone risk. Briefly explain why you selected each stock and how this investment portfolio would have less risk than selecting just one stock.

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Unit 3 Finance Case Study

Instructions
Diversified Risk Stock Portfolio

For this case study, you will create a portfolio of five to eight stocks that demonstrate diversified risk. List the stocks along with their current price and previous 1-year and 5-year rates of return. Below the list of stocks, address the issues described below.

Explain the difference between portfolio risk and stand-alone risk.
Briefly explain why you selected each stock and how this investment portfolio would have less risk than selecting just one stock.

How does risk aversion affect a stock’s required rate of return?
Explain the distinction between a stock’s price and its intrinsic value.

Your case study should be at least two pages in length, not counting the title and reference pages.
Use APA format to cite in-text and reference citations.

Select a company of your choice, and discuss its current beta. If the company’s beta were to double, would its expected return double? Would you add this stock to a portfolio? Why, or why not?

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Unit 3 Finance Discussion

Select a company of your choice, and discuss its current beta. If the company’s beta were to double, would its expected return double? Would you add this stock to a portfolio? Why, or why not?

Create a report for your supervisor to share with the board of directors during their presentation. Use the business you chose from the Project Two Business Options List.

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7-1 Project Two: Comparison Analysis: Home Depot

Scenario
You chose a business during your Module Two journal assignment. Imagine you are an analyst for that business. Your business’s board of directors wants updates on the business’s financial health. Your supervisor has asked you to write a report that includes the following:

The business’s current financial health
The available financial options for improving the business
Your recommendations about which options will support the business’s financial health
Your supervisor will present your report to the business’s board of directors. The board members have different levels of knowledge about finance. You must write the report so it is easy for all board members to understand.

Directions
Create a report for your supervisor to share with the board of directors during their presentation. Use the business you chose from the Project Two Business Options List.

Use Mergent Online to find the most recent quarterly financial statements for your company. Use these statements to support your analysis during the project. Use the Project Two Financial Assumptions document for descriptions of the three financial options you will evaluate. Use the Project Two Financial Analysis Report template to complete this project.

Note: All documents and resources that are needed to complete this assignment are linked in the What to Submit and Supporting Materials sections.

Which stablecoin are you most likely to use to park your funds and why? What are the top 5 stablecoins by market capitalization? What are the different methods how stablecoins achieve their stability?

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DEFI

3 SLIDES

1st.
-Defining DeFi
-Visualize the “DeFi stack” in a nice slide: What are the elements and layers of DeFi and how are they related to each other?
-What main categories of DApps are there and how do they relate?

2nd.
Which stablecoin are you most likely to use to park your funds and why?
What are the top 5 stablecoins by market capitalization?
What are the different methods how stablecoins achieve their stability?
What are the risks associated with the different methods?
Why are APYs on stablecoins so high on certain lending platforms?
Does a stablecoin pegged to the official currency of your country exist yet (Portugal)?

3rd.
What is the significance of NFTs? Use-cases beyond art?

Begin with a quantitative analysis of the country’s macroeconomy and its debt burden.Determine which countries are most hospitable to international investment

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Country Risk Analysis – Belguim

Country risk analysis is the foundation of international finance. In order to determine which countries are most hospitable to international investment, you begin with a quantitative analysis of the country’s macroeconomy and its debt burden. Here, you include drivers of credit spreads (which measure risk) such as the country’s economic performance, debt level, its government’s fiscal policies, and the central bank’s foreign currency reserves.

Separately, consider more diffuse factors such as political stability and transparency, the strength and stability of its institutions, demographic patterns, the overall health of its banks, the sustainability of economic policies, and the outlook for reforms.

You might get conflicting results. For example, one country may have a strong short-term debt service capability thanks to the high commodity prices its exports earn. However, that same country may have a political class that threatens to renegotiate its foreign debt. Thus, the more diffuse factors will outweigh the quantitative factors and make us leery of investing in that country. This all said, our analysis always will look at the following at a minimum:

Liquidity: ratio of FX reserves to ST debt, months import cover (reserves/total imports), and money supply (M2) to reserves
Balance of Payments: CAD % GDP, (CAD – FDI)% GDP, Cross border claims % Reserves (from BIS)
Solvency: Interest expense to total exports, Government debt to GDP, External debt to GDP
Fiscal: Interest payments/ Revenues, Fiscal Balance % GDP
Private credit: % GDP (5 yr change)
Commodity Price Sensitivity: which countries benefit and which ones are harmed by changes in commodities prices and what these changes might augur for inflation rates
Global Bank Exposure: which countries depend on bank financing from the US, Europe, and Japan
Developed Market Exposure: which countries are most dependent on trade with developed economies