Explain the goals of budgeting.

/in /by

Discussion Post for Health Care Finance

Explain the goals of budgeting.

If the market is efficient, what value would you expect for alphas? Are they supposed to be close to any number? Do alphas from your analysis support the notion that financial markets are efficient? Or, are they against market efficiency?

/in /by

DISCUSSION ESSAY

Your Report
In your report, you answer the following questions. You must review the course slides before starting the project. Do not copy reports that are publicly available from financial websites. You must rely on your own test results to answer the questions.

Limit all your answers to four pages (single space). Use the first two pages for your answers (pages 1–2) and use the next two pages for two regression tables. On page 3, include the table based on Q1–Q8 and the other table on page 4 to answer Q9 after expanding the data. The third and fourth pages need to be landscape so that you can include all nine regressions in one table. Also, attach the proof of regression work you obtain from a statistical program such as STATA results. That is, your completed project will have a four–page report along with the detailed regression results that I can review.

1. Make one table with nine columns for nine individual regressions following the format below. Report all coefficients and corresponding t–statistics in parentheses. Note that the numbers in parentheses do not mean negative values. They are t–statistic values you obtain from the regression tests. Use ***, **, * signs to indicate statistical significance at the 1%, 5%, and 10% levels, respectively. If the estimated coefficients are not significant at the l0% level, do not use the asterisk signs. Use p–values to know the levels of statistical significance. For example, if a p–value is less than 0.01 (i.e., 1% level), give *** to the number. In this way, we can easily find which relationships are strong. At the bottom, report the number of observations and R2. Use four and two decimals for coefficients and t–statistics, respectively.

Example) AESGX BSCFX FLPSX FMAGX GSIFX UNWPX VTSMX VWINX Your Pick
Alpha 0.2814 0.2014 0.0586 4.9839 –0.1315 0.1962 –0.0019 0.2602** 0.3330***(0.81) (0.84) (0.32) (1.30) (–0.61) (0.25) (–0.06) (2.02) (1.67)MmR–F mR 0.7715*** 0.9551*** 0.9491*** –0.9436 0.8053*** 0.6078*** 1.0002*** 0.2727*** 1.0739*** (8.14) (14.73) (18.98) (–0.91) (13.84) (2.82) (124.18) (7.81) (8.92)
SMB 0.8386*** 0.5044*** 0.4669*** 0.3069 –0.0057 0.6556** –0.0064 –0.0771* 0.3887
(6.86) (6.03) (7.24) (0.23) (–0.08) (2.36) (–0.62) (–1.71) (0.20)
HML –0.1404 0.0482 –0.1461* 1.4635 –0.1085 –0.1383 –0.0210 –0.0524 4.2353*
(–0.90) (0.45) (–1.78) (0.86) (–1.14) (–0.39) (–1.60) (–0.91) (1.72)
RMW –0.1952 0.1417 0.4205*** –1.4794 –0.0943 0.4114 0.0172 0.1467** –1.9932
(–1.20) (1.27) (4.90) (–0.83) (–0.94) (1.11) (1.25) (2.45) (–0.77)
CMA 0.1333 –0.3487** 0.3429*** –1.4151 0.0930 –0.1510 0.0350* 0.2403*** –4.0104
(0.63) (–2.42) (3.08) (–0.61) (0.72) (–0.32) (1.97) (3.09) (–1.20)
UMD –0.0523 0.0506 –0.1672*** –0.6164 –0.1037** 0.0051 –0.0301*** –0.1174*** –0.2826
(–0.77) (1.09) (–4.67) (–0.83) (–2.49) (0.03) (–5.25) (–4.69) (–0.26)
N of obs. 237 237 237 237 237 237 237 237 237
R2 0.531 0.667 0.733 0.011 0.623 0.077 0.991 0.351 0.016

This table reports the estimated coefficients of six factors. The monthly data on the four factors are collected from Prof. French’s website, http://mba.tuck.dartmouth.edu/pages/faculty/ken.frenc /data_library.html. t–statistics are reported in parentheses. ***, **, and * indicate significance at the 1%, 5%, and 10% levels, respectively.

2. Which alphas are positive and negative? Based on the p–values, are they significantly different from zero?

3. Is the alpha of VTSMX close to zero? If then, why is it supposed to be around zero?  (Hint: Look at the full name of the fund).

4. Now, provide general interpretations. Give your detailed answers for the estimated alphas (intercepts) from all nine regressions. Learn how to read regression results. To comment on the findings, you must have a good understanding of estimated coefficients, p–values, and t–statistics. There are various sources of information on the internet and the textbook. Concentrate on the alphas and do not interpret betas. Your interpretations should include the numbers reported in the table. That is, try to anticipate how much returns you can make using these funds. Also, tell the boss how confident you are with your estimations.

5. You need to find one specific fund and add it to your analysis. Which fund do you include in this report? Briefly introduce the fund and explain why you selected it.

6. Based on the alphas, which fund do you recommend for future investment? And, why do you choose it?

7. Based on the alphas, which fund is worst in your analysis? And, why?

8. If the market is efficient, what value would you expect for alphas? Are they supposed to be close to any number? Do alphas from your analysis support the notion that financial markets are efficient? Or, are they against market efficiency?

9. Are your answers for the best and worst funds changed if you extend the data to any available period for each fund? For instance, the monthly returns of FMAGX are available from the early 1980s. Use the same ending month. Make another table for this change.

Hint: The “if” code for the first–month restriction can be removed to include the earlier information. (e.g., reg dep ind if year_month>=200111 & year_month<=202112).

Provide a reflection of at least 500 words of how the knowledge, skills, or theories of this course have been applied, or could be applied, in a practical manner to your current work environment.

/in /by

Practical Assignment

Provide a reflection of at least 500 words (or 2 pages double spaced) of how the knowledge, skills, or theories of this course have been applied, or could be applied, in a practical manner to your current work environment. If you are not currently working, share times when you have or could observe these theories and knowledge could be applied to an employment opportunity in your field of study.

Provide a 500 word (or 2 pages double spaced) minimum reflection.

· Use of proper APA formatting and citations. If supporting evidence from outside resources is used those must be properly cited.

· Share a personal connection that identifies specific knowledge and theories from this course.

· Demonstrate a connection to your current work environment. If you are not employed, demonstrate a connection to your desired work environment.

· You should not provide an overview of the assignments assigned in the course. The assignment asks that you reflect how the knowledge and skills obtained through meeting course objectives were applied or could be applied in the workplace.

An advantage of a certificate of deposit is that you can withdraw your money at any time without any penalties. True or false ?

/in /by

Answer true or false for every single of them

1.Money market accounts pay lower interest rates than regular savings accounts.

2.Compound interest is earned on your principal, as well as on any interest earned previously.

3.A dividend is a portion of a company’s profits that they will share with their investors

.4. Interest is the payment you receive for allowing the bank to use your money.

5. Investing in a variety of investments with different levels of risk is called diversification.

6. Bonds are riskier investments than stocks.

7. The degree of risk and the rate of return are not related.

8. A bondholder has actually loaned money to the company who sold the bond.

9. An advantage of a certificate of deposit is that you can withdraw your money at any time without any penalties.

10. When you buy stock in a company, you are guaranteed to receive a profit.

11.Penny stocks are less risky than blue chip stocks

.12. The money you have on deposit in a savings account, CD, or other saving option is called the principal.

Select any organisation as the focus of this proposal, but you are advised to discuss the suitability of your choice with your seminar tutor.

/in /by

Strategic proposal report

The Strategic proposal report is designed to assess students understanding and application of strategy theories to the analysis of a real organisation. Students can select any organisation as the focus of this proposal, but you are advised to discuss the suitability of your choice with your seminar tutor.

Your strategic proposal report, will include

  1. Introduction to company and internal and external analysis
  2. Literature review of your chosen business strategies and theories (500 words)
  3. Two strategic models that the company could follow in order to achieve organisational objectives
  4. Justification of your suggested strategies using SAF or alternative framework
  5. Conclusion
  6. Reference list

Using the Spreadsheet attached, choose your investments that you would like to use as a way to reach your goal. You can choose Mutual Funds, Stocks, Bonds, whatever you would like. Choose at least 5 different investments. They can all be mutual funds, just choose 5 different ones.

/in /by

Filling out an Excel sheet with 5 investments

1) Think about what you want to invest for and how much. For example, you want to buy a house in 10 years and you want to spend $300,000 on the house. Your goal is purchasing the house and your time horizon is 10 years

2) Using the Spreadsheet attached, choose your investments that you would like to use as a way to reach your goal. You can choose Mutual Funds, Stocks, Bonds, whatever you would like. Choose at least 5 different investments. They can all be mutual funds, just choose 5 different ones.

3) Fill in the spreadsheet with your infromation in everything that is yellow in color. You don’t need to fill in anything else at this point

Build Trendsetter’s Post-Series B capitalization table for the case Series A was financed by Mega Fund, and the price per share at Series B is $0.40. What’s the Series B conversion price? What’s the Series B conversion rate?

/in /by

Venture Capital assignment

You must build the capitalization tables for Alpha and Mega’s Series A financing and their payoff. Now, Trendsetter goes into a second round of financing, and Series A holders may be diluted. Analyze the company’s capitalization at Series B according to the protection provisions on Series A’s Term Sheet.

Suppose on a second round of financing, Trendsetter issues 6 million Series B convertible preferred shares, and the first round was financed by Mega Fund and not by Alpha Ventures’ syndicate.

Read the following extract from Mega Fund Term Sheets’ Antidilution Provisions paragraph #4. Notice the type of anti-dilution protection depends on the future round of financing’s price per share:

Anti dilution Provisions: The Series A Preferred shall have weighted average antidilution rights on issuances of shares at a price less than 100% and greater than 50% of the Series A Purchase Price (except for the issuance of the Reserved Shares); provided if new shares are issued at a price less than or equal to 50% of the Series A Purchase Price then the adjustment will be full ratchet; provided, however, that with respect to a Designated Financing, this ratchet adjustment shall be made only if the holder of Series A Preferred invests its Pro Rata Share.

Answer the following questions on the Assignment 8 quiz (link below):

Build Trendsetter’s Post-Series B capitalization table for the case Series A was financed by Mega Fund, and the price per share at Series B is $0.40.
What’s the Series B conversion price?
What’s the Series B conversion rate?

Build Trendsetter’s Post-Series B capitalization table for the case Series A was financed by Mega Fund, and the price per share at Series B is $0.80.
What’s the Series B conversion price?
What’s the Series B conversion rate?

Build Trendsetter’s Post-Series B capitalization table for the case Series A was financed by Mega Fund, and the price per share at Series B is $1.50.
What’s the Series B conversion price?
What’s the Series B conversion rate?

Tip: In this case, the number of shares issued for Series B is fixed at 6 million. Therefore, the investment amount in Series B will depend on the price per share.

All derivatives are based on the random performance of something. Identify and discuss this word “something.”

/in /by

Finance 405

All derivatives are based on the random performance of something. Identify and discuss this word “something.”

You are required to reply to at least two peer answers. These post replies must need to be substantial and constructive.

 

Classmates answer:

1-haya alnaimi

The word “something” defines the underlying protection, security or asset on which the derivative depends. The derivative is the financial tool or technology which derives its value from the protection or security and underlying asset such as a commodity, stock, currency, index, or bond.
The underlying asset’s performance is a significant feature in defining the value of the derivative. The call option’s value depends on the underlying stock’s price. If the stock price goes up, the value of the call option increases, and if the stock price goes down, the call option’s value decreases.
Though, it is worth noting that not all derivatives are based on random performance. For example, some of the derivatives, such as futures contracts, are based on the expected future price of an asset rather than its random performance. In this case, the price of the derivative is determined by market expectations about the future price of the underlying asset.
Overall, while the underlying asset may not always have a random performance, it is true that the underlying asset’s performance plays a significant role in determining the value of most derivatives (Baxter & Rennie, 1996).

Response:

 

2-hadeel aldowsari :

Because each derivative is reliant on the unknowable outcomes of something else, the term “derivative” accurately describes the nature of these financial instruments. The success of another asset is directly proportional to how much value the derivative will have. When discussing this “something else,” it is customary practice to refer to it as the underlying asset.

Yet, the word “underlying asset” could lead one to the wrong conclusion. A few examples of underlying assets include commodities, currencies, commodities, and stocks and bonds.

On the other hand, the underlying “asset” can be something completely random, like the state of the weather. It is possible that the instrument in question is a futures contract, an option, or some other sort of derivative.

Response:

Estimate the equity value using the comparable P /E ratios. Compare the market price of the target company with the value estimates using EV / E * BDITA ratio and P/E ratios.

/in /by

Discussion 5

Step 4: Follow the example in Q4-2, work out the relative valuation for your target company in the project

  1. For your target company, also pick three to four companies in the same industry for comparison.
  2. Collect financial statement for both the target company and its comparables.
  3. Estimate EBITDA P / E ratio, EV/EBITDA ratios for both the target company and its comparables.
  4. Estimate the Enterprise value and equity value using the comparable EV / E * BITDAratios.
  5. Estimate the equity value using the comparable P /E ratios.
  6. Compare the market price of the target company with the value estimates using EV / E * BDITA ratio and P/E ratios.

Analyze an annual report and audit reports, and to prepare financial statements for a selected company, including an income statement, balance sheet, and statement of cash flows.

/in /by

Financial Reporting Summative Assessment

Purpose of this Assessment
The final assessment for this competency is to analyze an annual report and audit reports, and to prepare financial statements for a selected company, including an income statement, balance sheet, and statement of cash flows.

Items Required for Submission
In order to demonstrate mastery of your competency, you will submit:
1. A one- to two-page analysis of a selected Annual Report and audit reports
2. An income statement
3. A balance sheet
4. A statement of cash flows
5. A reflection on what the numbers in the statements mean