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18 Cards in this Set
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BUS 401 Complete Class NEW |
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BUS 401 Week 1 DQ 1 The Role of Financial Management in a Firm
* Describe why a manager needs to understand the characteristics and importance of financial markets including risk and efficiency. * Describe why cash flow is more important than sales in a business. * Discuss what could happen if management does not fulfill responsibilities related to finance. If you have one, share a real world example from your own professional experience or from an external source. |
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BUS 401 Week 1 DQ 2 Financial Statements Financial Statements. View the Important Financial Documents video which looks at the fundamental financial documents every company needs; including the balance sheet, income statement, and statement of cash flow. In your post, choose one of the financial statements and explain how a manager would use the statement to drive financial analysis and decision-making. Your post should be 200-250 words in length |
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BUS 401 Week 1 Financial Management Challenges and Ethics Financial Management Challenges and Ethics. Find at least two articles from the ProQuest database that highlight and discuss two of the biggest challenges facing financial managers today. One of the articles should be about the challenge of maintaining ethical financial integrity. The other article can be on any other challenge that a financial manager may face (e.g., competition, foreign markets, government intervention, etc.). Summarize your findings from the articles in a two- to three-page paper excluding title page and references page(s). The paper should be formatted according to APA style as outlined in the Ashford Writing Center.
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BUS 401 Week 1 Quiz
1.The financial goal of a for-profit business is: profit maximization. owner wealth maximization. cash flow maximization. utility maximization.
2.) Suppose two investments produce the same expected cash flows. We would assign a higher value to the investment with: lower risk. higher cash flow variability. higher risk. the highest possible cash flows under ideal conditions.
3.) Opportunity costs can vary over time and: are almost always close to 10%. represent the highest possible return you can earn on an investment. are always based on the interest rate offered on bank savings accounts. set a return that other investments must equal or exceed to be attractive.
4.) Time is a factor when determining the value of a possible investment. As investors, all else being equal, we value investments: more the longer we have to wait for the payoff. less the longer we have to wait for the payoff. with predefined wait times for payoff. regardless of time because a dollar is always a dollar.
5.) An investment, such as a bond, will have a higher expected return (or yield) if it: has a higher purchase price. holds a higher rating, such as AAA or AA. carries greater risk. has been issued by a well-known company.
6.) The value of an asset is based on four characteristics—cash flows, time, risk, and opportunity costs—but in many situations we can estimate an asset’s value by: gnoring risk, which simplifies the calculation. assigning our personal value to the asset. adding a risk premium to the current return on US government bonds.
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BUS 401 Week 2 DQ 1 Dreams Do Come True Dreams Do Come True
* What is the interest rate from your local bank for a car loan for four years? * What will your payment be to your local bank, assuming your 10% down payment? Be sure to use the formula provided in Chapter 4 and show your work. How much will that car have cost in four years? * What will your payment be to the dealership finance company assuming your 10% down payment? Be sure to use the formula provided in Chapter 4 and show your work. How much will that car have cost in 3 years? * Which is the better deal and why? |
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BUS 401 Week 2 DQ 2 Present and Future Values, and Expected Returns Present and Future Values, and Expected Returns Go to the Yahoo Finance Bonds Center 1. Under: Features / BOND LOOKUP / Find Bonds by Name:2. Type in the first letter of your last name. 3. Under “Type” Choose one of the “Corp” Bonds. Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other factors may influence the value of a bond? |
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BUS 401 Week 2 Quiz 1.) The longer we have to wait for a future amount to be received the lower its present value will be. the higher its present value will be. Time does not affect present value, so it doesn’t matter how long we have to wait. Beyond 10 years the value doesn’t change anymore because 10 years might as well be 20 years.
2.) Compounding means that: dollar interest the first year is multiplied by the number of years to get total interest. the same dollar amount of interest is paid each period. interest is paid on interest earned in earlier periods. the rate of interest grows over time.
3.) An ordinary annuity has its first payment ______, but an annuity due has its first payment _________. at the beginning of the period; at the beginning of the period. at the beginning of the period; at the end of the period. at the end of the period; at the end of the period. at the end of the period; at the beginning of the period.
4.) The great majority of stock trades occur: in the secondary markets. in the primary market. as IPOs (initial public offerings). directly between the company and investors.
5.) Shareholders gains come in the form of: only dividends. only capital gains. dividends and capital gains. interest payments.
6.) Interest rates are given as annual rates. If semiannual (twice a year) compounding is being used, then you would make the following adjustments: Double |
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BUS 401 Week 2 Teaching Net Present Value (NPV) and Future Value (FV) Teaching Net Present Value (NPV) & Future Value (FV). Assignment Instructions: 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. 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 PowerPoint presentation that is 10 to 12 slides long (excluding title and reference slides) and covers each of the above topics. In the slide notes, include your explanations for each topic. If you need assistance, please refer to the Notes pane in PowerPoint 2010 article. Format the presentation according to APA style guidelines as outlined in the Ashford Writing Center. Be sure to properly cite your sources using APA style.
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BUS 401 Week 3 DQ 1 Cash Flows From Working Provided in Chapter 6, construct a simple cash flow statement and payback calculation for when your job expenses will be covered for employment you currently have or have had in the past. Include the following in your cash flow statement: |
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BUS 401 Week 3 DQ 2 Capital Budgeting Capital Budgeting View the video below, which provides some factors that should be considered in capital budgeting considerations Imagine the producers of this video ask you to appear in the video to offer two additional considerations in capital budgeting decisions. One consideration must be quantitative (numeric). The other must be qualitative (non-numeric). Write a script to describe capital budgeting considerations that you think are important for managers to consider. Your script should be 200 to 250 words |
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BUS 401 Week 3 Quiz
1.) The appropriate cash flows for evaluating a corporate investment decision are: incremental additional cash flows. marginal after-tax cash flows. incremental after-tax cash flows. investment after-tax cash flows.
2.) The typical corporate investment requires a large cash outlay followed by several years of cash inflows. To make these cash flows comparable, we do which of the following? Adjust both cash outflows and inflows for taxes. Subtract interest charges to reflect the time value of money.
3.) If depreciation expense is a noncash charge, why do we consider it when determining cash flows? because depreciation expense is a method for allocating costs
4.) The internal rate of return is: the discount rate at which the NPV is maximized. the discount rate used by people within the company to evaluate projects.
5.) Chapter 7 introduced three methods for evaluating a corporate investment decision. Which of the following is not one of those methods? payback period net present value (NPV) return on |
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BUS 401 Week 3 Return on Investment Education Funding Return on Investment: Education Funding. Develop a three- to four-page analysis, excluding the title page and reference page(s), on the projected return on investment for your college education and projected future employment. This analysis will consist of two parts. First, explain how you made the decision to pursue a degree in Business or Finance. In your explanation, include a summary of expenses related to that decision. Also, include things like cost of tuition, cost of books, and the interest that you may pay on any loans. Next, conduct research on your desired occupation and identify how much compensation (return) you expect to earn. How long will it take to pay back the return on this investment? Be sure to consider the trade-off between the cost of education and the expected return on investment.
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BUS 401 Week 4 DQ 1 Interviewing Peter Lynch Interviewing Peter Lynch Review the"Minimizing Risk" video segment below: In the video segment, you will watch an interview with two great investors of the twentieth century. Imagine you are Harry Reasoner, and you are allowed to ask Peter Lynch one question about market risk, discount rates, or the weighted average cost of capital (WACC). What question would you ask? Why do you feel that is an important question? |
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BUS 401 Week 4 DQ 2 Cost of Capital Cost of Capital Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisions? If the overall company weighted average cost of capital (WACC) were used as the hurdle rate for all divisions, would more conservative or riskier divisions get a greater share of capital? Explain your reasoning. What are two techniques that you could use to develop a rough estimate for each division’s cost of capital? Your initial response should be 200 to 250 words. |
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BUS 401 Week 4 Quiz 1.) Investors will make an investment if: the historical rate of return exceeds the expected rate of return.
2.) Which of the following is true regarding market risk? It is measured by beta. It is also called nondiversifiable risk. It is also called systematic risk. all of the above
3.) Which of the following statements regarding the cost of equity is true? It can be estimated in three different ways. It is always estimated using the present value of future dividends approach.
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BUS 401 Week 5 DQ 2 Applying Ratios to a Business Applying Ratios to a Business Review the following Evaluating Business Performance: Small Business Case Studies video: The video focuses on profitability, liquidity, efficiency, and stability of business. Given what you have learned about ratio analysis, choose one of the businesses from the video (Rose Chong Costumes, Anro’s Floor Maintenance, or John Osborne’s Gym and Squash Center) and identify two ratios that would be helpful for the owner of the business to monitor. Be sure to explain what the ratio would tell the owner, and how it can be improved for the business. |
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BUS 401 Week 5 Final Paper Evaluation of Corporate Performance For the Final Paper, you will apply 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. You will then write a report either recommending or not recommending purchase of the company stock. Research Tip: The Mergent database in the Ashford University Library contains company profiles and financial information for publicly traded companies and their competitors. To access this database, enter the Ashford University Library by clicking the “Library” link on the left navigation bar in your online course. Once you are in the Library, select “Find Articles and More” in the top menu panel. Next, select “Databases A-Z” and go to section M to access the Mergent database. For help with using Mergent, use “Mergent Online Quick Tips.” For help with reading an annual report access this handy guide from Money Chimp. The completed report should include: a. An introduction to the company, including background information. b. A complete and thorough financial statement review. c. Pro Forma financial statements (balance sheet and income statement) for the next fiscal year, assuming a 10% growth rate in sales and cost of goods sold (COGS) for the next year. d. Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories: Liquidity Financial leverage Asset management Profitability Market value e. Calculate return on equity (ROE) using the DuPont system. f. Calculate economic value added. g. 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 page(s). Use APA 6th edition formatting guidelines as outlined in the Ashford Writing Center. 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.
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