2. Statement Analysis and Firm PerformancePurpose of
Assignment
The purpose of this assignment is to allow students the
opportunity to present a business idea supported by strong
financial information. The student will be able to identify the
possible challenges of doing business in a foreign country and
how to approach them.Resources Required
Microsoft® PowerPoint®Grading Guide
Content
Met
Partially Met
Not Met
Comments:
The student prepared a 16- to 20- slide Microsoft®
PowerPoint® presentation showing the details of a business
they are interested in starting in a foreign country, and for
which they need $300,000.
The presentation included the following:
· Business name
· Executive summary
· Description of the foreign country
· Business description and structure
· Market and company analysis
· Marketing and sales operational plan
3. · How you plan to use the $ 300,000.
· Financial statements forecast (3 years)
· Business health assessment - using the following ratios:
· Liquidity ratios
· Solvency ratios
· Asset management ratios
· Profitability ratios
· Market value ratios
The student analyzed the following scenarios in 525 words,
which one they would choose and why.
The student calculatedthe following scenarios and decided
which financing option is best for their business:
· Investor #1 decided to loan $300,000, paying all of the
interest (8% per year) and principal in one lump sum at the end
of 5 years.
· Investor #2 offers $300,000, paying interest at the rate of 8%
per year for 4 years and then a final payment of interest and
principal at the end of the 5th year.
4. The student discussed in 525 words the challenges and risks
they may face in starting a business in a foreign country
including the following:
· Cultural, business, and political risks.
· How they plan to avoid operational, transaction, and
translation exposure.
Total Available
Total Earned
5
#/5
Presentation Guidelines
Met
Partially Met
Not Met
Comments:
Organization
The tone is appropriate to the content and assignment.
5. The introduction provides a sufficient background on the topic
and previews major points.
Major points are stated clearly; are supported by specific
details, examples, or analysis; and are organized logically.
Paragraph transitions are present, logical, and maintain the flow
throughout the paper.
The conclusion is logical, flows from the body of the paper, and
reviews the major points.
Mechanics
The presentation is laid out with effective use of headings, font
styles, font sizes, and white space.
6. Intellectual property is recognized with in-text citations and a
reference slide.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed including spelling and
punctuation.
3
#/3
Assignment Total
#
8
#/8
Additional comments:
Scenario 1 Pay all of the interest (8% per year) and principal in
one lump sum at the end of 5 yearsAmount$ 300,000Period
(years)5Interes rate8%FV= PV × (1 + r)nAnswer- Total
PaymentInterest PaidRefer to the Solved Example 6 on Page 84
7. of your text.
Scenario 2Pay interest at the rate of 8% per year for 4 years and
then a final payment of interest and principal at the end of the
5th year;Amount$ 300,000Period (years)5Interes
rate8%AnswerAnnual Interest Payment-Year 5 Payment - Total
Payment-Interest Paid- Refer to the Solved Example 6 on Page
84 of your text.
ComparisonTotal PaymentInterest paidScenario #1$ - 0$ -
0Scenario #2$ - 0$ - 0Which of the scenarios is the best
option?Answer:Refer to the Solved Example 6 on Page 84 of
your text.
