Running head: MILESTONE 3 1
MILESTONE 3 4
Robert Shulzinsky
Southern New Hampshure University
6 January 2018
Capital Budgeting Data
Net Present Value (NPV) of the Project
Net Present Value for the project for the five years will be given by the NPV value for the cash flows as shown by the capital budgeting sheet for milestone 3 minus the initial outlay.
NPV of the project = (CF1+CF2+CF3+CF4+CF5) – Initial outlay
= ($21,453,688.38)
Internal Rate of Return (IRR) of the Project
Internal rate of return (IRR) represents the interest rate at which the net present value of all the cash flows of a project will break even or will be equal to just zero value. From the calculations on the capital budgeting sheet of the milestone 3, the IRR of the project is 34% meaning that the company’s investments will need to grow at a rate of 34% to equal the initial outlay, which is way much higher than the interest rate in the market.
Implications of the Calculations
One of the implications of the calculations of the net present value calculations of the project is that it reduces that amount of cash flows for the project. Net present value calculations discount the amount of funds that will be received in future using the interest rate of the company. In this context, the amount is discounted because of the effect of time on the money received b a company. Another aspect of the net present value is that it enables the management of the company anticipate what the company will receive in future and take into account the inflows and outflows when making decisions (Peterson & Fabozzi, 2014).
On the other hand, internal rate of return provide a metric in capital budgeting for measurement of the profitability of a project with the given investments. The 34% internal rate of return mean that the company will require to grow its investments or the compound the investments by 34% in order to enable the company make the investment. A high internal rate of return is desirable when the company want to undertake the project. I would recommend the company to reject the project since it provides a negative net present value meaning that it will not be able to repay the initial outlay of funds in the company. In this context, the company will only be able to make cash flows, which are positive but not able to recover its outlay. Regardless of the fact that the IRR of the company is high, which is good for any investment, the net present value does not do any good to the project (Peterson & Fabozzi, 2014).
Difference between NPV and IRR
Net present value uses the market interest rate to discount the cash flows of the company showing the real money value that will be received by the company over time. Th ...
Milestone 1You calculated the PV of home depot correctly in the .docxARIV4
Milestone 1
You calculated the PV of home depot correctly in the excel workbook, but you didn't make reference to that value in your analysis -- or how that value could change with interest rate movement. Please elaborate on your recommendation with your final submission.
Milestone 2
Hi Robert, your calculation in Part II #2 is incorrect. The formula should be: =FV(0.004375,40,0,-2963). I would like to see the formulas in your excel file and not just the results. You were also missing the dividend yield in Part I.
Milestone 3
The operating costs (row 8) should be $25.5M for each year
Running head: MILESTONE 3 1
MILESTONE 3 4
Robert Shulzinsky
Southern New Hampshure University
6 January 2018
Capital Budgeting Data
Net Present Value (NPV) of the Project
Net Present Value for the project for the five years will be given by the NPV value for the cash flows as shown by the capital budgeting sheet for milestone 3 minus the initial outlay.
NPV of the project = (CF1+CF2+CF3+CF4+CF5) – Initial outlay
= ($21,453,688.38)
Internal Rate of Return (IRR) of the Project
Internal rate of return (IRR) represents the interest rate at which the net present value of all the cash flows of a project will break even or will be equal to just zero value. From the calculations on the capital budgeting sheet of the milestone 3, the IRR of the project is 34% meaning that the company’s investments will need to grow at a rate of 34% to equal the initial outlay, which is way much higher than the interest rate in the market.
Implications of the Calculations
One of the implications of the calculations of the net present value calculations of the project is that it reduces that amount of cash flows for the project. Net present value calculations discount the amount of funds that will be received in future using the interest rate of the company. In this context, the amount is discounted because of the effect of time on the money received b a company. Another aspect of the net present value is that it enables the management of the company anticipate what the company will receive in future and take into account the inflows and outflows when making decisions (Peterson & Fabozzi, 2014).
On the other hand, internal rate of return provide a metric in capital budgeting for measurement of the profitability of a project with the given investments. The 34% internal rate of return mean that the company will require to grow its investments or the compound the investments by 34% in order to enable the company make the investment. A high internal rate of return is desirable when the company want to undertake the project. I would recommend the company to reject the project since it provides a negative net presen ...
This document discusses financial ratio analysis and provides examples of calculating various ratios for a company called Davies Inc. and comparing them to peer group averages. It defines different types of ratios including liquidity, asset management, profitability, leverage, and market value ratios. Formulas for calculating each ratio are given. An example shows Davies Inc.'s ratios calculated from financial data provided and compared to the peer group averages. Additional questions with examples of calculating total assets turnover and debt ratio are also included.
Return on Capital (ROC), Return on Invested Capital (ROIC) and Return on Equity (ROE) are important metrics for measuring the returns generated by a business's existing investments and forecasting returns on future investments. There are two main accounting-based measures - ROIC, which measures return on total capital invested, and ROE, which measures return on equity capital. ROIC is calculated as operating income after taxes divided by the book value of invested capital from the prior year. While accounting-based, this measure provides a reasonable estimate of returns on existing investments. Accurately measuring these returns is crucial for valuation since a business only creates value to the extent returns exceed the costs of capital.
This document provides information on ratio analysis, including definitions, calculations, and uses of various types of ratios. It discusses profitability ratios, coverage ratios, turnover ratios, financial ratios, and control ratios. For each type of ratio, it provides examples and explanations of important individual ratios calculated within that category, such as gross profit ratio, current ratio, debt-to-equity ratio, and budget variance ratio. The document is intended to help explain ratio analysis and how different financial ratios can be used for analysis and decision making.
Ratio analysis is a technique that involves regrouping financial statement data through mathematical calculations of relationships between items. It allows measurement of a company's overall performance regardless of size. Ratios are classified into liquidity, solvency, efficiency, and profitability ratios. Liquidity ratios measure short-term financial obligations, solvency ratios long-term financial position, efficiency ratios use of assets/liabilities, and profitability ratios ability to generate revenue. Key ratios discussed include current ratio, quick ratio, debt-equity ratio, gross profit ratio, return on capital employed, and earnings per share.
The document discusses various aspects of capital structure including:
- Defining capital structure and the components that make up a company's financial structure
- Approaches to determine the appropriate capital structure such as EBIT-EPS, valuation, and cash flow approaches
- The concept of optimal capital structure which maximizes share price value and minimizes cost of capital
- Different forms of capital structure such as equity only, combinations of equity and debt, etc.
- The concepts of leverage including operating, financial, and combined leverage and how they impact risk and returns
Financial statement analysis is important for several reasons such as obtaining loans, evaluating investment opportunities, and assessing creditworthiness for suppliers. The key steps in analysis involve calculating ratios over several years from the income statement, balance sheet, cash flow statement, and shareholders' equity statement. Common ratios calculated include liquidity, leverage/debt, profitability, efficiency, and value ratios. Limitations of ratio analysis include subjectivity in interpretation, lack of comparability between companies, reliance on past financial data, and accounting differences across countries.
The document provides an overview of balance sheet basics and components. It includes the balance sheet of Global Telesystems for the year ending March 31, 2000, showing assets, liabilities, and equity. It then defines and explains each line item, such as gross block, net block, capital work in progress, inventory, receivables, equity share capital, reserves, total debt, and creditors. It discusses the role of balance sheets in investment decision making and analyzing areas like inventories, receivables, debt, and management comments.
Milestone 1You calculated the PV of home depot correctly in the .docxARIV4
Milestone 1
You calculated the PV of home depot correctly in the excel workbook, but you didn't make reference to that value in your analysis -- or how that value could change with interest rate movement. Please elaborate on your recommendation with your final submission.
Milestone 2
Hi Robert, your calculation in Part II #2 is incorrect. The formula should be: =FV(0.004375,40,0,-2963). I would like to see the formulas in your excel file and not just the results. You were also missing the dividend yield in Part I.
Milestone 3
The operating costs (row 8) should be $25.5M for each year
Running head: MILESTONE 3 1
MILESTONE 3 4
Robert Shulzinsky
Southern New Hampshure University
6 January 2018
Capital Budgeting Data
Net Present Value (NPV) of the Project
Net Present Value for the project for the five years will be given by the NPV value for the cash flows as shown by the capital budgeting sheet for milestone 3 minus the initial outlay.
NPV of the project = (CF1+CF2+CF3+CF4+CF5) – Initial outlay
= ($21,453,688.38)
Internal Rate of Return (IRR) of the Project
Internal rate of return (IRR) represents the interest rate at which the net present value of all the cash flows of a project will break even or will be equal to just zero value. From the calculations on the capital budgeting sheet of the milestone 3, the IRR of the project is 34% meaning that the company’s investments will need to grow at a rate of 34% to equal the initial outlay, which is way much higher than the interest rate in the market.
Implications of the Calculations
One of the implications of the calculations of the net present value calculations of the project is that it reduces that amount of cash flows for the project. Net present value calculations discount the amount of funds that will be received in future using the interest rate of the company. In this context, the amount is discounted because of the effect of time on the money received b a company. Another aspect of the net present value is that it enables the management of the company anticipate what the company will receive in future and take into account the inflows and outflows when making decisions (Peterson & Fabozzi, 2014).
On the other hand, internal rate of return provide a metric in capital budgeting for measurement of the profitability of a project with the given investments. The 34% internal rate of return mean that the company will require to grow its investments or the compound the investments by 34% in order to enable the company make the investment. A high internal rate of return is desirable when the company want to undertake the project. I would recommend the company to reject the project since it provides a negative net presen ...
This document discusses financial ratio analysis and provides examples of calculating various ratios for a company called Davies Inc. and comparing them to peer group averages. It defines different types of ratios including liquidity, asset management, profitability, leverage, and market value ratios. Formulas for calculating each ratio are given. An example shows Davies Inc.'s ratios calculated from financial data provided and compared to the peer group averages. Additional questions with examples of calculating total assets turnover and debt ratio are also included.
Return on Capital (ROC), Return on Invested Capital (ROIC) and Return on Equity (ROE) are important metrics for measuring the returns generated by a business's existing investments and forecasting returns on future investments. There are two main accounting-based measures - ROIC, which measures return on total capital invested, and ROE, which measures return on equity capital. ROIC is calculated as operating income after taxes divided by the book value of invested capital from the prior year. While accounting-based, this measure provides a reasonable estimate of returns on existing investments. Accurately measuring these returns is crucial for valuation since a business only creates value to the extent returns exceed the costs of capital.
This document provides information on ratio analysis, including definitions, calculations, and uses of various types of ratios. It discusses profitability ratios, coverage ratios, turnover ratios, financial ratios, and control ratios. For each type of ratio, it provides examples and explanations of important individual ratios calculated within that category, such as gross profit ratio, current ratio, debt-to-equity ratio, and budget variance ratio. The document is intended to help explain ratio analysis and how different financial ratios can be used for analysis and decision making.
Ratio analysis is a technique that involves regrouping financial statement data through mathematical calculations of relationships between items. It allows measurement of a company's overall performance regardless of size. Ratios are classified into liquidity, solvency, efficiency, and profitability ratios. Liquidity ratios measure short-term financial obligations, solvency ratios long-term financial position, efficiency ratios use of assets/liabilities, and profitability ratios ability to generate revenue. Key ratios discussed include current ratio, quick ratio, debt-equity ratio, gross profit ratio, return on capital employed, and earnings per share.
The document discusses various aspects of capital structure including:
- Defining capital structure and the components that make up a company's financial structure
- Approaches to determine the appropriate capital structure such as EBIT-EPS, valuation, and cash flow approaches
- The concept of optimal capital structure which maximizes share price value and minimizes cost of capital
- Different forms of capital structure such as equity only, combinations of equity and debt, etc.
- The concepts of leverage including operating, financial, and combined leverage and how they impact risk and returns
Financial statement analysis is important for several reasons such as obtaining loans, evaluating investment opportunities, and assessing creditworthiness for suppliers. The key steps in analysis involve calculating ratios over several years from the income statement, balance sheet, cash flow statement, and shareholders' equity statement. Common ratios calculated include liquidity, leverage/debt, profitability, efficiency, and value ratios. Limitations of ratio analysis include subjectivity in interpretation, lack of comparability between companies, reliance on past financial data, and accounting differences across countries.
The document provides an overview of balance sheet basics and components. It includes the balance sheet of Global Telesystems for the year ending March 31, 2000, showing assets, liabilities, and equity. It then defines and explains each line item, such as gross block, net block, capital work in progress, inventory, receivables, equity share capital, reserves, total debt, and creditors. It discusses the role of balance sheets in investment decision making and analyzing areas like inventories, receivables, debt, and management comments.
The document provides an introduction to fundamental analysis for new investors. It discusses analyzing a company's financial statements including earnings, earnings per share, price-to-earnings ratio, dividend yield, dividend payout ratio, book value, price/book ratio, and price/sales ratio. The objective of fundamental analysis is to use these tools to determine a company's intrinsic value and decide whether to buy, hold, or sell its stock.
The document discusses fundamental analysis for investing, which involves analyzing financial metrics like earnings, cash flow, and debt to evaluate a company's performance and determine its intrinsic value. It covers the objectives, types, and tools of fundamental analysis such as evaluating financial ratios like the P/E ratio, dividend yield, and return on equity. The document also discusses the strengths of fundamental analysis in identifying long-term trends and undervalued companies, as well as its weaknesses including being time-consuming, subjective, and prone to analyst bias.
This document discusses ratio analysis, which involves calculating and presenting relationships between financial statement items. Ratios are used to interpret financial statements and assess a firm's strengths/weaknesses, historical performance, and current financial condition. The document categorizes ratios into liquidity, capital structure/leverage, profitability, and activity ratios. It provides definitions and calculations for key ratios within each category such as current ratio, debt-to-equity ratio, net profit margin, inventory turnover ratio, and discusses how ratios can be used for analysis and comparison purposes.
Financial ratios and their use in understanding Financial StatementsPranav Dedhia
An introduction and in-depth understanding on the importance of Financial ratios in understanding financial statements of business entities along with relevant examples
Ratio analysis involves calculating relationships between financial statement items to interpret a firm's financial condition and performance. Ratios can be classified into liquidity, capital structure, profitability, and activity ratios. Liquidity ratios measure short-term solvency, capital structure ratios measure long-term solvency, profitability ratios measure operating efficiency and returns, and activity ratios measure asset utilization and efficiency. Ratios are compared over time, against industry standards, or between firms to identify strengths, weaknesses, and trends.
Sip 2013 15 main report-kiran mankumbre 110914Kiran Mankumbre
This document provides an executive summary and introduction to analyzing the financial ratios of Dabur India Pvt Ltd. It discusses the objectives of the project, which are to develop a financial model of Dabur and learn about financial modeling and ratio analysis. It introduces the key types of ratios that will be analyzed, including liquidity, profitability, turnover, solvency, and overall profitability ratios. Specific ratios that will be calculated and analyzed include current ratio, quick ratio, gross profit ratio, operating ratio, net profit ratio, return on investment ratio, and return on capital employed ratio.
Financial ratios are indispensable to form a clear financial insight in the position of a company. They show the financial health and the potential of the company.
Ratio AnalysisFinancial ratios can be used to examine various as.docxcatheryncouper
Ratio Analysis
Financial ratios can be used to examine various aspects of the financial position and performance of a business and are widely used for planning and control purposes.
They can be used to evaluate the financial health of a business and can be utilised by management in a wide variety of decisions involving such areas as profit planning, pricing, working-capital management, financial structure and dividend policy.
Ratio analysis provides a fairly simplistic method of examining the financial condition of a business.
A ratio expresses the relation of one figure appearing in the financial statements to some other figure appearing there.
Ratios enable comparison between businesses.
Differences may exist between businesses in the scale of operations making comparison via the profits generated unreliable.
Ratios can eliminate this uncertainty.
Other than comparison with other businesses, it is also a valuable tool in analysing the performance of one business over time.
However useful ratios are not without their problems.
Figures calculated through ratio analysis can highlight the financial strengths and weaknesses of a business but they cannot, by themselves, explain why certain strengths or weaknesses exist or why certain changes have occurred.
Only detailed investigation will reveal these underlying reasons. Ratios must, therefore, be seen as a ‘starting point’.
Financial ratio classification
The following ratios are considered the more important for decision-making purposes:
Ratios can be grouped into certain categories, each of which reflects a particular aspect of financial performance or position.
The following broad categories provide a useful basis for explaining the nature of the financial ratios to be dealt with.
Profitability.Businesses come into being with the primary purpose of creating wealth for the owners. Profitability ratios provide an insight to the degree of success in achieving this purpose. They express the profits made in relation to other key figures in the financial statements or to some business resource.
Efficiency.Ratios may be used to measure the efficiency with which certain resource have been utilised within the business. These ratios are also referred to as active ratios.
Liquidity.It is vital to the survival of a business that there be sufficient liquid resources available to meet maturing obligations. Certain ratios may be calculated that examines the relationship between liquid resources held and creditors due for payment in the near future.
Gearing.This is the relationship between the amount financed by the owners of the business and the amount contributed by outsiders, which has an important effect on the degree of risk associated with a business. Gearing is then something that managers must consider when making financing decisions.
Investment.Certain ratios are concerned with assessing the returns and performance of shares held in a particular business.
Profitabi ...
An article which explains the various capital budgeting techniques and financial & operation leverages. How company uses various techniques to classify and accept various projects.
Accounting for Managers/Management Accounting (Unit-2) by Dr. Abhay Singh Cha...Dr. Abhay Singh Chauhan
This document discusses financial statements and the funds flow statement. It defines key terms like financial statements, current and non-current assets and liabilities, and working capital. It explains that a funds flow statement tracks changes in working capital from period to period. Sources of funds include internal sources like net profit and depreciation, as well as external sources like loans. Uses of funds include purchases of fixed assets, dividend payments, and debt repayments. The funds flow statement is prepared by adjusting net profit for non-cash items, tracking sources and uses of funds, and preparing a schedule showing changes in working capital accounts from one period to the next.
Walter's model states that a company's dividend policy impacts its valuation, with higher-dividend companies valued more than lower- or no-dividend companies. The model uses two factors - dividend payout ratio and the relationship between internal rate of return and cost of capital - in its valuation formula. The formula calculates share price as the present value of infinite dividend and retained earnings flows. The model implies different optimal payout ratios depending on a company's growth phase: 0% for growth companies, no optimum for normal companies, and 100% for declining companies.
This document provides an introduction and methodology for analyzing the financial ratios of Square Pharmaceuticals Ltd. for the financial years 2013-14 and 2014-15. It lists the group members conducting the analysis and the objectives to assess the company's performance, financial condition, and compare the two years. The methodology describes collecting annual report data from the Dhaka Stock Exchange to calculate 11 key financial ratios to analyze liquidity, profitability, asset management, and debt management. These ratios will be used to evaluate Square Pharmaceuticals Ltd.'s financial position and performance over the two years.
Warren Buffett rarely invests in tech stocks because he often does not understand them, which is outside his area of expertise. Unless an investor understands a company's business model and the drivers of future growth, they risk being blindsided. Fundamental analysis attempts to determine a company's value by focusing on internal factors like finances, management, and products, as well as external factors such as the economy and interest rates, to evaluate growth potential and investment risk. Performing various financial ratio calculations and comparing them over time and between competitors can provide important insights for fundamental investors.
This document discusses capital structure, leverage, and cost of capital. It defines capital structure as how a firm finances its operations through various sources of funds like debt and equity. Capital structure planning is important for long-term survival and makes the balance sheet strong. Optimal capital structure seeks to lower cost of capital and maximize firm value. Leverage refers to using assets or funds with fixed costs to magnify returns, and there are three types: operating, financial, and combined. Cost of capital includes return at zero risk, business risk premium, and financial risk premium. It is used for capital budgeting, determining capital mix, and evaluating financial performance.
Part09 finance investment ratio analysis investment ratioRamadan Babers, PhD
This document discusses various investment ratios used to assess company performance and stock value. It defines five key ratios: return on equity (ROE), earnings per share (EPS), price-earnings ratio (P/E), return on common equity (ROCE), and market to book ratio. For each ratio, it provides the calculation and explains how the ratio is used and what higher or lower values may indicate about the company's financials and stock price. Examples are given to demonstrate how to calculate ROE, EPS, and P/E using financial data from an example company's balance sheet and income statement.
A comparative analysis of prism cement ltd with jk cementProjects Kart
This document provides an overview of a research study comparing the financial performance of Prism Cement Ltd. and JK Cement Ltd. over the last four years. It outlines the company profiles, objectives and scope of the study, limitations, and research methodology.
The chapter introduces Prism Cement Ltd. and JK Cement Ltd., noting they both operate in northern India but JK Cement has been in business longer. It highlights sections that will examine each company's vision/mission, features, corporate social responsibility, and current performance. Ratios and financial data from annual reports will be analyzed to evaluate aspects like profitability, leverage, liquidity, and shareholder returns.
This document provides descriptions and explanations of various types of financial ratios used in ratio analysis. It discusses liquidity ratios like the current ratio and quick ratio, profitability ratios such as return on assets and return on equity, activity ratios including asset turnover and inventory turnover, capital structure ratios like the debt ratio, and market ratios like the price to earnings ratio. It also covers DuPont analysis, analysis of leverage, and sustainable growth rate. The ratios can be used to evaluate different aspects of a company's financial health and performance over time.
UV1385 Rev. Nov. 14, 2016 This technical note was .docxjessiehampson
UV1385
Rev. Nov. 14, 2016
This technical note was prepared by Professor Michael J. Schill. Special thanks go to Vladimir Kolcin for data-collection assistance and to Lee Ann
Long-Tyler and Ray Nedzel for technical assistance. Copyright 2015 by the University of Virginia Darden School Foundation, Charlottesville, VA.
All rights reserved. To order copies, send an e-mail to [email protected] No part of this publication may be reproduced, stored in a retrieval system,
used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School
Foundation.
Business Performance Evaluation:
Approaches for Thoughtful Forecasting
Every day, fortunes are won and lost on the backs of business performance assessments and forecasts.
Because of the uncertainty surrounding business performance, the manager should appreciate that forecasting
is not the same as fortune-telling; unanticipated events have a way of making certain that specific forecasts are
never exactly correct. This note purports, however, that thoughtful forecasts greatly aid managers in
understanding the implications of various outcomes (including the most probable outcome) and identify the
key bets associated with a forecast. Such forecasts provide the manager with an appreciation of the odds of
business success.
This note examines principles in the art and science of thoughtful financial forecasting for the business
manager. In particular, it reviews the importance of (1) understanding the financial relationships of a business
enterprise, (2) grounding business forecasts in the reality of the industry and macroenvironment, (3) modeling
a forecast that embeds the implications of business strategy, and (4) recognizing the potential for cognitive
bias in the forecasting process. The note closes with a detailed example of financial forecasting based on the
example of the Swiss food and nutrition company Nestle.
Understanding the Financial Relationships of the Business Enterprise
Financial statements provide information on the financial activities of an enterprise. Much like the
performance statistics from an athletic contest, financial statements provide an array of identifying data on
various historical strengths and weaknesses across a broad spectrum of business activities. The income
statement (also known as the profit-and-loss statement) measures flows of costs, revenue, and profits over a
defined period of time, such as a year. The balance sheet provides a snapshot of business investment and
financing at a particular point in time, such as the end of a year. Both statements combine to provide a rich
picture of a business’s financial performance. The analysis of financial statements is one important way of
understanding the mechanics of the systems that make up business operations.
Interpreting financial ratios
Financial ratios provide a usefu ...
The document discusses factors that influence company earnings and forecasts. It covers topics like earnings before interest and taxes (EBIT), return on assets, earnings per share, leverage, tax rates, fixed and variable costs, and break-even point analysis. Management efficiency, sales, capacity utilization, debt financing, asset value, and tax planning can all impact EBIT. Forecasting individual revenue and expense items provides the most scientific way to estimate earnings, which are used along with the price-earnings ratio to deduce expected market price. Companies with large capital investments have high break-even points and longer periods to generate profits and dividends.
This document discusses financial statement analysis and its importance for business survival and decision making. It outlines key factors like profitability and solvency. Financial statement analysis involves tools like ratio analysis that analyze relationships between financial data to assess a business's past performance, current condition, and future prospects. Common ratios examine aspects like profitability, liquidity, asset use, financial risk, and market indicators.
Case Study 1 Applying Theory to PracticeSocial scientists hav.docxcowinhelen
Case Study 1: Applying Theory to Practice
Social scientists have proposed a number of theories to explain juvenile delinquency. Each has its own strengths and weaknesses. For this assignment, go to the following Website, located at http://listverse.com/2011/05/14/top-10-young-killers/ and select one of the juvenile case studies.
After reading the case, select one (1) of the psychological theories discussed in Chapter 4 of the text.
Write a two to three (2-3) page paper in which you:
1. Summarize three (3) key aspects of the juvenile case study that you selected.
2. Highlight at least three (3) factors that you believe are important for one to understand the origins of the juvenile’s delinquent behavior.
3. Apply at least two (2) concepts from the theory that you chose from the text that would help explain the juvenile’s behavior.
4. Identify one (1) appropriate strategy geared toward preventing delinquency that is consistent with the theory you chose.
5. Use at least three (3) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.
Discussion-
"The Changing Family System"
Using what you’ve learned this week, respond to the following prompts in your post:
· Explain at least two (2) roles that different parenting styles play in shaping the overall behavior of children. Next, indicate the significant impacts that each role has in contributing to delinquent behavior among juveniles.
· Think about the following question: Should juvenile delinquents be removed from their home and parent(s) and placed in a foster home or group home if the child continues to commit criminal acts after repeated attempts at treatment and confinement? Based on this question, discuss your thoughts on this subject. Provide support for your response.
Discussion-
"Exploring Monopolies and Oligopolies"
Watch this video, Oligopolies and Monopolistic Competition, to help you prepare for this week’s discussion.
Reply to these prompts by using the company for which you currently work, a business with which your familiar, or a dream business you want to start:
· With your selected business in mind, determine if it is competitive, monopolistic competitive, an oligopoly, or pure monopoly. Explain how you drew your conclusion about its market structure.
· How does the business/firm in this industry determine the price it will charge for the products or services it sells?
Discussion-
"Considering Tradeoffs You Make Every Day"
Let's talk about two tradeoffs we face every day: how we spend our time and money.
We can only do two things with income: spend it or save it. Time is the ultimate resource. We can choose to spend time working to earn an income or we can do other things, broadly classified as leisure. Reply to these prompts to start your discussion:
· How does a change in interest rate affect your decision to spend or save? How would a change in the interest rate affect a firm's decision to invest or save?
· How might an increas.
Case Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docxcowinhelen
Case Study - Option 3: Barbara
Barbara is a 22 year old woman who has recently graduated from college with a psychology degree. She is currently working as a waitress at a popular restaurant near campus, and says she has always planned to attend law school. Barbara was born in a New Orleans, Louisiana. Her mother is an African American who is an assistant manager at a grocery store. Her father is Caucasian and works at a department store. Barbara reports that she was a shy, unattractive child, but that in general her early childhood was "pretty happy." Barbara says that during elementary school, she was constantly harassed by classmates about being of mixed race. Still, she says that she felt very close to her family during this period. She now insists that "I am not black or white, I am me."
Barbara is sexually active and engages in sexual activity with different men at least 1 time a week. Barbara indicates that she does not need protection because she is on the pill. She says she is simply too young to settle down. During her junior year of high school, Barbara had her first serious boyfriend, Morris, who was a high school classmate. She describes the relationship as warm and supportive and they became sexually active during her senior year of high school. They broke up soon after the first sexual interaction. In college, Barbara has dated and she acknowledges some bisexual experimentation. Barbara says that she prefers heterosexual relationships, however.
Although Barbara appears to be a natural athlete, she leads a relatively sedentary lifestyle. She does not exercise regularly and indicates that it is just not enjoyable.
Barbara does not like her job at the restaurant, but seems unwilling to look for other employment. She says that she feels "very jittery" whenever she gets ready for work, and she uses any excuse to take days off. She also refuses to associate with fellow employees, and reports getting very anxious when she was given a surprise birthday party. Recently, she has lost interest in cleaning her house and seldom cooks for herself. She also attends less to her personal grooming.
Diagnosis – Social Anxiety Disorder/Minor Depression
DSM-5 – Diagnostic Criteria for Social Anxiety Disorder
1. Fear or anxiety specific to social settings, in which a person feels noticed, observed, or scrutinized.
2. Typically the individual will fear that they will display their anxiety and experience social rejection,
3. Social interaction will consistently provoke distress,
4. Social interactions are either avoided, or painfully and reluctantly endured,
5. The fear and anxiety will be grossly disproportionate to the actual situation,
6. The fear, anxiety or other distress around social situations will persist for six months or longer and
7. Cause personal distress and impairment of functioning in one or more domains, such as interpersonal or occupational functioning,
8. The fear or anxiety cannot be attributed to a medical disorder, s.
The document provides an introduction to fundamental analysis for new investors. It discusses analyzing a company's financial statements including earnings, earnings per share, price-to-earnings ratio, dividend yield, dividend payout ratio, book value, price/book ratio, and price/sales ratio. The objective of fundamental analysis is to use these tools to determine a company's intrinsic value and decide whether to buy, hold, or sell its stock.
The document discusses fundamental analysis for investing, which involves analyzing financial metrics like earnings, cash flow, and debt to evaluate a company's performance and determine its intrinsic value. It covers the objectives, types, and tools of fundamental analysis such as evaluating financial ratios like the P/E ratio, dividend yield, and return on equity. The document also discusses the strengths of fundamental analysis in identifying long-term trends and undervalued companies, as well as its weaknesses including being time-consuming, subjective, and prone to analyst bias.
This document discusses ratio analysis, which involves calculating and presenting relationships between financial statement items. Ratios are used to interpret financial statements and assess a firm's strengths/weaknesses, historical performance, and current financial condition. The document categorizes ratios into liquidity, capital structure/leverage, profitability, and activity ratios. It provides definitions and calculations for key ratios within each category such as current ratio, debt-to-equity ratio, net profit margin, inventory turnover ratio, and discusses how ratios can be used for analysis and comparison purposes.
Financial ratios and their use in understanding Financial StatementsPranav Dedhia
An introduction and in-depth understanding on the importance of Financial ratios in understanding financial statements of business entities along with relevant examples
Ratio analysis involves calculating relationships between financial statement items to interpret a firm's financial condition and performance. Ratios can be classified into liquidity, capital structure, profitability, and activity ratios. Liquidity ratios measure short-term solvency, capital structure ratios measure long-term solvency, profitability ratios measure operating efficiency and returns, and activity ratios measure asset utilization and efficiency. Ratios are compared over time, against industry standards, or between firms to identify strengths, weaknesses, and trends.
Sip 2013 15 main report-kiran mankumbre 110914Kiran Mankumbre
This document provides an executive summary and introduction to analyzing the financial ratios of Dabur India Pvt Ltd. It discusses the objectives of the project, which are to develop a financial model of Dabur and learn about financial modeling and ratio analysis. It introduces the key types of ratios that will be analyzed, including liquidity, profitability, turnover, solvency, and overall profitability ratios. Specific ratios that will be calculated and analyzed include current ratio, quick ratio, gross profit ratio, operating ratio, net profit ratio, return on investment ratio, and return on capital employed ratio.
Financial ratios are indispensable to form a clear financial insight in the position of a company. They show the financial health and the potential of the company.
Ratio AnalysisFinancial ratios can be used to examine various as.docxcatheryncouper
Ratio Analysis
Financial ratios can be used to examine various aspects of the financial position and performance of a business and are widely used for planning and control purposes.
They can be used to evaluate the financial health of a business and can be utilised by management in a wide variety of decisions involving such areas as profit planning, pricing, working-capital management, financial structure and dividend policy.
Ratio analysis provides a fairly simplistic method of examining the financial condition of a business.
A ratio expresses the relation of one figure appearing in the financial statements to some other figure appearing there.
Ratios enable comparison between businesses.
Differences may exist between businesses in the scale of operations making comparison via the profits generated unreliable.
Ratios can eliminate this uncertainty.
Other than comparison with other businesses, it is also a valuable tool in analysing the performance of one business over time.
However useful ratios are not without their problems.
Figures calculated through ratio analysis can highlight the financial strengths and weaknesses of a business but they cannot, by themselves, explain why certain strengths or weaknesses exist or why certain changes have occurred.
Only detailed investigation will reveal these underlying reasons. Ratios must, therefore, be seen as a ‘starting point’.
Financial ratio classification
The following ratios are considered the more important for decision-making purposes:
Ratios can be grouped into certain categories, each of which reflects a particular aspect of financial performance or position.
The following broad categories provide a useful basis for explaining the nature of the financial ratios to be dealt with.
Profitability.Businesses come into being with the primary purpose of creating wealth for the owners. Profitability ratios provide an insight to the degree of success in achieving this purpose. They express the profits made in relation to other key figures in the financial statements or to some business resource.
Efficiency.Ratios may be used to measure the efficiency with which certain resource have been utilised within the business. These ratios are also referred to as active ratios.
Liquidity.It is vital to the survival of a business that there be sufficient liquid resources available to meet maturing obligations. Certain ratios may be calculated that examines the relationship between liquid resources held and creditors due for payment in the near future.
Gearing.This is the relationship between the amount financed by the owners of the business and the amount contributed by outsiders, which has an important effect on the degree of risk associated with a business. Gearing is then something that managers must consider when making financing decisions.
Investment.Certain ratios are concerned with assessing the returns and performance of shares held in a particular business.
Profitabi ...
An article which explains the various capital budgeting techniques and financial & operation leverages. How company uses various techniques to classify and accept various projects.
Accounting for Managers/Management Accounting (Unit-2) by Dr. Abhay Singh Cha...Dr. Abhay Singh Chauhan
This document discusses financial statements and the funds flow statement. It defines key terms like financial statements, current and non-current assets and liabilities, and working capital. It explains that a funds flow statement tracks changes in working capital from period to period. Sources of funds include internal sources like net profit and depreciation, as well as external sources like loans. Uses of funds include purchases of fixed assets, dividend payments, and debt repayments. The funds flow statement is prepared by adjusting net profit for non-cash items, tracking sources and uses of funds, and preparing a schedule showing changes in working capital accounts from one period to the next.
Walter's model states that a company's dividend policy impacts its valuation, with higher-dividend companies valued more than lower- or no-dividend companies. The model uses two factors - dividend payout ratio and the relationship between internal rate of return and cost of capital - in its valuation formula. The formula calculates share price as the present value of infinite dividend and retained earnings flows. The model implies different optimal payout ratios depending on a company's growth phase: 0% for growth companies, no optimum for normal companies, and 100% for declining companies.
This document provides an introduction and methodology for analyzing the financial ratios of Square Pharmaceuticals Ltd. for the financial years 2013-14 and 2014-15. It lists the group members conducting the analysis and the objectives to assess the company's performance, financial condition, and compare the two years. The methodology describes collecting annual report data from the Dhaka Stock Exchange to calculate 11 key financial ratios to analyze liquidity, profitability, asset management, and debt management. These ratios will be used to evaluate Square Pharmaceuticals Ltd.'s financial position and performance over the two years.
Warren Buffett rarely invests in tech stocks because he often does not understand them, which is outside his area of expertise. Unless an investor understands a company's business model and the drivers of future growth, they risk being blindsided. Fundamental analysis attempts to determine a company's value by focusing on internal factors like finances, management, and products, as well as external factors such as the economy and interest rates, to evaluate growth potential and investment risk. Performing various financial ratio calculations and comparing them over time and between competitors can provide important insights for fundamental investors.
This document discusses capital structure, leverage, and cost of capital. It defines capital structure as how a firm finances its operations through various sources of funds like debt and equity. Capital structure planning is important for long-term survival and makes the balance sheet strong. Optimal capital structure seeks to lower cost of capital and maximize firm value. Leverage refers to using assets or funds with fixed costs to magnify returns, and there are three types: operating, financial, and combined. Cost of capital includes return at zero risk, business risk premium, and financial risk premium. It is used for capital budgeting, determining capital mix, and evaluating financial performance.
Part09 finance investment ratio analysis investment ratioRamadan Babers, PhD
This document discusses various investment ratios used to assess company performance and stock value. It defines five key ratios: return on equity (ROE), earnings per share (EPS), price-earnings ratio (P/E), return on common equity (ROCE), and market to book ratio. For each ratio, it provides the calculation and explains how the ratio is used and what higher or lower values may indicate about the company's financials and stock price. Examples are given to demonstrate how to calculate ROE, EPS, and P/E using financial data from an example company's balance sheet and income statement.
A comparative analysis of prism cement ltd with jk cementProjects Kart
This document provides an overview of a research study comparing the financial performance of Prism Cement Ltd. and JK Cement Ltd. over the last four years. It outlines the company profiles, objectives and scope of the study, limitations, and research methodology.
The chapter introduces Prism Cement Ltd. and JK Cement Ltd., noting they both operate in northern India but JK Cement has been in business longer. It highlights sections that will examine each company's vision/mission, features, corporate social responsibility, and current performance. Ratios and financial data from annual reports will be analyzed to evaluate aspects like profitability, leverage, liquidity, and shareholder returns.
This document provides descriptions and explanations of various types of financial ratios used in ratio analysis. It discusses liquidity ratios like the current ratio and quick ratio, profitability ratios such as return on assets and return on equity, activity ratios including asset turnover and inventory turnover, capital structure ratios like the debt ratio, and market ratios like the price to earnings ratio. It also covers DuPont analysis, analysis of leverage, and sustainable growth rate. The ratios can be used to evaluate different aspects of a company's financial health and performance over time.
UV1385 Rev. Nov. 14, 2016 This technical note was .docxjessiehampson
UV1385
Rev. Nov. 14, 2016
This technical note was prepared by Professor Michael J. Schill. Special thanks go to Vladimir Kolcin for data-collection assistance and to Lee Ann
Long-Tyler and Ray Nedzel for technical assistance. Copyright 2015 by the University of Virginia Darden School Foundation, Charlottesville, VA.
All rights reserved. To order copies, send an e-mail to [email protected] No part of this publication may be reproduced, stored in a retrieval system,
used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School
Foundation.
Business Performance Evaluation:
Approaches for Thoughtful Forecasting
Every day, fortunes are won and lost on the backs of business performance assessments and forecasts.
Because of the uncertainty surrounding business performance, the manager should appreciate that forecasting
is not the same as fortune-telling; unanticipated events have a way of making certain that specific forecasts are
never exactly correct. This note purports, however, that thoughtful forecasts greatly aid managers in
understanding the implications of various outcomes (including the most probable outcome) and identify the
key bets associated with a forecast. Such forecasts provide the manager with an appreciation of the odds of
business success.
This note examines principles in the art and science of thoughtful financial forecasting for the business
manager. In particular, it reviews the importance of (1) understanding the financial relationships of a business
enterprise, (2) grounding business forecasts in the reality of the industry and macroenvironment, (3) modeling
a forecast that embeds the implications of business strategy, and (4) recognizing the potential for cognitive
bias in the forecasting process. The note closes with a detailed example of financial forecasting based on the
example of the Swiss food and nutrition company Nestle.
Understanding the Financial Relationships of the Business Enterprise
Financial statements provide information on the financial activities of an enterprise. Much like the
performance statistics from an athletic contest, financial statements provide an array of identifying data on
various historical strengths and weaknesses across a broad spectrum of business activities. The income
statement (also known as the profit-and-loss statement) measures flows of costs, revenue, and profits over a
defined period of time, such as a year. The balance sheet provides a snapshot of business investment and
financing at a particular point in time, such as the end of a year. Both statements combine to provide a rich
picture of a business’s financial performance. The analysis of financial statements is one important way of
understanding the mechanics of the systems that make up business operations.
Interpreting financial ratios
Financial ratios provide a usefu ...
The document discusses factors that influence company earnings and forecasts. It covers topics like earnings before interest and taxes (EBIT), return on assets, earnings per share, leverage, tax rates, fixed and variable costs, and break-even point analysis. Management efficiency, sales, capacity utilization, debt financing, asset value, and tax planning can all impact EBIT. Forecasting individual revenue and expense items provides the most scientific way to estimate earnings, which are used along with the price-earnings ratio to deduce expected market price. Companies with large capital investments have high break-even points and longer periods to generate profits and dividends.
This document discusses financial statement analysis and its importance for business survival and decision making. It outlines key factors like profitability and solvency. Financial statement analysis involves tools like ratio analysis that analyze relationships between financial data to assess a business's past performance, current condition, and future prospects. Common ratios examine aspects like profitability, liquidity, asset use, financial risk, and market indicators.
Case Study 1 Applying Theory to PracticeSocial scientists hav.docxcowinhelen
Case Study 1: Applying Theory to Practice
Social scientists have proposed a number of theories to explain juvenile delinquency. Each has its own strengths and weaknesses. For this assignment, go to the following Website, located at http://listverse.com/2011/05/14/top-10-young-killers/ and select one of the juvenile case studies.
After reading the case, select one (1) of the psychological theories discussed in Chapter 4 of the text.
Write a two to three (2-3) page paper in which you:
1. Summarize three (3) key aspects of the juvenile case study that you selected.
2. Highlight at least three (3) factors that you believe are important for one to understand the origins of the juvenile’s delinquent behavior.
3. Apply at least two (2) concepts from the theory that you chose from the text that would help explain the juvenile’s behavior.
4. Identify one (1) appropriate strategy geared toward preventing delinquency that is consistent with the theory you chose.
5. Use at least three (3) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.
Discussion-
"The Changing Family System"
Using what you’ve learned this week, respond to the following prompts in your post:
· Explain at least two (2) roles that different parenting styles play in shaping the overall behavior of children. Next, indicate the significant impacts that each role has in contributing to delinquent behavior among juveniles.
· Think about the following question: Should juvenile delinquents be removed from their home and parent(s) and placed in a foster home or group home if the child continues to commit criminal acts after repeated attempts at treatment and confinement? Based on this question, discuss your thoughts on this subject. Provide support for your response.
Discussion-
"Exploring Monopolies and Oligopolies"
Watch this video, Oligopolies and Monopolistic Competition, to help you prepare for this week’s discussion.
Reply to these prompts by using the company for which you currently work, a business with which your familiar, or a dream business you want to start:
· With your selected business in mind, determine if it is competitive, monopolistic competitive, an oligopoly, or pure monopoly. Explain how you drew your conclusion about its market structure.
· How does the business/firm in this industry determine the price it will charge for the products or services it sells?
Discussion-
"Considering Tradeoffs You Make Every Day"
Let's talk about two tradeoffs we face every day: how we spend our time and money.
We can only do two things with income: spend it or save it. Time is the ultimate resource. We can choose to spend time working to earn an income or we can do other things, broadly classified as leisure. Reply to these prompts to start your discussion:
· How does a change in interest rate affect your decision to spend or save? How would a change in the interest rate affect a firm's decision to invest or save?
· How might an increas.
Case Study - Option 3 BarbaraBarbara is a 22 year old woman who h.docxcowinhelen
Case Study - Option 3: Barbara
Barbara is a 22 year old woman who has recently graduated from college with a psychology degree. She is currently working as a waitress at a popular restaurant near campus, and says she has always planned to attend law school. Barbara was born in a New Orleans, Louisiana. Her mother is an African American who is an assistant manager at a grocery store. Her father is Caucasian and works at a department store. Barbara reports that she was a shy, unattractive child, but that in general her early childhood was "pretty happy." Barbara says that during elementary school, she was constantly harassed by classmates about being of mixed race. Still, she says that she felt very close to her family during this period. She now insists that "I am not black or white, I am me."
Barbara is sexually active and engages in sexual activity with different men at least 1 time a week. Barbara indicates that she does not need protection because she is on the pill. She says she is simply too young to settle down. During her junior year of high school, Barbara had her first serious boyfriend, Morris, who was a high school classmate. She describes the relationship as warm and supportive and they became sexually active during her senior year of high school. They broke up soon after the first sexual interaction. In college, Barbara has dated and she acknowledges some bisexual experimentation. Barbara says that she prefers heterosexual relationships, however.
Although Barbara appears to be a natural athlete, she leads a relatively sedentary lifestyle. She does not exercise regularly and indicates that it is just not enjoyable.
Barbara does not like her job at the restaurant, but seems unwilling to look for other employment. She says that she feels "very jittery" whenever she gets ready for work, and she uses any excuse to take days off. She also refuses to associate with fellow employees, and reports getting very anxious when she was given a surprise birthday party. Recently, she has lost interest in cleaning her house and seldom cooks for herself. She also attends less to her personal grooming.
Diagnosis – Social Anxiety Disorder/Minor Depression
DSM-5 – Diagnostic Criteria for Social Anxiety Disorder
1. Fear or anxiety specific to social settings, in which a person feels noticed, observed, or scrutinized.
2. Typically the individual will fear that they will display their anxiety and experience social rejection,
3. Social interaction will consistently provoke distress,
4. Social interactions are either avoided, or painfully and reluctantly endured,
5. The fear and anxiety will be grossly disproportionate to the actual situation,
6. The fear, anxiety or other distress around social situations will persist for six months or longer and
7. Cause personal distress and impairment of functioning in one or more domains, such as interpersonal or occupational functioning,
8. The fear or anxiety cannot be attributed to a medical disorder, s.
Case Study - Cyberterrorism—A New RealityWhen hackers claiming .docxcowinhelen
Case Study - Cyberterrorism—A New Reality:
When hackers claiming to support the Syrian regime of Bashar Al-Assad attacked and disabled the website of Al Jazeera, the Qatar-based satellite news channel, in September 2012, the act was another act of hacktivism, purporting to promote a specific political agenda over another. Hacktivism has become a very visible form of expressing dissent. Even though there have been numerous incidents reported by the media, the first case of hacktivism was documented in 1989 when a member of the Cult of the Dead Cow hacker collective named Omega coined the term in 1996. However, hacktivism is not the only form of cyber protest and conflict that has everyone from ICT professionals to governments scrambling for solutions. Individuals, enterprises, and governments alike rely in many instances almost completely on network computing technologies, including cloud computing. The international and ever-evolving nature of the Internet along with inadequate law enforcement and the anonymity the global architecture offers creates opportunities for hackers to attack vulnerable nodes for personal, financial, or political gain.
The Internet is also rapidly becoming the political and advocacy platform of choice, bringing with it both positive and negative consequences. Increasingly sophisticated off-the-shelf technologies and easy access to the Internet are significantly increasing incidents of cyberterrorism, netwars, and cyberwarfare. The following are a few examples.
• According to The Israel Electric Company, Israel is attacked 1,000 times a minute by cyberterrorists targeting the country’s infrastructure—water, electricity, communications, and other services.• The New York Times, quoting military officials, said there was a seventeen-fold increase in cyberattacks targeting the US critical infrastructure between 2009 and 2011.• The 2010 Data Breach Investigations Report has data recording more than 900 instances of computer hacking and other data breaches in the past seven years, resulting in some 900 million compromised records. In 2012, the same study listed 855 breaches, resulting in 174 million compromised records in 2011 alone, up from 4 million in 2010.• Another study of 49 breaches in 2011 reported that the average organizational cost of a data breach (including detection, internal response, notification, post notification cost) was $5.5 million. This number was down from $7.2 million in 2010.14 The Telegraph (London) reported that “India blamed a new ‘cyber-jihad’ by Pakistani militant groups for the exodus of thousands of people from India’s north-eastern minorities from its main southern cities in August after text messages warning them to flee went viral.”
There have been recorded instances of nations allegedly engaging in cyberwarfare. The Center for the Study of Technology and Society has identified five methods by which cyberwarfare can be used as a means of military action. These include defacing or di.
Case Study - APA paper with min 4 page content Review the Blai.docxcowinhelen
Case Study - APA paper with min 4 page content
Review the
Blaine
case on the capital structure by understanding the case well enough to help the CEO make informed analysis and decisions on the issues listed in the second paragraph.
I want you to, of course, show me that you understand the situation but then to add the
.
Case Study - Global Mobile Corporation Damn it, .docxcowinhelen
Case Study - Global Mobile Corporation
“Damn it, he's done it again!”
Charlie Newburg had to get up and walk around his office, he was so frustrated. He had been
reviewing the most recent design, parts, and assembly specifications for Global Mobile's latest
smart phone (code named: Nonphixhun) that had been released for production the previous
Thursday. The files had just come back to Charlie's engineering services department with a
caustic note that began, “This one can't be produced, either…” It was the fourth time production
had returned the design.
Newburg, director of engineering for the Global Mobile Corporation, was normally a quiet
person. But the Nonphixhun project was stretching his patience; it was beginning to appear like
several other new products that had hit delays and problems in the transition from design to
production during the eight months Charlie had worked for Global Mobile. These problems were
nothing new at Global Mobile's Asian factory; Charlie's predecessor in the engineering job had
run afoul of them, too, and had finally been fired for protesting too vehemently about the other
departments. But the Nonphixhun phone should have been different. Charlie and the firm's
president, Hannah Hoover, had video-conferenced two months earlier (on July 3, 2006) with the
factory superintendent, Tyson Wang, to smooth the way for the new phone's design. He thought
back to the meeting …
• “Now, we all know there's a tight deadline on the Nonphixhun,” Hannah Hoover said, “and
Charlie's done well to ask us to talk about its introduction. I'm counting on both of you to find
any snags in the system, and to work together to get that first production run out by October
2. Can you do it?” “We can do it in production if we get a clean design two weeks from
now, as scheduled,” answered Tyson Wang, the factory manager. “Charlie and I have already
talked about that, of course. I've spoken with our circuit board and other parts suppliers and
scheduled assembly capacity, and we'll be ready. If the design goes over schedule, though, I'll
have to fill in with other runs, and it will cost us a bundle to break in for the Nonphixhun.
How does it look in engineering, Charlie?” “I've just reviewed the design for the second
time,” Charlie replied. “If Marianne Price can keep the salespeople out of our hair, and avoid
any more last minute changes, we've got a shot. I've pulled my technical support people off of
three other overdue jobs to get this one out. But, Tyson, that means we can't spring engineers
loose to confer with your production people on other manufacturing problems.” “Well
Charlie, most of those problems are caused by the engineers, and we need them to resolve the
difficulties. We've all agreed that production problems come from both of us bowing to sales
pressure, and putting equipment into production before the designs are really ready. That's
just wh.
Case Study #3Apple Suppliers & Labor PracticesWith its h.docxcowinhelen
Case Study #3
Apple Suppliers & Labor Practices
With its highly coveted line of consumer electronics, Apple has a cult following among loyal consumers. During the 2014 holiday season, 74.5 million iPhones were sold. Demand like this meant that Apple was in line to make over $52 billion in profits in 2015, the largest annual profit ever generated from a company’s operations. Despite its consistent financial performance year over year, Apple’s robust profit margin hides a more complicated set of business ethics. Similar to many products sold in the U.S., Apple does not manufacture most its goods domestically. Most of the component sourcing and factory production is done overseas in conditions that critics have argued are dangerous to workers and harmful to the environment.
For example, tin is a major component in Apple’s products and much of it is sourced in Indonesia. Although there are mines that source tin ethically, there are also many that do not. One study found workers—many of them children—working in unsafe conditions, digging tin out by hand in mines prone to landslides that could bury workers alive. About 70% of the tin used in electronic devices such as smartphones and tablets comes from these more dangerous, small-scale mines. An investigation by the BBC revealed how perilous these working conditions can be. In interviews with miners, a 12-yearold working at the bottom of a 70-foot cliff of sand said: “I worry about landslides. The earth slipping from up there to the bottom. It could happen.”
Apple defends its practices by saying it only has so much control over monitoring and regulating its component sources. The company justifies its sourcing practices by saying that it is a complex process, with tens of thousands of miners selling tin, many of them through middle-men. In a statement to the BBC, Apple said “the simplest course of action would be for Apple to unilaterally refuse any tin from Indonesian mines. That would be easy for us to do and would certainly shield us from criticism. But that would also be the lazy and cowardly path, since it would do nothing to improve the situation. We have chosen to stay engaged and attempt to drive changes on the ground.”
In an effort for greater transparency, Apple has released annual reports detailing their work with suppliers and labor practices. While more recent investigations have shown some improvements to suppliers’ working conditions, Apple continues to face criticism as consumer demand for iPhones and other products continues to grow.
Essay directions –
Students will have to identify and analyze the above ethical dilemma. Write a 750 – 1000 word, double-spaced paper, and APA style.
Students are expected to identify the key stakeholders, discussion of the implications of the ethical dilemma, and answer the case study questions. Each paper should have the following sections: • Introduction of the case• The ethical dilemma • Stakeholders • Questions • Conclusions • References .
CASE STUDY (Individual) Scotland In terms of its physical l.docxcowinhelen
CASE STUDY (Individual): Scotland
* In terms of its physical landscape, where is the region that is experiencing a devolutionary process located and what type of climate is prevalent? (use Figure 2.5 and 2.4 of the textbook).
* According to the sources you have consulted, do these physical/natural characteristics have played any role in the historical background for this devolutionary process? How?
* How do the people that inhabit the region you are studying speak about their relationship to the land and the environment? Do they express any ideas on biodiversity conservation?
* Do they say anything about their homeland? If the region you are studying has a website (official or not), what role do maps play on their web site/s?
* Is this region located close to or far from the center of power of the country (the national capital city)?
* Does this condition have any impact on the reasons why they would like to gain at-least more autonomy to make their own decisions?
* According to the source/s you have consulted, what are the main reason/s why this population would like to break-up from the country in which they live in?
Do this/these source/s mention any explanation/s based on cultural or ethnic characteristics? For example, speaking a different language? Which one? Professing a different religion? Which one? Economic disparities
.
Case Study #2 T.D. enjoys caring for the children and young peop.docxcowinhelen
Case Study #2
T.D. enjoys caring for the children and young people in the schools where she works, but sometimes she is faced with tough situations such as suspected child abuse and neglect, teen pregnancy, and alcohol and drug use among teenagers. She works hard to ensure that the children in her schools receive the best care possible.
Question:
Several third graders reports having received no breakfast at home for more than a week. T.D. is exercising Advocacy for the students under her care. What type of actions she might be doing to exercise advocacy for the students?
Discuss this:
Moral distress is a frequent situation where health care providers should face. Please define and discuss a personal experience where you have faced Moral distress in your practice.
Discuss how health promotion relates to morality.
Discuss your insights about your own communication strengths and weaknesses. Identify situations in which it may be difficult for you to establish or terminate a therapeutic relationship.
*
formatted and cited in current APA style with support from at least 2 academic sources.
.
CASE STUDY #2 Chief Complaint I have pain in my belly”.docxcowinhelen
CASE STUDY #2
Chief Complaint:
“I have pain in my belly”
History of Present Illness (HPI):
A 25-year-old female presents to the emergency room (ER) with complaints of severe abdominal pain for 2 weeks . The pain is sharp and crampy It hurts if I run, sit down hard, or if I have sex
PMH:
Patient denies
Drug Hx:
Birth control
Allergies:
NKA
Subjective:
Nausea and vomiting, Last menstrual period 5 days ago, New sexual partner about 2 months ago, No condoms, he hates them No pain, blood or difficulty with urination
Objective Data:
PE:
B/P 138/90; temperature 99°F; (RR) 20; (HR) 110, regular; oxygen saturation (PO2) 96%; pain 5/10
General:
acute distress and severe pain
HEENT:
Atraumatic, normocephalic, PERRLA, EOMI, conjunctiva and sclera clear; nares patent, nasopharynx clear, good dentition. Piercing in her right nostril and lower lip.
Lungs:
CTA AP&L
Card:
S1S2 without rub or gallop
Abd:
INSPECTION: no masses or thrills noted; no discoloration and skin is warm to; no tattoos or piercings; abdomen is nondistended and round
• AUSCULTATION: bowel sounds (BS) are normal in all four quadrants, no bruits noted
• PALPATION: on palpation, abdomen is tender to touch in four quadrants; tenderness noted on light palpation, deep palpation reveals no masses, spleen and liver unremarkable
• PERCUSSION: tympany heard in all quadrants, no dullness noted in abdominal area
GU:
• EXTERNAL: mature hair distribution; no external lesions on labia
• INTROITUS: slight green-gray discharge, no lesions
• VAGINAL: normal rugae; moderate amount of green discharge on vaginal walls
• CERVIX: nulliparous os with small amount of purulent discharge from os with positive cervical motion tenderness (CMT)
• UTERUS: ante-flexed, normal size, shape, and position
• ADNEXA: bilateral tenderness with fullness; both ovaries without masses
• RECTAL: deferred
• VAGINAL DISCHARGE: green in color
Ext:
no cyanosis, clubbing or edema
Integument:
intact without lesions masses or rashes
Neuro:
No obvious deficits and CN grossly intact II-XII
Then answer the following questions:
What other subjective data would you obtain?
What other objective findings would you look for?
What diagnostic exams do you want to order?
Name 3 differential diagnoses based on this patient presenting symptoms?
Give rationales for your each differential diagnosis.
-
Your initial post should be at least 500 words, formatted and cited in current APA style with support from at least 2 academic sources.
.
Case Study #1Jennifer is a 29-year-old administrative assistan.docxcowinhelen
Case Study #1
Jennifer is a 29-year-old administrative assistant married to Antonio, an Italian engineer, whom Jennifer met four years earlier while on a business trip for her marketing company. The couple now lives in Nebraska, where Antonio works for the county's transportation department and Jennifer commutes an hour each way to her marketing office. They have been trying to start a family for over a year. Eight months ago, Jennifer miscarried in her second month of pregnancy. Antonio's parents love Jennifer and often ask her if she is expecting again, hoping to encourage her to focus on her next baby. Jennifer's mother passed away two years ago and her father's health is rapidly deteriorating. Jennifer faces the probability of placing her father in a skilled nursing care facility within the next few months, against his wishes.
At work, Jennifer runs a tight ship. She is organized and prepares lists to assure that everything is done according to schedule. Everyone counts on Jennifer and she takes pride in never letting people down.
Jennifer has visited her physician numerous times in the last six months, complaining of headaches, backaches, and indigestion. Jennifer insists that she is happy and is not feeling stressed, yet she finds herself making more mistakes at work, unable to keep up with housework, and feeling tired and overwhelmed; she has begun to question her effectiveness as an employee, wife, daughter, and potential mother. Her pains seem to be increasing, but her doctor cannot find a physical cause for her discomfort.
Case Study #2
Michael is a 40-year-old airline pilot who has recently begun to experience chest pains. The chest pains began when Michael signed his final divorce papers, ending his 15-year marriage. He fought for joint custody of his two children, ages 12 and 10, but although he wants to be with them more frequently, he only sees them every two weeks. This schedule is, in great part, a result of his employer's announcement that budget constraints would result in layoffs. Michael worries that without his job he will be unable to support his children and lose the new townhouse that he purchased. Michael's chest pains are becoming more frequent and he fears that he may be dying.
Review case studies 1 and 2.
Choose one case study.
Complete the following questions in 150 to 200 words each. Be as detailed as possible and use the information you have learned throughout this course.
• What are the causes of stress in Michael’s or Jennifer’s life? How is stress affecting Michael’s or Jennifer’s health?
• How are these stressors affecting Michael’s or Jennifer’s self-concept and self-esteem?
• How might Michael’s or Jennifer’s situation illustrate adjustment? How might this situation become an opportunity for personal growth?
• What defensive coping methods is Michael or Jennifer using? What active coping methods might be healthier for Michael or Jennifer to use? Explain why you would recom.
Case Study # 2 –Danny’s Unhappy DutyEmployee ProfilesCaro.docxcowinhelen
Case Study # 2 –Danny’s Unhappy Duty
Employee Profiles
:
Carol Brown, Danny Winthrop, Thomas Fletcher
Carol, the Department Secretary for Purchasing and General Stores, has been
working at St. Louis Memorial Hospital for sixteen years, four of which have
been for the present Manager, Dan Winthrop. Carol likes her Boss, who gives
his employees more leeway than most. Carol’s main interests are her work and
her home—traits also typical of the other people who work in the Department.
Carol feels she is part of a close, cooperative group of employees.
Dan, or Danny, as he likes to be called, arrived at St. Louis Memorial four years
ago as a replacement for a Department manager who had been at the Hospital
for a number of years. Danny’s predecessor, Bill Taylor, was very strict in
everything from insisting that employees take exactly one-half hour for lunch
breaks to not having a coffee pot in the Department. When Danny came on
board as a Department Manager, his management style was much less strict.
The result was that Danny’s employees were much happier, and began to meet
and exceed expectations in getting their work done. St. Louis Memorial’s
previous CEO was a good friend and frequently complimented Danny on his
efficient and effective staff. Now a new CEO, Thomas Fletcher, has been hired
by the Hospital’s Board of Directors. Things are about to change.
Thomas Fletcher, new CEO and a recent graduate from a superior school of
hospital management, has always believed in “doing things by the book”.
Thomas originally had wanted to become a doctor, but decided two years into
the process that it was going to take him too long, and that he would be better
off becoming an administrator. He likes the idea of being an administrator,
and wants to be a good one. He has decided to start out his career at St. Louis
Memorial, of the smaller hospitals in the St. Louis area, but hopes to progress to a
a much larger facility in about four years, once he develops a track record at
St. Louis Memorial.
The Challenge: Communication, Criticism and Discipline, Leadership, Motivation,
Rules and Policies
Danny knows his employees quite well. They are generally a happy, cohesive, and cooperative group. They joke around a lot among themselves, but get the work done more than satisfactorily. All of them seem to give a
gr.
Case Study – Multicultural ParadeRead the Case below, and answe.docxcowinhelen
This document provides a case study about a school's multicultural day celebration that resulted in confusion and exclusion. The school encouraged students to participate in a culture parade by wearing clothing representing their ethnic heritage. However, when two students - an African American girl and a white girl - brought everyday clothing, they were not allowed to participate. The teacher was worried others would be confused by their inclusion or that the girls would be ridiculed for misunderstanding the instructions. This highlighted differences between concepts like culture, ethnicity, and nationality.
Case Study THE INVISIBLE SPONSOR1BackgroundSome execut.docxcowinhelen
Case Study : THE INVISIBLE SPONSOR1
Background
Some executives prefer to micromanage projects whereas other executives
are fearful of making a decision because, if they were to make the wrong
decision, it could impact their career. In this case study, the president of the company assigned one of the vice presidents to act as the project sponsor on a project designed to build tooling for a client. The sponsor, however, was reluctant to make any decisions.
Assigning the VP
Moreland Company was well-respected as a tooling design-and-build
company. Moreland was project-driven because all of its income came
from projects. Moreland was also reasonably mature in project management.
When the previous VP for engineering retired, Moreland hired an executive from a manufacturing company to replace him. The new VP for engineering, Al Zink, had excellent engineering knowledge about tooling but had worked for companies that were not project-driven. Al had very little knowledge about project management and had never functioned as a project sponsor. Because of Al’s lack of experience as a sponsor, the president decided that Al should “get his feet wet” as quickly as possible and assigned him as the project sponsor on a mediumsized project. The project manager on this project was Fred Cutler. Fred was an engineer with more than twenty years of experience in tooling design and manufacturing. Fred reported directly to Al Zink administratively.
Fred's Dilemma
Fred understood the situation; he would have to train Al Zink on how to
function as a project sponsor. This was a new experience for Fred because subordinates usually do not train senior personnel on how to do their job. Would Al Zink be receptive?
Fred explained the role of the sponsor and how there are certain project documents that require the signatures of both the project manager and the project sponsor. Everything seemed to be going well until Fred informed Al that the project sponsor is the person that the president eventually holds accountable for the success or failure of the project. Fred could tell that Al was
quite upset over this statement.
Al realized that the failure of a project where he was the sponsor could damage his reputation and career. Al was now uncomfortable about having to act as a sponsor but knew that he might eventually be assigned as a sponsor on other projects. Al also knew that this project was somewhat of a high risk. If Al could function as an invisible sponsor, he could avoid making any critical decisions.
In the first meeting between Fred and Al where Al was the sponsor, Al asked Fred for a copy of the schedule for the project. Fred responded: I’m working on the schedule right now. I cannot finish the schedule until you tell me whether you want me to lay out the schedule based upon best time, least cost, or least risk.
Al stated that he would think about it and get back to Fred as soon as possible.
During the middle of the next week, Fred and Al m.
CASE STUDY Experiential training encourages changes in work beha.docxcowinhelen
CASE STUDY: Experiential training encourages changes in work behavior and growth in one’s abilities, which is accomplished through a multitude of methods. Experiential training has proven to be cost-effective while motivating employees as well as improving self-awareness, personal accountability, teamwork skills, and communication skills (Ritchie, 2011). Additionally, the training methods provide trainees with direct experience, the opportunity to reflect on that experience, and share models to help trainees to deduce using both present and past experience, while accommodating learning styles and strengths (Ritchie, 2011). Valkanos and Fragoulis identify several reasons why experiential training provides value:
1. Ongoing advances in technology requiring changes in knowledge, skills, and abilities
2. Divergence between theory and practice
3. Mergers and acquisitions of enterprises which tend to bring new jobs, organizational culture, and work content
4. Constant environment of change, from working conditions to processes and procedures relating to organizational issues, quality, and new products or services, and requiring new competencies, duties, or work content (Valkanos & Fragoulis, 2007, p. 22).
Method
Description
On-the-job Training
Receives instructions on the functions of their job in their assigned workplace.
Simulators
Teaches employees on how to operate equipment in a given context
Role Playing
Developing interpersonal and business skills, such as decision-making, communication, conflict resolution, and solving complex problems.
Case Study
Develops critical thinking skills to include analytical, higher-level skills, and exploring and resolving complex problems.
Games
Develops general business and organizational principles addressing application in a variety of situations.
Behavior Modeling
Used when learning goals are a rule and inflexible procedures. Provides skills and practice to modify and model behavior.
In-basket Techniques
A variety of items placed in an envelope that reflects what might be found in an inbox. This activity is used to assist trainees in developing and applying their strategic and operational skills.
(Blanchard & Thacker, 2013, pp. 222-223)
References:
· Blanchard, P. N., & Thacker, J. W. (2013). Effective training: Systems, strategies, and practices (5th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
· Valkanos, E., & Fragoulis, I. (2007). Experiential learning – its place in in‐house education and training. Development and Learning in Organizations: An International Journal, 21(5), 21-23. doi:10.1108/14777280710779454
Discussion Question--Choose one perspective in which to respond.
Non-HR Perspective: Your department is not meeting performance expectations. What steps do you take to resolve the issue? Is training a possible solution; if so, which of the above training methods would be the most effective in addressing the issue? Would you, at any point, involve HR--if so, at what point and why?.
Case Study Hereditary AngioedemaAll responses must be in your .docxcowinhelen
Case Study: Hereditary Angioedema
All responses must be in your own words. Answers that have been copied and pasted will not receive credit.
1. Translate “angioedema”. [Note: I am not looking for a description of the disorder. Rather, I would like you to translate the medical term itself.]
2. The complement system is described as a ‘cascade system’. How does the system fit into this description of being a cascade? [Suggestion: Google the definition of cascade, then think about the complement system in light of the definition]
3. Is complement involved in the innate, or the adaptive immune system, or both? Please explain you answer.
4. What role does C1INH play in the complement system? Why is it so important?
5. What was the physiologic cause of Richard’s abdominal pain?
6. How can one distinguish the swelling of HAE from the swelling of allergic angioedema?
7. What is bradykinin’s role in HA?
8. Do you think Richard’s infancy colic was related to his HA? No need to research this. Just use your intuition. Explain your thinking.
9. What is typically used to treat attacks of HAE?
10. Swelling in the extremities is not dangerous. What other areas of the body are subject to swelling? What is the most dangerous location for swelling to occur and why is it the most dangerous?
2018
BUS 308 Week 2 Lecture 1
Examining Differences - overview
Expected Outcomes
After reading this lecture, the student should be familiar with:
1. The importance of random sampling.
2. The meaning of statistical significance.
3. The basic approach to determining statistical significance.
4. The meaning of the null and alternate hypothesis statements.
5. The hypothesis testing process.
6. The purpose of the F-test and the T-test.
Overview
Last week we collected clues and evidence to help us answer our case question about
males and females getting equal pay for equal work. As we looked at the clues presented by the
salary and comp-ratio measures of pay, things got a bit confusing with results that did not see to
be consistent. We found, among other things, that the male and female compa-ratios were fairly
close together with the female mean being slightly larger. The salary analysis showed a different
view; here we noticed that the averages were apparently quite different with the males, on
average, earning more. Contradictory findings such as this are not all that uncommon when
examining data in the “real world.”
One issue that we could not fully address last week was how meaningful were the
differences? That is, would a different sample have results that might be completely different, or
can we be fairly sure that the observed differences are real and show up in the population as
well? This issue, often referred to as sampling error, deals with the fact that random samples
taken from a population will generally be a bit different than the actual population parameters,
but will be “close” enough to the actual.
case studieson Gentrification and Displacement in the Sa.docxcowinhelen
case studies
on Gentrification and Displacement
in the San Francisco Bay Area
Authors:
Miriam Zuk and Karen Chapple
Chapter 3: Nicole Montojo
Chapter 4: Sydney Cespedes, Mitchell Crispell, Christina Blackston, Jonathan Plowman, and
Edward Graves
Chapter 5: Logan Rockefeller Harris, Mitchell Crispell, Fern Uennatornwaranggoon, and Hannah Clark
Chapter 6: Nicole Montojo and Beki McElvain
Chapter 7: Celina Chan, Viviana Lopez, Sydney Céspedes, and Nicole Montojo
Chapter 8: Alexander Kowalski, Julia Ehrman, Mitchell Crispell and Fern Uennatornwaranggoon
Chapter 9: Mitchell Crispell
Chapter 10: Logan Rockefeller Harris and Sydney Cespedes
Chapter 11: Mitchell Crispell
Partner Organizations:
Causa Justa :: Just Cause, Chinatown Community Development Center, Marin Grassroots, Monument
Impact, People Organizing to Demand Environmental & Economic Rights (PODER), San Francisco
Organizing Project / Peninsula Interfaith Action , Working Partnerships USA
Acknowledgements:
Research support was provided by Maura Baldiga, Julian Collins, Mitchell Crispell, Julia Ehrman, Alex
Kowalski, Jenn Liu, Beki McElvain, Carlos Recarte, Maira Sanchez, Mar Velez, David Von Stroh, and
Teo Wickland. Report layout and design was done by Somaya Abdelgany.
Additional advisory support was provided by Carlos Romero. This case study was funded in part by
the Regional Prosperity Plan1 of the Metropolitan Transportation Commission as part of the “Regional
Early Warning System for Displacement” project and from the California Air Resources Board2 as part
of the project “Developing a New Methodology for Analyzing Potential Displacement.”
The Center for Community Innovation (CCI) at UC-Berkeley nurtures effective solutions that expand
economic opportunity, diversify housing options, and strengthen connection to place. The Center
builds the capacity of nonprofits and government by convening practitioner leaders, providing techni-
cal assistance and student interns, interpreting academic research, and developing new research out
of practitioner needs.
communityinnovation.berkeley.edu
July 2015
Cover Photographs: Robert Campbell, Ricardo Sanchez, David Monniaux, sanmateorealestateonline.com/Redwood-City, marinretail-
buzz.blogspot.com, trulia.com/homes/California/Oakland , bloomingrock.com, sharks.nhl.com/club/gallery, panoramio.com
1 The work that provided the basis for this publication was supported by funding under an award with the U.S. Department of Hous-
ing and Urban Development. The substance and findings of the work are dedicated to the public. The author and publisher are solely
responsible for the accuracy of the statements and interpretations contained in this publication. Such interpretations do not neces-
sarily reflect the views of the Government.
2 The statements and conclusions in this report are those of the authors and not necessarily those of the California Air Resources
Board. The mention of commercial products, their source, or their u.
Case Studt on KFC Introduction1) Identify the type of .docxcowinhelen
Case Studt on KFC
Introduction
1) Identify the type of business organization and strategies
2) Key players
Body
1. Opportunities
2. Threats
Closing/Conclusion
1. Make recommendations
2. Offer a plan for implementation
.
Case Study Crocs Revolutionizing an Industry’s Supply Chain .docxcowinhelen
Case Study Crocs: Revolutionizing an Industry’s Supply Chain Model for
Competitive Advantage
If the products sell extremely well, we will
build more in season, and will be back on the
shelves in a few weeks. And we’ll build even
more, and even more, and even more, in that
same season. We’re not going to wait with a
hot new product until next year, when hope-
fully the same trend is alive.
—Ronald Snyder, CEO of Crocs, Inc.1
On May 3, 2007, Crocs, Inc. released its results for the
first quarter of the year. The footwear company,
which had sold its first shoes in 2003, reported reve-
nues of $142 million for the quarter, more than three
times its sales for the first quarter of 2006. Net in-
come, at $0.61 per share was more than 17 percent
of sales, nearly four times higher than the previous
year.2 These results far exceeded market expecta-
tions, which had been for earnings of $0.49 per share
on $114 million of revenue.3 As part of the earnings
release, the company announced a two-for-one stock
split. Immediately after the announcement, the stock
price jumped 15 percent.
The growth and profitability of Crocs, which made
funky, brightly colored shoes using an extremely com-
fortable plastic material, had been astounding. Much
of this growth had been made possible by a highly
flexible supply chain which enabled the company to
build additional product to fulfill new orders quickly
within the selling season, allowing it to respond to un-
expectedly high demand—a capability that was previ-
ously unheard of in the footwear industry. This ability
to fulfill the needs of retailers also made the company
a very popular supplier to shoe sellers.
This success also raised questions about how
the company should grow in the future. Should it
vertically integrate or grow through product line
extension? Should it grow organically or through ac-
quisition? Would potential growth paths exploit
Crocs’ core competencies or defocus them?
CROCS, INC.
In 2002, three friends from Boulder, Colorado went
sailing in the Caribbean. One brought a pair of foam
clog shoes that he had bought from a company in
Canada. The clogs were made from a special mate-
rial that did not slip on wet boat decks, was easy
to wash, prevented odor, and was extremely com-
fortable. The three, Lyndon “Duke” Hanson, Scott
Seamans, and George Boedecker, decided to start a
business selling these Canadian shoes to sailing en-
thusiasts out of a leased warehouse in Florida, as
Hanson said, “so we could work when we went on
sailing trips there.”4 The founders wanted to name
the shoes something that captured the amphibious
nature of the product. Since “Alligator” had already
been taken, they chose to name the shoes “Crocs.”
The shoes were an immediate success, and word
of mouth expanded the customer base to a wide
range of people who spent much of their days stand-
ing, such as doctors and gardeners. In October 2003,
as the business began to grow, th.
Case Studies Student must complete 5 case studies as instructed.docxcowinhelen
Case Studies: Student must
complete 5 case studies
as instructed by course
materials. Fill out form below for 5 different people (imaginary is okay).
Master Herbalist Questionnaire
Date: _____________________
Name: _________________________________ Age: ______ Birth date:_____________
Address: ________________________________________________________________
Home Phone: _________________________ Work Phone:________________________
Height: _________ Weight: _________ 1 year ago:__________ 5 years ago:_________
Occupation: _______________________________________ Full Time Part Time
Living situation: Alone Friends Partner Spouse Parents Children Pets
What are your major health concerns and intentions for your visit today?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Please list any other health care providers or consultants you are currently working with:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Please list any current health conditions diagnosed by a medical doctor:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Please use this form
as a source of
reference when
conducting your
Case-Studies.
Treat this part as information only as you are not to treat or prescribe treatment for any specific diseases
It is important to know if the client is receiving treatment from other practitioners and what these entail
Since legally you are not allowed to diagnose disease, it is helpful to get one from an MD
When was your last physical exam?
________________________________________________________________________
Please list all herbs, vitamins, and dietary supplements you are currently taking, includingdosage and frequency:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
List all medication.
Case Studies in Telehealth AdoptionThe mission of The Comm.docxcowinhelen
Case Studies in Telehealth Adoption
The mission of The Commonwealth
Fund is to promote a high performance
health care system. The Fund carries
out this mandate by supporting
independent research on health care
issues and making grants to improve
health care practice and policy. Support
for this research was provided by
The Commonwealth Fund. The views
presented here are those of the author
and not necessarily those of The
Commonwealth Fund or its directors,
officers, or staff.
For more information about this study,
please contact:
Andrew Broderick, M.A., M.B.A.
Codirector, Center for Innovation
and Technology in Public Health
Public Health Institute
[email protected]
The Veterans Health Administration:
Taking Home Telehealth Services to
Scale Nationally
Andrew Broderick
ABSTRACT: Since the 1990s, the Veterans Health Administration (VHA) has used infor-
mation and communications technologies to provide high-quality, coordinated, and com-
prehensive primary and specialist care services to its veteran population. Within the VHA,
the Office of Telehealth Services offers veterans a program called Care Coordination/
Home Telehealth (CCHT) to provide routine noninstitutional care and targeted care man-
agement and case management services to veterans with diabetes, congestive heart fail-
ure, hypertension, post-traumatic stress disorder, and other conditions. The program uses
remote monitoring devices in veterans’ homes to communicate health status and to cap-
ture and transmit biometric data that are monitored remotely by care coordinators. CCHT
has shown promising results: fewer bed days of care, reduced hospital admissions, and
high rates of patient satisfaction. This issue brief highlights factors critical to the VHA’s
success—like the organization’s leadership, culture, and existing information technology
infrastructure—as well as opportunities and challenges.
OVERVIEW
Since the 1990s, information and communications technologies—including tele-
health—have been at the core of the Veterans Health Administration’s (VHA’s)
successful system-level transformation toward providing continuous, coordinated,
and comprehensive primary and specialist care services. The VHA’s leadership
and culture; underlying health information technology infrastructure; and strong
commitment to standardized work processes, policies, and training have all con-
tributed to the home telehealth program’s success in meeting the chronic care
needs of a population of aging veterans and reducing their use of institutional
care and its associated costs. The home teleheath model also encourages patient
activation, self-management, and helps in the early detection of complications.
To learn more about new publications
when they become available, visit the
Fund's website and register to receive
Fund email alerts.
Commonwealth Fund pub. 1657
Vol. 4
January 2013
www.commonwealthfund.org
www.commonwealthfund.org
mailto:[email pro.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
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Running head MILESTONE 3 .docx
1. Running head: MILESTONE 3
1
MILESTONE 3
4
Robert Shulzinsky
Southern New Hampshure University
6 January 2018
Capital Budgeting Data
Net Present Value (NPV) of the Project
Net Present Value for the project for the five years will be
given by the NPV value for the cash flows as shown by the
capital budgeting sheet for milestone 3 minus the initial outlay.
NPV of the project = (CF1+CF2+CF3+CF4+CF5) – Initial
outlay
= ($21,453,688.38)
Internal Rate of Return (IRR) of the Project
Internal rate of return (IRR) represents the interest rate at which
the net present value of all the cash flows of a project will
break even or will be equal to just zero value. From the
calculations on the capital budgeting sheet of the milestone 3,
the IRR of the project is 34% meaning that the company’s
investments will need to grow at a rate of 34% to equal the
initial outlay, which is way much higher than the interest rate in
the market.
2. Implications of the Calculations
One of the implications of the calculations of the net present
value calculations of the project is that it reduces that amount
of cash flows for the project. Net present value calculations
discount the amount of funds that will be received in future
using the interest rate of the company. In this context, the
amount is discounted because of the effect of time on the money
received b a company. Another aspect of the net present value is
that it enables the management of the company anticipate what
the company will receive in future and take into account the
inflows and outflows when making decisions (Peterson &
Fabozzi, 2014).
On the other hand, internal rate of return provide a metric in
capital budgeting for measurement of the profitability of a
project with the given investments. The 34% internal rate of
return mean that the company will require to grow its
investments or the compound the investments by 34% in order
to enable the company make the investment. A high internal rate
of return is desirable when the company want to undertake the
project. I would recommend the company to reject the project
since it provides a negative net present value meaning that it
will not be able to repay the initial outlay of funds in the
company. In this context, the company will only be able to
make cash flows, which are positive but not able to recover its
outlay. Regardless of the fact that the IRR of the company is
high, which is good for any investment, the net present value
does not do any good to the project (Peterson & Fabozzi, 2014).
Difference between NPV and IRR
Net present value uses the market interest rate to discount
the cash flows of the company showing the real money value
that will be received by the company over time. The company
uses the net present value to evaluate the project because the
amount received today may be worth more in future or the value
that is anticipated to be received in future is worth much less at
the present time. On the other hand, internal rate of return is the
rate at which the net present values of the company will be just
3. equal to zero. To assess the project, it is important to use the
internal rate of return of the company because it shows the real
rate of growth of the investments regardless of the amount of
future cash flows.
References
Peterson, P., & Fabozzi, F. (2014). Capital Budgeting: Theory
and Practice. Hoboken, NJ: John Wiley & Sons.
FIN 550 Homework Guidelines and Rubric
This course uses homework problems to demonstrate
competence and allow for practice with calculations unique to
finance. Complete all your calculations in
the Homework Student Workbook. Then summarize your
findings and discuss the implications of the findings for the
business or potential business transaction.
Follow the instructions for each question in Modules Three and
Five and complete the assigned work.
Guidelines for Submission: Each homework assignment must be
submitted as a 1-page Microsoft Word document with double
spacing, 12-point Times New
Roman font, and one-inch margins. Any sources should be cited
according to APA style. In addition, your Homework Student
Workbook must be submitted to
demonstrate all calculations.
Critical Elements Proficient (100%) Needs Improvement (70%)
Not Evident (0%) Value
4. Accuracy of
Calculations
Includes detailed calculations, including
demonstration of each step taken to
accurately complete the problem
Includes calculations that are inaccurate
and/or does not include all of the steps
needed
Includes calculations that are inaccurate
and does not provide an explanation of
calculations
45
Analysis: Implications Includes an explanation of the
implications of the findings for the
business and/or potential business
transaction
Explains the implications of the findings,
but there are inaccuracies or explanation
is insufficient
Does not include an explanation of the
findings
45
Articulation of
Response
Submission has no major errors related to
citations, grammar, spelling, syntax, or
5. organization
Submission has major errors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main ideas
Submission has critical errors related to
citations, grammar, spelling, syntax, or
organization that prevent understanding
of ideas
10
Earned Total 100%
http://snhu-
media.snhu.edu/files/course_repository/graduate/fin/fin550/fin5
50_homework_student_workbook.xlsx
[Type text] [Type text] [Type text]
1
Case Study: Stock Valuation and Bond Issuance
Robert Shulzinsky
Southern New Hampshire University
December 16, 2017
6. The worked stock valuation
A. From the figures provided compute;
1. The new dividend yield if the company increased its dividend
per share by 1.75
Dividends yield is given by the formula =
The above formula or equation based on the dividend yield is
normally used for calculation of the percentage return on stock
in respect to dividends accrued over the period. Generally, the
total return on a stock is termed as the accrued overall
dividends and appreciation of a stock in the specifications.
Moreover, dividends paid for a company is found on the
statement on retained earnings, hence is used to compute
dividends per share.
Dividends Yield Formula
The formula is used by investors who opt to focus on
increasing or declining rate of the dividend yield. On wide
angle, an organization or a firm that is spending less in
dividends in regard to its price probably having problems or
retaining most of a percentage on net income for its
development. When inspecting stock, it is good to consider the
whole company and its net income being retained since
reinvesting on net income would lead to appreciation of the
stock value and the general growth.
7. This formula is of greater interest on investors who
depends mainly on dividends from their normal savings and
investment. Furthermore, lower yield on dividends does not
mean little dividends since the price may substantially be
increased. As illustrated before, a sequence of declining yield
on dividends may only warrant inspection but not immediate
decline of the proposed investment.
The dividend Yield is calculated as= =
2. The dividend yield if the firm doubled its outstanding shares
The dividend on stock and corresponding stock split
generally increase the number of outstanding shares while
others remains constant, the price of stock decreases. Hence, the
price of the stock dilutes further on stock dividend /stock split.
Furthermore, stock split comprises of a decision by the
organization or firm board of directors aimed at increasing the
shares that may be outstanding facilitated by giving more shares
to the general shareholders’. in a 2-for-1 stock split,
each shareholder owning a stock is given an extra share. For
example, if a firm had 10m shares pending before split, it tends
to be holding 20m outstanding shares after (2-for-1 split).
The price of stock is influenced directly by a stock split.
Immediately after split, the price of stock is reduced since the
actual number of outstanding shares goes higher. In the above
2-for-1 split example the actual price would be halved. Hence,
despite the change on the outstanding shares and stock number,
market capitalization pertains i.e. never change.
When or if the company doubled its outstanding shares,
the price of stock will thus be halved, which will be $39.47.
Now dividend Yield will be= =
3. The rate of return on equity (i.e., the cost of stock) based on
the new dividend yield you calculated above
8. The return on equity ratio or ROE is an interest or profit
ratio that evaluates the ability of a company to increase profit
returns from shareholders investments within the firm. On
another case, the return on equity ratio reflects total profit on
each dollar on individual stockholders' equity earned or
generated.
Generally, return on 1 implies that each dollar of normal
stockholders' equity earns 1 dollar on the total net income. It is
an important measure for investors since they opt to see how
effective a fill would use their cash capital to increase net
income generation. It is also an indicator on the effective
management it employs the use of equity financing policy and
terms to finance operations to enhance company growth.
Return on equity ratio = = .
B. What effect would you expect each of the calculations you
performed to have in terms of shareholder value? In other
words, suppose the company’s goal is to maximize shareholder
value. How will each of the situations support or inhibit that
goal? Be sure to justify your reasoning.
Dividends influences the price in stock on the following
discussed three major ways. Basically, when a certain dividend
is paid for, the accrued value is subtracted from the specific
firm’s or organization retained earnings. These earnings are
termed as the total profit accrued or received by a company
after accumulating consecutively over time which has not been
placed to other alternative uses. In simple words, the total
amount of money a firm has in account which can be used to
pay dividends and fund companies projects.
When big firms and companies tend to display dividend
histories, they seem more effective and efficient for investors.
Thus, many investors come in to utilize the advantage the
benefit of stock ownership, definitely the price of stock
naturally shift upwards, hence increasing the belief that the
stock is firm in the market. In case a company releases a higher-
9. than-normal dividend, general public tends to break in and soar.
However, when a firm that analogically pay dividend
issues a lower-than-normal dividend, it may end up to be
perceived as a sign of failure or collapse on the company during
hard times. Honestly it could be, the company's profits
generated are being misused or used for other un necessary
purposes, but in real market's reflection on the situation is
always stronger and influential than the reality. For such
companies, they work hard to pay consecutive dividends for the
sake of avoiding spooking business investors who feel the
investment as darkly, scamming and foreboding.Dividend
Declaration and Distribution
When a dividend is to be distributed, issuing firm first
declare the amount in it plus the date it will be paid. Further,
announces the last date where the free shares can be bought to
receive dividend, namely the ex-dividend date. The date is
conducted in two business days in respect to the date in the
record, i.e. date on which the company reviews the list of its
genuine and trusted shareholders.
The dividend declaration naturally promotes investors to
increase on stock purchases. Since investors are aware and sure
to receive a dividend if they buy more stock prior to ex-
dividend date, they would fully be willing to pay all premiums
required earlier. This poses price increment on stock in within
the days leading to the ex-dividend date. Moreover, the
increment almost equal to amount of the dividend. However, the
actual price variation is based on market activities and is not
influenced by the governing entities.
During the specified ex-dividend date, exchange
decreases the price of the stock to the amount of the dividend to
compensate for the fact that new business investors may not
eligible to receive dividends hence unwilling to pay premiums.
More also, when the market is certainly optimistic about the
stock leading to ex-dividend date, price shifts upwards and
creates thus may be greater than normal dividend value, leading
to a net increase in respect of the automatic decrement. Incase
10. dividend is not large; the decrement may shift unnoticed
because of back and forth in the normal trading. It is established
that many investors buy shares just slightly before the ex-
dividend date and sell again slightly after the date of record.
This tactic fetches more money.
C. To what extent do you feel the company’s dividend policies
support or hinder their strategies? For example, if the company
is attempting to grow, are they retaining and reinvesting their
earnings rather than distributing them to investors through
dividends? Be sure to substantiate your claims.
As to whether a dividend paid to individual shareholders
influences the issuing firm's retained earnings, it primary
depends entirely on type of dividend accrued. Cash dividends
have a straight impact on retained earnings and the general
issuance of stock on the dividends is quite complicated.
If a firm or organization wish to issue dividends to
shareholders and don't have extra cash on hold, it may opt to
use a stock dividend. Any company may also adopt this
alternative as a way of reducing the value of existing shares,
pulling down the price (P/E) ratio and other financial factors.
Similarly called bonus shares, a dividend on stock alters the
firm balance sheet in many ways depending on the issuance
size.
When the shares outstanding figures increases by less than
20 to 25%, dividend is referred to as small. If a small dividend
is suddenly declared, retained earning value on the account is
debited by specific product on the current price of the market
per share, outstanding number of shares and percentage
dividend on stock. This systematic equation yields the bonus
value for specified shares in dollars. In above case, when
company ABC has 1.5m shares outstanding and selling at $50
per share, thus it may or announces a 10% stock dividend, then
retained earnings account is then debited by the calculations
as1,500,000 * 10% * $50, / $7.5 million.
If this was paid in cash dividend, it would be terminating
the desired or above calculation. But since it has not paid any
11. cash / value of the above business remains constant, the figure
is reassigned direct from retained earning account through paid-
in capital final to common stock accounts after issuance of
available bonus shares. Moreover, common stock account
(credit) = product of the total new shares issued * by the par
value per share. The R is then credited as paid-in capital
(reminder).
If shares on above example have a par value of 1 cent, then
amount credited to common stock =1,500,000 * 10% * $0.01,
simply= $1,500. The R= $7,498,500 is credited to the paid-in
capital account (R-reminder). The overall worth of the company
pertains or remains constant, but only assets allocation is
altered.
If stock dividend raises up the number of shares outstanding
in more than 20 to 25%, it is referred as a large dividend hence
the accounting varies slightly. In above case, only par value of
the current shares is debited direct from the retained earning
account more also reassigned to common stock account after the
dividend has been distributed. When a company ABC instead
releases a 50% dividend, the total amount debited from retained
earning account should now be =1,500,000 * 50% * $0.01,
simply= $7,500. This because only the par value in the bonus
shares was taken into the account.
When small stock dividend poses a greater impact on the
retained earning account, the overall credit worth of the
company normally remains constant or un altered by stock
dividends for any available size.
3. Bond Issuance
A. By assuming this company already has bonds outstanding,
calculate the following:
1. The new value of the bond if overall rates in the market
increased by 5%
Assuming this company already has bonds outstanding
· The Par value=$1,000
12. · The Maturity date = 5 years
· The Market interest rate = 8%
· The Annual coupon payment = $80
Present value of a bond = Present Value of the Coupon
Payments (an annuity) + The Present Value of the Par
Value (i.e. Time value of money) = INT = $319.42+$
680.58=$1000.003
Assuming the interest rate increase from 8% to 13%.
New bond value = Present Value of the Coupon Payments (an
annuity) Present Value of the Par Value (time value # money)
given by formula = INT = $281.38+$ 542.76=$824.14
2. The new value of the bond if overall rates in the market
decreased by 5%
Assume the interest rate decrease from 8% to 3%.
New bond value = Present Value of the Coupon Payments (an
annuity) + Present Value of Par Value (time value # money) =
INT = $366.38+$ 862.61=$1228.99
3. The value of the bond if overall rates in the market stayed
exactly the same
The bond value will remain constant if the overall rates in the
market maintain exactly the same/ constant.
Present bond value = Present Value of the Coupon Payments (an
annuity) + Present Value of Par Value (time value # money) =
INT = $319.42+$ 680.58=$1000.003
B. What effect would you expect each of the calculations you
performed to have in terms of the company’s decision to raise
capital in this manner? In other words, for each situation, would
you consider bond valuation to be a viable option for increasing
13. capital? Be sure to justify your reasoning.
The fundamental principle behind bond investing is the
fact that interest rates in market and prices of bonds move in
opposite orientations. Incase market interest rates increases,
prices on fixed-rate bonds drops down. This process generally
referred to as interest rate risk. Based on this phenomenon,
bond valuation seizes from being viable option for continuous
increase in capital. Contrary to this where market interest rates
drop down, the bond prices tend to rise. Hence, interest rate risk
unique and similar to all bonds more also to treasury bonds.
A bond’s maturity and coupon rate generally affect how
much its price will change as a result of changes in market
interest rates. If two bonds offer different coupon rates while all
of their other characteristics (e.g., maturity and credit quality)
are the same, the bond with the lower coupon rate generally will
experience a greater decrease in value as market interest rates
rise. Bonds offering lower coupon rates generally will have
higher interest rate risk than similar bonds that offer higher
coupon rates.
When interest rates in the market falls, the bond value
increase has the bond's fixed interest payments becomes greater
compared to amounts available in current bonds issued at new
interest rates in the market.
References:
1.https://www.sec.gov/investor/alerts/ib_interestraterisk.pdf
2. http://www.financeformulas.net/Dividend_Yield.html
3.http://www.investopedia.com/ask/answers/113.asp
4.http://www.myaccountingcourse.com/financial-ratios/return-
on-equity
5.http://www.investopedia.com/articles/investing/091015/how-
15. TIME VALUE OF MONEY ANALYSIS & CAPITAL
BUDGETING CASE STUDY
Robert Shulzinsky
Southern New Hampshire University
12/1/2017
Q1. Time value of money refers to the notion that money in the
future is not worth than money in the present (CPF Board,
2015). This fact is supported by the idea that money to be
earned in the future will have higher risk than money earned in
the present. Furthermore, money that is earned in the present
can be invested in the present and earn more income than in the
future. This is the core principle of investment in corporate
finance where any amount of money is worth in the present than
in the future.
Using the free cash flow, the business needs to invest the cash
into projects and assets that will yield greater returns as
opposed to leaving the same idle. This leads to the need for
evaluating capital investment using capital budgeting methods.
Capital budgeting methods will use time value of money to
determine the present value and future value of investment
using discounting of money. This will be determined through
the use of the interest rate which will discount the future value
of the cash flows and asset to give the present value. As it is the
case, milestone 1 discounts the free cash flow from page 43 on
16. capital lease payments. The time value of money in the case is
used to calculate the value of the company which is discounted
in the present value to determine a suitable amount that the
company can be bought in the present and in the future. This
helps the company to arrive at an amount which is guided and
sound in terms of judgment used in arriving at the sell price.
Q2. The time value of money is affected by the interest rate. As
it is the case in determining the present value, the higher the
interest rate, the lower the present value whereas it is vice versa
for the future value which increases by increase in the interest
rate (Fabozzi, 2014). The best example is in the case of stock
and bond valuation where the market interest rate increase by
5% leads to a higher future value of the stocks which is given
by the value as 24,624 against the reduction of market interest
by 5% given by 16,428. It is also worth noting that the future
value of a bond increases by the value of the interest rate
whereas the period also affects it by increasing the risk
premium. This means that a bond that has a longer period will
have a higher bond value as compared to the bond which has a
shorter bond period.
With the introduction of risk, a higher interest is the equivalent
premium (risk premium) which is added in order to account for
increased risk. With increased premium, the future value of a
bond increases since risk is factored in to increase the value of
the bond value. With the reduction of interest, the bond value
also decreases. The implication as a company manager is the
need to reduce the time period issued to bonds as well as the
interest rate since the company will be forced to pay higher cash
flows to the bond holders.
Q3. My advice on purchasing the company will be to purchase
the company since the Net present value is positive as well as
the discounted cash flows from the companies in the future is
positive.
17. References
CFP Board Financial Planning Competency Handbook (US
Edition). (2015) (p. 98).
Fabozzi, F. (2014). Duration, convexity, and other bond risk
measures (p. 5). New Hope, Pa.: Frank J. Fabozzi Associates.
FIN 550 Milestone Four Guidelines and Rubric
Overview: For the final project, you will use this case study to
prepare a financial analysis report for Home Depot Inc. You
will include in your analysis the
background calculations and managerial analysis for each of the
following topics: time value of money, stock and bond
valuation, and capital budgeting. You will
also discuss macroeconomic variables that might impact the
company’s financial decision making and strategic objectives.
These topics will be covered over four
milestones to be submitted throughout the course before you
submit the final project. Note that while these elements may
seem separate and unrelated,
together they will present a well-rounded view of the company’s
finances with regard to the topics.
In Milestone Four, you will submit a draft of the
18. Macroeconomic Items section of the final project, along with
your supporting explanations.
Prompt: Provide an explanation of the impact of external factors
on the financial position of Home Depot. Use the designated tab
in the Final Project Student
Workbook to demonstrate the implications of interest rate
changes on at least one of the calculations you performed in one
of the earlier milestones.
Specifically, the following critical elements must be addressed:
V. Macroeconomic Items: The CEO of the company is
convinced that financial analysis should hinge only on what is
happening internally within the
company. Convince him otherwise based on the following:
A. Analyze the implications of interest rate changes on any of
the calculations you performed. Be sure to substantiate your
claims.
B. How might an issue (negative or positive) within the overall
stock market impact the company’s stock valuation numbers,
other financial
variables, or its overall portfolio management? Be sure your
response is supported by evidence.
C. Analyze the impact of any external factor (i.e., external to
the company) discussed throughout the course on the company’s
financial position. Be
sure to justify your reasoning.
Guidelines for Submission: Your paper must be submitted as a
2- to 3-page Microsoft Word document, not including your
calculations, which should be
19. completed in the Final Project Student Workbook. Use double
spacing, 12-point Times New Roman font, and one-inch
margins. Sources should be cited according
to APA style.
http://www.sec.gov/Archives/edgar/data/354950/000035495015
000008/hd-212015x10xk.htm
http://snhu-
media.snhu.edu/files/course_repository/graduate/fin/fin550/fin5
50_final_project_student_workbook.xlsx
http://snhu-
media.snhu.edu/files/course_repository/graduate/fin/fin550/fin5
50_final_project_student_workbook.xlsx
Rubric
Critical Elements Proficient (100%) Needs Improvement (80%)
Not Evident (0%) Value
Macroeconomic Items:
Implications of Changes
Analyzes implications of interest rate
changes, substantiating claims
Analyzes implications of interest rate
changes, but response or substantiation
is cursory or illogical
Does not analyze implications of interest
20. rate changes
30
Macroeconomic Items: Stock
Market
Assesses the impact of an issue within
the overall stock market on the
company’s stock valuation numbers or
any other financial variable, supporting
response with evidence
Assesses the impact of an issue within
the overall stock market on the
company’s stock valuation numbers or
any other financial variable, but response
is cursory, illogical, or weakly supported
Does not assess the impact of an issue
within the overall stock market on the
company’s stock valuation numbers or any
other financial variable
30
Macroeconomic Items:
External Factor
Analyzes the impact of a factor external
to the company on the company’s
financial position, justifying reasoning
Analyzes the impact of a factor external
to the company on the company’s
financial position, but response is
21. cursory, illogical, or weakly supported
Does not analyze the impact of a factor
external to the company on the company’s
financial position
30
Articulation of Response Submission has no major errors related
to citations, grammar, spelling, syntax, or
organization
Submission has major errors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main ideas
Submission has critical errors related to
citations, grammar, spelling, syntax, or
organization that prevent understanding of
ideas
10
Earned Total 100%
FIN 550 Final Project Guidelines and Rubric
Overview
22. The final project for this course is the creation of a financial
analysis report.
Financial analysis involves examining historical data to gain
information about the current and future financial health of a
company. Financial analysis can be
applied in a wide variety of situations to give business
managers the information they need to make critical decisions.
The ability to understand financial data is
essential for any business manager.
For this summative assessment, you will provide a financial
analysis report for Home Depot Inc. based on the data in the
case study provided (see link in prompt).
You will be asked to take the topics that you have covered
throughout the course and display your mathematical and
conceptual mastery of them. You will
conduct background calculations and provide managerial
analysis for the following topics: time value of money, stock
valuation, bond valuation, and capital
budgeting.
The project is divided into four milestones, which will be
submitted at various points throughout the course to scaffold
learning and ensure quality final
submissions. These milestones will be submitted in Modules
Two, Four, Six, and Seven. The final submission will be in
Module Nine.
In this assignment, you will demonstrate your mastery of the
following course outcomes:
investments for ensuring an effective portfolio balance between
23. risk and return
investment option for maximizing shareholder value
financing option for raising adequate capital
by utilizing capital budgeting estimates for ensuring effective
decision making
financial decision making for ensuring alignment with strategic
objectives
Prompt
Using this case study, prepare a financial analysis report for
Home Depot Inc. For your calculations, use the Final Project
Student Workbook, which includes tabs
specific to each milestone. Be sure to include in your analysis
the background calculations and managerial analysis for each of
the following topics: time value of
money, stock and bond valuation, and capital budgeting. Also
include a discussion of macroeconomic variables that might
impact the company’s financial
decision making and strategic objectives. Note that while these
elements may seem separate and unrelated, together they will
present a well-rounded view of
the company’s finances with regard to the topics.
http://www.sec.gov/Archives/edgar/data/354950/000035495015
24. 000008/hd-212015x10xk.htm
http://snhu-
media.snhu.edu/files/course_repository/graduate/fin/fin550/fin5
50_final_project_student_workbook.xlsx
Specifically, you must address the critical elements listed
below. Most of the critical elements align with a particular
course outcome (shown in brackets).
I. Time Value of Money
A. Calculate the following time value of money figures:
1. Calculate the present value of the company based on the
given interest rate and expected revenues over time.
2. Suppose the risk of the company changes based on an internal
event. Recalculate the present value of the company.
3. Suppose that a potential buyer has offered to buy this
company in five years. Based on the present value you
calculated above, what
would be a reasonable amount for which the company should be
sold at that future time?
B. What are the implications of the change in present value
based on risk? In other words, what does the change mean to the
company, and how
would you, as a financial manager, interpret it? Be sure to
justify your reasoning.
C. Based on the future value of the company that you
calculated, and being mindful of the need to effectively balance
portfolio risk with return,
what recommendation would you make about purchasing the
25. company as an investment at that price? Be sure to substantiate
your reasoning.
II. Stock Valuation
A. Based on the figures provided, calculate each of the
following:
1. The new dividend yield if the company increased its dividend
per share by 1.75
2. The dividend yield if the firm doubled its outstanding shares
3. The rate of return on equity (i.e., the cost of stock) based on
the new dividend yield you calculated above
B. What effect would you expect each of the calculations you
performed to have in terms of shareholder value? In other
words, suppose the
company’s goal is to maximize shareholder value. How will
each of the situations support or inhibit that goal? Be sure to
justify your reasoning.
C. To what extent do you feel the company’s dividend policies
support or hinder their strategies? For example, if the company
is attempting to
grow, are they retaining and reinvesting their earnings rather
than distributing them to investors through dividends? Be sure
to substantiate your
claims.
III. Bond Issuance
A. Assuming this company already has bonds outstanding,
calculate the following:
1. The new value of the bond if overall rates in the market
increased by 5%
26. 2. The new value of the bond if overall rates in the market
decreased by 5%
3. The value of the bond if overall rates in the market stayed
exactly the same
B. What effect would you expect each of the calculations you
performed to have in terms of the company’s decision to raise
capital in this
manner? In other words, for each situation, would you consider
bond valuation to be a viable option for increasing capital? Be
sure to justify
your reasoning.
C. To what extent do you feel the company’s bond issuance
policies support or hinder their strategies? For example, if the
company is attempting
to fund operating expenses, refinance old debt, or change its
capital structure, are they issuing sufficient bonds to achieve
these goals? Be sure
to substantiate your claims.
IV. Capital Budgeting Data
A. Suppose the company is considering a potential investment
project to add to its portfolio. Calculate the following items:
1. The net present value (NPV) of the project
2. The internal rate of return (IRR) of the project
B. What are the implications of these calculations? In other
words, based on each of the calculations, and being mindful of
the need to balance
27. portfolio risk with return, would you recommend that the
company pursue the investment? Why or why not? Be sure to
substantiate your
claims.
C. What is the difference between NPV and IRR? Which one
would you choose for evaluating a potential investment and
why? Be sure to support
your reasoning with evidence.
V. Macroeconomic Items: The CEO of the company is
convinced that financial analysis should hinge only on what is
happening internally within the
company. Convince him otherwise based on the following:
A. Analyze the implications of interest rate changes on any of
the calculations you performed. Be sure to substantiate your
claims.
B. How might an issue (negative or positive) within the overall
stock market impact the company’s stock valuation numbers,
other financial
variables, or its overall portfolio management? Be sure your
response is supported by evidence.
C. Analyze the impact of any external factor (i.e., external to
the company) discussed throughout the course on the company’s
financial position.
Be sure to justify your reasoning.
Milestones
Milestone One: Time Value of Money (Section I)
In Module Two, you will submit a draft of the Time Value of
28. Money section of the final project, along with your supporting
explanations. Submit your calculations
on the designated tab of the Final Project Student Workbook
and your supporting explanations as a Microsoft Word
document. This milestone will be graded
with the Milestone One Rubric.
Milestone Two: Stock Valuation and Bond Issuance (Sections II
and III)
In Module Four, you will submit a draft of the Stock Valuation
and Bond Issuance sections of the final project, along with your
supporting explanations. Submit
your calculations on the designated tab of the Final Project
Student Workbook and your supporting explanations as a
Microsoft Word document. This milestone
will be graded with the Milestone Two Rubric.
Milestone Three: Capital Budgeting Data (Section IV)
In Module Six, you will submit a draft of the Capital Budgeting
Data section of the final project, along with your supporting
explanations. Submit your
calculations on the designated tab of the Final Project Student
Workbook and your supporting explanations as a Microsoft
Word document. This milestone will
be graded with the Milestone Three Rubric.
Milestone Four: Macroeconomic Items (Section V)
In Module Seven, you will submit a draft of the Macroeconomic
Items section of the final project, along with your supporting
explanations. Submit your
calculations on the designated tab of the Final Project Student
Workbook and your supporting explanations as a Microsoft
29. Word document. This milestone will
be graded with the Milestone Four Rubric.
Final Project Submission: Financial Analysis Report
In Module Nine, you will submit your financial analysis report
along with your completed Final Project Student Workbook. It
should be a complete, polished
artifact containing all of the critical elements of the final
project. It should reflect the incorporation of feedback gained
throughout the course. This submission
will be graded with the Final Project Rubric.
Deliverables
Milestone Deliverable Module Due Grading
One Time Value of Money (Section I) Two Graded separately;
Milestone One Rubric
Two Stock Valuation and Bond Issuance (Sections II and
III)
Four Graded separately; Milestone Two Rubric
Three Capital Budgeting Data (Section IV) Six Graded
separately; Milestone Three Rubric
Four Macroeconomic Items (Section V) Seven Graded
separately; Milestone Four Rubric
Final Project Submission: Financial Analysis Report Nine
Graded separately; Final Project Rubric
30. Final Project Rubric
Guidelines for Submission: Your financial analysis report
should be 7 to 12 pages, not including a title page and
references page. It should use 12-point Times
New Roman font, double spacing, and one-inch margins. All
citations and references should be formatted according to APA
style. Also submit your completed
Final Project Student Workbook.
Critical Elements Exemplary Proficient Needs Improvement Not
Evident Value
Time Value of Money:
Figures
[FIN-550-01]
Accurately calculates requested
figures (100%)
Calculates figures, but with gaps
in accuracy or detail (70%)
Does not calculate figures (0%) 6.33
Time Value of Money:
Implications
[FIN-550-01]
31. Meets “Proficient” criteria and
demonstrates keen insight into
the interrelationship between risk
and present value (100%)
Analyzes implications of change in
present value based on risk,
justifying reasoning (90%)
Analyzes implications of change in
present value based on risk, but
response or reasoning is cursory
or illogical (70%)
Does not analyze implications of
change in present value based on
risk (0%)
6.33
Time Value of Money:
Future Value
[FIN-550-01]
Meets “Proficient” criteria and
demonstrates keen insight into
using time value of money for
recommending investments
(100%)
Makes recommendation about
purchasing company at future
price, substantiating claims (90%)
Makes recommendation about
purchasing company at future
32. price, but response or
substantiation is cursory or
illogical (70%)
Does not make recommendation
about purchasing company at
future price (0%)
6.33
Stock Valuation:
Calculations
[FIN-550-02]
Accurately calculates requested
figures (100%)
Calculates figures, but with gaps
in accuracy or detail (70%)
Does not calculate figures (0%) 6.33
Stock Valuation:
Shareholder Value
[FIN-550-02]
Meets “Proficient” criteria and
demonstrates keen insight into
the effects of changing financial
variables on shareholder value
(100%)
Analyzes the effects of each
calculation on shareholder value,
justifying reasoning (90%)
33. Analyzes the effects of each
calculation on shareholder value,
but response or reasoning is
cursory or illogical (70%)
Does not analyze the effects of
each calculation on shareholder
value (0%)
6.33
Stock Valuation:
Dividend Policies
[FIN-550-02]
Meets “Proficient” criteria and
demonstrates keen insight into
the relationship between
dividend policies and strategies
for increasing shareholder value
(100%)
Assesses the extent to which
dividend policies support or
hinder company strategies,
justifying reasoning (90%)
Assesses the extent to which
dividend policies support or
hinder company strategies, but
response or reasoning is cursory
or illogical (70%)
Does not assess the extent to
34. which dividend policies support or
hinder company strategies (0%)
6.33
Bond Issuance: Bonds
[FIN-550-03]
Accurately calculates requested
figures (100%)
Calculates figures, but with gaps
in accuracy or detail (70%)
Does not calculate figures (0%) 6.33
Bond Issuance: Raising
Capital
[FIN-550-03]
Meets “Proficient” criteria and
demonstrates keen insight into
the effects of changing market
conditions on decisions to raise
capital (100%)
Analyzes the effects of each
calculation on the company’s
decision to raise capital, justifying
reasoning (90%)
Analyzes the effects of each
35. calculation on the company’s
decision to raise capital, but
response or reasoning is cursory
or illogical (70%)
Does not analyze the effects of
each calculation on the company’s
decision to raise capital (0%)
6.33
Bond Issuance: Bond
Issuance Policies
[FIN-550-03]
Meets “Proficient” criteria and
demonstrates keen insight into
the relationship between bond
issuance policies and strategies
for raising capital (100%)
Assesses the extent to which
bond issuance policies support or
hinder company strategies,
justifying reasoning (90%)
Assesses the extent to which
bond issuance policies support or
hinder company strategies, but
response or reasoning is cursory
or illogical (70%)
Does not assess the extent to
which bond issuance policies
support or hinder company
36. strategies (0%)
6.33
Capital Budgeting Data:
Potential Investment
[FIN-550-04]
Accurately calculates requested
figures (100%)
Calculates figures, but with gaps
in accuracy or detail (70%)
Does not calculate figures (0%) 6.33
Capital Budgeting Data:
Pursuing the
Investment
[FIN-550-04]
Meets “Proficient” criteria and
demonstrates keen insight into
using NPV and IRR to judge
potential investment
opportunities (100%)
Analyzes the implications of each
calculation on the
recommendation to pursue the
investment, substantiating claims
(90%)
Analyzes the implications of each
calculation on the
37. recommendation to pursue the
investment, but response or
substantiation is cursory or
illogical (70%)
Does not analyze the implications
of each calculation on the
recommendation to pursue the
investment (0%)
6.33
Capital Budgeting Data:
Difference
[FIN-550-04]
Meets “Proficient” criteria and
demonstrates keen insight into
using NPV and IRR to judge
potential investment
opportunities (100%)
Accurately characterizes the
difference between NPV and IRR
and explains which would be
chosen for evaluating a potential
investment and why, supporting
reasoning with evidence (90%)
Characterizes the difference
between NPV and IRR and
explains which would be chosen
for evaluating a potential
investment and why, but response
is cursory or inaccurate or
38. evidence is not supportive (70%)
Does not characterize the
difference between NPV and IRR
and does not explain which would
be chosen for evaluating a
potential investment and why
(0%)
6.33
Macroeconomic Items:
Implications
[FIN-550-05]
Meets “Proficient” criteria and
demonstrates keen insight into
the relationship between interest
rate changes and financial
variables in a company (100%)
Analyzes implications of interest
rate changes, substantiating
claims (90%)
Analyzes implications of interest
rate changes, but response or
substantiation is cursory or
illogical (70%)
Does not analyze implications of
interest rate changes (0%)
6.33
Macroeconomic Items:
39. Stock Market
[FIN-550-05]
Meets “Proficient” criteria and
demonstrates keen insight into
the relationship between stock
market fluctuations and financial
variables in a company (100%)
Assesses the impact of an issue
within the overall stock market on
the company’s stock valuation
numbers or any other financial
variable, supporting response
with evidence (90%)
Assesses the impact of an issue
within the overall stock market on
the company’s stock valuation
numbers or any other financial
variable, but response is cursory,
illogical, or weakly supported
(70%)
Does not assess the impact of an
issue within the overall stock
market on the company’s stock
valuation numbers or any other
financial variable (0%)
6.33
Macroeconomic Items:
40. External Factor
[FIN-550-05]
Meets “Proficient” criteria and
demonstrates keen insight into
the relationship between external
factors and a company’s financial
position (100%)
Analyzes the impact of a factor
external to the company on the
company’s financial position,
justifying reasoning (90%)
Analyzes the impact of a factor
external to the company on the
company’s financial position, but
response is cursory, illogical, or
weakly supported (70%)
Does not analyze the impact of a
factor external to the company on
the company’s financial position
(0%)
6.33
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and organization
and is presented in a professional
and easy to read format (100%)
41. Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
(90%)
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
(70%)
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas (0%)
5.05
Earned Total 100%
1 Time Value of MoneyMilestone One: Time Value of Money
(please fill in shaded YELLOW cells, row 6D - 6H)
Explanations:Interest Rate8%FCF (Free Cash Flow) is the net
change in cash generated by the operations of a business during
a reporting period, minus cash outlays for working capital,
capital expenditures, and dividends during the same period. FCF
is a strong indicator of the ability of an entity to remain in
business.
Note: For this part of the Milestone, please use page 43 -capital
lease payments under property.
42. FCF1FCF2FCF3FCF4FCF5Amounts*1006928845739658Pv*(93
1.48)($795.61)($670.79)($543.19)($447.82)Total
Pv*(3388.89)*In millionsInterest Rate (given) - in our scenario
we will use 8% interest rate. This rate is an implicit rate, the
average rate that lease consumers face on the current
market.Pv=FVN/(1+I)^NPV(I,N,0,FV)
2 Stock and Bond ValuationMilestone Two: Stock Valuation
and Bond Issuance (please fill in the shaded YELLOW cells)
Explanations:Cash Dividend - distribution of the corporate
income. They are not expenses and do not appear on Income
Statement.
Note: Part of Statement of Cash Flows. Please be aware that
corporation list 5 years worth of dividends, but only 3 years
worth of dividend yields (Hint: research F-1).
PART I: STOCK VALUATIONDividend from Financial
Statements:YearCash Div/share ($)Dividend YieldStockholder's
Equity (in millions)Stock PriceDividend Yield - annual cash
dividend per share of common stock divided by the market price
of a share of the common stock (Dividend yield = Annual
Dividend/Current Stock Price).
Note: Current Stock Price is not part of the Financial
Statements - calculated using the formula for Dividend
Yield20121.163.28%17,89835.3220131.566.44%17,77724.2320
141.884.79%12,52239.261. Stock Valuation - The new dividend
yield if the company increased its dividend per share by
1.75YearCash Div/Share ($) +1.75Dividend YieldStockholder's
Equity (in millions)Stock PriceStockholder's Equity = Assets -
Liabilities. Equity represents the ownership of a corporation.
Owners are called stockholders because they hold stocks or
shares of the company. The goal of every corporate manager is
to generate shareholder value.
20122.918.24%17,89835.3220133.3113.66%17,77724.2320143.
639.25%12,52239.262. The dividend yield if the firm doubled
it's outstanding sharesReturn on Equity - for this part we will
43. modify and use return on investment instead.
Using the formula: Dividend (+1.75)/+[(new price-old
price)/old price]
Note - for this part, you will need extra price from 2011
YearCash Div/Share ($) Dividend YieldStockholder's Equity (in
millions) -doubledStock
Price20120.581.64%35,79635.3220130.783.22%35,55424.23201
40.942.39%25,04439.26Bonds are a long-term debt for
corporations. In buying a bond, the bond-owner lends money to
the corporation. The borrower promises to pay specified interest
rate during the loan's lifetime and at the maturity, payback the
entire principle. In case of bankruptcy, bondholders have
priority over stockholders for any payment distributions.
Bonds = Debt...............Bondholders = Lenders
Stock=Equity................Stockholders = Owners
3. The rate of return on equity (i.e., the cost of stock) based on
the new dividend yield you calculated aboveYearCash
Div/Share ($) +1.75Stock PriceReturn on
Investment20122.9135.3220133.3124.233.00%20143.6339.264.2
5%Calculation: Please note that for bond calculations, only one
bond is used and we assume February 1, 2015 is the origination
date. The value on financial statements will be considered PV
(Present value). Maturity date is assumed for February 2036 and
payment schedule adjusted to February 1 and August 1.
The following Senior-Note was used from page 44:
5.875% Senior Notes; due December 16, 2036; interest payable
semi-annually on June 16 and December 16
PV (Present Value) = 2,963 million
Our scenario: 5.875% Senior Notes; due February 1, 2036;
interest payable semi-annually on February 1 and August 1
PV (Present Value) = 2,963 million
44. PART II: BOND ISSUANCECurent Bonds from Financial
StatementsPresent ValuePV($2,963)PeriodsN40Semi-annual
payment: 2036-2016 = 20 years *2 = 40
periodsInterestI2.9375Interest paid semi-annually: 5.875%/2 =
2.9375%PaymentsPMT0This bond does not make regular PMT
except for interestFuture ValueFV$9,433.58CALCULATING
FV (please see help on the right hand side)1. The new value of
the bond if overall rates in the market increased by 5%Present
ValuePV($2,963)PeriodsN40InterestI5.4375Please adjust
interest5.875%+5% = 10.875%/2 = 5.4375%PaymentsPMT0FV
(Future Value Calculation) - using Excel FormulaFuture
ValueFV$24,634.04CALCULATING FV (please see help on the
right hand side)Step 1) Select FormulasStep 2) Click on
FinancialStep 3) Select FV - you will see the formula below2.
The new value of the bond if overall rates in the market
decreased by 5%Step 4) Enter the following:Rate - enter as
decimal, no % sign. Example: 4% as 0.04Present
ValuePV($2,963)Nper - number of period. Enter a whole
number. Example 50PeriodsN40Pmt - payment. Our example
does not assume regular payments disbursing
principalInterestI0.4375Please adjust interest5.875%-5% =
0.875%/2 = 0.4375%Pv - Present value. Enter as negative.
Example $1,000 should be -1000PaymentsPMT0Type - leave
blankFuture ValueFV$3,528.32CALCULATING FV (please see
help on the right hand side)3. The value of the bond if overall
rates in the market stayed exactly the same - identical to
CURRENT BOND VALUE from Financial Statements
3 Capital Budgeting DataMilestone Three: Capital Budgeting
Data (please fill in the shaded YELLOW cells)
WACC8%Capital Budgeting Example Set-upACCEPTInitial
investment $65,000,000REJECTStraight-line Depreciation of
20%Initial OutlayCF1CF2CF3CF4CF5Income Tax
@35%($65,000,000)WACC of 8% approximately. (HD WACC
was about 8.83%)Cash Flows
(Sales)$50,000,000$45,000,000$65,500,000$55,000,000$25,000
,000Cash Flow (which in this case are Sales Revenues) are as
45. follows: - Operating Costs (excluding
Depreciation)$38,500,000$38,500,000$38,500,000$38,500,000$
38,500,000CF1: $50,000,000 - Depreciation Rate of
20%(13,000,000)(13,000,000)(13,000,000)(13,000,000)(13,000,
000)CF2: $45,000,000Operating Income
(EBIT)24,500,00019,500,00040,000,00029,500,000(500,000)CF
3: $65,500,000 - Income Tax (Rate
35%)8,575,0006,825,00014,000,00010,325,000(175,000)CF4:
$55,000,00After-Tax
EBIT15,925,00012,675,00026,000,00019,175,000(325,000)CF5:
$25,000,000 +
Depreciation13,000,00013,000,00013,000,00013,000,00013,000
,000Operating CostsCash
Flows($65,000,000)28,925,00025,675,00039,000,00032,175,000
12,675,000CF1: $25,500,000CF2: $25,500,000Select from drop
downs below:CF3:
$25,500,000NPV($21,453,688.38)REJECTCF4:
$25,500,000CF5: $25,500,000IRR34%ACCEPTWACC- why do
we use WACC rate for new projects? If the project doesn’t earn
more percent than WACC, the corporation should abandon the
project and invest money elsewhere.Initial Investment - always
negative. Corporation has to invest money ("lose" it till they
recover it via sales) in order to gain future benefit.
4 Interest Rate ImplicationsMilestone Four: Interest Rate
Implication (please fill in shaded YELLOW cells)
Explanation:We will use Milestone 1 and Time Value of Money
for Milesotne 4 analysis 1. Original Scenario from Milestone 1 -
Time Value of Money using 8%Two cases will be
analyzed:Interest Rate8.00%Lower Interest Rate at 5%Higher
Interest Rate at
15%FCF1FCF2FCF3FCF4FCF5Amounts*11311110810197Pv*(
104.63)(95.16)(85.73)(74.24)(66.02)Total Pv*(425.78)*In
millions2. Change in interest rate and its implications - Lower
Interest Rate (5%)Interest
Rate5.00%FCF1FCF2FCF3FCF4FCF5Amounts*1131111081019
7Pv*(107.62)(100.68)(93.29)(83.09)(76.00)Total
46. Pv*(460.69)*In millions3. Change in interest rate and its
implications - Higher Interest Rate (15%)Interest
Rate15.00%FCF1FCF2FCF3FCF4FCF5Amounts*113111108101
97Pv*(98.26)(83.93)(71.01)(57.75)(48.23)Total Pv*(359.18)*In
millions
SUMMARYSUMMARY TABNote: This process could take up
to 20 secondsTAB 11. Time Value of MoneyTAB 3Capital
Budgeting1006928845739658($65,000,000)$50,000,000$45,000
,000$65,500,000$55,000,000$25,000,000FALSEFALSEFALSEF
ALSEFALSE$38,500,000$38,500,000$38,500,000$38,500,000$
38,500,000TAB 2PART I - Stock
ValuationFALSE$9,785,570.71FALSE50%1.163.28%17,898TR
UETAB 4Interest Rate
Implication1.566.44%17,777TRUE1.884.79%12,522TRUEPAR
T II - Bond IssuanceCurrent Bond
ValueFALSE$9,433.28FALSE$9,433.58New Value
+5%FALSE5.4375TRUE5.4375$24,634.04FALSE$24,634.04Ne
w Value - 5%0.4375TRUE0.4375$3,528.32FALSE$3,528.32
RUN Summary
CLEAR DATA