This document provides information about several courses and assignments. It includes a discussion on retirement needs analysis, homework assignments from textbooks, directions for submitting assignments, a company selection process for evaluating companies, a financial ratio analysis assignment, and assigned discussion topics. It also includes a case study on Cyber Software Inc. and issues they are facing with new divisions, and a lack of structure and coordination between teams. The company CEO realizes they need an organizational structure and plan to effectively grow the business.

1. FINC 355
What's Retirement Needs Analysis?
1. Discuss the process of retirement needs analysis including
the various assumptions and steps in the process.
(Small paragraph to answer)
2. Textbook assignment (Homework #1, Ch 1, Ch 2 and Ch 3,
and Ch 4) (See attached)
Textbook link:
http://library.books24x7.com.ezproxy.umuc.edu/toc.aspx?site=V
GX8U&bookID=44797&refid=VGX8U
DIRECTIONS: Here is the Homework #1 Assignment. Use the
Homework #1 Answer Sheet for your responses to the questions.
When you have completed Homework #1 submit the Answer
Sheet to your Homework #1 Assignment Folder. (Answer Sheet
Attached)
Please submit your Homework #1 in MS Word format with the
following file name:
LastNameFirstInitial_Homework01AnswerSheet.docx. For
example, if you name is John Smith, the file name of your
Answer Sheet should be
SmithJ_Homework01AnswerSheet.docx. Please use upper case
letters for all your multiple choice answers. Each homework
assignment will include 20 multiple choice questions.
FINC 440
1. Company Selections
Post your Top30-Rank company selection. Edit the title to be
[Company Ticker Symbol]-[FInitialLName].
Enter your Financial Sector or Private Business Valuation
(Financials-DEF-2013DuffPhelpsReport.pdf) choice in your text
area.
Be sure you check each company's most recent 10k and
morningstar.com to assure management has transparently

2. reported their financial performance to your liking for this
class.
Let me know if you would like to select a company not on the
list and I will help you evaluate it.
Select Companies for Assignments During Course: (1)Each
student needs to select a publicly-traded company from the
Top30-Rank list that will be used for the various short research
evaluation assignments that will be done during the class. Each
student must select a different company; the first student to
select a company gets to use that company. (2) Each student
must select a financial services company or the private business
option for the Company Analysis and Valuation final
assessment due Week 7. Post your Selections in the Week 1 -
Company Selections Discussion Forum.
2. Assignment - Financial Ratio Analysis:
Using the Financial Ratio Analysis Model (from Instructor) and
data from the company 10k, Morningstar.com, or Mergent
financial database (Library), prepare a financial ratio analysis
of the company that you selected. What are the principal
conclusions (strengths and weaknesses) that you derive from
this analysis? (this requires a written analysis: 2-4 pages
w/citations, tables, charts - each table or chart requires 150
word narrative w/thesis, supporting ratio and
conclusion/recommendation)
NOTE: When using the Instructor Model: (1) complete ratio
calculations for use in your Week 1 research paper assignment.
(2) Complete the ranking model with 3 comparable companies
for the Week 3 Ranking Valuation research paper assignment.
3. Assigned Discussion week 1
Actions for 'Assigned Discussion week 1
1. Role of Valuation - Explain the role of valuation in the field

3. of financial management? What are severalexamples of how a
company might use the valuation process?
2. Bias in Valuation and Equity Research – What are the risks
of bias and how concerned should financial managers be about
bias in the process of valuation and equity research? What
specific things can analysts (or students) do to prevent bias
from contaminating valuation and equity research work?
3. Profiting from Valuation Research –It might be observed that
to profit from valuation and equity research, an analyst needs to
assume or believe that markets are inefficient. Do you agree
with that view or is it appropriate to assume that markets are
efficient and that valuation and equity research can be
profitable because they deliver superior insight about future
performance?
4. Present Results of Financial Ratio Analysis - Post the results
of the Financial Ratio Analysis that you prepared for this
week’s assignment that is to be submitted to the Assignment
Folder.
5. Most Important Things Learned – What are the most
important things you learned from the study of this week’s
readings and assignments?

4. Cyber Software, Inc Case Study
Planning and Organizing
Cyber Software, Inc. is a medium size manufacturer of cyber
protection software products. The company has gross sales of
20 million dollars. Expenses are approximately 8 million dollars
leaving an after tax profit of 10 million dollars per annum.
Some of their major clients include local retail businesses as
well as state and municipal governments. One medium sized
client is the Baltimore City Government. Yesterday, the city
found that their website was hacked and credit card information
provided to pay water, sewer, real estate tax, and parking tickets
was accessed. It was suspected that the hacking was part of the
recent attacks by Russian cyber thieves.
Joseph Jackson is the CEO and owner of the corporation.
Fortunately for Jackson the company was able to respond
quickly and only 275 people were affected by the hacking.
However, this was a wake up call for Jackson. He knew that if
he was to continue growing the business he would have to
develop better software as well as fast clean up procedures for
the victims. Jackson felt it was imperative that the company
always remain on the cutting edge of the industry so that his
customers felt safe and trusted the company’s work. He took
pride in the fact that the company has been capable of keeping
his client’s information safe. In reaction to the break in at the
City, and wanting to keep their business moving forward,
Jackson decided that he would set up a separate division to
work on new program development and a third division to focus
on victim clean up and damage control. The third division he
thought would provide a good selling point to potential new
clients as none of his competitors offered this service.
The new development division required the hiring of four new
program developers with extensive cyber security background.
They all had good skills and some had actual experience in

5. helping to uncover a few cyber thieves in the Target incident.
They were creative and motivated to help protect people from
having their property stolen. Knowing the nature of
programmers Jackson did not structure the new development
division so their progress or program approach was left to the
programmers. In fact Jackson, in general, tried to keep the
company as a whole free from a bureaucratic or structured
environment. A year into the project the four programmers
began to diverge so much in their programming approach that it
became extremely expensive and in some ways they were
wasting resources by covering similar ground. Nobody could
agree as to which course was most effective.
In the client customer service division two programmers were
hired as well as two experienced credit specialists, and two
paralegals. Further, the division’s lack of structure has allowed
a few strong personalities to emerge and the individuals cannot
seem to get along. Like the new development division, customer
service seems to be spinning their wheels in developing
standard procedures and credit protection help for victims.
Also, both divisions were pulling people from their existing
clients to help work on the project. Jackson knew that
interfacing with ongoing work would help but it was ad hoc and
disturbing existing work. Jackson could see that he would have
to rethink his position on structure and “free” work environment
if the company was to continue to grow.
It was time for an organizational structure and plan. A review of
the budget revealed that the company could afford to allocate
$1,500,000 to the operation of the two divisions before they
have a sellable product. Existing salaries and expenses are at
$750,000. This means that they have one year to get viable
projects on the market.

6. Comps-
RankyPeriodABC_EYTTEK_EYFLR_EYFWLT_EYENG_EYJE
C_EYURS_EYABC_ROCEENG_ROCEFLR_ROCEFWLT_ROC
EJEC_ROCETTEK_ROCEURS_ROCE20099.25%7.8%8.3%9.0
%4.6%8.5%7.3%-
25.0%6.5%31.7%30.0%24.3%23.6%35.6%Rank1542736762345
120107.73%7.9%9.3%10.3%8.8%8.6%7.3%36.2%-
32.7%12.9%16.8%15.9%17.7%37.4%Rank652134727645312011
7.26%7.2%8.3%9.6%15.7%7.8%9.8%21.0%-
8.2%21.7%18.7%17.8%22.1%-
14.6%Rank6743152362451720127.5%7.6%8.2%9.2%9.6%7.9%
6.3%54.8%-
46.7%17.6%19.8%17.9%22.9%22.4%Rank65321471764523Tota
l19221381216221326161519111256312463754612ABCTTEKFL
RFWLTENGJECURSGrand Total32332923383534Rank by EY -
ROCE3421765Price/Earnings14.614.913.8014.412.7Price/Book
1.83.3212.82.11.90.8Price/Sales0.70.510.30.70.3Price/Cash
Flow11.316.217.74.315.95.820134.4%8.2%9.4%14.38.2%6.3%-
0.83.4%6.5%3.8%43.9%7.2%-
0.025.7%16.4%18.0%2.7%26.6%Rank2014
[TTM]5.4%7.3%7.5%0.27.4%7.4%RankGreat Grand TotalRank
by EY - FCFY - ROCEEV/EBIT Ratio by Sector[Industrial
Services | Engineering & Construction]
R-T: Damodaran, Value Multiples by Sector [ev/ebit(DA) ratio]
list:
http://people.stern.nyu.edu/ADAMODAR/New_Home_Page/data
file/vebitda.html12.5210.4212.52Earnings Yield
[EBIT/EV]ROCE [EBIT/CE]FCF Yield [FCF / MV]Market
Value-MV [EBIT * EV/EBIT Ratio]Interest-bearing debt
[ST+LT]Excess Cash [Cash-(Rev * 5%)]Enterprise Value-EV
[MV + Debt - Excess Cash]Capital Employed-CE [Cash + AR +
INV - AP + NFA]
Comps Rank
GrandTotal ABC TTEK FLR FWLT ENG JEC URS 32
33 29 23 38 35 34 Rank by EY-FCFY-ROCE

7. 3 4 2 1 7 6 5
Top30-RankSymbolADMSANIKSelect a Top30-Rank Company
and (Financial Sector Firm or Private Business "DEF"), look-up
the ticker symbol, find the most recent company 10k. Peruse the
10k for complete financials and #of shares outstanding for the
last 5 years.
Reasons to not choose a company from the list for this class:
-company is in the process of /or has recently completed Merger
or Acquisition
-financial statements show great variation due to an "event"
-you don't like the industry, etc.
-ask me if you have a company that is not on the list that you
want to use
-don't use a company you have studied before [see Student
Honor
Code].APOLAGXAVIDBCORCSCOCOHDLXDEPOEBIXGME
Where did I get the list?
www.magicformulainvesting.com
Top 30 companies w/market value of at least
$218mmIQNTIDCCKINGLQDTMSBWhat's the best company to
study for this class?
Your favorite industry with a company that pays a dividend and
has only a couple of active divisions or
products.NSRPDLIPFMTPETSRPXCSPOKTTWOVECVIABWT
WWILN
FinancialCompany nameSymbolCurrency Market cap P/E
ratio 52w price change (%) Return on assets
(5 yr avg) (%) Operating margin (%)Alliance Financial
Corporation ALNC$227.11M24.6559.740.820.85Annapolis
Bancorp,
Inc. ANNB$53.71M19.71145.640.3127.49CommerceFirst
Bancorp, Inc. CMFB$24.87M13.855.050.5926.66Community
Financial Corp. CFFC$27.26M20.42115.520.1913.06Fremont
Michigan InsuraCorp

8. Inc FMMH$64.35M24.3967.674.795.64Healthspring
Inc HS$3.74B13.780.989.428.24New England Bancshares,
Inc. NEBS$79.74M17.5636.080.3926.83Presidential Life
LLC PLFE$413.69M15.3938.140.6214.75Seabright Holdings
Inc SBX$249.48M23.6431.011.54.37Google FinanceStock
screenerAll US Exchanges | Financial SectorCriteriaMarket
cap2m to 3.75bP/E ratio1 to 25Div yield (%)0 to 2052w price
change (%)-65 to 567Return on assets (5 yr avg) (%).05 to
24.9Operating margin (%).05 to 93
Sheet3
FINC 355: RETIREMENT AND ESTATE PLANNING
HOMEWORK #1 ANSWER SHEET
DIRECTIONS: Here is the Homework #1 Answer Sheet that you
should submit to your Homework #1 Assignment Folder.
Please submit your Homework #1 in MS Word format with the
following file name:
LastNameFirstInitial_Homework01AnswerSheet.docx. For
example, if you name is John Smith, the file name of your
Answer Sheet should be
SmithJ_Homework01AnswerSheet.docx.
If you have any questions or comments, please do not hesitate
to contact me.
NAME: _____________________________________
Question Number
Answer
1

9. 2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

10. 20
1
FINC 355 RETIREMENT AND ESTATE PLANNING
HOMEWORK #1
1
DIRECTIONS: Here is the Homework #1 Assignment. Use the
Homework #1 Answer
Sheet for your responses to the questions. When you have
completed Homework #1
submit the Answer Sheet to your Homework #1 Assignment
Folder.
Please submit your Homework #1 in MS Word format with the
following file name:
LastNameFirstInitial_Homework01AnswerSheet.docx. For
example, if you name is John
Smith, the file name of your Answer Sheet should be
SmithJ_Homework01AnswerSheet.docx.
Number
Questions

11. 1 Howard Stein is 65 this year and his wife, Gertie, is three
years
younger. They were married a month after Gertie graduated
from high school. She has been a full-time homemaker all of
her adult life. After Howard and Gertie’s youngest child
graduated from college, Gertie devoted 20 hours a week to
volunteer efforts. Howard will begin drawing Social Security
retirement benefits this year. Gertie can receive
a. no benefits because she was never employed outside the
home
b. a mother’s benefit because she has had children
c. a spouse’s benefit equal to 50% of Howard’s primary
insurance amount (PIA)
d. a benefit based on credits earned from her volunteer work
e. a spouse’s benefit equal to less than 50% of Howard’s
primary insurance amount (PIA)
2 Which of the following types of health care is not covered
under
Medicare Part A
a. home health visits
b. hospice care for terminally ill patients
c. physical therapy
d. inpatient hospital care
e. post-hospital extended care

12. FINC 355 RETIREMENT AND ESTATE PLANNING
HOMEWORK #1
2
3 Juan T. B. and I. B. Cool were married 8 years ago. Their
divorce was
finalized this week. At age 65, I. B. is eligible for Social
Security
benefits under Juan’s work record.
a. true
b. false
4 Which of the following is not an advantage of defined benefit
plans?
a. security to participants
b. higher deduction for employer
c. flexibility to offer more in profitable years
d. greater value to older employees
5 Richard Leftin, founder of Leftin Manufacturing, Inc., wants
to
implement a retirement plan that would allow him and the three
managers of his business to set aside up to a fourth of their
earnings from the business in a retirement plan. He does not
want to fund a retirement plan for any of his 50 line workers.
Mr. Leftin should consider a
a. defined contribution plan

13. b. defined benefit plan
c. money purchase plan
d. profit sharing plan
e. nonqualified plan
6 Alice Compton, owner of Fashion Design, wants to offer a
retirement
plan that will give her employees an incentive to maximize their
performance. Alice should consider
a. a defined benefit plan
b. a money purchase plan
c. a profit sharing plan
d. a and b
e. b and c
FINC 355 RETIREMENT AND ESTATE PLANNING
HOMEWORK #1
3
7 Mr. Teague is covered under Medicare Part A. He was
hospitalized on August 10 and discharged on August 15.
Complications set in and he was readmitted to the hospital on
August 25. Which of the following is true?
a. Medicare Part A counts both hospitalizations as part of his
first benefit period

14. b. Because both hospitalizations occurred in the same year,
Mr. Teague need only pay the deductible for the first
hospitalization
c. Medicare Part A will cover only one hospitalization per
calendar year, so his second hospitalization is not covered
d. Medicare Part A will cover both hospitalizations, but Mr.
Teague must pay a deductible for each one
e. Medicare Part A will cover all costs of the first
hospitalization but will require a deductible for the second
hospitalization
8 Mrs. Albright is covered under Medicare Part A. She was
hospitalized
on June 4. She was discharged on June 10. She was
hospitalized again in late September for 5 days. Which of the
following is true?
a. Medicare Part A will cover all costs of the first
hospitalization
but will require a deductible for the second hospitalization
b. Because both hospitalizations occurred in the same year,
Mrs. Albright need only pay the deductible for the first
hospitalization
c. Medicare Part A will cover only one hospitalization per
calendar year, so her second hospitalization is not covered
d. Medicare Part A will cover both hospitalizations, but Mrs.
Albright must pay a deductible for each one

15. e. Medicare Part A will cover all costs of both hospitalizations
because, taken together, Mrs. Albright did not exceed her 60
days of hospitalization per year
9 Dr. I. L. Pullem, Dr. Ben Shur, and Dr. Jana Whitebite, are
dentists.
They have two full-time and one part-time office staff as the
only
employees in a professional corporation. The doctors want to
maximize tax-favored benefits for themselves and lessen
benefits for their employees. They should consider a
a. profit sharing plan
b. defined benefit plan
c. Section 401(K) plan
d. money purchase plan
e. cash balance plan
FINC 355 RETIREMENT AND ESTATE PLANNING
HOMEWORK #1
4
10 Which of the following is the last step when using the seven-
step
planner to determine the required current monthly savings that
will meet a future retirement income objective?
a. calculate retirement cash flow (shortfall or surplus)
b. identify income from current assets

16. c. calculate required savings to fund shortfall
d. adjust income sources for inflation
e. identify fixed income and amounts payable at retirement
11 Which of the following is (are) true regarding entitlement to
Social
Security retirement benefits?
a. an individual must be fully insured to receive Social Security
retirement benefits
b. reduced Social Security benefits are available at age 60
c. age for receiving full Social Security benefits is gradually
being increased to 67
d. a and b
e. a and c
12 April Storm had earned 40 quarters of Social Security
coverage before
she was seriously injured in an auto accident. April was in the
hospital for a month, but then she began working again at her
former place of employment part time. April is entitled to
Social
Security disability benefits.
a. true
b. false
13 Hospice care is covered under Hospital Insurance (Part A)
when the
beneficiary meets all of the following requirements, except

17. a. is eligible for Hospital Insurance benefits
b. is certified by a doctor as terminally ill
c. files a statement electing to waive all other Medicare
coverage for hospice care
d. pays the required deductible
FINC 355 RETIREMENT AND ESTATE PLANNING
HOMEWORK #1
5
14 Which of the following is not an acceptable method for
overcoming a
retirement shortfall?
a. cut back on expenses before retirement
b. invest a large portion of a retirement portfolio in a high-risk
investment to obtain a higher return
c. increase pre-retirement savings
d. retire later
e. tap into home equity
15 Which of the following cannot be accomplished with a
qualified
retirement plan?

18. a. Help employees save for retirement
b. Defer taxes for owners and highly compensated employees
c. Customize benefits for selected executives
d. Help retire employees
e. Create an incentive for employees to be more productive
16 Which of the following is the last step when using the seven-
step
planner to determine the required current monthly savings that
will meet a future retirement income objective?
a. calculate retirement cash flow (shortfall or surplus)
b. identify income from current assets
c. calculate required savings to fund shortfall
d. adjust income sources for inflation
e. identify fixed income and amounts payable at retirement
17 Which of the following would not be included in a retirement
“fact
finder”?
a. balance in profit sharing plan
b. expected Social Security income
c. amounts invested in mutual funds
d. amount of last year’s tax refund
e. client goals and objectives in retirement
18 Dr. Curt N. Short practiced medicine in a general partnership
for 15
years prior to his retirement this year at age 55. Is he eligible
for Medicare benefits this year?
a. yes

19. b. no
FINC 355 RETIREMENT AND ESTATE PLANNING
HOMEWORK #1
6
19 Elsie and her husband Zeb were married 55 years before he
died last year. When Zeb retired at age 65, he began receiving
benefits from Social Security and Medicare Part A. As a life-
long homemaker, Elsie receives spouse benefits from Social
Security. Earlier this year, at age 75, Elsie was in a car
accident, breaking her hip and cracking four ribs. After two
weeks in the hospital, she was transferred to a skilled nursing
facility for 10 more days. After her discharge, a visiting nurse
came by her home once a week. Which of the following
services are covered under Medicare Part A for Elsie?
a. inpatient hospital care only
b. inpatient hospital care and post-hospital extended care in a
skilled nursing facility
c. inpatient hospital care and home health service benefits
d. post-hospital extended care in a skilled nursing facility and
home health service benefits
e. inpatient hospital care, post-hospital extended care in a
skilled nursing facility, home health service benefits

20. 20 Employment after retirement will
a. always result in a loss of all Social Security Benefits
b. result in loss of some or all Social Security Benefits only for
those under normal retirement age who have earnings
above a specified threshold
c. result in loss of $1 of benefits for each $3 of earnings for
those at or older than normal retirement age
d. reduce Social Security earnings only if the worker is under
normal retirement age and self-employed
e. have no effect on Social Security Benefits
Answer: B