This document provides guidelines and a rubric for a final project in a finance course. The project involves conducting a financial analysis of Home Depot Inc. based on provided case study data. Students will analyze topics related to time value of money, stock valuation, bond valuation, and capital budgeting. The project is divided into four milestones to be submitted at various points in the course. Students must address critical elements for each topic, including calculating present and future values, dividend yields, and capital budgeting metrics. They will also discuss how macroeconomic variables may impact the company's financial decisions and strategic objectives. The analysis will demonstrate mastery of learning outcomes involving financial portfolio management, maximizing shareholder value, capital financing and budgeting
SOC-436 Topic 2 Power in America Worksheet Scoring Guide.docx
1. SOC-436 Topic 2 Power in America Worksheet Scoring Guide
REQUIREMENTS:
POSSIBLE
ACTUAL
Instructions:
Complete the “Power in America” worksheet by conducting
research and addressing the questions that follow. You will also
utilize your textbook for this assignment.
Provide a minimum of three to five scholarly sources to support
your content.
While APA format is not required for the body of this
assignment, solid academic writing is expected, and in-text
citations and references should be presented using APA
documentation guidelines, which can be found in the APA Style
Guide, located in the Student Success Center.
This assignment uses a scoring guide. Please review the scoring
guide prior to beginning the assignment to become familiar with
the expectations for successful completion.
You are required to submit this assignment to Turnitin. Refer to
the directions in the Student Success Center.
List the three models of power in America (Chapter 12). In 250-
350 words for each model, delineate the theory and give
examples. Additionally, describe how each theory explains why
unequal levels of power within society needs to be maintained.
Do you agree? Why? Support your conclusions with research.
1) Model 1 (250-350 words)
3. 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 ($)Dividend YieldStockholder's
Equity (in millions)Stock Price(Dividend yield = Annual
Dividend/Current Stock Price).
Note: Current Stock Price is not part of the Financial
Statements - calculated using the formula for Dividend
Yield20121.16017,700,000165714.28571428620131.56012,522,
00015600000020141.8809,322,00094000001. Stock Valuation -
Position of the company's dividend yield when the firm
increases its dividend per share as follow(above) YearCash
Div/Share ($) +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.
20122.91017,700,000165714.28571428620133.31012,522,00015
600000020143.6309,322,00094000002. Dividend yield when
the company decides to double the outstanding sharesReturn on
Equity - for this part we will modify and use return on
investment instead.
Using the formula: Dividend (+1.75)/+[(new price-old
4. price)/old price]
Note - for this part, you will need extra price from 2011
YearCash Div/Share ($) Dividend YieldStockholder's Equity (in
millions) -doubledStock
Price20120.58035,400,000165714.28571428620130.78025,044,
00015600000020140.94018,644,0009400000Bonds are a long-
term debt for corporations. In buying a bond, the bond-owner
lends money to the corporation. The borrower promises to pay
specified interest rate during the loan's lifetime and at the
maturity, payback the entire principle. In case of bankruptcy,
bondholders have priority over stockholders for any payment
distributions.
Bonds = Debt...............Bondholders = Lenders
Stock=Equity................Stockholders = Owners
3. The ROE using the calculated dividend yield from above
(i.e., the cost of stock)YearCash Div/Share ($) +1.75Stock
PriceReturn on
Investment20122.91165,71420133.31156,000,000943.69%20143
.639,400,0002.69%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:
Senior Notes 5.875% ; Payable Dec 16th, 2036; interest is paid
twice annually commencing 16th of June and December.
PV (Present Value) = 2,963 million
Our scenario: 5.875% Senior Notes that are due on 1st of
February, 2036; and the interest due semi-annually on the 1st
of February and August.
PV (Present Value) = 2,963 million
5. PART II: BOND ISSUANCECurent Bonds from Financial
StatementsPresent ValuePV(2,963)PeriodsN40Semi-annual
payment: 2036-2016 = 20 years *2 = 40
periodsInterestI2.94Interest paid semi-annually: 5.875%/2 =
2.9375%PaymentsPMT- 0This bond does not make regular PMT
except for interestFuture ValueFV9,434CALCULATING FV
(please see help on the right hand side)1. New Bond value when
Market rates shoot up by 5%Present
ValuePV(2,963)PeriodsN40InterestI0.054Please adjust
interest5.875%+5% = 10.875%/2 = 5.4375%PaymentsPMT- 0FV
(Future Value Calculation) - using Excel FormulaFuture
ValueFV24,634CALCULATING 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.
New Bond value when Market rates reduce 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
principalInterestI0Please adjust interest5.875%-5% = 0.875%/2
= 0.4375%Pv - Present value. Enter as negative. Example
$1,000 should be -1000PaymentsPMT- 0Type - leave
blankFuture ValueFV16,428CALCULATING 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
follows: - Operating Costs (excluding
6. Depreciation)$25,500,000$25,500,000$25,500,000$25,500,000$
25,500,000CF1: $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)37,500,00032,500,00053,000,00042,500,00012,500,000C
F3: $65,500,000 - Income Tax (Rate
35%)13,125,00011,375,00018,550,00014,875,0004,375,000CF4:
$55,000,00After-Tax
EBIT24,375,00021,125,00034,450,00027,625,0008,125,000CF5:
$25,000,000 +
Depreciation13,000,00013,000,00013,000,00013,000,00013,000
,000Operating CostsCash
Flows($65,000,000)37,375,00034,125,00047,450,00040,625,000
21,125,000CF1: $25,500,000CF2: $25,500,000Select from drop
downs below:CF3: $25,500,000NPV9,785,571ACCEPTCF4:
$25,500,000CF5: $25,500,000IRR50%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*(
105)(95)(86)(74)(66)Total Pv*(427)*In millions2. Change in
interest rate and its implications - Lower Interest Rate
(5%)Interest
Rate5.00%FCF1FCF2FCF3FCF4FCF5Amounts*1131111081019
7Pv*(108)(101)(93)(83)(76)Total Pv*(461)*In millions3.
Change in interest rate and its implications - Higher Interest
Rate (15%)Interest
7. Rate15%FCF1FCF2FCF3FCF4FCF5Amounts*11311110810197
Pv*(98)(84)(71)(58)(48)Total Pv*(359)*In millions
SUMMARYSUMMARY TABNote: This process could take up
to 20 secondsTAB 11. Time Value of MoneyTAB 3Capital
Budgeting11311110810197$65,000,000$50,000,000$45,000,000
$65,500,000$55,000,000$25,000,000TRUETRUETRUETRUET
RUE$25,500,000$25,500,000$25,500,000$25,500,000$25,500,0
00TAB 2PART I - Stock
ValuationTRUE$9,785,570.71TRUE50%1.160.00007%17,700,0
00TRUETAB 4Interest Rate
Implication1.560.000001%12,522,000TRUE1.880.00002%9,322
,000TRUEPART II - Bond IssuanceCurrent Bond
Value5.00%TRUE$9,433.58TRUE$9,433.58New Value
+5%15%TRUE0.054375TRUE5.4375$24,634.04TRUE$24,634.0
4New Value -
5%0.04375TRUE0.4375$16,428.25TRUE$3,528.32
RUN Summary
CLEAR DATA
FIN 550 Final Project Guidelines and Rubric
Overview
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
8. 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
risk and return
investment option for maximizing shareholder value
financing option for raising adequate capital
of corporate investment opportunities
by utilizing capital budgeting estimates for ensuring effective
9. 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
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).
10. 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
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
11. 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%
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
12. 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
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.
13. 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
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
14. 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
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
15. 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
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
16. 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]
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
17. 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
price, but response or
substantiation is cursory or
illogical (70%)
Does not make recommendation
about purchasing company at
future price (0%)
6.33
18. 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%)
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%)
19. 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
which dividend policies support or
hinder company strategies (0%)
6.33
Bond Issuance: Bonds
[FIN-550-03]
Accurately calculates requested
figures (100%)
20. 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
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
21. 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
strategies (0%)
6.33
Capital Budgeting Data:
Potential Investment
[FIN-550-04]
Accurately calculates requested
22. 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
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%)
23. 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
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
24. 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:
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
25. 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:
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%)
26. 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%)
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
27. 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%
FIN 550 Milestone Two 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.
28. For this milestone, you will submit a draft of the Stock
Valuation and Bond Issuance sections of the final project, along
with your supporting explanations.
Prompt: Calculate stock and bond valuations for Home Depot
Inc. and use the results to support your explanations of
shareholder value and increasing capital.
Assess the company’s dividend policies and bond issuance
policies in your explanations. Complete your calculations on the
designated tab of the Final Project
Student Workbook.
Specifically, the following critical elements must be addressed:
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
29. 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%
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.
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
C. To what extent do you feel the company’s bond issuance
30. 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.
Guidelines for Submission: Your paper must be submitted as a
3- to 4-page Microsoft Word document, not including your
calculations, which should be
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.
Critical Elements Proficient (100%) Needs Improvement (80%)
Not Evident (0%) Value
Stock Valuation: Calculations Accurately calculates requested
figures Calculates figures, but with gaps in
accuracy or detail
Does not calculate figures 15
Stock Valuation: Shareholder
Value
Analyzes the effects of each calculation on
shareholder value, justifying reasoning
Analyzes the effects of each calculation on
shareholder value, but response or
reasoning is cursory or illogical
31. Does not analyze the effects of each
calculation on shareholder value
15
Stock Valuation: Dividend
Policies
Assesses the extent to which dividend
policies support or hinder company
strategies, justifying reasoning
Assesses the extent to which dividend
policies support or hinder company
strategies, but response or reasoning is
cursory or illogical
Does not assess the extent to which
dividend policies support or hinder
company strategies
15
Bond Issuance: Bonds Accurately calculates requested figures
Calculates figures, but with gaps in
accuracy or detail
Does not calculate figures 15
Bond Issuance: Raising
Capital
Analyzes the effects of each calculation on
the company’s decision to raise capital,
justifying reasoning
32. Analyzes the effects of each calculation on
the company’s decision to raise capital,
but response or reasoning is cursory or
illogical
Does not analyze the effects of each
calculation on the company’s decision to
raise capital
15
Bond Issuance: Bond
Issuance Policies
Assesses the extent to which bond
issuance policies support or hinder
company strategies, justifying reasoning
Assesses the extent to which bond
issuance policies support or hinder
company strategies, but response or
reasoning is cursory or illogical
Does not assess the extent to which bond
issuance policies support or hinder
company strategies
15
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
33. 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%
SOC-436 Topic 2 Power in America
Complete this worksheet by conducting research and addressing
the questions that follow.
Provide a minimum of three to five scholarly sources to support
your content.
While APA format is not required for the body of this
assignment, solid academic writing is expected, and in-text
citations and references should be presented using APA
documentation guidelines, which can be found in the APA Style
Guide, located in the Student Success Center.
This assignment uses a scoring guide. Please review the scoring
guide prior to beginning the assignment to become familiar with
the expectations for successful completion.
You are required to submit this assignment to Turnitin. Refer to
34. the directions in the Student Success Center.
1. List the three models of power in America (Chapter 12). In
250-350 words for each model, delineate the theory and give
examples. Additionally, describe how each theory explains why
unequal levels of power within society need to be maintained.
Do you agree? Why? Support your conclusions with research.
1.
2.