by | Aug 1, 2022 | Finance
Unit I Essay
Instructions
Ratio Analysis
This is your opportunity to play detective and do some financial statement analysis. Please select any publicly traded company. The CSU Online Library has several databases to choose from that are good starting points for your research:
Mergent Online,
Business Insights: Global,
Business Source Ultimate, and
ABI/INFORM Collection.
In addition to using at least one database article or report from the CSU Online Library, you may also use any reliable website, such as the company’s web page.
For the company you select, find the annual report and the financial ratio information for the following ratios:
debt-to-equity,
current ratio,
return on equity,
quick ratio,
working capital ratio,
price earnings ratio, and
earnings per share.
Once you have reviewed the information, write an essay that begins with a brief introduction to your chosen company. Next, explain how the company is doing with respect to the ratios. In one to three sentences, briefly summarize what each of the ratios are telling you about the company. Conclude with how you predict it will do in the future.
Your essay should be at least one page in length. Use APA format to cite and reference all quoted and paraphrased material, including your textbook. Use a minimum of two sources, one of which may be the textbook. Include a title page, introduction, body, conclusion, and references page. An abstract is not required.
by | Aug 1, 2022 | Finance
In this assignment, you will develop an expansionary capital budgeting plan. In order to complete this task, you first need to identify the stakeholder. Start by reviewing the question statements outlined below. Respond to the questions 1-4 in a word document. Then, complete question 5, the capital budgeting plan using Excel.
What do you consider as the most important stakeholder? Is it important for corporations to focus on maximizing shareholder wealth? Explain in your own words where each of the major stakeholders is represented within the financial statements of the corporation. You should be able to discuss at least four major stakeholders at this point. For example, the customers provide sales revenue and are represented within the income statement sales revenue figures.
Assess the relevant cash flows used to form a capital budgeting decision model. For this assignment, focus on an expansionary problem.
Evaluate the cost of capital (WACC) for use in a capital budgeting decision model. Make sure to define each component of the formula. Explain how the resulting cost of capital (WACC) is used within a capital budgeting model. How can the Capital Asset Pricing Model contribute to this analysis? Explain.
Weigh each of the following decision metrics that can be used within a capital budgeting decision model: net present value, internal rate of return, modified internal rate of return, payback period, and discounted payback period. Explain how each metric is formed and discuss the critical value of each when forming conclusions within a capital budgeting decision model. Discuss which method has the strongest basis for being used and under which conditions each might be the preferred method.
Develop a capital budgeting decision model that displays cash flows, cost of capital, and decision metrics (i.e., NPV, IRR, MIRR, regular payback, and discounted payback). Then, form a conclusion based upon the analysis. What are some problems with the payback period? Is NPV better than IRR? Develop your analysis within an Excel spreadsheet-based on this information:
Assume for a project a company’s units sold are 3,500,000 in the year 2019, and they are projected to grow each subsequent year at 5% until the end of the project in year 2023.
Assume each unit will sell for $2.10.
Assume the variable cost of producing each unit is $1.10.
Assume the fixed costs are $100,000 per year
Assume straight-line depreciation of a machine (lasting until the end of the project) with an initial investment in a machine of $500,000 and $0 salvage value
The cost of capital is calculated based upon funding from retained earnings and from debt. The company is assumed to fund itself with 50% debt and 50% retained earnings. The cost of debt capital, rD, is 7%. The cost of capital from retained earnings, rS, is based upon the Capital Asset Pricing Model. The risk-free rate in the market is 5% and the difference between the expected return on the market and the risk-free rate is 5%. The beta of the company is 2.0. The tax rate is assumed to be 40%.
Calculate the project cash flows and apply the decision metrics
Complete a sensitivity analysis in which you reevaluate the model considering the selling price per unit is $1.90, $2.00, and $2.30. Present and comment on the results.
Write your answers to the qualitative questions in a Word document and paste your spreadsheet analyses into the Word document.
by | Aug 1, 2022 | Finance
You will need to calculate the financial ratios needed to determine Johnson & Johnson’s current financial health. Once you’ve calculated these ratios, the results will be used to analyze the business’s current financial position and help them make decisions about how to improve or maintain their financial health. Pay particular attention to working capital management. If liquidity is an issue,
consider how the company will meet its short-term obligations.
All supporting documents are attached the Financial Formulas spreadsheet and the balance sheet, income statement, and cash flow statement from Mergent Online.
by | Aug 1, 2022 | Finance
Hi, I need you to finish this work that I have uploaded. I have written around 6500 words. The topic is Space elevator – concept, technology, financial viability and safety issues. You should focus on project management issues that may arise from a megaproject like this and financial risks associated with a project like this. You should aim to add around 8000 words to finish what I’ve started.
by | Jul 31, 2022 | Finance
[1]. It seems as if there are too many government programs with Fannie Mae and Freddie Mac requiring bailouts at the taxpayer’s expense. Please respond to the following: – What purpose does the FHA Federal Housing Administration serve? – Who does it help? – When did it originate? [2]. VA Guaranteed Loans are very beneficial to military veterans. What is the down payment required by the Veteran’s Administration on VA-Guaranteed Loans? What do you feel is the advantage to the qualified Veteran of the VA-Guaranteed Loan program?
by | Jul 31, 2022 | Finance
Professional Assignment 2PA2 included two parts: Part 1 about evaluating beta and WACC, and Part 2 is about data acquisition in preparation of the CLA2. You need to do both parts to demonstrate your comprehensive evaluation of the company’s opportunity cost as well as your skills in retrieving and organizing historical data on securities for the purpose of portfolio formation. 1.Search Yahoo Finance, or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation. a.Provide these statements in proper format and include a screenshot of the data.b.Retrieve the data on the company’s historical data and calculate annual rate of return by using adjusted closing prices for the past 20 years. using adjusted closing values the past 20 years. c.Using the data on the company’s stock rate of return and the index’s rate of return estimate beta of the corporation. Compare this value with the value stated by the source. d.Retrieve the risk-free rate of return as the annual interest rate of US treasuries. Based on these values estimate the expected annual rate of return of the corporation’s security. Compare your estimate with the expected rate of return as evaluated based on your data in part b.e.Using the financial statements mentioned above estimate the annual rate of interest paid by the corporation (cost of debt). Also, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values that you have found estimate the annual weighted cost of capital (WACC) of the corporation.2.This part of the assignment is in preparation for CLA2. Choose 5 major securities from different industries, among which one can be the one you chose in part 1 of the question, Retrieve the data on the companies’ historical data and calculate annual rate of return for the past 20 years for each security.Please provide the excel working in a separate excel docment but please also embed the excel working in a word document to just have one document for the entire paper.Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary. Provide your work in detail and explain in your own words. Support your statements with six (6) peer-reviewed in-text citation(s) and reference(s).
Requirements: 6-7 Pages | .doc file
