Indirect Assessment Methods

Indirect Assessment Methods

Supporting Lecture:

Review the following lecture:

  • Indirect Measures

Before beginning work on this discussion forum, please review the link Doing Discussion Questions Right, the expanded grading rubric for the forum, and any specific instructions for this topic.

Indirect assessment explores how individuals feel or perceive a particular situation. While many faculty and administrators in higher education employ a combination of indirect assessment methods, common choices are surveys, focus groups, and interviews.

From the bullet point list below, select one topic for which you will lead the discussion in the forum this week. Early in the week, reserve your selected topic by posting your response (reservation post) to the Discussion Area, identifying your topic in the subject line. Be specific about your topic so that someone else could select the same bullet point but focus their post differently. By the due date assigned, research your topic and start a scholarly conversation as you respond with your initial or primary post to your own reservation post in the Discussion Area. Make sure your response does not duplicate your colleagues’ responses.

  • Explore the advantages and disadvantages of surveys in terms of cost, ease, and impact on students.
  • Explore the advantages and disadvantages of focus groups in terms of cost, ease, and impact on students.
  • Explore the advantages and disadvantages of interviews in terms of cost, ease, and impact on students.

Additionally, provide a brief paragraph describing a personal or professional experience where you participated in an indirect assessment—survey, focus group, or individual interview—and explain how that experience impacted your understanding of the material this week.

As the beginning of a scholarly conversation, your initial post should be:

  • Succinct—no more than 500 words.
  • Provocative—use concepts and combinations of concepts from the readings to propose relationships, causes, and/or consequences that inspire others to engage (inquire, learn). In other words, take a scholarly stand.
  • Supported—scholarly conversations are more than opinions. Ideas, statements, and conclusions are supported by clear research and citations from course materials as well as other credible, peer-reviewed resources.

******* Please include citations to justify your premises. The general rule is one citation per paragraph.

******Cite from your course text in addition to outside/relevant scholarly resources.

3 Page Essay On Corporate Merger Or Acquisition

You may choose any recent merger or acquisition (within the last 5 years). And analyze the success of the merger or acquisition.

The completed project should include the information listed below.

v Provide an introduction to the companies involved in the merger or acquisition.

v Include the companies’ background information and the reasons for the merger.

v Evaluate the financial statements of both companies (balance sheet, income statement, cash flow statement).

v Evaluate the potential and actual risks that occurred during the merger and what the companies could have done differently to mitigate these risks.

v Discuss the companies’ management of human capital in the merger or acquisition.

v Evaluate the soundness of the company’s financial policies after the merger (e.g., capital structure, debt, leverage, dividend policy, enterprise risk management, and others.) based on the material covered during class.

v Include a synopsis of your findings, including your recommendations and rationale for whether the merger or acquisition was beneficial to both companies and your recommendation on best practices for moving forward.

· This analysis should be at least three (3) pages in length, not counting the title and reference pages.

· Support your findings and recommendations with evidence from the annual report and at least five scholarly sources, industry reports. 

· Use APA 7th edition format to cite and reference all sources, including any websites that were used to access company information.

Organizational Behavior Principals

Assignment Details

To build teams and manage development in an organization, leaders must focus on employee job satisfaction and performance. Understanding the aspects of the organization that bring job satisfaction to employees helps achieve company goals while maintaining employee morale. Leaders must be knowledgeable about supporting the possibility of a work–life balance for their employees.

Read the article titled Korean Air Enhancing Employee Satisfaction, and complete the following questions:

  • Explain how an organization can help develop and build teams to make them productive as a unit.
  • Describe an approach to employee satisfaction from the article.
  • What are some other ways that leaders can increase levels of job satisfaction among employees within an organization?

Case #1 Assignment

CASE: Goods and Services – The Statute of Frauds (Ch. 11), Heilbron Gallivan Rosenstein, LLC

FACTS: A catering business offered holiday (travel) packages, which included entertainment and theological seminars, as well as food. One such package was made available at a resort in New York for the Jewish holiday of Passover. Prior to his stay, Brent Israel agreed via phone to pay Heilbron $25,040 for the Jewish holiday event for his family, including himself. However, Israel did not show up at the resort and did not pay anything. Heilbron sued Israel for breach of contract. Israel argued the contract was not enforceable due to it not being written. His lawyer claimed that because the contract was not in writing, it violated the UCC’s Statute of Frauds.
ISSUE: Is the contract valid? Explain. How do you rule in this case?

1Format of the Case

FACTS:  You must type the case exactly as it appears in the text. Do not edit. It’s important you understand what you are trying to resolve. Do not read between the lines. Read what the summarized case is telling you (the main points of the case—subject matter; business legal terms and concepts; etc).

ISSUE Quality is important in answering your case questions at the end of the case which is the (ISSUE) TYPE THE QUESTIONS EXACTLY AS THEY APPEAR AT THE END OF THE CASE.

DECISION Type one-two sentences naming specifically the company or party that you have decided to support from the issue, and answering any other issue question. DO NOT include legal reasoning here. Be succinct.

LEGAL REASONS:  REQUIRED-You are trying to resolve the ISSUE with legal terms and concepts THAT SUPPORT YOUR DECISION within the LEGAL REASONS.  Use detailed analysis from the business law principles you learned from your textbook chapter readings to answer the (questions-ISSUE) relating to the case.  You are developing an informed answer to a business law problem in answering the case questions. You can quote the text and tie the concept to the case itself–but reference IS VERY IMPORTANT–BE SURE AND TYPE THE TEXT PAGE NUMBERS THAT HELPED SUPPORT YOUR DECISION. (Minus -10 points if you do not type your text page numbers at the end or within the Legal Reasons). You must include ‘Bibliography’ support at the end of the Legal Reasons– document what you used (even if it was just our textbook); otherwise, it’s plagiarism!  The Legal Reasons Section is a major part of the case assignmentA heavy deduction of points would occur for a poorly written and ‘short’ analysis of the legal reasons. Although there is no set requirement for length, this section is the bulk of the assignment. Generally a minimum of 2 to 3 paragraphs (again, minimum) is needed in order to justify your decision.

2. Minimum Requirement:
One (1) full-typed page, single-spaced and follow THE GUIDELINE DIRECTIVES PAGE AND SAMPLE CASE COPY under the EXAMS & ASSIGNMENTS button online. TYPE THE ACTUAL WORDS:  FACTS; ISSUE; DECISION; LEGAL REASONS. While 1 page is a minimum, a good case normally requires at least 1.5 pages.

I need a clear understanding of your decision and support through your analyzed legal reasonsPlease use proper English such as grammar, spelling, etc. in typing the case assignment. Develop two or more paragraphs in detail to support your answer within the LEGAL REASONS. Finish with a works cited (bibliography).

Businesses have to make many financial decisions

Businesses have to make many financial decisions that have a direct impact on operations and the ability to successfully compete in the marketplace. Base your writing on the information from the course coupled with information located in the Strayer databases or Internet.


Write a two to three (2-3) page paper in which you:


  1. Assume that you are financial advisor to a business. Describe the advice that you would give to the client for raising business capital using both debt and equity options in today’s economy. Outline the major advantages and disadvantages of each option.
  2. Summarize the advice that you would give the client on selecting an investment banker to assist the business in raising this capital.
  3. Explain the historical relationships between risk and return for common stocks versus corporate bonds. Explain the manner in which diversification helps in risk reduction in a portfolio. Support response with actual data and concepts learned in this course.
  4. Use at least one (1) quality references. Note: Wikipedia and other Websites do not quality as academic resources. However, you may use data sources, such as Yahoo Finance.


Your assignment must follow these formatting requirements:


  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.


The specific course learning outcomes associated with this assignment are:


  • Describe the characteristics and valuation of stocks and bonds, and how each is a key component in the financing of corporations.
  • Describe the key elements of the securities markets, and how the markets drive financial transactions, decision making, and risk analysis.
  • Use technology and information resources to research issues in finance.
  • Write clearly and concisely about finance using proper writing mechanics.


Write a 2 page reaction paper regarding this book:



Write a “from the gut” reaction of approximately two pages (assuming that it is double spaced, with one-inch margins and 12-point, standard-sized font).Do NOT summarize the reading.Instead, react to it—write about something that grabbed your attention.Maybe some part of the reading made you angry, or satisfied, or confused, or conflicted.I encourage you to be creative with the assignments—for example, write as if you are a city manager, or as if you are debating or writing a letter to the author.Again,do not summarize the reading—react to it.

Wren Manufacturing Is In The Process Of Analyzing

P8–14 Portfolio analysis

You have been given the expected return data shown in the first table on three assets—F, G, and H—over the period 2013–2016.

Expected return

Year     Asset F     Asset G   Asset H

2013       16%           17%         14%

2014       17              16             15

2015       18              15             16

2016       19              14             17

Using these assets, you have isolated the three investment alternatives shown in the following table.

Alternative Investment

1) 100% of asset F

2 )50% of asset F and 50% of asset G

3 )50% of asset F and 50% of asset H

a. Calculate the expected return over the 4-year period for each of the three alternatives.

b. Calculate the standard deviation of returns over the 4-year period for each of the three alternatives.

c. Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives.

d. On the basis of your findings, which of the three investment alternatives do you recommend? Why?


P8–23 Portfolio betas

Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table.

Portfolio weights

Asset       Asset beta    Portfolio A    Portfolio B

1                    1.30                 10%             30%

2                    0.70                 30                 10

3                    1.25                 10                 20

4                    1.10                 10                 20

5                     0.90                 40                20

Totals 100%           100%


a. Calculate the betas for portfolios A and B.

b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?

P9–1 Concept of cost of capital

Wren Manufacturing is in the process of analyzing its investment decision-making procedures. The two projects evaluated by the firm during the past month were projects 263 and 264. The basic variables surrounding each project analysis and the resulting decision actions are summarized in the following table.

Basic variables    Project 263     Project 264

Cost                         $64,000               $58,000

Life                           15 years               15 years

Expected return         8%                       15%

Least-cost financing

Source                     Debt                        Equity

Cost (after-tax)           7%                         16%


Action                       Invest                   Don’t invest

Reason                     8% > 7% cost        15% < 16% cost


a. Evaluate the firm’s decision-making procedures, and explain why the acceptance of project 263 and rejection of project 264 may not be in the owners’ best interest.

b. If the firm maintains a capital structure containing 40% debt and 60% equity, find its weighted average cost using the data in the table.

c. If the firm had used the weighted average cost calculated in part b, what actions would have been indicated relative to projects 263 and 264?

d. Compare and contrast the firm’s actions with your findings in part c. Which decision method seems more appropriate? Explain why.

P9–2 Cost of debt using both methods

Currently, Warren Industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 12% coupon rate. As a result of current interest rates, the bonds can be sold for $1,010 each; flotation costs of $30 per bond will be incurred in this process. The firm is in the 40% tax bracket.

a. Find the net proceeds from sale of the bond.

b. Show the cash flows from the firm’s point of view over the maturity of the bond.

c. Calculate the before-tax and after-tax costs of debt.

d. Use the approximation formula to estimate the before-tax and after-tax costs of debt.

e. Compare and contrast the costs of debt calculated in parts c and d. Which approach do you prefer? Why?

P9–17 Calculation of individual costs and WACC

Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weights: 40% long-term debt, 10% preferred stock, and 50% common stock equity (retained earnings, new common stock, or both). The firm’s tax rate is 40%. Debt The firm can sell for $980 a 10-year, $1,000-par-value bond paying annual interest at a 10% coupon rate. A flotation cost of 3% of the par value is required in addition to the discount of $20 per bond. Preferred stock Eight percent (annual dividend) preferred stock having a par value of $100 can be sold for $65. An additional fee of $2 per share must be paid to the underwriters. Common stock The firm’s common stock is currently selling for $50 per share. The dividend expected to be paid at the end of the coming year (2013) is $4. Its dividend payments, which have been approximately 60% of earnings per share in each of the past 5 years, were as shown in the following table.

Year      Dividend

2012        $3.75

2011          3.50

2010          3.30

2009          3.15

2008          2.85

It is expected that to attract buyers, new common stock must be underpriced $5 per share, and the firm must also pay $3 per share in flotation costs. Dividend payments are expected to continue at 60% of earnings.((Assume that r1+=r5)

a. Calculate the after-tax cost of debt.

b. Calculate the cost of preferred stock.

c. Calculate the cost of common stock.

d. Calculate the WACC for Dillon Labs.

The Pros And Cons Of Investing In A Convertible Bond

1. If the bonds were not convertible, what would they be worth?
2. Since the bonds are convertible, what is their stock value?
3. If the value of the stock rose to $15, what would happen to the value of the bonds?
4. If the price of the stock declined to $5, what would happen to the value of the bonds?
5. If the money were invested in the nonconvertible bonds and the price of the stock changed, what would happen to the value of the bonds?
6. If the price of the stock rose, would the Roussels have to exchange the bonds for the stock?
7. If Mrs. Roussel changed her mind, could she get the principal back?
8. If the company were to fail, what would happen to the bonds?
9. Would buying the bonds be preferable to putting the money in the firm’s stock?
10. Would buying the bonds be preferable to putting the money in a certificate of deposit in a federally insured commercial bank?
11. What are the federal income tax implications of owning convertible bonds? Would putting the bonds in the children’s names result in any tax savings? Given the nature of Mrs. Roussel’s questions, do you believe that the money should be invested in convertible bonds?


Many of your clients own small to medium-sized private businesses. One of your clients, Maurice Roussel, is planning to finance the education of his two children, ages 10 and 12. Currently, neither child has any assets, so Roussel is considering investing a modest amount in convertible bonds in their names with his wife, Lili, as custodian. Lili Roussel has doubts because she does not believe that it is wise to risk their hard-earned money on risky investments. Mr. Roussel believes that the money to be transferred is small enough to risk. Besides, he is fascinated with the convertible bonds issued by UT&T, a large company with a good, if not superior, credit rating.

Learning Team Assignment Strategic Financial Plan

Create the financial portion of the strategic plan. The plan must include 3 years of income statements, balance sheets, and cash flow statements.


Write a memo of no more than 1,050 words that explains the plan’s major assumptions and identifies areas of risk. The memo must include the following:

  • A review of cash flow statements and a recommendation of implementing new short-term working capital strategies on long-term cash flow
  • An explanation of corporate risk mitigation techniques used in capital budgeting
  • An analysis of the effect of a company’s capital structure on strategic financial planning and how it affects risk

Refer to the Mergent Online database available in the University Library for financial plan examples.


Format your memo consistent with APA guidelines.

Capital Budgeting Techniques

As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities.  You have agreed to provide a detailed report illustrating the use of several techniques for evaluating capital projects including the weighted average cost of capital to the firm, the anticipated cash flows for the projects, and the methods used for project selection.  In addition, you have been asked to evaluate two projects, incorporating risk into the calculations.

You have also agreed to provide an 8-10 page report, in good form, with detailed explanation of your methodology, findings, and recommendations.

Company Information

Wheel Industries is considering a three-year expansion project, Project A.  The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the project will generate additional revenues of $1.2 million per year before tax and has additional annual costs of $600,000.  The Marginal Tax rate is 35%.


  1. Wheel has just paid a dividend of $2.50 per share. The dividends are expected to grow at a constant rate of six percent per year forever. If the stock is currently selling for $50 per share with a 10% flotation cost, what is the cost of new equity for the firm? What are the advantages and disadvantages of using this type of financing for the firm?
  2. The firm is considering using debt in its capital structure. If the market rate of 5% is appropriate for debt of this kind, what is the after tax cost of debt for the company? What are the advantages and disadvantages of using this type of financing for the firm?
  3. The firm has decided on a capital structure consisting of 30% debt and 70% new common stock. Calculate the WACC and explain how it is used in the capital budgeting process.
  4. Calculate the after tax cash flows for the project for each year. Explain the methods used in your calculations.
  5. If the discount rate were 6 percent calculate the NPV of the project. Is this an economically acceptable project to undertake? Why or why not?
  6. Now calculate the IRR for the project. Is this an acceptable project? Why or why not? Is there a conflict between your answer to part C? Explain why or why not?


Wheel has two other possible investment opportunities, which are mutually exclusive, and independent of Investment A above.  Both investments will cost $120,000 and have a life of 6 years. The after tax cash flows are expected to be the same over the six year life for both projects, and the probabilities for each year’s after tax cash flow is given in the table below.

Investment B
Investment C
Probability After Tax
Cash Flow
  Probability After Tax
Cash Flow
0.25 $20,000   0.30 $22,000
0.50   32,000   0.50   40,000
0.25   40,000   0.20   50,000


  1. What is the expected value of each project’s annual after tax cash flow? Justify your answers and identify any conflicts between the IRR and the NPV and explain why these conflicts may occur.
  2. Assuming that the appropriate discount rate for projects of this risk level is 8%, what is the risk-adjusted NPV for each project? Which project, if either, should be selected? Justify your conclusions.