Finance Assignment 6.1

Unit 6 Textbook Problems

Activity Context

This assignment helps you develop the skills to master the following course competencies:

o Apply the theories, models, and practices of finance to the financial management of the firm.

o Evaluate alternative methods of financing a firm in diverse economic environments.

Activity Instruction

To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook.

o Chapter 18, problem 2 (page 574).

o Chapter 19, problem 1, a through d (page 614).

o Chapter 20, problem 4a (page 640).

o Chapter 20, problem 5a (page 641).

You are required to use the textbook problems template in the Resources to complete the problems. This Excel document contains unique details and cells specific to the problems that you must use to derive your solutions. Provide full detail of the process used to reach the solution.

Resources

• u6a1TextbookProblemsScoringGuide.pdf
• cf_template_textbook_problems_Unit_6.xlsx
• U6A1TextbookProblems1.pdf
• U6A1TEXTPROBLEMS.pdf

Internet/Excel Exercises (IEE)

Part1:  Go to https://fred.stlouisfed.org/categories . Under ”Money, Banking, & Finance” select ”Interest Rates” and then select the ”Treasury Bills” then ”3-Month Treasury Bill: Secondary Market Rate”. Describe how this rate has changed in recent months. Using the information in this chapter, explain why the interest rate changed as it did. 1

Part2:   Using the same website, retrieve data at the beginning of the last 20 quarters for interest rates (based on the three-month Treasury-bill rate) and the producer price index for all commodities (under ”Prices”) and place the data in two columns of an Excel. Derive the change in interest rates on a quarterly basis. Then derive the percentage change in the producer price index on a quarterly basis, which serves as a measure of inflation. Apply regression analysis in which the change in interest rates is the dependent variable and inflation is the independent variable (see appendix B for information about applying regression analysis). a. Explain the relationship that you find. b. Does it appear that inflation and interest rate movements are positively related?

In these exercises, you will access the Federal Reserve Database, a link to it is given on page 46. Skip “http://” at the beginning of the link. Type as “research.stlouisfed.org.fred2” .

IEE 2.1: (i) use the monthly data for the last five years; (ii) the producer price index data is the Prices category.

I’ll attached the graph and excel fine so you can analysis based on the questions and the information you have

• fredgraph.pdf
• TB3MS-2.xls

BUS 624 Week 2 Discussion 2

Prior to beginning work on this discussion,

• Review Chapter 6 of the course textbook.

Jones was the attorney for the Town of Smithville. He filed a defamation lawsuit against a newspaper that served the Smithville area and against the writer of that newspaper’s Town Crier column. Jones based his case on statements that appeared in the column. The writer of the column referred to Jones as a “political hatchet man” and as “one of the biggest powers behind the throne in local government.” The writer also asserted that “Jones pulls the strings” and raised the question whether Jones was “leading Smithville to destruction.” What arguments should the defendants make in an effort to avoid defamation liability? Should Jones win his case? Your initial response should be a minimum of 200 words.

Create an India credit risk(default) model, using the data provided in the spreadsheet raw-data.

Create an India credit risk(default) model, using the data provided in the spreadsheet raw-data.xlsx, and validate it on validation_data.xlsx. Please use the logistic regression framework to develop the credit default model.

Hints :

Data description – Please direct them to the video – Default Risk Prediction. After removing variables for multicollinearity, we should try to take at least one variable for creating the model from each of the 4 factors namely –

1) Profitability

2) Leverage

3) Liquidity

4) Company’s size

For Default Risk Estimation, all the variables are bifurcated in different buckets in the categories tab in raw_data file.

Creation of new variables – This is an important step in the project as the company which is the biggest in size, will also have bigger asset size, cash flows, etc. (Hint: We need to think in terms of ratios – Equity to asset ratio, debt to equity ratio, etc)

Dependent variable – We need to create a default variable which should take the value of 1 when net worth is negative & 0 when net worth is positive.

Validation Dataset –  We need to build the model on the raw dataset and check the model performance measures on the validation dataset.

Please find attached the files to be referred.

• You have to submit 2 files      :
1. Business Report not exceeding 3000 words. In this, you need to submit all the answers to all the questions in a sequential manner. Your answer should include detailed explanations & inferences to all the questions. Your report should not be filled with codes.
2. R code file: This is a must and will be used for reference.

Criteria Points

1. Outlier Treatment – Outlier   Treatment

2. Missing Value   Treatment

3. New Variables Creation   (One ration for profitability, leverage, liquidity and company’s size each )

4. Check for   multicollinearity

5. Univariate &   bivariate analysis

6. Build Logistic   Regression Model on most important variables

7. Analyze coefficient   & their signs

8. Predict accuracy of   model on dev and validation datasets

9. Sort the data in   descending order based on probability of default and then divide into 10 deciles  based on probability & check how well the model has performed

• raw_data.csv
• validation_data.xlsx
• details.pptx

Conch Republic Electronics

Week 3 Term Project – Conch Republic Electronics

I think you will find an Excel spreadsheet to be the most effective way of completing this assignment. Use the attached Conch Republic Spreadsheet

Conch Republic Electronics

Conch Republic Electronics is a mid sized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company’s finance department.

One of the major revenue-producing items manufactured by Conch Republic is a personal digital assistant (PDA). Conch Republic currently has one PDA model on the market, and sales have been excellent. The PDA is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current PDA has limited features in comparison with newer models. Conch Republic developed a prototype for a new PDA that has all the features of the existing PDA but adds new features such as cell phone capability. The company has performed a marketing study to determine the expected sales figures for the new PDA.

Conch Republic can manufacture the new PDA for \$200 each in variable costs. Fixed costs for the operation are estimated to run \$4.5 million per year. The estimated sales volume is 70,000, 80,000, 100,000, 85,000, and 75,000 per each year for the next five years, respectively. The unit price of the new PDA will be \$340. The necessary equipment can be purchased for \$16.5 million and will be depreciated on a 5 year straight-line schedule.

Net working capital investment for the PDAs will be \$6,000,000 the first year of operations. Of course NWC will be recovered at the projects end. Conch Republic has a 35 percent corporate tax rate and a 12 percent required return.

Shelly has asked Jay to prepare a report that answers the following questions:

1. What is the IRR of the project?
2. What is the NPV of the project, based on the required rate of return of 12%?
• ConchRepublic2010Hint1.xls

Financial Performance Evaluation

You are writing a book on how to evaluate performance evaluation for a company.

Respond to the following in a minimum of 175 words:

• Explain the use of return on assets (ROA) and the price-to-earnings (PE) ratio in evaluating the performance of a company.
• Write about how to calculate ROA and PE ratio and how market conditions can affect these metrics.
• Share the ROA and PE ratio for a company you are familiar with. What do these metrics tell you about the financial health of the company?

FP/100 Week 5 Assignment

Complete the Investment Planning Proposal. 2-PART ASSIGNMENT SEE ATTACHMENT FOR FULL DETAILS****NO PLAGIARISM ALLOWED***

• WEEK5ASSIGNMENTPART1.doc
• WEEK5ASSIGNMENTPART2.doc

Write a three to four (3 – 4) page paper (900 -1200 words) on leadership development.

Write a three to four (3 – 4) page paper (900 -1200 words) on leadership development.  Include at least two credible outside sources, in addition to the assigned readings in this Unit’s resources . Credible outside sources include peer reviewed journal articles and professional publications. Your paper will discuss the elements of leadership development, what gets developed, how leaders learn, the various methods on how leaders develop.  Include an argument for what process you believe is most effective in developing leaders and also describe the criteria one should use to evaluate if leadership development programs are effective.

Examples of peer reviewed journals include:

• Academy of Management Learning & Education
• Human Resource Management
• Journal of Counseling & Development

Examples of professional journals include:

• McKinsey Quarterly
• Fast Company
• Fortune Magazine
• Forbes
• Inc.

3 Resources should be use included the one below:

Knowledge-Based Management Strategies

Scenario

Knowledge-Based Management (KBM) Systems allows for the health organization to employ new methods of processing and analyzing knowledge. KBM promotes knowledge-based insights to solve problems and aid in decision-making. In healthcare, KBM systems provide a solution for enhancing operations and improving efficiencies.

The long-term care industry is experiencing unprecedented changes and increased oversight. The changes in reimbursement models, accreditation standards, and pay for performance initiatives require skilled leadership in both, the administrator and operations management roles.

As COO of a long-term care facility, you are conducting a training program for newly hired health care administrators and operations managers. Part of your training involves a review of the importance of Knowledge-Based Management strategies in the decision-making process. Prior to the training, you determine that evaluating the use of Knowledge-Based Management can assist in illuminating the importance of employing knowledge-based strategies.

Instructions

Conduct a comprehensive literature review of 10 scholarly journal articles published within the past 10 years on the topic of Knowledge Based Management. Suggested areas of focus include: Key components of knowledge management; Dimensions of knowledge; Processes of knowledge management; the Management of knowledge in the context of operations management; the Importance of knowledge-based management in health organizations; and Knowledge management and organizational strategy.

The purpose of the review is to support your assertions that the use of Knowledge-Based Management Systems will help administrators and operations managers in making key decisions relative to improving operational efficiencies.

Rubric:

Provided a detailed overview of the topic presented that included the current situation and history.

Provided a thorough, detailed data evaluation for each of the selected scholarly sources.

Provided a thorough, detailed data evaluation for each of the selected scholarly sources.

Provided a fully developed conclusion that identified the best sources with detailed explanation.

Organized articles based on a selected method (such as chronologically, by author, different theoretical approaches, etc.).

0

Performance Enhancement

Scenario

You are the new project manager for the operations unit of Charleston General Hospital. The hospital is facing challenges of long wait times at the ED resulting in a high number of patients leaving without being seen (LWBS) and long admission holds in the ED. Upon initial assessment, you determine that the two challenges are related and are caused by inefficiencies in process flow.

Instructions

Develop a process map to evaluate and suggest a redesign of the current challenges. Process maps are graphical depictions of a process. The process map (flow chart) shows the sequence of tasks, decisions, and all other related activities that results from inputs and outputs.

Your map should include a visual illustration of different processes that can be employed by Charleston General to improve the flow of operations in the ED. Attach a summary of the proposed changes reflected in the process map to explain how the changes can improve performance outcomes for the ED.

Rubric:

Process map thoroughly evaluated the selected health organization challenges with strong detail and supporting information and made connections between the identified challenges.

Suggested a detailed redesign of the selected challenge with strong detail and supporting information.

Process map was clearly organized, professional, and easy to read.