Category: Finance

August 17th, 2017 Finance Comments Off on Consider a healthcare organization with which you are familiar with and explain the difference between cash and accrual accounting in healthcare setting

Consider a healthcare organization with which you are familiar with and explain the difference between cash and accrual accounting in healthcare setting

our Discussion postings should be written in standard edited English and should follow APA guidelines. Be sure to support your work with specific in-text citationsfrom this week’s Learning Resources.  Refer to the Pocket Guide to APA Style to ensure that your in-text citations and reference list are correct. Initial postings must be 250–350 words (not including references).

Choose one of the following:

  1. The income statement, balance sheet, and statement of cash flows are three major financial statements that present varying snapshots of an organization’s financial position. For this topic discussion, consider a healthcare organization with which you are familiar with and examine the purposes and components of these documents. How they may be utilized within healthcare organizations?
  2. Consider a healthcare organization with which you are familiar with and explain the difference between cash and accrual accounting in healthcare setting. Be sure to include a discussion of the revenue recognition and matching principles.
August 17th, 2017 Finance Comments Off on Government Securities

Government Securities

Quantitative Exercises and Final Project 3: Government Securities

 

Part One: Quantitative Exercises

 

Barbow Enterprises, Inc., is considering an expansion in their operations. One of the first items they want to examine is their cost of capital. According to the accounting department, the following items and their respective costs have been identified:

 

  • The cost of Common Equity: 15%
  • The before tax cost of debt: 12%
  • No Preferred stock

 

They have also calculated the marginal tax rate to be 40% and the stock sells at its book value.

 

Barbow Enterprises Inc.

Balance Sheet
Assets Liabilities and Owners’ Equity
Cash

$240

 Long Term Debt

$2,304
Accounts Receivable

480

 Equity

3,456
Inventories

720
Net P&E

4,320
  Total Assets

$5,760

 Total Liabilities and owners’ Equity

$5,760

 

Required:

 

Calculate Barbow’s after-tax weighted average cost of capital, using the data in the balance sheet above.

 

Deliverable:

 

Use a Microsoft Excel spreadsheet that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.

 

Part Two:  Final Project 3: Government Securities

 

In this part of your Final Project, you will research and analyze current information (that is, within the past two months) on government securities.

 

Step 1: Go to a financial Web site to do your research. The following are three suggested sites, but you may use others. Be sure to cite your sources!

 

 

Step 2: Research current information (within the last two months) on the yields and maturity for:

 

  1. U.S. treasuries
  2. Municipal bonds
  3. Corporate bonds

 

Required:

 

  • Discuss what the pure expectations theory would imply about the yield curve.
  • Compare and contrast the yields and maturities for each of the securities.
  • Discuss which you would hold and why relative to interest rate risk.

 

Deliverables:

 

Your submission may be in a 3–6 page Microsoft Word or Excel document. Include a Microsoft Excel document that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.

August 17th, 2017 Finance Comments Off on Balancing the Benefits and Costs of Debt”

Balancing the Benefits and Costs of Debt”

Please respond to the following:

  • Calculate the expected value of the high and low risk project to MarCher Industries’ stockholders if the firm remains unlevered. Predict which project the stockholders prefer. Justify your prediction.

  • Calculate the expected value of the high and low risk project of MarCher’s stockholders and bondholders, assuming the firm does borrow money to partially finance the purchase of the project. Predict which project the bond holders prefer. Justify your prediction. Predict which project stockholders would prefer. Justify your prediction.

August 17th, 2017 Finance Comments Off on Weighted Average Cost of Capital

Weighted Average Cost of Capital

Purpose of Assignment

Students should understand the mechanics in calculating a company’s weighted average cost of capital using the capital asset pricing model (CAPM) and its use in making financial investments.

Assignment Steps 

Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft®Office website. There are also additional tutorials via the web that offer support for office products. 

Scenario: You work for an investment banking firm and have been asked by management of Vestor Corporation (not real), a software development company, to calculate its weighted average cost of capital, to use in evaluating a new company investment. The firm is considering a new investment in a warehousing facility, which it believes will generate an internal rate of return of 11.5%. The market value of Vestor’s capital structure is as follows: 

Source of Capital

Market Value

Bonds

$10,000,000

Preferred Stock

$2,000,000

Common Stock

$8,000,000

To finance the investment, Vestor has issued 20 year bonds with a $1,000 par value, 6% coupon rate and at a market price of $950. Preferred stock paying a $2.50 annual dividend was sold for $25 per share. Common stock of Vestor is currently selling for $50 per share and has a Beta of 1.2. The firm’s tax rate is 34%. The expected market return of the S&P 500 is 13% and the 10-Year Treasury note is currently yielding 3.5%. 

Determine what discount rate (WACC) Vestor should use to evaluate the warehousing facility project. 

Assess whether Vestor should make the warehouse investment.

Prepare your analysis in a minimum of 700 words in Microsoft® Word.

Use Microsoft® Word tables in the presentation if you choose. 

Show all calculations and analysis in the presentation. 

Format your assignment consistent with APA guidelines. 

Click the Assignment Files tab to submit your assignment.

August 17th, 2017 Finance Comments Off on Assignment 3: Case Study – Dropping Small-Group Insurance Products

Assignment 3: Case Study – Dropping Small-Group Insurance Products

Due Week 6 and worth 100 points

 

 

 

Read Case Study 9 from Multi-Sector Casebook in Health Administration, Leadership, and Management, and respond to the following:

 

 

 

  1. Summary of the major facts

 

Summarize the facts in narrative or outline form. Include the most important and pertinent incidents in the situation. (Do not simply restate the entire case.)

 

 

 

  1. Problem(s)

 

The facts of the case reveal one or more problems that require attention. Indicate at least three problems affecting GreenHealth and explain their importance.

 

 

 

  1. Alternative Solutions and Probable Outcomes

 

Analyze optional courses of action. This is one of the most important parts of the analysis. Remember that a decision not to act or to do nothing is always an alternative. However, doing nothing also has repercussions—sometimes worse repercussions than any other action. Identify three alternatives you would present to the senior leadership team.

 

 

 

  1. Recommended Solution

 

Recommend 1 solution per problem (three recommendations total). Each recommendation should include a justification for the action, how the action would be implemented, and the probable outcome. While some of this information has been included in previous sections, it is still important to present the recommendation in its final form and to justify its selection.

 

 

 

  1. Include two or more references to support your rationale.
August 17th, 2017 Finance Comments Off on Discussion: Coaching and Mentoring Skills

Discussion: Coaching and Mentoring Skills

you have learned how important performance management is for both employees and organizations. You have also explored how important a well-designed performance management program is to ensuring an organization’s success. Part of its success also relies on the ability of the manager to have the skills necessary to effectively work with employees as a mentor (a relationship built on trust, focused on the person and his or her individual growth and career) and a coach (a method of training, focused on an employee’s performance, giving advice, and monitoring progress). Based on a manager’s personal style, there are guidelines available to help with mentoring and coaching employees to successfully meet the short- and long-term objectives in their development plans. These skills will help managers to ensure they are effective in providing the guidance, support, advice, and training necessary so that employees have the confidence to achieve the desired competencies.

 

Post a cohesive and scholarly response based on your readings and research this week that addresses the following:

 

Evaluate the performance management approach that would fit you, as a manager, and your personal style that you believe is most important in executing this role effectively. Why are these important skills for ensuring the success of a performance management program? Justify your response with references to your resources.

 

August 17th, 2017 Finance Comments Off on Financial Research Report

Financial Research Report

Imagine that you are a financial manager researching investments for your client. Use the Strayer Learning Resource Center to research the stock of any U.S. publicly traded company that you may consider as an investment opportunity for your client. Your investment should align with your client’s investment goals. (Note: Please ensure that you are able to find enough information about this company in order to complete this assignment. You will create an appendix, in which you will insert related information.)

The assignment covers the following topics:

  • Rationale for choosing the company in which to invest
  • Ratio analysis
  • Stock price analysis
  • Recommendations
August 17th, 2017 Finance Comments Off on Investment Returns & Risk Premiums Paper

Investment Returns & Risk Premiums Paper

Write a 250-word minimum paper in APA format that discusses average returns, arithmetic vs. geometric averages, and risk premiums. Also, explain how the average investor could benefit by knowing these concepts to assume the least amount of risk.

Be sure to support your work with specific citations from the Learning Resources and any additional sources.

 

Learning Resources

Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2017). Essentials of corporate finance (9th ed.). New York, NY: McGraw-Hill Irwin.

August 17th, 2017 Finance Comments Off on Job Sharing Paper

Job Sharing Paper

Job Sharing Paper

August 17th, 2017 Finance Comments Off on FIN/370 Finance for Business

FIN/370 Finance for Business

Complete the following Questions and Problems from each chapter as indicated.

Show all work and analysis. 

Prepare in Microsoft® Excel® or Word. 

 

A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?

For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?

A proposed new investment has projected sales of $635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depreciation is $54,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income?

Dog Up! Franks is looking at a new sausage system with an installed cost of $540,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $80,000. The sausage system will save the firm $170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?

Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit.

a. What is the variable cost per unit?

b. Suppose NSI incurs fixed costs of $915,000 during a year in which total production is 215,000 units. What are the total costs for the year?

c. If the selling price is $39.99 per unit, does NSI break even on a cash basis? If depreciation is $465,000 per year, what is the accounting break-even point?

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.

Format your assignment consistent with APA guidelines if submitting in Microsoft® Word.