Business & Finance HOMEWORK
2 years ago
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BGS301MODULE3CLASSMATEPOSTS.docx
FIN689MODULE3CLASSMATEPOSTS.docx
BGS301MODULE3CLASSMATEPOSTS.docx
Week Three Discussion
Zack Fesperman
1. After reading chapter four, Learning, Fast and Slow I learned that some of the best possible learning situations for the long run are situations that are difficult and challenging as well, these conditions force you to figure out the problem in a generalist point of view. This challenge causes the person learning to work harder to succeed because of the challenge of it, it almost turns it into a sports game mentality. These situations are good examples of far transfer where situations call for knowledge of many different skill sets and broad knowledge traits. For example if a military leader also played chess, it would benefit him in combat due to the fact of the acquired knowledge of strategy as well as team work and even some extent of sacrifice. They traits can help problem solve in tough situations.
2. Some benefits of being a "generalist" and having range are: they are capable or adapting to multiple different situations, are very versatile in being able to learn something from one challenge and be able to apply similar problem solving skills to a completely different challenge. This would lead us into how people with range are more likely to be successful due to their capability to apply themselves and their multiple skill sets to almost any new challenge. Having range vs being a specialist is like being a mechanic that knows how to change tires but not how to fix the engine.
3. One argument that I have heard is that specialist are more suited to handle extremely chaotic issues in their area of expertise because they are use to it and have dealt with it before where as a generalist would have to adapt to the situation and use their problem solving skills to achieve the same goal but it would take longer and sometimes, time is scarce. My counter argument for this would be that yes they are use to that specific situation but what if there was a new factor involved and it was a new challenge they had never dealt with before, then the generalist would probably have the upper hand on adapting and solving the challenge. I learned a lot of valid points in chapter five, like how the doctor had to think outside the box and find a way to not kill the good tissue and only kill the tumor tissue.
Discussion Week 3 Lasers
Kyle Mandrup
One example in which I am able to apply my ability to use far transfer is when it relates to playing new types of games or video games. I have the basic knowledge required to play certain games with a high level of skill, however when playing a new game with friends that aren't as versed in video games as I am, I am able to more easily pick up a new game. I assume the same applies to people that excel at playing sports, learning to play a new sport probably comes easier than it does to someone that refrains from playing many sports. Being a generalist differs greatly from doing well early in school. As we read previously schools have become very good at creating what I would call "book learners". Someone that achieves a perfect grade point average could struggle with starting a business like a lemonade stand. Having a larger set of mildly sharpened skills could prove much more useful later in life and throughout school as the subjects begin to broaden beyond spelling and mathematics. Knowing how to use the expertise that one already has from certain skills, and applying that to other activities is a very powerful tool. One argument against generalism that I have noticed is that failure is not an option, and that mistakes are a sign of failure. The argument against this type of thinking that I noticed in Chapter 5 involves the issue of removing a tumor while also keeping healthy parts still alive. The answer involves "You (the doctor) could direct multiple low-intensity rays at the tumor from different directions, leaving healthy tissue intact, but converging at the tumor site with enough collective intensity to destroy it." (Epstein 105). In this example, rather than attempting to use a high powered laser to destroy the tumor, there would be many attempts, ultimately succeeding by combining all of the attempts. I would argue this makes the point that in life, many mistakes can add up to a success if given enough tries and effort. References Epstein, D. (2019). Range. Penguin US. https://nu.vitalsource.com/books/9780735214491
FIN689MODULE3CLASSMATEPOSTS.docx
Module 3 Discussion Justin Bartlett
Justin Bartlett
Class,
Free cash flow (FCF) is a financial metric that outlines the cash generated by an organization after accounting for capital expenditure (CAPEX) and working capital changes, this is more commonly known as funds that are available for discretionary spending (Conrad, 2023). Companies use FCF several ways, but there are five primary uses, each relating to the organization's financial plan. These uses include:
Investment in growth opportunities: FCF can be reinvested in the business to fund initiatives aimed at expanding operations, investing in research and development, or to purchase other businesses. For example, if an organization wanted to expand their operations by introducing a new product or service, any money the company invested in that endeavor would fall into this category (Fernando, 2024).
Debt repayment: This involves using the organization's FCF to pay down debts. Paying down debt is a great way for an organization to improve their financial health and creditworthiness. This strategy will reduce interest expenses thereby improving the organization's bottom line (Fernando, 2024).
Dividends and stock buybacks: FCF can be used to pay dividends to an organization's shareholders or to buy back shares from shareholders. Paying dividends reward investors while stock buy backs reduce the number of outstanding shares and can help to boost stock prices (Fernando, 2024).
Working capital management: FCF can be used to ensure a sufficient amount of inventory, manage accounts receivable, and cover short term liabilities. This use of FCF allows the organization to foster smooth operations and helps to ensure sufficient liquidity to maintain or improve the market's perception of their financial health (Fernando, 2024).
Emergency reserves and contingency planning: FCF can be used to create and maintain a cash buffer to cover unexpected expenses. These funds would be used to hedge against an economic downturn or operational disruption. Emergency reserves and contingency planning serves as a sort of insurance policy to secure the financial well-being of an organization through uncertain times as were seen during the COVID-19 pandemic (Fernando, 2024).
FCF plays a critical role in any organization's financial plan by influencing investment decisions, informing debt management, managing shareholder returns and outstanding shares, improving operational efficiency, and informing risk mitigation strategies. The effective and efficient use of FCF is an integral part of any company's financial plan and allows them to make decisions in alignment with the company's strategic goals and objectives.
Reference
Conrad, S., CPA. (2023, March 27). What is Free Cash Flow (FCF)? - Definition | Meaning | Example. My Accounting Course. https://www.myaccountingcourse.com/accounting-dictionary/free-cash-flow
Fernando, J. (2024, January 12). Free Cash flow (FCF): formula to calculate and interpret it. Investopedia. https://www.investopedia.com/terms/f/freecashflow.asp#toc-benefits-of-free-cash-flow
Discussion 3: FCF Uses
Keshia Guingab
Free cash flow is the money available for distribution to a company's investors, shareholders, and creditors after the company has made all investments in fixed assets and working capital necessary to sustain ongoing operations (Brigham & Ehrhardt, 2023). There are five uses for free cash flow, which are:
1. Pay interest to debtholders while remembering that the interest expense incurred after taxes represents the company's net cost.
2. Debt Repayment; Reducing debt lowers interest expenses, improves the credit rating, and decreases financial risk.
3. Pay dividends to shareholders; Paying regular dividends can attract and retain investors, signaling financial health and commitment to returning value to shareholders. This is important for the financial plan because it focuses on the importance of shareholder and investor relations.
4. Repurchase stock from shareholders; Share buybacks can reduce the number of outstanding shares, which can increase earnings per share and potentially boost the stock price. This will assist the financial strategy by enhancing shareholder value and optimizing capital structure.
5. Buy short-term investments or other nonoperating assets; These investments, which are not directly related to the company's core operations, can be used through capital expenditures such as new technology or expansion projects. Utilizing FCF for strategic investments is essential for sustaining growth, maintaining competitive advantage, and increasing operational efficiency.
The uses of free cash flow are not just crucial but also interdependent. They are directly related to a company's financial plan and strategy. A company, depending on its goals and focus, may choose to prioritize different uses of the free cash flow. However, all of these uses are vital. For example, a growing company may choose to allocate free cash flow funds to growth initiatives, while a more mature company may prioritize debt repayment, dividends, and repurchasing stocks. By allocating the free cash flow wisely, companies can achieve a balance between rewarding shareholders, investing in growth, and upholding a strong financial position, thereby reaping the benefits of their decisions and responsibilities.
References
Brigham, E. F., & Ehrhardt, M. C. (2023). Corporate Finance: A Focused Approach (8th ed.). Cengage Learning. https://online.vitalsource.com/books/9780357714713
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