finacial mgnt

#1 Library Research Assignment

Calculate and analyze financial ratios, make recommendations for improvement in financial performance.

Analyze financial statements, develop cash flow analysis, and pro forma statements.

Use effective communication, team and problem-solving skills to collaborate on a project

500-800 words

Locate a publicly traded U.S. company of your choice. Then, calculate the following ratios for the company for 2014 and 2015:

•Liquidity Ratios ◦Current ratio [current assets / current liabilities]

◦Quick ratio [(current assets – inventory) / current liabilities]

•Asset Turnover Ratios ◦Collection period [accounts receivable / average daily sales]

◦Inventory turnover [cost of goods sold / ending inventory]

◦Fixed asset turnover [sales / net fixed assets]

•Financial Leverage Ratios ◦Debt-to-asset ratio [total liabilities / total assets]

◦Debt-to-equity ratio [total liabilities / total stockholders’ equity]

◦Times-interest-earned (TIE) ratio [EBIT / interest]

•Profitability Ratios ◦Net profit margin [net income / sales]

◦Return on assets (ROA) [net income / total assets]

◦Return on equity (ROE) [net income / total stockholders’ equity]

•Market-Based Ratios ◦Price-to-earnings (P/E) ratio [stock price / earnings per share]

◦Price-to-book (P/B) ratio [market value of common stock / total stockholders’ equity]

You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2014 to 2015, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.

If a ratio decreased from 2014 to 2015, why do you think that it decreased? Is it a good or bad sign that the ratio decreased? Please explain.

If a ratio was unchanged from 2014 to 2015, why do you think that it was unchanged? Is it a good or bad sign that the ratio was unchanged? Please explain.

#2 Assignment Objectives

Apply the time value of money in making financial decisions.

Use effective communication, team and problem-solving skills to collaborate on a project.

400words

The time value of money concept is one of the 3 major principles of the study and practice of financial management. It is used to evaluate potential investments, determine a rate of return on a project, calculate the required payments on a loan or annuity, and estimate a future value of funds currently invested and the present value of funds to be received at some future date. It is imperative that managers at all levels of business have a working knowledge of this topic. In your first task, you have been asked to engage your colleagues in a detailed and documented discussion about the time value of money concept: what it is, why it is important, how it is used, and generally, how the applications to single and periodic payments are computed using various calculation methods and formulas.

In your initial post, identify and recommend at least 1 credible Web site that an investor can visit to find the current market value of market indexes such as the Dow Industrial Averages, and address at least 3 of the following:

•What is the discounted cash flow concept, and why is it essential for financial managers to understand and employ this important concept?

•What are the methods associated with evaluating single or periodic payments, and what is at least 1 application of each?

•Discuss the different methods that can be used to calculate these amounts, and explain how at least 1 of these models can be used.

•How can the time value of money models or formulas be used to determine the rate of return for an investment or the time it will take for a current sum to grow to a desired future amount?

•Discuss the "Rule of 72" and how it can be used to estimate how long it takes for money to double at various rates of return.

•Identify and recommend at least 1 credible Web site that an investor can visit to find the current market value of market indexes such as the Dow Industrial Averages.

Be sure to document your posts with in-text citations, credible sources, and properly listed references

#5Assignment Objectives

Apply the time value of money in making financial decisions.

Evaluate investment opportunities utilizing capital budgeting tools.

Use effective communication, team and problem-solving skills to collaborate on a project.

Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Part 1

Summative Discussion Board

Review and reflect on the knowledge that you have gained from this course. Based on your review and reflection, write at least 3 paragraphs on the following:

•What were the most compelling topics learned in this course?

•How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified?

•What approaches could have yielded additional valuable information?

The main post should include at least 1 reference to research sources, and all sources should be cited using APA format.

Part 2

In this final Phase, you will be learning about the concept of the capital budgeting, the different techniques that are commonly employed in making capital budgeting decision, and how each is calculated. This concept, along with the time value of money concept and the cost of capital, will be employed in addressing the Phase 5 tasks and is related to the tasks that you completed in Phases 2 and 3.

In your initial post, identify and recommend at least 1 credible Web site that discusses the process of calculating the models most commonly used to support capital budgeting decisions, and address at least 3 of the following topics:

•What is the capital budgeting, and what role does it play in long-term investment decisions?

•What are the basic capital budgeting models, and which ones are considered the most reliable and why?

•What is net present value (NPV), how is it calculated, and what is the basic premise of its decision rule?

•What is the internal rate of return (IRR), how is it calculated, and what is the basic premise of its decision rule?

•What is the modified internal rate of return (MIRR), how is it calculated, and what is the basic premise of its decision rule?

•How is the weighted average cost of capital (WACC) employed in capital budgeting decisions, and should it be used for all project regardless of the riskiness of a project?

Be sure to document your posts with in-text citations, credible sources, and properly listed references.