Category: Finance

What stock markets are the MNC listed on? Give the stock price at the MNC’s year end and explain any fluctuations in price over the past year. Does it appear that the MNC issues stock in foreign countries?

Analysing a Multinational Corporation

QUESTIONS 1 – 3

What stock markets are the MNC listed on? Give the stock price at the MNC’s year end and explain any fluctuations in price over the past year. Does it appear that the MNC issues stock in foreign countries? 5 marks

What are the main currencies that the MNC uses to conduct its international business? Prepare a chart or table showing the direct and indirect quotation of each foreign currency in relation to the home currency of the MNC at the last year-end and the previous one. Also prepare a cross-exchange rate chart for these currencies for the same dates. 8 marks

Illustrate, using diagrams or tables and calculations, how the values of these currencies have changed (appreciated or depreciated) over the past year relative to the MNC’s home currency, and comment on the main reasons for these changes.

The answers to this question will be used in later sections to determine how the firm was affected by changes in the values of these currencies. 10 marks

Once you have read the chapters assigned for this module, write an initial post in which you explain the relationship between TIPS and the consumer price index. What are the benefits and drawbacks of buying TIPS?

Discussion 6-1 Treasury Inflation-Protected Securities

In two to three paragraphs.

Inflation-linked bonds, also known as treasury inflation-protected securities (TIPS), are used to protect against inflation. A good understanding of TIPS is necessary for capitalizing on market opportunities.

Once you have read the chapters assigned for this module, write an initial post in which you explain the relationship between TIPS and the consumer price index. What are the benefits and drawbacks of buying TIPS?

What is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million, if the average interest rate on debt is 8.5% and the marginal tax rate is 35%?

Second Project

An investment project requires a net investment of $100,000. The project is expected to generate annual net cash flows of $28,000 for the next 5 years. The firm’s cost of capital is 12%. Part 1 – Determine the payback period for the project. Part 2 – Determine the payback period accounting for the present value of future cash flow (ie. Present value calculations) Should the project be done? After considering present value is the 100,000 investment recovered in 3-4 years, 4-5 years or over 5 years?

What is the IRR for a project that has a net investment of $14,600 and a single net cash flow of $25,750 in 5 years?

Red Lake Mines, Inc. is considering adoption of a new project requiring a net investment of $10 million. The project is expected to generate 5 years of net cash inflows of $5 million per year. In the project’s sixth, and final, year it is expected to have a net cash outflow of $1 million. What is the project NPV, using a discount rate of 12%?

Zimmer, a manufacturer of modular rooms, plans to expand its operations in Landshut, Germany. The expansion will cost $14.5 million and is expected to generate annual net cash flows of €2.15 million for a period of 12 years and then the operation will be sold for €1 million (net of taxes). The cost of capital for the project is 14%. Using a spot exchange rate of $1.25/€ as the forecast FX rate for the euro for the term of the project, compute the NPV of this expansion project.

Dupree Funds is considering the fees charged by two banks. First America charges a flat rate of $0.11 per payment and First Western requires a balance of $500,000 (that does not pay interest to Dupree foods), plus $.05 per payment. What is the number of payments per year where the costs of the two banks will be equal? Assume Dupree’s cost of funds is 9%.

What is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million, if the average interest rate on debt is 8.5% and the marginal tax rate is 35%?

Jason is interested in finding the breakeven point for a new pump it plans to produce. The price of the pump is $250 and the variable cost ratio is 50% of the price. Jason calculated that the fixed costs will be about $400,000. What is the breakeven point of operations?

Crown Honda purchased one of its most popular motorcycle models for 965,000 yen. The FX rate for the yen was 142 yen per dollar at the time of purchase, but then rose to 171.8 yen by the time payment was made. What was the dealer’s gain or loss on the change in rates?

Seduak has estimated the costs of debt and equity capital for various proportions of debt in its capital structure.

% Debt After-tax cost of debt Cost of equity
0% – 13.0%
10 5.4% 13.3
20 5.4 13.8
30 5.8 14.4
40 6.3 15.2
50 7.0 16.0
60 8.2 17.0

Based on these estimates, determine Seduak’s optimal capital structure

Critically analyse whether the IASB’s revised Conceptual Framework for Financial Reporting definitions of useful information, assets and liabilities, will enhance the usefulness of financial statements.

Critically analyse whether the IASB’s revised Conceptual Framework for Financial Reporting definitions of useful information, assets and liabilities, will enhance the usefulness of financial statements. The essay should draw on the application of IFRS16 Leases in a UK listed company to support the analysis.

How does a health care provider indicate the obligation of providing care under a managed care contract that has been paid in advance?In a publicly traded organization, does the valuation of owners equity represent the worth of the organization to its owners? Explain your answer.

Comparative Summary

Write a 175- to 265-word response to the following:

How does a health care provider indicate the obligation of providing care under a managed care contract that has been paid in advance?
In a publicly traded organization, does the valuation of owners equity represent the worth of the organization to its owners? Explain your answer.

What are the implied warranties?  What are the express warranties?What services does the company provide and under what circumstances.Do you think the consumer is properly protected? Why or why not?

Product Warranty

Look at a warranty for an iPod, a cell phone, or computer.
Consider the following questions:

Identify the parties to the warranty.

Is it covered by the UCC?

What are the implied warranties?  What are the express warranties?

What services does the company provide and under what circumstances.

Do you think the consumer is properly protected? Why or why not?

What happened, why, where do they go from here? The numbers are great – but what’s behind them?Do some research on the company – figure out what you think is most important – are they undergoing an acquisition? do they have a lot of cash? a lot of debt? should the sell off a part of the business?

Carpenter Technonlogy

Here are a few more thoughts on your projects.

The direction is nebulous – on purpose. It’s your story to tell. Here’s my recommended steps.

Do some research on the company – figure out what you think is most important – are they undergoing an acquisition? do they have a lot of cash? a lot of debt? should the sell off a part of the business?

Based on this research – pick the most appropriate ratios.

The ratios exist online (you don’t need to re-create them but that also makes for an interesting paper).

Use the ratios to tell the STORY. What happened, why, where do they go from here? The numbers are great – but what’s behind them?

Two students can pick the same company and tell completely different stories.

Grade: 85% paper, 15% presentation

Calculate the Discounted Cash Flows (DCF) for 10-years and derive the Net Present Value using the uncertain input variables.

Discounted Cash Flow Modelling and Sensitivity and Risk Analysis

For the purpose of this coursework, you are required to do the following:

1. Calculate the Discounted Cash Flows (DCF) for 10-years and derive the Net Present Value using the uncertain input variables. (5 Marks)

2. Perform a single simulation of 10,000 iterations for the NPV model and determine the probability of getting a negative (zero) NPV at 95% Confidence Interval (2 Marks)

3. Perform sensitivity analysis for the NPV output to determine the variable with the largest impact on NPV (Biggest Driver of NPV) using the following:

a) Change in Output. (2 Marks)

b) Regression Coefficient. (2 Marks)

c) Correlation Coefficient. (2 Marks)

2

d) Contribution to Variance. (2 Marks)

Total (15 Marks)

Write a Report to your COO to communicate the findings from your analyses. The report should describe the purpose and result of your analyses

Explain what a full time equivalent is. What is the difference of productive vs. non-productive hours and provide examples for each as it relates to your work environment. Are fixed staff different than variable staff, if so, provide an explanation for the use of both and how they differ?

Nursing Finance

A. List the elements of a strategic plan. B. What are the benefits for strategic management and how it affects your organization along with the trickledown effect to the unit level.

Describe 3 different budget types utilized in healthcare. What type of items fall within each type of budget chosen and how would budget type be applied in your work environment?

The budget process is a timely process that involves input from varying levels in healthcare. Once a budget is put forth by a manager, what are the next steps in the time table that will take place?

Describe the process of a budget submission, negotiation, and approval. What type of justifications can be brought forth for negotiations. Provide 2 examples for justification.

Explain what a full time equivalent is. What is the difference of productive vs. non-productive hours and provide examples for each as it relates to your work environment. Are fixed staff different than variable staff, if so, provide an explanation for the use of both and how they differ?

Why are revenues often ignored in nursing budgets?

Provide 3 examples for areas of measurement for performance budgeting. How can these examples be applied for a nursing unit?

What makes up the largest part of an operating budget for a given unit? Provide examples for 2 expenses that affect the budget and how it could better be controlled.