professional experience

Using the scenario from lecture two discuss the advantages and disadvantages of scope management in a project. Consider what is necessary to maintain clear delineation of a project. If you have the personal or professional experience that illustrates yo Using the scenario from lecture two discuss the advantages and disadvantages of scope management in a project. Con Using the scenario from lecture two discuss the advantages and disa Using the scenario from lecture two discuss the advantages and disadvantages of scope management in a project. Consider what is necessary to maintain clear delineation of a project. If you have the personal or professional experience that illustrates your point, please share this example with us to provide a greater understandingdvantages of scope management in a project. Consider what is necessary to maintain clear delineation of a project. If you hav Using the scenario from lecture two discuss the advantages and disadvantages of scope management in a project. Consider what is necessary to maintain clear delineation of a project. If you have the personal or professional experience that illustrates your point, please share this example with us to provide a greater understandinge the personal or professional experience that illustrates your point, please share this example with us to provide a greater understandingsider what is necessary to maintain clear delineation of a project. If you have the personal or professional experience that illustrates your point, please share this example with us to provide a greater understandingur point, please share this example with us to provide a greater understanding

Directions:

Select either an international service organization or a multinational corporation and conduct a preliminary assessment of their website.

In your review:

  • Explain your initial impression of the organization based upon your initial review of their corporate website.
  • Analyze their Vision, Mission and Goals  in reference to the company’s competitive strategy, branding and messaging
  • Analyze the company’s strategic approach to globalization and their approach to competition, sustainability, CSR, marketing, analysis (external, internal, industry), and cross border issues
  • Examine the company’s financials included in their most recent annual report and review the profit margin statement from the CEO. What conclusions can you draw from their financial statements?
  • Evaluate the firm’s Corporate Ethics and Corporate Social Responsibility Policy. What expectations are presented in the policy? Explain the tangibility of the company’s policies
  • Include an organizational assessment using SWOT or Porter’s Five Forces
  • Explain the company’s capacity to be able to fulfill strategic missions while increasing profit margin
  • Include an Introduction and Summary statement in your review.

Your paper should be between 7 -10 pages in length, in correct APA format and use 4-5 outside sources.

Bond Market Data

Websites for bond information:

FINRA Bond Market Data
www.finra.org/marketdata
Yahoo Finance:
http://finance.yahoo.com/bonds

Q3. The third step is to estimate a second stage (also called the stable stage) growth rate in dividends, g2, for use in the Two-Stage DDM. Your estimate for g2 should not be greater than the expected future growth in the overall economy (expected growth in GDP). Why? LIST your estimate for g2 and EXPLAIN your reasoning.

Q4. LIST KO’s current dividend (dividend just paid) and use this value as D(0) in the Two-Stage DDM.

Q5. SHOW your calculations and LIST your value (price per share) estimate for KO using the Two-Stage DDM.

Q6. Perform Sensitivity Analysis (SA) on your estimated price per share in by varying both your expected growth rates and discount rates by +/- 2.0 percent in .5 percent increments while holding one of the two parameters (growth or discount rate) constant. DISCUSS your results. That is, describe in words how your value estimates change as you change your growth and discount rate estimates.

International Finance

Report Issue

FIN 350, International Finance

In Class Problems –Currency Derivatives

 

1.   Winston Toys, a U.S. based firm distributes toys in Europe and expects to receive 750,000 EUR in three months. Winston is considering a put option (XDE) to sell those receivables in three months. Put option with a strike price of $1.30 and expiration in three months is available for Euros at a premium of 2.04 USD. Winston will incur a financing cost at the rate of 4.5% per year for any premium that needs to be paid for the option.

 

Winston has prepared the following probability chart for values of the EUR in the next three months.

 

(a)  Calculate the net cash flow in each scenario if Winston hedges using the put option.

 

Possible Value Probability Net Cash Flow
1.25 25%  
1.30 25%  
1.35 20%  
1.40 15%  
1.45 15%  

 

 

(b)  What is the mean and standard deviation of net cash flows without hedging, and what is it after hedging?

(You can use your financial calculator for this purpose)

Review the learning outcomes for this course

Critically reflect on what you have learned through your involvement in general education courses. Review the learning outcomes for this course:

Apply ethics and moral reasoning to academic knowledge and societal concerns.
Apply the principles of critical thinking to contemporary issues.
Exhibit clear communication skills through investigative research and writing.
Utilize information technology skills appropriate to interdisciplinary studies.
Articulate the responsibility of global citizenship and multicultural understanding with regard to academic and professional pursuits

managers are asked to focus on maximizing stockholder

Why is the capital budget an important part of a firm’s financial planning?

· Why is sales not always a good measure to use in forecasting fixed assets?

· In the United States, managers are asked to focus on maximizing stockholder value. Is this consistent with the goals of managers in Germany and Japan?

pro forma balance sheet

ASSIGNMENT 3

Using the same business you started in Assignment 1, you will continue to build a financial plan for the business.

 

Write a four to five (4-5) page paper in which you:

  1. Prepare a pro forma balance sheet for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your balance sheet.
  2. Prepare a pro forma income statement for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your income statement.
  3. Prepare a pro forma cash budget for the first twelve (12) months of your business. Include the assumptions that you have made when creating the budget. Justify your budget.
  4. Scrutinize the costs (both tangible and intangible costs) of obtaining financial capital for your business start-up to determine whether the costs justify implementation of the funding source.

Your business is five (5) years old and running profitably. You are now ready to look outward five (5) more years to take the business to the next level.

  1. Determine the specific details that would make the equity approach to valuing your business worthwhile. Provide a rationale with your response.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Apply the fundamentals of entrepreneurial financing.
  • Perform fundamental analysis of a business.
  • Examine the equity approach to valuing a new venture.
  • Use technology and information resources to research issues in financing entrepreneurships.
  • Write clearly and concisely about financing entrepreneurships using proper writing mechanics.

DISCUSSION 1

 

“Venture Capital Valuation Methods” Please respond to the following:

  • Determine the most likely valuation method a venture capitalist would use to value your business venture from Assignment 1. Provide a rationale for your response.
  • From the e-Activity, assess the effectiveness of ESOPs to incentivize key employees and whether or not this would be a viable option for your venture. Provide an example to support your response.

Week 7 e-Activity

  • Research the Internet of the Strayer Library for the pros and cons of Employee Stock Option Plans, (ESOP). Be prepared to discuss.

DISCUSSION 2

“Professional Venture Capital” Please respond to the following:

  • Imagine you are a venture capitalist reviewing the business venture you have developed over this course. From this perspective, describe how you (as the venture capitalist) would conduct the due diligence for the business venture. Then, assess what you may learn from this process.
  • Of the steps in the venture capital process, indicate which step may be the most crucial to the majority of entrepreneurs. Assess how entrepreneurs can be prepared to handle this step successfully.
  • attachment

    neal_l_fin317_assignment_2.docx_1.doc

Estimates of progress toward completion

The percentage-of-completion method must be used when certain conditions exist. Which of the following is not one of those necessary conditions?
a. Estimates of progress toward completion, revenues, and costs are reasonably dependable.
b. The contractor can be expected to perform the contractual obligation.
c. The buyer can be expected to satisfy some of the obligations under the contract.
d. The contract clearly specifies the enforceable rights of the parties, the consideration to be exchanged, and the manner and terms of settlement.

20 . The principal disadvantage of using the percentage-of-completion method of recognizing revenue from long-term contracts is that it
a. is unacceptable for income tax purposes.
b. gives results based upon estimates which may be subject to considerable uncertainty.
c. is likely to assign a small amount of revenue to a period during which much revenue was actually earned.
d. none of these.

21 . Which of the following is a limitation of the balance sheet?
a. Many items that are of financial value are omitted.
b. Judgments and estimates are used.
c. Current fair value is not reported.
d. All of these

22 . The net assets of a business are equal to
a. current assets minus current liabilities.
b. total assets plus total liabilities.
c. total assets minus total stockholders’ equity.
d. none of these.

23 . The current assets section of the balance sheet should include
a. machinery.
b. patents.
c. goodwill.
d. inventory.

24 . Which of the following is a current asset?
a. Cash surrender value of a life insurance policy of which the company is the bene-ficiary.
b. Investment in equity securities for the purpose of controlling the issuing company.
c. Cash designated for the purchase of tangible fixed assets.
d. Trade installment receivables normally collectible in 18 months.

25 . An example of an item which is not an element of working capital is
a. accrued interest on notes receivable.
b. goodwill.
c. goods in process.
d. temporary investments.

26 . Which of the following should be disclosed in a Summary of Significant Accounting Policies?
a. Types of executory contracts
b. Amount for cumulative effect of change in accounting principle
c. Claims of equity holders
d. Depreciation method followed

reported

10) Limitations of the income statement include all of the following except

A.

items that cannot be measured reliably are not reported.

B.

only actual amounts are reported in determining net income.

C.

income measurement involves judgment.

D.

income numbers are affected by the accounting methods employed.

11) Which of the following would represent the least likely use of an income statement prepared for a business enterprise?

A.

Use by customers to determine a company’s ability to provide needed goods and services.

B.

Use by labor unions to examine earnings closely as a basis for salary discussions.

C.

Use by government agencies to formulate tax and economic policy.

D.

Use by investors interested in the financial position of the entity.

12) Which of the following is not a generally practiced method of presenting the income statement?

A.

Including prior period adjustments in determining net income

B.

The single-step income statement

C.

The consolidated statement of income

D.

Including gains and losses from discontinued operations of a component of a business in determining net income

13) Which of the following is not a reason why revenue is recognized at time of sale?

A.

Title legally passes from seller to buyer.

B.

Realization has occurred.

C.

All of these are reasons to recognize revenue at time of sale.

D.

The sale is the critical event.

14) In selecting an accounting method for a newly contracted long-term construction project, the principal factor to be considered should be

A.

the method commonly used by the contractor to account for other long-term construc-tion contracts.

B.

the terms of payment in the contract.

C.

the inherent nature of the contractor’s technical facilities used in construction.

D.

the degree to which a reliable estimate of the costs to complete and extent of progress toward completion is practicable.

15) Which of the following is not an accurate representation concerning revenue recognition?

A.

Revenue from permitting others to use enterprise assets is recognized as time passes or as the assets are used.

B.

Revenue from selling products is recognized at the date of sale, usually interpreted to mean the date of delivery to customers.

C.

Revenue from disposing of assets other than products is recognized at the date of sale.

D.

Revenue from services rendered is recognized when cash is received or when services have been performed.

16) The balance sheet contributes to financial reporting by providing a basis for all of the following except

A.

determining the increase in cash due to operations.

B.

computing rates of return.

C.

assessing the liquidity and financial flexibility of the enterprise.

D.

evaluating the capital structure of the enterprise.

17) The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as

A.

liquidity.

B.

solvency.

C.

exchangeability.

D.

financial flexibility.

18) One criticism not normally aimed at a balance sheet prepared using current accounting and reporting standards is

A.

an extensive use of estimates.

B.

failure to reflect current value information.

C.

failure to include items of financial value that cannot be recorded objectively.

D.

the extensive use of separate classifications.

19) Which of the following should be disclosed in a Summary of Significant Accounting Policies?

A.

Claims of equity holders

B.

Types of executory contracts

C.

Depreciation method followed

D.

Amount for cumulative effect of change in accounting principle

20) The focus of APB Opinion No. 22 is on the disclosure of accounting policies. This information is important to financial statement readers in determining

A.

the value of obsolete items included in ending inventory.

B.

net income for the year.

C.

whether the working capital position is adequate for future operations.

D.

whether accounting policies are consistently applied from year to year.

21) Events that occur after the December 31, 2008 balance sheet date (but before the balance sheet is issued) and provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be

A.

used to record an adjustment to Bad Debt Expense for the year ending December 31, 2008.

B.

discussed only in the MD&A (Management’s Discussion and Analysis) section of the annual report.

C.

used to record an adjustment directly to the Retained Earnings account

D.

disclosed only in the Notes to the Financial Statements.

22) If the financial statements examined by an auditor lead the auditor to issue an opinion that contains an exception that is not of sufficient magnitude to invalidate the statement as a whole, the opinion is said to be

A.

adverse.

B.

unqualified.

C.

exceptional.

D.

qualified.

23) The MD&A section of an enterprise’s annual report is to cover the following three items:

A.

liquidity, capital resources, and results of operations.

B.

income statement, balance sheet, and statement of owners’ equity.

C.

changes in the stock price, mergers, and acquisitions.

D.

income statement, balance sheet, and statement of cash flows.

24) The required approach for handling extraordinary items in interim reports is to

A.

charge or credit the loss or gain in the quarter that it occurs.

B.

prorate them over all four quarters.

C.

disclose them only in the notes.

D.

prorate them over the current and remaining quarters.

25) The payout ratio is calculated by dividing

A.

cash dividends by market price per share.

B.

dividends per share by earnings per share.

C.

cash dividends by net income less preferred dividends.

D.

cash dividends by net income plus preferred dividends.

26) Which of the following ratios measures long-term solvency?

A.

Debt to total assets

B.

Acid-test ratio

C.

Current ratio

D.

Receivables turnover

27) The calculation of the number of times interest is earned involves dividing

A.

net income plus income taxes and interest expense by annual interest expense.

B.

net income by annual interest expense.

C.

none of these.

D.

net income plus income taxes by annual interest expense.

28) An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n)

A.

cash outflow from investing activities.

B.

addition to net income in arriving at net cash flow from operating activities.

C.

cash outflow from financing activities.

D.

deduction from net income in arriving at net cash flow from operating activities.

29) Of the following questions, which one would not be answered by the statement of cash flows?

A.

Where did the cash come from during the period?

B.

What was the change in the cash balance during the period?

C.

What was the cash used for during the period?

D.

Were all the cash expenditures of benefit to the company during the period?

30) To arrive at net cash provided by operating activities, it is necessary to report revenues and expenses on a cash basis. This is done by

A.

re-recording all income statement transactions that directly affect cash in a separate cash flow journal.

B.

eliminating all transactions that have no current or future effect on cash, such as depreciation, from the net income computation.

C.

estimating the percentage of income statement transactions that were originally reported on a cash basis and projecting this amount to the entire array of income statement transactions.

D.

eliminating the effects of income statement transactions that did not result in a corresponding increase or decrease in cash.

31) In determining net cash flow from operating activities, a decrease in accounts payable during a period

A.

means that income on an accrual basis is less than income on a cash basis.

B.

requires a decrease adjustment to cost of goods sold under the direct method.

C.

requires an addition adjustment to net income under the indirect method.

D.

requires an increase adjustment to cost of goods sold under the direct method.

32) In a statement of cash flows, the cash flows from investing activities section should report

A.

the issuance of common stock in exchange for a factory building.

B.

the assignment of accounts receivable.

C.

stock dividends received.

D.

a major repair to machinery charged to accumulated depreciation.

33) Riley Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Wood Co. during the current year, even though no dividends were declared or paid by Wood during the year. On Riley’s statement of cash flows (indirect method), the $25,000 should

A.

not be shown.

B.

be shown as a deduction from net income in the cash flows from operating activities section.

C.

be shown as cash inflow from investing activities.

D.

be shown as cash outflow from financing activities.

34) Which of the following tables would show the smallest factor for an interest rate of 10% for six periods?

A.

Future value of an ordinary annuity of 1

B.

Present value of an annuity due of 1

C.

Present value of an ordinary annuity of 1

D.

Future value of an annuity due of 1

35) Which table has a factor of 1.00000 for 1 period at every interest rate?

A.

Future value of 1

B.

Present value of an ordinary annuity of 1

C.

Present value of 1

D.

Future value of an ordinary annuity of 1

36) Which of the following tables would show the smallest value for an interest rate of 5% for six periods?

A.

Future value of 1

B.

Present value of an ordinary annuity of 1

C.

Present value of 1

D.

Future value of an ordinary annuity of 1

ACC 421—- FINAL EXAM….35 QUESTIONS ANSWERED

1 General-purpose financial statements are the product of
a. financial accounting.
b. managerial accounting.
c. both financial and managerial accounting.
d. neither financial nor managerial accounting

2 . Users of financial reports include all of the following except
a. creditors.
b. government agencies.
c. unions.
d. All of these are users.

3 . Which of the following statements is not an objective of financial reporting?
a. Provide information that is useful in investment and credit decisions.
b. Provide information about enterprise resources, claims to those resources, and changes to them.
c. Provide information on the liquidation value of an enterprise.
d. Provide information that is useful in assessing cash flow prospects.

4 . Accrual accounting is used because
a. cash flows are considered less important.
b. it provides a better indication of ability to generate cash flows than the cash basis.
c. it recognizes revenues when cash is received and expenses when cash is paid.
d. none of the above.

5 . Which of the following (a-c) are not true concerning a conceptual framework in accounting?
a. It should be a basis for standard-setting.
b. It should allow practical problems to be solved more quickly by reference to it.
c. It should be based on fundamental truths that are derived from the laws of nature.
d. All of the above (a-c) are true.

6 . In the conceptual framework for financial reporting, what provides “the why”–the goals and purposes of accounting?
a. Measurement and recognition concepts such as assumptions, principles, and constraints
b. Qualitative characteristics of accounting information
c. Elements of financial statements
d. Objectives of financial reporting

7 . Accounting information is considered to be relevant when it
a. can be depended on to represent the economic conditions and events that it is intended to represent.
b. is capable of making a difference in a decision.
c. is understandable by reasonably informed users of accounting information.
d. is verifiable and neutral.

8 . According to Statement of Financial Accounting Concepts No. 2, which of the following relates to both relevance and reliability?
a. Materiality
b. Understandability
c. Usefulness
d. All of these