United Health Group has bonds outstanding that have four years remaining to maturity,
a coupon interest rate of 8 percent paid annually, and a $1,000 par value.
a. What is the yield to maturity on the issue if the current market price is $829?
b. If the current market price is $1,104?
c. Would you be willing to buy one of these bonds for $829 if you required a 12 percent rate of return on the issue? Explain your answer.
Category: Finance
The current market price of the bond
Tenet Healthcare, has a bond issue outstanding with eight years remaining to maturity,
a coupon rate of 9 percent with interest paid annually, and a par value of $1,000. The current market price of the bond is $1,251.22.
a. What is the bond’s yield to maturity?
b. Now, assume that the bond has semiannual coupon payments. What is its yield to maturity in this situation?
The bond’s value
Assume HCA sold bonds that have a ten-year maturity, a 13 percent coupon rate with annual payments, and a $1,000 par value.
a. Suppose that two years after the bonds were issued, the required interest rate fell to 12 percent. What
would be the bond’s value?
b. Suppose that two years after the bonds were issued, the required interest rate rose to 14 percent. What
would be the bond’s value?
The essential components of a financial projection for your start-up business
Discuss the essential components of a financial projection for your start-up business for inclusion in your business plan. Speculate on potential financial resources to fund your proposed business start-up.
External Corporate Social Responsibility
The Impact of External Corporate Social Responsibility on Firm Profitability: Pharmaceutical Companies in S&P 500 Index
Financial Management of Healthcare Organizations
Q.1 Write a reply for this discussion
Value-based consideration is a type of repayment that attaches installments for care conveyance to the nature of care given and compensates suppliers for both proficiency and adequacy. This type of repayment has arisen as another option and possible trade for expense for administration repayment, which pays suppliers reflectively for administrations conveyed dependent on charge charges or yearly expense plans. To improve whereby medicinal services suppliers do return during treatments performed, the Places for Federal health insurance and Medicaid Administrations (CMS) has presented a variety of significant worth-based consideration models, for example, the Government medical care Shared Investment Funds Program and Pioneer Responsible Consideration Association (ACO) Model. Private payers have this way, received comparable models of responsible, esteem-based consideration. While the customary charge-for-administration repayment model advanced the number of administrations, government authorities have proposed a few repayment programs that reward medical care suppliers for the nature of care that they provide for patients. Worth-based consideration means to propel the triple point of giving better consideration to people, improving populace well-being through the executive’s methodologies, and decreasing medical care costs.
Nowicki, M. (2018). Financial Management of Healthcare Organizations. Chicago: HAP.
MGMT
Q.2 Write a reply for this Discussion
A group of people called to court for jury duty (often by a jury summons) are interrogated by attorneys and occasionally judges before a jury is chosen. Questioning is known as “voir dire,” which translates to “to speak the truth.” The basic goal of voir dire is to select jurors who can listen to the evidence objectively and render a decision that is consistent with the law. By demonstrating that the person can’t be fair or won’t follow the law, an attorney can utilize a “challenge for cause” to remove them from the jury. In most jurisdictions, attorneys are also permitted a set number of “peremptory” challenges—a fancy way of stating they can remove someone from the jury without providing a reason. Many judges will only question a specific number of prospective jurors at a time during voir dire. The remaining potential jurors could observe the voir dire of that group while waiting nearby. Each party may cross-examine any members of the group they do not want to serve on the jury following the questioning. Those series of question can vary depending on the ongoing case.
References: How do they select jurors for jury duty? | lawyers.com. (n.d.-a). https://www.lawyers.com/legal-info/criminal/criminal-law-basics/the-process-of-questioning-potential-jurors.html/
Q.3 What is the purpose of the Statute of Fraud? What exactly does it include?
Jardine Matheson Group
Case 3- 1 Jardine Matheson Group (Part 1)
The Jardine Matheson Group is a major conglomerate within the Asian region. Its business interests include large companies, which are market leaders in many fields, including engineering and construction, transport services, motor trading, property, retailing, and insurance broking. Jardine Matheson was incorporated in Bermuda; it has its primary share listing in London and secondary listings in Singapore and Bermuda; and it operates from Hong Kong and provides management services to other companies in the Group, which aims to produce sustained growth in shareholder value.
Jardine Matheson uses IFRS in preparing its financial statements and has done so for a number of years.
Required:
Q. Access Jardine Matheson’s most recent annual report on the company’s website (www.jardine-matheson.com). Review the company’s consolidated financial statements to evaluate whether the financial statements presented comply with the presentation requirements in IAS 1, Presentation of Financial Statements. Document your evaluation.
A. Jardine presents a consolidated profit and loss account, consolidated statement of comprehensive income, consolidated balance sheet, and consolidated statement of changes in equity, all of which are in accordance to IAS 1.
Regarding the presentation of the consolidated profit and loss account, Jardine uses the “function of expenses” format in its financial reporting, however the expenses are not presented in the financial statements but are instead split out into items found in the notes to the financial statements.
Regarding the presentation of consolidated balance sheet, Jardine presents the minimum items required by IAS 1 in its balance sheet. Jardine does however combine its retained earnings and other reserves into a singular item named “revenue and other reserves”. Jardine also employed some terminologies which are different from the IAS 1, such as ‘stocks and work in progress’ instead of inventories, ‘bank balance and other liquid funds’ instead of cash and cash equivalents, ‘tangible assets’ instead of property, plant and equipment, and ‘creditors and accruals’ instead of trade and other payables.
The Comfy
The Comfy is a product dreamed by the Speciale brothers. Michael and Brian. The Speciale Brothers hit the jackpot on Shark Tank and agreed to sell a 30% stake in their business for 550,000 on Dec 31, 2020. The first year went amazing! The company went from just a few protypes they made to over $15 million in sales. The company’s first year results are given below. Note, like the real world. there is more information than you actually need to do this assignment. You need to figure out what to use.
They have a negotiated contract with a manufacturer in Bangladesh for the following orders:
Production Costs Monthly Production Bill with under 20.000 order $13/Comfy Monthly Production Bill with under 20,001-99.999 order $12/Comfy Monthly Production Bill with 100.000+ order $11/Comfy
Shipping costs are $4 per Comfy (either to the customer directly or to the store/QVC).
Additionally, the brothers have rolled out an advertising platform and website: thecomfy.com s. Customer acquisition costs (the cost of accepting credit cards and advertising on Facebook) are approximately $6 per comfy and occur the same month as the sale, regardless of the venue sold.
Creating a Comfy Proforma
Using the percentage of sales approach and the company’s expectations of sales in the chart below, create a proforma income statement and balance sheet. Determine any additional funding needed in order to sustain the projected growth rate. The Shark wants her 30% of profits in the form of a cash dividend paid out. The Speciale brothers have promised to re-invest their money into the business for the first three years.
Product Sale Forecast Online Home Shopping Network Bed Bath and Beyond YR 1 75.000 300,000 200.000 YR 2 100,000 400.000 250.000 YR 3 150,000 600,000 375,000 Current Assets, Long-term assets. and account payable are 25%, 50%, and 20% of sales, respectively. Long-term debt and equity are not fixed in relation to sales.
Project Instructions
• template 1
• Using the template and the information below, create a pro forma for The Comfy. • Name your file: Comfy_YourName.xls
Word Document
• Create a Word Document explaining your expectations for additional funding to the Shark. • Name your file: Comfy_YourName.docx • In your memo, either explain how the cash coming in is going to be sufficient to fund growth OR outline how much additional cash will be needed. • You will most likely need to make up a few small charts to make your plan clear and readable. • Address what you believe should be done with any excess cash (for example: pay it out to the Speciale Brothers, keep it for a rainy day in cash, etc.) OR if you think the company should issue debt, equity, or a combination of both to fund the shortfall. • Note: Points will be given not based on your choice but rather your justification of which you choose.
template 1:
Income Statement
Year 1Year 2Year 3
Revenues $16,330,000
Manufacturing Costs $6,132,000
Shipping Costs $2,044,000
Customer Acquisition Costs $3,066,000
EBT $5,088,000
Taxes (21%) $1,068,480
Net Income $4,019,520
Balance Sheet
Year 1Year 2Year 3
Assets
Current Assets 4,082,500
Long-Term Assets 8,165,000
Total Assets 12,247,500
Liabilities
Accounts Payable $3,266,000
Long-Term Debt $6,067,836
Common Stock $100,000
Accumulated Retained Earnings $2,813,664
Total Liabilities and Equity $12,247,500
The Comfy
The Comfy is a product dreamed by the Speciale brothers. Michael and Brian. The Speciale Brothers hit the jackpot on Shark Tank and agreed to sell a 30% stake in their business for 550,000 on Dec 31, 2020. The first year went amazing! The company went from just a few protypes they made to over $15 million in sales. The company’s first year results are given below. Note, like the real world. there is more information than you actually need to do this assignment. You need to figure out what to use.
They have a negotiated contract with a manufacturer in Bangladesh for the following orders:
Production Costs Monthly Production Bill with under 20.000 order $13/Comfy Monthly Production Bill with under 20,001-99.999 order $12/Comfy Monthly Production Bill with 100.000+ order $11/Comfy
Shipping costs are $4 per Comfy (either to the customer directly or to the store/QVC).
Additionally, the brothers have rolled out an advertising platform and website: thecomfy.com s. Customer acquisition costs (the cost of accepting credit cards and advertising on Facebook) are approximately $6 per comfy and occur the same month as the sale, regardless of the venue sold.
Creating a Comfy Proforma
Using the percentage of sales approach and the company’s expectations of sales in the chart below, create a proforma income statement and balance sheet. Determine any additional funding needed in order to sustain the projected growth rate. The Shark wants her 30% of profits in the form of a cash dividend paid out. The Speciale brothers have promised to re-invest their money into the business for the first three years.
Product Sale Forecast Online Home Shopping Network Bed Bath and Beyond YR 1 75.000 300,000 200.000 YR 2 100,000 400.000 250.000 YR 3 150,000 600,000 375,000 Current Assets, Long-term assets. and account payable are 25%, 50%, and 20% of sales, respectively. Long-term debt and equity are not fixed in relation to sales.
Project Instructions
• template 1
• Using the template and the information below, create a pro forma for The Comfy. • Name your file: Comfy_YourName.xls
Word Document
• Create a Word Document explaining your expectations for additional funding to the Shark. • Name your file: Comfy_YourName.docx • In your memo, either explain how the cash coming in is going to be sufficient to fund growth OR outline how much additional cash will be needed. • You will most likely need to make up a few small charts to make your plan clear and readable. • Address what you believe should be done with any excess cash (for example: pay it out to the Speciale Brothers, keep it for a rainy day in cash, etc.) OR if you think the company should issue debt, equity, or a combination of both to fund the shortfall. • Note: Points will be given not based on your choice but rather your justification of which you choose.
template 1:
Income Statement
Year 1Year 2Year 3
Revenues $16,330,000
Manufacturing Costs $6,132,000
Shipping Costs $2,044,000
Customer Acquisition Costs $3,066,000
EBT $5,088,000
Taxes (21%) $1,068,480
Net Income $4,019,520
Balance Sheet
Year 1Year 2Year 3
Assets
Current Assets 4,082,500
Long-Term Assets 8,165,000
Total Assets 12,247,500
Liabilities
Accounts Payable $3,266,000
Long-Term Debt $6,067,836
Common Stock $100,000
Accumulated Retained Earnings $2,813,664
Total Liabilities and Equity $12,247,500
Investment Portfolio Paper
For this assignment, you will be creating an investment portfolio allocating $100,000 in funds you won in a hypothetical lottery (see the scenario below). An
investment portfolio is a collection of assets and can include investments like stocks, bonds, mutual funds, and exchange-traded funds. Two of the most
important things to consider when creating a portfolio are your diversification strategy and personal risk tolerance.
For this week’s assignment, you will be further developing your investment portfolio that you started in Week 2. You will also need to create and include a
graphic (e.g., table, chart) that illustrates your dollar or percent allocation of the $100,000 investment funds.
Scenario: Imagine you have just won $100,000 in a lottery. You want to invest this money wisely so it can grow over time and help you achieve your overall
investment goals.
In your paper, include:
Financial Situation and Goals
Describe your current financial situation at a high level.
Consider discussing your current and future income potential, current debt, current investments, and anything else significant that can impact your
investment strategy.
Review what you submitted for your Week 2 Assignment and incorporate any instructor feedback provided.
Create at least two investment goals for yourself that are SMART (specific, measurable, attainable, realistic, and time-bound).
Review what you submitted for your Week 2 Assignment and incorporate any instructor feedback provided.
Investment Types and Rationale
Identify at least three major types of investments you would invest in that align with your goals.
Explain your rationale for why you chose those three specific investment types, including how it aligns with your SMART goals or how it supports your overall
diversification strategy.
Investment Allocation
Explain how you would allocate the $100,000 to invest in the three investment types (e.g., $50,000 to several stocks, $40,000 to bonds, and $10,000 to
mutual funds).
Include a graphic (e.g., pie chart, table, etc.) that illustrates your dollar or percent allocation of investment funds.
Financial Returns and Risks
Discuss what financial return you estimate the investment portfolio to deliver 5 years from now using data and calculations. In other words, how much will
the portfolio be worth 5 years from now?
Be sure to show and . Links to an external site.
Explain two key assumptions you used to arrive at the estimated financial return 5 years from now.
Consider using historical or forecasted data to support the estimated amount.
Discuss one potential risk to your overall portfolio to achieve your desired return.
Portfolio Monitoring
Explain the importance of monitoring your investment portfolio routinely.