Category: Finance

The Case for Financial Management in Healthcare

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Leaders of healthcare organizations must have a foundational knowledge of key financial concepts and techniques, as well as how these principles are influenced by the unique characteristics of the healthcare industry. Assess how healthcare financial management can help healthcare organizations stay viable in the long run.

Q.2 Write a reply for ABC friend discussion
There are so many different things that involve how healthcare financial management can help healthcare organizations stay viable. Some of these things include;
Budgeting and forecasting: this helps to develop the financial plan and budget for an organization so that they can allocate resources efficiently and effectively.
The revenue management: You can’t run any organization without revenue management to optimize revenue streams, ensuring accurate billing, collection processes, and opportunities to increase in revenues. This will also include reimbursements and patient payouts.
Cost controls: where the organization focuses on which costs will go towards labor, supplies, and equipment and which areas costs can be reduced without compromising other thigs such as quality of care.
Compliance: Each organization is to be within compliance of state and federal laws and regulations. Any department takes part in understanding and keeping within these compliances.
Investments: with healthcare financial management helping, it can help an organization understand certain investment decisions such as risks and benefits of any investment opportunities that may come along. These investments can be something such as technologies or infrastructures.

 

Finance Law

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An analysis of corporate governance principles and implications from and for financial reporting and voluntary disclosure-A case of UK listed companies

 

Finance Law

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An analysis of corporate governance principles and implications from and for financial reporting and voluntary disclosure-A case of UK listed companies

 

Investment Fundamentals

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Chapter 13 – Investment Fundamentals – Exercise
For the two questions below, respond in the text-entry box with the correct answer from the options provided (A, B, C D); and describe the approach you took
to calculate it.
1. Dollar Cost Averaging Share Price
What is the average share price for the dollar-cost averaging strategy shown below?
Regular Investment Share Price
$250 $35
$250 $31
$250 $28
$250 $37
$250 $40
A. $34.20
B. $37.14
C. $33.66
D. $36.55
2. Rate of Return on Investment
Gary purchased 250 shares of PAC stock for $37 per share and sold this same stock one year later for $44 per share. He paid commissions of $15 when he
purchased the stock and $10 when he sold the stock. Dividends of $1.50 per share were paid during the year. The total rate of return on this investment was
A. 22.98 percent.
B. 22.70 percent.
C. 18.92 percent.
D. 19.32 percent

 

Industrial Competitiveness and Global Transformation

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What were the key aspects and models of industrialisation for “East Asia Miracle” countries in the Twentieth Century? Are these experiences relevant to industrialisation strategies in the Twenty-first century? Support your analysis with examples from specific countries.
Write an essay on one of the questions shown below
• Word limit: 3000 words (+ or – usual 10% margin).
• Please indicate the question that you have answered.
• Assignments should use 12pt font size, with 1.5 line spacing
Important Requirements
• “Examples” – All questions require the use of substantial example(s) to support the discussion. These should be cases that provide more practical insights on conceptual discussion and models.
o Examples can include: specific country cases, firms, clusters, regions, projects, policy areas, sectors and value chains amongst others.
o You can choose to focus on a single case, or you can analyse comparative cases or multiple cases if you wish
• Course readings – These should serve as a starting point for your assignment (although you can go beyond this). Assignments that do not use any course readings can expect to be significantly penalised for being irrelevant to the course topic.
• Development focus – You should ensure that the discussion relates to global development issues (taken broadly). Only using US, UK or EU examples will be deemed as not meeting the requirements of the course.
• “Recent”/”contemporary” cases – This is a course about the contemporary experiences and relevance of industrialisation. While some questions require a discussion of historical aspects, you should ensure this is grounded in contemporary lessons and critiques. Submitting solely historical accounts will be deemed irrelevant to the course topic.

 

The difference between the premium of the put option

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Consider two “corresponding” options, consisting of a call and a put with the exact same parameter values. For this pair, the current price of the underlying asset is $81, the options have an exercise price of $95 and they expire in 10 months. Additionally, the risk-free rate is 6% p.a. What is the difference between the premium of the put option, P, and the premium of the call option, C; that is, what is the value of P – C? Write the answer with two decimals; e.g., 3.24. Do NOT use the $ symbol in your answer; just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive. NOTE: Use the continuous time version of the Put-Call Parity equation (i.e., do NOT use the book’s version).

Two “corresponding” options

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Consider two “corresponding” options, consisting of a call and a put with the exact same parameter values. For this pair, the call premium is $2.3. If the current price of the underlying asset is $30 and the present value of the exercise price is $30, what is the premium of the put option, P? Write the answer with one decimal; e.g., 3.2. Do NOT use the $ symbol in your answer; just write a numerical value.

 

The net payoff

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You buy a 1-year put option and sell the corresponding call option. Both options are written on 1 share of IBM stock and both have an exercise price of $95. In addition, you also buy 1 share of IBM stock. What is the net payoff you receive from this 3-asset portfolio if at expiration the price of each share of IBM stock is $40?

 

The call option’s premium

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A European call option written on one share of Medident Corp. has the following parameter values: S = $220, X = $20 0, r = 5% p.a., sigma = 40% p.a., T = 9 months. Find the call option’s premium, rounded to 2 decimals (e.g., 3.24). Do NOT include the $ sign in your answer; write only the numerical value. NOTE: Use the continuous time version of the Black-Scholes equation (i.e., do NOT use the book’s version).

Financial model that forecasts performance

Posted on | by Brian Leakey

The objective of the project (case study) is for you to build a financial model that forecasts
performance and calculates the value of a stock of a publically traded U.S. company. The end
result is an equity valuation report that establishes a target stock price and provides a
recommendation to buy, sell, or hold the stock to an investor.
Getting started:
Chose a U.S. publicly traded company listed on either the NYSE or NASDAQ. Please do not
select companies that are in the financial sector or have divisions that operate in the financial
sector. These firms are difficult to evaluate.
Start familiarizing yourself with your company and the industry it is operation in. Make sure that
you start to follow the news regarding the company.
You will need to download the income statement, the balance sheet and the statement of cash flows
for the company from Mergent Online. To access Mergent Online, please go to the Mercer
Libraries web site and choose Mergent Online under Indexes/Databases. You can then type in the
name of the company of interest and click search. Download 10 years of annual statements in excel
and consolidate all of them on a single Excel spreadsheet on different tabs. Download
standardized financial statements! Make sure that the scaling is the same for all statements (i.e.
thousand, millions, or billions) and that the currency is as reported (USD). Clean the statements
up so the key lines stand out (Ex. Net income, Total Assets, Total Liabilities etc.).
Please follow the flow of our class as you work on this case study.
Tasks to accomplish:

  1. Compute various financial ratios and other financial measures of your company and
    comment on the performance of the firm over the past 10 years.
  2. Compare your company to several closest competitors; provide comment on how your
    company compares to the competitors from a financial standpoint – use ratios and other
    financial analysis methods.
  3. Using the information learned from the above steps and your understanding of the industry
    and the economy, create projected financial statements for your firm (at least 2 years).
  4. Compute the expected net income of the firm and assume that all of it will be paid out as
    dividends to the shareholders. Also assume that the net income will grow in perpetuity at
    a growth rate that is consistent with the expected long-term growth rate of the US GDP
    (please research what such an expectation is and reference the source where you found the
    long-term GDP growth projection).
  5. Determine the appropriate discount rate to be used by you in the valuation of the firm.
    Here, you can either come up with your own desired rate of return, research what
    companies in this industry generally return and use that as your discount rate, or you can
    use CAPM to compute the historic beta of the firm and then use it to compute the cost of
    equity of the firm. Either of the three methods are acceptable. Please make sure to discuss
    your approach to the discount rate assumption in the case study write up.
  6. Compute the present value of the future earnings that you expect your firm will produce
    (make sure to include the terminal value in your calculation). This is the value at which the
    firm should be valued based on your valuation model. Convert this value into share price
    based on the present number of outstanding shares.
  7. Provide a recommendation on whether to buy, sell or hold the stock.