Category: Finance

Calculating the best-case scenario values for each variable

Posted on | by Kelvin

 

Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $2,500 per unit; variable costs = $500 per unit; fixed costs = $.1 million: quantity = 80,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

 

Case Study 11-2: Dealing with Traffic Jams in London

Posted on | by Kelvin

Read the Case Study 11-2 (p. 269) Dealing with Traffic Jams in London. Then, respond to the following questions:

Assess the risks of this project.
Given your assessment of the project complexity, clarity, and size, what management strategies would you recommend?
What, if any, of these strategies, were adopted in this project?
Describe the development methodology that was applied to this project. Was this the most appropriate approach? Provide a rationale for your response.
When a project is outsourced, who should manage the project—the internal group or the outsourcer? Why?

Read the Case Study 12-2 (p. 292) Stop & Shop’s Scan It! App. Then, answer the following questions:

What is the benefit of the Scan It! data to Stop & Shop? What are some of the questions the company could answer about its customers?
How would you assess the level of capabilities of Stop & Shop’s use of analytics? What might the company do differently with the data to gain more value?
What is the benefit of Scan It! for the customers? What concerns might shoppers have about their privacy? How would you advise Stop & Shop management to respond to these concerns?

Your answers are expected to be in meaningful paragraphs composed of well-formatted sentences with appropriate flow. Bulleted or numbered lists will not be accepted. Be sure to restate the question in your answers to make sure you cover all of the material requested. Make sure you complete the student feedback section as well.

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A Comprehensive Analysis of Financial Statements: Unveiling Investment Potential

Posted on | by Kelvin

 

Write an analysis of financial statements. Below are some suggested companies:
Apple;Tesla;Ford; Lyft;Uber;Amazon;Snap;Exxon Mobile;Chevron;Google;Facebook; Nvidia.
You can do cross industry analysis, peer comparison, or trends analysis of the same company.
Goal of the essay: comprehensive understanding of financial statements.
Content: As a financial expert, what can you suggest to an investor? Do you see potential in the company(ies) you are analyzing? Why or why not? How is the earnings history of the company? What is the growth potential? How is the company’s performance compares with competitors?

 

 

Difference between Book Value Accounting and Market Value Accounting

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What is the difference between book value accounting and market value accounting? How do interest rate changes affect the value of bank assets and liabilities under the two methods? What is marking to market?
What are the two different general interpretations of the concept of duration, and what is the technical definition of this term? How does duration differ from maturity?
A one-year, $100,000 loan carries a coupon rate and a market interest rate of 12 percent. The loan requires payment of accrued interest and one-half of the principal at the end of six months. The remaining principal and accrued interest are due at the end of the year.
a. What will be the cash flows at the end of six months and at the end of the year?

b. What is the present value of each cash flow discounted at the market rate? What is the total present value?

c. What proportion of the total present value of cash flows occurs at the end of six months? What proportion occurs at the end of the year?

d. What is the duration of this loan?

Trends in the Banking Industry: Navigating a Shifting Landscape

Posted on | by Kelvin

 

Research Paper on Banking Industry Trends

The assignment is a 5-7 page (content) paper on trends in the banking industry written in APA style. The due date is November 17. You may use information from the textbook, journal/news source articles, current events, and/or videos from class.

The outline of your paper should be as follows:

• Introduction; main idea of the paper

• Discuss various trends in the industry. Choose some of the following questions to guide your research (you do not need to use all of these; you should probably focus on no more than 3-4 of them):

o How has the role of banks within the financial services industry changed?
o Discuss some of the strategic issues in the banking industry (small, large, growth, technology, branching, consolidation, etc.)
o What have been the effects of regulatory changes on the banking industry?
o What have been the effects of the financial crisis on the banking industry?
o How have banks performed in recent and past history?
o How does bank performance break down by bank size?
o What role is there for community/rural banks now and in the future?
o Why are there so many consolidations and what effect to these have?
o How have bank operations changed with technology? (For example, liquidity management, derivatives management of interest rate risk and other risks, etc.)
o What are some of the business and policy challenges facing the banking industry now and in the future?
o IMPORTANT: Don’t put these questions into the text of your paper. They are simply here to help you organize your research.

• Conclusion

• References
o Complete citations of references
o Citations of these, including specific pages, should be made throughout the text of the paper.

Financial Projections: Demonstrating Stability and Success

Posted on | by Kelvin

Supplement your funding request with financial projections. Your goal is to convince the reader that your business is stable and will be a financial success.

If your business is already established, include income statements, balance sheets, and cash flow statements for the last three to five years. If you have other collateral you could put against a loan, make sure to list it now.

Provide a prospective financial outlook for the next five years. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly — or even monthly — projections. Make sure to clearly explain your projections, and match them to your funding requests.

This is a great place to use graphs and charts to tell the financial story of your business.