Category: financial management

Financial policies within healthcare organizations

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Healthcare organizations must be economically viable to implement and maintain policies. Cost-benefit analysis measures viability and highlights when or where changes need to be made to ensure financial sustainability. In a minimum of 250 words, discuss the following:

Find a healthcare company in California (department or company-wide) of your choosing and examine the financial policy within that company that supports or negates sustainability (i.e., cost, benefit, and outcome). Provide a rationale for your position.

Theories, models, and practices of finance to the financial management of an organization.

Posted on | by Brian Leakey

An 6-8 slide presentation to your staff describing your analysis, linking what tools you utilized and why you chose those tools. You will use data to support your evidence-base financial decisions. You will also explain your recommendations to maximize stakeholder value, translating those to tactical outcomes to be implemented by your staff.

Introduction
This assessment builds on your prior work in Assessments 1 and 2. It is a presentation to your staff describing you analysis, linking what tools you utilized and why you chose those tools. You will use data to support your evidence-base financial decisions. You will also explain your recommendations to maximize stakeholder value, translating those to tactical outcomes to be implemented by your staff.

Apply the theories, models, and practices of finance to the financial management of an organization.
Analyze financing strategies to maximize stakeholder value.
Apply financial analyses to business planning and decision making.
Use data to support evidence-based financial decisions.
Scenario
The senior leadership has approved your recommendations to move forward. You are now tasked with operationalizing your recommendations. Meeting with your staff, you will translate recommendations to strategies and corresponding tactical objectives. You will explain how you used financial analysis to develop these recommendations, discussing the financial tools you will use to monitor implementation progress.

Your Role
You are one of the high-performing financial analyst managers at ABC Healthcare Corporation and are under consideration for a promotion to Director of Operations.

You are presenting to your staff a summary of the reports presented to senior leadership (Assessments 1 and 2).
Start by presenting the overall current financial condition of the company as presented to senior leadership (one to two slides).
Provide an overview of your analysis, linking what tools (financial statements, ratios, industry trends, capital structure) you utilized and why you chose these tools (two slides).
Link the data used to support your evidence-based financial decisions, providing justification for the recommendations (two slides).
State the recommendations focused on maximizing stakeholder value into strategies newly adopted by the company, i.e., expansion to a new geographical market, the development of a new dividend policy, changes in capital expenditures, reduction of workforce (one slide).
Translate those strategies to tactical objectives to be implemented by your staff, noting evidenced-based academic citations (one to two slides).

The main goal of financial management is to maximize intrinsic stock value for the benefit of society

Posted on | by Brian Leakey

The main goal of financial management is to maximize intrinsic stock value for the benefit of society. In this sphere, special companies, minimize costs through innovation in the production process, create value for the customer by providing quality services and products, and creating value for employees through training and development and foster an environment that allows employees to utilize their skills and talents.

Suppose you decide to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area, and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO, then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions.
Assignment: Write a short answer to these questions using the above case.

What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.
If you expanded, and hired additional people to help you, might that give rise to agency problems?
Explain why “maximation of shareholders’ wealth” is the appropriate goal of the firm.
What items of good corporate governance serve to mitigate the tension between owners and managers?

Capital Budgeting & Capital Structure

Posted on | by Brian Leakey

A project has an initial cost of $45,000. The incremental inflows associated with the project are $20,000 in year 1, $15,000 in year 2, $10,000 in year 3 and $8,000 in year 4. All cash inflows are at the end of the year. The appropriate discount rate for this project is 8.0%. (HINT: Possibly use Excel Worksheet)

  1. What is the project’s payback period?
    a. 5.00 Years
    b. 3.00 Years
    c. 8.00 Years
    d. 7.00 Years
  2. What is the project’s discounted payback period?
    a. 2.87 Years
    b. 3.97 Years
    c. 10.25 Years
    d. 6.75 Years
  3. What is the project’s net present value?
    a. $197.16
    b. $278.96
    c. $345.21
    d. $225.35
  4. What is the project’s internal rate of return? Calculate to two decimal places.
    a. 3.52%
    b. 8.23%
    c. 5.35%
    d. 2.75%
  5. What is the project’s modified internal rate of return? Calculate to two decimal places.
    a. 3.52%
    b. 7.60%
    c. 5.35%
    d. 8.12%
    A project has an initial cost of $45,000. The incremental inflows associated with the project are $20,000 in year 1, $15,000 in year 2, $10,000 in year 3 and $8,000 in year 4. All cash inflows are at the end of the year. The appropriate discount rate for this project is 8.0%. The component costs of capital and their weights are given below:
  6. What is the project’s weighted-average cost of capital?
    kd = 10% wd = 45%
    kp = 5% wp = 10%
    ke = 8% we = 45%
    T = 40%
    a. 6.8%
    b. 2.4%
    c. 4.3%
    d. 8.5%

Bond & Stocks Valuation

Posted on | by Brian Leakey

Select one question to analyze. Referring to the three fundamental principles and three precepts of finance below, integrate a principle, a precept, or both in
your response. In addition, integrate 1-2 external credible references to support your thoughts.
FP1: The value of any asset is equal to the present value of the cash flows the asset is expected to produce over its economic life.
FP2: There is a direct relationship between risk and return; as perceived risk increases, required return will also increase (and vice versa), holding other things
constant.
FP3: There is an inverse relationship between price and yield; if an asset’s price increases, its return will decrease (and vice versa), holding other things
constant.
PR1: The present value of a cash flow (or an asset) is inversely related to its discount rate; increasing the discount rate decreases the present value (and vice
versa), holding other things constant.
PR2: The timing of the cash flows of an asset is important; sooner is better (later cash flows are more heavily discounted, reducing their present value).
PR3: The present value of a cash flow (or an asset) is inversely related to its perceived risk; the higher the risk, the higher the discount rate, and therefore the
lower the present value.

  1. Companies pay rating agencies such as Moody’s and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to
    have their bonds rated in the first place; doing so is strictly voluntary. Why do you think they do it?
  2. Why does the value of a share of stock depend on dividends? A substantial percentage of the companies listed on the NYSE and the NASDAQ don’t pay
    dividends, but investors are nonetheless willing to buy shares in them. How is this possible keeping in mind your answer to the previous question? Under
    what circumstances might a company choose not to pay dividends?

Risk and Return & Interest Rates

Posted on | by Brian Leakey

Instructions: Calculate each exercise. Highlight the answer and provide explanations (100 words) to each of the answers along with any relevant calculations to receive credit. Your part in completing the assignment is to demonstrate an understanding and application of the concepts covered.

  1. A good measure of an investor’s risk exposure if she/he only holds a single asset in her portfolio is:
    a. The expected value of the asset’s returns.
    b. The standard deviation of possible returns on the asset.
    c. The correlation coefficient with the market portfolio.
    d. The normal probability distribution function.
  2. The beta for ABM Industries is 1.50. Assuming that the nominal risk-free rate is 6.0% and that the return to the market is 9.0%, what is ABM’s required return?
    a. 7.5%
    b. 18.4%
    c. 10.5%
    d. 3.2%
  3. Koda’s Manufacturing has a required return of 9.50%. If the market return is 13.0% and the nominal risk-free rate is 6.0%, what is Koda’s beta?
    a. 0.5%
    b. 8.3%
    c. 7.2%
    d. 2.2%
  4. Which of the following items reflects the time value of money?
    a. Real risk-free rate.
    b. Inflation premium.
    c. Default risk premium.
    d. Liquidity premium.
    Use the following data to answer questions 5 and 6. Assume the following premiums reflect current market conditions:
     r* = 3.15%;
     IP (1-year bonds) = 2.35%;
     IP (3-year bonds) = 2.65%;
     IP (5-year bonds) = 2.90%;
     DRP (AAA corporate bonds) = 0.60%;
     DRP (AA+ corporate bonds) = 0.85%;
     LP (AAA corporate bonds) = 0.22%;
     LP (AA+ corporate bonds) = 0.30%;
     MRP = 0.1% × (t − 1) where t is the number of years to maturity.
  5. Calculate the interest rate for a 1-year AA+ corporate bond.
    a. 3.52%
    b. 10.48%
    c. 6.65%
    d. 9.75%
  6. Calculate the interest rate for a 5-year AA+ corporate bond.
    a. 3.52%
    b. 7.60%
    c. 5.35%
    d. 2.75%

Management’s Report on Internal Control Over Financial Reporting

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The Independent Registered Public Accounting Firm’s Report on Internal Control Over Financial Reporting
The Independent Registered Public Accounting Firm’s Report on the Financial
Explain the purpose and content of each of these reports.

Assuming the report you review is an Unqualified Opinion, express your thoughts on other types of financial statement reports such as Qualified Opinions, Adverse Opinions, and Disclaimer of Opinions.-

Importance of affecting and managing relationships.

Posted on | by Brian Leakey

Scenario
Recall a time when you were involved with a conflict in the workplace, or witnessed a conflict at work. This situation should be one that involved a relationship of some kind (i.e. manager-employee, employee-employee, etc.) where a conflict occurred. Think about how this experience could have been improved if you had had a mentor or a coach to help you through the situation.

Instructions
Reflect on an experience of a conflict and how it could have been improved with a mentor or coach. From this experience, create a mentoring or coaching document. In your document, think about conflict management and relationship management strategies. Include the following in your mentoring/coaching document:

What was the conflict and relationship?
Did you see things the way they really were, or were your eyes opened to something else? Was there any bias? Explain.
How would you have done things differently? Why?
How did that experience affect other relationships?

Visualization And Analysis Of Data

Posted on | by admin3

Select any example visualization or infographic and imagine the contextual factors have changed:

If the selected project was a static work, what ideas do you have for potentially making it usefully interactive? How might you approach the design if it had to work on both mobile/tablet and desktop?
If the selected project was an interactive work, what ideas do you have for potentially deploying the same project as a static work? What compromises might you have to make in terms of the interactive features that wouldn’t now be viable?
What about the various annotations that could be used? Thoroughly explain all of the annotations, color, composition, and other various components to the visualization.
What other data considerations should be considered and why?
Update the graphic using updated data, in the tool of your choice (that we’ve used in the course), explain the differences.