FIN360: finance case study

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FIN360

Fall 2020

Group Case Study

 

Please answer all questions. Do not leave any question unanswered. Show your calculations. Submit the Case Study through Moodle only.

Typed answers are preferred.

Assignment is due on  December, 1st 2020 at 11:59 PM

 

 

 

 

  1. The Rockies Corporation is considering a project that provides the following cash flows steam:
Year 0 1 2 3 4 5
Cash flows -$1,000 $375 $425 $250 $110 $100

 

  1. If WACC is 10%, what is NPV and should the company accept the project?

 

 

  1. Find IRR, MIRR, payback, and discounted payback period.

 

 

  1. Considering the following projects.
Project Year 0 1 2 3 4
A Cash flows -$100 $35 $35 $35 $35
B Cash flows -$100 $60 $50 $40 $30

 

Project A has WACC = 6.00% while project B has WACC = 8.50%.

 

  1. If these two projects are mutually exclusive, which project should the company accept based on the NPV, IRR, MIRR, payback, and discounted payback period for each project?

 

 

  1. Would your decision (Your answer from part A) change if these two projects were independent?

 

 

 

 

 

 

 

  1. The Big Easy Inc. target capital structure calls for 30% debt, 10% preferred stock, and 60% common equity. It has outstanding 25-year noncallable bonds with a face value of $1,000, a 9% semi-annual coupon, and a market price of $1,187.66. The tax rate is 40%. The company’s preferred stock currently trades at $65 and pays a $5 annual dividend per share. The company’s common stock, on the other hand, currently trades at $35 a share and just paid $4.56 annual dividend per share. The dividend is expected to grow at a constant rate of 3% a year. In addition, the risk-free rate is 6%, the average return on the market is 10%, and the firm’s beta is 1.5. Given the following information, answer the following questions:

 

  1. What is Big Easy’s before-tax cost of debt Rd and after-tax cost of debt Rd (1-T)?
  2. What is the company’s cost of preferred stock Rp?
  3. What is the company’s cost of common equity from retained earnings Rs using the three models: CAPM, DCF, and the own-bond-yield-plus-risk-premium? Assume the RP for the third method is 3%. State the Rs you will be using to calculate the WACC (the average).
  4. What is the company’s cost of common equity from new stock if the company would incur a 10% flotation cost from issuing new stocks?
  5. What is the flotation cost adjustment?
  6. What is the cost of external equity?
  7. Calculate the WACC if the common equity comes from retained earnings.
  8. Calculate the WACC if the common equity comes from new stocks.
  9. If the company is considering the following capital budgeting projects:

 

Project    Size      Rate of Return

A           $1M              13%

B           $2M              12.5%

C           $2M              12%

D           $2M              11.9%

E           $1M              11%

F           $1M              10.56%

G           $1M             10%

 

Which set of projects should be accepted?

 

 

 
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FIN370 Research project

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FIN370 Research project and presentation guidelines

 

 

The main objective of this project is to apply all the theoretical concepts discussed in class and research how they exist and operate in the context of the Saudi financial world. The aim is to have all students finish the course with not only theoretical knowledge and its applications in the U.S., but to also have a clear understanding of the Saudi financial markets and their instruments.

 

The research paper submitted must include the following:

  • Title page
  • Abstract
  • Introduction
  • Main body
  • Conclusion
  • Bibliography
  • The use of graphs and tables is highly encouraged

 

The paper formatting should be as follows:

  • APA Formatting
  • 8-10 page minimum including bibliography.
  • One-inch sides and bottom margins.
  • Pagination
  • font: 12 Times New Roman
  • Double spacing throughout including bibliography.
  • There should be no extra line space between paragraphs. The first line of a new paragraph should be indented

 

 

I will judge and grade the presentations based on:

  • Quality of content presented
  • Eye contact and tone
  • Respecting time
  • Professional attire & appearance
  • Visual Presentation
  • Creativity
  • Showing clear understanding

 

I will grade the report based on:

  • Adhering to provided outline
  • Layout
  • Logical Flow
  • Providing examples
  • Comprehensiveness of content

 

 

 

I look forward to attending all your interesting presentations and having enriching related discussions afterwards

 

 

 

Best of Luck to all!

 
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ETHICS 301 Prince Sultan University Ethical Auditing on KPMG Company Paper

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Question Description

I need help with a Business question. All explanations and answers will be used to help me learn.

 

1. Write an introduction – a brief discussion on the background of the company you have selected

2. You need to study and discuss the company’s ethical audit based on available information (online and published reports/articles).

A sample assessment questionnaire for the project follows:

Support by top management
– Has management established an ethical “tone at the top” by setting a good example of ethical conduct, providing positive and open communication, and supporting ethical conduct?
– Is the ethics program reviewed at least annually by top management in light of changing business challenges?
– Is there a designated ethics officer or ethics contact?
– Does the ethics code start with a statement from the CEO/President about his commitment to an ethical culture?

Incorporation of ethics at all levels of the organization
– Are supervisors trained as contact points for ethics related questions?
– Is ethics a focus during supplier selection?
– Is ethics a focus during customer contract acceptance?
– Is ethics a focus during internal audits?
– Is an ethical culture ingrained in the organization’s brochures, materials, and website?

Components of an Ethics Program
Ethics Code
– Does the organization have a written ethics code?
– Does the ethics code cover key elements, such as conflicts of interest, financial irregularities, and compliance to laws?
– For publicly traded companies, is the ethics code available publicly / on the company’s website

Ethics Training
– Do employees receive ethics training on a regular basis?
– Does ethics training incorporate the company’s ethics code?

Ethics Hotline
– Does the organization have an ethics hotline?
– Is the ethics hotline confidentiality and non-retaliation policy clearly conveyed to employees?
– For publicly traded companies, is the “receipt, retention, and treatment” of ethics hotline reports regarding “questionable accounting or auditing matters” aligned with the Audit Committee

 

Ethics Awareness
– Is the importance of ethics communicated to all employees on a regular basis via formats such as organization newsletter articles and posters?

3. Conclusion & Recommendations

One paragraph for your concluding remarks and one for your recommendations

4. References

PLEASE KEEP IN MIND that it is impossible to produce an acceptable report if you have not researched widely. Some have failed the assignment because of lack of sufficient research, so it is important to start work on it early. Refer to PSU Digital Library to find relevant articles. Research Report should be maximum 5 pages in length.

 
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Nike assignment Business Strategic and Management case study analysis

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There are three questions about Nike ,

Here is the case study

https://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5

Individual Assignment Questions (Answer and Submit this word file on LMS by 23rd of April)

Student ID : Name :
Date : Topic :

 

  1. In the case of Nike, what’s the first thing a CEO of Nike should do as a business leader?

[5 marks]

 

 

 

  1. An income of $2.28 a day, the base pay of Nike factory workers in Indonesia, is double the daily income of about half the working population. Half of all adults in Indonesia are farmers, who receive less than $1 a day.

Given this, is it correct to criticize Nike for low pay rates for subcontractors in Indonesia? And Should Nike be held responsible for working conditions in foreign factories that it does not own, but where sub-contractors make products for Nike?

Answer this question considering Business Ethics and leader’s roles.

[5 marks]

 

 

 

  1. If sweatshops are a global problem, what might be a global solution to this problem?

Let’s suppose that you are the CEO in Nike or Adidas. How will you resolve this problem as a leader of this industry?

[5 marks]

 

 

 

 

 

 
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