Finance

REPORT STRUCTURE – Part 1 – 1,000 words (excluding tables, references, appendices) Use Headings – to separate the sections 1. Introduction – state the aim of your report and variables you have selected 2. Sampling Method: ? Explain the process of sample selection with reference to an appropriate sampling method. Here you need to explain and justify your sampling procedure using references from books. ? Provide brief details about your target population and state whether your sample is likely to be representative of your target population ? Discuss advantages and disadvantages of your sampling method in relation to other sampling methods. For example, a random sample is appropriate in statistics because it gives every firm in the population equal chance of being selected; however, random sampling does not stratify the population and, therefore, certain attributes/characteristics of firms can be over- or under-represented (e.g. firms in certain industries). ? Apply discussion of the sampling method to your assignment (do not merely paraphrase book’s material). It is not a very good justification to mention that simple random sampling method was chosen because it is ‘simple’, ‘less time-consuming’ and ‘cheap’. 3. Data & Variables – explain the meaning of variables you have selected (including the source of data) and what transformations were made. Here you need to show formulas and explain the ratios chosen (i.e. explain what your ratios show/indicate). Use this file for further explanation of the ratios: Ratios Description.docx You can create a table with the main variables Table 1: Definitions of the main variables Variables Measure/Formula Explanation Profitability ROCE/ROA/Profit Margin 4. Histograms and Descriptive Statistics – Produce histograms and descriptive statistics (min/max, mean/median, standard deviation, skewness and kurtosis) for profitability (ROCE or ROA or Profit Margin) and the other two variables you have (e.g. Firm Size, Liquidity, Tangibility, Asset Growth, Debt Ratio). Present your Histograms and Descriptive Statistics within the main text: ? Histograms: comment on the shape of the distribution. Additionally, you can comment on: o How many companies made a profit and how many made a loss. Are there any outliers? o How many companies have liquidity ratio of above and below 1. Are there any outliers? o If you choose firm size, you can show both the original variable (Sales in th GBP) and the LN(Sales). This can help your interpretation for firms size, i.e. the largest company had £Xm of Sales in 2018. o Do your histograms and statistics show any outliers? ? Descriptive Stats: comment on mean/median/min/max/standard deviation/skewness & kurtosis If there is any outlier and you have made adjustments to the variables (i.e. created a new variable and removed the outlier), please mention and justify how & why you did 5. Conclusion – a brief summary of what was done and what results were obtained. ? ‘This report examines….’ ? ‘The main results from histograms show that most companies in the sample [here you can briefly comment on profitability and other variables]’ REPORT STRUCTURE – Part 2 – 1,500 words (excluding tables, references, appendices) Use Headings to separate the sections • Introduction – state the aim of your report and the variables you selected to conduct the analysis (see Assignment part 2 to find the aim of the report) – approx. 100 words. Outliers and Adjustments – discuss any adjustments that were made to your variables. approx. 200-300 words (depends on the number of outliers in your dataset). If there are any outliers and you have made adjustments to the variables (i.e. created a new variable and removed the outlier), please mention and justify how & why you did it. To provide justification use your descriptive statistics (skewness/kurtosis) as well as histograms. You can relate your discussion to the assumptions of correlation and regression analysis (sensitive to outliers). Refer to material uploaded in week-6&7 resources – there are references you can use as well. If your data does not have outliers, you can discuss/justify that there are no outliers in your data and explain why adjustments were not required (based on skewness and kurtosis values and assumptions of correlation and regression analysis). • Correlation Analysis (Approx. 250-350 words) Produce Scatterplots. The first step in the correlation analysis would usually involve producing scatter plots to visually identify whether there is any linear association between profitability (ROCE, ROA or profit margin) and each of the other two variables you have (LNSales, Liquidity (Current Ratio), Tangibility, Asset Growth, Debt Ratio). If you removed any outliers, you can show the scatter plot with and without outliers and compare the results. Produce correlation table and comment on the results. Your correlation table should have one profitability ratio (ROCE, ROA or profit margin) and the other two variables you have (e.g. Firm Size (LNSaless), Liquidity (Current Ratio), Tangibility, Asset Growth, Debt Ratio). Present your Tables within the main text. – Discuss/comment on the relationship between profitability and each of the other two variables. – Check whether there is any potential problem of multicollinearity (if you perform multiple regression analysis). At this stage you need to choose whether you will conduct simple or multiple regression analysis. It would be good to justify your choice (for example, based on multicollinearity (relationship between Xs); number of observations; articles you read). Excel file (if you use Excel for your analysis): FTSEALLSHARE_AllFirms_ANALYSIS Example.xlsx ? • Regression Analysis – either simple or multiple: approx. 400-500 words. ? State the hypotheses that are tested in this report ? Discuss the main results in relation to the significance levels and the sign of the relationship. State whether your results show evidence in support of the hypothesized relationship. Here you can also discuss R2 and Adj. R2 (and F test for Multiple Regression). ? You may wish to discuss whether your result was expected. Here you could provide a comparison of your results with the results obtained from the correlation analysis and previous findings (i.e. use articles uploaded on Canvas under “Articles for Reading”). • Limitations – Discuss limitations of your study (e.g. sample size, variables used, limitations of correlation and linear regression methods used) approx. 250-350 words. • Conclusion – approx. 100-150 words. – Based on your results, draw a conclusion on the factors influencing firm profitability. ‘This report examines….’ ‘The main results from correlation and regression analysis show……’ [comment on the main factors related to profitability according to your results] – You can also make suggestions for further research in relation to factors that could influence firm performance (i.e. what improvements could be made in future study – more observations; more years; more variables).

we need to do 3 documents based on the case: PowerPoint: introduction about the case, what is it about? Word: Formulas and briefly explain what are functions or meaning of these formulas in your solution. because of this file for theoretical discussion. just brief definitions would be enough Excel: the solution and we need to explain the solution and how we did it

Present Marketing Strategies   Instructions Your company’s marketing department promotes the products and interacts with the customers, sales force, and supply chain. They are also in charge of forecasting sales for the company. In a PowerPoint presentation that you will deliver at the next corporate board meeting, analyze the marketing strategies used by the company: 1.   Use this week’s course readings and supplemental readings to define and describe marketing and marketing strategies. 2.   Examine your marketing strategies in the CAPSIM simulation, and then describe the marketing decisions that you had to make, including specific examples. 3.   Discuss the results of your marketing efforts. 4.   Conclusion Length:  Your presentation should be 7–10 slides and should have a minimum of 100–150 words in the Notes area of each slide to further provide substance and support for the outline information on the slide. In addition, you must record your actual presentation to show your oral communication skills.  Resources:  Supplement this weeks’ readings with a minimum of three additional scholarly articles.

Research the development, components and the analyses of the statement of cash flows. You will need to become very familiar with the statement of cash flows and the components in order to successfully respond to the questions listed below. Your analysis of cash flow should address the following points: Present and describe the components of the statement of cash flows. Use illustrative numerical examples to clarify the discussion. Describe the two alternative methods to develop and present the statement of cash flows. Using one of the two methods, discuss how the different components of the statement of cash flows either serve to increase or decrease the cash account. Discuss what meaning this can have for the analyst. Identify two Statements of cash flow for two different companies. You might find these companies within the textbook or more basically gather the information from the financial statements of two known companies by looking through their web sites (investor relations) Compare the two statements and offer insight for which of the statements seems to represent a stronger company. Discuss. Support your paper with a minimum of five (5) external resources In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Length: 5-7 pages not including title and reference pages Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic

This must be about GALESBURG, ILLINOIS For your municipality find the most recent operating budget. What is the total operating budget for your municipality? How much revenue comes from property tax, sales tax, and the LGDF? What other sources of revenue do you find interesting? What are the three largest expenditures for the municipality and how much are they? What if any information can you find regarding the municipalities financial position given the Covid situation? How would you re-balance the budget? Share any other insights you find interesting.

Your probationary period at the Cosmo K Manufacturing Group continues. For this week’s project, Gerry has asked you to consider two mutually exclusive investments and incorporate risk considerations into the process of evaluation. The Cosmo K Manufacturing Group is considering the addition of a new smelting machine or a new paving machine. The two investments are mutually exclusive; if one is selected, the other is rejected. The annual cash flows after taxes and the effects of depreciation, which begin one year from project start, and their respective probabilities are given below: Smelting Machine Paving Machine Probability Net Cash Flows per Year Probability Net Cash Flows per Year 0.2 $14,100.00 0.2 $2,000.00 0.5 $16,000.00 0.5 $16,000.00 0.2 $17,000.00 0.2 $22,000.00 0.1 $20,000.00 0.1 $33,000.00 Each project has an expected life of 4 years and will cost $45,000. The riskier project will be evaluated at the company’s WACC plus 3%, and the less risky project will be evaluated at the company’s WACC. Cosmo K has the following capital structure: Debt: 30% Preferred stock: 16% Common stock: 54% This capital structure is current and consistent with the company’s objectives and so will be used to raise any new funds. All new debt will be raised using long-term bonds, with no short-term debt being used for the new project. New bonds will have a coupon rate of 13%. The company’s common stock is currently selling for $65 per share, paid a dividend of $4.25 last year, and has an expected growth rate of 6% indefinitely. There will be no floatation costs on new common stock. Preferred stock can be sold for $90 per share and pays a dividend of $10, with a floatation cost of $2 per share. Currently, the market risk premium is 5% and the risk-free rate is 8%. Cosmo K’s beta coefficient is currently 1.23 and is expected to be consistent for the foreseeable future. The tax rate is expected to be 40% for the next decade. Tasks: Answer the following questions: What is the component cost of capital for the company? Calculate using the CAPM. What is the company’s WACC? What are the expected cash flows for the investments? What is the standard deviation for each investment? What is the coefficient of variation for each investment? Given the data above, which investment has the higher risk? What is the expected net present value (NPV) for each investment? What is the internal rate of return (IRR) of the investments? According to the decision rules for the NPV and those for the IRR, is there an acceptable project? Explain your answer. Is there a conflict between the two decision methods? If so, what would you use to recommend a project?

When studying capital structure and dividend decisions, multiple theories were presented that influence capital structure decisions or dividend policy decisions affecting the price of a stock. Choose one of these theories and explain its strengths and weaknesses.

This paper should provide your thoughts on how accountants and auditors play a role in ensuring good corporate governance. What ethical issues are raised for any of these parties and how might they be addressed? How do they monitor and influence governance?

REPORT STRUCTURE – Part 1 – 1,000 words (excluding tables, references, appendices) Use Headings – to separate the sections 1. Introduction – state the aim of your report and variables you have selected 2. Sampling Method: ? Explain the process of sample selection with reference to an appropriate sampling method. Here you need to explain and justify your sampling procedure using references from books. ? Provide brief details about your target population and state whether your sample is likely to be representative of your target population ? Discuss advantages and disadvantages of your sampling method in relation to other sampling methods. For example, a random sample is appropriate in statistics because it gives every firm in the population equal chance of being selected; however, random sampling does not stratify the population and, therefore, certain attributes/characteristics of firms can be over- or under-represented (e.g. firms in certain industries). ? Apply discussion of the sampling method to your assignment (do not merely paraphrase book’s material). It is not a very good justification to mention that simple random sampling method was chosen because it is ‘simple’, ‘less time-consuming’ and ‘cheap’. 3. Data & Variables – explain the meaning of variables you have selected (including the source of data) and what transformations were made. Here you need to show formulas and explain the ratios chosen (i.e. explain what your ratios show/indicate). Use this file for further explanation of the ratios: Ratios Description.docx You can create a table with the main variables Table 1: Definitions of the main variables Variables Measure/Formula Explanation Profitability ROCE/ROA/Profit Margin 4. Histograms and Descriptive Statistics – Produce histograms and descriptive statistics (min/max, mean/median, standard deviation, skewness and kurtosis) for profitability (ROCE or ROA or Profit Margin) and the other two variables you have (e.g. Firm Size, Liquidity, Tangibility, Asset Growth, Debt Ratio). Present your Histograms and Descriptive Statistics within the main text: ? Histograms: comment on the shape of the distribution. Additionally, you can comment on: o How many companies made a profit and how many made a loss. Are there any outliers? o How many companies have liquidity ratio of above and below 1. Are there any outliers? o If you choose firm size, you can show both the original variable (Sales in th GBP) and the LN(Sales). This can help your interpretation for firms size, i.e. the largest company had £Xm of Sales in 2018. o Do your histograms and statistics show any outliers? ? Descriptive Stats: comment on mean/median/min/max/standard deviation/skewness & kurtosis If there is any outlier and you have made adjustments to the variables (i.e. created a new variable and removed the outlier), please mention and justify how & why you did 5. Conclusion – a brief summary of what was done and what results were obtained. ? ‘This report examines….’ ? ‘The main results from histograms show that most companies in the sample [here you can briefly comment on profitability and other variables]’ REPORT STRUCTURE – Part 2 – 1,500 words (excluding tables, references, appendices) Use Headings to separate the sections • Introduction – state the aim of your report and the variables you selected to conduct the analysis (see Assignment part 2 to find the aim of the report) – approx. 100 words. Outliers and Adjustments – discuss any adjustments that were made to your variables. approx. 200-300 words (depends on the number of outliers in your dataset). If there are any outliers and you have made adjustments to the variables (i.e. created a new variable and removed the outlier), please mention and justify how & why you did it. To provide justification use your descriptive statistics (skewness/kurtosis) as well as histograms. You can relate your discussion to the assumptions of correlation and regression analysis (sensitive to outliers). Refer to material uploaded in week-6&7 resources – there are references you can use as well. If your data does not have outliers, you can discuss/justify that there are no outliers in your data and explain why adjustments were not required (based on skewness and kurtosis values and assumptions of correlation and regression analysis). • Correlation Analysis (Approx. 250-350 words) Produce Scatterplots. The first step in the correlation analysis would usually involve producing scatter plots to visually identify whether there is any linear association between profitability (ROCE, ROA or profit margin) and each of the other two variables you have (LNSales, Liquidity (Current Ratio), Tangibility, Asset Growth, Debt Ratio). If you removed any outliers, you can show the scatter plot with and without outliers and compare the results. Produce correlation table and comment on the results. Your correlation table should have one profitability ratio (ROCE, ROA or profit margin) and the other two variables you have (e.g. Firm Size (LNSaless), Liquidity (Current Ratio), Tangibility, Asset Growth, Debt Ratio). Present your Tables within the main text. – Discuss/comment on the relationship between profitability and each of the other two variables. – Check whether there is any potential problem of multicollinearity (if you perform multiple regression analysis). At this stage you need to choose whether you will conduct simple or multiple regression analysis. It would be good to justify your choice (for example, based on multicollinearity (relationship between Xs); number of observations; articles you read). Excel file (if you use Excel for your analysis): FTSEALLSHARE_AllFirms_ANALYSIS Example.xlsx ? • Regression Analysis – either simple or multiple: approx. 400-500 words. ? State the hypotheses that are tested in this report ? Discuss the main results in relation to the significance levels and the sign of the relationship. State whether your results show evidence in support of the hypothesized relationship. Here you can also discuss R2 and Adj. R2 (and F test for Multiple Regression). ? You may wish to discuss whether your result was expected. Here you could provide a comparison of your results with the results obtained from the correlation analysis and previous findings (i.e. use articles uploaded on Canvas under “Articles for Reading”). • Limitations – Discuss limitations of your study (e.g. sample size, variables used, limitations of correlation and linear regression methods used) approx. 250-350 words. • Conclusion – approx. 100-150 words. – Based on your results, draw a conclusion on the factors influencing firm profitability. ‘This report examines….’ ‘The main results from correlation and regression analysis show……’ [comment on the main factors related to profitability according to your results] – You can also make suggestions for further research in relation to factors that could influence firm performance (i.e. what improvements could be made in future study – more observations; more years; more variables).

Describe and explain the behavior of thrifts, both insolvent and solvent, in the early 1980’s. Use the model of firm equity as a call option in your analysis.