Finance

The course project must include at least the following sections; you may want to include others if you deem them appropriate: Introduction Challenges and Problems (associated with your topic) Review of the Literature Critical Analysis of Challenges/Problems Recommended Solutions Implementation of Solutions Justification of Solutions Conclusion References The course project must be seven to ten pages, double-spaced, not counting the cover page and the references pages

Topic: Stewardship of ResourcesThread: Owners, managers, and employees all are accountable to some extent for their use of resources owned by others. In light of what you have learned so far in this course and in your other business courses, how can you apply the concepts of biblical stewardship in your life and business? Read this excerpt from an article by R. C. Sproul, then submit a response explaining your agreements, disagreements, and/or questions regarding the idea as well as any implications it may have in your life and business.Must have a verse from the bible related to the topic.Thread must be at least 250 words, demonstrate course-related knowledge, and be supported with at least 2 citations in current APA format. Acceptable sources include the course textbook, scholarly journal articles, and the Bible.Name of book: Block, S., Hirt, G., & Danielsen, B. (2019). Foundations of financial management (17th ed.). Boston, MA: McGraw-Hill Custom.

Topic: Long-Term FinancingThread: Discuss the following question: Commercials suggesting that “buying gold” would be a wise decision are commonly aired. Explain the difference between “hedging” and “speculating” by explaining why someone who wishes to “hedge” against inflation might choose to purchase gold. Explain why someone who wishes to “speculate” might also choose to purchase gold. Relate the motivations of “hedging” and “speculating” to the topic of Christianity.1 Scripture verses from the bible that relate to this topic.Thread must be at least 250 words, demonstrate course-related knowledge, and be supported with at least 2 citations in current APA format. Acceptable sources include the course textbook, scholarly journal articles, and the Bible.Name of book: Block, S., Hirt, G., & Danielsen, B. (2019). Foundations of financial management (17th ed.). Boston, MA: McGraw-Hill Custom.

·       Analyze your chosen company’s current business and financial conditions and create a brief introduction to your company that includes the following. o   The mission of the company o   A descriptions of the company’s current business operation, competitors, financial condition o   General information that explains why the company interesting to you as an analyst.• Explain how you think this company might provide value if you were to acquire their stock. • Assess how the company appears to approach issues of ethical behavior and social responsibility and how this might affect its value.

Written Assignment 3 Answer all of the following questions/problems and submit them to your mentor in a Word document. You should use a financial calculator and Excel to solve the problems. Remember: You must export your table(s) from Excel to Word before submitting your work. Consult the Course Calendar for due dates. Note: You will be able to use a financial calculator for your midterm exam, but Excel will not be available. Discuss the differences between efficiency and effectiveness. Why is it important for small business owners to understand the difference between profit and profitability? What financial ratio is used to determine profitability? Sam quit a $30,000-a-year job with a local heating and air conditioning firm to go into business for himself. After his first year in business, his accountant showed him an income statement that indicated Sam’s firm had a profit of $40,000. During this year Sam had drawn a salary of $20,000. What was Sam’s accounting profit, his entrepreneurial profit, and his opportunity cost? Explain the difference between accounting and entrepreneurial profit. Discuss the differences between operating and financial leverage. You are going to open a business making custom cabinets. You can sell each cabinet for $80. It takes a cabinet-maker approximately 45 minutes to make one cabinet. Each cabinet-maker works an eight-hour day, earning $18 per hour. Each cabinet will use $25 in raw materials. You usually produce cabinets 20 days a month and can employ two cabinet-makers. You estimate that your fixed costs are $5,000 per month. What is your contribution margin? How many cabinets must you make each month to break even? What is your total monthly revenue if you want to earn a $2,000 profit? Distinguish between gross working capital and net working capital. Discuss the role that marketable securities play in current asset management. Explain the problems that a firm may encounter when it does not provide for accrued liabilities. Jane James owns an appliance store. She normally receives $50,000 worth of appliances per month. She does not like to owe people money and always pays her bills on the day she receives the invoice. Someone told her that if she delayed payment, she could actually increase her profit because the money would be earning interest in her account. She went through her bills and found that she actually had an additional ten days, on average to pay her invoices. She also found that she was earning 5 percent interest on the money she had in her money market savings account. If she delayed payment by ten days, how much additional interest would she earn for the year? Explain how this problem represents a disbursement float. Larry’s Lawn Equipment Company gives terms of 2/10, n/30. Larry has annual credit sales of $500,000 and average accounts receivable of $60,000. What is Larry’s accounts receivable turnover? What is Larry’s average daily collection? What is the relationship between the terms that Larry is giving and his average daily collection? If Larry has accounts receivable of $100,000 rather than $60,000: What is Larry’s accounts receivable turnover? What is Larry’s average collection period? What should Larry do, if anything?

Topic: Why do the arithmetic average return and the geometric average return differ? Explain.

Visit Morningstar, Yahoo! Finance, Google Finance, or Bloomberg to identify the top 10 holdings, previous year’s performance, and expected dividend yield, expense ratio, and minimum investment amount for one mutual fund and ETF of your choice. Avoid duplicating a fund posted by a classmate. Identify one advantage and one disadvantage of mutual funds and ETFs for investors.

weekly class discussion question, 180 words, APA, one reference:Estimating cash flows isn’t difficult, but it is complicated, as there are a lot of little details to keep track of. Having a systematic approach to handling and arranging details is key to successful finance management and advancing organizational goals.Respond to the following in a minimum of 180 words:Discuss a business example that shows how depreciation and accelerated depreciation can affect project cash flows.What would your process be to ensure that all related financial details are allocated for and tracked so as to assist in making sound business decisions?

Income Statement Analysis: In this section, answer the following for the trend analysis: What is the total revenue, total costs of revenue and net income for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it.  See the section on ratio analysis below for ideas. (1 page ) •Balance Sheet Analysis: In this section, answer the following for the trend analysis: What are the total assets, liabilities and shareholder equity for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it.  See the section on ratio analysis below for ideas. (1 page) •Cash Flow Analysis: In this section, answer the following for the trend analysis: What are the total cash flows from operating, investing and financing activities as well as the change in cash and cash equivalents for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it.  See the section on ratio analysis below for ideas. (1 page) •Conclusion: In this section, answer the following: What are the most important things you have discovered in your analysis?  What are some conclusions you reached? What are the highlights of your paper? 1-page Ratio Analysis: In addition to the trend analysis above, it is customary to also analyze ratios.  Some commonly used ratios are •Beta: A measure of risk that is usually published and not calculated by you (A beta greater than 1 suggests that the company is more volatile/risky than the market) •Current ratio = Current Assets/Current Liabilities (A current ratio greater than 1 means the company has enough assets to cover all current liabilities should the need arise) •Quick ratio = (Current Assets – Inventory)/Current Liabilities (When you are dealing with a company that carries a lot of inventory, a quick ratio is a better indicator than a current ratio because it acknowledges that inventory is not typically liquid). •Profit Margin = Net Income/Sales (Represents how much of each dollar in sales remains after all costs are covered) •Return on Equity = Net income/Total equity (Represents the return for all holders of equity in that company) •EBIT Return on Assets = EBIT/Total assets (Represents the pre-tax return on the total net investment in the firm from operations or alternatively, how efficiently management has used assets) •Debt-equity ratio = Total debt/Total equity (Represents the long term solvency or financial leverage in that company)

You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $2.1 million in anticipation of using it as a toxic waste dump site but has recently hired another company to handle all toxic materials. Based on a recent appraisal, the company believes it could sell the land for $2.3 million on an after-tax basis. In four years, the land could be sold for $2.4 million after taxes. The company also hired a marketing firm to analyze the zither market, at a cost of $125,000. An excerpt from the marketing report as follows: The zither industry will have a rapid expansion in the next four years. With the brand name recognition that PUTZ brings to bear, we feel that the company will be able to sell 3,600, 4,300, 5,200, and 3,900 units each year for the next four years, respectively. Again, capitalizing on the name recognition of PUTZ, we feel that a premium price of $750 can be charged for each zither. Because zithers appear to be a fad, we feel at the end of the four-year period, sales should be discontinued. PUTZ believes that fixed costs for the project will be $415,000 per year, and variable costs are 15 percent of sales. The equipment necessary for production will cost $3.5 million and will be depreciated according to a three-year MACRS schedule. At the end of the project, the equipment can be scrapped for $350,000. Networking capital of $125,000 will be required immediately. PUTZ has a 38 percent tax rate, and the required return on the project is 13 percent. What is the NPV of the project? Provide your explanations and definitions in detail and be precise. Explain in your own words. Provide references for content when necessary. Support your statements with peer-reviewed in-text citation(s) and 5 reference(s). Abstract and conclusion required