Finance

Review the video and disuss the topic of new urbanism. 4 full, typed pages not including title page and reference pages and include a minimum of 3 references Sections • Title page (1 point) • Introduction (3 points) • Background of Problem (5 points) • Solutions (5 points) • Conclusions and opinions (5 points) • References (1 point)? The link for the video:  https://www.youtube.com/watch?time_continue=1&v=Wai4ub90stQ&feature=emb_logo&ab_channel=TED

As 4th year business majors I’d like you to research the Uber IPO. (It happened in 2019) I have a question and a thought. Where did the IPO money go? (did it go to financing expansion or into the pockets of the people who started Uber…………(Did the original owners get rich on this IPO)? On the first day of trading did it go well? Price rise?. I’m a conservative financial professional – Can someone explain Bitcoin to me. It’s pricing seems to be a rollercoaster. Elon Musk? Genius or not so much? What’s the owner’s equity in the Tesla balance sheet?

In this ever-expanding global market, if you do not now work for a global organization, it is very likely someday you will. Even if you work for a local company today, selling goods internationally is becoming ever more common. As you consider this likelihood, you have to think about the kind of financial and budgeting considerations that come into play. After all, the sale of goods over the Internet means a product sold in your local town may be purchased by someone around the world. In some cases, companies make the decision to purposely seek after and expand their sales initiatives internationally to increase their market share and improve their odds of reaching the right customer.  Global expansion requires many elements of analysis and planning. Some of those factors are beyond the scope of this course, but the budgeting and financial planning of those activities are important. These planning ideas can include budgeting for costs related to human resources, training, marketing, real estate, legal filings. For this week, you are being asked to act as a planner for a company expanding into a global market. You may wish to reflect on what Nutella did to expand out of Italy. Please see the instructions below. Assignment Instructions:  Think of a company in your area that makes a product that you really like. If you cannot think of a company or product you can create one. Now, imagine you are asked to present a budget and financial plan to help the company to take that favorite local product globally. If you wish, you may select a single country to focus on. In your capacity as a budgeting and financial management consultant for this company, you have been asked to create a financial plan with a 3-year annualized budget for expansion. Your plan should include budgeting analysis of licensing, legal recognition, trademarking, partnerships (if needed), marketing, advertising, warehousing, distribution, quarterly market reporting, and other elements you wish to add. Your goal is to recommend a budget that will cover the expansion of the product distribution into at least three new countries during the 3 years. Remember, this is a marketing piece showing your skills as a budgeting and financial consultant. You really want to impress your clients with a solid budget and analysis on how to make their local product a global product.

In this ever-expanding global market, if you do not now work for a global organization, it is very likely someday you will. Even if you work for a local company today, selling goods internationally is becoming ever more common. As you consider this likelihood, you have to think about the kind of financial and budgeting considerations that come into play. After all, the sale of goods over the Internet means a product sold in your local town may be purchased by someone around the world. In some cases, companies make the decision to purposely seek after and expand their sales initiatives internationally to increase their market share and improve their odds of reaching the right customer.  Global expansion requires many elements of analysis and planning. Some of those factors are beyond the scope of this course, but the budgeting and financial planning of those activities are important. These planning ideas can include budgeting for costs related to human resources, training, marketing, real estate, legal filings. For this week, you are being asked to act as a planner for a company expanding into a global market. You may wish to reflect on what Nutella did to expand out of Italy. Please see the instructions below. Assignment Instructions:  Think of a company in your area that makes a product that you really like. If you cannot think of a company or product you can create one. Now, imagine you are asked to present a budget and financial plan to help the company to take that favorite local product globally. If you wish, you may select a single country to focus on. In your capacity as a budgeting and financial management consultant for this company, you have been asked to create a financial plan with a 3-year annualized budget for expansion. Your plan should include budgeting analysis of licensing, legal recognition, trademarking, partnerships (if needed), marketing, advertising, warehousing, distribution, quarterly market reporting, and other elements you wish to add. Your goal is to recommend a budget that will cover the expansion of the product distribution into at least three new countries during the 3 years. Remember, this is a marketing piece showing your skills as a budgeting and financial consultant. You really want to impress your clients with a solid budget and analysis on how to make their local product a global product.

Understanding how capital markets function is critical to the effective management of corporate growth opportunities as the ability to raise funds will have a direct influence on the success of failure of future projects. In this assignment, write a paper in which you discuss the following: 1. Who are the suppliers of loanable funds? 2. What factors influence the supply of funds available to a corporation? 3. What influences changes in the supply and demand curves? 4. What are the six factors that determine the nominal interest rate on a security? You can use the above questions as headers. Please use APA 7th edition format. All sources should be scholarly sources and proper in text citations. Include introduction and conclusion.

Discuss the impact of depreciation expense on the cash flow analysis of a capital project.  Also, discuss the types of leasing arrangements and their pros and cons relating to depreciation expense.  References to use:  https://bookboon.com/en/strategic-financial-management-ebook https://2012books.lardbucket.org/pdfs/finance-for-managers.pdf  https://smallbusiness.chron.com/impact-depreciation-expense-profitability-55349.html (if applicable)

Paul Duncan, financial manager of EduSoft Inc., is facing a dilemma. The firm was founded 5 years ago to provide educational software for the rapidly expanding primary and secondary school markets. Although EduSoft has done well, the firm’s founder believes an industry shakeout is imminent. To survive, EduSoft must grab market share now, and this will require a large infusion of new capital. Because he expects earnings to continue rising sharply and looks for the stock price to follow suit, Mr. Duncan does not think it would be wise to issue new common stock at this time. On the other hand, interest rates are currently high by historical standards, and the firm’s B rating means that interest payments on a new debt issue would be prohibitive. Thus, he has narrowed his choice of financing alternatives to: (1) preferred stock, (2) bonds with warrants, or (3) convertible bonds. a. How does preferred stock differ from both common equity and debt? Is preferred stock more risky than common stock? What is floating rate preferred stock?  b. How can knowledge of call options help a financial manager to better understand warrants and convertibles? c. Mr. Duncan has decided to eliminate preferred stock as one of the alternatives and focus on the others. EduSoft’s investment banker estimates that EduSoft could issue a bond-with-warrants package consisting of a 20-year bond and 27 warrants. Each warrant would have a strike price of $25 and 10 years until expiration. It is estimated that each warrant, when detached and traded separately, would have a value of $5. The coupon on a similar bond but without warrants would be 10%.   (1) What coupon rate should be set on the bond with warrants if the total package is to sell at par ($1,000)?   (2) When would you expect the warrants to be exercised? What is a stepped-up exercise price?   (3) Will the warrants bring in additional capital when exercised? If EduSoft issues 100,000 bond-with-warrant packages, how much cash will EduSoft receive when the warrants are exercised? How many shares of stock will be outstanding after the warrants are exercised? (EduSoft currently has 20 million shares outstanding.)   (4) Because the presence of warrants results in a lower coupon rate on the accompanying debt issue, shouldn’t all debt be issued with warrants? To answer this, estimate the anticipated stock price in 10 years when the warrants are expected to be exercised, and then estimate the return to the holders of the bond-with-warrants packages. Use the corporate valuation model to estimate the expected stock price in 10 years. Assume that EduSoft’s current value of operations is $500 million and it is expected to grow at 8% per year.   (5) How would you expect the cost of the bond with warrants to compare with the cost of straight debt? With the cost of common stock (which is 13.4%)?   (6) If the corporate tax rate is 40%, what is the after-tax cost of the bond with warrants?   d. As an alternative to the bond with warrants, Mr. Duncan is considering convertible bonds. The firm’s investment bankers estimate that EduSoft could sell a 20-year, 8.5% coupon (paid annually), callable convertible bond for its $1,000 par value, whereas a straight-debt issue would require a 10% coupon (paid annually). The convertibles would be call protected for 5 years, the call price would be $1,100, and the company would probably call the bonds as soon as possible after their conversion value exceeds $1,200. Note, though, that the call must occur on an issue-date anniversary. EduSoft’s current stock price is $20, its last dividend was $1, and the dividend is expected to grow at a constant 8% rate. The convertible could be converted into 40 shares of EduSoft stock at the owner’s option.   (1) What conversion price is built into the bond?   (2) What is the convertible’s straight-debt value? What is the implied value of the convertibility feature?   (3) What is the formula for the bond’s expected conversion value in any year? What is its conversion value at Year 0? At Year 10?   (4) What is meant by the “floor value” of a convertible? What is the convertibles expected floor value at Year 0? At Year 10?   (5) Assume that EduSoft intends to force conversion by calling the bond as soon as possible after its conversion value exceeds 20% above its par value, or 1.2 $1,000 = $1,200. When is the issue expected to be called?   (6) What is the expected cost of capital for the convertible to EduSoft? Does this cost appear to be consistent with the riskiness of the issue? (7) What is the after-tax cost of the convertible bond? e. Mr. Duncan believes that the costs of both the bond with warrants and the convertible bond are close enough to call them even and that the costs are consistent with the risks involved. Thus, he will make his decision based on other factors. What are some of the factors that he should consider? f. How do convertible bonds help reduce agency costs? g. Analyze the most effective strategies to manage multinational and organizational finances. h. Evaluate various strategies for effective financial management.

How would participating in the Boys and Girls Club of America have relevance to the course concepts of any two (2) of the following: The Organization & Financial Environment Fixed Income Securities Stocks and Options Project Valuation – Cost of Capital, Budgeting Corporate Valuation & Governance Capital Distributions and Structure Management of Global Financial Operations Financial Decision-Making and Strategic Planning Strategic Finance Portfolio Theory & Options Performance Measurement

Determinants of interest and its term structure According to the US Debt Clock https://www.usdebtclock.org/ the national debt is continually increasing. Research the current Treasury Bill Rate and discuss whether or not the rate is low or high. If you consider the Loanable Funds Theory, does the current interest rate make sense when you consider things such as the national debt, budget deficit, among others? Why or why not?

For your second SLP assignment, continue to do research on the company you chose to write about for your Module 1 SLP. This time you will be doing research about the valuation of the company to try to determine if its stock price is overvalued or undervalued. You can use Google Finance, Yahoo Finance, or similar Web pages to find the financial information about this company. Write a 2- to 3-page paper with the following items: What is the P/E ratio of this company? How does the P/E ratio compare to other companies in this industry? Based on the P/E ratio, do you think the company is overvalued or undervalued? Find the company’s balance sheet. Calculate the book value of each share. This can be done by taking the total assets and subtracting total liabilities. Then divide the number you get by the total number of outstanding shares. Is the number you get higher or lower than the current price of the share? Based on what you’ve found, would you say the stock is overvalued or undervalued? Finally, do a search on what different analysts have to say about your company. Do they generally recommend buying the stock or selling the stock? What reasons to they give for their assessment? Find at least three analyst reports about this company.