FIN 350 All Week Discussions Questions Package

FIN 350 All Week Discussions Questions PackageTo get this tutorial follow this link:http://dodohelp.com/FIN-350/FIN-350-All-Week-Discussions-Questions-Package-Grand-CanyonContact us at:[email protected] 350FIN 350 Module 1 Discussion 1Identify a party (other than stockholders) that can be classified as a stakeholder for a corporation. What obligationdoes the corporation have to this party? Describe a situation where stockholder claims on the organization mightconflict with the claims of this stakeholder group. If you were CEO, how would you resolve these conflicts?Identify a party (other than stockholders) that can be classified as a stakeholder for a corporation.FIN 350 Module 1 Discussion 2During the summer and fall of 2008, the U.S. financial system and financial systems around the world appeared to beon the verge of collapse. How did we get into this condition? What did we do to get out of it? How can we preventanother such scenario in the future?FIN 350 Module 2 Discussion 1Individuals performing ratio analysis include (1) banks evaluating potential loan applications from small businesses,(2) investment analysts evaluating the investment quality of a firm’s stock, and (3) internal management, assessingthe firm’s current strengths and weaknesses. Select one of the three parties above, and for that party, identify whichof the five ratio groups (liquidity, activity, debt, profitability, or market) would be of most value and which wouldprobably be of least value. Explain the reasons behind your choices.FIN 350 Module 2 Discussion 2Who are the major policy makers for the Federal Reserve System and how do they rise to such an influentialposition? How do these policymakers influence national economic objectives? Refer to Figure 5.1 on page 100 of thetextbook. What part of this relationship could be influenced by the citizens of the country? Why?FIN 350 Module 3 Discussion 1Is it possible for a firm to have a positive profit and yet have a negative cash flow? Describe a scenario under whichthis might occur? Where does the money from profits go in such a case?FIN 350 Module 3 Discussion 2If you were to examine the cash budgets of almost any organization, you would find distinct seasonal patterns of cashinflows and outflows. These patterns cause months during the year when almost every business is flush with cash,and other months in which things are extremely tight. Select an organization in which you are (were) employed, anddescribe the seasons of the year when this firm was flush with cash and the seasons when this firm was typically on atight budget. Why did these times occur?FIN 350 Module 4 Discussion 1One of the basic financial principles is that the value of any asset (whether it be a stock, a bond, or a firm as a whole)is the present value of that asset’s future cash flows. As you learned in this chapter, finding present values requiresdetermining a discount rate. Assume you want to buy a business, and you want to find the present value of its futurecash flows. Name at least one variable you should consider in determining the correct discount rate to use and

explain its role in discount rate determination. If possible, try to identify a variable that has not yet been mentioned byyour classmates.FIN 350 Module 4 Discussion 2Look at the Focus on Ethics box (“How Fair Is Check Into Cash”) in Chapter 5 of the textbook. These, businessesquote an interest rate of 15% to loan customers (most of whom are fairly unsophisticated) and yet the EAR of theloan is close to 400%. Explain the wide discrepancy between these rates. What do you believe is the correctregulatory response to these types of lenders?FIN 350 Module 5 Discussion 1There is an inverse relationship between interest rate changes and changes in the market price of outstanding bonds.Explain the logic behind this principle. Given this relationship, do you believe it is currently a good time to buy bonds?Why or why not?FIN 350 Module 5 Discussion 2Agencies such as Moody’s, Fitch, and Standard & Poor's rate the default risk of various municipal and corporatebonds. While their rating systems are proprietary, it is widely known that they rely on financial ratios as key inputs totheir bond ratings. Which financial ratios (list at least two) do you believe would be the most helpful to rate corporatebonds? Why?FIN 350 Module 6 Discussion 1Several stock valuation models were described in the chapter, including zero-growth, constant growth, variablegrowth, free cash flow, book value, and P/E multiple models. Which of these do you believe would generate the mostaccurate value estimates for most firms? Explain your choice.FIN 350 Module 6 Discussion 2Read the Focus on Ethics box (“Psst! Have You Heard Any Good Quarterly Earnings Forecasts Lately?”). Explainwhat quarterly earnings guidance is, and what purpose it is supposed to serve. If you were a corporate CEO, wouldyou discontinue this practice? Why or why not?FIN 350 Module 7 Discussion 1Diversification occurs when stocks with low correlations of returns are placed together in a portfolio. Identify at leastone type of firm that might exhibit low correlations of returns with the overall stock market? Explain why thecorrelations of these firms are expected to be low.FIN 350 Module 7 Discussion 2In general, the cost of debt capital is lower than the cost of equity capital. For this reason, it might be expected thatfirms with high debt ratios would have a lower weighted average cost of capital. Explain at least one reason why thisis not the case.FIN 350 Module 8 Discussion 1Which capital investment technique does the discussion in the textbook favor? Why? Do you agree with thisassessment?FIN 350 Module 8 Discussion 2Assume your firm has multiple investments to consider each with differing risk levels. How can differing risk levels beincorporated into NPV analysis? How can they be incorporated into IRR analysis?