devry fin515 week 5, 6 and week 7 discussion latest 2016 sep
Capital Budgeting (graded) |
Our textbook and lesson discuss some considerations that should be taken into account when doing capital budgeting. Incremental earnings, interest expenses, taxes, opportunity costs, externalities, sunk costs, cannibalization or erosion, depreciation, and salvage value; as well as others. For your first posting, explain in detail what defines capital budgeting. Then, explain how two of these considerations above affect capital budgeting.
For your second posting, describe a potential capital expenditure project from the industry in which you now work or an industry in which you are interested. What is the project? Describe and provide an approximate value of the initial cash flow. Describe and provide an approximate value of the annual cash flow. Provide an estimation of the life of the project, as well as the exit costs.
For your next posting, review the second posting of another student. Then, calculate the NPV and IRR of the project. Based on your workings and assumptions, indicate whether you would accept the project, explaining why.
Stocks and Bonds (graded) |
What are Stocks and Bonds? Describe how you could estimate their values. If you are investing in the stock market, which would you invest in and why?
For your second post, select a stock in which you are interested. Calculate its per share value using the DDM or another method discussed in Chapter 9. Then, find the current market value of a share of the stock. Compare the two. Can you explain the similarity or difference?
For your next post, do some research, probably on the Web, and find some bonds with differing yields to maturity (YTM). How do you explain the difference? Both the lesson and the textbook discuss some factors that may lead to this difference.
Working Capital Management (graded) |
Do some research on two firms in your industry or an industry in which you are interested. Can you get an idea of their working capital management policies from publicly available information? How do the two companies differ in their apparent working capital management policies? Which policy do you think is better and why?
For your second post, consider the company you work for or a company in which you are interested. Also, do some research to find some current cost estimates for various means of financing working capital. What would be your recommendation to the company for financing its working capital needs? If the information is publicly available, or if you have access to it and have permission to discuss it, how does your recommendation compare what the firm is actually doing?
For your next post, explain the cash conversion cycle (CCC). Describe the CCC for your employer or company in an industry in which you're interested. What are some specific things that your company could do to decrease your cash conversion cycle? Let's be sure to describe, in pretty specific terms, the CCC for our company and what could be done to shorten it.
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Solution: devry fin515 week 5, 6 and week 7 discussion latest 2016 sep