FINCB571 Corporate Finance Competency 2 - Reflection Competency

FINCB/571: Corporate Finance Competency 2 - Reflection

Reflection

This reflection is comprised of two sections, collectively totaling a minimum of 500 words. Complete your reflection by responding to all prompts.

Capital Budgeting Techniques

You are a finance manager for a major utility company. Think about some of the capital budgeting techniques you might use for some upcoming projects.

Discuss at least 2 capital budgeting techniques and how your company can benefit from the use of these tools. 

Compare your approaches to other students’ responses. How were they similar or different? Why might you use the different approaches shared by your classmates?

Financial Performance Evaluation

You are writing a book on how to evaluate performance evaluation for a company. Think about some of the influences and measures of company performance that you read about in this module.

Explain the use of return on assets (ROA) and the price-to-earnings (PE) ratio in evaluating the performance of a company. Write about how to calculate ROA and PE ratio and how market conditions can affect these metrics.

Share the ROA and PE ratio for a company you are familiar with. What do these metrics tell you about the financial health of the company?