Kaplan GB550 all discussions

Unit 1 discussion 1

Discussion 1 of 2

What is the meaning of share value maximization? If a firm attempts to maximize its fundamental stock price, is this good, or bad, for society? Explain.

Discussion 2 of 2

Since this is a finance class, it is important to explore the different careers and certifications within the field of finance. Visit Kaplan University's Career Network at https://kucampus.kaplan.edu/CareerNetwork or via your KU Campus home page. Write a few paragraphs, of 150 words or more, discussing a career in finance and whether that career requires a certification or not, the expected salary, and any specific requirements for the career. (Read more about Career Services)

Unit 2

Discussion 1 of 2

Please read the Harvard Case Study — eBay Inc.: Internet Success or Fairy Tale? by David F. Hawkins and Jacob Cohen. This case study can be found in the Harvard Case Study website using the following link: http://cb.hbsp.harvard.edu/cb/access/13637669

This will take you to an “Authorized Student register/log-in” page. If this is your first coursepack purchase, you need to register on the site to create a username and password. If you have previously purchased a coursepack, log in with your existing username and password. Follow the prompts to log-in, and purchase the coursepack.

Please answer the following questions about the case study:

1. Use the 2002 Financial Statement data to replicate the Meyer's report calculations that illustrate the following conclusion based on the 2001 data reached in the report: eBay has never been profitable. Why? Why not?
2. Do you agree with Meyer's report concept of "unfettered" cash flow? Why? Why not?
3. What other conclusions can you reach about the company from the case study?

Discussion 2 of 2

4. Why is it sometimes misleading to compare a company’s financial ratios with those of other firms that operate in the same industry?

Unit 3

Discussion 1 of 2

Discuss the relationship between the price of a bond and interest rates. Why does the price of a bond change over its lifetime? Please offer a quantitative example to demonstrate this relationship.

Discussion 2 of 2

In the real world, is it possible to construct a portfolio of stocks that has an expected return equal to the risk-free rate? Provide examples.

Unit 4

Discussion 1 of 2

Research and define technical analysis and fundamental analysis. Provide examples of each type of analysis. Which style of analysis makes the most sense for the long-term investor?

Discussion 2 of 2

Conceptually, how does an investor choose his, or her, optimal portfolio? What criteria should be used? Provide, and discuss, your example.

Unit 5

Discussion 1 of 2

From a financial manager's perspective, discuss the capital-budgeting process used to identify projects that add to the firm's value? How do capital-budgeting decisions help to define a firm's strategic direction?

Discussion 2 of 2

When two mutually exclusive projects are being compared, explain why the short-term project might be higher ranked under the NPV criterion if the cost of capital is high; whereas, the long-term project might be deemed better if the cost of capital is low. Would changes in the cost of capital ever cause a change in the IRR ranking of two such projects? Explain.

Unit 6

Discussion

How does a firm’s capital structure relate to your personal capital structure? In what ways are they similar? Provide examples of how you use debt and equity in your personal financial life that parallels the basic capital structure decisions made by a firm.