Explain how they affect the financial process

Assignment Help Financial Management
Reference no: EM13951758

Did you ever stop to think about the importance of the finance function for a successful, multinational company (i.e, McDonalds, Apple, Johnson & Johnson, etc)? Someone has to manage the cash flow, bank relations, payroll, purchases of plant and equipment, and the acquisition of capital. Economic variables, such as gross domestic product, industrial production, disposable income, unemployment, inflation, interest rates, and taxes (to name a few) must fit into the financial manager’s decision model and be applied correctly. Is the company being run for the benefit of stockholders or top management? Based on key concepts learned in this Business Finance class, please explain finance concepts that businesses have to overcome in the area of financial statements (balance sheets, income statements, and the statement of cash flows), retained earnings, shareholders’ equity, depreciation, and historical/replacement cost. Please include at least two (2) of the following in your discussions and explain how they affect the financial process.

Capital Budgeting Techniques (decision making: replacement, expansion, post-audit, net present value, mutual exclusive projects, payback periods, etc.)

Project Cash Flows and Risk (cash flows, project evaluation, replacement analysis, acceptance/rejection of the project)

The Cost of Capital (components costs of capital, cost of debt, cost of retained earnings, and weighted average cost of capital)

Reference no: EM13951758

Questions Cloud

How effective was the od consultants data gathering : How effective was the OD consultants' data gathering? The content of the data? The process of how the data were collected? Use force-field analysis to analyze the data. What conclusions would you draw from the analysis
What is the company total market value of debt : Jiminy’s Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 92 percent of its face value. The company’s tax rate is 40 percent. What is the company’s total book val..
Analysis and relevance to corporate valuation sections : Executive style overview and summary, with the majority of your article review content in the Opinion and Analysis and Relevance to Corporate Valuation sections.
Describe the internal rate of return method : Describe the Internal Rate of Return (IRR) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using IRR?
Explain how they affect the financial process : Did you ever stop to think about the importance of the finance function for a successful, multinational company (i.e, McDonalds, Apple, Johnson & Johnson, etc)? Someone has to manage the cash flow, bank relations, payroll, purchases of plant and equi..
Using text or html editor create a web page with the content : Put an opening form tag, name the form "register", put the method as post and make the action a mailto to your instructor's email address.
The revolt of mother : Read Mary E. Wilkins Freeman, "The Revolt of ‘Mother'" (reading for this is uploaded below), Write a 2 page essay in a Word document
Find maximum height reached by bob equals its initial height : A simple pendulum of length L having a bob of mass m is deflected from its rest position by an angle 6 arid released (figure 8-E16). The string hits a peg which is fixed at a distance x below the point of suspension and the bob starts going in a c..
Example of effective branding : Conduct research and present to the class an example of effective branding. Was it an example ofprivate branding, generic branding, manufacture branding?

Reviews

Write a Review

Financial Management Questions & Answers

  A quoted company is considering several long-term sources

a quoted company is considering several long-term sources of finance for expansion into new foreign markets. critically

  Distributors has an unlevered cost of capital

Johnson Tire Distributors has an unlevered cost of capital of 12 percent, a tax rate of 34 percent, and expected earnings before interest and taxes of $2,000. The company has $4,000 in bonds outstanding that have a 7 percent coupon and pay interest a..

  Service machinery and equipment

Clay LLC placed in service machinery and equipment (7-year property) with a basis of $2,310,000 on June 6, 2015. Assume that Clay has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (ign..

  Calculate the holding-period returns

The following are end of the month prices for both the Standard & Poors 500 Index and Nike's Common stock. Using the data here calculate the holding-period returns, the average monthly return and the standard deviation for both the S&P 500 and Nike.

  Problem leverage-long-term debt-equity ratio

A firm has a long-term debt-equity ratio of .4. Shareholders’ equity is $1 million. Current assets are $200,000, and the current ratio is 2. The only current liabilities are notes payable. What is the total debt ratio?

  What is the banks asset utilization ratio

A bank has interest income to total assets ratio of 5% and has noninterest income of $30 million and total assets of $750 million. What is the bank's asset utilization ratio?

  Calculate the expected net present value of the project

Kanga Resorts is interested in developing a new facility in Asia. The company estimates that the hotel would require an initial investment of $14 million. The company expects that the facility will produce positive cash flows of $2.6 million a year a..

  What is a mutually exclusive investment project

What is a mutually exclusive investment project? An independent project? A contingent project? Give an example of each. What effect does capital rationing have on a firm's ability to maximize shareholder wealth?

  Evaluate most projects of average risk

The Cowboys Christmas Company uses a required return of 11.3% to evaluate most projects of average risk. Suppose the company is looking at a new project that is lower-than-average-risk, and the CEO thinks the discount rate should be risk-adjusted. Wh..

  Forecast broussards additional funds needed for coming year

Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2013 to $9.2 million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its assets most grow at the same rate as project..

  Negative amount should be indicated

Negative amount should be indicated by

  Strategic plan with cost estimates and time line

Develop a five-year strategic plan with cost estimates and a time line. It should be 5-7 double-spaced, typed (12 point) pages plus exhibits. Describe the situation facing Mensa at the time of the case. This should include the major issues facing the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd