...Individual Paper: Workshop 1 – Discussion Questions “DQ” University of Phoenix – FIN/370 Finance for Business Week 1 100% Workshop 1 – Discussion Questions This paper will explore the discussion questions for the first of five workshops of Finance for Business. The three topics include: 1) The capital market, how the primary market differs from the secondary market, and in the student’s opinion are these markets efficient, and why. 2) The three primary roles of the U.S. Securities and Exchange Commission, how the Sarbanes-Oxley Act of 2002 augments the SEC’s role in managing financial governance, and if the writer thinks the passage of this act had the outcome of businesses becoming more ethical. Examples will be used to support this thinking.3) Ratios which measure a corporation’s liquidity, some problems associated with using these ratios, and how the DuPont analysis would overcome these problems. The DQ’s will be stated, and then the Discussion Answers will be explored below. DQ 1 – The Capital Market What is the capital market? How is the primary market different from the secondary market? In your opinion, are these markets efficient? Why? Discussion Answer 1 The capital market is “Any market in which securities are traded. Capital markets include the stock and bond markets.” (Farlex Financial Dictionary 2009) “Traditionally, this has referred to the market for trading long-term debt instruments (those that mature in more than one year). That is, the market...
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...Lease versus Purchase Ashley Neighbors, Kenterrian Hall, Chelsea Lester, FIN – 370 / Finance for Business September 15, 2014 Timothy Gould Lease versus Purchase Introduction There are many differences between leasing, purchasing, and having a maintenance agreement on equipment. When deciding which route to take one must consider price as well as look at all aspects in the process. Reviewing the additional problem at the end of chapter 27 of Basic Finance, comparing leasing versus purchasing, one can see the break down of each option to better understand which way will save more money as well as be more beneficial. Lease Management has decided to acquire a new asset that costs $200,000. The estimated economic life of the asset is five years, but the firm wants the use of the asset only for three years. If the firm purchases the asset, it anticipates selling it at the end of three years for $50,000. The firm may lease the asset for $55,000 a year paid at the end of each year. The lease does not include maintenance. It is estimated that annual maintenance initially will be $5,000, paid at the end of the year, but that cost will increase by $1,000 each year as the asset ages. Purchase The firm could purchase the asset with a five-year loan of $200,000. The loan will be retired in five payments of $40,000 unless the equipment is sold, in which case the loan must be paid off...
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...Financial Terms Mark Wooldridge FIN 370 January 23, 2013 Dr. David Di Sciascio • Finance: The study of how people and businesses evaluate investments and raise capital to fund them. Within in all aspects of business such as management, marketing and production these areas of a company need to understand the aspects that finance has on their areas. • Efficient market: the indication that the worth or price of stocks or alternative investment in an organization are precisely displayed and are accurate account of the value of the investment. • Primary market: A market that is new looking to obtain funds and securities to fund the new company. • Secondary market: A market where securities and funds have already been setup. In this market the securities are being transferred from one investor to another. • Risk: measurable prospect of the loss that investors can take when purchasing securities. • Security: is a negotiable instrument that represents a financial claim. The securities can take the form of a stock, a bond or a debt agreement. • Stock: Where a publically traded company that sells equity within their organization to the public. In modest terms means that the stockholder is actually a partial owner of the company. • Bond: is in term like a long term loan issued by companies to investors where over time the company pays a fixed interest rate to the holder over the life time of the bond that was issued. • Capital: In the aspect of Finance represents the money that a...
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...Learning Team B Summary/Reflection University of Phoenix Finance For Business FIN/370 XXX XXXXX Learning Team B Summary/Reflection Introduction In week four we covered various topics such as Capital structure, market capitalization, the effects of financing strategies on capital cost, and discussed differences of leasing vs. buying and how the there are requirements that financial companies are incompliance. We were also asked to calculate favorable and unfavorable financial leverage and interest. XXXX In week four of FIN/370, I learned many things related to financing and capital budgeting structure. We talked SOX and the requirements that the SEC sets forth for organizations to ensure financial compliance. This was a topic that I had quite a bit if firsthand knowledge with because when out SOX was first introduced our organization took it seriously and each employee of the company from the top down was responsible to attend the training and would be held accountable for their actions at every level of the organization. We also had good discuss about lease versus purchase and which option is better for individuals. It was interesting to see the different outlooks and opinions that other people had relating to whether they preferred leasing or purchasing. We had our week four calculation problems again which I struggled with several of them this week but not quite as many as the week before. I have watched the videos and utilized other sources to answer the financial...
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... Bachelor of Science in Business with a Concentration in Human Resource Management The Bachelor of Science in Business (BSB) undergraduate degree program is designed to prepare graduates with the requisite knowledge, skills, and values to effectively apply various business principles and tools in an organizational setting. The BSB foundation is designed to bridge the gap between theory and practical application, while examining the areas of accounting, critical thinking and decision-making, finance, business law, management, marketing, organizational behavior, research and evaluation, and technology. Students are required to demonstrate a comprehensive understanding of the undergraduate business curricula through an integrated topics course. The Human Resource Management Concentration helps students develop an understanding of the fundamentals of human resource management and its strategic relevance in business. The concentration addresses the legal and ethical components of the decision making process involved in the human resources environment. The Human Resource Management Concentration introduces students to the basic concepts of human resource management, and allows further study in the areas of employment law, risk management, recruitment and selection of employees, international HR, change management, compensation and benefits, employee development, and performance management. Students will also develop an understanding of the critical business implications for human resource...
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...Week One Assignment Fin 370 November 10, 2013 Finance- Finance is the branch of economics that is concerned with resource allocation as well as resource management, acquisition and investment. Finance deals relatively with matters related to money and the markets. Efficient Market- The efficient market is a market where information is available to all participants at the same time and prices respond to available information immediately. The best example of a efficient market is the stock market. Primary Market- The primary market is a market where all buyers and seller can negotiate and transact business directly. Newly issued securities are offered to the public. Secondary Market-The Secondary market is a financial market where securities and financial instruments are bought and sold. All commodity and stock exchanges, and over-the-counter markets, serve as secondary markets which avenue for resale) help in reducing the risk of investment and in maintaining liquidity in the financial system. Risk – Risk is the probability of negative outcomes that can occur when investing. Security- A security represents debt (Bonds) or equity (Stocks).Securities can be sold to investors that want to make a return on the purchase price. There are various levels of risk associated with securities. Stock – Stocks illustrate the ownership within a company, which are equity securities. A Board of Directors determines shares that are authorized within public companies. Shares are brought...
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...Financial Terms and Roles Name FIN/370 Date Instructor Finance- The science of funds management; the way folks and businesses examine opportunities and raise growth capital to finance them. Efficient Market- A market where assets and securities match the information that can be obtained. In a nutshell, this market suggests that all buying and selling options tend to be relatively priced. Primary Market- Where new securities are traded. The principal marketplace offers the route at which to trade the new and only newly issued securities. Secondary Market- Where previously issued stocks and bonds are traded. Risk- The particular uncertainness an anticipated return may not be attained. It’s the possibility a picked action or exercise (such as the selection of inactivity) will result in a reduction (the result nobody ever wants). Danger takes on a large function financially; nearly every financial deal bears a few level of chance. Security- A proper affirmation that solidifies something valuable and relevant to finance and investment; the holder can get interests or dividends. Securities can be bonds or shares of common stock. Stock- An instrument that signifies what can be owned in an organization; typically a valuable piece of such organization. If looking through the eyes of the company, it is the funds elevated from the firm through the issue of shares empowering slots for. Bond- A debt (usually 10 years plus), put in place by the person that owes...
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...Financial Terms and Roles Alvaro Garcia Jr. FIN/370 August 19, 2013 Dr. Rachel Ang Finance – Individuals and businesses evaluate investments and raise capital to fund them. Understanding and having knowledge of finance will benefit both personal and professional life. Efficient market – Investors respond to new information buying and selling their investments the speed with which investors act and the way that prices respond to the information determine the efficiency of the market. Primary market – is a market in which new, as opposed to previously issued, securities are bought and sold for the first time. The key feature of the primary market is that the firms selling securities actually receive the money raised. Secondary market – is where all subsequent trading of previously issued securities takes place. The principal benefit of the secondary market for the shareholders of firms that sell their securities to the public, you could easily sell those shares in the secondary market if you decided you no longer wanted to hold them. Risk – Do not take additional risk unless expected to be compensated with additional return. For example, offering investors a higher expected rate of return on the riskier investments. Security – Security markets provide a link between the corporation and investors. The securities markets are another component of the financial marketplace. Stock – Stock prices can react to information, good decisions will result in higher stock prices...
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...Financial Definitions Michelle Burrows FIN/370 July 8, 2013 Frank Roberts Financial Definitions 1. Finance: Finance is the study of how people and businesses evaluate investments and raise capital to fund them. 2. Efficient market: A market in which all the available information is fully incorporated into securities prices and the returns investors will earn on their investments cannot be predicted. Efficient markets role in finance is how the flow goods and reduce the inefficiencies of information for the entire market as a whole. 3. Primary market: is market in which new, as opposed to previously issued, securities are bought and sold for the first time. Primary market role in finance is the market of newly issued financial assets 4. Secondary market: is where all subsequent trading of previously issued securities take place. Secondary markets role in finance has to do with long-term growth and investment. 5. Risk: The chance that an investment actual return will be different than expected. The role of risk would be the basis for evaluating any kind of investment. 6. Security: negotiable instrument that represents a financial claim that has value.. 7. Stock: a security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. Stocks both capital and simple serves as a financial security to creditors 8. Bond: debt investment in which an investor loans money to an entity that borrows...
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...FIN/370 Week One: Defining Financial Terms 1. Finance: Is the study of how people and businesses evaluate investments and raise capital to fund them. The role of finance is to assist the corporation in money management. 2. Efficient Market: Is a hypothesis that suggests that market is fair in their pricing. The role of an efficient market is to make it so no person can make a huge return without being risker in their initial investment. 3. Primary Market: A primary market issues new securities on an exchange. The role of the primary market is for the issuing companies or group to receive cash proceeds from the sale, which is then used to fund operations or expand their business. 4. Secondary Market: Is the market where investors purchase securities or assets from other investors. NASDAQ is an example of a secondary market. Unlike the primary market, the cash proceeds in the secondary market go to the investor rather than the underlying company or entity directly. 5. Risk: Is the chance that an investor’s return will be different than expected. An investor is taking a risk when he/she is involved in investments that can possibly lost money. Knowing your risk is one of the most important things to know when investing your time and money in a business. 6. Security: Is a contract that represents ownership, a debt agreement, or the rights to ownership. Value can be assigned to a security such as; bond, stock, or/and note. 7. Stock: Is a form of security...
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...Financial Terms and Roles FIN/370 Vicky Tillman June 15, 2013 Financial Terms and Roles Create a list of definitions for the following terms and identify their roles in finance. 1. Finance- The study how people and business evaluate investments and reuse capital to fund them. 2. Efficient Market- Market where all pertinent information is available to all participants at the same time and where prices respond immediately to available information. 3. Primary Market- Financial market in which newly issued securities are offered to the public. 4. Secondary Market- Financial market where previously issued securities and financial instruments are bought and sold. 5. Risk- The probability that an actual return on an investment will be lower than the expected return. 6. Security- A financing or investment instrument issued by a company or government agency that denotes an ownership interest and provided evidence of a debt, a right to share in the earnings of the issuer, or a right in the distribution of a property. 7. Stock- The proportional part of a company's equity capital represented by fully paid up shares. 8. Bond- A written and signed promise to pay a certain sum of money on a certain date or on fulfillment of specified conditions. 9. Capital- Wealth in the form of money or assets taken as a sign of the financial strength of an individual organization, or nation, and assumed to be available...
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...Virtual Organization Strategy Paper Finance for Business/FIN 370 March 18, 2011 Abstract The purpose of this paper is to review a hypothetical organization and outline the options the organization may be faced with when debating the idea of expansion. The organization in question is Huffman Trucking, which is a trucking firm based in Ohio that has established a presence by acquiring five Eastern regional carriers. The company is privately held. The analysis of this organization includes expansion options of an Initial Public Offering, acquiring an organization in the same industry, and merging with another organization. The positive and negative aspects of each option above are reviewed and a conclusion will be drawn as to the next step for that business to take. Virtual Organization Strategy Paper The concept of business expansion offers both promise and peril. The desire of growth for a business must be tempered with the fact of additional uncertainty and risk. Business under normal operating circumstances is perilous. The additional layering of risk in any type of expansion or capital generation cannot only serve to fail in its objective, but also has the possibility to bring the organization to financial ruin. An effective executive must weigh the chance of success with the absolute possibility of failure. Going Public through an IPO An option for Huffman Trucking to consider for expansion of its operations is going public through an initial...
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...Financial Terms and Roles FIN\370 Jeff D. Garcia Finance - the management of revenues, esp. those affecting the public, as in the fields of banking and investment * Efficient market - Market where all pertinent information is available to all participants at the same time, and where prices respond immediately to available information. Stock markets are considered the best examples of efficient markets. * Primary market - Market in which buyers and sellers negotiate and transact business directly, without any intermediary such as resellers. * Secondary market - Financial market where previously issued securities (such bonds, notes, shares) and financial instruments (such as bills of exchange and certificates of deposit) are bought and sold. All commodity and stock exchanges, and over-the-counter markets, serve as secondary markets which (by providing an avenue for resale) help in reducing the risk of investment and in maintaining liquidity in the financial system. * Risk - Finance: The probability that an actual return on an investment will be lower than the expected return. Financial risk is divided into the following categories: Basic risk, Capital risk, Country risk, Default risk, Delivery risk, Economic risk, Exchange rate risk, Interest rate risk, Liquidity risk, Operations risk, Payment system risk, Political risk, Refinancing risk, Reinvestment risk, Settlement risk, Sovereign risk, and Underwriting risk. * Security - Finance: A financing or investment...
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