...Managerial Environment 5 3 Nov. 1, 2011 Nov. 8–Dec. 13 Orientation for MGT 610 F1B MGT 610 F1B Marketing 5 3 No Class No Class Nov. 22 Dec. 20, 27 TERM 2 (30) 5:30 p.m.-6 p.m. COURSES 01/03/12–04/24/12 WEEKS/CREDITS (9 credits = full time) Dec. 13, 2011 Jan. 3-Jan. 31, 2012 Orientation for MGT 575 F3B 5:30 p.m.-6 p.m. MGT 575 F3B Information Systems for Managers 5 3 Jan. 31, 2012 Feb. 14–April 24 Orientation for MGT 571 F3B 5:30 – 6:00 p.m. MGT 571 F3B Executive Economic Analysis 10 3 No Class No Class Feb. 7 April 3 Rev. 09/19/11 TERM 3 (40) COURSES 05/01/12-08/21/12 April 24, 2012 May 1–June 5 Orientation for MPM 500 F5B 5:30 p.m.-6 p.m. MPM 500 F5B Introduction to Project Management WEEKS/CREDITS (9 credits = full time) No Class May 29 June 5, 2012 June 12–Aug. 21 3 10 Orientation for MGT 555 F5B 5:30 p.m.-6 p.m. MGT 555 F5B Managerial Finance 5 3 No Class July 3 TERM 4 (10) COURSES 08/28/12-12/18/12 Aug. 21, 2012 Aug. 28–Oct. 2 Orientation for MGT 580...
Words: 791 - Pages: 4
...Learning Team Reflection Augusto Alvarez, Ani Hakobyan, Stephanie Kirk, Cristina Linares, Debbie Voeks FIN/571 Foundations of Corporate Finance June 23, 2014 Clifford Merchant Learning Team Reflection Introduction Turning tangible assets into investments is nothing new, investors did the same thing during previous market downturns, and they did not always come out ahead. A year ago, 49 years old Peggy Parks, who worked as a building code auditor got tired of watching her retirement savings investments going in the wrong direction and resulting in losing half of her 401(K) investments. To recover from that lost, Peggy Parks made an unconventional investment after learning how robust the Alpaca’s business can be. According to Peggy, “with Alpacas it is something tangible that you have on hand and always going to be there” (University of Phoenix, 2014). Diversification Peggy lost almost half her retirement in the stock market and decided to turn to the Alpaca business for her new retirement plan (University of Phoenix, 2014). She had made a good return the first year of business. There is a risk involved with investing in only one asset. Stable Money Makers demonstrated this when it mentioned how investors lost significant money from investing in Emus in the 1990’s. Diversification is reducing risk by investing...
Words: 621 - Pages: 3
...Week Two Vaughan Thompson FIN/571: Corporate Finance April 22, 2013 Text Problem Sets: FIN/571 - Week Two Chapter Five Question # 4 Define the following terms: bond indenture, par value, principal, maturity, call provision, and sinking fund. Bond indenture. Bond indenture is a legal contract for a publicly traded bond. The structure of this contract outline incentives explicitly by detailing responsibilities, constraints, penalties, and oversight required. For example, contracts may specify interest and principal payment timing and amounts. Par value. Par value denotes face value or designated value of a bond or stock. Par value of a bond is typically $1,000 and the sum investors pay upon issue. It is also the sum received when they redeem the bond matures. Conversely, stock par value is frequently set at $1. In this case, par value is an accounting tool that shows no connection to the stocks’ market value. Principal. The term “principal” refers to a sum of money one borrows or invests. The face amount of a bond - the value printed on a stock or bond, or a debt balance. Principal does not encompass finance charges. Principal also describes an investor represented by a broker who executes trades on that investor’s behalf or an investor who trades for his or her own benefit. Principal also refers to a party affected by an agent’s decisions in a principal-agent relationship. Maturity. Maturity is the end of a bond’s life. In finance, maturity (or maturity date) designates...
Words: 1386 - Pages: 6
...Generally Accepted Accounting Principles Debra Hilling HCS 571 January 24, 2011 Generally Accepted Accounting Principles Accounting departments are no longer the sole responsible parties for the financial management of a health care organization. Nurse managers, pharmacy directors, and department direction are often responsible for financial management. Accounting Concepts Financial management is the management of an organization’s finances. The goal of financial management is to maximize the wealth or profit of an organization and to achieve its other goals. Financial management includes accounting and finance. Accounting is the management of an organization’s financial information. Accounting includes financial and managerial accounting. Financial accounting is the compilation of retrospective information about an organization’s operation and the results of the operation. Managerial accounting provides insight and information that will improve decisions made by management. Finance includes an analysis of an organization’s acquisition and disposition of resources. Financial management has two goals: profitability and viability. Profitability has a tradeoff between an accepted level of risk and profits. An organization often take higher risks are taken when anticipating a higher rates of return (Finkler & Ward, 2006). Viability has a negative effect on profitability. Organizations with a greater liquidity have more safety, but having...
Words: 830 - Pages: 4
...Guillermo’s Furniture Store Concepts Paper Kavita Purav Corporate Finance/FIN 571 April 29, 2013 John Kushner Guillermo’s Furniture Store Concepts Guillermo Navallez is the owner of a large manufacturing furniture store located in Sonora, Mexico. Guillermo’s store was doing good business with the locals by providing them handcrafted products. The store was making good profits due to low labor costs, and charging premiums for handcrafted products. Currently Guillermo is facing issues with making profits due to a new overseas competitor. Guillermo needs to figure out a way to understand and make changes if necessary to his store, in order to stand up to the competitor. To make the right decisions, it is important to understand the principles of finance and the different concepts of finance. Concepts of Finance The Behavioral Principle: When All Else Fails, Look at What Others Are Doing for Guidance Guillermo is losing business to his competitors who use high technology equipment, make furniture to the exact specifications and with really low prices. The store owner wants to understand how the competitor operates, and why are they more successful. Guillermo spends some time into researching the high tech solution that the foreign competitor provides. He will try to figure out the cost of the technology, the low labor costs and whether he can cut his costs by converting into the high tech model. Basically he wants to research if he can imitate his competitor to better...
Words: 697 - Pages: 3
...Types of Organizational Structures Patricia R. Blandford FIN/571 February 3, 2014 Instructor: Zenhu Jin Introduction Although working capital may be hard for some business owners to comprehend, there is a tool that is useful to help with this. By understanding the operating cycle, a company can analyze it accounts receivables, accounts payables and inventory in terms of days. The operating cycle cannot be financed using the accounts payable only. Working capital is also needed to do this. Working capital is one of the most difficult financial concepts for the small-business owner to understand. It is the amount of current assets that exceed current liabilities. A business evenually needs short-term working capital. The following are sources businesses use for short-term working capital. • Equity- funds invested from personal resouces, friends, or other third party. • Trade creditors- creditors in which you have a good relationship with due to paying on time may offer help in providing short-term capital. • Factoring- Where a company buys an account recievable after an order has been filled and contiues to handle the collection. • Line of credit- given to businesses that have collateral and are well capitalized by equity. It is money that is borrowed for short-term needs as they arise. • Short-term loan-...
Words: 429 - Pages: 2
...Corporate Finance Video: Stable Money Makers Brenda Catron, Rachel McCalmon, Mathew Vogt, and Dominique Whitlock FIN/571 December 15, 2014 Susanne Elliott Corporate Finance Video: Stable Money Makers Peggy Parks was distressed after losing half of her 401k investment and she decided to do something about it. She researched for three years before deciding to make an unconventional purchase of $56,000 for seven alpacas. Peggy’s reasoning, because these alpacas are tangible assets, they are always in her control, unlike her struggling 401k. By the end of the first year, the investment paid off with two new baby alpacas making at least $15,000. Despite the initial success, Peggy is always looking for new ways to enhance her business. This paper will discuss capital improvements that will help her to do just that. Capital improvements are expenses connected with changes to enhance capital assets, extend their productive existence, or add to the worth of these assets. Capital improvements may improve usefulness or productivity or be renovations to the building or other structural improvements (Murray, 2014). Capital improvements can also be written off against income. Pond construction, barns, fences, driveways and parking lots are examples of expenses for breeders. Equipment such as pickups, scales, trailer, and tractors each has a suitable schedule for write-off. We have decided that it would be in Peggy’s best interest to purchase an additional male and female alpaca...
Words: 673 - Pages: 3
...Interpreting Financial Results FIN/571 January 25, 2016 Gurpreet Atwal Interpreting Financial Results This paper will interpret the financial statements from the past three years for Ascena Retail Group Inc (NASDAQ: ASNA). The paper will highlight four financial ratios including: the current ratio, the debt-to-equity ratio, the quick ratio, and the return on equity ratio. The financial statements that will be reviewed are from 2011 to 2014. Each ratio will be compared to the industry benchmarks to see where the company stands within the market. Current Ratio The current ratio will help us understand ASNA’s liquidity, meaning how quickly the company can turn its assets into cash in order to pay off its short-term obligations. The current ratio is calculated by taking the current assets and dividing it by the current liabilities. If the ratio is above 1 then the company has higher capabilities to pay off its short term obligations. As seen in figure 2 below, ASNA has posted a current ratio above 1 from 2011 to 2014, which means the company is in a healthy financial state. ASNA’s current ratio decreased from 2011 to 2013 but it saw an increase in 2014, which is a positive sign for investors (Parrino, Kidwell, & Bates, 2012). Debt-to-Equity Ratio The debt-to-equity ratio is used to determine how much debt a company is using to finance its assets compared to its value in shareholders’ equity. Investors want to know how much of a company’s assets are financed through...
Words: 943 - Pages: 4
...Guillermo Furniture Store FIN/571 February 4, 2013 Garrick Turner University of Phoenix Instructor: Paul Stevens Guillermo Furniture Store The Guillermo furniture store is the largest furniture store in Sonora, Mexico. The store definitely has established itself as the main provider of fine art furniture, until the late 1990 when two competitors, pose as a problem for the local store. The first company is a foreign furniture company, making a good use of a high-tech approach, building furniture with exact specification. The second competition is one of the largest retailers who have expanded which caused an influx of people and jobs. This paper will evaluate Guillermo processes and determine how to handle the challenges they are facing from a changing market. Guillermo’s financial interest, return, and risk and its ability to maintain its business ethic taken in consideration if they decide to continue business on their own sticking with its traditional way of making fine furniture; Adapt the new high-tech developments of producing furniture or merge with a possible alliances, taking on new services as a distributor. The financial interest for Guillermo Furniture Store is to manufacture a product that best fit the needs of the business and its customer. Examine their budget information, can be analyze to determine if the company will be more profitable by staying independent or merging with its competitor, to become more efficient they must...
Words: 757 - Pages: 4
...FIN/571: Corporate Finance Text Problem Sets - Week Two Chapter Five Question # 4 Define the following terms: bond indenture, par value, principal, maturity, call provision, and sinking fund. Bond indenture. Bond indenture is a legal contract for a publicly traded bond. The structure of this contract outline incentives explicitly by detailing responsibilities, constraints, penalties, and oversight required. For example, contracts may specify interest and principal payment timing and amounts. Par value. Par value denotes face value or designated value of a bond or stock. Par value of a bond is typically $1,000 and the sum investors pay upon issue. It is also the sum received when they redeem the bond matures. Conversely, stock par value is frequently set at $1. In this case, par value is an accounting tool that shows no connection to the stocks’ market value. Principal. The term “principal” refers to a sum of money one borrows or invests. The face amount of a bond - the value printed on a stock or bond, or a debt balance. Principal does not encompass finance charges. Principal also describes an investor represented by a broker who executes trades on that investor’s behalf or an investor who trades for his or her own benefit. Principal also refers to a party affected by an agent’s decisions in a principal-agent relationship. Maturity. Maturity is the end of a bond’s life. In finance, maturity (or maturity date) designates the date of final payment on a financial instrument...
Words: 1086 - Pages: 5
...Guillermo Furniture Store Concepts People go into business to make money by providing goods and/or services to their customers. Some businesses are successful while others fail. Managers make difficult and complex decisions that can make or break the company. The Guillermo Furniture Store in Sonora, Mexico is not any different. The owner, Guillermo Navallez, must make decisions that will, no doubt, have a huge impact on the success or failure of his company, so he will engage in foundational corporate finance principles that will guide his decision-making. This paper will explain several principles of foundational corporate finance, and show how they relate to the Guillermo Furniture Business Scenario. Principle of Self Interested-Behavior The principle of Self-Interested Behavior of foundational corporate finance plays a fundamental role in the Guillermo’s decision-making because he acts in his own best interest to attain the success of his company. The principle of Self-Interest Behavior states that, “All things being equal, all parties to a financial transaction will choose the course of action most financial advantageous to themselves” (Emery, 2007). Naturally, Guillermo wants his company to be a financial success, so he will base his decisions that will give him the best possible income. For instance, when Guillermo begins to realize that his profits are dropping and costs are going up, he conducts research on his competitors to understand how they are more successful...
Words: 1244 - Pages: 5
...Guillermo’s Furniture Store Concepts Christian M. Bustamante FIN/571 October 17, 2011 Helen Brown-Horton Guillermo’s Furniture Store Concepts Corporate Finance are more focused or directed toward the manner in which the directors of a company can create value with financial decisions made by the use of the financial tools. Corporate finance also have principles or key concepts that are the main support of how this discipline, these concepts are the Principle of self-interested Behavior, The Principle of two-sided Transactions, the signaling Principle, the behavioral Principle, the Principle of valuable ideas, The Principle of Comparative Advantage, the options Principle, The Principle of incremental Benefits, The Principles of risk-return trade-off, The Principle of Diversification, The Principles of capital market efficiency and the time-value-of-money Principle (Douglas R. Emery, John D. Finnerty, and John D. Stowe. 2007). Investors are always waiting for more profit, which means that the investor should take more risks as well you can earn more profits. But otherwise, investors are risk adverse, meaning, they often want to more but they like to take small risks (Douglas R. Emery, John D. Finnerty, and John D. Stowe. 2007). Guillermo’s store was opened in early 1990 when the economy was very good in the city of sonoro, by the time, guillermo had a everything on his favor for a great and healthy economy since he didn’t have any completion...
Words: 778 - Pages: 4
...Guillermo Furniture Store Finance Concepts July 2, 2011 FIN/571 Guillermo Furniture Store Finance Concepts The risks associated with financial concepts in the case of Guillermo Furniture raises when a company considers joining forces with another company. In such a case with Guillermo Furniture, trying to forecast future purchasing of materials is more difficult because the chance for over purchasing may come into play if the company does go the route to sell itself to a competitor. The questions that come to the forefront is whether the merger will pick up what the other company has on hand. Risks vs. Reward Guillermo Furniture having been approached by a competitor about joining forces brings into play the idea of risk vs. reward. Guillermo Furniture has thought about selling the company or maybe closing the business and possibly merging with the competition. Should Guillermo Furniture do any of the above, what are the risks vs. reward in any of these options? Using information obtained from the sales forecast is used to create the sales budget. “This budget is a result of decisions to create the conditions that will generate a desired level of sales.”(Horngren, 2008). Managers usually take into consideration a number of factors when examining risks for their company. These factors can be looked upon as risks for the company as well. Some of the factors include reviewing past patterns of sales which can be used to help with predicting future...
Words: 662 - Pages: 3
...Generally Accepted Accounting Principles in Healthcare April Dierickx HSC/571 June 10, 2013 Tamica Lewis Generally Accepted Accounting Principles in Healthcare Generally Accepted Accounting Principles (GAAP) are the accounting standards used in the United States that provide an outlet for organization to record and report their financial information in a standardized manner (Richards, n.d.). This has proven to be of particular importance in the healthcare arena where many areas of finances can be ambiguous or gray. Additionally, the principles guide the reporting systems to prove or disprove the financial viability of the organization. This again is important in the healthcare industry related to achieving the goal of providing quality care to patients (Cleverly, Song, & Cleverly, 2011). GAAP focuses on five different principles of accounting. Accounting entity, money measurement, duality, cost valuation, and stable monetary unit are the five principles discussed in the following paragraphs. Principle definition and the relationship they have to the healthcare industry will be identified and correlated to healthcare practices. Accounting Entity Cleverly, Song, & Cleverly (2011), define an accounting entity as the organization for which financial statements are being formed. They discuss the difference between entities such as sole proprietorship, incorporations, and affiliations with government agencies and universities. The clear definition does not include...
Words: 818 - Pages: 4
...International Finance Karen Davis University of Phoenix September 9, 2010 Introduction 3. A firm’s current balance sheet is as follows: Assets - $100 Debt $10 Equity $90 Question 3a. What is the firm’s weighted cost of capital at various combinations of debt and equity, given the following information? Debts/Assets After Tax Debt Cost Cost of Equity Cost of Capital (weight)(cost of debt) weight (cost of equity) = k (cost of capital) 0% 8% 12% 10 8 12% 20 8 12% 30 8 13% 40 9 14% 50 10 15% 60 12 16% Answer – Debts/Assets After Tax Debt Cost Cost of Equity Cost of Capital (weight)(cost of debt) weight (cost of equity) = k (cost of capital) 0% (.0)(.08) (1.0)(.12) 12.0 % 10% (.1)(.08) (.9)(.12) 11.6 % 20% (.2)(.08) (.8)(.12) 11.2% 30% (.3)(.08) (.7)(.13) 11.5% 40% (.4)(.09) (.6)(.14) 12.0% 50% (.5)(.10) (.5)(.15) 12.5% 60% (.6)(.12) (.4)(.16) 13.6% Question 3b. Construct a pro forma balance sheet that indicates the firm’s optimal capital structure. Compare this balance sheet with the firm’s current balance sheet. What course of action should the firm take? CURRENT BALANCE SHEET PROFORMA BALANCE SHEET Assets - $100 Assets - $100 Debt $10 Debt $20 Equity $90 Equity $80 The optimal capital structure is “the unique capital structure that minimizes the firm’s composite cost of long-term capital” (Keown, et.al. 2005). The debt is 20% of the capital and the cost of capital is 11...
Words: 681 - Pages: 3
