...Case Analysis The case offers an unusual perspective—that of the lessor who is trying to understand the viewpoint of the lessee. Many leasing problems are cast from the standpoint of the lessee only, and thus, amount to estimating the cost of financing. By considering both perspectives, this case shows that the lessee’s financing problem is the lessor’s investment problem. The other key insight provided by this perspective is that competition among manufacturers to provide lease financing actually replicates competition in the capital markets. Constrained by the risk-adjusted costs of capital and the pressures of competitors’ lease terms, the manufacturers’ proposals tend to cluster in a narrow range. Assessment of the various lease terms Discussion question 1: Why is Primus considering the lease of its factory-automation system to Avantjet? Discussion question 1: Why is Primus considering the lease of its factory-automation system to Avantjet? Objective measures of the attractiveness of lease terms are net present value and internal rate of return. One assesses the benefits of leasing versus buying by evaluating the cash flows under each alternative. The objective is to choose the alternative with the lowest cost, because the use of the asset is the same whether it is leased or bought. This assessment is a financial decision rather than an investment decision (where financing costs are excluded), because financing flows determine the investment method. The investment...
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...CHapter 13 FINANCIAL STATEMENT ANALYSIS Changes from Twelfth Edition Updated from Twelfth Edition. Porter Lumber, Inc. has been updated and renamed Butler Lumber. The Sears Roebuck vs. Wal-Mart and Quality Furniture Company cases have been dropped. Approach Although it is not possible to do this precisely, the financial statement analysis discussion is more coherent, we believe, if it is built around Illustration 13-1. The theme is that the financial statement proxy for shareholder value is return on investment, and the ratios help explain why a given return was not satisfactory (if it was not), or at least identify the areas that need investigation. As with Chapter 8, the amount of attention given to this chapter depends on whether or not the students are taking or will take a course in finance. In such a course, they will, of course, deal considerably more with financial statement analysis than is contained in this introductory treatment. When a finance course is given, we do not assign the chapter, but suggest only that students skim through it. Students should not get the impression that there is one “best” list of ratios to be memorized. Although the 24 given in Illustration 13-3 could be expanded still further, in practice the analyst will select the ratios most appropriate for a given industry setting. Cases Genmo Corporation is a “backwards” case in which students deduce the financial statements of General Motors Corporation from the ratios...
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...Research Proposal – Unit II Evaluating the Federal Student Loan Debt in Regards to the Status Quo of the United States Economy Geoffrey J. Wynn, MBA Columbia Southern University DBA 7240-09B-2B11-S1 Doctoral Writing and Inquiry Into Research Evaluating the Federal Student Loan Debt in Regards to the Status Quo of the United States Economy Introduction In conducting research of the concept of student loan debt it was evident that there were concerns at all fiscal levels about the growing usage of students in conjunction with the stagnant economy. The student loan program is always under review for consistency and being relative of an individual's or family's financial need. The United States government created the program to boost the higher learning apparatus of citizens in need of training and/or re-training to keep up with an ever changing workplace. The research divulges many opportunities to create a better understanding on how the market economy supports government subsidized programs. The media perception has always seemed to be in favor of the educating society through the legislative actions of the United States government. In other words it has been assumed that the taxpayers could foot the bill so to speak so that others may be able to reach the goal of being educated adequately enough to find suitable work. In looking into the individual employment it needs to be taken into account that the level of education...
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... |Credit |: |3 Units | Objective The objective of this course is to provide the students with adequate knowledge about the management of Credit portfolio in banks. It will provide sufficient inputs to enable the student to develop an insight regarding the different phases of Credit management. |Reference Books |Author / Publication | |Credit Management |ICFAI | |Practical Banking Advances |H.L.Bedi and V.K. Hardikar/ UBS Publishers | |The Bank Credit Analysis |Jonathan Golin/John Wiley & Sons | |Frontiers in Credit Risk |Gordian Gaeta/ John Wiley & Sons | |Money, Credit and Capital |James Tobin/McGraw | |Credit Risk |Michael Hanke/Springer | |Credit and Banking |K.C.Nanda/Response | |Credit Appraisal, Risk Analysis & Decision making |Mukherjee/Snow White | Detailed Curriculum Overview:...
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...Dr. Susan Gunn’s Samples for Module 1 Case Assignment of ETH501 The following sample from student papers is meant to establish some guidelines on how to approach your essays. The first sample shows an excellent introduction to the first case. The student author provides his/her own approach and allows the reader to know what is going to be discussed. The second example simply uses a long quotation that is not properly formatted. It does not lead the reader into the critical ethical analysis that is required. The third and forth examples show a part of the critical ethical analysis. Remember, if you have any questions, please ask. An excellent source for finding your own voice in academic writing is: http://unilearning.uow.edu.au/academic/4bi.html. This cite has good examples with explanations. Sample 1: You do not have to discuss that it is a paper. You do have to tell the reader what you will be discussing. Note also that there is a Heading. Introduction The purpose of this assignment is provide a critical analysis of the 2002 collapse of the WorldCom telecommunications empire as seen through the lens of deontological ethics. This analysis will be accomplished by defining deontological ethics and the Categorical Imperative (CI); by generally establishing what ethical problems were inherent in the WorldCom case; by evaluating the WorldCom model according to a deontological ethics; and finally by using Immanuel Kant’s construct of the CI to assess the WorldCom...
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... on Mon. and Wed/. or by Appointment I. Teaching Objectives Financial decision making cases are used to… • Create a highly interactive learning environment; • Learn about the application of financial management and credit analysis concepts; • Discover what you do not know about the practice of financial management; • Show what you have learned; • Highlight the relationships between strategic goals and the creation of firm value; • Develop techniques for interpreting a firm’s financial data and strategic plans; • Enhance your critical thinking and problem solving skills; • Expand your understanding of financial theory and its application; • Improve your listening and cooperative learning skills. II. Learning Promises At the end of this course your will be able to… • Think like a financial manager; • Interpret a company’s financial health by evaluating the performance of its cash flow components and financial ratios; • Create financial forecasts with different scenarios; • Justify the acceptance or rejection of a loan based on credit analysis: • Learn to interpret loan covenants and the underlying collateral; • Discover the metrics that Moody’s uses to identify credit risk changes; • Explain how management...
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...millions of students who drop out without earning a degree. A bachelor's degree remains by far the clearest path to the American middle class. Even today, amid mounting concerns about the rising cost of higher education and questions about the relevance of many college degrees, recent graduates have lower rates of unemployment, higher earnings and better career prospects than their less educated peers. But as more Americans than ever before attend college, more too are dropping out before they ever don a cap and gown. That means millions of Americans are taking on the debt of college without getting the earnings boost that comes from a degree. Dropouts are more than four times as likely as graduates to default on their student loans. "Graduating with a lot of debt can be daunting," says Lauren Asher, president of the Institute for College Access and Success, an advocacy organization promoting access to higher education. "Having a lot of debt and not graduating is even more daunting." The complexity of the student-loan system -- a web of public, private and subsidized loans that together add up to more than $1 trillion -- makes it difficult to know exactly how much debt is held by dropouts. But the scale is massive. A 2011 study by the Institute for Higher Education Policy, a Washington, D.C.-based research firm, found 58% of the 1.8 million borrowers whose student loans began to be due in 2005 hadn't received a degree. Some 59% of them were delinquent on their loans or had...
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...Continuous Assignment – Individual Paper on marketing Ethics Ethical issue on UA Finance 1. Introduction Debts Consolidation Loan, launched by the UA Finance is a plan provided to people who have financial problem in paying the credit card debt. It states that it can help people as it minimizes the interest expenses, provides flexible repayment terms and tailor-made interest rate. 2. Problem identification and criticism In the following, I will identify the problems based on AMA (American Marketing Association) six basic sets of ethical values. A. Promoting a wrong concept – Responsibility and citizenship According to AMA six basic sets of ethical values, responsibility is referring to accept the consequences of our marketing decisions and strategies. It includes: -To make strenuous efforts to serve the needs of customers -To avoid using coercion with all stakeholders -To acknowledge the social obligations to stakeholders that comes with increased marketing and economic power -To recognize special commitments to economically vulnerable segments of the market such as children, the elderly, and others who may be substantially disadvantaged. Citizenship means to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner. It includes: -To...
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...Kingdom of Saudi Arabia Prince Sultan College for Tourism & Business Cooperative Training Report FIN 490 CREDIT RISK Al Rajhi Bank Prepared By: Omar Jameel Ajeeb I.D # 08122 Supervised By: Dr. Rasheed Small In Partial Fulfillment with the Requirements Of Bachelor Degree in Finance 2011 TABLE OF CONTENTS |Description |Page | |1. Introduction & Objective |3 | |2. Al Rajhi Bank Overview |5 | |3. My Department and its Functions |7 | |4. Topic Learned during the Training |11 | |5. Sample Daily Activities |15 | |6. Examples of Key Skills Developed |17 | |7. Opportunity to utilize the gained Skills |18 | |8. Training Strengths ...
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...my education and experience. Proven ability to handle all aspects of student eligibility and recruitment. Extremely skilled in responding to student inquiries and determining backgrounds, goals and objectives. Hands on experience of creating and implementing treasure and project finance reporting, loan agreement and payment collection policies monitoring, monitoring and bank accounts analysis, calculation of net cash, cash balance reporting, scheduling of subordinated loans, associated to financial strength of, companies, maintain cash, debt, and interest schedules, maintain online access to all bank accounts keep track of associated, service agreements, archive all project finance folders in a standard format this also, includes availability of all important documents electronically, work closely with project finance analyst for all existing and new, funding projects, track expenses and sources of funding for efficient funds management, maintain banking relationships act as liaison between bank personnel, and management, prepare and submit the funding proposals to banks, perform as a complete backup to project analyst, keep strict confidentiality of information. In depth knowledge of reviewing and making recommendations about applicants. I have over 9 years of collection experience with a profound knowledge of the FDCPA and HIPPA acts. Highlights Superior time management Superior multi-tasking Complex problem solving Accurate forecasting financial reporting expert Bookkeeping...
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...Course: This course reinforces the basic concepts of financial management. The course provides an in-depth discussion of key topics that are critical to financial management: (1) the goals of the firms, (2) financial statement analysis, planning, and forecasting, (3) working capital policy and management, (4) capital budgeting techniques without and with risk, (5) capital structure theory and application, (5) the cost of capital estimation, and (6) long-term financing decisions. In addition, the course examines issues such as lease financing, merger and acquisition, and international financial management. B. Instructional Methods: The delivery system throughout this course will be a combination of class discussion and case analysis. The case analysis will be both in a written format and oral presentation. The amount of lecture will be limited to detailed coverage of concepts pertaining to each individual case. REQUIRED BACKGROUND OR EXPERIENCE: A. Prerequisites: Fundamental of Financial Management (GBA 546), all required 500-level courses, and microcomputer proficiency. If a basic finance course was taken more than three years ago, students are strongly urged to retake GBA 546 again. Conditional, unclassified , or open university students are not...
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...first condition of sustained and rapid economic progress. Among various indicators of financial stability, banks’ non-performing loan (NPL) assumes critical importance since it reflects on the asset quality, credit risk and efficiency in the allocation of resources to productive sectors. Nonperforming loans (NPLs) refer to those financial assets from which banks no longer receive interest and/or installment payments as scheduled. They are known as non-performing because the loan ceases to “perform” or generate income for the bank. Choudhury et al. (2002: 21-54) state that the nonperforming loan is not a “uniclass” but rather a “multiclass” concept, which means that NPLs can be classified into different varieties usually based on the “length of overdue” of the said loans. NPLs are viewed as a typical byproduct of financial crisis: they are not a main product of the lending function but rather an accidental occurrence of the lending process (Woo, 2000: 2). This is because NPLs can bring down investors’ confidence in the banking system. Only for a few defaulting borrowers, the banks suffer, depositors suffer, performing borrowers suffer, shareholders suffer, Government suffers and consequently economy and the people of the country suffer. The latest data reveal that in Bangladesh banking sector the amount of NPL is Tk 2572.65 crores (7.17% of total loans) up to September 2011. The ratio of NPL was as high as 41.1% in 1999, which came down gradually to the present level as mentioned...
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...Student Name | Fernande Dasilva | Course and Section Number | Program of Study | FIN 1103 | Business Administration | Finance FIN 1103 Week 5 Individual Work Reducing Expenses to Buy a New Car and Considering Debt Consolidation Assignment Instructions | To complete this assignment: 1. Answer all of the questions below in the space provided. 2. Reflect on the information presented in this week’s lesson and provide an insightful response to each question writing no more than two paragraphs. | Save and Submit to Dropbox | 1. Save your work as a Microsoft Word 2010 (.docx) file that includes your name, course code, and title in the file name. For example: JaneSmith_FIN1103_Week5.docx. 2. To submit your assignment, go to the Dropbox and click "Submit Assignment." 3. Click on the drop-down menu to select the Week 5: Individual Work basket in the Dropbox. | Objective: Compare financial alternatives for major purchases Locate the Financial Planning Exercises on page 194 of your textbook. Financial Planning Case 4: Reducing Expenses to Buy a New Car | Courtney Bennett recently graduated from college and accepted a position in Manhattan, Kansas, as an assistant librarian in the public library. Courtney has no debts, and her budget is shown in the first column of Table 6-2. She now faces the question of whether to trade in her old car for a new one requiring a monthly payment of $330. Taking the role of a good friend of Courtney, suggest how Courtney might cut...
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...FRICTO Analysis to Making Financing Decisions in Practice: Two Case Examples in Australia George W. Kester, Washington and Lee University Jamie Mckellar, Thiess Pty Ltd Jeremiah Mulcahy, BHP Billiton Ltd This paper describes the use of the FRICTO analytical framework for comparing financing alternatives and making financing decisions. Two case examples in Australia are presented to illustrate how two former investment bankers have used the FRICTO framework to help clients make financing decisions that take into account flexibility, risk, income, control, timing and other considerations. They have found the analytical framework prompts decision-makers to consider other important issues beyond risk and the effect on earnings per share that reflect a company’s unique and often complicated circumstances. INTRODUCTION Modigliani and Miller (1958) advanced the proposition that based upon several simplifying assumptions, capital structure has no effect on the value of a firm. However, recognizing the impact of taxes, bankruptcy, agency costs, and asymmetric information, capital structure theory has evolved to acknowledge that the use of debt does affect the value of a firm. Modern theories of capital structure can be classified into two categories: “static tradeoff models” and the “pecking order hypothesis.” Static tradeoff models imply an optimal debtequity mix which is determined by a tradeoff between the benefits and costs of debt (i.e., balancing the tax advantages of debt against...
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... American Accounting Association DOI: 10.2308/iace-50497 Second Round Electronics: A Case for Critical Thinking Nathalie Johnstone, Brandy Mackintosh, and Fred Phillips ABSTRACT: This instructional case requires students to provide advice to a client who is currently the sole owner of a for-profit company that reconditions and sells used electronics. The client is considering purchasing a similar company with the vision of expanding into the sales and service of emerging technologies. The target company’s unaudited financial statements contain questionable accounting choices and judgments that appear to enable the company to meet external financial reporting constraints. In their role as financial advisers, students are expected to use critical thinking skills to identify and evaluate questionable choices in the target company’s financial statements. This case is suitable for use in introductory and intermediate financial accounting as well as introductory auditing and assurance courses, and can be used as a context for inclass discussion, as a basis for exam questions, and/or as a writing assignment. Assessment rubrics and Teaching Notes accompany the case for use by instructors. Keywords: financial accounting; policy choices; loan covenants; ratio analysis. THE CASE econd Round Electronics (SRE) is a privately owned company that reconditions and sells used consumer electronics. Its product offerings include home and car audio systems, televisions, and other devices with...
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