Choose any one of the conditions where mental health issues are major contributors to the disease. Discuss the role of public health versus the individual in control and prevention of these diseases.
Imagine that you are a financial manager researching investments for your client. Think of a friend or a family member as a client. Define her or his characteristics and goals such as an employee or employer, relatively young (less than 40 years) or close to retirement, having some savings/property, a risk taker or risk averter, etc. Next, use Nexis Uni at the Strayer University library, located at Nexis Uni, click on “Company Dossier” to research the stock of any U.S. publicly traded company that you may consider as an investment opportunity for your client. Your investment should align with your client’s investment goals. (Note: Please ensure that you are able to find enough information about this company in order to complete this assignment. You will create an appendix, in which you will insert related information.)
Your final financial research report will be 6 to 8 pages long and be completed in two parts as noted below. This assignment requires you to use at least five quality academic resources and cover the following topics:
Rationale for choosing the company in which to invest
Ratio analysis
Stock price analysis
Recommendations
Refer to the following resources to assist with completing your assignment:
Stock Selection
Forbes: “Six rules to follow when picking stocks”
CNN Money: “Stocks: Investing in stocks”
The Motley Fool: “13 steps to investing foolishly”
Seeking Alpha: “The Graham And Dodd Method For Valuing Stocks”
Investopedia: “Guide to Stock-Picking Strategies”
Seeking Alpha: “Get Your Smart Beta Here! Dividend Growth Stocks As ‘Strategic Beta’ Investments”
Market and Company Information
U.S. Securities and Exchange Commission: “Market structure”
Yahoo! Finance
Mergent Online (Note: This resource is also available through the Strayer Learning Resource Center.)
Seeking Alpha (Note: This is also available through the Android or iTunes App store.)
Morningstar (Note: You can create a no-cost Basic Access account.)
Research Hub, located in the left menu of your course in Blackboard
Part 1 Due Week 7 (1 to 2 pages)
Provide a rationale for the stock that you selected, indicating the significant economic, financial, and other factors that led you to consider this stock.
Suggest the primary reasons why the selected stock is a suitable investment for your client. Include a description of your client’s profile.
Just list five resources you’ll use to complete this assignment and begin to build your reference list. Remember you must use at least five quality academic resources for the final assignment.
Part 2 Due Week 9 (6 to 8 pages including #1 and #2 from Part 1)
Include your rationale, primary reasons for stock selection, and client’s profile from Part 1, making any revisions based upon Part 1 feedback if applicable.
Select any five financial ratios that you have learned about in the text. Analyze the past 3 years of the selected financial ratios for the company; you may obtain this information from the company’s financial statements. Determine the company’s financial health. (Note: Suggested ratios include, but are not limited to, current ratio, quick ratio, earnings per share, and price earnings ratio.)
Based on your financial review, determine the risk level of the stock from your investor’s point of view. Indicate key strategies that you may use in order to minimize these perceived risks.
Provide your recommendations of this stock as an investment opportunity. Support your rationale with resources, such as peer-reviewed articles, material from the Strayer University Library, and reviews by market analysts.
Conduct a literature review and list at least five quality academic resources. Note: Wikipedia and other similar websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double-spaced, using Times New Roman font (size 12), with 1-inch margins on all sides; citations and references must follow the Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
Properly cite all sources.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are as follows:
Determine the suitability of an investment strategy that considers external risk factors and a literature review.
Create investment recommendations based on research that includes the rationale and risk mitigation for the chosen strategies.
Potential risk factors are found in every project. Although individual projects have different risks, there are several common risk factors.
Create either a list or chart of 5 common potential risks. In 1 to 2 sentences, briefly explain why each of these risks are so common. How are they measured? Why are these important to consider when evaluating an organization’s strategic plan?
Choose any of the conditions where behavioral and lifestyle factors are major contributors to the disease or its underlying conditions. Compare and contrast the role of the public health versus the individual in control and prevention of these diseases.
Chapter 13
1. 1. Why do you think U.S. firms commonly use joint ventures as a strategy to enter China?
2. 2. What are some risks of international business that may not exist for local business?
Chapter 14
3. 3. Capital Budgeting With Hedging. Baxter Co. considers a project with Thailand’s government. If it accepts the project, it will definitely receive one lump sum cash flow of 10 million Thai baht in five years. The spot rate of the Thai baht is presently $0.03. The annualized interest rate for a 5-year period is 4% in the U.S. and 17% in Thailand. Interest rate parity exists. Baxter plans to hedge its cash flows with a forward contract. What is the dollar amount of cash flows that Baxter will receive in five years if it accepts this project?
4. Sensitivity of NPV to Conditions. Burton Co., based in the U.S., considers a project in which it has an initial outlay of $3 million and expects to receive 10 million Swiss francs (SF) in one year. The spot rate of the franc is $.80. Burton Co. decides to purchase put options on Swiss francs with an exercise price of $.78 and a premium of $.02 per unit to hedge its receivables. It has a required rate of return of 20 percent.
a. Determine the net present value of this project for Burton Co. based on the forecast that the Swiss franc will be valued at $.70 at the end of one year.
b. Assume the same information in part (a), but with the following adjustment. While Burton expected to receive 10 million Swiss francs, assume that there were unexpected weak economic conditions in Switzerland after Burton initiated the project. Consequently, Burton received only 6 million Swiss francs at the end of the year. Also assume that the spot rate of the franc at the end of the year was $.79. Determine the net present value of this project for Burton Co. if these conditions occur.
Homework Problems for Chapters 15 and 16
Due Week 8 and worth 40 points
WEEK 8:
Chapter 15: International Corporate Governance and Control
Chapter 16: Country Risk Analysis
Chapter 15
1. 1. What are some of the barriers to international acquisitions?
2. 2. Why a Foreign Acquisition May Backfire Provide two reasons why an MNC’s strategy of acquiring a foreign target could backfire. That is, explain why the acquisition might result in a negative NPV.
3. Valuation of a Foreign Target. Gaston Co. (a U.S. firm) is considering the purchase of a target company based in Mexico. The net cash flows to be generated by this target firm are expected to be 300 million pesos at the end of one year. The existing spot rate of the peso is $.14, while the expected spot rate in one year is $.12. All cash flows will be remitted to the parent at the end of one year. In addition, Gaston hopes to sell the company for 800 million pesos (after taxes) at the end of one year. The target has 10 million shares outstanding. If Gaston purchases this target, it would require a 25 percent return. The maximum value that Gaston should pay for this target company today is ____ pesos per share. Show your work.
4. Country Risk and Project NPV. Atro Co. (a U.S. firm) considers a foreign project in which it expects to receive 10 million euros at the end of one year. While it realizes that its receivables are uncertain, it decides to hedge receivables of 10 million euros with a forward contract today. As of today, the spot rate of the euro is $1.20, while the one-year forward rate of the euro is presently $1.24, and the expected spot rate of the euro in one year is $1.19. The initial outlay of this project is $7 million. Atro has a required return of 18%.
a. Estimate the NPV of this project based on the expectation of 10 million euros in receivables.
b. Now estimate the NPV based on the possibility that country risk could cause a reduction in foreign business, such that Atro Co. only receives 4 million euros instead of 10 million euros at the end of one year. Estimate the net present value of the project if this form of country risk occurs.
Select one (1) MNC that does not currently do business in China. Next, consider the steps that the company should consider in determining the feasibility of entering the Chinese market and establishing a market for its products or services there.
Use the Strayer University Library at https://research.strayer.edu and the following links to conduct a country risk assessment (CRA) on China:
Bureau of Economic Analysis: www.bea.gov
Transparency International Corruption Perceptions Index: http://www.transparency.org/cpi2013/results
Ranking of Economies-World Bank: http://www.doingbusiness.org/rankings
IMF Home Page: http://www.imf.org/external/index.htm
Country Risk Classification-OECD: http://www.oecd.org/tad/xcred/crc.htm
World Trade Organization Home Page: http://www.wto.org/
Geert Hofstede’s Country Comparison Dimensions: https://www.hofstede-insights.com/product/compare-countries/
Focus on the following areas: corruption, political stability, exchange rate stability, regulatory oversight, freedom of the press, and rule of law. Research other factors that you believe you should evaluate. Additionally, consider the importance of culture in evaluating risk.
Write an eight to ten (8-10) page paper in which you:
Summarize the business that you selected and provide a two to three (2-3) paragraph justification as to why China would be a viable market for the selected business.
Examine the exchange rate of the U.S. dollar and the Chinese yuan for the last 24 months. Explain the major overall changes that have occurred and speculate on the key economic variables that most likely have influenced the exchange rate movements. Provide a rationale for your response.
Analyze the major challenges in international arbitrage and interest rate parity associated with transaction and translation exposure within the Chinese market. Based on what you have gleaned from your analysis, predict the major changes that you believe will occur in the next 24 months. Justify your response.
Recommend key steps that the chosen MNC could take to mitigate or eliminate exposure to international economic conditions. Suggest one (1) method that the MNC in question could use with derivatives in order to mitigate or eliminate such risks. Provide a rationale for your response.
Recommend one (1) hedging technique geared toward managing the economic, transaction, and translation exposure in the Chinese market. Justify your response.
Conduct a country risk assessment to ascertain whether management should support the proposal for your chosen MNC to enter into the Chinese market. Based on Geert Hofstede’s six (6) dimensions of culture, predict three (3) likely problems posed by the cultural differences between the chosen MNC’s culture and the Chinese culture. Provide a rationale for your response.
Use at least six (6) quality references, with at least two (2) from peer reviewed journal articles.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Compare multinational financial management to domestic financial management.
Apply the key trade theories and methods, and analyze the factors that influence trade and capital flows.
Evaluate the major international financial markets to determine effective methods for financing global business operations.
Analyze the economic variables that influence exchange rate movements and equilibrium price to anticipate fluctuations and minimize the negative impact on international business operations.
Formulate strategies to use currency derivatives for foreign exchange risk management and for speculation by multinational corporations.
Apply the concepts of international arbitrage, exchange rate trend analysis, Interest Rate Parity (IRP), Purchasing Power Parity (PPP), and the International Fisher Effect (IFE) theories to forecast exchange rate changes, and market conditions.
Analyze the exchange rate risks associated with transaction, economic, and translation exposure in global markets, and develop risk management strategies to minimize the impact on international business operations.
Apply a hedging technique to manage the risks of transaction, economic, and translation exposures.
Evaluate capital budgeting projects (foreign investments and acquisitions) to make foreign investment decisions.
Conduct country risk analysis to support the formulation of foreign investment strategies.
Formulate an overall corporate financial strategy to support short-term and long-term financing of global operations including sources of capital, interest rate analysis, tax considerations, trade finance, and working capital requirements.
Evaluate the sources of financing international trade and short-term liquidity needs.
Analyze international cash management techniques to optimize cash flows from multinational company perspectives.
Use technology and information resources to research issues in international finance.
Write clearly and concisely about international finance using proper writing mechanics.
Create a unique hypothetical weighted average cost of capital (WACC) and rate of return. Recommend whether or not the company should expand, and defend your position.
“Transaction and Translation Exposure”
Please respond to the following:
From the case study, determine whether Blades’ financial position would be affected based on transaction, translation, or economic exposure. Provide one (1) example of the type of exposure that supports your answer. Justify your response.
From the case study, recommend whether Blades should import components from Japan to reduce its transaction exposure in the long run. Provide a rationale to support your response.
Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial client base is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these plans in mind, you need to answer for yourself, and potential investors, the following questions:
What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.
Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?
What is corporate governance? List five corporate governance provisions that are internal to a firm and are under its control.
Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?
Briefly explain how regulatory agencies and legal systems affect corporate governance.
On-Page 584 of your Heizer and Render text, please read the case study on MRP at Wheeling coach (attached) and prepare a comprehensive case summary.
Your case summary must include each of the following requirements:
Summarize the relevant background information from the case.
Identify the business problem or challenge that the organization faces.
Comment on the appropriateness of the actions taken by the organization.
Provide at least two recommendations that would improve efficiencies. Base your recommendations on the weekly chapter content.
Answer the discussion questions at the end of the case in the text.
Review the ethical dilemma (attached) on Revenue Management considering customer acceptance.
Write a comprehensive response to the scenario described and answer any question posed. Your initial post shall take a stance and present arguments to support your position.
