BUSN 379 DeVry Entire Course

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BUSN 379 DeVry Week 4 Discussion 1 Discuss the pros and cons of net present value. BUSN 379 DeVry Week 4 Discussion 2 Are there situations where a manger would prefer to use IRR? Why? BUSN 379 DeVry Week 5 Discussion 1 What is the difference between systematic and nonsystematic risk? What are some examples of each? BUSN 379 DeVry Week 5 Discussion 2 What are some statistical measures of risk and what type of risk do they measure? BUSN 379 DeVry Week 6 Discussion 1 How can you explain the concept of cost of capital? Do you believe that a firm should use the same cost of capital for all of its projects? Why or why not? BUSN 379 DeVry Week 6 Discussion 2 What is the impact of financial leverage on wealth creation? What is the relationship between financial leverage and risk? BUSN 379 DeVry Week 7 Discussion 1 How are the operating and cash cycles of the firm different? Why are they important? BUSN 379 DeVry Week 7 Discussion 2 What strategies can a firm use to optimize its cash cycle? BUSN 379 DeVry Week 2 Case Study Case I is due at the end of this week. Prepare a memo in Word, which answers the questions in the Chapter 2 Case, Cash Flows and Financial Statements at Sunset Boards, Inc., on page 51 of the textbook. Use Excel to solve any financial calculations. You will be graded on correct financial analysis, proper use of technology, business-like presentation of technology, and business-like presentation. Week 2 Case Study I. A. Prepare the following (You may put this in Word or submit an Excel):(60/60) 1. An income statement for 2013 and 2014. 2. A balance sheet for 2013 and 2014. 3. Operating cash flow for 2013 and 2014.Hint: find the capital spending and change in net working capital. Ending net fixed assets – Beginning net fixed assets + Depreciation = Net capital spending. Ending NWC – Beginning NWC = Change in NWC. Operating cash flow – Net capital spending – Change in NWC = Cash flow from assets. 4. Cash flow from assets for 2014
5. Cash flow to creditors for 2014 6. Cash flow to stockholders for 2014 A. How would you describe Sunset Boards’ cash flows for 2014?(15/15) Describe each of: positive earnings, cash flow from operations, net working capital, new fixed assets, total to all stakeholders, total to all bondholders, total to all stockholders. Take this from your work in A. A. What do you think about Tad’s expansion plans?(15/15) Hint, address these questions: Is the expansion plan risky? What is the cash flow? What is the capital spending? How much does the company have to raise from creditors? Can they afford to expand? BUSN 379 DeVry Week 4 Case Study Case II is due at the end of this week. For this assignment, prepare a memo in Word, which answers the questions in the Chapter 5 case, S & S Air's Mortgage, on page 165 of the textbook. Use Excel to do any financial calculations. You will be graded on correct financial analysis, proper use of technology, and business-like presentation. Good work effort with Week 4 Case Study II. 1. Mortgage Payments(10/10) a. What are the monthly payments for a 30-year traditional mortgage? b. What are the monthly payments for a 20-year traditional mortgage? 2. Amortization (15/15) a. Prepare an amortization table for the first six months of the traditional 30-year mortgage. Year / Beginning Balance / Total Payment / Interest Paymt / Principal Paymt / Ending Balance 1 / $35,000,000.00 / 212,098.17 / 177,916.67 / 34,181.51 / 34,965,818.49 2 / 34,965,818.49 / 212,098.17 / 177,742.91 / 34,355.26 / 34,931,463.23 3 / 34,931,463.23 / 212,098.17 / 177,568.27 / 34,529.90 / 34,896,933.32 4 / 34,896,933.32 / 212,098.17 / 177,392.74 / 34,705.43 / 34,862,227.89 5 / 34,862,227.89 / 212,098.17 / 177,216.33 / 34,881.85 / 34,827,346.04 6 / 34,827,346.04 / 212,098.17 / 177,039.01 / 35,059.17 / 34,792,286.88 a. How much of the first payment goes toward principal? Hint: just pull this number from your table. 3. Smart Loan (25/25) a. How long would it take for S&S Air to pay off the smart loan assuming 30-year traditional mortgage payments? Hint: The payment for a loan repaid with equal payments is the annuity payment with the loan value as the PV of the annuity. Bi-weekly payoff = Bi-weekly payoff =
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Page 5 and 6: 2.14 a. What is the OCF?(20/20) b.
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BUSN 379 DeVry Entire Course

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