Category: Finance

”If bonds of different maturities are close substitutes, their interest rates are more likely to move together.”Is this statement true,false,or uncertain? Explain your answer. (3Marks)
2.Suppose that increases in the money supply led to a rise in stock prices. Does this mean that when you see that the money supply has had a sharp rise in the past week, you should go out and buy stocks? Why or why not? (3Marks)
3. Describe two ways in which financial intermediaries help to lower transaction costs in an economy like Kingdom of Saudi Arabia (2Marks)
4.How can conflicts of interest make financial service firms less efficient? (2Marks)
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notes:
answer questions in details
Add citations

This assignment is an individual assignment.
·The assignment must be submitted in WORD format only.
·Assignments submitted through email will not be accepted.
·Students are advised to make their work clear and well presented, marks will be deducted for poor presentation. This includes filling your information on the cover page.
·Students must mention question number clearly in their answers.
·Late submission will NOT be accepted.
·Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
·All answers must be typed using Times New Roman font (size 12, double-spaced). No pictures containing text will be accepted and will be considered plagiarism.
Submissions without this cover page will NOT be accepted.

The Case Study Information is in the word document. there are 5 questions that must be answered using the data provided.

This project is closely aligned with the Course Outcomes and Finance Program Objectives.  Completion of this project can be used as part of a portfolio to show potential employers the student is skilled at performing company valuations and financial statement analysis and can be included on the student’s resume.
The project will be completed as an Individual Assignment. THE COMPANY to be analyzed for this project is selected by the instructor. The company is Morgan Stanley.
OBJECTIVE
You are to assume you have been recently hired by THE COMPANY (selected by instructor). The head of your team is the CFO who is concerned about THE COMPANY’s current financial performance. The CFO would like your team to provide insights that will help them to project future financial performance. Specifically, the primary question to answer is to analyze the company’s financial trends over the most recent available 2-3 years, and which steps should be taken to improve its financial stability?
THE COMPANY that is to be analyzed for this project is to be a company selected by instructor. Alternatively, you can request approval of another publicly traded company. This request must be submitted before the end of the first week of the course. The request must include:
* identification of the company by ticker symbol and name
* a reasonable and appropriate explanation of why you want to examine the alternative company
* the source of the analyst’s report that will be used in the analysis (which must be submitted to me)
* acknowledgement by you that all of the specific elements of the assignment (see below) will be prepared by you and included in the final research project report. 
 
YOUR SPECIFIC ASSIGNMENT
Please note that you don’t need to sign up for any premiums or to pay for any information for the project.
Using the information from the websites the students will develop common-size and trend analysis for THE COMPANY (SELECTED BY INSTRUCTOR). (The evaluation portion will total 85% of the assignment grade)  
-1—Introduction (5% of the project grade)- The paper should begin with a short introduction that explains the purpose of the paper and provides an overview of the contents that follow (one short paragraph). 
-2— Common-size analysis of the income statement (35% of the project grade).
Financial statements are available in www.marketwatch.com  -To find the information for your company you need to type the stock symbol in the Search window to get into the company’s page. Click on Financial > Income Statement > Annual.
* Create the table that contains the most significant common-size analysis results of the of the income statement for the most recent available 2 years for THE COMPANY assigned for you for the project. To calculate common-size income statement results please follow the formula 5.9 from part 5.7 of chapter 5 of the textbook.Present the table in your project.  Your table should include the amounts of USD in Millions and Percentage out of Revenue or Sales.
* Sales or Revenue
* Cost of Goods Sold or Cost of Revenue
* Gross Profit
* Operating Income
* Interest Expense
* Income Tax
* Net Income
* Write about 2 pages of the analysis of the results you received.  What important information does this analysis provide?
-3- Trend analysis (30% of the project grade)
The growth rates are available in www.marketwatch.com  -To find the information for your company please type the stock symbol in the Search window to get into the company’s page. Click on Financial > Income Statement (or Balance Sheet) > Annual. Please use horizontal scroll below the table to see more years.
If you use published growth rates you must indicate that and cite the source.
* Create the table that contains the following data for your COMPANY over the most recent available 3 years. Present this table in your project.
* Sales Growth rates,
* COGS Growth rates,
* Net Income Growth rates,
* Total Liabilities / Total Assets Growth rates
* In addition, create the graphs for the most significant results on your choice and present them in your project.
* Write about 2 pages of the analysis of the financial trends and their stability. In your analysis compare the financial trends of your company to the results of the common-size analysis. What important information does this analysis provide?
-4- Develop a specific recommendation, with supporting rationale, as to whether the assigned company’s recent trends demonstrate sufficient financial strength, will THE COMPANY be financially sustainable over the next several years, and which steps should be done to improve its financial stability? (about 1 page) (10% of the project grade). Your recommendations should be based on the results of your analysis of the project.
-5- Reflection – the student should write a paragraph in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace. (5% of the project grade)
PRESENTATION OF PAPER AND WRITING (15%) of the project grade):
-Organization, Format and Presentation of Paper including the Title page, Introduction, Body, and Summary. Each section of the paper must begin with sub-headings.  Please use the sub-headings included in the assignment. Please use double space, with one-inch margins, and use 12-point Times New Roman font. (4% of the project grade)
Use of Tables, Figures and Other Graphics to Summarize and Support Analysis Presented in the Paper. All tables and charts should have the numbering system, like “Table 1…”, the title, and foot/end note to reference the source of the information. (3% of the project grade)
Logical and Smooth Flowing Transitions and Relationships among Sections of the Written Report (3% of the project grade)
Research Sources and Significance of Research Information and Data, Use of APA Citation Methodology (5% of the project grade)

Start with a clear summary. Begin your report with a brief overview of the main accomplishments, challenges, and upcoming priorities for the week. This sets the context for the rest of the report.
Highlight key accomplishments. List the significant achievements, milestones, or completed tasks during the week. Focus on outcomes that align with the team or organization’s goals and objectives.
Address challenges and solutions. Briefly mention any notable challenges encountered and the corresponding solutions or strategies implemented to overcome them. This demonstrates problem-solving skills and resilience.
Outline upcoming priorities. Identify the main priorities and tasks for the upcoming week. This helps provide clarity on the team’s focus and objectives and ensures alignment with organizational goals.
Keep it concise and organized. Use bullet points or numbered lists to present information in a clear and concise manner. Headings and subheadings should be utilized to separate different sections of the report.
Summary should be a minimum of 150 words in length.

Case Study Instruction:
Use this document to prepare the PowerPoint for your assignment. This case study is an adaptation of a case study published by the instructor a few years ago.

The purpose of this scholarly activity is to analyze fundamental aspects of corporate finance management in multinational corporations. You will research a multinational corporation to focus on for the assignment, provide a brief overview, examine supply chains and working capital management, analyze financial management of the corporation, and make recommendations for financial decisions. Include the following components in your case study: 1. Select a multinational corporation (MNC): 2. Ensure there is sufficient data for analysis based on requirements listed below. Provide a brief overview of the MNC: In the introduction of your case study, describe the MNC, its business, products/services, and key markets. Highlight its operations in different countries. Discuss recent stock distributions through dividends or repurchases. 3. Analyze supply chains and working capital management (Choose 2 from below): Describe the company’s supply chain management strategy. Analyze the financing policies used by the MNC for its current assets. Evaluate the company’s cash conversion cycle. Discuss the company’s cash management techniques. Analyze the goals of the company’s inventory management. 4. Examine multinational financial management (Choose 2 from below): Enumerate reasons why the MNC decided to go global. Illustrate any significant transactions the MNC has had between countries with different currencies. Discuss challenges the MNC faces with floating exchange rates and its management strategies. Analyze the relationships the MNC has with inflation, interest rates, and exchange rates. 5. Make recommendations: Based on your analysis, provide two to three recommendations for the MNC’s future financial decisions in the context of global operations. Explain how the MNC can use planning techniques to forecast operations. Examine internal controls the MNC can use to ensure its operations run smoothly and ethically in the global marketplace. 6. Provide a conclusion: Briefly summarize the key findings of your analysis. Compile your analysis and recommendations into a comprehensive report, ensuring it is well-structured and professionally presented. The report should range from four to five pages. You are required to use at least four sources. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.

Tactical financing decisions are essential as they guide a company’s immediate financial strategies. They encompass the decisions about how a company obtains and uses funds in the short term. In this journal entry, you will dive deep into a real-world example, analyzing a company’s recent tactical financing decision and suggesting alternative approaches. This exercise will help cement your understanding of the concepts from the lesson and textbook as you apply them in a practical context. Start by selecting a company whose recent tactical financing decision piqued your interest. It could be a company that recently went public, secured a new lease agreement, or issued hybrid financing instruments such as preferred stocks or convertible bonds. Analysis: Based on the knowledge you’ve gained in this unit, briefly describe the company’s recent tactical financing decision. Assess the potential benefits and challenges of this decision for the company. Alternative financing decisions: Drawing from your understanding of public and private financing, lease financing, and hybrid financing, propose at least two alternative financing strategies the company could have considered. Predict the potential impact of each of your proposed alternatives on the company’s value. Would your proposed alternatives increase or decrease the company’s value? Why? Reflection: Conclude your journal entry by reflecting on the importance of tactical financing decisions in the broader spectrum of corporate finance. What did you find most intriguing about the company’s choice, and how do you perceive the role of such decisions in shaping a company’s financial future? Ensure your journal entry is at least 200 words. Write clearly and concisely, focusing on providing a well-thought-out analysis. While references and citations are not mandatory, if you pull specific data or quotes, ensure they are accurately represented. Review your work for clarity and coherence before submitting.

Pratice E–x-a-m Time: 14/10/2024 (Adelaide Time)
Duration :
Question structure:
The examination will consist of short answer conceptual questions and practical exercises/problem questions. The questions will be comparable to those covered in class; therefore, the best form of revision will be to work through lecture and tutorial questions, exercises and problems.
Topic covered: Similar to that screenshot attached

Week 5: Discussion Board
1. Explain some of the factors that can affect the cost of capital and describe whether or not it is something that a company can control.
2. Why does WACC increase and IRR decrease as the capital budget increases? Are there any steps management can take to reverse these trends?
3. How should a company prioritize all of its capital project opportunities? In responding invoke the various methodologies learned this week and how to use them for ranking projects.
Response to first two questions due by Wed at 11:59pm ET
Response to third question and replies due by Sat at 11:59pm ET

DB POSTING REMINDERS:
You may not use any quoted material even if sources are cited. Please make sure all posts are written entirely in your own words.
When you make your initial post, please fully answer the question and make substantive responses – i.e. at least 600 words that really dive into the topic and show that you’ve read the text and done research to support your opinions.