Category: Financial Management

How do you feel about the following statement: “Avoiding risks is the biggest risk of all”? That statement may seem contradictory at first, but it makes more sense if you apply the concept to various situations in life and business. For example, many people pursue a college degree because they feel it will increase their job prospects and earning potential. This can turn out to be true but is not a guarantee. Others may find this path too risky and prefer to enter the job market right away. Although the first group of people take the risk of their college degree paying off in the long run, the second group are also taking the risk of limiting their potential for the future. Similarly, the nature of entrepreneurship is built upon the risk of investing time and money into something that could potentially fail. Even established businesses could become outdated or be outperformed if they stop taking certain risks. Just as the concept of risk can apply in a general sense, it also applies to investments that individuals and businesses make. Calculated investment risks are not always guaranteed to pay off, but a zero-risk approach may not be as safe as it sounds either.
In this Assignment, you will address questions related to returns and risk premiums.
Submit your responses to the following prompts.
1. Explain the differences between the arithmetic return and the geometric return. Include in your explanation what factor determines the difference between arithmetic returns and geometric (compounded) returns. (75–150 words, or 1–2 paragraphs)
2. If you own a stock with volatile returns over a 2-year period, will the average return be higher or lower than the geometric return? Explain why. (75–150 words, or 1–2 paragraphs)
3. Why is it more convenient to display your investment returns in percentage terms rather than dollar terms? (75–150 words, or 1–2 paragraphs)
4. Would a common stock or a corporate bond demand a higher risk premium? Explain why. (75–150 words, or 1–2 paragraphs)
5. What are the differences between a bond risk premium and an equity risk premium? (75–150 words, or 1–2 paragraphs)
6. Explain whether it is possible to earn excess returns without taking on additional risk. (75–150 words, or 1–2 paragraphs)
Note: For each prompt, be sure to reference at least one scholarly source to support your answer provided.

For bond investors, it is usually less difficult to value a bond as opposed to a stock. Investors who seek bonds will have a lot of known factors to aid them, such as the coupon rate, maturity date, and credit rating. However, there are certain unknown factors when valuing bonds that can be difficult to predict, such as interest rates and inflation.
In this Discussion, you will select a bond and explain how a feature of that bond is used to determine its value.
To prepare:
Select a type of bond feature, and consider why it is important, as well as whether it adds value to either the investor or the issuer. Also, review the concept of yield-to-maturity and its importance to valuing a bond.
Post a 150- to 225-word (2- to 3-paragraph) explanation of how your selected bond feature is used to determine the value of a bond. In your explanation, include the following:
1. Describe the bond feature you selected in detail.
2. Explain how the feature is used to determine bond value, including the importance of yield-to-maturity.
To support your response, be sure to reference at least one properly cited scholarly source provided.

Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business. —Peter Lynch
What does it mean to own a stock? You may know that a stock is an investment and that it can go up or down, but there is more to owning a stock than that. When you own a stock, you own a fraction of the company. If it is just one stock, then it is likely an incredibly small fraction, but institutional investors and even some individuals may accumulate enough stock in a company to own a significant portion of the company. It is important for you, as a shareholder of the company, to understand that you may be entitled to certain privileges, such as voting rights or dividends. Additionally, there are different types of stocks (e.g., common and preferred), and you should understand the difference between them before making an investment decision in a company.
For this Assignment, you will explain the differences between common stock and preferred stock, as well as explain other aspects of common stocks, such as potential total return and valuation. You will describe how dividends affect stocks and their total returns.
Submit your responses to the following prompts.
1. What are a few differences between common stock and preferred stock? (75–150 words, or 1–2 paragraphs)
2. What makes up the potential total return of a common stock that you purchase? (75–150 words, or 1–2 paragraphs)
3. Why are stocks generally more difficult to value than bonds? (75–150 words, or 1–2 paragraphs)
4. Why might a company choose to not pay dividends? (75–150 words, or 1–2 paragraphs)
5. Under what two assumptions can you use the dividend growth model to determine the value of a share of stock? (150–225 words, or 2–3 paragraphs)
6. Based on the dividend growth model, what are the two components of the total return on a share of common stock? Which do you think is typically larger? (75–150 words, or 1–2 paragraphs)
Note: For each prompt, be sure to reference at least one scholarly source to support your answer provided below.
Investing Made Simple. (2018). What is a preferred stock – Preferred stocks 2018Links to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=QZUOKmqMTkw
FinanceKid. (2017). How to use dividend valuation methods to value a stockLinks to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=7T8sgT-otDU
Mrfinance. (2012). Preferred stock valuationLinks to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=w5X0Ri8LopY
Subjectmoney. (2013). Dividend discount model (DDM) – Constant growth dividend discount model – How to value stocksLinks to an external site.. [Video file]. Retrieved from https://www.youtube.com/watch?v=n76Pz3HOBPo

A great company is not a great investment if you pay too much for the stock.
—Benjamin Graham, The Intelligent Investor
After developing a fundamental understating of stocks (i.e., what they represent, how they are obtained, etc.), a prudent investor could focus on improving his or her ability to determine the value of stocks. Investing in stocks while they are undervalued can lead to impressive returns, but buying overvalued stocks can lead to painful losses. The process of valuing stocks can be difficult and is sometimes as much of an art as it is a mathematical exercise—especially when attempting to predict future cash flows for young, growing companies. In this Discussion, you will determine the value of a stock and describe how you did so with your colleagues, as well as provide a recommendation of whether or not you would recommend buying the stock.
To prepare:
Locate a common stock to use for this Discussion. (Note: You could use the NASDAQ siteLinks to an external site. from the Week 2 Discussion, or you could search for a stock on Google Finance or Yahoo Finance.)
Refer to this week’s Learning Resources on Stock Valuation and determine the value of the stock.
Review the Academic Writing Expectations for 2000/3000-Level Courses,
Post a 150- to 225-word (2- to 3-paragraph) explanation of the value of your selected common stock. In your explanation, do the following:
1. Describe the common stock that you located, including a link to the web page where you located the information about the stock.
2. Explain what the value of the stock is and describe how you determined its value.
3. Provide a rationale for why or why not you would recommend investing in the stock.
To support your response, be sure to reference at least one source provided.
Investing Made Simple. (2018). What is a preferred stock – Preferred stocks 2018Links to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=QZUOKmqMTkw
FinanceKid. (2017). How to use dividend valuation methods to value a stockLinks to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=7T8sgT-otDU

Submit your responses to the following prompts.
Explain e-business, e-commerce, and their main features.
Compare three major e-commerce business models.
For each of the e-commerce business models you selected in the previous question, provide an example of a scenario in which the selected business model would be most appropriate and explain why. Additionally, provide an example scenario for each business model that would not be appropriate and explain why.
For each model you identified in the second question, identify the information technology components required to enable their organizational function.
The Basics of E-Commerce
Whether you were familiar with the term or not, it is likely that you have participated in e-commerce. This is true if you have ever bought an item online, sent an electronic invoice at your job, or renewed you driver’s license online. E-commerce is used to make transactions between various entities—including people, companies, and governments. Through these resources, you will explore the basics of e-commerce and the different types of e-commerce models that organizations can implement.
Bhalla, P. (2017, December 5). Types of eCommerce business models, pros, and consLinks to an external site. [Blog post]. Retrieved from https://www.kartrocket.com/blog/ecommerce-business-models-types-pros-cons/
Time Estimate: 4 minutes
Chen, M. (2013, November 4). E-commerce: Business modelsLinks to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=DW6Bg_BjeWQ
Note: The approximate length of this media piece is 13 minutes.
Ecommerce Guide. (2018). What is ecommerce?Links to an external site. Retrieved from https://ecommerceguide.com/guides/what-is-ecommerce/
Time Estimate: 23 minutes
Fernandes, J. (2014, October 5). Types of e-commerceLinks to an external site. [Blog post]. Retrieved from https://bloomidea.com/en/blog/types-e-commerce
Time Estimate: 5 minutes
Hasan, M. (2013, November 12). Major types of e-commerceLinks to an external site. [Video file]. Retrieved from https://www.youtube.com/watch?v=FAyit_s9eY0
Note: The approximate length of this media piece is 7 minutes.
Rouse, M. (2018). E-commerce (electronic commerce or EC)Links to an external site.. Retrieved from https://searchcio.techtarget.com/definition/e-commerce

You will remember from the Week 1 Assignment that Medi-Supply is a small but growing company that sells medical devices to hospitals in the local area. The company wants to expand their distribution regionally and hopefully nationally with their innovative devices. They are looking for investors as well as seeking out potential banks to borrow funds for expansion. These investors require standardized financial statements and are very hesitant to get involved with any companies before ensuring their adherence to ethical business and financial practices, in order to avoid tarnishing their reputation.
USW1_XYZ_Logo_a_circle.pngThe owner of Medi-Supply has hired XYZ Corporation to provide consulting services to help them sort through their financial data, build their financial statements to display to potential investors, and help them ensure they are on track with their goals and are avoiding any potential risks. You have been assigned to this project by your manager, Tim Lewis. Tim asks you to compile the results of your review into a series of reports, with detailed financial statements included.
In Week 1, you completed a business report on the management goals and financial ethics of Medi-Supply company. This week, you will continue your work by preparing financial statements and a business report related to your findings.
Using the Financial Statement Excel Template, which includes the needed data, prepare a balance sheet for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.
Using the Business Report Template, how would you interpret the quality of the balance sheet? In your response, be sure to address whether there is excessive leverage, enough cash to make payroll and/or buy equipment, et cetera. (75–150 words, or 1–2 paragraphs)
Based on your interpretation of the balance sheet, would you recommend lending to the company? Explain why or why not, including any potential risks.
Using the Financial Statement Excel Template, which includes the needed data, prepare an income statement for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.
Using the Business Report Template, address the following using Medi-Supply’s income statement:
Interpret the quality of the income statement for this company. Is the income statement improving or deteriorating over time? Explain your answer, including why you reached your conclusion. (75–150 words, or 1–2 paragraphs)
Describe whether or not this company is profitable. If the company is unprofitable, explain if it is growing fast enough for sales to outpace expenses. (75 words, or 1 paragraph)
Based on their income statement, would you invest in the company?
Using the Financial Statement Excel Template, which includes the needed data, compute the operating cash flow for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.
Using the Business Report Template, address the following using Medi-Supply’s operating cash flow:
Interpret the quality of the operating cash flow for this company. Is the operating cash flow improving or deteriorating over time? Explain your answer, as well as why you reached your conclusion. (75–150 words, or 1–2 paragraphs)
Describe whether or not the company generates positive cash flow from operations. (75 words, or 1 paragraph)
Based on the quality of their cash flow, would you invest in the company?

Visit the Nasdaq Company List at http://www.nasdaq.com/screening/company-list.aspxLinks to an external site. and locate a public company of your choosing. Select the company’s page and scroll down to the Fundamentals section of the navigation menu. Click on Income Statement.
Review the company’s Income Statement, Balance Sheet, and Operating Cash Flow for the periods listed.
Take note of any trends, whether positive or negative. Year over year, has the company performed well? Do you note any risks or areas for concern?
Post a 75- to 150-word (1- to 2-paragraph) descriiption of your selected public company’s financial outlook based on the financial statements you reviewed. In your descriiption, include the following:
A link to the company’s NASDAQ page, as well as the name and stock symbol
A brief explanation of whether you would invest in the company based on the financial trends you observed (Note: You do not need to provide detailed financial data in your response; focus instead on overall trends year over year for the periods listed.)
To support your response, be sure to reference at least one properly cited scholarly source.

Although it may seem that unethical practices in the business world are more prevalent in recent years, they have existed in one way or another throughout history. The business structures or sales methods may look different from generation to generation, but there will be people who still use corrupt methods and take advantage of others, and for that reason organizations and consumers must diligently avoid becoming a victim or perpetrator of unethical practices. In this Assignment, you will explain how a business can avoid unethical and deceptive financial reporting practices, as well as explain the company’s financial and management goals.
Medi-Supply is a small but growing company that sells medical devices to hospitals in the local area. The company wants to expand their distribution regionally and hopefully nationally with their innovative devices. They are looking for investors as well as seeking out potential banks to borrow funds for expansion. These investors require standardized financial statements and are very hesitant to get involved with any companies before ensuring their adherence to ethical business and financial practices, in order to avoid tarnishing their reputation.
USW1_XYZ_Logo_a_circle.pngThe owner of Medi-Supply has hired XYZ Corporation to provide consulting services to help them sort through their financial data, build their financial statements to display to potential investors, and help them ensure they are on track with their goals and are avoiding any potential risks. You have been assigned to this project by your manager, Tim Lewis. Tim asks you to compile the results of your review into a series of reports, with detailed financial statements included.
ubmit your business report that addresses the following prompts.
Explain what types of financial and management goals Medi-Supply might have as the company moves forward to look for investors. (75–150 words, or 1–2 paragraphs)
Explain how Medi-Supply can avoid unethical practices in its financial reporting methods. Be sure to provide information on handling material non-public information correctly, developing an internal process for reporting unethical activities, reporting revenue appropriately, showing accurate debt with balance sheets that are balanced, and avoiding hidden reserves. Additionally, describe at least two other unethical financial reporting methods that could impact customers or shareholders.
Babooshka, D. (2017). Ethical issues on a financial statementLinks to an external site.. Retrieved from https://bizfluent.com/info-7850925-ethical-issues-financial-statement.html
Time Estimate: 4 minutes
Beers, B. (2018). Ethics in finance: How it affects professionalsLinks to an external site.. Retrieved from https://www.investopedia.com/articles/financialcareers/09/professional-standards-ethics.asp
Time Estimate: 6 minutes
Rev-Ignition. (n.d.). 5 ethical concerns in financial reporting and analysisLinks to an external site. [Blog post]. Retrieved March 19, 2019, from https://www.rev-ignition.com/5-ethical-concerns-financial-reporting-analysis/

The course project consists of a number of activities contained within a single document and is designed to give you practice in making use of what you’ve learned. The project has three parts, one for each module in this course. You will complete each part in the attached document.
For Part two use the attached financial statements from New York Presbyterian Hospital and Robert Packer Hospital

Although it may seem that unethical practices in the business world are more prevalent in recent years, they have existed in one way or another throughout history. The business structures or sales methods may look different from generation to generation, but there will be people who still use corrupt methods and take advantage of others, and for that reason, organizations and consumers must diligently avoid becoming a victim or perpetrator of unethical practices. In this Assignment, you will explain how a business can avoid unethical and deceptive financial reporting practices, as well as explain the company’s financial and management goals.
Medi-Supply is a small but growing company that sells medical devices to hospitals in the local area. The company wants to expand their distribution regionally and hopefully nationally with their innovative devices. They are looking for investors as well as seeking out potential banks to borrow funds for expansion. These investors require standardized financial statements and are very hesitant to get involved with any companies before ensuring their adherence to ethical business and financial practices, in order to avoid tarnishing their reputation.
The owner of Medi-Supply has hired XYZ Corporation to provide consulting services to help them sort through their financial data, build their financial statements to display to potential investors, and help them ensure they are on track with their goals and are avoiding any potential risks. You have been assigned to this project by your manager, Tim Lewis. Tim asks you to compile the results of your review into a series of reports, with detailed financial statements included.
Submit your business report that addresses the following prompts.
1. Explain what types of financial and management goals Medi-Supply might have as the company moves forward to look for investors. (75–150 words, or 1–2 paragraphs)
2. Explain how Medi-Supply can avoid unethical practices in its financial reporting methods. Be sure to provide information on handling material non-public information correctly, developing an internal process for reporting unethical activities, reporting revenue appropriately, showing accurate debt with balance sheets that are balanced, and avoiding hidden reserves. Additionally, describe at least two other unethical financial reporting methods that could impact customers or shareholders. (225–300 words, or 3–4 paragraphs)
Note: For each prompt, be sure to reference at least one scholarly source to support your answer. Use the Week 1 Assignment Template, provided