FIN 571 Week 6 Assignment start-up company Signature Assignment (score 80%) Updated

About Your Signature Assignment: This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments may be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.  

Purpose of Assignment: The purpose of this assignment is to allow the student an opportunity to apply their understanding of cash flow management, break-even analysis, and short-term and long-term financing in starting and growing a business. The assignment will be presented to the class giving the real world scenario of presenting a proposal to investors. Resources: OECD Database, Corporate Finance

Prepare a 15-slide PowerPoint^® content presentation with speaker notes requesting initial funding of $500,000 to start and run a start-up company. The proposed start-up company could be an existing business model (coffee shop, pet store, etc.) or could be something entirely new and exciting. 

Create the presentation in the following format, with at least one slide to cover each of the following areas: 

1.      Title Page

2.      Table of Contents

3.      Executive Summary

4.      Information about the Industry

5.      Marketing Plan

6.      Competitor Analysis

7.      3 Year Income Statement (Profit & Loss) Projections

8.      Include your assumptions for why and how you will achieve your sales growth and what significant expenses and investments you expect to incur to achieve your revenue goals. Assumptions: Sales Growth, Significant Expenses and Investments

9.      3 Year Proposed Funding Schedule (Sources and uses of the funds received.)

10.  Break-Even Analysis

Review the following scenarios and assumption, and explain how it impacts your decision to expand: Each should have its own slide just as above;

11.  After Year 3, the investors are interested in your company expanding internationally to possibly outsource labor or to reduce manufacturing costs. What countries would you expand to first, and why? What factors would you need to consider in making this decision? Global Expansion: Labor/Mfg. Costs. Country?

12.  What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally? (Use OECD Database or another resource to determine the corporate tax rate).
13.  The investors want to see a decision tree detailing the decisions you would make if you received $300K now and $200K at the end of three years instead of $500K up front.
14.  The investors would like your team to provide advantages and disadvantages of using debt financing versus selling company stock to raise capital for growth.
15.  Briefly explain the venture capital process. Does it make sense for your company to raise funds through venture capital?
16.  Academic and Business References
17.  Feedback

Format your presentation consistent with APA guidelines. You must present this assignment in class to earn full credit.  Students who do not present will have a 50% reduction in grade.  

Click the Assignment Files tab to submit your assignment

FIN 571 Week 5 Assignment Effect of Debt Issuance on Stock Valuation Updated

Purpose of Assignment

The purpose of this assignment is to demonstrate to students how the issuance of debt to purchase outstanding common stock could affect the value of the company’s equity and redefine the capital structure. The problem will also allow students to explore the effect of corporate taxes through debt financing.

Assignment Steps

Resources:Corporate Finance

Scenario: Hightower, Inc. plans to announce it will issue $2.0 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 5%. Hightower, Inc. is currently an all-equity company worth $7.5 million with 400,000 shares of common stock outstanding. After the sale of the bonds, the company will maintain the new capital structure indefinitely. The company currently generates annual pretax earnings of $1.5 million. This level of earnings is expected to remain constant in perpetuity. The tax rate is 35%. 

Prepare a 1,050-word memo advising the management of Hightower, Inc. on the financial impact, including the following:

·         What is the expected return on the company’s equity before the announcement of the debt issue?

·         Construct the company’s market value balance sheet before the announcement of the debt issue. What is the price per share of the firm’s equity?

·         Construct the company’s market value balance sheet immediately after the announcement of the debt issue.

·         What is the company’s stock price per share immediately after the repurchase announcement?

·         How many shares will the company repurchase as a result of the debt issue? How many shares of common stock will remain after the repurchase?

·         What is the required return on the company’s equity after the restructuring?

Discuss the advantages and disadvantages of debt financing over equity financing.

FIN 571 Week 4 Connect Problems Updated

Q-1
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 20 years to maturity, and a coupon rate of 7 percent paid annually.

13. Titan Mining Corporation has 8.9 million shares of common stock outstanding and 330,000 5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $37 per share and has a beta of 1.45, and the bonds have 15 years to maturity and sell for 118 percent of par. The market risk premium is 7.7 percent, T-bills are yielding 4 percent, and the company’s tax rate is 40 percent.

FIN 571 Week 3 Researching Industry Financial Statistics Updated

Purpose of Assignment

The purpose of this assignment is to allow the students an opportunity to complete their financial evaluation of a company using the financial research database Plunkett Research Online. Plunkett Research Online provides in-depth analysis of a company’s financials, comparisons to industry averages, a list of top executives, how the company compares to other competitors in terms of revenue, number of employees, market capitalization and other key financial metrics. 

Assignment Steps 

Resources: Plunket Research Online located in the Week 3 Electronic Reserve Readings; Microsoft^® Excel^®

Access the the Plunkett Research database in the University Library by following these steps:

1. Click on the University Library link.
2. Click “Company Directories and Financials” under Library Resources.
3. Click “Plunkett Research Online” under Company Directory and Financials.
4. Review the following “HOW TO USE” videos:
   • Plunkett Research Online Overview
   • How to Export Company and Exec. Lists
   • How to Build-a-Report
   • How to Use Industry Analytics
   • How to Research an Industry
   • How to Use Company Profiles
5. Click “Research A Company.”
6. Select a company (i.e. Walmart) and input into the Search Box.
7. Scroll through the search results to choose the correct company.
8. Click the link to the company profile (in blue). 

Review the Company Profile and answer the following questions in Microsoft^® Word: 

• What is the Ticker Symbol for the company you have selected?
• When was the company established?
• How many employees does it have?
• What is the NAICS Code?
• Who is the CEO?
• Where does the company rank in terms of Total Revenue when compared to its competitors?
• Where does the company rank in terms of Net Income when compared to its competitors?
• Where does the company rank in terms of Return on Assets when compared to its competitors?
• What is the Revenue in 2014 and 2015?
• What was the Gross Margin in 2014 and 2015?
• What was the Earnings per Share in 2014 and 2015? 

Save the Company Profile as a PDF document. 

Compare the 2015 Company Financials to the Industry Averages and export the results into a Microsoft^® Excel^® document. 

Add a new column in your Microsoft^® Excel^® document titled “Change” and calculate the difference between the company’s 2015 financial results and the industry averages. 

Explain in 1,050 words how the company you selected compares to the industry averages in terms of financial profitability, liquidity and solvency, and why the difference is important. Also review the financial statements over the last three years, and discuss any positive and negative trends would you report to the company’s management. 

Submit the calculations as well as the explanation. 

Click the Assignment Files tab to submit your assignment. 

Note: Grades are awarded based upon individual contributions to the Learning Team assignment. Each Learning Team member receives a grade based upon his/her contributions to the team assignment. Not all students may receive the same grade for the team assignment

FIN 571 Week 2 Stock Valuation and Analysis Updated

Purpose of Assignment

The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. 

Assignment Steps 

Resources: Yahoo Finance 

Select a Fortune 500 Company from one of the following industries:

• Pharmaceutical
• Energy
• Retail
• Automotive
• Computer Hardware
• Manufacturing
• Mining

Access Yahoo Finance and enter the company name. 

Review the financial information and statistics provided for the stock you selected and answer the following:

• What is the ticker symbol of the company you chose?
• What is the Current Stock Price?
• What is the Market Cap for the stock you chose?
• What is the Price to Earnings Ratio?
• What is the Dividend and Yield?
• What is the Enterprise Value?
• What is the Beta?
• Was there a Stock Split, and if so, when?
• What was the closing stock price for the last 5 days?
• What was the 52 Week High for this stock?
• What is the Book Value per Share?
• What type of rating are analysts recommending (i.e. buy, hold, etc.)?
• What is the target price analysts are predicting for this stock?
• What is the analyst’s average revenue estimate for next year?
• What are some of the significant news items and press releases made by the company over the last year? 

Explain in 700 words why you would or would not recommend investing in this stock.

• Describe the relationship between the value of the stock and the price to earnings ratio. 
• What information does the Market Capitalization (Market Cap) and Beta provide to the investor? 

Click the Assignment Files tab to submit your assignment.