Current position of the organisation: Provide an outline of goals and the philosophy of the organisation. Present the current target market and performance of the organisation.
2. Analysis of the business environment: Effectively assess the Micro-Environment, Market / Task environment and Macro-Environment of your organisation.
3. Roles and skills of managers: To discuss the overlapping roles of managers and the skills required of them in order to take the organisation. The management style of the management team and its relevance to the achievement of the organisational goals.   
4. Human Resources: An assessment of the organisations human resources in terms of skills, motivation and retention.   
5. Change Management: Ways in which management can react to the changing business environment. Discuss the inter-related approaches which the organisation can adopt in reacting to the environment.   
6. Organisation Design: The fundamental principles underlying organisation design should be discussed. Evaluate the organisational structure of the organisation and its suitability for the growth and expansion of the organisation
7. Recommendations: Present possible recommendations and critical success factors that the organisation should implement to achieve the desired goals.   

The following table tracks the main components of working capital over the life of a four-year project.

Calculate net working capital and the cash inflows and outflows due to investment in working capital. (Negative answers should be indicated by a minus sign.)

brief IRAC of case 40.1 Oliveira v. Sugarman

A bank has issued a six-month, $2.9 million negotiable CD with a 0.45 percent quoted annual interest rate (i_{CD, sp}).

a. Calculate the bond equivalent yield and the EAR on the CD.
b. How much will the negotiable CD holder receive at maturity?
c. Immediately after the CD is issued, the secondary market price on the $3 million CD falls to $2,899,000. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2.9 million face value CD.

Calculate the bond equivalent yield and the EAR on the CD. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

How much will the negotiable CD holder receive at maturity? (Do not round intermediate calculations. Round your answer to nearest whole number. (e.g., 32))

Immediately after the CD is issued, the secondary market price on the $3 million CD falls to $2,899,000. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2.9 million face value CD. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 4 decimal places. (e.g., 32.1616))

Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a firm’s observable market value, stock prices, and book values, integrating information from both the market and the firm’s financial statements.

Consider the case of Cute Camel Woodcraft Company:

Cute Camel Woodcraft Company just reported earnings after tax (also called net income) of $9,000,000 and a current stock price of $20.25 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it also expects it will have to issue 2,500,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,000,000).

If Cute Camel’s forecast turns out to be correct and its price/earnings (P/E) ratio does not change, what does the company’s management expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.)

$17.41 per share

$20.25 per share

$13.06 per share

$21.76 per share

One year later, Cute Camel’s shares are trading at $49.60 per share, and the company reports the value of its total common equity as $27,856,000. Given this information, Cute Camel’s market-to-book (M/B) ratio is   .

Can a company’s shares exhibit a negative P/E ratio?

Yes

No

Which of the following statements is true about market value ratios?

Low P/E ratios could mean that the company has a great deal of uncertainty in its future earnings.

High P/E ratios could mean that the company has a great deal of uncertainty in its future earnings.

Of the four popular investment appraisal technique, recommend either one or two techniques that shall remain most useful when examining the current expectations of shareholders particularly when reviewing ROI impact surrounding capital investments? Is it really essential to consider economic factors and business conditions apart from following changes in social, environmental and political uncertainties, apart fromfactoring ‘time value of money’ considerations’, when estimating FV of ‘cash flows’, analyze ‘opportunity costs’ and the ‘eventual financial health of the organization’ to support a risk free judgement for backing capital investment decision-making?.

Let’s say if we are ignore these factors….would organizational leaders run the risk of bankruptcy or worse still a financial irreversible calamity?...

Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $3,200,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann’s annualized IRR from mortgage A

AFN equation

Broussard Skateboard's sales are expected to increase by 15% from $7.0 million in 2016 to $8.05 million in 2017. Its assets totaled $4 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%.

1. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.
$

2. Assume that an otherwise identical firm had $5 million in total assets at the end of 2016. The identical firm's capital intensity ratio (A₀*/S₀) is

-Select- 1. higher than    2. lower than 3.equal to

than Broussard's; therefore,

3. the identical firm is

-Select- 1.less    2. more 3. the same capital intensive -

4. it would require

-Select- 1. a smaller    2. a larger 3. the same increase in total assets to support the increase in sales.

Can companies act ethically or is there a need for greater governance beyond internal committees. Or do we require a higher level form of governance. Can social application companies govern themselves or does this require the government to intervene?

Dickinson Brothers, Inc., is considering investing in a machine to produce computer keyboards. The price of the machine will be $1,700,000, and its economic life is five years. The machine will be fully depreciated by the straight-line method. The machine will produce 27,000 keyboards each year. The price of each keyboard will be $59 in the first year and will increase by 4 percent per year. The production cost per keyboard will be $26 in the first year and will increase by 5 percent per year. The project will have an annual fixed cost of $285,000 and require an immediate investment of $250,000 in net working capital. The corporate tax rate for the company is 25 percent. The appropriate discount rate is 9 percent. What is the NPV of the investment?

Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next:

a. What is the expected value of unit sales for the new product?

b. What is the standard deviation of unit sales?

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.)

$200 balance, 18%, $50 payment

(a) previous balance method

(b) adjusted balance method

(c) average daily balance method

Decision #1:   Which set of Cash Flows is worth more now?

Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive:

Option A: Receive a one-time gift of $ 10,000 today.   

Option B: Receive a $1500 gift each year for the next 10 years. The first $1500 would be

     received 1 year from today.             

Option C: Receive a one-time gift of $18,000 10 years from today.

Compute the Present Value of each of these options if you expect the interest rate to be 3% annually for the next 10 years.    Which of these options does financial theory suggest you should choose?

       Option A would be worth $_________ today.

       Option B would be worth $________ today.

       Option C would be worth $__________ today.

       Financial theory supports choosing Option _______

Compute the Present Value of each of these options if you expect the interest rate to be 6% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

       Option A would be worth $__________ today.

       Option B would be worth $__________ today.

       Option C would be worth $__________ today.

     Financial theory supports choosing Option _______

Compute the Present Value of each of these options if you expect to be able to earn 9% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

       Option A would be worth $__________ today.

       Option B would be worth $__________ today.

       Option C would be worth $__________ today.

       Financial theory supports choosing Option _______

Decision #2 begins at the top of page 2!

Decision #2: Planning for Retirement

Erich and Mallory are 22, newly married, and ready to embark on the journey of life.   They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start investing $3000 per year to prepare for retirement.   Mallory just told Erich, though, that she had heard that they would actually have more money the day they retire if they put $3000 per year away for the next 10 years - and then simply let that money sit for the next 35 years without any additional payments – then they would have MORE when they retired than if they waited 10 years to start investing for retirement and then made yearly payments for 35 years (as they originally planned to do).   Please help Erich and Mallory make an informed decision:   

Assume that all payments are made at the END a year (or month), and that the rate of return on all yearly investments will be 7.2% annually.  

(Please do NOT ROUND when entering “Rates” for any of the questions below)

1. How much money will Erich and Mallory have in 45 years if they do nothing for the next 10 years, then put $3000 per year away for the remaining 35 years?

2. How much money will Erich and Mallory have in 10 years if they put $3000 per year away for the next 10 years?

b2) How much will the amount you just computed grow to if it remains invested for the remaining

35 years, but without any additional yearly deposits being made?

3. How much money will Erich and Mallory have in 45 years if they put $3000 per year away for each of the next 45 years?

How much money will Erich and Mallory have in 45 years if they put away $250

4. per MONTH at the end of each month for the next 45 years? (Remember to adjust 7.2% annual rate to a Rate per month!)

5. If Erich and Mallory wait 25 years (after the kids are raised!) before they put anything away for retirement, how much will they have to put away at the end of each year for 20 years in order to have $1,000,000 saved up on the first day of their retirement 45 years from today?

Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).

A car with a sticker price of $42,850 with factory and dealer rebates of $5,100

(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)

(b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)

(c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)

(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.