Explain how you expect this course will help you move forward in your current or future career. The book discusses the Efficient Market Hypothesis (EMH) and its three forms. The EMH has a lot to do with information and stock prices. How does information get into prices? How do we know if prices reflect all available information? What are abnormal returns? What does the EMH […]

Please respond to the following: Evaluate the environmental factors that contribute to corporate management’s need to manage corporate earnings to align with market expectations, indicating the potential long-term risks to financial performance and sustainability. Why are these factors important in evaluating the financial performance of an organization? Please provide one citation or reference for your initial posting that is not your textbook. Please do not […]

1. One of your new employees notes that your debt has a lower cost of capital (5%) than your equity (15%). So, he suggests that the firm swap its capital structure from 30% debt and 70% equity to 70% debt and 30% equity instead. He estimates that after the swap, your cost of equity would be 20%. A.) What would be your new cost of […]

Considering the market risks of interest rate, foreign exchanges, and commodity price risk, assess the risk that you believe may have the most significant impact on a firm. Indicate how this risk can be managed effectively to minimize its effects of this risk. Please provide one citation or reference for your initial posting that is not your textbook. Please do not use Investopedia or Wikipedia. […]

Please respond to the following in a substantive post: How do taxes affect the choice of debt versus equity? Which type of firm is more likely to experience a loss of customers in the event of financial distress? Campbell Soup Company or Allstate Corporation (an insurance company)? Please support your choice with examples   Response Post The decision between debt and equity financing is determined […]

Please respond to the following: But is it important for businesses to have CSR plans? Or should the government be the one to “save our planet.” Explain your opinion. Be sure to respond to at least one of your classmates’ posts in 4 sentences SEPARATELY: I believe that businesses do have an obligation to address environmental damages. The government should also have some responsibility in […]

Write a paper in which you: Describe the background of the industry and its customer base for which you are framing your argument. Prepare a sound argument that explained the major reasons you support the industry or the customer with strong supporting evidence. Justify your beliefs on whether it is possible for a company to simultaneously cater to both its best interest and that of […]

Some economists and bankers believe that derivatives make the market safer. Agree or disagree with this statement, providing support for your position. Please provide one citation or reference for your initial posting that is not your textbook. Please do not use Investopedia or Wikipedia. Be sure to respond to at least one of your classmates’ posts. Post a summary of your activity for the week […]

The present value of JECK Co.’s expected free cash flows is $100 million. If JECK has $30 million in debt, $6 million in cash, and 2 million shares outstanding, what is its share price? 2. River Enterprises has $500 million in debt and 20 million shares of equity outstanding. Its excess cash reserves are $15 million. They are expected to generate $200 million in free […]

(Assignment 3 405) 1. You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in two years. If your cost of capital is 9%, what is the NPV of this investment? You have $70,000. You put 20% of your money in a stock with an expected return of 12%, $30,000 in a stock with an expected return of […]