Hello,please write a 2-3 paragraph opinion piece on the two questions below. Please cite references1. A survey by Fitch Ratings found that capital market participants felt that Credit Default Swaps, a form of derivative contract that pays off if the named underlier defaults on its debt obligations, are both more important as indicators of counterparty risk and a more important tool for managing counterparty risk than are other means, such as stock prices or credit ratings. Please comment and discuss. For example, what advantages or disadvantages of market-based indicators for making investment (bonds, loans, stock) decisions?2. Over the past 10-15 years or so, we've seen a rapid consolidation of banks with some of the largest institutions acquiring smaller local and regional banks. We’ve also seen some significantly larger banks (e.g. Countrywide, Wachovia, and National City) acquired as well. At the same time, we've seen a lot of new, smaller "small business and retail depositor friendly" banks being created. What has driven this and what does it portend for banking?3.Financial regulators have long claimed that MetLife is a systemically important financial institution, according to the Dodd-Frank financial reform law. The company disagrees with the designation, but in anticipation of greater capital requirements from regulators, in January 2016, it announced it is moving to ease the burden by divesting much of its U.S.-based life-insurance unit. The company said that doing so would allow it to compete more effectively and generate stronger returns. What are the ramifications for MetLife and other large insurance companies? What do you think about the impact that Dodd Frank has had so far on large financial institutions?4.In some countries the central bank is mandated to use monetary policy to keep inflation to a reasonable, targeted range (say, between, 1% and 2.5%). In other countries the central bank is charged with maintaining growth and stability in the economy with a wider range of objectives – encourage economic growth, maintain low inflation, keep unemployment levels low, stabilize the value of the currency, etc. Comment on the relative virtues and problems of addressing a single (inflation) objective or multiple (growth, inflation, employment, currency value) objectives.

COURSE PROJECT/CHECKPOINT ASSIGNMENTEach student will be assigned a company ( Nike )for which they will conduct a financial analysis. Included in the analysis will be the following items:Background Information/Environmental ScanDuPont IdentityCurrent RatioQuick RatioInventory Holding PeriodAverage Collection PeriodDebt RatioFree Cash FlowMarket Value Added Economic Value AddedDividend YieldRequired Rate of Return based on the Capital Asset Pricing ModelAfter calculating the above items, the student will make a recommendation to buy, sell, or hold the company’s common stock at its current price. The recommendation should be based on the calculations required plus any other information about the company that the student believes pertinent.In a separate section of the paper, the student will describe a situation in which his/her company would make use of capital budgeting. No calculations are required. This section of the paper would be about one to two pages describing the process that the company would make use of for analyzing the capital budgeting situation.In a third section of the paper, the student should describe how the company would use cost-volume-profit analysis for one of its products. No calculations are necessary; just provide an explanation of how the process works. This section of the paper should be one to two pages.Grading for the analysis will be based on the following:Environmental Scan/Background 20 pointsRatio Calculations 15 pointsFree Cash Flow Calculations 8 pointsMarket Value Added? Economic Value Added 7 pointsCapital Budgeting Discussion 15 pointsCost-Volume-Profit Analysis Discussion 15 pointsConclusions 10 pointsQuality of Writing and Sources 10 pointsExtra credit is not applicable or available in this course.Rubric for Company AnalysisBUS 311, Financial Management Critical AssignmentThe critical assignment for BUS 311, Financial Management is one of a series of assignments designed to demonstrate that students have achieved the learning outcomes established for the majors in the College of Business and Management.The specific objective of this critical assignment is to assure that students have a sufficient level of accounting and finance skills to conduct financial analyses of an organization. These exercises will provide students with the opportunity to integrate and implement theory to practice and will prepare students to develop a comprehensive business plan in the capstone course during the final year of study.For the purpose of this exercise, students will choose a company for which they will conduct an environmental scan and a financial analysis. The analysis of the company should culminate with students recommending that the company is “excellent,” “healthy,” or “ill.” Students will be evaluated based on correctness of the calculations, the insight of the analysis, and the quality of the discussion relating to the requirements.Before performing the financial analysis, students will prepare an environmental scan, which will discuss the various forces with which an organization must contend to assure that its business model has a chance for success. The specific calculations should include:DuPont IdentityCurrent RatioQuick RatioInventory Holding PeriodAverage Collection PeriodDebt RatioDividend YieldRequired Rate of Return based on the Capital Asset Pricing ModelFree Cash FlowMarket Value Added Economic Value AddedAdditionally, students will be expected to prepare an executive summary of the process of capital budgeting, using an example that is specific to the company that is being analyzed. An executive summary of cost-volume-profit analysis is also required, using an example that is specific to the company that is being analyzed.The written paper is to be typed double–spaced, 1’ margins, Times New Roman and 12-point font, with correct spelling and grammar, proper citation, references, with a cover page and organized with headings. The instructor’s approval of the topic is required.The following Library resources and websites could assist students in conducting the research to do the Critical Assignment:Lynn Library Sources:Business majors can also avail themselves of all Lynn University Library databases(Links to an external site.) and the business specific databases (Links to an external site.) such as: ABI/Inform, Business Insights: Essentials, Passport by Euromonitor, and Statista.Directions to access: Go to Lynn University Website: www.lynn.edu (Links to an external site.)Click the Libraries Tab Click DatabasesClick on the « All Subject » dropdown= Business http://lynnlibrary.libguides.com/az.php?s=43296 (Links to an external site.)Websites:www.zacks.com (Links to an external site.)www.bloomberg.com/markets/rates/index.html (Links to an external site.)www.moodys.com (Links to an external site.)www.bondsonline.com (Links to an external site.)www.federalreserve.gov (Links to an external site.)www.morningstar.com (Links to an external site.)http://finance.yahoo.com/ (Links to an external site.)http://www.gurufocus.com/ (Links to an external site.)https://www.google.com/finance (Links to an external site.)Student Learning Outcomes:Students will be able to:Conduct an environmental scan, indicating future prospects for a company. (SLO 3.3, SLO 7.4, SLO 12.3) (20% of grade for project)Calculate and interpret financial ratios to ascertain the overall health of a company. (SLO 1.2, SLO 6.1, SLO 13.4) (15% of grade for project)Determine and explain free cash flow to assess the cash position for a company. (SLO 6.2, SLO 10.4, SLO 13.4) (8% of grade for project)Determine and explain the market value added and economic value added to ascertain whether a company is creating or destroying value. (SLO 6.2, SLO 13.4) (7% of grade for project)Specifically describe the capital budgeting process, in particular the net present value method in order to demonstrate the importance of the timing and risks associated with cash flows. (SLO 6.3, SLO 6.5, SLO 10.4, SLO 13.3, SLO 13.4) (15% of grade for project)Specifically describe cost-volume-profit analysis for the company to assure the understanding of the elements of operating income. (SLO 1.5, SLO 11.6, SLO 13.3, SLO 13.4) (15% of grade for project)Make a recommendation that the company’s financial condition is: “excellent”, “healthy”, or “ill”. (SLO 13.3, SLO 13.4) (10% of grade for project)Demonstrate proficient writing skills (SLO 13.6) (10% of grade for project)5 days ago