Financial Statement Analysis and Firm Performance

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Gevcyr0mreb

Business Finance

Description

About Your Signature Assignment

Signature/Benchmark Assignments are 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. Signature/Benchmark Assignments are graded with a grading guide or an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for course/program improvements.

Purpose of Assignment

The purpose of this assignment is to allow students the opportunity to present a business idea supported by strong financial information. The student will be able to identify the possible challenges of doing business in a foreign country and how to approach them.

Assignment Steps

Resources: Microsoft® PowerPoint®, Signature Assignment: Financial Statement Analysis and Firm Performance Template

Prepare a 16- to 20- slide Microsoft® PowerPoint® presentation showing the details of a business you are interested in starting in a foreign country, and for which you need $300,000. The presentation should include the following information:

  • Business name
  • Executive summary
  • Description of the foreign country
  • Business description and structure
  • Market and company analysis
  • Marketing and sales operational plan
  • How you plan to use the $300,000
  • Financial statements forecast (3 years)
  • Business health assessment - using the following ratios:
    • Liquidity ratios
    • Solvency ratios
    • Asset management ratios
    • Profitability ratios
    • Market value ratios

Analyze and calculate the following scenarios in 525 words, including which one would you choose and why, and which financing option is best for your busines:

  • Investor #1 decided to loan you the $300,000, paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years.
  • Investor #2 offers you the $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year.

Discuss in 525 words the challenges and risks you may face in starting a business in a foreign country including the following:

  • Cultural, business, and political risks.
  • How you plan to avoid operational, transaction, and translation exposure.

Format your assignment consistent with APA guidelines.

Unformatted Attachment Preview

Signature Assignment: Financial Statement Analysis and Firm Performance Grading Guide FIN/419 Version 6 Finance for Decision Making Copyright Copyright © 2017, 2016, 2015, 2010 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. Signature Assignment: Financial Statement Analysis and Firm Performance Grading Guide FIN/419 Version 6 Individual Assignment: Signature Assignment: Financial Statement Analysis and Firm Performance Purpose of Assignment The purpose of this assignment is to allow students the opportunity to present a business idea supported by strong financial information. The student will be able to identify the possible challenges of doing business in a foreign country and how to approach them. Resources Required Microsoft® PowerPoint® Grading Guide Content The student prepared a 16- to 20- slide Microsoft® PowerPoint® presentation showing the details of a business they are interested in starting in a foreign country, and for which they need $300,000. The presentation included the following: • • • • • • • • • Business name Executive summary Description of the foreign country Business description and structure Market and company analysis Marketing and sales operational plan How you plan to use the $ 300,000. Financial statements forecast (3 years) Business health assessment - using the following ratios: o Liquidity ratios o Solvency ratios o Asset management ratios o Profitability ratios o Market value ratios The student analyzed the following scenarios in 525 words, which one they would choose and why. The student calculated the following scenarios and decided which financing option is best for their business: • Investor #1 decided to loan $300,000, Met Partially Met Not Met Comments: 2 Signature Assignment: Financial Statement Analysis and Firm Performance Grading Guide FIN/419 Version 6 Content Met Partially Met Not Met Total Available Total Earned 5 #/5 Partially Met Not Met Comments: paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years. • Investor #2 offers $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year. The student discussed in 525 words the challenges and risks they may face in starting a business in a foreign country including the following: • Cultural, business, and political risks. • How they plan to avoid operational, transaction, and translation exposure. Presentation Guidelines Organization The tone is appropriate to the content and assignment. The introduction provides a sufficient background on the topic and previews major points. Major points are stated clearly; are supported by specific details, examples, or analysis; and are organized logically. Paragraph transitions are present, logical, and maintain the flow throughout the paper. The conclusion is logical, flows from the body of the paper, and reviews the major points. Mechanics The presentation is laid out with effective use of headings, font styles, font sizes, and white space. Met Comments: 3 Signature Assignment: Financial Statement Analysis and Firm Performance Grading Guide FIN/419 Version 6 Presentation Guidelines Met Partially Met Not Met 3 #/3 8 #/8 Intellectual property is recognized with in-text citations and a reference slide. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments: 4 Pay all of the interest (8% per year) and principal in one lump sum at the end of 5 years Amount Period (years) Interes rate $ 300.000 5 8% FV= PV × (1 + r)n Answer- Total Payment Interest Paid Refer to the Solved Example 6 on Page 84 of your text. Pay interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5 Amount Period (years) Interes rate $ 300.000 5 8% Answer Annual Interest PaymentYear 5 Payment Total PaymentInterest Paid- Refer to the Solved Example 6 on Page 84 of your text. Scenario #1 Scenario #2 Total Payment $ $ - Interest paid $ $ - Which of the scenarios is the best option? Answer: Refer to the Solved Example 6 on Page 84 of your text.
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