Managerial Finance

Anonymous
timer Asked: May 1st, 2016

Question description

Managing Earnings**** Please provide original answers with references and each question numbered. Please provide originality report !!!!




1.   Examine the role of management as it relates to finance in a corporation.  In your post, discuss the role of management by addressing the following prompts:

  • Explain the various aspects of finance that management must understand. 
  • Describe why a manager needs to understand the characteristics and importance of financial markets including their liquidity, competitiveness, and efficiency.
  • Interpret the function of the Financial Balance Sheet in assisting in management’s decision making process.
  • Discuss what could happen if management does not fulfill responsibilities related to finance.  Share a real world example from your own professional experience or from an external source.

Your post should be 200-250 words in length.


2. After reading the first two chapters of your textbook, evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits. In your post, explain what is meant by this statement. Describe how management might decide whether to focus on short term or long term goals and how that decision impacts the organization. Next, using the financial balance sheet as displayed in the text, compute an example of how focusing on short term profits can be detrimental to long term profits. Share your opinion regarding whether you feel it’s a better option to focus on short term or long term goals. Use evidence from the text or external sources to support your position.  200-250 words in length



3. After reading Chapters 3 and 4 of your textbook, address each of the following questions:
  • Think of something you want or need for which you currently do not have the funds. It could be a vehicle, boat, horse, jewelry, property, vacation, college fund, retirement money, etc. Select something which costs somewhere between $2,000 and $50,000.  Use the “Present Value Formula”, which computes how much money you need to start with now to achieve the desired monetary goal. Assume you will find an investment that promises somewhere between 5% and 10% interest on your money (you choose the rate) and pretend you want to purchase your desired item in 12 years. (Remember that the higher the return, usually the riskier the investment, so think carefully before deciding on the interest rate.) How much do you need to invest today to reach that desired amount 12 years from now?
  • You wish to leave an endowment for your heirs that goes into effect 50 years from today. You don’t want to be forgotten after you pass so you wish to leave an endowment that will pay for a grand soirée yearly and forever. What amount would you like spent yearly to fund this grand party? How much money do you have to leave to your heirs 50 years from now assuming that will compound at 6% interest? Assuming that you have not invested anything today, how much would you have to invest yearly to fully fund the annuity in 50 years, again assuming a 6% monthly compounding rate? 200-250 words in length


4. Companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage earnings targets.  Reflect on these practices and discuss the following in your discussion post.
  • Are these practices ethical?
  • What are two tactics that a financial manager can use to manage earnings?
  • What are the implications for cash flow and shareholder wealth?
  • Using the financial balance sheet as displayed in the text, provide an example of how purchasing an asset or issuing stocks or bonds could potentially impact earnings targets.

Your post should be 200-250 words in length.


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