2 discussions

User Generated

Mlnvenf_zbz

Business Finance

Description

  • Assignment 1: Discussion Question

    Valuation of a firm’s financial assets is said to be based on what is expected in the future, in terms of the future performance of the firm, the industry, and the economy. What types of value would you consider when assigning “value” to a firm’s stock or bond? What is the significance of each of the different types of value in the valuation process? Use examples to support your response.By the due date assigned, respond to the discussion question. Submit your response to the Discussion Area. Start reviewing and responding to your classmates as early in the module as possible.
    Grading CriteriaMaximum Points
    Quality of initial posting, including fulfillment of assignment instructions16
    Quality of responses to classmates12
    Frequency of responses to classmates4
    Reference to supporting readings and other materials4
    Language and grammar4
    Total:40
  • Assignment 2: Discussion Question

    The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the NPV indicated rejection, but the IRR and Payback methods both indicated acceptance. Explain why this conflicting situation might occur and what conclusions the analyst should accept, indicating the shortcomings and the advantages of each method. Assuming the data is correct, which method will most likely provide the most accurate decisions and why?By the due date assigned, respond to the discussion question. Submit your response to the appropriate Discussion Area. Start reviewing and responding to your classmates as early in the module as possible.
    Grading Criteria
    Maximum Points
    Quality of initial posting, including fulfillment of assignment instructions
    16
    Quality of responses to classmates
    12
    Frequency of responses to classmates
    4
    Reference to supporting readings and other materials
    4
    Language and grammar
    4
    Total:
    40

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Explanation & Answer

see the two assignments attached separately

Running head: FINANCIAL EVALUATION

1

Financial Evaluation
Name
Institutional Affiliation

FINANCIAL EVALUATION

2
Financial Evaluation

Valuing of a Firm’s Financial Assets
This may be defined as the process of determining the actual present value of any
particular asset in a firm. However, there exist valuations on assets such as investment in
marketable securities for instance business enterprises and stock or even intangible assets such as
patents and trademarks. Additionally, this may apply to liabilities such as bonds offered by the
company. It is fundamental for valuation to take place in any particular firm in that it aids in
carrying out the investment analysis, financial reporting, and merger as well as acquisition
transactions, used in determining the proper tax liability and in litigation (Osinski, et.al 2017).
During the process of valuation, the appraiser is bound to consider ...


Anonymous
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