DQ1 Give an example of a personal finance experience you have had which involved the concept of the time value of money. What have you learned?   DQ2 How can a corporation best take advantage of the concept of the time value of money?

DQ1 What is the difference between bank loans and commercial paper? Are there specific situations when companies should resort to using commercial paper?   DQ2 Loftis Manufacturing, Inc., has recently installed a just-in-time (JIT) inventory system. Describe the effect this is likely to have on the company’s carrying costs, shortage costs, and operating cycle.

DQ1 List the three assumptions that lie behind the Modigliani-Miller theory in a world without taxes. Are these assumptions reasonable in the real world? Explain.   DQ2 Is there an easily identifiable debt–equity ratio that will maximize the value of a firm? Why or why not?

DQ1 A financial ratio by itself tells us little about a company since financial ratios vary a great deal across industries. There are two basic methods for analyzing financial ratios for a company: time trend analysis and peer group analysis. Why might each of these analysis methods be useful? What does each tell you about […]

The Week 7 Case Study Assignment is an individual assignment that requires you to analyze a select group of alternative industries to determine which is most likely to perform best over the next 12 months. Factors to consider when comparing the industry groups include how the current and prospective economic conditions over the next year […]

The Week 5 Case Study Assignment is the fourth of a series of analytical tasks, spanning several weeks. Your task involves an analysis of general economic conditions or systematic risk, i.e., the risk that affects all industries and companies, in the U.S. macroeconomy. Your goal is to determine in percentage terms an optimal allocation of […]

The Week 6 Case Study Assignment asks that you consider the agency relationship between a corporate financial manager and the shareholders of the corporation.   As a corporate financial manager, you have the opportunity to manage the company’s cash on behalf of its owners (shareholders).   Consider the case of Apple, Inc, and the company’s […]

The Week 4 Case Study Assignment is the third part of a series of analytical tasks, spanning several weeks. Your task involves an analysis of general economic conditions or systematic risk, i.e., the risk that affects all industries and companies, in the U.S. macroeconomy. Your goal is to determine in percentage terms an optimal allocation […]

The Week 3 Case Study Assignment is the second part of a series of analytical tasks, spanning several weeks. Your task involves an analysis of general economic conditions or systematic risk, i.e., the risk that affects all industries and companies, in the U.S. macroeconomy. Your goal is to determine in percentage terms an optimal allocation […]

The Week 2 Case Study Assignment is the first part of a series of analytical tasks, spanning several weeks. Your task involves an analysis of general economic conditions or systematic risk, i.e., the risk that affects all industries and companies, in the U.S. macroeconomy. Your goal is to determine in percentage terms an optimal allocation […]