Kimberly McCullough

Kimberly McCullough Colorado Christian UniversityCollege of Adult and Graduate StudiesBUS-301A, Business FinanceProfessor MurphyApril 18, 2018 Analyzing Your monetary RatiosIn Chapter Case Question 1. I get out provide, the current ratio measures a participations ability to pay short-term obligations. The quick ratio of SS, which is an indicator of a companys short-term liquidity. be sure to show your work in shrewd the ratios including the ratios of the company. (In Chapter 3, page 8, Finkler, S. 2017). When it comes to their financial planning at S & S Air, Inc their financial manager will be able to understand.In Chapter Case 1, with S&S Air, Inc. with this business working capital management they must work with certain banks about their contribution to their goals and their success in their business. S&S Air, Inc.2016 Income Statement S&S Air. Inc.2016 Balance Sheet Light Airplane Industry Ratios Capital Budgeting The case study presents two corporations (A and B) with differe nt revenue values and expenses as well as variable depreciation expenses, tax yards and discount rates.When it comes to my mom and dads business applying suitable expenditure controls to ensure that investments outlays conform with. When it comes to capital budgeting my p atomic number 18nts business they are determining the viability to long-term investments on barter for or replacement of property. (Dlabay, L. 2008, Chapter 3, pg.12-13)Ratios and Financial Planning at S&S Air, Inc.Calculations Chapter Case Conch Republic ElectronicsConch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Conc, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. everywhere the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Before launching a unused series, the company need to go through the following steps as to ensure a smooth production of this bleak series. 1.1 10 Steps Before Launching New ProductsAs a business grows the question of the introducing vernal products/services arises. Launching new products/services means taking risks and managing change. Growth and change must be managed at the kindred time as on-going business operations. Maintaining momentum is challenging for small businesses with limited re founts. (Mayo, H. 2017).QuestionsWhat is the payback period of the run into?What is the profitability index of the project?What is the IRR of the project?What is the NPV of the project?All the cases are Excel-based?First, The Cost of Research & Development Second, for them to calculate networking capital for the next first two years their new irreverent phone company their smartphones sets generate erosion cost (negative side effect) to the existing smart phone. The loss from the total revenue of existing smart phone.The net incremental rev enue of new smart phone is equal to the total revenue of new smart phone minus the total revenue loss from the existing smart phone.The receipts Loss of Existing Smart Phone Comes from dickens Parts.Part one the sales units will be reduced, and the original price revenue on these sales unites will be gone (the sales units of the existing smart phone will fall by 30,000 units per year, and the price of the existing smart phone is $380 per unit).Part Two In Conch Republic Electronics finding of the sensitivity of change in quantity of the remaining units will be sold at a lower price (the price of the existing units will have to be lowered to $ 210 each), and the price difference is a source of revenue. Take First Year for Example The counting of net incremental revenue of the second year is like the first year. outset from the third year, there is no revenue loss of existing smart phone attributed by the new smart phone, because the production of the existing smart phone is termin ated. The incremental revenue is just the revenue of new smart phone. (Brigham, E. 2016, Chapter 5 pg. 9-10)Third, when it comes to In Conch Republic Electronics cost they had to take their profitability and their credit worthiness.As a smartphone company they know that knowing the cost of capital it can move over better decisions on its future investments and other such financing options. (Midgley, K. & Burns, R. 1997) The calculation of net variable cost of the second year is like the first year. Starting from the third year, there is no variable cost decrease of new smart phone. The net variable cost is just the variable cost of new smart phone.Four, when it comes to Conch Republic Electronics company they have to consider regarding asset acquisitions in other investments brought. Because it is a smartphone company calculating the fixed cost is just new smart phones fixed cost.Chapter Case Stephenson satisfying Estate Recapitalization In this report I will be discussing the wor k in an AJD real estate mightiness from different aspects Market surveying, the standard operating procedures that be followed in the market, suggestions to improve the work of AJD office. (Huber, W. 2009, Chapter 5, pg. 10-12)1.2 DefinitionsReal estate is Property consisting of land and the buildings on it, along with its earthy resources such as crops, minerals, or water immovable property of this nature an interest vested in this (also) an item of real property (more generally) buildings or housing in general.Also the business of real estate the profession of buying, selling, or renting land, buildings or housing. It is a legal term used in most of the white-tie deals in this field. (Davis, M. 2012, Chapter 5, pg. 2-10)Stephenson Real Estate RecapitalizationIn order for Stephensons Real Estate recapitalization they have to effectively recapitalizing the companies by increasing the proportion of debt in the capital structure. Since Stephenson is an all-equity hearty with 15 mi llion shares of common stock outstanding, worth $35.20 per share, the market value of the firm is $528 million (= 15 million shares * $35.20 per share).Stephensons market-value balance sheet before the proclamation of the land purchase isBecause of the purchase, the firms pre-tax earnings will increase by $27 million per year in perpetuity. These earnings are taxed at a rate of 40%. Therefore, after taxes, the purchase increases the annual expected earnings of the firm by $16.2 million ($27 million) (1 0.40). (Peiser, R. & Hamilton, D. 2012) Therefore, the net present value of the land purchase is $19.6 million.After the announcement, the value of Stephenson will increase by $19.6 million, the net present value of the purchase. Under the efficient-market hypothesis, the market value of the firms equity will immediately rise to bound the NPV of the project.Therefore, the market value of Stephensons equity will be $547.6 million (= $528 million + $19.6 million) after the firms anno uncement.Assessments and Measures Direct Versus Indirect Measures of AssessmentThe difference between direct and indirect measures of bookman learning has taken on new importance as accrediting agencies such as WASC have required the use of direct measures to be the primary source of evidence. Indirect measures may serve only as supporting evidence. (Linneman, P. 2010)Embedded and Add-On AssessmentEmbedded judgements are tasks that are integrated into specific courses. They usually involve classroom assessment techniques but are designed to collect specific information on program learning outcomes. (Claus, F. 2009)ConclusionWhat I have learned? This subject gave me an overview of key merchandising concepts and techniques as they apply in a variety of organizations and in both conventional and online environments.Also, this subject helped me to develop my knowledge and understanding of the core role of selling in determining the growth potential.ReferencesRoss, S., Westerfield, R., & Jordan, B. (2017). Essentials of Corporate Finance (9th ed.).Dlabay, Les (2008) Business Finance (1st Editio)Finkler, Steven (2017) Finance & Accounting for Nonfinancial Managers (5th Edition) Book Softcover Mayo, B. Herbert (2017)Basic Finance An Introduction to Financial Institutions, Investments, and Management Brigham, F. Eugene (2016) Fundamentals of Financial Management (14th ed.)Publisher Cengage Learning Huber, Wait (2009) Real Estate Finance (7th edition) Davis, Maria (2009) Accounting for Real Estate transactionsA Guide for Public Accountants and Corporate Financial Professionals 2nd Edition Peiser,Richard & Hamilton,David (2012) Professional Real Estate DevelopmentThe ULI Guide to the Business Linneman,Peter (2010) Real Estate Finance & Investments Risks and Opportunities Clauss,J. Frances (2009) Corporate Financial Analysis with Microsoft Excel Midgley,Kevin & Burns, G. Ronald (1979) Business Finance and the Capital Marketn.