Analyze the roles and responsibilities of financial managers

Reference no: EM131157376

For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial knowledge and analysis skills.

The part of the assessment addresses the following course outcomes:

•Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements

•Differentiate between various financial markets and institutions by comparing and contrasting options when selecting appropriate private and corporate investments

•Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success

•Analyze corporate financial data for multiple companies in evaluating past and future financial performances

Part III Prompt
The results of both sections of your employment examination have finally been received, and you were offered the position. You have a few important decisions to make before you can formally accept or decline the position.

When composing your answers to these decisions, ensure that they are cohesive and read like a short essay.
Your submission must address the following critical elements:

I. School Versus Work

A. The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date, or a combination of both. Provide the appropriate data and calculations that you would perform to make this decision.

You need to figure out how to finance your education. You will need to look up the current market value of Apple Stock and you own 1,000 shares of the stock. Do you want to sell this investment or a part of the investment to help pay for your $100,000 school bill? Why or why not? In addition, you own 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date. Do you want to cash in all or part of these bonds to help finance your education? Why or why not? Please see attached Excel document, on last announcement.

Series EE bonds pay interest semi-annually

B. What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers.

C. Suppose that you choose to sell your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

D. Suppose that you choose to accept the job. What is your financial reasoning behind this choice? Be sure to support your answer with quantitative data.

Things to consider: If you do not want to sell your Apple investment or any part of the investment or any of the bonds, you will not be able to go to school right away and you will probably want to accept the job to earn money to help pay for school. Or, if you decide to finance your education, with your investment money, maybe you don't accept the job, pay and concentrate on your education and get a different job after school.

To make corporate finance decisions, take an advanced finance course, or pursue a career in finance, you will need to understand basic concepts. This includes going beyond the number crunching and reading graphs in order to analyze various financial indicators. This analysis can lead to many important decisions in your financial career.

II. Bonus Versus Stock
A. The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company's stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why?

B. What are the advantages and disadvantages of each option? Be sure to support your answers.

C. What would you ultimately choose to do? What is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

III. Compliance
A. While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder? Be sure to reference any applicable statutes or laws.

B. You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?

Rubric Guidelines for Submission: Please ensure that your decision plan is submitted as one comprehensive and cohesive short essay. It should use double spacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style.

Reference no: EM131157376

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