Assess the economic climate of the economy

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Reference no: EM133227699 , Length: Word Count: 700 Words

Short-Term Financial Management Assignment -

Overview - For this second milestone, which is due in Module Five, you will examine current interest rates and rates of inflation, and evaluate the impact of these rates on short-term decisions that must be made for the two firms you are researching for your final project. You will also examine ethical considerations that impact the industry as a result of the Sarbanes-Oxley Act of 2002, including to what extent this act has impacted the core cash flow management of the companies you are researching.

Prompt - First, consult the data you gathered on your selected companies in Milestone One and review the current state of the economy by examining current interest rates and inflation rates retrieved from the Value Line and S&P Dow Jones websites.

Additionally, you should consult the Federal Reserve website, and specifically the Federal Open Market Committee (FOMC) and Economic Research & Data pages, as well as the Sarbanes-Oxley Act of 2002.

Next, in a 2- to 3-page paper, assess the economic climate of the economy, the industry in which your firms operate, and the state of the economics for each firm. This is necessary in order to determine which factors should be taken into consideration, and what the impacts are estimated to be on decision making and performance. Conclude the paper by evaluating any ethical considerations you have regarding current activity and/or relevant regulations.

Specifically, the following critical elements must be addressed:

Assessment of the Economic Climate -

A. Assess the current interest rates for their impacts on short-term financial markets and instruments. Cite specific evidence that supports your conclusions.

B. Assess the current rate of inflation for its impacts on short-term financial markets and instruments. Cite specific evidence that supports your conclusions.

C. Referring to the goal of the Federal Open Market Committee, which is to provide a monetary supply that facilitates constant and moderate expansion of the economy, assess the Federal Reserve's plans (e.g., the likelihood of changes to monetary policy and/or regulations) for their potential impact on short-term financial markets and instruments. Cite specific evidence that supports your conclusions.

D. Examine the ethical (e.g., regulatory, tax) considerations that impact the industry within which your firms operate as a result of Sarbanes-Oxley. To what extent do these realities impact their core cash flow management? Provide specific examples to illustrate.

Be sure to apply instructor feedback on this milestone to your final project. This is a building process, and the information gathered for this assignment will be added and incorporated into the next milestone for improved performance and demonstration of subject mastery.

Note - Need 700 words paper + title page + references with an in-text citation.

Reference no: EM133227699

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