Calculate the firm earnings per share for each year

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Reference no: EM132256842 , Length: word count:1200

FINANCE FOR MANAGERS Assignment -

In this assignment, you are required to analyse financial information and apply relevant financial techniques and knowledge to make financial decisions and recommendations. These decisions and recommendations need to be communicated clearly in written form.

Case 1 - Track Software Limited

Questions -

Q1. a. On what financial goal does Stanley seem to be focusing? Is it the correct goal? Explain your answer.

b. Could a potential agency problem exist in this firm? Explain.

Q2. Calculate the firm's earnings per share (EPS) for each year, recognising that the number of shares issued has remained unchanged since the firm's inception. Comment on the EPS performance in view of your response to question 1a.

Q3. Use the financial data presented to determine Track's operating cash flow (OCF) and free cash flow (FCF) in 2011. Evaluate your findings in light of Track's current cash flow difficulties.

Q4. Analyse the firm's financial condition in 2011 as it relates to a liquidity, b activity, c debt and d profitability, using the financial statements provided in Tables 2 and 3 and the ratio data included in Table 5. Be sure to evaluate the firm on both a cross-sectional and a time-series basis.  (Note - All tables are in attached file).

5. What recommendation would you make to Stanley about hiring a new software developer? Relate your recommendation here to your responses to question 1a.

Case 2 - Lasting Impressions Company

Questions -

Q1. For each of the two proposed replacement presses, determine:

a. initial investment

b. operating net cash inflows

c. terminal cash flow (Note: At the end of year 5).

Q2. Using the data developed in question 1, find and depict on a time line the relevant cash flow stream associated with each of the two proposed replacement presses, assuming that each is terminated at the end of five years.

Q3. Using the data developed in question 2, apply each of the following decision techniques:

a. payback period (Note: Ignore any terminal cash flows at the end of year 5)

b. net present value

c. internal rate of return.

Q4. Draw NPV profiles for the two replacement presses on the same set of axes; discuss conflicting rankings of the two presses, if any, resulting from the use of NPV and IRR decision techniques.

Q5. Recommend which, if either, of the presses the firm should acquire if the firm has:

a. unlimited funds

b. capital rationing.

Q6. What is the impact on your recommendation of the fact that the operating net cash inflows associated with press A are characterised as very risky in contrast to the low-risk operating net cash inflows of press B?

Textbook - Principles of Managerial Finance by Gitman, Juchau and Flanagan, 2011, 6th edition.

Attachment:- Assignment File.rar

Reference no: EM132256842

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Reviews

len2256842

3/14/2019 3:37:19 AM

Your assignment involves two case studies of equal weighted marks. Length: 1200 words maximum - this requirement refers to the written analysis section of the assignment only and is a "maximum". Students will not be penalised for using fewer words and making their report more succinct. If you submit over-length work there will be an automatic 10% penalty of the total possible marks for this assessment. Title pages, calculations section, reference lists and any appendices are NOT included in the word count.

len2256842

3/14/2019 3:37:12 AM

A signed assignment coversheet should be downloaded from the assignment folder on MyLO and must be submitted with the paper submission. Assignments without a coversheet will not be marked. Late work will be penalised unless you have been granted an extension by the unit coordinator. Calculations may be prepared in an Excel document, however your submission must be in the form of a single Word document for the electronic version.

len2256842

3/14/2019 3:37:06 AM

This is an individual assignment. Under no circumstances should you share your workings or any part of your assignment with other students - this constitutes academic misconduct and actions will be taken. All similarity reports on Turnitin will be thoroughly checked for matching with external sources and with other BFA728 assignments. You are asked not to discuss the assignment with other students on MyLO. You may ask general questions on MyLO if there is something you need clarified but you should not discuss any calculations or where you have found any relevant information with other students.

len2256842

3/14/2019 3:37:00 AM

Rubric - Determine the relevance of financial data and information in the scenario. Identify and explain the relevant theoretical issues. Additional research may be required outside the prescribed materials. (weight = 30%) Presents a logical, reasoned and structured argument that identifies relevant conceptual issues and critically evaluates all information in the scenario while discussing its relevance to the required analysis. Identify relevant financial techniques and correctly apply them to the situation in the scenario. (weight = 40%) Relevant financial techniques are identified and always or almost always correctly applied.

len2256842

3/14/2019 3:36:55 AM

Present a pertinent analysis interpreting the meaning of financial calculations. (weight= 20%) Presents a structured, reasoned and pertinent analysis of the financial calculations. The analysis is meaningful and assists with resolving the problematic in the scenario. Communicate independently in clear and coherent English. Acknowledge sources using appropriate referencing. (weight = 10%) Adheres to English conventions making report easy to read. Acknowledges all sources and referencing is accurate and consistent.

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