Reference no: EM132769416
Part 1.
Many managers do not understand the various ways that interest rates can affect business decisions. For example, if your company decided to build a plant with a 30-year life and short-term debt financing (renewed annually), the cost of the plant could skyrocket if interest rates were to return to their previous highs of 12% to 14%. On the other hand, locking into high, long-term rates could be very costly also with a long period when low short-term interest rates were to be available. As you can see, the ability to know your economic environment and its impact on projected interest rates can be crucial to making good financing decisions.
Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates.
Now think about the industry in which you are employed or one in which you have past experience. To what macroeconomic factors is your industry most sensitive?
Describe two contemporary factors that seem to be impacting your industry today, and identify their impacts on the interest rates experienced within your chosen industry.
Part 2: Stock Valuation, Risk and Returns
The links above contain information on stock valuation, risk, and returns. Please review each one of them. Based on the knowledge gained from the materials presented in the links above, complete the following activities:
Present a detailed discussion of what you learned about stock valuation. Provide examples of how your company has used the concepts. Do you believe financing a company's operation using stock is better than financing with bonds? Why or why not? Support your discussion with a numerical example.
Based on the materials presented in the "Risk and Return" video, present a discussion on why the materials are important in financial decision making. How would you incorporate risk and return in your financing decisions?
Optimal project management structure for project
: You are working with your project sponsor to decide on the optimal project management structure for this project.
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Calculate each partner share of the profit for current year
: The next $40 000 is based on service, shared equally by Kim and Shirin. Calculate each partner share of the profit for current year
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Multinational strategic alliances
: List the two companies, and share a brief description of their alliance.
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Dominant microprocessor company intel adapts to next trend
: After reading the section titled "Dominant Microprocessor Company Intel Adapts to Next Trend"
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Explain the effects of each factor on interest rates
: Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates.
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Describe differences between pert and cpm analysis
: Describe the differences between PERT and CPM analysis. Under what circumstances would you use PERT over CPM? Why?
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Calculate the horizontal percentage of a base-year amount
: Using horizontal analysis, calculate the horizontal percentage of a base-year amount, assuming 2019 is the base year
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What is impact that these new payment models
: What is the impact that these new payment models will have on Krona's revenue. Discuss the challenges, benefits, and risks in utilizing capitation.
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Record the payroll
: Federal income tax withheld was $14,500, and state income tax withheld was $1,500. Net pay for January is $65,268. Record the payroll
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