Category: Finance

In your textbook, Analysis for Financial Management, read Chapter 1, “Interpreting Financial Statements.”
Review the Financial Accounting Chapter 1 PowerPoint to help you further understand the chapter.
In your textbook, Principles of Accounting, read Chapter 2 “Introduction to Financial Statements.”
Review the Financial Accounting Chapter 2 PowerPoint to help you further understand the chapter.
Study the Workshop One Practice Problems Workbook to help you better understand the processes used to build financial statements.
Using the Excel Assignment 1.5 Worksheet, complete all eight of the following problems:
Income Statement: Problems 1 and 3
Balance Sheet: Problems 2 and 4
Cash Flow: Problems 5, 6, 7, and 8

Parsi Onious is upset. As a manager in the purchasing department, he has just received an ugly surprise, which has brought him to your doorstep. 
Parsi manages the team of professional buyers responsible for procuring all of the company’s raw materials. This includes hundreds of millions of dollars of metals, chemicals, and plastics each year from around the globe. These materials are used in the manufacture of the company’s products, including a new line of refrigerators that was launched just last year. As buyers, Parsi’s team is primarily measured on the cost of the materials they purchase. They are expected to work hard to continuously bring down these costs and to help the company stay competitive. 
However, Parsi is also personally responsible for producing financial forecasts. Using his inside knowledge of material costs, he is expected to create estimates of how much the company will spend on these materials each month and quarter. These forecasts are used by executives when they communicate with investors. The company sets public earnings targets, so it is critical the forecasts be reliable. Unfortunately, Parsi’s forecast for the last quarter was off by a large margin, and now the Vice President of Operations is demanding answers.
When the company purchases raw materials, a debit is recorded against inventory, while a credit is made to accounts payable. Later, after the company manufactures and ships its products to the customer, a credit is made against inventory, recording the consumption of the raw materials. Meanwhile, in accordance with the expense recognition (matching) principle, cost of goods sold is debited. Parsi’s team is measured based upon the cost of materials, so this transaction is very important to them. Parsi is forecasting how much cost of goods sold will be expensed each month and quarter.
Finished products contain a certain amount of raw material. Herein lies the problem. The engineering team estimated that each refrigerator contains 11.22 pounds of polyurethane foam, an expensive chemical used for insulation. When the refrigerators are shipped, inventory is credited for 11.22 pounds of polyurethane, while 11.22 pounds is simultaneously debited against cost of goods sold as an expense. However, a physical inventory count conducted at the end of the quarter determined that $350,000 of polyurethane was missing. Apparently much more than 11.22 pounds was being consumed in the manufacture of each refrigerator.
The inventory report triggered the company’s accounting department to create an adjusting journal entry. Since this was unexpected, the adjustment resulted in Parsi’s forecast for cost of goods sold to be off by $350,000. As a member of the finance team supporting Parsi, it has now fallen to you to explain the transaction. He doesn’t understand why he is being “penalized” for an apparent inventory control problem at the manufacturing plant, and fears being blamed. Parsi wants to be able to defend himself to the Vice President of Operations, which means he needs to know what happened and how it can be prevented in the future.
Using PowerPoint, create a presentation that explains the adjusting entry and what actions could be taken to improve financial forecasting in the future.
Your presentation should include at least four slides and last three to five minutes. Content must include:
Background and introduction (one slide)
An explanation of how inventory transactions are related to cost of goods sold and how the process for recording material costs normally works. Show a typical journal entry and T-accounts in your presentation (one slide).
An explanation of the adjusting entry that was necessary due to the inventory count and how it would affect cost of goods sold and Parsi’s forecast. Show the adjusting journal entry that occurred and the T-accounts (one slide).
A couple of suggestions for what changes could be made to avoid this forecasting error in the future (one slide)

In what types of situations would capital budgeting decisions be made solely on the basis of project’s net present value (NPV)? Identify potential reasons that might drive higher NPV for a given project. Substantiate your response by providing an example to explain your thought process.
Submitted on:
Jun 20, 2024, 8:37 AM
VIEW DQ RESPONSECC
Clover CreightonJun 20, 2024, 10:43 PM
Unread
Dr. Baker, Companies often use net present value as a capital budgeting method because it is a useful method to evaluate whether to invest in a new capital project. It is refined from both a mathematical and time-value-of-money point of view than either the payback period or discounted payback period methods. It is also more insightful in certain ways than the profitability index or internal rate of return calculations. Net present value uses discounted cash flows in the analysis, which makes the net present value more precise than of any of the capital budgeting methods as it considers both the risk and time variables (Carlson, 2022). Net present value also has its own decision rules if the project is independent or mutually exclusive. Independent projects: If NPV is greater than $0, accept the project. Mutually exclusive projects: If the NPV of one project is greater than the NPV of the other project, accept the project with the higher NPV. If both projects have a negative NPV, reject both projects.
Situations that capital budgeting decisions are made solely based on a project’s NPV would be when a company has limited capital available for the investment and cannot fund all potential projects. So the deciding factor would be the project with the highest NPV. Another situation would be an independent project that have no affect or doesn’t compete with another project or if risk is being considered and equal between projects the higher NPV could be the deciding factor. Ways that NPV might be higher for a given project is if it is a larger project then naturally this would drive up the NPV because there is a direct relationship to sales (Gallant, 2024). Thank you for reading, Clover Creighton
Carlson, R. (2022, November 30). Net present value (NPV) as a capital budgeting method. The Balance. https://www.thebalancemoney.com/net-present-value-npv-as-a-capital-budgeting-method-392915
Gallant, C. (2024, April 17). Disadvantages of net present value (NPV) for investments. Investopedia. https://www.investopedia.com/ask/answers/06/npvdisadvantages.asp#:~:text=Investment%20Size&text=If%20there%20are%20two%20investments,result%20in%20a%20larger%20number.

Tactical financing decisions are essential as they guide a company’s immediate financial strategies. They encompass the decisions about how a company obtains and uses funds in the short term. In this journal entry, you will dive deep into a real- world example, analyzing a company’s recent tactical financing decision and suggesting alternative approaches. This exercise will help cement your understanding of the concepts from the lesson and textbook as you apply them in a practical context.
Start by selecting a company whose recent tactical financing decision piqued your interest. It could be a company that recently went public, secured a new lease agreement, or issued hybrid financing instruments such as preferred stocks or convertible bonds.
Analysis: Based on the knowledge you’ve gained in this unit, briefly describe the company’s recent tactical financing decision. Assess the potential benefits and challenges of this decision for the company.
Alternative financing decisions: Drawing from your understanding of public and private financing, lease financing, and hybrid financing, propose at least two alternative financing strategies the company could have considered. Predict the potential impact of each of your proposed alternatives on the company’s value. Would your proposed alternatives increase or decrease the company’s value? Why?
Reflection: Conclude your journal entry by reflecting on the importance of tactical financing decisions in the broader spectrum of corporate finance. What did you find most intriguing about the company’s choice, and how do you perceive the role of such decisions in shaping a company’s financial future?
Ensure your journal entry is at least 200 words. Write clearly and concisely, focusing on providing a well-thought-out analysis. While references and citations are not mandatory, if you pull specific data or quotes, ensure they are accurately represented. Review your work for clarity and coherence before submitting.

In
this assignment you are asked to estimate the adjustments a MNE would make to
its cost of capital for an acquisition in the countries and currencies you have
chosen to work on. There are several approaches to estimating the cost of
capital in overseas markets. In the appendix entitled “Supplement on
Emerging Market Discount Rates” four are summarized. For this assignment
we will rely upon a simpler approach that emphasizes the spread (or difference)
between the cost of sovereign debt in the U.S. and the cost of sovereign debt
in your chosen countries.
First,
as eview and using our textbook’s notation, recall from Chapter13, the
traditional equation for the weighted average cost of capital (kWACC):
kWACC = kE+kV (1-t)DdV
Where:
ke=
cost of equity
kd=before-tax
cost of debt t = marginal tax rate
E=market
value of the firm’s equity D = market value of the firm’s debt
V=
market value of the firm’s securities (E + D)
Commonly
the cost of equity (ke) is determined using the Capital Asset Pricing
Model(CAPM) defined as:
Ke = Cost of Equity = krf+�m(km-krf) where:
Ke =
expected (required) rate of return on equity
kr
f= rate of interest on risk-free bonds (Treasury bonds, for example)
�m = coefficient of systematic risk for
the firm (beta)
km = expected (required) rate of return on the
market portfolio of stocks According to R. Hacker (using different notation):
The
problem in this formula is in determining Rm, expected return on the equity
market, and ke (equity beta). Many countries have small publicly
traded equity markets or stocks have very small daily or annual trading
volumes. Such a shortage of reliable data makes the determination of R may be
questionable.
[An
alternative to the traditional CAPM formula is proposed]:
Cost of Equity =Rd+(Rmu – Rfu) + (Rfx-Rfu) where:
Rd=
cost of debt of the acquired company
Rmu =Expected return on the equity market in the U.S.
Rfu= Expected risk free rate in the U.S.
(Rm-
Rfu is the premium for equity risk in the U.S.)
Rfx=
Expected risk free rate in the country of the
acquisition
(Rfx-Rfu
is the country risk premium (based on the difference in yield for sovereign bonds)
The advantage of this formula is that almost every company
anywhere in the world has a cost of debt and debt cost is almost always a free
market determination. To the cost of debt what the formula does is add the
premium for equity in the U.S. plus a country risk premium, which adjusts the
U.S. equity premium upward to consider country risk.
[I]f the foreign country has no sovereign debt. I would
reconsider the acquisition because the country is very undeveloped, and it
might be less capital at risk to build a company from scratch. If you still
want to do an acquisition, I would use the interest rate of the largest company
in the country that has issued public or private debt as a surrogate for
sovereign debt. The government should have a lower cost of debt than a private
company but this company’s cost of debt is an objective number and a bit conservative
(which is not a bad thing in a foreign acquisition).
Source:http://sophisticatedfinance.typepad.com/sophisticated_finance/2013/08/calculating-international-cost-of-capital.html
Following
this approach you are asked to determine the cost of equity for an acquisition
in both of your chosen countries and currencies using the following formula:
Ke = Cost  of Equity = kd + (kUSmkt-kUSrf)
+ (kForeignSovDebt-kUSrf )
where
kd= kForeignSovDebt+2%
kUSmkt=
Expected return on the S&P500
kUSrf
= Current yield on 10-yearU.S.Treasury’s
kForeignSovDebt =
Current yield on10-year sovereign debt in your chosen country

Topic: The benefits of owning a multi family home vs buying a condo.
stats can be about state of CT rates. 
The final slide of the presentation should be a reference page using APA formatting. Presentations without a reference page will be automatically deducted 10% of the final assignment grade.
Each student is expected to deliver a 5-minute presentation on the personal finance-related topic of choice. 
Requirments:
Ideas are clearly organized, developed, and supported to achieve a purpose; the purpose is clear. The introduction gets the attention of the audience and clearly states the specific purpose of the speech. Main points are clear and organized effectively. The conclusion is satisfying and relates back to introduction. (If the purpose of the presentation is to persuade, there is a clear action step identified and an overt call to action.)
Citations are introduced and attributed appropriately and accurately. Supporting material is original, logical and relevant.

LITTERATURES TO BE USED :
1)        Barrdear, J., & Kumhof, M. (2016). The macroeconomics of central bank issued digital currencies. Bank of England Working Paper, 605.
2)        Bech, M., & Garratt, R. (2017). Central bank cryptocurrencies. BIS Quarterly Review, March.
3)        Bordo, M. D., & Levin, A. T. (2017). Central bank digital currency and the future of monetary policy. NBER Working Paper, 23711.
4)        Boar, C., Holden, H., & Wadsworth, A. (2020). Impending arrival – a sequel to the survey on central bank digital currency. BIS Papers, 114.
5)        Bordo, M. D., & Levin, A. T. (2021). Central bank digital currency: A framework for analysis. Journal of Economic Literature, 59(1), 27-70.
6)        Brunnermeier, M. K., & Niepelt, D. (2019). On the equivalence of private and public money. Journal of Monetary Economics, 106, 27-41.
7)        Carstens, A., & Caruana, J. (2019). The future of money and payments. Speech at the Reinventing Bretton Woods Committee Conference, Washington, DC.
8)        Cœuré, B. (2018). Casting light on central bank digital currency. Speech at the Economics of Payments IX Conference, Basel, Switzerland.
9)        Easley, D., & O’Hara, M. (2017). The economics of blockchain. NBER Working Paper, 23047.
10)  Frost, J., & Struyven, D. (2018). The case for central bank electronic money and the non-case for central bank cryptocurrencies. PIIE Policy Brief, 18-14.
11)  Gnan, E., & Koch, C. (2018). Central bank digital currency and the role of the banking sector. OeNB Financial Stability Report, 36, 54-67.
12)  Gorton, G., & Zhang, L. (2018). Digital currencies, decentralized ledgers, and the future of central banking. NBER Working Paper, 24845.
13)  He, D., & others. (2021). Exploring the impact of central bank digital currencies. BIS Papers, 118.
14)  Kumhof, M., & Noone, C. (2018). Central bank digital currencies—design principles and balance sheet implications. Bank of England Staff Working Paper, 725.
15)  Lipton, A., & McAfee, A. (2017). The age of cryptocurrency: How Bitcoin and digital money are challenging the global economic order. St. Martin’s Press.
16)  Narayanan, A., & others. (2016). Bitcoin and cryptocurrency technologies: A comprehensive introduction. Princeton University Press.
17)  Raskin, M., & Yermack, D. (2016). Digital currencies, decentralized ledgers, and the future of central banking. NBER Working Paper, 22238.
18)  Rogoff, K. (2016). The curse of cash. Princeton University Press.
19)  Townsend, R. R. (2017). What the Fed did next: Reverse QE and forward guidance. American Economic Review, 107(9), 2769-2810.
20)  Vigna, P., & Casey, M. J. (2016). The age of cryptocurrency: How Bitcoin and the blockchain are challenging the global economic order. Picador.
21)  Asmelash, H. G., & Shu, C. (2020). The Impact of Central Bank Digital Currency on Commercial Banks: A Literature Review. Journal of Central Banking Theory and Practice, 9(1), 185-208.
22)  Baradaran, S. (2018). The law of the ledger: Central banks and cryptocurrencies. California Law Review, 106(1), 113-156.
23)  Beck, T., & Damar, H. E. (2021). Central Bank Digital Currencies and Banking. BIS Working Paper, No. 952.
24)  Bindseil, U. (2021). Central Bank Digital Currency and the Banking System: A Review of the Theoretical Literature. ECB Working Paper, No. 2563.
25)  Bowman, R., & Chen, H. (2021). Central Bank Digital Currency: Potential Implications for Monetary Policy and Financial Stability. IMF Working Paper, No. 21/60.
26)  Carstens, A., & Shin, H. S. (2019). The implications of digital currencies for monetary policy. BIS Working Paper, No. 765.
27)  Chiu, J., & Koeppl, T. V. (2019). Central Bank Digital Currency and Banking. Federal Reserve Bank of Chicago Working Paper, No. 2019-11.
28)  Claessens, S., & Frost, J. (2018). Fintech and Central Banks: A Review of Bank of Canada Research. Bank of Canada Review, Spring 2018.
29)  Deng, Z., & Wang, J. (2020). Central Bank Digital Currency and Its Potential Impact on Commercial Banks: Evidence from a Survey. International Journal of Economics and Finance, 12(11), 1-15.
30)  Dombret, A., & Kenner, A. (2020). Central Bank Digital Currency: Challenges, Opportunities, and Implications for the Banking Sector. CESifo Working Paper, No. 8292.
31)  Duffie, D. (2019). Central Bank Digital Currency and the Future of Monetary Policy. Stanford University Working Paper.
32)  Fernandez-Villaverde, J., & Sanches, D. (2016). Can currency competition work? BIS Working Paper, No. 592.
33)  Frost, J., & Struyven, D. (2018). Central Bank Digital Currency: Central Banking for All? PIIE Working Paper, No. 18-11.
34)  Geng, Z., & Wang, L. (2020). Central Bank Digital Currency and Its Implications for Commercial Banks. Journal of Systems Science and Information, 8(3), 232-246.
35)  Gnan, E., & others. (2019). Central Bank Digital Currencies and Commercial Banks: Identifying Policy Trade-offs. OeNB Financial Stability Report, 38, 81-97.
36)  Igan, D., & others. (2019). Central Bank Digital Currencies: Drivers, Approaches, and Technologies. IMF Working Paper, No. 19/97.
37)  Khiaonarong, T. (2020). Central Bank Digital Currency: A Review of Policy and Strategic Issues. Journal of Money and Finance, 39, 117-128.
38)  Mancini-Griffoli, T., & others. (2018). Casting Light on Central Bank Digital Currency. IMF Working Paper, No. 18/255.
39)  Mylonas, P., & others. (2020). Central Bank Digital Currencies and Their Implications for the Banking Sector. Bank of Greece Working Paper, No. 274.
40)  Nakaso, H. (2017). The Future of Money and Central Banks. Speech at the Japan Society of Monetary Economics Annual Meeting, Tokyo, Japan.
41)  Prasad, E. S., & Shirk, L. (2019). The implications of digital money and central bank digital currencies. Brookings Institution Working Paper, No. 11.
42)  Rogoff, K. (2017). Dealing with the next downturn: From unconventional monetary policy to unprecedented policy coordination. American Economic Review, 107(9), 2465-2507.
43)  Swartz, L. J. (2019). Central Bank Digital Currency and Banking: The Economics of Innovation and Regulatory Responses. Federal Reserve Bank of Cleveland Working Paper, No. 19-13.
44)  Townsend, R. R. (2017). What the Fed did next: Reverse QE and forward guidance. American Economic Review, 107(9), 2769-2810.
45)  Yermack, D. (2015). Is Bitcoin a real currency? An economic appraisal. Handbook of digital currency, 31-43.
QUESTION: How might the impending integration of Central Bank Digital Currencies (CBDCs) affect the strategic positioning and long-term sustainability of commercial banks? 

Explain how the limits to arbitrage can interfere with market efficiency even in the presence of smart money. 
Please note, have your response more than two sentences but no more than a paragraph.

explain how gen z are bringing revolution through demostration marked “occupy parliament”. incase you support the bill dont evern try to bid this. 

A masters thesis in the field of finance on the topic of impact of climate change on financial markets, specifically how environmental disclosure impacts corporate financial performance (WACC, corporate valuation). It’s supposed to be a qauntitative research, so data has to be collected from databases like datastream, WRDS and factset and using this data a resgression anlysis has to be performed using STATA (I need the do-file as well)