Investments on a corporation  balance sheet.

role of   investments on a corporation  balance sheet
Instructions

Reflect on this  lesson, and share your thoughts as to the role of   investments on a corporation  balance sheet. What considerations would you have   in your business as you  consider short-term and long-term investments? What   are  the advantages that you  see from one rather than the other?

Your journal entry must be at least 200 words in length.  No references or   citations are necessary.

What are the similarities between the time value of money formulas

Video Reflection 2 [WLOs: 2, 3, 5] [CLOs:1, 2, 3, 4]

In the past two weeks, you have chosen a publicly traded company and have prepared Section 3 of the Week 5 final project. Section 3 evaluated the stock price of the company using the constant growth formula. This week, you practiced NPV calculations in the discussion, and you are working on Section 4 of the Final Project. In Section 4, you will use the capital asset pricing model (CAPM) to calculate the company’s required rate of return. Then, using this CAPM required rate of return, you will recalculate the company’s stock price using the constant growth formula.

At this point, you have begun to develop an understanding of the value of the company’s stock. Ultimately, you will need to decide if you can recommend investing in this company’s stock (with a buy recommendation) or if you do not feel it is a good investment (a sell recommendation). For many companies, the evidence will be quite strong in one direction or the other. For other companies, the evidence will be conflicting, and you may consider issuing a hold recommendation.

Prepare:

Prior to beginning work on this journal,

Record:

Record a two- to three-minute video answering the following questions:

  • What are the similarities between the time value of money formulas (from Week 3) and the NPV analysis in the Week 4 discussion?
  • What is the purpose of NPV analysis? Be sure to discuss the concepts of risk and return in your answer.
  • What are two improvements or corrections you could make to your previous assignments in preparation for the final project that is due in Week 5?
  • What is going well and what are you struggling with in regard to Weeks 3 and 4?
  • What is one question you have about the Week 4 assignment or the Week 5 final project?

Accessibility Statement: If you have a disability that impacts your ability to successfully participate in this or any other course activity, please provide your instructor with your Authorized Accommodation Form from the Office of Student Access and Wellness so that they can discuss and arrange an alternative plan with you

Waterways

Waterways (Chapter 19)

For this assignment, you will apply what you have learned  from the unit        lesson and required unit resources. The Waterways (WP19) case is  located on       page 19-39 of the textbook.

Waterways Corporation is a private corporation  formed for  the purpose of      providing the products and the services needed to  irrigate farms,  parks,       commercial projects, and private lawns. It has a  centrally located  factory in    a U.S. city that manufactures the products it  markets to retail  outlets       across  the nation. It also maintains a division that  performs  installation      and  warranty servicing in six metropolitan areas.

The  mission of Waterways is to manufacture quality parts  that can be used     for  effective irrigation projects that also conserve water. By  that effort,     the  company hopes to satisfy its customers, perform rapid and  responsible       service,  and serve the community and the employees who represent  them in each    community.

The company has been growing rapidly, so management is  considering new       ideas  to help the company continue its growth and maintain the  high quality      of  its products.

Waterways was founded by Will Winkman, who is the company  president  and       chief executive officer (CEO). Working with him from the company’s  inception      is  Will’s brother, Ben, whose sprinkler designs and ideas about the        installation  of proper systems have been a major basis of the company’s        success.  Ben is the  vice president who oversees all aspects of design and        production in  the  company.

The factory itself is managed by Todd Senter, who  hires  his line managers     to supervise the factory employees. The factory makes  all of  the parts for      the  irrigation systems. The purchasing department is  managed by  Helen Hines.

The installation and training division is overseen by  vice  president, Henry   Writer, who supervises the managers of the six local  installation operations.    Each of these local managers hires his or her own  local  service people. These    service employees are trained by the home office  under  Henry Writer’s       direction because of the uniqueness of the company’s  products.

There is a small human resources department under the  direction of  Sally      Fenton, a vice president who handles the employee paperwork,  though  hiring is    actually performed by the separate departments. Teresa Totter  is the  vice      president who heads the sales and marketing area; she oversees 10  well-trained    salespeople.

The accounting and finance division of the company  is  headed by Ann       Headman, who is the chief financial officer (CFO) and a  company  vice       president; she is a member of the Institute of Management  Accountants and        holds a certificate in management accounting. She has a small  staff of        accountants, including a controller and a treasurer, and a staff of  accounting    input operators who maintain the financial records.

A partial list  of Waterways’ accounts and their balances  for the month of     November is itemized  below.

Accounts Receivable $275,000  Advertising Expenses 54,000   Cash 260,000  Depreciation – Factory       Equipment 16,800  Depreciation –  Office Equipment 2,400  Direct Labor 42,000  Factory Supplies Used 16,800  Factory Utilities 10,200  Finished Goods Inventory,  November       30   68,800   Finished Goods Inventory,  October       31  72,550  Indirect Labor  48,000    Office Supplies Expense   1,600   Other Administrative Expenses 72,000    Prepaid  Expenses 41,250  Raw Materials Inventory,  November       30  52,700   Raw Materials Inventory,  October       31  38,000   Raw Materials Purchases 184,500  Rent – Factory Equipment 47,000   Repairs – Factory Equipment 4,500  Salaries  325,000  Sales Revenue    1,350,000   Sales  Commissions   40,500   Work in Process Inventory,  October       31 52,700  Work in Process Inventory,  November       30  42,000

Instructions:

  • Based on the information given, construct an organizational chart of the                        Waterways Corporation. You may create the organizational    chart     in           Microsoft       Word or Excel.
  • A list of accounts and their values are given above. From this                        information, prepare a cost of goods manufactured schedule, an income                        statement, and a partial balance sheet for the month of      November,   which       should           be created using Excel.

If you elect to  create your organizational chart in a Word  document, then     you will need to  submit both a Word document (containing the  organizational     chart) and an Excel  document (containing the cost of goods  manufactured       schedule, income statement,  and partial balance sheet). If you  elect to       create  your organizational chart in  Excel, you will only submit an  Excel       document,  which would contain all  components of the  assignment.

APA  formatting is not necessary.

Explain the three types of risk and beta

In this assignment, you will recalculate the value of the company’s stock based on your company’s specific required rate of return. To do this, you will calculate the required rate of return for your chosen publicly traded company using the capital asset pricing model (CAPM).

Last week, you determined a preliminary estimate of the company’s stock price using the constant growth formula. To simplify the calculation, you were required to use general market required rates of return, based on size. However, this is an assumption that does not account for the specific risk of an investment in a specific company. This week, you will calculate the required rate of return for your chosen publicly traded company using the CAPM. The CAPM is a more precise tool to estimate a firm’s required rate of return. This tool is “tremendously valuable because required returns are used as the discount rates in the valuation formulas when doing time value of money problems and security valuation” (Hickman et al., 2013, Section 9.3, para. 1). You will then use this CAPM required rate of return to revise your stock price value based on the constant growth formula. This will allow you to determine your final recommendation of buy, hold, or sell.

Prepare:

Prior to beginning work on this assignment,

BUS401 – Valuation Conclusion (Links to an external site.)

Write:

In your paper, address the following five parts in a Word document:

Part 1: (two paragraphs)

  • Explain the three types of risk and beta, and how these concepts relate to a company’s required rate of return.

Part 2: (two paragraphs)

  • Find your company’s beta from a credible source.
  • Compare your company’s beta to the market beta of 1.0.
  • Calculate the company-specific required rate of return using the CAPM formula.
    • Show all calculations.
    • Use the beta you determined for your chosen company
    • Use a risk-free rate of 2.0%.
    • For the market risk premium, use the following assumptions:
      • For a large capitalization company (greater than $10.0 billion in market capitalization) use 6.0% as the market risk premium.
      • For a mid-cap company (between $2.0 billion and $10.0 billion in market capitalization) use 8.0% as the market risk premium.
      • For a small-cap company (less than $2.0 billion in market capitalization) use 11.0% as the market risk premium.
  • Compare the company-specific required rate of return you calculated to the required return based on size you used in Section 3: Dividend Analysis and Preliminary Valuation in Week 3 for the constant growth formula.
    • Determine whether the company-specific required rate of return higher or lower than the rate of return based on size that you used in Section 3 in Week 3 for the constant growth formula?
    • Explain the difference in required rate of returns.

Part 3: (two to four paragraphs)

  • Recalculate both estimates (the low-end and the high-end) of the stock price using the constant growth formula.
    • Use the company’s specific required rate of return you determined using the CAPM.
    • Review your selected high-end and low-end growth rates from Week 3.
      • If either growth rate is higher than the new CAPM discount rate, you must reduce your selected growth rate(s).
      • Your growth rates cannot be higher than the discount rate, because the calculations will result in a negative stock price, which is not meaningful.
      • Include a short, written explanation to explain the revised growth rates.
  • Show your revised high-end and low-end stock price calculations
  • Compare each of the two recalculated stock prices to the current stock price per share of the company.
  • State whether each recalculated stock price (low-end and high-end) is above or below the current market price.
  • State whether each recalculated stock price (low-end and high-end) indicates if the stock price is currently under-valued or over-valued in the market.
    • (See Section 9.3: Required Returns in your course text.)
  • State your recommendation for your concluded stock price for the company.
    • Use either the high-end stock price or the low-end stock price from the constant growth formula using the CAPM required rate of return.
  • Justify the conclusion of value for your stock based on the most important financial facts from the prior weeks’ analysis.

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The Section 4: Valuation Conclusion paper

Note: Since this is Section 4 of the Week 5 final project, there is no need for an introduction paragraph.

Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.

 Curtis’s CoffeeCookie Creations Curtis’s CoffeeCookie Creations

Instructions
Cookie Creations (Chapter 13)

This assignment is a continuation of the Cookie Creations case study. From the information gathered in the previous chapters, read the continuation of the Cookie Creations case study in Chapter 13 on page 13-32 of the textbook. The case study allows you to apply what you have learned about corporations and stocks from the unit lesson and required unit resources. Natalie’s friend Curtis Lesperance decides to meet with Natalie after hearing that her discussions about a possible business partnership with her friend Katy Peterson have failed. Natalie had decided that forming a partnership with Katy, a high school friend, would hurt their friendship. Natalie had also concluded that she and Katy were not compatible to operate a business venture together. Because Natalie has been so successful with Cookie Creations and Curtis has been just as successful with his coffee shop, they both conclude that they could benefit from each other’s business expertise. Curtis and Natalie next evaluate the different types of business organization. Because of the advantage of limited personal liability, they decide to form a corporation. Curtis has operated his coffee shop for 2 years. He buys coffee, muffins, and cookies from a local supplier. Natalie’s business consists of giving cookie-making classes and selling fine European mixers. The plan is for Natalie to use the premises that Curtis currently rents to give her cooking-making classes and demonstrations of the mixers that she sells. Natalie will also hire, train, and supervise staff to bake the cookies and muffins sold in the coffee shop. By offering her classes on the premises, Natalie will save on travel time going from one place to another. Another advantage is that the coffee shop will have one central location for selling the mixers. The current market values of the assets of both businesses are listed below. Curtis’s CoffeeCookie CreationsCash$7,130$12,000 Accounts receivable100800Inventory4501,200 Equipment2,5001,000**Cookie Creations decided not to buy the delivery van considered in Unit II. Combining forces will also allow Natalie and Curtis to pool their resources and buy a few more assets to run their new business venture. Curtis and Natalie then meet with a lawyer and form a corporation on November 1, 2020, called Cookie& Coffee Creations Inc. The articles of incorporation state that there will be two classes of shares that the corporation is authorized to issue: common shares and preferred shares. They authorize 100,000 no-par shares of common stock and 10,000 no-par shares of preferred stock with a $0.50 noncumulative dividend. The assets held by each of their sole proprietorships will be transferred into the corporation at current market value. Curtis will receive 10,180 common shares, and Natalie will receive 15,000 common shares in the corporation. Therefore, the shares have a fair value of $1 per share. Natalie and Curtis are very excited about this new business venture, so they have come to you with the questions below.

  1. Curtis’s dad and Natalie’s grandmother are interested in investing $5,000 each in the business venture. We are thinking of issuing them preferred shares. What would be the advantage of issuing them preferred shares instead of common shares?
  2. Our lawyer has sent us a bill for $750. When we discussed the bill with her, she indicated that she would be willing to receive common shares in our new corporation instead of cash for her services. We would be happy to issue her shares, but we are a bit worried about accounting for this transaction. Can we do this? If so, how do we determine how many shares to give her?

Instructions:

  1. In a Word document, answer the questions posed by Natalie and Curtis above.
  2. In an Excel spreadsheet, prepare the journal entries required on November 1, 2020, the date when Natalie and Curtis transfer the assets of their respective businesses into Cookie & Coffee Creations Inc.
  3. Assume that Cookie & Coffee Creations Inc. issues 1,000 $0.50 noncumulative preferred shares to Curtis’s dad and the same number to Natalie’s grandmother—in both cases for $5,000. Also assume that Cookie & Coffee Creations Inc. issues 750 common shares to its lawyer.
  4. Prepare the journal entries for each of these transactions. They all occurred on November 1. Prepare the opening balance sheet for Cookie & Coffee Creations Inc. as of November 1, 2020, including the journal entries in (b) and (c) above.

Provide your responses to Natalie and Curtis’s two questions in a Word document, which should be a minimum of one page in length. Complete the accounting for items b–d in one Excel spreadsheet; you may use multiple tabs to organize your response. In summary, you will submit one Word document containing item a and one Excel spreadsheet containing items b–d.

Analyze Technologies that enhance the human experience

Competency

Analyze Technologies that enhance the human experience

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

You are the training manager for a large manufacturing company that is planning a large renovation during a two-week shutdown. All of the equipment in the assembly area is being replaced, which will take the full two weeks.

As training manager, you are concerned about how you will train the workers in the assembly area as the new equipment will not be available until after the shutdown. By the end of the two-week renovation, the assembly employees must be trained and ready to begin work using the new equipment.

The manufacturer for the new equipment has suggested augmented reality (AR)/virtual reality (VR) might be a good training solution. The plant manager asks that you prepare a training plan to be shared with employees during the next plant meeting providing them the virtual reality retraining information. Be sure to support your recommendations with credible resources. Using the assigned readings in this module is a good starting point. Research databases are listed in the Resources area below.

Instructions

You are tasked with preparing a training plan proposal that will be distributed to leadership in the form of a PDF.

The training plan proposal should introduce the AR/VR training including the format and scope. It should discuss the advantages and concerns related to using AR/VR for retraining needs.

In Microsoft Word, create the training plan proposal and then save as a PDF. The training plan proposal should accomplish these objectives:

  • Introduce the training by name, purpose, scope, and format.
  • Examine how using AR/VR technology enhances the human experience during training and development.
  • Evaluate any concerns over using this AR/VR technology for retraining.
  • Compare this AR/VR retraining to a standard retraining process.
  • On an APA formatted reference page, cite supporting credible sources for your recommendations.

NOTE – Be sure the document displays proper grammar, spelling, punctuation, and sentence structure.

Evaluate technology used in digital transactions

Competency

Evaluate technology used in digital transactions

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

You are the financial advisor for a large antique coin and gold distributor. Some of your large customers are requesting the distributor begin accepting cryptocurrency, which is possible because of blockchain technology.

The distributor has been accepting credit cards and money transfers for many years. The fees associated with transactions have continued to increase. The fees have become so large that the distributor has been forced to pass along the cost to customers.

Customers outside the United States have also requested to use cryptocurrency since currency exchange rates can fluctuate greatly depending on world events.

The distributor asks that you prepare a presentation to stakeholders in the distributorship, discussing the acceptance of cryptocurrency, which uses blockchain technology. Be sure to support your recommendations with credible resources. Using the assigned readings in this module is a good starting point. Research databases are listed in the Resources area below.

Instructions

You are tasked with preparing a presentation that will discuss blockchain technology, which could allow the distributor to accept cryptocurrency. The presentation will discuss the types of cryptocurrency, the advantages, the concerns, and the risks related to using cryptocurrency in the business. The stakeholders may not be familiar with this technology so be thorough in your description of the technology.

In Microsoft PowerPoint, Prezi, or another presentation tool create the presentation. The presentation should be at least 6 slides and should accomplish these objectives:

  • Define blockchain and cryptocurrency technologies and how they work together
  • Evaluate the types of cryptocurrency technologies appropriate for the distributor
  • Explain how blockchain and cryptocurrency technologies create a competitive advantage for the distributor
  • Examine the risks associated with accepting cryptocurrency
  • Recommend that the stakeholders approve or deny the request to use cryptocurrency in a clear recommendation statement or call to action
  • Begin with a title slide
  • Use formatting tools to create visual interest and support the message visually
  • End with a References slide

NOTE – Be sure the document displays proper grammar, spelling, punctuation, and sentence structure.

Critique the implications of using technology and emerging trends in business

Competency

Critique the implications of using technology and emerging trends in business

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

You are the administrator for a small healthcare company. Your company is preparing the five-year technology forecast as a part of the company-wide plan. Your company knows that technology changes quickly and making sure patients have the latest innovations is important. Your company wants to explore some of the new trends in technology but is concerned about the legal and ethical implications.

The director of the healthcare company has asked that you create a 5-year forecast plan sharing with the leadership some new technologies in healthcare. The director is concerned with the legal and ethical implications of using emerging technology in patient care. Be sure to support your recommendations with credible resources. Using the assigned readings in this module is a good starting point. Research databases are listed in the Resources area below.

Instructions

As the administrator, you will research then develop a 5-year forecast for the director that explores two emerging technologies in the healthcare arena. You will need to address the ethical and legal implications. The director may not be familiar with these technologies so be thorough in the description of the technologies.

In Microsoft Word, create the 5-year forecast plan. The 5-year forecast plan should be 3 – 4 pages in length and should accomplish these objectives:

  • Evaluate two new technologies in healthcare that reflect future trends; be sure to include visual aids such as graphs or charts.
  • Examine legal implications of implementing these emerging technologies in the healthcare field.
  • Describe any ethical concerns about using emerging technologies in the healthcare field.
  • Include an estimation of costs associated with the new technologies.
  • In an APA formatted reference section, cite supporting credible sources for your recommendation.

NOTE – Be sure the document displays proper grammar, spelling, punctuation, and sentence structure.

Analyze the use of technology to increase cognitive intelligence and knowledge in business.Analyze the use of technology to increase cognitive intelligence and knowledge in business.

Competency

  • Analyze the use of technology to increase cognitive intelligence and knowledge in business.
  • Evaluate the role smart technologies plays in increasing competitive advantages.
  • Analyze technologies that enhance the human experience.
  • Evaluate technology used in digital transactions.
  • Analyze sustainable and renewable resources and their roles in business.
  • Critique the implications of using technology and emerging trends for business.

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

The regional hospital board is dedicated to exploring emerging technology trends in order to remain competitive. You are the Vice President of Innovation for the hospital. You have been asked by the hospital board to evaluate emerging trends in technology for use in the hospital. The technologies to be evaluated are artificial intelligence, smart technology, virtual reality, blockchain technology/cryptocurrency, and sustainable and renewable resources. You must remember that the hospital deal with patients so legal and ethical implications and privacy and security concerns must be addressed. The hospital board is looking for these technologies to provide competitive advantage to support the investment by the hospital.

The hospital board asks that you prepare a report sharing with them the technologies, addressing their concerns, and supporting the investment. Be sure to support your recommendations credible resources. Using the assigned readings in the modules would be a good place to start.

Instructions

You will construct a comprehensive report for the hospital board of the technology, emerging trends, legal and ethical implications, and security and privacy concerns. The hospital board may not be familiar with this technology so be thorough in your description of the technology; use examples where appropriate.

In Microsoft Word, create the report. The report should be 10 – 12 pages in length and should accomplish these objectives:

  • Examine how the hospital can use artificial intelligence to improve inpatient care using the knowledge gained in Module 1.
  • Explore how the hospital can use sensors which are a type of smart technology to better monitor patients in their rooms using the knowledge gained in Module 2.
  • Identify how the human resource department can better train employees on new surgical technologies using virtual reality using the knowledge gained in Module 3.
  • Explore how the patient accounts area can accept cryptocurrency as a method of payment using the knowledge gained in Module 4.
  • Distinguish ways the hospital can use sustainable and renewable resources technologies using the knowledge gained in Module 5.
  • Evaluate the legal or ethical implications for adopting these technologies using the knowledge gained in Module 6.
  • Distinguish any privacy or security concerns resulting from adopting these technologies using the knowledge gained in Module 6.
  • Support how these emerging trends in technology provide a competitive advantage for the hospital using the knowledge gained in Module 6.

NOTE – Be sure the document displays proper grammar, spelling, punctuation, and sentence structure.

top 5 strengths and how you can apply them to your current or future leadership context.

top 5 strengths and how you can apply them to your current or future leadership context.

1. Reading Assignment:

a. Start by watching this 5-minute video that will introduce you to Marcus Buckingham and the strengths revolution http://www.youtube.com/watch?v=qBP82OuG7m4

b. You can also go to https://www.gallup.com/cliftonstrengths/en/home.aspx. There is a green rectangular button in the middle of the web page that says [WATCH VIDEO].

c. Additional videos are available at http://www.bing.com/videos/search?q=marcus+buckingham%2c+playing+to+your+strengths&qpvt=Marcus+Buckingham%2c+Playing+to+your+strengths&FORM=VDRE

d. Read Rath & Conchie: Strengths-Based Leadership (pages 7 – 95 and the 5 additional resources related to your top 5 strengths)2. Activity/Writing Assignments:

a. Read Rath & Conchie: Strengths-Based Leadership (pages 7 – 95).

b. Read Rath & Conchie: Strengths-Based Leadership (the 5 additional resources related to your top 5 strengths)

c. Strengths Paper: Write a 2-page paper that identifies your top 5 strengths and how you can apply them to your current or future leadership context.

i. What are your strengths/advantages?

ii. What are your weaknesses/pitfalls?

iii. How would you address these weaknesses?

iv. How would you use your strengths in leadership?

v. Make sure you attach your Strengths Report from Gallup.com in the “Assignment – Strengths Report” Dropbox.

Assignment Guidelines:

• Minimum 2 pages, double-spaced.

• Must be APA7.

• Make sure to use correct APA in-text citations for paraphrased ideas and quoted text.