Category: Business paper

In anticipation of Mary’s request for comparative analysis, it will be useful at this time to do some research. You know that you can obtain the financials of companies within the same sector or Standard Industry Code as Apix Printing (e.g., commercial printing), and that the North American Industry Classification System (NAICS) Standard Industry 2012 code for Apix Printing is presently 323111. Use the Library Guide to search for two other companies in the same industry as Apix Printing.

When you get to work the next day, you see the following e-mail from Mary:

Here is the list of financial ratios you asked for. I need you to explain the computation of each and compute these for Apix’s results for the financial statements you are using for the PowerPoint presentation. Also, compare Apix’s 2-year trend results to that of two other firms in the sector. Indicate how each of Apix’s ratios differs, and indicate whether the two other companies’ ratios or Apix’s ratios are indicative of better performance.

Explain the computation for each of the following, and compute each for Apix and two other companies in the same industry as Apix Printing:

1. Current ratio
2. (Long-term) debt to equity ratio
3. Gross margin percentage
4. Net profit margin percentage
5. Return on equity percentage
Present your findings of the above data in a table. Add a paragraph that summarizes your results, indicating whether investors would find the financial analysis results of Apix competitive as compared to rivals in the sector. Be sure to include both positive and negative trends in your analysis.

Mary Francis has just returned to her office after attending preliminary discussions with investment bankers. Her last meeting regarding the intended capital structure of Apix went well, and she calls you into her office to discuss the next steps.

“We will need to determine the required return for our intended project so that we have decision criteria defined for the project,” she says.

“Do you have the information I need to describe the capital structure and to calculate the weighted average cost of capital (WACC)?” you ask.

“I do,” she smiles. “We can determine the target WACC for Apix Printing Inc., given these assumptions,” she says as she hands you a piece of paper that says the following:

Weights of 40% debt and 60% common equity (no preferred equity)
A 35% tax rate
Cost of debt is 8%
Beta of the company is 1.5
Risk-free rate is 2%
Return on the market is 11%
“Great,” you say. “Thanks.”

“Be sure to indicate how these costs of capital might be used to determine the feasibility of the capital project,” Mary says. “I want your recommendation about which is more appropriate to apply to project evaluation, too. Let me know what you think.”

“One more thing,” she says as she stands up to signal the end of the meeting. “You did a good job with the explanations that you provided Luke the other day. Would you have time to define the marginal cost of capital for me so I can include it in my discussions with investors? You seem to have a knack for making things accessible to nonfinancial folks.”

“No problem,” you say. “I’m glad my explanations are so useful!”

Apix is considering coffee packaging as an additional diversification to its product line. Here’s information regarding the coffee packaging project:

Initial investment outlay of $40 million, consisting of $35 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in the terminal year
Project and equipment life: 5 years
Sales: $27 million per year for five years
Assume gross margin of 50% (exclusive of depreciation)
Depreciation: Straight-line for tax purposes
Selling, general, and administrative expenses: 10% of sales
Tax rate: 35%
Assume a WACC of 10%.

Should the coffee packaging project be accepted? Why or why not? Compute the project’s IRR and NPV.

In addition, answer the following questions:

Do you believe that there was sufficient financial information to make a solid decision on what to do?
Was there further financial information that you required that was not provided to you?
What financial figure do you believe was the determinant to your decision and why?
How would you be able to apply this particular financial information to other situations?
Discuss risk methodologies used in capital budgeting.

1. Consider an economy with only two capitalist enterprises. Assume that enterprise A advances weekly constant capital of $200 and weekly variable capital of $100. Enterprise B advances weekly constant capital of $100 and weekly variable capital of $200. In addition, assume that enterprise A has a turnover time of 4 weeks and enterprise B has a turnover time of 8 weeks. Calculate the annual rate of profit and the annual rate of surplus-value assuming the weekly rate of surplus-value is 100% for both enterprises and that each year has 52 weeks.

How do the annual rates of profit compare? Is this result surprising? Explain the result with reference to the organic compositions of capital and to the turnover times of the two enterprises.

1. Competition among capitalists in the international commodity markets has pushed down the prices of imported raw materials that are used in many domestic industries. What is the impact on the aggregate constant capital advanced? What is the impact on the annual general rate of profit?
2. We have an economy with two major sectors: Sector I produces the means of production, and Sector II produces the means of consumption. The constant capital advanced in Sectors I and II are $20 billion and $30 billion, respectively. Assume that the variable capital advanced in Sectors I and II are $20 billion and $10 billion, respectively. Also assume that the rate of surplus-value is 100% in each sector. Is the economy balanced or will a macroeconomic crisis occur due to the un-coordination between the two sectors? Explain with reference to the numerical values in this example.
3. There was a clear conflict of interest that arose for the credit rating agencies leading up to the financial crisis of 2008. What do you think is the best way to limit such conflicts of interest that might arise in financial markets?
4. Use Post-Keynesian theory when considering this question. Suppose that workers reduce their savings. What will happen to capitalist profits and the degree of income inequality? To which phase of the business cycle does this change correspond? Is this change consistent with what you would expect to happen using the neoclassical synthesis model?

Length: 2-3 pages

 

Write a 4- to 5-page paper (1000 to 1375 words) in APA format and thoroughly address the prompts below. Whenever possible, provide specific examples or recommendations. Be sure to cite all of your sources and include at least one outside source in this paper.

For this assignment, please select two specific countries (whose systems are different from each other) to compare as your focus. Provide a descriptive title or heading for your paper such as, “Political and Economic Developments in…” [MO 2.1, MO 2.2, MO 2.3, MO 2.4, MO 2.5]

Address all of the following prompts in your paper:

Explain in detail why and how the political systems of your chosen countries differ.
Discuss how the legal systems of your chosen countries differ.
Explain what determines the level of economic development of a nation and describe the economy of each country, including the level of technology used.
Discuss the macro-political and economic changes taking place worldwide and include examples.
Analyze how to transition economies are moving toward market-based systems.

This unit aims to develop learners’ understanding of the key principles that underpin
Managing brands and brand equity. The module enables you devise a strategic approach to branding for product/service level consistent with the corporate brand. The learners will develop an understanding of how to do marketing from a branding perspective. The learner will gain the skills to establish and position brand strategy, and also manage the brand so it continues to deliver the brand promise. The learners will also important issues involved in building strong brands and in maximising the value of existing brands in various industries and sectors.
Learning Outcomes – the learner will:
Assessment Criteria – the learner can:
1. Understand the concept of brand and how branding relates to other areas of marketing including, sustainability and corporate communications.
1.1 Analyse the concept of a brand, brand elements and brand management.
1.2 Analyse the relationship between corporate communication, corporate branding and individual product branding.
1.3 Evaluate the relationship between brand identity, brand image, brand positioning, and brand personality.
1.4 Evaluate the role of corporate social responsibility and sustainability practices in branding.
2. Understand branding models, brand equity, brand personality, corporate reputation and corporate communication and their interrelations.
2.1 Analyse the factors that drive brand identity and brand positioning.
2.2 Analyse brand personality of a brand or an organisation.
2.3 Analyse the interrelationship between brand. management and corporate reputation to sustain brand equity.
2.4 Evaluate the models of brand equity and the impact of brand equity on organisational success.
2.5 Analyse how brand equity and reputation can be developed through integrated marketing programmes together with a digital presence.
3. Understand the process and factors related to developing and enhancing brand image over time.
3.1 Analyse the main branding challenges in contemporary markets and potential approaches to overcome them.
3.2 Analyse the basis of brand association and brand
differentiation.
3.3 Analyse the process and stages of brand launch
sponsorship and development over time.
4. Understand the development of brand management strategies to meet marketing objectives.
4.1 Justify a brand development strategy and brand management plan.
4.2 Analyse the human and physical resources needed to support the brand plan.
4.3 Evaluate a marketing campaign, including digital & social media campaigns to successfully develop a brand position to meet marketing objectives.
4.4 Evaluate the outcomes of a range of brand metrics to determine the performance of the brand.

Scenario
You are recently hired as the Head of Brand Management in the company.
The CEO wants you to analyse and develop an effective branding plan for any ONE brand of the chosen organisation.
Task 1 of 1 – Brand Management Report
Instructions
The following points need to be addressed when preparing the report:
Section A (ACs 1.1, 1.2, 1.3, 1.4)
1. Analyse the concept of a brand, brand elements, and brand management. Give examples from your chosen brand.
2. Analyse the relationship between corporate communication, corporate branding and individual product branding at your chosen organisation.
3. Evaluate the relationship between brand identity, brand image, brand positioning, and brand personality for the chosen brand.
4. Evaluate the role of corporate social responsibility and sustainability practices in branding at the chosen organisation.
Section B (ACs 2.1, 2.2, 2.3, 2.4, 2.5)
1. Analyse the factors that drive brand identity and brand positioning. Giving examples from your chosen brand.
2. Analyse brand personality of your chosen brand or chosen organisation.
3. Analyse the interrelationship between brand management and corporate reputation
to sustain brand equity at your chosen organisation.
4. Evaluate the models of brand equity and the impact of brand equity on success of
your chosen organisation.
You are tasked to choose ONE brand from your chosen company. Your report should analyse the current position of the chosen brand, show how the company develops an effective branding and brand development strategy to enhance brand value. Each task must be answered with application, analysis and evaluations of theoretical concepts and models
of branding with references to your chosen organization.
5. Analyse how brand equity and reputation can be developed through integrated marketing programmes together with a digital presence for your chosen brand.
Section C (ACs 3.1, 3.2, 3.3)
1. Analyse the main branding challenges in contemporary markets and potential approaches to overcome them for your chosen brand.
2. Analyse the basis of brand association and brand differentiation. Use examples of your chosen brand.
3. Analyse the process and stages of Brand launch sponsorship and development over time for the chosen brand.
Section D (ACs 4.1, 4.2, 4.3, 4.4)
1. Develop and Justify a brand development strategy and brand management plan for the chosen brand.
2. Analyse the human and physical resources needed to support the brand plan for the chosen organisation and the brand.
3. Evaluate a marketing campaign, including digital & social media campaigns to successfully develop the brand position to meet marketing objectives for the chosen organisation and the brand.
4. Evaluate the outcomes of a range of brand metrics to determine the performance of the chosen brand.
Delivery:
• 1x Word file Submission:
• 1x Word file – 4500 words excluding TOC, diagrams, references and appendices
Referencing:
• You should use and cite a range of academic and reliable sources.
• A comprehensive Harvard-style reference list must be included at the end of the
work.
Evidence to be submitted:
• 1 x Word file – 4500 words

 

Answer these questions
What is the purpose of the capital market? How do capital market securities differ from money market securities in their general characteristics?
Using the Gordon growth model, explain why the 2001 terrorist attacks and the Enron financial scandal caused stock prices to decline.
Describe the sequence of events in a financial crisis and explain why they can cause economic activity to decline.

Scenario
You are a former Navy officer and fighter pilot who is now the controller of a division of TransGlobal Airlines, which utilizes a fleet of corporate jets for charter at several airports in the southeast part of the United States. Your division’s private charter clients include several Fortune 500 companies in the region. The Chief Financial Officer (CFO) has informed you that the company is considering the acquisition of two smaller aviation firms in the Caribbean specializing in chartered flights for luxury vacations using light aircraft (60 passengers or less). The CFO has tasked you with assessing the organizational benefits of acquiring these aviation firms. The CFO intends to develop a new business plan for the organization if your analysis recommends moving forward with the acquisition.

After an initial assessment, the company has shortlisted two airlines they want to examine further for acquisition. To understand all aspects of the two airlines under consideration, you have visited each proposed site to assess their performance. The assessment includes creating and analyzing a balanced scorecard for each airline with all four components—financial, internal processes, customers/market, and learning and growth—that will impact the acquisition.
In this milestone, you will use the given information to create balanced scorecards for Company A and Company B.
Prompt
Use the Basic Balanced Scorecard Template to create a balanced scorecard for each company.

Specifically, you must address the following rubric criteria:
A. Use the data given in Company A Information and Company A Financials to create a balanced scorecard for Company A. The balanced scorecard should highlight key performance indicators, such as net profit, annual growth, and market share, and include the four components:
a. Financial: Complete the financial section of the balanced scorecard template, identifying two of the most relevant key performance indicators.
i. Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.
b. Internal Processes: Complete the internal processes section of the balanced scorecard template, identifying two of the most relevant key performance indicators.
i. Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.
c. Customers/Market: Complete the customers/market section of the balanced scorecard template, identifying two of the most relevant key performance indicators.
i. Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.
d. Learning and Growth: Complete the customers/market section of the balanced scorecard template, identifying two of the most relevant key performance indicators.
i. Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.
B. Use the data given in Company B Information and Company B Financials to create a balanced scorecard for Company B. The balanced scorecard should highlight key performance indicators, such as net profit, annual growth, and market share, and include the four components:
a. Financial: Complete the financial section of the balanced scorecard template, identifying two of the most relevant key performance indicators.
i. Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.
b. Internal Processes: Complete the internal processes section of the balanced scorecard template, identifying two of the most relevant key performance indicators.
i. Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.
c. Customers/Market: Complete the customers/market section of the balanced scorecard template, identifying two of the most relevant key performance indicators.
i. Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.
d. Learning and Growth: Complete the customers/market section of the balanced scorecard template, identifying two of the most relevant key performance indicators.
i. Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.
Guidelines for Submission:
Submit two completed Excel spreadsheets using the provided template.

Historical Financial Analysis Assignment paper must include:
1. Historical Financial Statements (Income Statement, Balance Sheet and Statement of Cash Flows) from the 3 most current years for the firm. These should be downloaded from the SEC website. The financial statements must include horizontal (shown between the years) and vertical analysis (shown to the right of the last year of historical data).
2. Ratio analysis for the ratios shown on Table 1 in the Guide to Case Analysis (CA) of the textbook:
a. Profitability ratios
b. Liquidity ratios
c. Leverage ratios
d. Activity ratios
e. Price-to-earnings ratio
f. The changes between years are included in the calculations.
3. Competitor ratios to compare with the ratios that were calculated in item 2. These should be included on the same tab as the ratio analysis for the firm.
4. Financial analysis should include comparisons to the firm’s main competitor as well as to the industry. How does the financial position of the firm influence the strategic direction of the company? This section should not be used to define what each ratio is rather it should clearly provide analysis based on the calculations as to the strategic choices and implications of the firm’s financial position. A compare and contrast with the main competitor should be included in this section of narrative.
Place the results of Case Study: Historical Financial Analysis, in the Case Study: Historical Financial Analysis submission link in Module 6: Week 6.
Options to Download SEC Financial Data into Excel Spreadsheets:
There are two ways to pull financial data in Excel format from the SEC site, depending on how recent the information is.

 

1. What impact does each of the following parameters have on the value of a call option?

(1) Current stock price

(2) Strike price

(3) Option’s term to maturity

(4) Risk-free rate

(5) Variability of the stock price g. What is put-call parity?