Project #4 -Understanding Financials - Team

Make an essay  Suppose you earned your first million in your 5 years of working and you decided to quit your job and start your own venture. How will you apply your learnings in Valuation Concepts and Methodologies in your business for its success?

1. Many fail to become entrepreneurs because they do not have entrepreneurial characteristics such as courage, patience and resilience. a. Mention at least 5 other characteristics that employers should have and give a brief explanation of these characteristics. 2. You have studied the venture life cycle (stages of life) namely development, startup, survival, rapid, early maturity stage. Of course, every life hasneeds financing different. You as entrepreneurs must be able to create value for your business. You must multiply your investment in the development stage until the business develops and is expected to go public through an Initial Public Offering (IPO) in the future. a. Mention the type of financing at each stage of the life cycle and be given aexplanation brief b. Mention major sources from point (a) above 3. In your Entrepreneurial Finance text book, the definition of a business plan is“written asis a written document that describes the proposed venture in terms of the product…

The P&G Pakistan is a big and mature company. Most of business graduates look to work in it. Company periodically hires internees for period of 6 months on trial basis. Suppose you are selected as an internee. The Financial has given you following data to test your finance skills.  Year Project A Project B Project C 0 (170,000) (18,000) 20,000 1 11,000 10,000 7,000 2 24,000 6,000 7,000 3 25,000 10,000 7,000 4 380,000 8,000 7,000   If you apply the IRR criterion, which project will you choose?

The P&G Pakistan is a big and mature company. Most of business graduates look to work in it. Company periodically hires internees for period of 6 months on trial basis. Suppose you are selected as an internee. The Financial has given you following data to test your finance skills. Year Project A Project B Project C 0 (170,000) (18,000) 20,000 1 11,000 10,000 7,000 2 24,000 6,000 7,000 3 25,000 10,000 7,000 4 380,000 8,000 7,000  Discount factor is 10% a) If you apply the IRR criterion, which project will you choose?                 b) If you apply profitability index criterion, which investment would you choose? Why?

The P&G Pakistan is a big and mature company. Most of business graduates look to work in it. Company periodically hires internees for period of 6 months on trial basis. Suppose you are selected as an internee. The Financial has given you following data to test your finance skills. (Marks 5) Year Project A Project B Project C 0 (170,000) (18,000) 20,000 1 11,000 10,000 7,000 2 24,000 6,000 7,000 3 25,000 10,000 7,000 4 380,000 8,000 7,000   If you apply the IRR criterion, which project will you choose? If you apply profitability index criterion, which investment would you choose? Why?

Incorporating Stakeholder Impacts into Business SustainabilityAnalyses and DecisionsJack’s Apps Company researches, develops, and sells traditional applications (i.e., apps) formiddle-aged mobile phone device users. In an attempt to tap into the large young adult appmarket to boost sales and advertising revenues, Jack’s CFO, Daniel, is considering hiringstudents from area high schools and universities to drastically increase the innovativeness ofthe company’s apps. Specifically, Daniel hopes that Jack’s new student employee pool will makeJack’s next wave of phone apps inventions popular with young adults by providing innovativeservices, such as exchanging payments for late-night food deliveries, arranging informal datingand other social gatherings, exchanging perspectives on different professors, and identifyingunusual debit card purchase patterns to assist with early fraud detection notification. Basedon cost estimates from Jack’s finance team and surveys of its new target customers…

MGMT2023 - Financial Management 1-UWI Open Campus   Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie's research has allowed her to narrow down on the…

Alex and Myra have lots of brilliant ideas on creating a new business but are lack of funds. You as a friend has found out that Malaysia has numerous venture capitalist that could assist their idea. Explain to your friends about venture capital and how they could assist in providing funds.(b) Explain the financial needs of a firm in different stages. Depicts their needs using the life cycle of a firm

Finding the WACC. Monica is the CFO of Cooking for Friends (CFF) and uses the pecking order hypothesis philosophy when she raises capital for company projects. Currently, she can borrow up to $450,000 from her bank at a rate of 7.75%, float a bond for $800,000 at a rate of 10%, or issue additional stock for $1,500,000 at a cost of 15%. What is the WACC for CFF if Monica chooses to invest A. $900,000 in new projects? B. $200,000 in new projects? C. $2,750,000 in new projects?

financial management ch 15 hw please show work. question 10 ​(EBIT-EPS analysis)  Three recent graduates of the computer science program at the University of Tennessee are forming a company that will write and distribute new application software for the iPhone. ​ Initially, the corporation will operate in the southern region of Tennessee, Georgia, North​ Carolina, and South Carolina. A small group of private investors in the​ Atlanta, Georgia area is interested in financing the startup company and two financing plans have been put forth for​ consideration:   • The first​ (Plan A) is an​ all-common-equity capital structure.   ​$2.5 million dollars would be raised by selling common stock at ​$20 per common share.   • Plan B would involve the use of financial leverage.   ​$1.1 million dollars would be raised by selling bonds with an effective interest rate of 10.6 percent​ (per annum), and the remaining ​$1.4 million would be raised by selling common stock at the ​$20 price per share.…

A) Good decision making in business goes a long way to ensure long term success andsurvival amidst the cutthroat competition that one faces. Do an analysis of the three mostimportant financing decisions that are taken – examine the main features of such decisionsand also evaluate the factors that affect the respective decisions.     4 B) Let’s say you are considering investing in a popcorn business. The popcorn machinecosts $1000. The Cash flows for 5 years are given below: CF0      -$1000CF1       $100CF2       $500CF3       $200CF4       $400CF5       $300 Given rate of interest at 9%, calculate the Net present Value of the above business.

You and a few of your classmates decided to become entrepreneurs. You came up with a great idea for a new mobile phone application that you think will make lots of money. Your business plan won second place in a local competition, and you are using the $10,000 prize to support yourselves as you start your company.   Required:   Identify the key decisions you need to make to be successful entrepreneurs   Your company will need to exchange information with various external parties. Identify the external parties, and specify the information received from and sent to each of them.

Company GoodHouse Inc. currently focuses on real estate business. As the CEO you plan to develop the business in a new field, Metaverse, for diversification and growth purpose. Wikipedia describes Metaverse as “a hypothesized iteration of the Internet, supporting persistent online 3-D virtual environments through conventional personal computing, as well as virtual and augmented reality headsets.”   To estimate the cost of equity for this project, you use the Pure-Play technique and collect the information on pure-play firms dealing with Metaverse, as shown in the following table   Company Name Equity beta Equity/(Equity + Debt) Tax rate V-Game 3.0 70% 25% Meta Horizon 4.0 80% 15%   Your project will be funded as follows: 20% by debt and 80% by equity. The tax rate is 20%. The risk-free rate is 3%. The average return on the S&P 500 index over the past five years is 8%. REQUIRED: Please calculate the equity beta of your Metaverse project using the…

Scenario. Two graduate students started an appliance business in an area where there is no competition. Their fundamental decision is how to organize the business. They anticipate super-profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. State three (3) of the main advantage they gain by selecting a corporate form of business now. Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.

Homework 11 LAST 3 QUESTIONS PLEASE Assume you have just been hired as a business manager of Arnie’s Artichokes a regional health food restaurant chain. The company’s EBIT was $80 million last year and is not expected to grow. The firm is currently financed with all equity and it has 10 million shares outstanding. When you took your corporate finance course, your instructor stated that most firm’s owners would be financially better off if the firms used some debt. When you suggested this to your new boss, he encouraged you to pursue the idea. As a first step, assume that you obtained from the firm’s investment banker the following estimated costs of debt for the firm at different capital structures:                                     % Financed With Debt            rd                                                                          0%                              ---                                                                     25                                 9.0%…

Homework 11   Assume you have just been hired as a business manager of Arnie’s Artichokes a regional health food restaurant chain. The company’s EBIT was $80 million last year and is not expected to grow. The firm is currently financed with all equity and it has 10 million shares outstanding. When you took your corporate finance course, your instructor stated that most firm’s owners would be financially better off if the firms used some debt. When you suggested this to your new boss, he encouraged you to pursue the idea. As a first step, assume that you obtained from the firm’s investment banker the following estimated costs of debt for the firm at different capital structures:                                     % Financed With Debt            rd                                                                          0%                              ---                                                                     25                                 9.0%…

Pls help with below homework. You graduate and decide you will start a consulting business out of your home. To perform the basic analysis needed for your field, you need to purchase testing equipment. The seller has 2 prices, one for incorporated businesses ($25,000) and one for individuals ($20,000). The salvage value of this equipment after 4 years is predicted to be $10, 000 in both cases. You and your partner are debating whether it is better to pay the higher purchase price and be able to depreciate the asset at a CCA rate of 30%, with the corporate tax rate of 40% OR to just keep them as a personal asset, with a sales tax rate of 10% at the time of sale. If we ignore the big picture arguments to be made here, what are the tax implications involved with each purchase/ sale option?

(Learning Objective 5: Differentiate financing with debt vs. equity) OrchardMedical Goods is embarking on a massive expansion. Assume the plans call for opening20 new stores during the next two years. Each store is scheduled to be 30% larger than thecompany’s existing locations, offering more items of inventory and with more elaborate displays. Management estimates that company operations will provide $1.0 million of the cashneeded for expansion. Orchard Medical must raise the remaining $4.75 million from outsiders.The board of directors is considering obtaining the $4.75 million either by borrowing at 4%or by issuing an additional 200,000 shares of common stock. This year the company has earned$5 million before interest and taxes and has 200,000 shares of $1-par common stock outstanding. The market price of the company’s stock is $23.75 per share. Assume that income beforeinterest and taxes is expected to grow by 30% each year for the next two years. The company’smarginal income tax…

Net Promoter Score (NPS) Upon graduation, you and a friend established a computerconsultancy business. Your business has generally been successful, but you and your colleaguewish to expand the business significantly over the next 3 years. You have always assumed that theservice your firm rendered to clients was of sterling quality. However, up to this point you havenot attempted to measure customer satisfaction. Recently, you prepared and sent to your clients acustomer-satisfaction survey that, among other items, asked the following question: “How likely isit that you would recommend our services to a friend or business associate?” Customers respondedto this question using a 10-point scale, with 10 = “Extremely Likely,” 5 = “Neutral/Uncertain,” and1 = “Extremely Unlikely.” You received 290 responses to this question, which were as follows:[LO 17-5][LO 17-6]Score No. of Responses1 62 83 94 215 236 307 168 729 7010 35Final PDF to printerblo17029_ch17_713-774.indd 769 02/19/18 09:10…