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## Three Basic Forms Of Business Ownership

Order ID53563633773 TypeEssay Writer LevelMasters StyleAPA Sources/References4 Perfect Number of Pages to Order5-10 Pages

Description/Paper InstructionsThree Basic Forms Of Business Ownership

ASSESSMENT 1

Respond to the following five questions. Write your responses in a Word document, and number them 1–5.

- Define the terms financeand financial management. What are the major sub-areas of finance?
- Identify and define the three basic forms of business ownership. Describe the advantages and disadvantages of each.
- Define the terms agency relationshipand agency problem. Explain three different approaches to minimizing the agency problem.
- Explain why ethical behavior is so important in the field of finance.
- Explain the concept of shareholder wealth maximization. Is there a conflict between the goal of shareholder wealth maximization and the financial manager’s need to act in an ethical manner? Why or why not?
ASSESSMENT 2

Respond to the following five questions. Write your responses in a Word document, and number them 1–5.

- Categorize each of the following transactions as taking place in either the primary or secondary market:
. Supercorp issues $180 million of new common stock.

. HiTech, Inc. issues $30 million of common stock in an IPO.

. Megaorg sells $10 million of HiTech preferred stock from its marketable securities portfolio.

. The XYA Fund buys $220 million of previously issued Supercorp bonds.

. A. B. Corporation sells $15 million of XYZ common stock.

- Identify whether the following financial instruments are capital market securities or money market securities:
. U.S. Treasury bills.

. U.S. Treasury notes.

. U.S. Treasury bonds.

. Mortgages.

. Federal funds.

. Negotiable certificates of deposit.

. Common stock.

. State and government bonds.

. Corporate bonds.

- Identify the different types of financial institutions. What are the main services each of these financial institutions offers?
- Define the six factors that determine the nominal interest rate on a security.
- Define the concept of term structure of interest rates. What are three theories that explain the future yield curve of interest rates?
Use references to support your answers as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

ASSESSMENT 3

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–3.

- Explain the concept of cash flow in corporate finance.
- Explain how present value and future values are related.
- Explain how present values are affected by changes in interest rates.
Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Problems

In either a Word document or Excel spreadsheet, complete the following problems.

- You may solve the problems algebraically, or you may use a financial calculator or an Excel spreadsheet.
- If you choose to solve the problems algebraically, be sure to show your computations.
- If you use a financial calculator, show your input values.
- If you use an Excel spreadsheet, show your input values and formulas.
In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

Unless otherwise directed, assume annual compounding periods in the computational problems.

- If you deposited $250 in your savings account today, and the bank pays 4 percent interest per year, how much would you have in your savings account after 9 years?
. Recalculate the account balance using a 6 percent interest rate and a 7 percent interest rate.

- A $450 deposit earns 6 percent interest in the first year, 3 percent interest in the second year, and 7 percent interest in the third year. What is the future value at the end of the third year?
- What is the annual rate of return for an $8,000 investment if in five years it grows to $12,500?
. Assuming the growth occurred in six years and then eight years, recalculate the rate of return for these two scenarios.

ASSESSMENT 4

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–4.

- Explain whether you would you rather have a savings account that paid interest compounded on a monthly basis or compounded on an annual basis? Why?
- Describe what an amortization schedule is and its uses. Explain the purpose of an amortization schedule.
- Interest on a home mortgage is tax deductible. Explain why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years.
- Explain the difference between an ordinary annuity and an annuity due.
Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Problems

In either a Word document or Excel spreadsheet, complete the following problems.

- You may solve the problems algebraically, or you may use a financial calculator or an Excel spreadsheet.
- If you choose to solve the problems algebraically, be sure to show your computations.
- If you use a financial calculator, show your input values.
- If you use an Excel spreadsheet, show your input values and formulas.
In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

- If interest rates are 8 percent, what is the future value of a $400 annuity payment over six years? Unless otherwise directed, assume annual compounding periods.
. Recalculate the future value at 6 percent interest and 9 percent interest.

- If interest rates are 5 percent, what is the present value of a $900 annuity payment over three years? Unless otherwise directed, assume annual compounding periods.
. Recalculate the present value at 10 percent interest and 13 percent interest.

- What is the present value of a series of $1150 payments made every year for 14 years when the discount rate is 9 percent?
. Recalculate the present value using discount rate of 11 percent and 12 percent.

ASSESSMENT 5

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–3.

- Describe the rights and advantages belonging to shareholders
- Explain the differences between the Standard and Poor’s 500 Index and the Dow Jones Industrial Average. Which is a better measure of stock market performance? Why?
- Describe the differences between common stock and preferred stock.
Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Problems

In either a Word document or Excel spreadsheet, complete the following problems.

- You may solve the problems algebraically, or you may use a financial calculator or an Excel spreadsheet.
- If you choose to solve the problems algebraically, be sure to show your computations.
- If you use a financial calculator, show your input values.
- If you use an Excel spreadsheet, show your input values and formulas.
In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

Compute the following:

- Imagine that on June 4, the Dow Jones Industrial Average closed at 13,598.14, which was up 148.86 points from the previous day’s close of 13,449.28. Calculate the return, in percent to four decimal places, of the stock market for June 4.
- The cost per stock at a brokerage firm is $0.10. Calculate how much money you would need to buy 150 shares of HiTech, Inc., which trades at $18.22.
- HiTech, Inc.’s growth for the future is forecasted to be a constant 10 percent. HiTech’s next dividend is expected to be $1.18. Calculate the value of HiTech stock when the required return is 12 percent.
- Preferred stock from HiTech, Inc. pays $1.20 in annual dividend. Calculate the value of the stock if the required return on the preferred stock is 4.5 percent.
- HiTech, Inc. has earnings per share of $1.82 and a P/E ratio of 31.54. Calculate the stock price.
ASSESSMENT 6

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–4.

- Explain what a call provision enables bond issuers to do. Why would bond issuers exercise a call provision?
- Define a discount bond and a premium bond. Provide examples of each.
- Describe the relationship between interest rates and bond prices.
- Describe the differences between a coupon bond and a zero coupon bond.
Problems

In either a Word document or Excel spreadsheet, complete the following problems.

- If you choose to solve the problems algebraically, be sure to show your computations.
- If you use a financial calculator, show your input values.
- If you use an Excel spreadsheet, show your input values and formulas.
Compute the following:

- Assuming semi-annual compounding, what is the price of a zero coupon bond that matures in 3 years if the market interest rate is 5.5 percent? Assume par value is $1000.
- Using semi-annual compounding, what is the price of a 5 percent coupon bond with 10 years left to maturity and a market interest rate of 7.2 percent? Assume that interest payments are paid semi-annually and that par value is $1000.
- Using semi-annual compounding, what is the yield to maturity on a 4.65 percent coupon bond with 18 years left to maturity that is offered for sale at $1,025.95? Assume par value is $1000.
ASSESSMENT 7

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–3.

- Define risk, and explain how it is measured.
- Identify a source of firm-specific risk. What is the source of market risk?
- Explain what the coefficient of variation measures.
Problems

In either a Word document or Excel spreadsheet, complete the following problems.

- If you choose to solve the problems algebraically, be sure to show your computations.
- If you use a financial calculator, show your input values.
- If you use an Excel spreadsheet, show your input values and formulas.

- Two years ago, Conglomco stock ended at $73.02 per share. Last year, the stock paid a $0.34 per share dividend. Conglomco stock ended last year at $77.24. If you owned 200 shares of Conglomco stock, what were your dollar return and percent return last year?
- Calculate the coefficient of variation for the following three stocks. Then rank them by their level of total risk, from highest to lowest:
. Conglomco has an average return of 11 percent and standard deviation of 24 percent.

. Supercorp has an average return of 16 percent and standard deviation of 37 percent.

. Megaorg has an average return of 10 percent and standard deviation of 29 percent.

- Year-to-date, Conglomco has earned a −1.64 percent return, Supercorp has earned a 5.69 percent return, and Megaorg has earned a 0.23 percent return. If your portfolio is made up of 40 percent Conglomco stock, 30 percent Supercorp stock, and 30 percent Megaorg stock, what is your portfolio return?
ASSESSMENT 8

Answer the following questions and complete the following problems:

Questions

In a Word document, respond to the following. Number your responses 1–2.

- Explain why expected return is considered forward-looking. What challenges arise in using expected return?
- Explain how differences in allocations between the risk-free security and the market portfolio can determine the level of market risk.
Problems

In either a Word document or Excel spreadsheet, complete the following problems.

- If you choose to solve the problems algebraically, be sure to show your computations.
- If you use a financial calculator, show your input values.
- If you use an Excel spreadsheet, show your input values and formulas.

- Based on the probability and percentage of return for the three economic states in the table below, compute the expected return.

Economic State Probability Percentage of Return Fast Growth 0.10 60 Slow Growth 0.50 30 Recession 0.40 -23

- If the risk-free rate is 7 percent and the risk premium is 4 percent, what is the required return?
- Suppose that the average annual return on the Standard and Poor’s 500 Index from 1969 to 2005 was 14.8 percent. The average annual T-bill yield during the same period was 5.6 percent. What was the market risk premium during these 10 years?
- Conglomco has a beta of 0.32. If the market return is expected to be 12 percent and the risk-free rate is 5 percent, what is Conglomco’s required return? Use the capital asset pricing model (CAPM) to calculate Conglomco’s required return.
- Calculate the beta of a portfolio that includes the following stocks:
. Conglomco stock, which has a beta of 3.9 and comprises 35 percent of the portfolio.

. Supercorp stock, which has a beta of 1.7 and comprises 25 percent of the portfolio.

. Megaorg stock, which has a beta of 0.3 and comprises 40 percent of the portfolio.

Estimating Risk and Return Scoring Guide

ASSESSMENT 9

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–4.

- Explain the net present value (NPV) method for determining a capital budgeting project’s desirability. What is the acceptance benchmark when using NPV?
- Explain the payback period statistic. What is the acceptance benchmark when using the payback period statistic?
- Describe the internal rate of return (IRR) as a method for deciding the desirability of a capital budgeting project. What is the acceptance benchmark when using IRR?
- Describe the modified internal rate of return (MIRR) as a method for deciding the desirability of a capital budgeting project. What are MIRR’s strengths and weaknesses?
Problems

In either a Word document or Excel spreadsheet, complete the following problems.

- If you choose to solve the problems algebraically, be sure to show your computations.
- If you use a financial calculator, show your input values.
- If you use an Excel spreadsheet, show your input values and formulas.

- Based on the cash flows shown in the chart below, compute the NPV for Project Huron. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

Project Huron Time 0 1 2 3 4 Cash Flow $12,000 $2,360 $4,390 $1,520 $3,300

- Based on the cash flows shown in the chart below, compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

Project Erie Time 0 1 2 3 4 5 Cash Flow $12,000 $2,360 $4,390 $1,520 $980 $1,250

RUBRIC

QUALITY OF RESPONSENO RESPONSEPOOR / UNSATISFACTORYSATISFACTORYGOODEXCELLENTC ontent (worth a maximum of 50% of the total points)Zero points: Student failed to submit the final paper.20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking.30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking.40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete.50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing.Use of Sources (worth a maximum of 20% of the total points).Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper.5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6^{th}Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper.10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6^{th}Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources.15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6^{th}Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources.20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6^{th}Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment.Grammar (worth maximum of 20% of total points)Zero points: Student failed to submit the final paper.5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage.20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free.Structure of the Paper (worth 10% of total points)Zero points: Student failed to submit the final paper.3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6^{th}edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6^{th}edition requirements whatsoever.5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6^{th}edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment.10 points: Student provides a high-caliber, formatted paper. This includes an APA 6^{th}edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.## GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER

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