Module 1 Discussion |
Instructor to add discussion question.
Maximizing Profit vs. Mazimizing Shareholder Wealth |
1. Should a company emphasize profit or shareholder wealth? Or should both be emphasized? Explain.
2. Should ethics and social responsibility play a part in maximizing profit or shareholder wealth?
Sarbanes-Oxley |
1. Investigate some of the Sarbanes-Oxley (SOX) Act’s provisions for companies from the Internet, periodicals, or academic journals. Select one of these provisions, briefly describe it, and indicate why you think (or don’t think) financial statements will be more trustworthy if company financial executives implement this provision of SOX.
Topics
Bonds |
The Lion Corp.(LC) issues a 30 year callable bond which is also convertible to 50 shares of LC common stock. Explain why LC would issue a bond with these features as opposed to just issuing a the bond without such options. As a bondholder, would you necessarily convert these bonds when the price of the stock reaches $22? Why or why not? Feel free to give examples in your response
Module 5 Discussion |
Financial executives insist that there should be no separation between an individual’s personal ethics and his or her business ethics. “It’s a jungle out there” and “business is business” should not be excuses for engaging in unethical behavior. Many firms have ethics codes which are based on economically rational concepts such as integrity and trustworthiness, which guide the decision maker in attempting to increase shareholder wealth. Of course, some employees sometimes choose to not comply with their firm’s ethics code.
How do ethics codes apply to project selection and capital budgeting? What are the potential risks to a company of unethical behaviors by employees? What are potential risks to the public and to stakeholders? Please explain how Saint Leo’s core value of integrity is reflected in your answer.
Capital Budgeting |
According to research, NPV and IRR are the most used methods of determining capital budgeting decisions. Discuss the positive and negative aspects of these and any other methods you deem relevant. Finally, state the method you would use as a financial manager and explain why.
Topics
| Topic |
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| Module 7 Discussion |
 Dividends |
Dividends |
1. Gertrude and Gus are retired and have a substantial amount of savings in CDs. With rates near zero they are looking for a higher return and find a large company with a long history of paying dividends (30 years). The dividend yield is a whopping 5.4%. The company maintains a constant payout ratio of 80%. They are considering putting a portion of their savings in this stock and want your expert financial advice. Please provide Gert and Gus the positives and negatives of such a purchase.
Module 8 Discussion |
Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad? If so, how might you explain the firm’s position to shareholders asking why the company does not pay bribes when its foreign competitors in various nations clearly do so? Please explain how Saint Leo’s core value of responsible stewardship is reflected in your answer.
