Module 1 discussion
This discussion question has two parts. Respond to both
parts to receive full credit for this assignment.
Part 1: What is a hostile takeover and what generally
happens to the stock price of the firm being acquired in a hostile takeover?
Part 2: How does a hostile takeover affect the company’s
stakeholders (shareholders, executives, employees, and society in general)? Is
it usually beneficial or detrimental to these stakeholders? Why?
Include some news that is less than a year old that
discusses an in-process or recently completed merger in your answer. Briefly
discuss the main issues in that merger and whom the merger is likely to benefit
or hurt.
The ProQuest database at the Saint Leo University Library
website can be a useful tool for completing this assignment. Click here for
instructions on accessing ProQuest.
Hint: One way to find merger news is to use the library’s
database for the Wall Street Journal and search for a recent article with the
word “merger” in the title of the article.
Module 2 discussion
The Law of One Price states that equivalent investment
opportunities trading in different competitive markets will have the same
price. Yet, one can find examples where that rule seems to be violated. It is a
well-known fact that Americans pay a much higher price for most prescription
drugs than people in most other countries. Also, the price (when adjusted for
exchange rates) for the same make and model of automobile varies greatly across
different countries. Furthermore, the price of a barrel of crude oil varies
between locations. For example, on October 12, 2012, the price for Brent crude
oil produced in Europe was $114.21 and the price for West Texas Intermediate
(WTI) crude oil produced in Texas was $91.86.
Do these three cases demonstrate that the Law of One Price
is false? Why or why not?
Module 3 discussion
Respond to all of the questions to receive full credit for
this assignment.
The capital budgeting process is important, but is it the
most important process that a firm undertakes. Why or why not? If you believe
there is a more important process, what is it and why do you think it is more
important?
Module 4 discussion
This discussion question has two parts. Please follow the
directions carefully to receive full credit for this assignment.
Every year, Fortune magazine publishes a list of the
“World’s Most Admired Companies” and Barron’s magazine publishes a
list of the “World’s Most Respected Companies.” Choose one company from
the top twenty on either of these lists from the most recent year available
that you also admire or respect and one company that you admire or respect
little.
Part 1: What criteria does the magazine use to evaluate
companies for the list? Do you agree with these criteria? Why or why not?
Part 2: Why do you admire the company you chose as a
favorite? Why do you not respect the company you chose as not admirable?
Both Barron’s and Fortune are available at the Saint Leo
University Library website via the ProQuest database. Keep in mind that the
most recent list available may be from last year. Click here for instructions
on accessing ProQuest.
Module 5 discussion
This discussion question has two parts. Respond to both
parts to receive full credit for this assignment.
Part 1: There is evidence that small stocks and value stocks
perform better over the long term than the market averages. What are some
logical reasons for this phenomenon?
Part 2: There is strong evidence that many investors suffer
from familiarity bias and overconfidence bias. Can you explain why these biases
might exist? Can you think of a situation in which you might make these
mistakes?
Include some news that is less than a year old that is
applicable to this discussion.
The ProQuest database at the Saint Leo University Library
website can be a useful tool for completing this assignment. Click here for
instructions on accessing ProQuest.
Module 6 discussion
This discussion question has two parts. Respond to both
parts to receive full credit for this assignment.
Part 1: Your friend is asking for advice. She is planning to
retire in 40 years and wants to know what investments she should choose. She
also wants to know if she should use an IRA or 401k or some other sort of
retirement vehicle. Please advise her.
Part 2: You have another friend that already has a sizable
amount saved for his retirement, but he wants to retire in 10 years. What type
of advice would you give him about what type of investment to make and as to
whether or not to use a retirement plan?
Include some news or advice from an article that is less
than a year old that is applicable to this discussion.
The ProQuest database at the Saint Leo University Library
website can be a useful tool for completing this assignment. Click here for
instructions on accessing ProQuest.
Module 7 discussion
This discussion question has two parts. Use Figure 15.7 in
your textbook which shows the net debt-to-enterprise value ratio for some
select industries to answer both parts of the question. Respond to both parts
to receive full credit for this assignment.
Part 1: Firms in the real estate investment trusts (REITs),
airlines, electric utilities, and paper products industries tend to have high
leverage. Explain why firms in these industries would prefer to have high
leverage.
Part 2: Firms in the computer hardware, footwear, apparel
and luxury goods, and data processing industries tend to have low leverage.
Explain why firms in these industries would prefer to have low leverage.
Include some news from an article that is less than a year
old that is applicable to this discussion.
The ProQuest database at the Saint Leo University Library
website can be a useful tool for completing this assignment. Click here for
instructions on accessing ProQuest.
Writing Assignment 1
Write a review of
a recent business article (less than 3 months old) with a financial component
to the story. The article should be from an academic journal or prominent
business publication (e.g., The Wall Street Journal, Barron’s, Fortune,
Investor’s Business Daily, etc.).
You should
succinctly summarize the articles important points. You should state why you
found the article important and/or interesting. Your review should be two to
four paragraphs.
If you use an
article from a web publication, it must have a publication date. Most articles
on the web have been there for years and the article is not recent just because
you downloaded it today. The ProQuest database at the Saint Leo University
Library website can be a useful tool for completing this assignment.
Turnitin.com
software will be used to ensure that submitted assignments are original works.
The Writing Assignment should be in an essay format using APA style.
Writing Assignment 2
Submit the Assignment to the Dropbox.
Write a review of
a recent business article (less than 3 months old) with a financial component
to the story. The article should be from an academic journal or prominent
business publication (e.g., The Wall Street Journal, Barron’s, Fortune,
Investor’s Business Daily, etc.).
You should
succinctly summarize the articles important points. You should state why you
found the article important and/or interesting. Your review should be two to
four paragraphs.
If you use an
article from a web publication, it must have a publication date. Most articles
on the web have been there for years and the article is not recent just because
you downloaded it today. The ProQuest database at the Saint Leo University
Library website can be a useful tool for completing this assignment.
Turnitin.com
software will be used to ensure that submitted assignments are original works.
The Writing Assignment should be in an essay format using APA style.
This assignment can be accessed in under Content in D2L by choosing:
MyFinanceLab Links
MyFinanceLab All Assignments
and then selecting this assignment.
The project assignment is designed to allow the student to pull together many of the concepts and
techniques discussed throughout the course. All questions in the spreadsheet project must be answered
in MyFinanceLab. The project must be submitted by Class Meeting 7.
In addition to answering the Spreadsheet Project questions in MyFinanceLab, students must submit a
spreadsheet displaying how the answers were calculated in the Learning Studio Dropbox. Each problem
should be answered on a clearly labeled separate worksheet of a spreadsheet. Answers should be
formatted in a manner that makes the answers clear and easy to read.
Each of the following Excel functions should be used to calculate at least one of the answers: FV, PV, PMT, RATE, NPER, NPV, AVERAGE, STDEV, and IRR. Calculating the answers elsewhere and typing or pasting them into the spreadsheet is unacceptable and will result in substantial grade deductions. The spreadsheet project submitted should be a single-file readable in Microsoft Excel.
