Capital budgeting and capital structure

Funds for Capital Budgeting Capital structure and capital budgeting must be aligned to ensure sufficient cash to undertake capital investment. Failure to match these cash flows can spell disaster. The Modigliani and Miller approach to capital theory suggests firm valuation is irrelevant to the firm’s capital structure. Required: Research arguments for and against M & M’s theory. Questions: Should NPV projects be evaluated based on project merits and independent of the financing used to fund them? Why? Does your research of M & M theory indicate this theory is accurate and true or alternatively has flaws. Why? Independent of M & M theory, identify advantages and disadvantages of debt and equity financing. Required: Include an Introduction, subtopics of each area above, and a Conclusion. Use APA formatting and include a title and reference page. A minimum of 5 external sources is required. See attached.

Appraise the Value of Debt and Equity Securities

The goal of financial management is to maximize shareholder wealth. Create a PowerPoint presentation discussing the relationship between this goal and the goal of maximizing the firm’s profits and how the use of financial markets helps firms to build value within an organization. Your presentation should critically assess the value of debt, the time value of money, and how debt can be leveraged to help organizations grow. You are expected to find at least one additional scholarly article where the author discusses the use of stock or equity securities to help a company grow.
If you choose, you may select a company you research and use it as a specific example in your presentation. You should expect to cover the type of debt the company incurred, the purpose of the debt, or how they issued or did a buyback of stock or securities to control debt and cash value in the company. Your presentation should include citations from at least five sources, with at least one of your sources being added to this week’s reading or video sources. You may find annual reports for publicly-traded companies posted at AnnualReports.com (2018).
Length: Your recorded PowerPoint presentation should be 9 slides long, not including a title slide and reference slide. Include at least 115 words for each slide in the notes section
References: Please include five resources with your submission. While you use all 4 of the attached sources, you are expected to provide one additional resource you research on your own.
Annual Reports. (2018) 65,762 annual reports from 5,445 companies worldwide help you make the right investment decision.
Your presentation should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.

Writer’s Choice

1. Find online (at sec.gov) the annual 10-K report of Netflix (NFLX) for fiscal year 2021 (filed in January 2022). Answer the following questions:
a. How much cash did Netflix have at the end of the fiscal year 2021?
b. What were Netflix’s total liabilities in 2021?
c. How much debt did Netflix have in 2021?
d. What was the book value of Netflix’s equity in 2021?
e. What was the net working capital of Netflix in 2021?
f. What is your favorite streaming television show from Netflix or a similar streaming service?
2. Using the balance sheets of Netflix for 2020 and 2021, calculate the following ratios: a. Current ratio
b. Quick ratio
c. Debt-to-Capital ratio
d. Assets-to-Equity e. Debt-to-Equity
3. Find the income statement of Netflix for 2021 and calculate the following ratios: a. Return on Assets
b. Return on Equity
c. Total Asset Turnover
d. Return on Invested Capital
e. Gross Margin (check definition of gross profit)
4. In March 2022, Walmart (WMT) had a book value of equity of $83.3 billion, 2.8 billion shares outstanding, and a market price of $142.07 per share. Walmart also had cash of $14.8 billion, and total debt of $59.3 billion. Two years earlier, in January 2020, Walmart had a book value of equity of $74.7 billion, 2.9 billion shares outstanding with a market price of $111.35 per share, cash of $9.5 billion, and total debt of $74.7 billion. Over this period, what was the change in Walmart’s:
a. Market capitalization? b. Market-to-book ratio? c. Enterprise value?
5. In early 2020, Abercrombie & Fitch (ANF) had a book equity of $1,059 million, a price per share of $11.30, and 65.8 million shares outstanding. At the same time, The Gap (GPS) had a book equity of $3,316 million, a share price of $12.07, and 378.0 million shares outstanding.
a. What is the market-to-book ratio of each of these clothing retailers? b. What conclusions can you draw by comparing the two ratios?
6. Vaccine Systems has 6.5 billion shares outstanding and a share price of $18. Vaccine is considering developing a new networking product in house at a cost of $500 million. Alternatively, Vaccine can acquire a firm that already has the technology for $900 million worth (at the current price) of Vaccine stock. Suppose that absent the expense of the new technology, Vaccine will have Earnings per Share of $0.80.
a. Suppose Vaccine develops the product in house. What impact would the development cost have on Vaccine’s EPS? Assume all costs are incurred this year and are treated as an R&D expense, Vaccine’s tax rate is 35%, and the number of shares outstanding is unchanged.
b. Suppose Vaccine does not develop the product in house but instead acquires the technology. What effect would the acquisition have on Vaccine’s EPS this year? (Note that acquisition expenses do not appear directly on the income statement. Assume the firm was acquired at the start of the year and has no revenues or expenses of its own, so that the only effect on EPS is due to the change in the number of shares outstanding.)
c. Which method of acquiring the technology has a smaller impact on earnings? Is this method cheaper? Explain.
7. Use Yahoo Finance to answer the following questions with information on Amazon (AMZN) stock: a. What was its closing price on September 1, 2022 (see Historical Data)?
b. What was the company’s EPS for the last full reported year?
c. What is the company’s trailing P/E ratio using the above information?
d. What is the average (consensus) analyst EPS estimate for the current year (see Analysis)? e. What is the company’s forward P/E ratio based on your answer to question d)?
8. Nokela Industries purchases a $40 million cyclo-converter. The cyclo-converter will be depreciated by $10 million per year over four years, starting this year. Suppose Nokela’s tax rate is 40%.
a. What impact will the cost of the purchase have on earnings for each of the next four years?
b. What impact will the cost of the purchase have on the firm’s cash flow for the next four years?

Week 6 Assignment

-Chapter 14:Answer Only Questions 14-3 through 14-5
-Chapter 15: Answer Only Questions 15-1 through 15-5
Business School Assignment Instructions
The requirements below must be met for your paper to be accepted and graded:
Write between 500-750 words (approximately 2 – 4 pages) using Microsoft Word in APA style.
Use font size 12 and 1” margins.
Include cover page and reference page.
At least 80% of your paper must be original content/writing.
No more than 20% of your content/information may come from references.
Use at least three references from outside the course material; one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.
References must come from sources such as scholarly journals found in EBSCOhost or on Google Scholar, government websites and publications, reputable news media (e.g. CNN , The Wall Street Journal, The New York Times) websites and publications, etc. Sources such as Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.

Problem solving

Using information from Uber’s public filings and available market data, prepare a forecast of Uber’s net interest (income less expense) for third (Jul – Sep) and fourth quarter (Octl – Dec) of 2022. Assume that all cash is invested in 6-month Treasury bills and that all interest expense is generated by current outstanding debt. Please provide your model in Excel format.
Additionally, please prepare three slides that address the following:
● Summary of your forecast and outline of your assumptions
● How should Uber position cash given current interest rate environment? Why?
● What motivates you?

3170 MOD 5 POST

Gapenski, L. C. (2019). Fundamentals of healthcare finance (3rd ed.). Chicago, IL: Health Administration Press. ISBN: 9781567939750.
Chapter 9: Capital Investment Decision Basics
Chapter 10: Project Cash Flow Estimation and Risk Analysis
Your book this week discussed capital investment decisions. For your post this week, I want you to pick one of the first 5 project classification categories, and discuss how you would present a hospital project of your choice. Be sure it is clear what category that you are explaining. Talk about the cost, why you need it, payback period, and expected outcomes of the project.
Write a minimum of 300 and a maximum of 350 words.
Note: Cite paraphrased information obtained from another source but do not use quotes.
APA 7 formatting
US-Bases Sources

reflection paper

The reflection essay should contain two segments.
Part 1 – Read the “Seven Reasons Why This Class May Not Be for You” document and reflect on whether each of these seven reasons apply to you or not. If it doesn’t apply, explain why it is the case. If a reason somewhat applies, discuss what you plan to do to address the issue. You can include a general discussion of your qualifications and expectations for the course in your memo, but you need to address each of the seven reasons.
Part 2 – Read the “Joe Swanson” mini-case and answer the two reflection questions at the end.
Style: 11 font size; 1.5 spacing

3170 mod 5 hw

Loan Amortization and Time Value of Money calculations help managers evaluate the best use of the funds for which they have access. It is common for a manger to have many options for where to spend the money within the organization. A manager often needs to make decisions such as delaying an expense in one area to the next budget year to pay for another expense somewhere else in this year.
To complete this assignment, I have included the Module_5_Worksheet in excel for you to download. There are 2 tabs at the bottom for the 2 different question sets.
Gapenski, L. (2018). Fundamentals of healthcare finance. (3rd ed.). Health Administration Press. • ISBN: 9781567939750.
No copied, quoted, or plagiarized material.
US-based sources only
APA 7 format

Learning Journal Entry 1

Learning Journal Entry
Reflect on what you have learned so far in the first two modules:
Module 1 – The Balance Sheet and Income Statements
Module 2 – Cash Flow Statements
For your first learning journal entry, try to synthesize what you have learned into a short (min. 30-second, max. 1-minute) “elevator pitch”-type presentation that explains what financial statements are and how they can help an organization. You will record yourself giving this presentation using the Video Note feature.
• Your reflection should be more personal and informal in tone than is typical for other assignments, and you may approach the topic(s) in a way that is most meaningful to you in terms of your own learning.
The goal of this exercise is for you to obtain a deeper understanding of the course material by thinking about both how it can be practically applied in your own context and how it connects to wider questions, challenges, and processes that are encountered in the business world and beyond.