Category: Finance

Please see instructions attached

Submit your responses to the following assignment in a Word document or Excel spreadsheet. Be sure to follow APA 7th edition guidelines (typed and double-spaced, with cover page, relevant external sources cited both in-text and on a reference page). Please answer the questions completely (do not recopy questions in your work).

Complete the following:

Chapter 8: QUESTIONS AND PROBLEMS

Questions 32, 33

Chapter 9: QUESTIONS AND PROBLEMS

Questions 23, 26

i have linked what I need done.

Each reply must be at least 250 words.

Do not just say good job or I learned something from your post. Replies are not a cheering

exercise. Instead, your replies must be substantial, reflecting what you learned from reading the

post, offering an extension, or correcting a mistake. Use what you learned in researching for your

post (or knowledge gained from other classes or personal experience) to either supplement or

critique the post you are writing about. You do not have to include any references for your

replies.

Try to include ideas, information, etc. from the assigned readings or other material that you find in your reading and research — being careful to provide information about your sources. In what ways is obesity similar to (or dissimilar to) smoking from a public policy (market failure/externality/public good) perspective? What arguments or evidence would you use to support (or argue against) the use of taxes or subsidies to reduce obesity?

Section Summary

Section I introduces finance as a real way of thinking about decisions rather than an abstract or intimidating technical field. Across Chapters 13, Schill addresses misconceptions about finance, establishes a shared financial language, and defines economic value creation and sustainability as the main goals of financial decision-making.

Chapter 1 focuses on demystifying finance and the culture of finance people. Through the fly-fishing metaphor, Schill explains that finance may appear foreign and intimidating at first, but it becomes accessible once a few fundamental principles are understood. The Camp Big Fish example further illustrates how individuals with little prior experience can quickly gain confidence when taught core concepts. The chapter debunks seven common misconceptions, particularly the idea that finance is merely about buying low and selling high or benefiting a narrow group. Instead, finance is shown to be about creating economic value for society by directing resources toward productive uses. The Chapter 1 Concept Wrap-Up reinforces that finance affects everyone, relies more on judgment than complex math, and that growth is only beneficial when it creates value rather than consumes resources.

Chapter 2 introduces the basic language of finance, emphasizing that finance is primarily conceptual rather than numerical. Understanding key terms allows managers to communicate effectively with investors and other stakeholders. Stakeholders are all parties affected by a firms decisions, while corporate governance refers to the structures that determine who makes decisions and how accountability is maintained. The distinction between debt holders and equity holders highlights differences in risk, return, and control: debt holders receive fixed payments and gain control only in default, whereas equity holders are residual claimants with voting rights. The Chapter 2 Concept Wrap-Up stresses that financial language enables better coordination and decision-making, and that important concepts often have specialized vocabulary.

Chapter 3 establishes economic value creation as the foundational theme of finance. Value is created when the expected long-term benefits of a decision exceed the resources expended, including opportunity cost. Using examples such as Camp Big Fish and First Aid Care Centers, the author shows that economic sustainability mirrors natural sustainability: organizations must generate sufficient inflows to replace consumed resources, endure over time, operate efficiently relative to alternatives, and prioritize long-term outcomes over short-term gains. The Concept Wrap-Up emphasizes that accounting profit alone is insufficient and that managers must focus on future cash flows, risk, and sustainability.

Insight and Integration:

Taken together, Chapters 13 frame finance as a stewardship mindset. Managers must think like long-term investors, using financial language and judgment to allocate scarce resources responsibly. Finance matters because it provides principles that help ensure economic activity creates value rather than waste, benefiting both firms and society.

Review Questions (End of Chapter 3)

Question 1: Sustainability defines economic value creation by requiring that present decisions do not reduce the resources available to future generations. A decision creates value only if it generates more resources than it consumes over time. The author emphasizes that true value creation leaves future resources greater than todays, while an alternative view highlights the need to account for long-term external costs when evaluating value.

Question 2: Economic value creation is an effective decision metric because it distinguishes activities that improve overall welfare from those that drain resources. Unlike zero-sum thinking, it focuses on expanding the total economic pie. It also serves as a unifying objective for managers and stakeholders by ensuring the organization can sustain itself over time. (This is what it needs to be over)

The Cost of Capital for Master Tools

You have recently been hired by Master Tools (MT) in its relatively new treasury management department. MT was founded eight years ago by Martha Masters. Martha found a method to streamline the manufacturing process, resulting in a cheaper tool. The tools manufactured by MT are designed for the mass market and sold primarily through retail. The company is privately owned by Martha and her family, and it had sales of $97 million last year.

MT primarily sells to do-it-yourself (DIY) customers who use the tools for personal projects, although it does sell through various online marketplaces. As a result, the companys sales are price sensitive. When the company had sufficient capital, it would expand production. Relatively little formal analysis has been used in its capital budgeting process. Martha has just read about capital budgeting techniques and has come to you for help. For starters, the company has never attempted to determine its cost of capital, and Martha would like you to perform the analysis. Because the company is privately owned, it is difficult to determine the cost of equity for the company.

Martha wants you to use the pure play approach to estimate the cost of capital for MT, and she has chosen Snap-On Incorporated as a representative company. The following questions will lead you through the steps to calculate this estimate.

Assignment Directions

1. Most publicly traded corporations are required to submit 10-Q (quarterly) and 10-K (annual) reports to the SEC detailing their financial operations over the previous quarter or year, respectively. These corporate filings are available on the . Go to the SEC website and enter SNA for Snap-On in the Search for Company Filings link. Find the most recent 10-Q or 10-K and download the form. Look on the balance sheet to find the book value of debt and the book value of equity. If you look further down the report, you should find a section titled either Long-Term Debt or Long-Term Debt and Interest Rate Risk Management that will list a breakdown of Snap-Ons long-term debt. Discuss and analyze the items that you would find under long-term debt.
2. To estimate the cost of equity for Snap-On, go to finance.yahoo.com and enter the ticker symbol SNA. Follow the various links to find answers to the following questions: What is the most recent stock price listed for Snap-On? What is the market value of equity, or market capitalization? How many shares of stock does Snap-On have outstanding? What is the beta for Snap-On? Now go back to finance.yahoo.com and follow the Bonds link. What is the yield on three-month Treasury bills? Using a 7 percent market risk premium, what is the cost of equity for Snap-On using the CAPM? Discuss and analyze your answer.
3. Go to and find the list of competitors in the industry. Find the beta for each of these competitors, and then calculate the industry average beta. Using the industry average beta, what is the cost of equity? Discuss and analyze whether you use the beta for Snap-On or the beta for the industry in this case?
4. You now need to calculate the cost of debt for Snap-On. Go to , enter Snap-On as the company, and find the yield to maturity for each of Snap-Ons bonds. What is the weighted average cost of debt for Snap-On using the book value weights and the market value weights? Discuss and analyze if it makes a difference in this case if you use book value weights or market value weights?
5. You now have all the necessary information to calculate the weighted average cost of capital for Snap-On. Calculate the weighted average cost of capital for Snap-On using book value weights and market value weights, assuming Snap-On has a 21 percent tax rate. Discuss and analyze which cost of capital number is more relevant and why?
6. You used Snap-On as a representative company to estimate the cost of capital for MT. What are some of the potential problems with this approach in this situation? Discuss and analyze what improvements you might suggest.

In this Discussion, please reflect on the week’s topics. Choose a topic from Chapters 18, 19, or 21.

Your research should provide a measure of information about the topics significance to the current business climate. At least two reference sources should be used to support a substantive and detailed response. Make sure to give credit to your sources, though formal citations are not required. Please be thorough and respectful on the discussion board. Check your grammar, punctuation and spelling before posting.

Reference sources must be limited to the Wall Street Journal, Financial Times, New York Times, Barrons, Investors Business Daily, The Economist, or an academic journal article from a respected accounting or finance journal.

See attached for the topic

Instructions

In this assignment, please create two case studies in PowerPoint using the scenarios below. For both cases, you should assume that you work as a loan officer, and you will be presenting your thoughts to the credit committee at your institution.

John and Jane Doe

John and Jane Doe are both 40 years old with two children, ages 12 and 10. John is an assistant principal making $80,000 per year. He has been in the same school district for over 10 years, working in different positions. Jane works part-time, making around $14,000 per year. The couple has about $25,000 in equity on their current home and $30,000 in savings. They came to your office seeking a pre-approval for a new mortgage.

Create an initial 10- to 12-slide presentation for your credit committee describing the couple’s creditworthiness and your recommendation for pre-approval/denial. If you do pre-approve, include the maximum amount you would recommend.

Additionally, create 35 slides outlining a new credit card you would like to offer to John and Jane Doe. Include your rationale and the limit you are suggesting.

Overview

This is the second milestone leading up to your final project. In Final Project Milestone One, you introduced the business you chose. You examined its financial statements and financial health and reported its financial values. In Final Project Milestone Two, you will make calculations based on the latest information found using Mergent Market Atlas about your company and compare the totals with those of one year ago. You will then use these figures to decide whether short-term financing is needed to improve your companys financial health. Before moving forward, review your instructors feedback for Milestone One and incorporate any suggestions.

Scenario

The CFO of your company has asked for your support in preparing a report for the businesss board of directors. Many of the board members are new, and some of them have little background in finance. With this in mind, you will need to write a report that all board members can easily understand.

Directions

For the company you chose for your final project, open the following documents:

• The balance sheet, income statement, and cash flow statement from the latest fiscal quarter (from Mergent Market Atlas)
• The Ratios Most Recent Fiscal Qtr worksheet in the Final Project Financial Formulas workbook (linked in the What to Submit section).
• example, if the latest fiscal quarter available is the third quarter in 2023, youll compare those results to the same financial calculations from the third quarter in 2022.

Use the documents to calculate key financial ratios.

Then open the following documents:

• The balance sheet, income statement, and cash flow statement from the same fiscal quarter one year ago
• The Ratios Same Fiscal Qtr 1 Year Ago worksheet

Use the documents to calculate the same financial ratios. Finally, compare those ratios and analyze your results.

Specifically, you must address the following rubric criteria:

1. Financial Calculations. Calculate accurate financial formulas to assess the businesss current financial health. Specifically, calculate the following formulas using the Ratios Most Recent Fiscal Qtr and the Ratios Same Fiscal Qtr 1 Year Ago worksheets in the Final Project Financial Formulas workbook:
2. Working capital
3. Current ratio
4. Debt ratio
5. Earnings per share
6. Price and earnings ratio
7. Total asset turnover ratio
8. Financial leverage
9. Net profit margin
10. Return on assets
11. Return on equity
12. Fiscal Quarter Comparison. Summarize the differences between the following:
13. The results from your financial calculations of the most recent fiscal quarter
14. The results of the same financial calculations of the same fiscal quarter from one year ago
15. For example, if the most recent fiscal quarter available is the third quarter in 2023, youll compare those results to the same financial calculations from the third quarter in 2022.
16. Comparison Analysis. Explain what your calculations and comparison show about the businesss current financial health. Give examples to support your explanation for the following questions:
17. Do the results show the business is financially healthy or unhealthy? Which results indicate this?
18. What might be the causes of the businesss financial success or failure?
19. Is more information needed to determine the businesss financial health? If so, which pieces of information might still be needed?
20. Short-Term Financing. Explain how potential short-term financing sources could help the business raise funds needed to improve its financial health. Base your response on the businesss current financial information.

What to Submit

Your submission should be a 2- to 3-page Word document (not including title and resource pages) with 12-point Times New Roman font, double spacing, and one-inch margins. Include the Balance Sheet and Income Statement from Mergent Market Atlas with your submission. All sources should be cited using APA style. You must also use the workbook and submit the following worksheets:

• The Ratios Most Recent Fiscal Qtr worksheet from the Final Project Financial Formulas workbook
• The Ratios Same Fiscal Qtr1 Year Ago worksheet from the Final Project Financial Formulas workbook