FIN+571+Syllabus+Sept+29,+2011

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Course Number FIN/571 Version 5 Course Name Corporate Finance Cleveland Campus v. 09 July 2010

Transcript of FIN+571+Syllabus+Sept+29,+2011

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Course Number

FIN/571 Version 5

Course Name

Corporate Finance

Cleveland Campus v. 09 July 2010

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Program Council

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Edited in accordance with University of Phoenix® editorial standards and practices.

Cleveland Campus v.09 July 2010

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Course Syllabus

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Course Title: Corporate Finance

Course Schedule:

Course Location:

9/29/2011 to 11/3/2011

5005 Rockside Road

Independence, Ohio 44131 (Independence Campus)

Location/Times/Forums: 6:00 p.m. to 10:00 p.m.

Required Texts: Emery, Finnerty, Stowe. (2007). Corporate Financial Management(3rd ed.). New Jersey: Pearson-Prentice Hall.

Note: All required text materials can be found on page. The page can be accessed through the University of Phoenix Student and Faculty Website at https://ecampus.phoenix.edu/

Writing Resources

(To be used in accordance with the Incremental Guidelines provided by UoPx)

American Psychological Association (2009). Publication manual of the American Psychological Association (6th ed.). Washington, D.C.: American Psychological Association.

Sabin, W. (2005). The Gregg reference manual: University of Phoenix custom edition (w/passcode card) (10th ed.). New York: McGraw-Hill.

Note: The Gregg Reference Manual and the APA Manual are program textbooks to be acquired at the beginning of the core program to assist students with

writing. These texts are not available on the page and should be purchased by the student.

Electronic Resources: Emery, Finnerty, Stowe. (2007). Corporate Financial Management(3rd ed.). New Jersey: Pearson-Prentice Hall.

Instructor’s Name: Dee A. Price

Telephone: 800-930-9162

UOP E-mail Address: [email protected]

Student Tech Support: 1-877-832-4867 (1-877-TECH-UOP)

Availability:The best way to contact me is in the OLS main forum or your individual forum. I am available to meet with each of you to ensure adequate understanding of course requirements and to offer assistance and suggestions. For emergencies, when you are not able to gain access to messages on the Online Learning System (OLS), my email address should be used for homework assignments. Please call Tech Support and get a HEAT ticket number. In an extreme emergency, I can be reached by phone at the number listed above. It is your responsibility to contact me again if you do not hear from me within 24 hours. In the event a third party needs to contact me for you, please direct them to my contact information listed under "facilitator information." No third party should use your login credentials to gain access to the

classroom.

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Welcome!

Hello and welcome to Corporate Finance 571.

This will be a fun class because all of you are going to find that the information that you will learn will be helpful on a personal as well as a professional level. This course is going to give you insight into the financing of companies, which is very important from an investment as well as a management standpoint. It will also help you to think critically about a company that you may be analyzing to do business with, become one day as an entrepreneur, or maybe even a company where you are seeking employment. A class like this will give you a new perspective on the world of finance as never before because you will now see what the term "financial analysis" really means!

I enjoy teaching very much and try to help my students learn by finding commonality of our personal lives with our learning objectives. The fear of the unknown can (sometimes) affect learning. If I can help you learn by showing you how much of this may already be familiar to you in a different way, then, it is better for both of us! I understand how difficult some concepts are and for those of you that are not finance oriented, this may be especially unnerving. However, if you keep an open mind and listen to our class discussions, you will find that this will help you tremendously.

My goal is to help you learn as much as possible in this class by meeting the course objectives and, enjoy yourself at the same time! I promise that you will not get bored!

I am sure that each of you has an interesting background personally and professionally which I encourage you to share with your class participation. Please know that I do not want you to ever feel that any question or comment is unworthy. I truly enjoy and encourage class interaction and am looking forward to getting to know everyone and working with all of you!

May our time together be one of mutual respect, interpersonal dialogue, and a reflection of your personal and professional skills. Please remember to be considerate by shutting off all electronic instruments before entering our class. Please do not play on your computers during class or other electronic instruments; this may cause deductions to be taken from participation points.

In addition, I consider each of you an important participant, therefore, your timeliness to our class schedule and your learning team interaction would be appreciated by all.

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Once again, welcome!

Dee Price

Instructor Bio

Instructor Bio:

My name is Dee A. Price. I am a financial advisor with 25+ years in the financial services business. I have my own financial planning and advisory services firm called Affinity Financial LLC. I also have a separate company called DAP Financial, Inc. for tax preparation and insurance services. I have been a member of adjunct faculty since 2007.

I have an undergraduate degree in Business and a Master Financial Planning Degree with an MBA emphasis. I have obtained and retired my FINRA (NASD) securities licenses 7, 24, & 63. However, I have retained my FINRA #65 (registered investment advisor license) in addition to my licenses for Life, Accident, Health & Annuities insurance. I also attended Cleveland Marshall College of Law but did not finish my law degree due to my responsibilities to care for an elderly parent. I am a member of National Association of Tax Preparers (NATP) . Additionally, I am in the process of studying to take the EA, CPA and CFSA exam.

I have management experience from when I was in banking, affiliated with an insurance company, retail and regional brokerage firms, as well as my own businesses. For many years, I owned a state certified school and taught insurance pre-licensing education for potential insurance agent licensees for the state of Ohio. (This is where I learned how much I enjoy teaching and that I seemed to be good at it!) I also supervised, managed, and/or trained new adviser licensees as well as performed regional compliance auditing and management services in addition to being a regional branch manager for several broker/dealers.

My services as a financial advisor include and are not limited to: investment management and counseling, financial and estate planning, retirement planning, business planning and consulting, insurance services and/or advising, and tax preparation. I also provide external contract/compliance auditing services for brokerage firms.

My personal life is incorporated into my professional life quite a bit because everything we do seems to involve discussions or issues about finances or planning. Because of that, many people that I encounter I am able to work with on some level with them. I enjoy helping people achieve their goals or solve their problems and have built my business primarily, by referral. I also bring extensive professional and personal experience, which sets me apart from most advisors while working with clients, as well as in the classroom.

Additionally, when I am not playing golf or some other activity, I spend a lot of time with my wonderful dog (Buddy), who is very human, even though he walks on four legs and barks! I enjoy and participate with animal charities and am one of the few advisors that does “pet planning” with clients just like we financial plan for our children or parents. I enjoy working with people and always welcome new clients!

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Course Description____________________________________________________________________________

This course applies corporate finance concepts to make management decisions. Students learn methods to evaluate financial alternatives and create financial plans. Other topics include cash flows, business valuation, working capital, capital budgets, and long-term financing.

TOPICS AND OBJECTIVES

Week One: Foundations of Finance

1. Discuss the 12 principles of foundational corporate finance. 2. Compare and contrast accounting net income and cash flows. 3. Compare and contrast the market value of an asset or liability from the book value.

Week Two: Business Valuation

4. Apply valuation techniques to determine the intrinsic value of debt and equity instruments. 5. Analyze how markets adjust for risk. 6. Apply the capital-asset pricing model to calculate a business’s required return.

Week Three: Working Capital

7. Describe the cash conversion cycle and its importance to working capital management. 8. Identify sources and uses of short-term financing. 9. Evaluate how the business policies of a firm affect accounts receivable and inventories.

Week Four: Capital Budgets

10. Calculate the cost of capital. 11. Apply techniques used in capital budgeting decisions. 12. Analyze a capital project’s present value based on expected future net cash flows.

Week Five: Long-Term Financing

13. Outline a method for managing capital structure. 14. Evaluate the effect of dividend policy on stock price. 15. Explain the types and main features of long-term debt. 16. Compare and contrast leasing with debt and equity finance.

Week Six: Financial Planning

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17. Analyze the effect of price setting on capital budgeting. 18. Explain the methods, pitfalls, and benefits of capital rationing. 19. Create a financial plan.

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Course Standards

University Classroom policies Policies for this classroom can be found on eCampus under CLASSROOM, COURSE, and then POLICIES (https://ecampus.phoenix.edu/secure/aapd/policies). All learners will be held responsible for understanding and adhering to all policies contained within this document. University policies are subject to change so please be sure to read them at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you change modalities it is important you read the policies governing the new class modality.

Local Campus PoliciesThe following information is in addition to the University Classroom policies found on your eCampus webpage.

Online Learning System ForumsWe will have a set of Online Learning System forums available to us during this class. To access the forums, click on the Go to class link on your student website.

These web-based forums provide you with:1. A common area solely for our class group (Main forum) where you can post questions between our

on-campus workshop meetings. Although I will check the Main forum regularly, a day or so may go by before someone sees your post, so please be patient as you await replies, and online posting cannot take the place of on-campus class attendance or participation.

2. A Chat Room forum which you can use for non-class interactions with classmates (be sure to honor the Student Code of Conduct in this, and every, forum!);

3. Electronic access to the course syllabus which will be used in this class (see the syllabus in the Course Materials forum);

4. Electronic venues for Learning Team meetings and team paper drafts to use as each team deems best (I will assign a specific Learning Team forum for each team’s use during our first on-campus workshop meeting);

5. A personalized electronic drop-box – Individual Forum. Each student will not be able to see or access any private forum except the one created for him or her individually. You can utilize the Individual Forum indicated with your name for private communications with me. I will respond to your questions and concerns within 48 hours.

6. Submission of all assignments are to be placed under the Assignment Tab. I will grade and return assignments within seven days, if not sooner, where you will be able to view, download them to your computer or print them if you desire. If you encounter any technical problems posting your assignments under the Assignment Tab, please submit it to your Individual Forum by the assignment deadline. If you have OLS access issues, sending an assignment to me by email will stop the late submission penalty clock from running. I will grade your paper after I receive it, but it is important that you contact Tech Support as soon as possible. The Tech Support staff is available 24/7 by calling 1-877-TECH-UOP (1-877- 832-4867). Obtain a HEAT ticket number and submit it with your assignment. This number is required documentation indicating that either the Assignment Tab or OLS was unavailable and must be submitted with the assignment.

There are no online attendance or participation requirements during this course. All attendance and participation activity will occur only during our on-campus workshop meetings.

If you have any questions about the class forums, please let me know during our on-campus class time or by posting your question(s) in the Main forum.

Academic PreparationStudents must satisfy all prerequisites. During the course, students must meet all objectives presented. As stated previously, students are graded on achievement, rather than on effort. It is the responsibility of the student to be prepared (i.e., having read all assignments and prepared all papers) for every workshop during the course.

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1) AssignmentsAll work must be posted to the Assignment Tab in OLS by 6:00pm Eastern Standard Time the week in which it is due. I reserve the right to adjust this for certain assignments, midterms and finals. A 10% late penalty per day, or any part thereof, will be assessed for late assignments. No assignments will be accepted after the fifth day. I will not accept late assignments after the final week for the course. Students who are absent from class must still post all written assignments to the Assignment Tab in their OLS classroom on the date due to receive full credit. Assignments submitted into your Individual Forum or sent by email will ONLY be accepted if OLS is unavailable. Call Student Tech Support and obtain a HEAT ticket number and follow the directions as listed above in item 6.

2) Instructor Feedback on AssignmentsI am committed to returning all students’ graded assignments with written feedback before the next class date. Students are encouraged to meet privately with me if they would like individualized verbal feedback and assistance about assignments.

3) Changes to Assignments

Please note that except for the first night assignment, the assignments listed in my syllabus take precedence over those in the module or in rEsource.

Electronic Devices in the Classroom

Students will be penalized participation points for electronic interruptions during class; these include phone calls, texting and inappropriate computer use. Cell phones must be silenced. Lap tops are appropriate in the classroom for two purposes and two purposes only; looking at eResource during class when it is being reviewed, and taking notes. I reserve the right to ask you to turn off your lap top at any time if I perceive that it is being used inappropriately and may deduct participation points accordingly.

Incompletes

Requests for an Incomplete are rare and must be made to the Director of Academic Affairs after discussion with me. All University requirements for requesting an Incomplete must be met. The University policy concerning Incompletes is that the final grade for the course will be deducted one full letter grade upon completion; there is no exception.

Learning Team Participation Learning teams are an essential part of the academic experience for students and Learning Team members need to make the necessary commitment to work together to meet the criteria for Learning Team Assignments. In addition to providing a supplemental learning environment for mastery of course content, learning teams provide students with an opportunity to develop and refine teamwork skills. Learning Teams are comprised of three to five students and will meet weekly outside of class times in person, via teleconference, real-time electronic conferencing, or asynchronous conferencing.

1) Learning Team CharterDuring the first learning team meeting, team members must collaborate together in developing and completing the Learning Team Charter. This exercise will help the team plan for effective achievement of team tasks, communication, establishment of team ground rules, and conflict management of the team process.

 Team members need to document on the form that they assisted in the preparation of the charter which should be submitted to the Learning Team Forum in OLS at the beginning of the second week for the course. Additional evaluation of an effective team charter should reflect a combined plan and group contract that include specific self-management strategies, project management techniques and conflict resolution strategies.

 2) Learning Team LogsEach week, each Learning Team must complete and submit one unified Learning Team Log for the entire team’s activity to the Learning Team Forum in OLS. The Learning Team Log documents key lessons learned as result of team activities, team processes and each Learning Team member’s participation in the weekly learning team meeting. Non-participation in the weekly Learning Team meetings will be considered during the

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grading process for that student and result in reduced points for the Learning Team participation and Learning Team segments of the student’s grade.

3) Learning Team Peer Evaluation Learning Team members are required to complete Learning Team Evaluation Peer Evaluation forms in order to assess the relative contribution of team members to both the processes and products of teams, and to ensure that collaboration skills of individual students are reflected. The forms are to be submitted to each student’s Individual Forum in OLS.

4) Learning Team AssignmentsFor submission of Learning Team assignments, I will designate one team member to be responsible for putting the team assignment into their ASSIGNMENT TAB. DO NOT put your team assignment into the Learning Team Forum. I will award different grades to learning team members based on the equity of their participation and contributions to the Learning Team assignments.

Equity is assessed by: Weekly Learning Team Logs, submitted to the OLS on a weekly basis. Learning Team Peer Evaluation form completed by each student and submitted to their

Individual Forum in OLS. Participation on the Learning Team Presentations.

5) Learning Team ParticipationEach individual team member needs to orally present a portion of any Learning Team presentation in order to earn points for the Learning Team assignments. Team members are reminded that they must be honest about all aspects of their participation in Learning Team Meetings and their documentation on Learning Team Logs pursuant to University of Phoenix Code of Student Responsibility and Standards of Student Behavior outlined in the University Catalog.

Guidelines For Written Assignments

The University employs the incremental learning model of writing.

1) The standard publication manual for all papers is the manual of the American Psychological Association (6th ed.) and The Gregg Reference Manual: UOPx Edition (10th ed.)

2) It is recommended that students are to submit a draft of their written assignments to WritePoint and the plagiarism checker before submitting the final draft to the instructor. Copies of the reports are due on the same day of the assignment and are to be emailed to the instructor simultaneously.

3) Internet EncyclopediasSo-called internet encyclopedias such as Wikipedia, Dictionary or Investopedia are not acceptable scholarly journals and may not be used as references for papers or presentations in this class. Most operate by accepting entries by virtually anybody not necessarily followed by a period of critical analysis which may or may not involve experts in the field. You have no way of knowing whether the entries represent documented research or simply the opinion of an individual. Wikipedia, Dictionary or Investopedia may be good starting points for research but are not authoritative, peer reviewed sources.

When you seek general information, use one or more of the scholarly encyclopedias available to you through the University of Phoenix on-line library. These include the following:

a) American National Biography b) Britannica Online c) Grolier Online d) Oxford Dictionary of National Biography e) Oxford Reference Online f) Routledge Encyclopedia of Philosophy g) Routledge Reference Resources

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How Points and Percentages Equate to Grades

95 + A 74-76

C

90-94 A- 70-73

C-

87-89 B+ 67-69

D+

84-86 B 64-66

D

80-83 B- 60-63

D-

77-79 C+ - 59 F

The last two pages are the grading rubrics that will be used to evaluate your efforts for written assignments and presentations as individuals and as teams.

Weekly Point Values

Week One  Individual Assignment: Guillermo Furniture Store Concepts Paper 7Week Two  Individual Assignment: Text Problem Sets 10Week Three  Learning Team Assignment: Lawrence Sports Simulation 15Week Four  Individual Assignment: Guillermo Furniture Store Analysis 10Week Five  Individual Assignment: Text Problem Sets 10Week Six  Individual Assignment: Final Exam 15Learning Team Assignment: Guillermo Furniture Store Recommendation 15All Weeks  Participation & Discussion Questions (in class) 18Assignment Totals  Individual 70Learning Team 30Point Total 100

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Written Assignment Grading Form for Individual and Team AssignmentsContent and Organization: 50% of pts Additional Comments (Point total:    ) 

All key elements of the assignment are covered in a substantive way.

The content is comprehensive, accurate, and/or persuasive.

The paper develops a central theme or idea, directed toward the appropriate audience.

The paper links theory to relevant examples of current experience and industry practice and uses the vocabulary of the theory correctly.

Major points are stated clearly; are supported by specific details, examples, or analysis; and are organized logically.

The introduction provides sufficient background on the topic and previews major points.

The conclusion is logical, flows from the body of the paper, and reviews the major points.

Readability and Style: 35% of pts Additional Comments (Point total:    ) 

Paragraph transitions are present and logical and maintain the flow throughout the paper.

The tone is appropriate to the content and assignment.

Sentences are complete, clear, and concise. Sentences are well-constructed, with consistently

strong, varied sentences. Sentence transitions are present and maintain the flow

of thought.

Mechanics: 15% of pts Additional Comments  (Point total:   )

The paper, including the title page, reference page, tables, and appendices, follow University of Phoenix incremental formatting guidelines.

Citations of original works within the body of the paper follow University of Phoenix incremental formatting guidelines.

The paper is laid out with effective use of headings, font styles, and white space.

Rules of grammar, usage, and punctuation are followed.

Spelling is correct.

Total: 100% of pts Grade:

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Week One

Foundations of Finance

20. Discuss 12 principles of foundational corporate finance. 21. Compare and contrast accounting net income and cash flows. 22. Compare and contrast the market value of an asset or liability from the book value.

Course Assignments

Readings

Read Ch. 2 & 3 of Corporate Financial Management.Read the following items, available at http://ecampus.phoenix.edu:

Learning Team HandbookGuide to CharterLearning Team CharterLearning Team LogLearning Team Evaluation

Individual Assignment: Guillermo Furniture Store Concepts Paper (7 pts)

Resource: University of Phoenix Material: Guillermo’s Furniture Store ScenarioWrite no more than a 700-word paper explaining the finance concepts found in the readings and how they relate to the context of the scenario.Format your paper consistent with APA guidelines.

Discussion Questions in class regarding the assignment

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Week TwoBusiness Valuation

23. Apply valuation techniques to determine the intrinsic value of debt and equity instruments. 24. Analyze how markets adjust for risk. 25. Apply the capital-asset pricing model to calculate a business’s required return.

.Course Assignments

1.Readings

Read Ch. 5–7 of Corporate Financial Management.

Individual Assignment: Text Problem Sets (10 pts)

Navigate to the MBA preparatory companion website at http://www.pearsoncustom.com/uop/mba/

Select the Introduction to Finance. Read the Welcome. Select from the pull down menu Ch. 1, 2, 5, or 7 and begin the

Readiness Assessment Quiz on the left-hand menu once you select a chapter.

Complete the problem sets and show all steps:

Ch. 5: Problems A1, A10, A12, A14, B16,(5 pts)Ch.6 Question 4 (1pt), Question 8 (1 pt) Ch. 7: Questions 8, and 12 (2pts), Problem C1 (1pt)

Learning Team Instructions: Lawrence Sports Simulation

Resource: University of Phoenix Material: The Lawrence Sports Simulation Collaborate on the Lawrence Sports Simulation due in Week Three.

Discussion Questions regarding the class assignment

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Week Three

Working Capital

2.Describe the cash conversion cycle and its importance to working capital management. 3. Identify sources and uses of short-term financing. 4.Evaluate how the business policies of a firm affect accounts receivable and inventories.

Course Assignments

5.Readings

Read Ch. 22 & 23 of Corporate Financial Management.

Learning Team Assignment: Lawrence Sports Simulation (15 pts)

Resource: The Lawrence Sports Simulation located at https://ecampus.phoenix.edu/secure/resource/vendors/tata/sims/finance/finance_simulation1.html

Create at least three alternative working capital policies that reduce future difficulties, and make a recommendation on which policy Lawrence Sports should follow. Your recommendation must include:

An evaluation of the risk associated with the recommendationContingencies for the recommendationPerformance measures that are used to evaluate your recommendation An implementation plan for your recommendation

Write a paper in no more than 1,750 words discussing your recommendation. Your paper must include a review of the cash conversion cycle for Lawrence Sports Simulation and its importance to their working capital management. Develop and explain your recommendation as fully as possible. (14 pts)

Format your paper consistent with APA guidelines.

Discussion Questions regarding the class assignment

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Week FourCapital Budgets

6.Calculate the cost of capital. 7.Apply techniques used in capital budgeting decisions. 8.Analyze a capital project’s present value based on expected future net cash flows.

Course Assignments

9.Readings

Read Ch. 8–10 of Corporate Financial Management.

Individual Assignment: (10 pts for all)

Guillermo Furniture Store Analysis (5pts)

Resource: The Guillermo Furniture Store Scenario or your own organization, with the approval of your facilitatorWrite a paper with a maximum of 1200 words that focuses on the analysis of different alternatives available to Guillermo. Include a sensitivity analysis. Please be thorough with your analysis.Determine the optimal weighted average cost of capital and discuss the use of multiple valuation techniques in reducing risks. Calculate net present value of future cash flows for each of the alternatives. Format your paper consistent with APA guidelines.

Chapter 8, Questions 7 (1 pt), Chapter 9, Question 1 (1 pt), Problem A1 (1pt),

Chapter 10 Question 3 (1 pt),,Problem B1 (1 pt)

Discussion Questions regarding the class assignment

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Week FiveLong-Term Financing

10. Outline a method for managing capital structure. 11. Evaluate the effect of dividend policy on stock price. 12. Explain the types and main features of long-term debt. 13. Compare and contrast leasing with debt and equity finance.

Course Assignments

14. Readings

Read Ch. 17, 18, 20, & 21 of Corporate Financial Management.

Individual Assignment: Text Problem Sets (10 pts)

Navigate to the MBA preparatory companion website at http://www.pearsoncustom.com/uop/mba/

Select the Introduction to Finance. Read the Welcome. Select from the pull down menu Ch. 1, 2, 3, 4, 5, 6, 7, or 8 and begin the Readiness

Assessment Quiz on the left-hand menu once you select a chapter.Complete the problem sets and show all steps in your work:

Ch. 17: Questions 12, & 14 (2pts) Problem A1 & B1 (2 pts)Ch. 18: Questions 7, & 10, (2 pts) Problem B2 (1pt)Ch. 20: Questions Problem A2 (1 pt) Ch. 21: Problem C2 (2 pts)

Learning Team Instructions: Guillermo Furniture Store Recommendation

Resource: The Guillermo Furniture Store Scenario or your own organization, with the approval of your facilitatorCollaborate on the Guillermo Furniture Store Recommendation due in Week Six.

Discussion Questions regarding the class assignment

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Week SixFinancial Planning

15. Analyze the effect of price setting on capital budgeting. 16. Explain the methods, pitfalls, and benefits of capital rationing. 17. Create a financial plan.

Course Assignments

18. Readings

Read Ch. 11 & 24 of Corporate Financial Management.Read Ch. 24 of Corporate Financial Management.

Individual Assignment: Final Examination (15 pts)

Resources: Corporate financial management Click the link to the Final Examination on your student website available from

the end of Week Five through the end of Week Six. Complete the Final Examination. You are allowed one attempt to complete

the exam, which is timed and must be completed in 3 hours. Results are auto graded and sent to your instructor.

Learning Team Assignment: Guillermo Furniture Store Recommendation (15 pts)

Resources: The Guillermo Furniture Store Scenario or your own organization, with the approval of your instructor, for this assignment

Write a paper in no more than 2,100 words that analyzes Guillermo’s alternatives and make a recommendation of a financial decision. The paper must also include a justification for your recommendation.

Create a pro forma cash flow budget for the organization for at least the next 5 years.

Format your paper according to APA standards.

Discussion Questions regarding the class assignment

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