Category: Finance

Canyon Drilling, Inc. has just come under new management. One of the first things the new management wants to accomplish is to identify its capital structure and the cost of additional funding, if needed.
According to the accounting department, the current balance sheet is accurate and reflects the financial structure of the company. They have also calculated the marginal tax rate to be 40%. The company’s beta is currently 1.15.
Your Chief Financial Officer, Marge, has also provided you the following information about the market and the company’s financials:
Company Specifics
Debt:
3,600 par value ($1,000) bonds outstanding. All have a 7% coupon, and will mature in 20 years. Market value is currently $1,050 and interest is paid once a year.
Equity:
Common Stock
The company has 40,000 shares of common stock outstanding, and has a market price of $50 per share. The stock last paid a dividend of $1.40 and had a constant growth of 5% per year.
Preferred Stock:
The company has 7,500 shares of 5% preferred stock outstanding. All have $100 par value and are selling for $80 per share.
Floatation costs: Debt ＝ 4%, Equity ＝ 5%
Market Specifics:
Market risk premium ＝ 7% Risk free rate ＝ 4%
Return on the average stock ＝ 11%
Tasks:
–Assuming the same capital structure is to be maintained, what is the optimal capital structure for Canyon Drilling?
–What is the component cost of capital for the firm?
–Calculate Canyon Drilling’s after tax weighted average cost of capital, using the information above.
Submit Microsoft Word doc.

Watch the PBS/FRONTLINE video documentary “Sick Around the World” and write a minimum of a two-page (double-spaced) summary. Write your summary in your own words.

During Module 6: Week 6 of the course, each student will be required to prepare projected financial statements for his/her company in Excel Project: Projecting Financial Statements Assignment. As part of the process of preparing projected financial statements, students must consider certain factors that will influence the company’s future success.  Such factors include the company’s past history, the company’s plans for future growth, customer demand, governmental regulation, taxation, economic factors, and more.
Prepare a Discussion thread that summarizes the factors that are expected to impact the company’s financial position in the next three years.  The factors identified should be supported by citations from reputable sources.  Avoid making opinionated statements.  Instead, utilize research to make informed conclusions regarding the company’s future. 

In early 2020, the United States government had more than $23 trillion in debt (approximately $80,000 for every U.S. citizen) outstanding in the form of Treasury bills, notes, and bonds. That number is now growing due to the current coronavirus situation to over $30 trillion. From time to time, the Treasury changes the mix of securities that it issues to finance government debt, issuing more bills than bonds or vice versa.
With short-term interest rates near 0 percent right now in the middle of 2020, and still very very low, historically today, suppose the Treasury decided to replace maturing notes and bonds by issuing new Treasury bills, thus greatly shortening the average maturity of U.S. debt outstanding. Discuss the pros and cons of this strategy.
Introduction of DQ3
This is a very real-life question that our Government has been facing since the financial crisis of 2007-2008 and again now with the coronavirus in 2020.  With interest rates falling after both crises to historical lows, which they are still by and large at today but will begin rising slowly again, the Government has a tough decision, especially with regards to the old debt it issued at higher interest rates to finance the Government. Refinance that debt?  If so, for how long of a period of time and at what rate of interest are buyers willing to go out when buying the new Government T-bills, bonds, etc.?
Reminder: Depth and Breadth of Your Responses
I find that Google searches are a great place to find a reference(s) for postings in addition to the course textbook. 
In addition to the course textbook, it is sometimes a good idea to get another angle on a DQ like this one.
A reminder that your DQ postings should have some depth, breadth, and length to them, especially those made on Sunday nights before the DQ responses end.  Well-written DQ postings are also very much appreciated.

The goal of this assignment is to conduct a corporate governance scoring survey for Loews Corporation and provide the corporate governance assessment of an S&P 500 listed company based on the OECD principles of corporate governance.  I already did the survey and get the cg score of 89. Write the final report following the instructions in the Guidance file. I will put the survey in the files, please also read toolkit for more information.

Must post first.
Module 1 Discussion Topic:
What does it mean to say that managers should maximize shareholder wealth “subject to ethical constraints”? What ethical considerations might enter into decisions that result in cash flow and stock price effects that are less than they might otherwise have been?
DQ1 Response Guidelines
When you respond to DQ1, make sure you respond to it in two parts, as there are two questions included in this DQ, and please be specific in your responses to each part of the two parts of the DQ.
Getting Us Started
It may not seem so important or relevant, but managers often:
-know the future (especially budgets, business plans, business strategies, the date of the release for new products, the status of important litigation, just to name a few important items….);
-managers, often time, have a vested interest in the performance of the firm, in the form of short-term items (for example bonuses); and long-term items (such as ownership of shares of stock in the firm or stock options, which the manager can exercise in the future, especially if they are in ‘the money’ and can provide the manager with a profit on a sale).
So, I hope at this point that you understand that the ethical constraints faced by managers are becoming increasingly clear………..it is not so simple, not so easy, but the manager must pick which road they will travel on, and if ethics come into question, the ramifications of not doing the right thing.

1) Austin Smith posted May 2, 2024 11:33 PM
Class,
Rivian is a startup company that specializes in electric vehicles (EVs) and designs and produces electric pickup trucks and executive SUVs. The initial public offering (IPO) of the firm was one of the largest of the year, and it took place on November 10, 2021.
IPO Details:
IPO Price: $78 per share
Shares Offered: 153 million shares
Raised: $11.9 billion, making it the sixth-largest IPO ever in the U.S.
Valuation at IPO: Approximately $66.5 billion
The IPO of Rivian generated a lot of excitement and investors showed great enthusiasm, as evidenced by the significant increase in share prices on the first day of trading. This surge in value placed the company’s worth at an impressive $100 billion. This was a highly notable market debut that has garnered significant attention in recent years. Since then, the stock’s performance has been quite unpredictable, mirroring the difficulties and uncertainties the company has encountered in expanding production and meeting ambitious delivery goals. In May 2023, the stock price of Rivian is currently around $15. 
Rivian has been facing challenges in scaling up production and meeting delivery goals, which has resulted in a notable drop in its stock price after the company revised its 2023 production forecast.
After generating a lot of excitement and achieving a successful IPO, Rivian’s performance afterwards has shed light on the difficulties that EV startups encounter in a fiercely competitive and capital-intensive market. This article offers a glimpse into the various factors that have been impacting Rivian’s stock price and how the market has been receiving it since its IPO (Reuters, 2023).
Reference
News Article: “Rivian Stock Continues Downward Spiral After Production Cut” (Reuters, March 7, 2023)
https://www.reuters.com/markets/us/rivian-stock-continues-downward-spiral-after-production-cut-2023-03-07/
2) Deziah Weissenberger posted May 2, 2024 11:45 PM
Classmates,
Instacart is a top-notch online grocery delivery and pick-up service company that operates in both the United States and Canada. The company made its debut on the stock market on May 26, 2023, generating a lot of excitement as one of the most highly anticipated initial public offerings of the year. The IPO price for Instacart is set at $32 per share. Investors had varying reactions to Instacart’s IPO.
The company’s stock had a great start on its first day of trading! It opened at $35 per share, which was a significant 9.4% increase from the IPO price. Unfortunately, the initial excitement quickly faded when the stock ended the day at $30.65, a 4.2% decrease from the IPO price (Kang & Driebusch, 2023).
Instacart’s stock has been experiencing significant fluctuations in recent trading days, which can be attributed to concerns surrounding the company’s ability to sustain its growth and profitability in a fiercely competitive market.
I just wanted to give you a quick update on Instacart’s stock. As of June 2, 2023, it’s currently trading at around $28 per share, which is about 12.5% lower than its IPO price. I just thought you might find that interesting.
Instacart’s IPO garnered a lot of attention and managed to raise a considerable amount of capital. However, the company’s stock performance indicates that investors are being cautious when it comes to high-growth companies in the current market. They are placing a greater emphasis on profitability and sustainable business models.
Reference
Kang, J. and Driebusch, C. (2023, September 13). Instacart Shares Climb 12% in Stock Market Debut. https://www.wsj.com/finance/stocks/instacart-stock-cart-trading-nasdaq-2e0c060e
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Module 6 Discussion Topic
Briefly describe the agency problem that exists between owners and lenders. How do lenders cause firms to incur agency costs to resolve this problem?
Introduction to DQ6
This DQ goes back from some of the initial parts of this course to the Contents section of M1.
To get us going, lenders are not involved in the day-to-day operations and business decisions made by the owners in running their businesses.  Also, owners may not be making decisions, both short- and long-term, which are in the best interest of their lender(s) or that might affect a lender’s decision about lending money to a business (or its owners).  Hence, the agency problem exists in this type of relationship.

Analyze the excel sheets based on the set of question provided.
– please provide for each question what needs to be looked at and done, steps on how to look at the data and do the analysis to be able to understand it as a similar case needs to be also done in the same way.
– provide narrative explains for the questions referring to the data
Important Info
The order was placed through a short procedure (customer skipped some order details).
Please clarify some paper details before starting to work on the order.
Type of paper and subject
Number of sources and formatting style
Type of service (writing, rewriting, etc)

I need a quiz to be completed where you classify funds by the asset and category group. You′ll need to locate the prospectus on the SEC site or anywhere online for the fund and read the investment objective for the fund. Then classify the fund, I will have the resources available that we use for the quiz. I have tried to pass twice. They require a 95% and I only have reached mid 80′s. Feel free to reach out and I can assist I just need a 95% so I can move on from this task.
In the attached BFCS long form marketing only reference Global equity, Domestic Equity, Sector Equity and The Speciality Equity (believe its only inverse and leveraged Equities)
Category group is the main umbrella for example Global equity, then you′d pick an asset group underneath that in the form to classify the fund. The fund name is also helpful paired with the investment objective in the prospectus to classify the fund
the rest of the sections aren′t in this quiz