Category: Finance

Purpose of Assignment
The purpose of this assignment is to apply the concepts of the income statement to calculate year-over-year data and analyze the factors that influence the change. While challenging at times, the calculations portion of this and the next several assignments will enhance your understanding of the concepts and provide a valuable skill that all HR professionals must have in their “toolbox”. In order to remain solvent, every organization must generate revenues that are equal to or greater than their expenses. This foundational equation will enable HR professionals to prioritize their work and design systems that support the organization’s goals. We will use Apple’s financial data from 2011, 2012, and 2013 because they had a large level of activity within the organization during that time, so there is a good amount of information available on that activity.
Assignment Instructions
The assignment this week is to calculate and analyze an Income Statement.
If you have not done the Income Statement exercise in the textbook now would be a good time to do it as it will greatly help you with the assignment. The assignment specifics are similar to the Income Statement exercises for Kimberly-Clark and FedEx) in Appendix B. You should work through the two exercises.
The assignment has two parts. Both parts involve using the Income Statement from Apple. See attachment.
PART ONE
Using the Apple Income Statement, perform the following calculations. Create a table or spreadsheet for your answers. You should include the formulas you use to make your calculations as well as the results.
Percentage change in revenue for 2012 to 2013 and 2011 to 2012 (revenue growth)
Your answer will be two percentages
Gross profit as a percentage of revenue (gross profit margin percentage) for 2011, 2012 and 2013.
Your answer will be three percentages
Operating income as a percent of revenue (operating income margin percentage) for 2011, 2012 and 2013. Your answer will be three percentages
Note: Be sure of the figures you use for your numerator and denominator. There is a nice reference on page 73 of your textbook. PART TWO
Based on your results, answer the following question:
1. What trends do you see by looking at the Income Statement itself, the raw numbers and the percent change results? In other words, what is happening at Apple that created the change? IMPORTANT: You need to show what is causing the numbers to change. Don’t simply say the numbers went up or down. You need to go beyond the numbers and do some analysis. There is a great deal of literature on what was happening at Apple during this period. Remember to cite your sources. THE PAPER WILL CONTAIN THE FOLLOWING:
1. Calculations. Show formulas and results. Grading will be based on using the correct formula and correct results. You can use a Word table or Excel spreadsheet for your calculations. Remember I MUST see you use the formulas.
2. Analysis. Restate the questions and your responses. Grading will be based on your level of insight. This will require some research. Show at least three external references. There are many articles on Apple so you should not have any problem finding material.
As for your analysis volume, think about two paragraphs per question. The two paragraphs should equal about a page for each question. This is the minimum. You can include graphs and any other related information. Your submission should be in MS Word. If you are using Excel for the calculations, you can embed it in the document or create two separate documents.
Grading for this assignment will depend on three things:
1. Using the correct formulas. Make sure you show the formulas that you are using. This is important. 2. Obtaining the correct results
3. The quality of your analysis. Meaning, did you use three references, and did your analysis provide insights vs. simply repeating the results. I am interested in you learning about what was driving/impacting the financial results.
This pattern will be repeated in the next few weeks, meaning we will be referencing the Apple financials for the Balance Sheet, Cash Flow, and Ratio assignments.
I attached the document that you will be referencing for the problems.

You must show all your work/calculations step by step on a Word document
1. A company has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120.
What is the bond’s nominal yield to call?
2. A Corporation (AC) just paid a dividend of $1.32 per share. Analysts expect the AC’s dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in year 3 and after that. AC’s beta coefficient is 1.10, the market risk premium is 5%, and the risk-free rate is 3.5%.
What is the current market value of AC stock?
3. A company recently hired you as a consultant to estimate the company’s WACC. You have obtained
the following information:
1) The firm’s noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,050.00.
2) The company’s tax rate is 40%.
3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock’s beta is 1.20.
4) The target capital structure consists of 35% debt, and the balance is common equity.
The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new
common stock. What is its WACC?
4. A Company is evaluating the purchase of new equipment. The price of the equipment, including shipping and installation, is $235,420. The equipment is fully depreciated at the time of purchase(it is eligible for 100% bonus depreciation). The equipment would be sold after three years for $101,400. The equipment requires a $6,221 increase in net operating working capital. The new equipment would not affect the cost, but the pretax revenues would increase by $134,100 per year. The company tax rate is 22 percent, and the WACC is 11.25 percent.
What is the MIRR of the project? What is the NPV of the project?
5. A Company has decided on the following project: The project has the following cash flows.
Year
Cash Flow in $
0
-30,000
1
6,000
2
12,000
3
18,000
4
12,000
The company’s weighted average cost of capital is 10 percent (WACC = 10.31%).
What is the project’s discounted payback, net present value (NPV), internal rate of return, and MIRR?
6. A company recently reported an operating income of $5.95 million, depreciation of $1.20 million, and a tax rate of 40%. The firm’s expenditures on fixed assets and net working capital totaled $0.6 million.
What was its free cash flow in millions?
7. Suppose an investment pays $41,950 per year for the first ten years, $52,790 for the next ten years, and $36,470 for the following ten years (all payments are at the end of each year).
If the appropriate annual discount rate is 7.51 percent, what is the value of this investment today?

There are three numerical questions. Each question values 10 points. Please show the calculation steps.
Showing no steps will be discounted significantly

Discuss your country’s balance of payment (BOP) situation from 2019 with some observations.
Requirements
1. Analyze:
– Trade Account
_ Current Account
– Capital Account
2. Do you find any significant differences in the trade and current account balances during this time?
3. How far of these differences might have happened due to Covid-19 and the Ukriane War?
References should be used.
my country: Taiwan refereences: APA style AI-related software should not be used to write the assignment.
– Word Limit: Minimum 1,000 words.

Use a 3-year holding period to decide whether or not this is a financially
feasible investment. Compute the before-tax NPV and IRR. Comment on
your final on your calculations as to whether the investment is
worthwhile. Please do all your calculations, including NPV and IRR in
Excel. You cannot calculate using a financial calculator and input your
answers in Excel. All intructions and template provided on video and documents.

How does the irrational behavior of investors contribute to the inefficiency of the stock market?
Please ensure the following: 1) make sure your essay is checked for grammar, 2) if you quote, please provide citations format APA, 3) Plagiarism is not tolerated and will lead to an F grade.  

Randy Baker
Jun 24, 2024, 5:55 AM
Unread
Hello Class. Over the years, I was fortunate in being part of the review process for small, medium and large-scale project launch decisions. My experiences for capital budgeting projects requiring large investments involved a gated-review approval process intended to select the best projects while optimizing product-development performance. This gated-review approach to capital budgeting was also designed to eliminate escapes and mitigate risk in the upfront approval stages of the development cycle of a new product by ensuring that the company makes the right decisions at critical points in this cycle. Accordingly, visibility and accountability was needed to ensure team involvement and data accuracy during the capital budgeting process. My experience and observations with this process involved the execution of a lean, scalable, adaptable and structured gate-review process. When the capital budgeting decision involved large investment and multi-site resources, our gate-review process was designed to provide real-time event status reports (by product, by criterion, by supplier, by revision history, etc.) with all the information hosted within a password-protected data-base environment. Thus, providing ready access to authorized personnel on a 24/7 basis from any site (including suppliers and customer personnel if applicable). The system provided automated email reminders, minimized cross-functional conflicts and provided email approvals via electronic signatures for key criterion. Changes were tracked by person, time and date without use of a manual log. The process was visible to senior leadership so that they could respond to issues and plan ahead. This gated review process for our large capital budgeting projects helped to reduce the potential of false-positives (event passes when it should not have) and system-facilitated out-briefs so that the Gate Leads did not have to work all night on charts that may unintentionally manipulate the message.
Thanks for reading, Dr. Randy Baker

. Please use the links listed in the Required Readings and Resources section to explore career options available in the Finance Industry.  (Financial Analysis) explain whether it is Corporate Finance, Investing, ACA or another type of Finance.  Also, explain the role and why it interests you.

Please refer to the brief. 
Below are the case studies relevant to the assignment. We must choose one practical class for the purpose of the paper (the one you’re most confident in and most to write about). I can provide a case study on the topic once you have chosen the lecture. 
Lecture Practical class
Week 1 – 2 Introduction The cost of capital
Week 2 – 3 Financial statement modelling  Valuing a Company
Week 3 – 4 Default Adjusted Bond Yields Estimating the Cost of Debt
Week 4 – 5 Performance Measurement
Style Analysis
Week 5 – 7 Risk Measurement Value at Risk for an Option Portfolio
Week 6 Reading Week Reading Week
Week 7 – 8 Exchange Rate Modelling Currency Trading Strategies 

Select a Fortune 500 company and imagine that you work as a strategist for your selected company. As you read through the Required Unit Resources, pay close attention to your firm’s strategy, and write a case study analyzing the following points:
Examine your firm’s internal strengths and weaknesses. How can organizational relationships improve performance in the firm?
How does the firm’s growth fit into the firm’s mission and vision statements?
Who are your firm’s competitors?
Do you see your firm’s strategy as effective or ineffective? Why?
Your completed case study must be at least two pages in length, and you must use your textbook as one reference, and the CSU library as a second reference. Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.