FIN571 Wk6 Assignment CH
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Wk 6 Summative Assessment: Capital Structures Financial Plan
You as the
business manager
need to be able to determine larger sources of funding by creating a financial plan to help reduce duplication of resources, identify requirements and risks, and determine various financing options. Completing this planning is an important step for all businesses to take if they want to succeed. Larger companies may delegate this process to financial managers, financial analysts, or operations managers.
You decide to
create a financial pla
n for your company (the Fortune 500 company you choose
in week 1) to help
distinguish between sources, requirements, and risks associated with various types of long- and short-term financing capital structure
that your company can potentially use in the future.
Assessment Deliverable
Draft a 3- to 4-page financial plan for your company. This plan should include sections for a business case and profit-and-loss statements. Include the following items:
A business case that includes a description, type of business, and sources of funding
Note
: Use your Wk 5 Assessment Prep: Business Case Research assignment and feedback.
A profit-and-loss statement for a 3-year period
Project revenue. State realistic assumptions, such as growth per year, in your projections.
Estimate direct costs, including capital, marketing, labor, and supply costs.
A conclusion that includes an explanation of what working through a financial plan can do for a larger company
Cite references to support your assessment according to APA guidelines.
Submit your assessment.
Assessment Support
Rubric
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Task 1 The Board is considering replacing or redeveloping the leading product you have chosen. This will require considerable new investment. a) Use TWO investment appraisal techniques to describe TWO alternative sources of finance that would support the board's strategy. b) Contrast the usefulness of the two investment appraisal techniques you have selected c) Analyse two international aspects of financial risk management that could impact on the board's strategy. d) Analyse and explain the cost involved in managing these two aspects.
SFM - LO 1 (pcs 1.1, 1.3) SGF - LO5 (pcs 5.1, 5.2, 5.3)
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Working capital management includes which one of the following?
OA. Deciding which new projects to accept
B. Deciding whether to purchase a new machine or fix a currently owned machine
OC. Determining which customers will be granted credit
OD. Determining how many new shares of stock should be issued
OE. Establishing the target debt-equity ratio
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Explain why it would be wise for a financial manager to learn advanced capital budgeting techniques.
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Setting balanced scorecard objectives, setting target values and aligning rewards are:
Necessary steps in creating a balanced scorecard
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Market share
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Earnings per share
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Describe how you would use capital budgeting techniques to determine whether a business investment is a good idea.
Give an example of a business investment venture and how you would use capital budgeting to ensure it is a good investment.
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Capital budgeting is the ________.
A. process of planning for investments in long−term assets
B. process of evaluating the profitability of a business
C. process of making pricing decisions for products
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Case Study: Identifying Errors in Capital Budgeting Decisions
Introduction:
Capital budgeting decisions play a crucial role in the financial success of a company, impacting its long-term viability. Managers strive to make accurate and informed decisions when evaluating potential investment projects. However, errors can occur, and it is essential to implement effective procedures to identify and rectify these mistakes. This case study explores various procedures and their efficacy in identifying errors in capital budgeting decisions.
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What is the role of management accountants in capital budgeting and investment decisions?
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