FIN 200 All DQs

Week 1

Discussion Questions

You are considering investing in a company. Which financial ratios would you findmost useful? Why?

You are an upper-level manager in a company. Which financial ratios would you consider most useful? Would these ratios be different than the ones you would consider useful as an investor? Why or why not?

Week 4

Discussion Questions

Provide an example of a situation where a company would want to use leverage. What might the company do to achieve that leverage?

What are some limitations of financial leverage? Provide examples to illustrate your points.

Week 6

Discussion Questions

What are the goals of cash management for a business? Should those goals be the same for the every kind of business? Why or why not?

Use the Wall Street Journal () or some other financial publication to find the going interest rates for marketable securities listed in Ch. 7 of Foundations of Financial Management. Which security would you choose for a short-term investment? How does that security assist a company in meeting its cash management goals?

Week 8

Discussion Questions

Review the Time Value of Money simulation. Which option did you initially choose, cash or annuity? How were your winnings affected by the cash option? How did this compare to the annuity option? If you won the lottery today, which option would you choose and why?

Use the following scenario to answer Discussion Question 2. Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (for example, present value and future value) was used and why.