FIN 419 All DQs

Week 1

Discussion Questions

1. What is a limited liability corporation? What is a limited liability partnership? What are the differences? What are the advantages and disadvantages of each?

2. What is a sensitivity analysis? What is a scenario analysis? How would you apply each one to a potential investment opportunity? How would you use the information from this analysis? Explain.

3. What are some risk management techniques? How would you use portfolio management to assess the risk and return of an investment? Predict how the results would be different based on different risk preferences?

4. Based on your assessment of risk using portfolio Management, what factors would you use to make different risk preferences?

Week 2

Discussion Questions

What is the difference between present values and future values? How would you use present and future value techniques in preparing a financial plan for retirement? How would various required rates of return affect your decision? Explain.

What is a loan amortization schedule? How would you use it determine your loan interest rate? What factors would impact your choice between two loans?

What are the three key inputs to the valuation model? How would you determine the valuation of an asset?

How would the intrinsic value of assets differ from the market value? Explain.

Week 3

Discussion Questions

What is an aggressive financing strategy? What are the components of aggressive finance strategies? What is difference between the aggressive and conservative financing model? Under what circumstances would you use either one?

What is an asset? What is a liability? What is the difference between assets and liabilities? Can an organization operate without current liabilities? Explain.

Define factoring of accounts receivables. How does factoring effect cash management? Explain the difference between factoring and accounts receivable financing.

What is zero working capital? How would you define zero working capital? When would this methodology be used? Would this model be applicable to all organizations? Explain.

Week 4

Discussion Questions

What is investment banking? How would the investment banker assist an organization in going public? As a CFO, what information would you need to select an investment banker?

What is the difference between operating and financial leverage? What is the importance of assessing operating vs. financial leverage?

What are the risks of having an excessive amount of financial leverage in an organization? What is the degree of total leverage?

What is EBIT-EPS analysis? What is the indifference curve? How is risk factored into the EBIT-EPS analysis? What are the basic short comings of EBITs analyses?