FIN 419 Week 3

Individual Assignment: Assignments from the Readings

Resource: Principles of Managerial Finance

Prepare responses to the following problems from the text:

Ch. 2: P2-1, P2-2

Ch. 4: P423, P432, P446. P448

Ch. 6: P615

Ch. 7: P76

Learning Team Assignment: Capital Valuation Paper

Resource: Financial Outcomes Paper from Week Two

Write a 1,050- to 1,750-word paper in which you justify the current market price of the organizations debt, if any, and equity, using various capital valuation models. Complete the following in your paper:

Show calculations that support your findings, including those involving rates of return.

Defend which valuation model best supports your findings.

Format your paper consistent with APA guidelines.

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.