GCU FIN504 Discussions Latest 2021 April (Full)

FIN504 Finance Principle

Week 1 Discussion

DQ1 What does it mean to say that managers should maximize shareholders' wealth "subject to ethical constraints"? What ethical considerations might factor into decisions that result in lower cash flow and stock price effects than they might have otherwise been valued?

DQ2 What role do primary financial markets play in the current economy? What role do secondary markets fill? Describe the relationship between financial institutions and financial markets and suggest a method by which this relationship could run smoother. Support your rationale with at least one citation from the literature.

FIN504 Finance Principle

Week 2 Discussion

DQ1 Research a company currently in the business news. Explain why it has been receiving media attention and describe the company's current financial condition compared to the rest of the industry. Support your answer with financial ratios and cite any references used.

DQ2 Describe three elements that can cause uncertainty within an enterprise's cash budget and provide your rationale for including each element. If you were the CFO of a company, what techniques would you use to cope with this uncertainty? How might your coping strategies differ when managing a large company (1,000+ employees) versus a significantly smaller company (100+ employees)?

FIN504 Finance Principle

Week 3 Discussion

DQ1 What effect does compounding interest more frequently than annually have on its future value and the effective annual rate (EAR)? Explain. How would you explain the difference between the annual percentage rate (APR) and effective annual rate (EAR) to a friend with no background in finance?

DQ2 Provide an example, with rationale, of an area in your personal life where you would like to apply time value of money concepts. What can you do to create a more financially sound future for yourself?

FIN504 Finance Principle

Week 4 Discussion

DQ1 Describe the impact of the coupon rate and yield to maturity (YTM) on bond par value and market value. If you were the CFO of a company and the Federal Reserve Bank decided to increase the interest rate by 1% beginning next quarter, what steps would you take to raise capital from the financial markets?

DQ2 Explain why an individual might not be convinced to make a buy/sell decision based on the Gordon growth model (also known as the dividend discount model). Support your rationale with at least one citation from the literature.

FIN504 Finance Principle

Week 5 Discussion

DQ1 If you were a finance leader in a business organization, how would you apply the concept of risk and return in your daily decision-making processes? How might you explain the concept of risk vs. return trade-off during a shareholders' meeting? How would a proposed initiative to diversify current holdings factor into the discussion about total risk for the organization? Explain.

DQ2 Describe the logic underlying the use of target weights to calculate the weighted average cost of capital (WACC) and compare this approach with the use of historical weights. Which is the preferred weighting scheme and why? Support your rationale with at least one citation from the literature.

FIN504 Finance Principle

Week 6 Discussion

DQ1 Explain how a net present value (NPV) profile is used to compare capital projects. How does this profile compare to that of internal rate of return (IRR)? How does reinvestment affect both NPV and IRR? Support your rationale with at least one citation from the literature.

DQ2 Capital budgeting can be affected by factors such as exchange rate risk, political risk, transfer pricing, and strategic risk. Select a mid- or large-sized business organization and explain how each of these factors can affect its capital budgeting. Which factor poses the greatest threat to your selected organization and why? What measures can stakeholders take to reduce adverse impacts of these factors? Support your rationale with at least one citation from the literature.

FIN504 Finance Principle

Week 7 Discussion

DQ1 Research publicly traded companies and select two companies in different sectors. Compare the capital structure for each and explain your conclusions on the similarities and differences. What support can you provide for why each company adheres to their chosen structuring mechanisms?

DQ2 Why is understanding the relationship between the cash conversion cycle (CCC) and net working capital important to the contemporary business executive? Explain ways in which executive decisions regarding the CCC and net working capital can affect a company both adversely and beneficially. Support your response with a specific example from the business world.

FIN504 Finance Principle

Week 8 Discussion

DQ1 Reflect on your experience developing a comprehensive financial analysis over the span of this course. Which components were the easiest to develop? Which components were the hardest? What other challenges did you encounter and how did you resolve them? Did anything surprise you as you worked through this project? What are key takeaways you learned in this course that you can apply in the future?

DQ2 Provide a brief summary of the company you chose to assess for the financial analysis project and your reasons for selecting it. Explain the process your group used to analyze the company's future financial health and share your results. What do you anticipate about the stability of the company's financial future? What processes and systems did your group recommend for your chosen company to avoid bankruptcy, maintain balance, and ensure a continual flow of funds in the coming 3 to 5 years?