Total Pages: 3 Words: 1219 Works Cited: 3 Citation Style: APA Document Type: Essay
Essay Instructions: Time Value of Money is one of the most important concepts in the financial world. The principles of time value analysis have many applications, ranging from setting up schedules for paying off loans to decisions about whether to acquire new equipment for a company. Time value of money is also called discounted cash flow analysis.
Your task for this module is to apply the concept of present value to your chosen SLP company. Suppose your company is selling a bond that will pay you $2,000 in one year from today. Keep in mind that if your company has financial difficulties in one year you might not get your full $2,000 back. Given that a dollar one year from now is always worth less than a dollar today, you most certainly would not pay a full $2,000 for this bond.
If you are highly risk averse or strongly prefer having money today to having money tomorrow, then you would pay significantly less than $2,000 for this bond. Higher inflation or high interest rates would also lead you to pay less for the bond. Also, the greater the chance of bankruptcy of your company the less you should be willing to pay for the bond.
Given the concepts of the time value of money, answer the following questions in a two to three page paper:
1) How much would you pay for this bond today? Take into consideration your own personal risk preferences, interest rates, inflation, and the probability your company will not be able to pay you back in one year. Note: no need for any math equations for this part. Just explain how much you would personally pay for a $2,000 bond from this company.
2) Based on your answer to the previous question, what would be your discount rate for this bond? Use the present value formulas from the background materials and show your work.
3) Pick two other companies in the same industry as your SLP company. One should be one that you would pay less for a $2,000 bond than you would from your SLP company and another one that you would pay more for a $2,000 bond from your SLP company. Explain why you would pay more or less for their bonds.
4) What do you perceive you have learnt in Module 2 SLP? Please provide your evaluation of the Module 2 SLP in brief.
Paper submitted to be re-written to address the following:
Thank you for your review of Starbucks? risk and comparison with it's competition. This has resulted in your understanding of the value of the $2000 Bond in just one year, but several of your comments are confusing to me so I'd like you to do this over!
First, you really don't explain why you'd look for a 10% return! Why not 8% or 12%. How did you arrive at being willing to pay $1818? What factors did you use, just your thoughts about a 10% interest rate, which is not to be found in the world today??
Later, you said that you " would probably pay less for the Caribou Coffee bond knowing that they are a stronger company and that they have a higher interest rate, but paying more for Panera Bread Company allows you to get more bonds with a similar, yet lower, interest rate than Caribou Coffee." Now, looking at your analysis, you discounted their stock price, but what we were asking is if you would pay more for a Caribou $2000 bond than you would for the Starbucks bond? And for Panera?
Since this is a financial analysis course, you should probably look closely at the financials to see if each company is a good risk! What's their level of debt, and what about their corporate profitability!?? It looks like you reached your conclusion based on their business potential, and that's OK, but look closer at the financials in the future, OK??
It's important to be specific in your answers here so I can understand your logic behind the decision.
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Total Pages: 2 Words: 723 Bibliography: 2 Citation Style: MLA Document Type: Research Paper
Essay Instructions: Time Inc.?s entry into the entertainment industry
1. How attractive is the merger of Time with Warner? What are the value enhancement opportunities?
2. What do you think of the proposed exchange ratio of 0.465 per Warner share? How much synergy is needed to make the merger attractive?
3. What are the motivations of the two management teams to support the merger? What prompted Paramount?s interest in Time?
4. Why are the investment bankers? valuations so much higher than the market values?
5. What legal, financial, and restructuring options does Time have to combat the Paramount bid? To ensure that it is not a target in the future?
6. What would you do as Mr. Munro? How would you explain a decision to reject the Paramount offer at the annual shareholders? meeting?
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Essay Instructions: Time Period Paper
Write about the revolutionary period/era in Mexican social development and describe the atmosphere of it. What happened and why? How did the era have a lasting effect on Mexico and its people? How did it affect the social classes and class in general? How can the remnants of that era be seen today?
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Essay Instructions: Time Magazine named ‘the Protester’ as the 2011 Person of the Year, and in doing so linked protest movements in a variety of contexts (Tunisia, Egypt, Syria, Libya, Bahrain, Russia, Greece and parts of Europe and North America) to a host of issues that will be familiar to any student of international politics, including human rights, worker’s rights, globalization, new information technologies, social media, public debt, global inequality and more. Compare and contrast protest movements in two different contexts (that have taken place over the last fourteen months) and discuss their impact, if any, on international politics. Locate your answer with reference to the theoretical perspectives. Make sure to have a concise and clear thesis
Throughout the Essay: Treatment of Theory
The essay must address the theoretical concerns as raised in the essay question (and as
covered in the course). This means that an entirely descriptive essay will not be successful.
Students must recognize the theoretical arguments that inform their own position and the
positions of those they are reading. What is important here is not simply affirming the
position that you have adopted, but providing a detailed engagement with how the other
perspectives view the same issue differently. Simply describing the general differences
between the approaches (for example by reiterating lecture notes) is not sufficient ??" you want
to demonstrate that you understand the application of the theoretical approaches to the
specific issue that you are addressing, and can argue why one perspective is more persuasive
than the others.
Throughout the Essay: Addressing the Question as Posed
The essay should address the question as posed, not go off on tangents that do not directly
focus on the concerns raised in the question. There are many ways to cut in to the topics
raised in the assignment questions, the point in this assignment is to organize your treatment
of the topic in terms of the framework provided by the question.
Throughout the Essay: Form, Style, Syntax and Grammar
The essay must be written in a style appropriate to a second-year university course. This
means that you must use proper grammar, syntax and make appropriate vocabulary choices.
Make sure you know how to punctuate properly, how to introduce direct quotes, and how to
write in proper English form. Use vocabulary that is appropriate to your subject and your
year level. This does not mean using the largest and most complex word, but the right word.
Use the Writing and Learning Resources available on the course web site and at the
University and read the appropriate chapters from relevant style guides.
Throughout the Essay: Sources
This is a research essay, you should be looking for as many sources as possible but we would
expect a minimum of six separate sources (outside of course readings). These need to be a
combination of scholarly sources and materials from reputable sources. For every six sources
you use, we expect four to be solid scholarly materials and the remaining two to be
information from a reputable source. For example, statistics generated by the United Nations
would be a reputable source of information, but we would expect this information to be used
in conjunction with scholarly materials. Journal articles and scholarly books are scholarly
sources; statements by UN departments, films, newspaper or magazine articles are not
scholarly sources ??" these latter can provide useful quotes, some direction to information, and
so on, but they cannot substitute for scholarly sources.
Throughout the Essay: Proper Citations
Sources used in the essay must be properly cited. Students must use and employ direct and
paraphrased quotes appropriately, and use a single citation format throughout the essay in a
consistent fashion. An improperly cited essay, no matter how well other elements of the
assignment were addressed, is grounds for failure of the assignment and a charge of academic
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