Inancial Management and Corporate Finance

Case 1:
Bank A offers to pay you a lump sum of $20,000 after 5 years if you deposit $9,500 with them today. Bank B, on the other hand, says that they will pay you a lump sum of $22,000 after 5 years if you deposit $10,700 with them today. Which offer should you accept, and why?
Case 3:
You have decided that you will sell off your house, which is currently valued at $300,000, at a point when it appreciates in value to $450,000. If houses are appreciating at an average annual rate of 4.5% in your neighborhood, for approximately how long will you be staying in the house?
You want to save $25,000 for a down payment on a house. Bank A offers to pay 9.35% per year if you deposit $11,000 with them, while Bank B offers 8.25% per year if you invest $10,000 with them. How long will you have to wait to have the down payment accumulated under each option?
and for your information just read it the intrudaction:

SUPPORT:
The Coursework and the final examinations serve several purposes:
1. They encourage you to valid and independent research. Your tutors will comment on the quality of your written work and the way in which you have presented the material.
2. Each assignment provides an opportunity for you to focus your study and gather information about various important concepts and teaching points in different parts of the course.
I will look for the following points when marking your assignments:
(a) An appreciation of the content of the material covered in the relevant parts
(b) An ability to distil information from many different sources.
(c) The ability to apply all of the accounting techniques, principles & rules.
Word processing your Reports:
The basic rule is a keep it simple. Donat spend unproductive hours trying to obtain fancy effects. Remember that even a state-of-the-art word-processing package cannot produce the same results as a good desktop publishing or graphic design package.
Good page layout
Please use standard A4 size paper (or computer paper) for your report. Your name and page number must appear at the top of each sheet. Please leave wide margins and space at the end of each sheet for tutor comments.
It is better to use double spacing so that you can easily handwrite corrections to your drafts, and tutors have space to engage with your points as you make them.
Readability
Readability
Use an easily readable typeface such as 10-point Arial for your text. Smaller typefaces are harder to read. You shouldnat need more than three, or at most four, levels of headings, and you can use a contrasting typeface such as Helvetica or Arial for these.
Make sure that you take notice of the advice on word length in the report.
Using other word-processing features
If your word-processing package allows it, use cell-based tables rather than tabs for laying out tables or columns of figures. (Tabs are for the most part a hangover from the days of manual typewriters and produce poor results in word processing.)
Use paragraph styles to produce a consistent appearance. You only need a few: a a?normala or a?body texta style for most of your essay, an indented style for quotations, examples, and so forth.
Donat overdo the use of italics a they are harder to read than normal (upright or a?romana) letters and will lose their impact if used too much.
You may be in the habit of using a spellchecker to check your work. If you do, remember that there are several ways in which it can fail to pick up your mistakes, for example if the word you have used is the wrong one, but has a spelling which the spellchecker recognises. You will probably need to double-check your work using a good dictionary.
Referencing
Reference your arguments. When producing academic work, convention dictates that we give credit to other peopleas work when we cite their theories or research findings to substantiate our arguments. You should use what is known as the Harvard system.
Plagiarism
If you submit a report that contains work that is not your own, without indicating this to the marker (that is, without acknowledging your sources) you are committing a?plagiarisma. This might occur in an assignment when:
i · Using a choice phrase or sentence that you have come across
i · Copying word-for-word directly from a text
i · Paraphrasing the words from a text very closely
i · Using text downloaded from the Internet
i · Borrowing statistics or assembled facts from another person or source
i · Copying or downloading figures, photographs, pictures or diagrams
i · Copying from the notes or essays of another student
i · Copying from your own notes which contain direct quotations
Plagiarism may occur inadvertently due to inexperience. So read carefully all the class handouts (and EAP handouts), especially statements concerning plagiarism and how to reference your sources.
The temptation to plagiarise may arise from lack of self-confidence or from a lack of understanding about the aims of the assessment and about what is required of you. That why it is crucial to seek your tutoras advice on this early in the course.
Copying the work of others would be counter-productive to your goal of understanding the course work and to real achievement. Most students will not wish to take such a negative approach to studying, as Hult International Business School does not tolerate it. You are encouraged to collaborate with others in studying, but submitted work copied from or written jointly with others is not acceptable. In this (and all other courses), therefore, you will be asked to sign a statement to confirm that all the assessment work you have submitted is your own. Submitting work that has been done by someone else and persistent borrowing of other peopleas work withoutcitation are obvious instances of plagiarism and are regarded as cheating.
Paying for work from other sources and submitting it as your own is also cheating. It is intellectually dishonest to cheat and thus give yourself an unfair advantage over other students.
Extenuating circumstances:
Please note no extensions are given except in the case of exceptional circumstances. Examples of such circumstances include sickness/illness (only where supported by a valid, original medical certificate), and critical illness of a close relative (supported by evidence).
All requests for extensions must be approved by the course leader.
Submitting your written report:
For this course, reports must be submitted via Turnitin ONLY (More details will be given in class). You should ensure that your assignment is submitted to arrive by 6.30 pm on the cut-off date. Any assignments received after 6.30 will not be accepted unless an extension has been previously agreed.

Inancial Management and Corporate Finance

Each group picks a company. The company should be publicly traded and have at least one year of trading history and one set of annual financial statements. The company can be listed in any market.
Avoid the following:
a? Financial service firms (banks, insurance companies & investment banks)
a? Money losing companies
a? Companies with large capital arms (GE and the auto companies)
a? Real estate investment trusts

Each group should produce a report that answers the following questions:
Corporate Analysis:
i · Is this a company where there is a separation between management and ownership? If so, how responsive is management to stockholders?
i · What are the other potential conflicts of interest that you see in this firm?
i · How does this firm interact with financial markets? How do markets get information on the firm?
i · How does this firm view its social obligations and manage its image in society?
Risk Analysis:
i · What is the risk profile of your company? How much overall risk is there in this firm? Where is this risk coming from (market, firm, industry or currency)? How is the risk profile changing?]
Debt Ratios:
What are the different kinds or types of financing that this company has used to raise funds? Where do they fall in the continuum between debt and equity?
i · How large, in qualitative or quantitative terms, are the advantages to this company from using debt?
i · How large, in qualitative or quantitative terms, are the disadvantages to this company from using debt?
i · From the qualitative trade off, does this firm look like it has too much or too little debt?
Valuation:
i · What growth pattern (Stable, 2-stage, 3-stage) would you pick for this firm? How long will high growth last?
i · Whatis the a?key variablea? (risk, growth, leverage, profit margins...) driving this value?