Evaluate the impact of financial management practices on organizational decision-making.<\/p>\n
PC-5.1: Use language that is clear, concise, and organized.<\/p>\n
One career role in the financial planning industry is that of the investment advisor. In this Assessment, you act in this role for the sake of the mini-case study to respond to questions regarding financial management practices that affect organizational decision-making. Read the case and the questions carefully and respond in a thorough manner.<\/p>\n
Complete the following questions below. Prepare this Assignment as a Word\u00ae document. List each question (a\u2013r), followed by your answer. Please submit this Assignment through the Dropbox.<\/p>\n
Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of XYZ, Inc. One of the firm\u2019s clients is Sofia Matias, a professional tennis player who has just come to the United States from Chile. Matias is a highly ranked tennis player who would like to start a company to produce and market apparel she designs. She also expects to invest substantial amounts of money through XYZ, Inc. Matias is very bright, and she would like to understand in general terms what will happen to her money. Your boss has developed the following set of questions you must answer to explain the U.S. financial system to Matias.<\/p>\n
Why is corporate finance important to all managers?
\nDescribe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
\nHow do corporations go public and continue to grow? What are agency problems? What is corporate governance?
\nWhat should be the primary objective of managers?
\nDo firms have any responsibilities to society at large?
\nIs stock price maximization good or bad for society?
\nShould firms behave ethically?
\nWhat three aspects of cash flows affect the value of any investment?
\nWhat are free cash flows?
\nWhat is the weighted average cost of capital?
\nHow do free cash flows and the weighted average cost of capital interact to determine a firm\u2019s value?
\nWho are the providers (savers) and users (borrowers) of capital? How is capital transferred between savers and borrowers?
\nWhat do we call the cost that a borrower must pay to use debt capital? What two components make up the cost of using equity capital? What are the four most fundamental factors that affect the cost of money, or the general level of interest rates in the economy?
\nWhat are some economic conditions that affect the cost of money?
\nWhat are financial securities? Describe some financial instruments.
\nList some financial institutions.
\nWhat are some different types of markets?
\nAlong what two dimensions can we classify trading procedures?
\nWhat are the differences between market orders and limit orders?
\nExplain the differences among broker-dealer networks, alternative trading systems, and registered stock exchanges.
\nBriefly explain mortgage securitization and how it contributed to the global economic crisis.
\nThe Module 1 Competency Assessment has three parts.<\/p>\n
Part 1 Describe the organizational form options.<\/p>\n
Explain Advantages of organizational forms
\nExplain Disadvantages of organizational forms
\nPart 2 Identify Primary Objectives of Managers<\/p>\n
Interpret the ethical and social responsibilities to society
\nDiscuss how stock prices affects Society
\nPart 3 Explain Economic conditions associated with cost of money<\/p>\n
Describe weighted average cost of capital
\nDescribe how capital transfers between savers and borrowers
\nIdentify economic conditions that affect the cost of money<\/p>\n","protected":false},"excerpt":{"rendered":"
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