Considering the evolving landscape of work and employee expectations, how can organizations design and adapt their employee benefits packages to attract and retain top talent while also ensuring long-term financial sustainability for the company?
Your responsibility in this task involves crafting a minimum of three distinct posts spread across three different days. These posts should showcase a significant level of insight and contemplation. Your initial post should serve as your response to my inquiry, while the subsequent two posts will comprise responses to both your peers and myself. It is of utmost importance that your responses to other posts maintain a high standard of well-crafted and intellectually stimulating discourse.
Please ensure that your initial post is submitted by Thursday at 11:59 PM. Furthermore, keep in mind that the week’s activities conclude on Monday at 11:59 PM, which also serves as the deadline for your peer review postings.
Each of your posts should be at least one paragraph in length, equivalent to approximately 150 words. Quantity is important, but it should be accompanied by a focus on quality. It’s essential to note that Wikipedia cannot be used as a source for this class. Additionally, avoid copying and pasting from your sources; instead, read and then convey the information in your own words. This means you should paraphrase and cite your sources following the APA style, except when responding to peer postings.
Remember, your responsibility entails posting three times: your initial post and responses to two of your peers’ postings
Planning, arranging, and effectively managing funds for scale-up at the individual level as well as for bigger organizational goals are among the many responsibilities involved in the financial management process. The idea of financial management encompasses tasks like forecasting, accounting, and investment management. Financial management benefits both people and corporations by efficiently allocating resources, controlling risks, and accomplishing financial goals.
Budgeting
Setting a budget is crucial when handling money. Through planning, budgeting enables control of both income and spending. By making thoughtful spending decisions, a solid budget may assist people or organizations in managing resources over time.
In studying financial management, it is essential to comprehend how different budget categories operate. Understanding several budget categories, such as operating resources, capital reserves, budgets for funds review, and general financing arrangements, is necessary for doing good financial administration research.
Forecasting
The practice of forecasting includes making predictions about future financial results. Predicting an organization’s financial situation or development potential is so crucial that whole teams are often formed to handle it. Executives may assess potential risks by doing this, and it also enables businesses to tap into untapped markets.
Researching Financial Management requires an understanding of a variety of forecasting methods, including time-series analysis and other qualitative or quantitative methods. When predicting what will happen next, qualitative forecasting depends heavily on expert opinions in addition to personal opinions. While quantitative forecasting mostly relies on using statistics and data sets to estimate the financial prospects
Financial management accounting
Accounting is the process of recording, categorizing, and summarizing financial transactions. Accounting, a task that entails recording all monetary changes, allows businesses or individual investors to comply with legislative requirements controlling money. Accounting allows for effective monitoring of an organization’s spending.
When studying for good financial management, it is crucial to understand many categories of accounting, such as managerial economics and taxes. In contrast to managerial accounting, which focuses more on administrative process-oriented papers, financial accounting focuses on providing public-ready profits sheets. Tax accounting is the process of preparing taxes in line with applicable law while assuring adherence with that same law.
Management of investments
Investment management is the process of managing investments via actions including asset allocation, security selection, and hazard control. One of the various goals attained by investment management operations including asset allocation, securities choices, or risk reduction is maximizing returns while controlling risks. Individuals and businesses depend on investment management services to meet certain financial goals like maximizing returns or risk minimization.
Financial management requires knowledge of a variety of investment options, including shares, stocks, and real estate. It is essential to have knowledge of many investment types, such as bonds, equities, and real estate, in order to investigate all possible paths for strategic financial planning, including giving credit to strategies like value investing, growth investing, or index investing.
Management of Risk
Financially, risk management techniques that include the phases of identification, evaluation, and mitigation may significantly aid both people and organizations in better managing their uncertainties. The key to effective risk management, whether for personal finances or businesses, is to identify potential risks, assess them based on likelihood, and then implement controls targeted at preventing or lessening any adverse effects.
When studying financial management, many risk types are taken into consideration. These include verifiable weaknesses including unstable marketing, declining credit scores, and unclear operational chaos. While studying financial management, it is important to have an understanding of the many risk management strategies that may be applied. These are techniques that focus on transmission, mitigation, or avoidance.
In financial management, financial statements
Financial statements are significant documents that provide information about a company’s financial performance. One must review certain reporting items like balance sheets, income statements, and U.S. Cash flows related report displaying changes in various accounts over time in order to get insight into the economic progress achieved by a business over a period. Financial Statements are important records that may be used to monitor corporate profits or to comply with legal or authoritative requirements for people or businesses.
When learning about financial management, reading and comprehending financial accounts is crucial. When learning about financial management techniques, it is essential to understand a variety of financial concepts. For example, reading financial statements correctly and understanding estimates like current ratios and debt equity require a sincere understanding that could provide important insight into operational standing.
Plan your taxes
Taxpayers may maximize their finances by minimizing risk exposure and obtaining maximum net incomes by making wise judgments regarding the time of payments as well as payment locations, among other criteria. This is known as smart tax planning. Experts in financial management may assist customers in lowering their relative liabilities and improving after-tax income by helping them make strategic decisions about the payment of different types of taxes based on the jurisdictional rules controlling them (a process known as tax planning).
Understanding the various tax laws as they relate to individuals and businesses is crucial for thorough financial management research. In order to do efficient financial management research, it is essential to comprehend the diversity of tax planning options accessible, such as those that delay taxes or grant credits.
Financial Tools and Software
Utilizing reliable financial tools is essential since making educated financial choices demands precise data. Financial software may help you manage your finances and make educated choices about anything from investing to budgeting. Using the variety of sophisticated financial instruments that are now accessible, managing personal or corporate money may become simple. Modern software offers alternatives like account administration services, along with the ability to save time and money and promote trustworthy decision-making.
While conducting a research on economic administration, having a solid understanding of various financial instruments, such as accounting software and investment monitoring tools with individual resource technologies, might be crucial. Understanding different types of financial tools, such as accounting software, investment management systems, and personal finance tools, is essential to developing discernment regarding a well-rounded economic viewpoint. Additionally, knowledge of properly installing the aforementioned services is required for anybody undertaking this activity.
Financial Education and Financial Management Training
Professionals may attain long-term financial objectives by using the financial information they have acquired from these courses. Financial training includes instruction in managing investments, creating budgets, and creating sound accounting procedures. Individuals & Businesses that acquire required Skills through Financial Education & Coaching may bridge the gap between selecting sensible investments vs. potential dangers while attaining profitable outcomes.
You need to learn in many different methods if you want to manage your money from a professional standpoint. These techniques could involve taking classes that lead to certification. Not only should you enroll in the programs that come up in a search to learn about finance, but you should also read reviews of past training to see whether or not the specific offers are more advanced.
10 examples of the most likely financial management exam questions
Why is financial management important? What is it?
• What precisely does budgeting include, and how can it benefit both individuals and businesses?
• Why is forecasting seen as a crucial component of financial management?
• Accounting is a technique that helps both people and companies. What precisely is it?
Why is investment management important? What is it?
What are the goals of risk management, and how does it help both people and businesses?
Which methods, and what are they named, may be used to better understand an organization’s financial performance?
Why is tax planning necessary and what is it?
• How can financial software and tools help with more competent personal or corporate financial management?
• How can individuals and organizations achieve their financial goals via the development of good financial knowledge through learning opportunities?
Financial Planning and Wealth Management are crucial aspects of managing personal or institutional finances and investments and we at CapitalEssayWriting.com offer assignment assistance in this field. Financial Planning involves creating a comprehensive strategy to achieve financial goals, while Wealth Management focuses on preserving and growing wealth through investment management and other financial services.
Here’s an overview of these areas:
Financial Planning:
Setting goals entails working with customers to determine their financial objectives, such as retirement planning, financing for college, buying a home, or launching a business.
Budgeting and Cash Flow Management: Analyzing spending, saving, and income trends will help you develop a budget that will support your financial objectives and enable efficient cash flow management.
Risk management involves assessing potential risks related to life events like disability, disease, or death and advising on the most suitable insurance coverage, such as life, health, disability, and long-term care insurance.
Tax planning is the process of coming up with ways to reduce tax obligations, increase deductions, and improve tax-efficient investments.
Retirement Planning: Analyzing retirement needs, estimating future income requirements, and developing strategies to accumulate savings through retirement accounts, such as 401(k) plans or individual retirement accounts (IRAs).
Investment Planning: Assessing risk tolerance, time horizons, and investment objectives to develop an investment strategy aligned with the client’s financial goals.
Estate Planning: Assisting in the creation of wills, trusts, and other estate planning tools to ensure the orderly transfer of assets and minimize tax implications.
Education Planning: Creating strategies to save and invest for educational expenses, including 529 plans and education savings accounts (ESAs).
Wealth Management:
Investment management is the process of creating and putting into practice investment plans depending on the goals, risk tolerance, and market conditions of the customer. This includes choosing appropriate investment vehicles, diversifying the portfolio, and allocating assets appropriately.
Reviewing investment portfolios frequently, tracking performance, and rebalancing holdings to make sure they are in line with client goals and risk tolerance.
Risk assessment and management involves identifying and mitigating investment risks, such as market, liquidity, and specific investment hazards.
Financial Reporting: Providing clients with frequent information on investment performance, portfolio valuation, and income.
Estate and Trust Services: Assisting with asset allocation, tax planning, and distribution strategies, as well as the management and administration of trusts.
Retirement Income Planning: Developing strategies to generate income during retirement, such as managing withdrawals from retirement accounts and optimizing Social Security benefits.
Tax Planning and Coordination: Collaborating with tax professionals to optimize tax strategies and minimize tax liabilities across investment portfolios and other financial activities.
Philanthropic Planning: Assisting clients with charitable giving strategies, including donor-advised funds, charitable trusts, and foundations.
To excel in Financial Planning and Wealth Management, professionals often hold certifications such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA). They should possess strong analytical skills, knowledge of financial markets and investment vehicles, and the ability to understand and navigate complex financial regulations and tax laws. Additionally, effective communication and relationship management skills are essential for building trust and understanding client needs.
We offer tips and tutoring services about Financial Modeling & Valuation Analyst help by finance experts at Capitalessaywriting.com. The role of a Financial Modeling and Valuation Analyst typically involves analyzing financial data, creating financial models, and conducting valuations to support various financial decisions within an organization. This role requires a strong understanding of finance, accounting, and advanced Excel skills.
Here are some key responsibilities of a Financial Modeling and Valuation Analyst:
1. Financial analysis: Investigating in-depth corporate performance, market trends, and financial statements to assess financial health and pinpoint areas for improvement.
2. Financial Modeling: Creating intricate financial models to predict future financial performance, assess investment opportunities, and gauge the effects of various hypotheses and scenarios.
3. Valuation: The process of valuing businesses, assets, or investment opportunities by applying a variety of techniques, including discounted cash flow (DCF), comparable company analysis (CCA), and prior transactions analysis (PTA).
4. Data gathering: Accurately and completely gathering and organizing financial and non-financial data from internal and external sources.
5. Reporting and Presentations: Creating financial reports, speeches, and investment memoranda to share information with stakeholders, such as management, investors, and clients.
Risk Assessment: Assessing financial risks and conducting sensitivity analyses to evaluate the impact of different risk factors on financial outcomes.
Industry Research: Conducting research on industry trends, competitive landscapes, and macroeconomic factors to provide informed insights and support decision-making.
Financial Planning and Budgeting: Assisting in the development of financial plans and budgets, providing financial projections and analysis to support strategic planning.
Collaboration: Working closely with cross-functional teams such as finance, accounting, operations, and strategy to gather data, validate assumptions, and ensure alignment with business objectives.
To excel in this role, you should have a solid foundation in finance and accounting principles, proficiency in financial modeling techniques, and strong analytical skills. It’s also beneficial to stay updated with industry trends, regulatory changes, and best practices in financial analysis and valuation.
Additionally, proficiency in using spreadsheet software, such as Microsoft Excel, and familiarity with financial modeling tools or programming languages like Python can be valuable in enhancing your efficiency and effectiveness as a Financial Modeling and Valuation Analyst.
Get help in financial analysis in a business plan at CapitalEssayWriting.com finance experts. Financial analysis is a crucial component of a business plan as it helps assess the financial health, profitability, and viability of a business. It involves evaluating historical financial data, making projections, and using various financial metrics and ratios to gain insights into the company’s performance.
Here are the key aspects to consider when conducting financial analysis in a business plan:
Historical Financial Information: Examine the company’s prior income statements, balance sheets, and cash flow statements to start. This makes it easier to spot trends, patterns, and swings in cash flows over time as well as in revenues, costs, assets, and liabilities.
Revenue Analysis: Assess the sources of revenue and their contribution to the overall business. Identify the company’s primary revenue streams, such as product sales, service fees, or subscriptions. Analyze the growth rate, seasonality, and customer segments driving the revenue to understand the business’s revenue generation potential.
Cost Analysis: Evaluate the company’s cost structure and identify the major cost components. This includes analyzing costs of goods sold (COGS), operating expenses, and any other significant costs incurred by the business. Understanding cost drivers and trends helps in managing expenses effectively and optimizing profitability.
Profitability Analysis: Measure the company’s profitability using key financial ratios such as gross profit margin, operating profit margin, and net profit margin. These ratios provide insights into the company’s ability to generate profits and control costs. Compare the profitability ratios to industry benchmarks to assess the company’s performance relative to its competitors.
Liquidity Analysis: Evaluate the company’s liquidity position by analyzing its current assets and liabilities. Key liquidity ratios such as the current ratio and quick ratio assess the company’s ability to meet short-term obligations. This analysis helps determine the company’s ability to manage cash flow, pay bills, and sustain operations.
Financial Efficiency Analysis: Assess the company’s financial efficiency by analyzing various ratios such as inventory turnover, accounts receivable turnover, and accounts payable turnover. These ratios provide insights into the company’s effectiveness in managing inventory, collecting receivables, and paying its suppliers. Higher turnover ratios indicate better financial efficiency.
Cash Flow Analysis: Evaluate the company’s cash flow statements to understand its cash inflows and outflows. Analyze the cash flow from operations, investing activities, and financing activities. Assess the company’s ability to generate positive cash flow, manage working capital, and fund investments and growth initiatives.
Financial Projections: Develop financial projections based on historical data, market analysis, and future business plans. This includes projected income statements, balance sheets, and cash flow statements. Projections should be realistic, supported by thorough research and analysis, and aligned with the overall business strategy.
Sensitivity Analysis: Perform sensitivity analysis to assess the potential impact of changes in key variables on the financial projections. This helps identify the risks associated with different scenarios and enables the development of contingency plans to mitigate risks.
Risk Assessment: Identify and evaluate financial risks such as market volatility, regulatory changes, competition, and operational risks. Assess the potential impact of these risks on the company’s financial performance and include risk mitigation strategies in the business plan.
Funding Requirements: Determine the funding requirements of the business, including startup costs, working capital needs, and expansion plans. Clearly articulate the funding requirements and demonstrate how the funds will be utilized to drive growth and profitability.
Return on Investment (ROI) Analysis: Assess the potential return on investment for investors by calculating key metrics such as return on equity (ROE) or return on investment (ROI). This helps attract potential investors by showcasing the financial attractiveness of the business opportunity. Feel free for Help in financial analysis in a business plan for any need in tutoring.
Here are some potential dissertation topics in the field of International Financial Management:
Impact of Exchange Rate Volatility on International Investment Decision-Making: A Case Study of Multinational Corporations.
Financial Derivatives’ Role in Managing Currency Risk in International Business Operations.
Cross-Border Mergers and Acquisitions: Strategies, Performance, and Challenges.
The Impact of International Financial Reporting Standards (IFRS) on Financial Performance and Investment Decisions.
A Comparative Analysis of the Determinants of Foreign Direct Investment (FDI) Inflows in Emerging Economies.
Evidence from Multinational Corporations on the Effectiveness of Hedging Strategies in Mitigating Foreign Exchange Exposure.
Corporate Governance Practices and International Financial Management in Developed and Developing Countries.
Impact of International Trade Policies on Financial Performance and Risk Management of Exporting Firms.
International Capital Budgeting Techniques Evaluation: Approaches, Challenges, and Best Practices.
The Role of Multilateral Development Banks in Financing Emerging Market Infrastructure Projects.
An examination of country risk and its impact on international portfolio investment.
Lessons Learned and Risk Mitigation Strategies from Global Financial Crises.
Green Finance and Sustainable Investment: Opportunities and Challenges for International Financial Institutions.
Corporate Tax Avoidance in International Operations: Determinants and Consequences.
The Efficiency of the Foreign Exchange Market and Its Implications for International Financial Management.
These subjects address a broad variety of foreign Financial Management challenges, such as exchange rate risk, foreign investments, financial reporting, governance, and sustainable finance. Remember to fine-tune and narrow down your subject depending on your individual interests, research gaps, and data availability. Consult your academic adviser to check that the subject you’ve picked is compatible with the criteria and goals of your dissertation.
The Key Topics and Trends in International Financial Management. International financial management has become a vital component of corporate operations in an era of global interconnection. It include managing financial resources across borders, managing foreign currency risks, and analyzing investment prospects in other nations. This article examines the important problems and new trends in international financial management, emphasizing the importance of these issues for firms functioning in today’s globalized world. I. Exchange Rate Risk Management: Managing exchange rate risk is a major concern for international trade organizations. This subject delves into numerous currency risk-hedging tactics, such as forward contracts, currency options, and currency swaps. It also looks at how financial derivatives are used and how international capital markets play a role in controlling exchange rate risk. II. International Investment and Financing choices: Making investment and financing choices in overseas markets is part of international financial management. This issue dives into the different influences on these choices, such as political, economic, and regulatory concerns. It looks at how financial analysis and valuation methods are used to evaluate investment prospects, as well as the significance of capital budgeting and cost of capital in international finance choices. III. Cross-Border Mergers and Acquisitions: Cross-border mergers and acquisitions (M&A) are a frequent strategy for businesses looking to develop worldwide. This issue delves into the complexity of cross-border mergers and acquisitions, such as cultural differences, legal frameworks, and finance arrangements. It also investigates the function of due diligence in limiting risks and guaranteeing the success of an M&A transaction. IV. International Financial Reporting Standards (IFRS): International financial reporting standards (IFRS) offer a standardized set of accounting rules for businesses operating in many countries. This subject delves into IFRS adoption and implementation, as well as the problems and advantages of international financial reporting. It also investigates the function of financial statement analysis in assessing the performance of multinational corporations. V. Emerging International Financial Management Trends (200 words): A. Digital Transformation: Technology integration in international financial management is revolutionizing conventional activities such as cross-border payments, risk management, and investment research. This subject looks at how digital transformation may improve the efficiency and efficacy of international financial management systems. B. Sustainable Finance: As the focus on environmental, social, and governance (ESG) factors grows, sustainable finance is becoming an increasingly important part of international financial management. This subject investigates the role of sustainable finance in risk mitigation and long-term value creation for stakeholders. C. Global Economic Trends: Global economic trends, such as trade policy alterations, geopolitical conflicts, and demographic changes, have an impact on international financial management. The ramifications of these changes for international financial management practices and strategies are examined in this subject. International finance is a complicated and dynamic sector that requires a thorough grasp of financial markets, regulatory structures, and cultural differences. Organizations may handle the hurdles and capitalize on the benefits of operating in a globalized environment by researching important issues and emerging trends. Effective international financial management techniques may boost an organization’s competitiveness and sustainability, allowing it to prosper in today’s fast changing business climate.
Touchpoint Reflections: This is a new type posting that occurs in the same type portal as the discussion thread. However, these are treated as “mini”-weekly assignments”. You will be able to see and read the posts of peers but are not required to respond to them. However, if someone responds to your TPR, replying their post is always the collegial thing to do. Your grade is not affected either way. There are specific formatting and content guidelines. Remember to use the headings as defined to address each section, Experience, Reflection, Implications, in your responses. A downloadable version of the guidelines, which includes further information, is available for access below. You are encouraged to download these guidelines and rubric to avoid the need for referring back to this page for the link. Touchpoint Reflection Guidelines (Weeks 1-3, and 8) Touchpoint Reflection Rubric (Weeks 1-3, and 8) EXPERIENCE Understanding how your organization is reimbursed for services depends on several components. Assess your organization and identify its care delivery system and payer mix make up. Include percentages represented by each payer group. Identify the key people in your organization from whom you obtained your information. Perhaps it is your unit director, operational directors, financial officers, CNOs. Your direct supervisor might be able to point you in the right direction, Since the information required is often available to the public through public reports you might also access the information through online searches of internal systems or external internet searches. REFLECTION Based on this data, discuss the assumptions that could be made about the population demographics for your institution. What influence do these variables have on the types of services offered at your facility? IMPLICATIONS FOR THE FUTURE What might your analysis tell you about the long-term health of your community? What future needs might be identified? Search entries or author
Introduction & Overview This is the ISOL 633 Residency Project: Portfolio Assignment, which is a label that merely reflects that one of the overarching M.S. Information Systems Security degree program’s Learner Outcomes (a/k/a, “PLOs”; see syllabus and below) will be tested in your work. This is a relatively light research and writing project to be done in a group unless your Instructor advises you to conduct it individually. Although it is relatively light, for example as compared to a master’s thesis or a dissertation, it is an academic research paper that requires rigor, commitment, and care. In ISOL 633 all your work is focused on obtaining the five Course Objectives (also on the syllabus) and this MSISS PLO: ✓ Program Outcome 3.1- Students determine which laws apply to different types of business environments. A successful Portfolio will unequivocally prove that your group has attained the PLO, which is partially why this is not due until the end of the term (see your course dates for details). Also, a successful Portfolio will evince graduate-level written English, and conformity to APA Style guidelines. See the Residency Project: Portfolio Assignment’s rubric for a detailed view about how to learn the most in this process, and how to earn the most in terms of a grade on the work. Requirements Writing Style and Constructive Requirements Through experience it is clear that, for some reason, page length is top-of-mind amongst students’ curiosities. You are required to write at least five substantive pages (excluding Title, Abstract, References, and Appendices) and no more than 10 without approval from your Instructor. If you are familiar with APA Style, which is another requirement, you know that the parenthetical above points to the main components of this Portfolio Assignment: Title Page, Abstract Page, Body, References, and Appendices if needed. As graduate students studying in STEM sciences you must follow APA. There are ample resources in UC’s Library to learn how to conform. Besides the Library, you can get all the help desired from UC’s The Learning Commons and its Writing Center. You have no excuse to fail at these basic style and construction requirements. This is the so-called low-hanging fruit. Experience shows us that far too few of you will heed this seemingly simple direction. Please take advantage of these resources lest your excellent research and analyses never actually gets communicated. Sometimes the mode is as important as the message. See the course materials for links and tons of help in this vein.ISOL Residency Project: Portfolio Assignment 2 The Research Challenges Your group’s task is to conduct reliable, valid, scholarly research about one of the following bodies of law, and then discuss your findings and critical thoughts about it. As a separate assignment, your group will also present the research and its findings in a way that engages and informs an audience. There have been and will be many areas of information security and privacy laws, so select one of the options that engages you, or perhaps relates to work you’re doing. 1. Laws Influencing Information Security and Privacy in the Financial Sector Select one American financial institution that frames your research. Describe the organization, its business(es), its scope, and any additional descriptive information that will inform your reader about your subject matter. Describe and define at least one the laws focused on compliance within the financial sector that came up during our course. Research the law itself, any legal cases that were based on that law, and the critique of the law that you found through your research. Of course, if your selected financial institution was involved in such litigation, or has published their critique, include that information too. In addition to compliance laws that directly target financial institutions, countless other laws apply to them. Use the U.S. Patent and Trademark Office’s website to discover whether your selected institution has been awarded intellectual property rights for their trademarks, patents, or IP. Describe whether and how it protects its trade secrets. Describe for your reader some of the most prominent criminal or tort risks that your entity faces; or perhaps has been involved in. In addition to risks in the realms of criminal or tort law, every organization faces the potential risk of enduring a cyber-attack or other incident that must be followed by a forensics investigation. Keeping the focus on your organization and the financial sector, research and discuss an incident or case in which such an institution was compelled to go through the forensic investigation process. There are no sectors exempt from those incidents or cases, regrettably, so be diligent and you will find one to discuss. Conclude the Portfolio with your overall assessment of whether the legal system—from compliance mandates, to IT, criminal, and tort laws, to forensic investigations—benefits, hurts, or otherwise affects the organization. Assume the role of information security and privacy risk consultant in this section. 2. Laws Influencing Information Security and Privacy in the Education Sector Select one American academic institution that frames your research. Describe the school, its place in academia, its student body and curricular expanse, and any additional descriptive information that will inform your reader about your subject matter. Describe and define at least one the laws focused on compliance within the education sector that came up during our course. Research the law itself, any legal cases that were based on that law, and the critique of the law that you found through your research. Of course, if your selectedISOL Residency Project: Portfolio Assignment 3 institution was involved in such litigation, or has published their critique, include that information too. In addition to compliance laws that directly target educational institutions, countless other laws apply to them. Use the U.S. Patent and Trademark Office’s website to discover whether your selected institution has been awarded intellectual property rights for their trademarks, patents, or IP. Describe whether and how it protects its trade secrets. Describe for your reader some of the most prominent criminal or tort risks that your entity faces; or perhaps has been involved in. In addition to risks in the realms of criminal or tort law, every organization faces the potential risk of enduring a cyber-attack or other incident that must be followed by a forensics investigation. Keeping the focus on your organization and the educational sector, research and discuss an incident or case in which such an institution was compelled to go through the forensic investigation process. There are no sectors exempt from those incidents or cases, regrettably, so be diligent and you will find one to discuss. Conclude the Portfolio with your overall assessment of whether the legal system—from compliance mandates, to IT, criminal, and tort laws, to forensic investigations—benefits, hurts, or otherwise affects the institution. Assume the role of information security and privacy risk consultant in this section. 3. Laws Influencing Information Security and Privacy in the Healthcare Sector Select one American healthcare organization (“covered entity” in HIPAA parlance) that frames your research. Describe the organization, its components assuming it’s a healthcare “system,” its business in general, and any additional descriptive information that will inform your reader about your subject matter. Describe and define at least one the laws focused on compliance within the healthcare sector that came up during our course. Research the law itself, any legal cases that were based on that law, and the critique of the law that you found through your research. Of course, if your selected covered entity was involved in such litigation, or has published their critique, include that information too. In addition to compliance laws that directly target healthcare institutions, countless other laws apply to them. Use the U.S. Patent and Trademark Office’s website to discover whether your selected institution has been awarded intellectual property rights for their trademarks, patents, or IP. Describe whether and how it protects its trade secrets. Describe for your reader some of the most prominent criminal or tort risks that your entity faces; or perhaps has been involved in. In addition to risks in the realms of criminal or tort law, every organization faces the potential risk of enduring a cyber-attack or other incident that must be followed by a forensics investigation. Keeping the focus on your organization and the healthcare sector, research and discuss an incident or case in which such an institution was compelled to go through the forensic investigation process. There are no sectors exempt from those incidents or cases, regrettably, so be diligent and you will find one to discuss.ISOL Residency Project: Portfolio Assignment 4 Conclude the Portfolio with your overall assessment of whether the legal system—from compliance mandates, to IT, criminal, and tort laws, to forensic investigations—benefits, hurts, or otherwise affects the institution. Assume the role of information security and privacy risk consultant in this section. 4. Laws Influencing Information Security and Privacy in the Federal Government Select one U.S. federal government agency, bureau, directorate, or another organizational entity in the Administrative Branch that frames your research. Describe the organization, its place in the structure of the federal government, its scope of control or legal influence, what types of organizations or individuals are subject to its regulations, and any additional descriptive information that will inform your reader about your subject matter. Describe and define at least one the laws focused on compliance within the federal government system that came up during our course. Research the law itself, any legal cases that were based on that law, and the critique of the law that you found through your research. Of course, your selected agency was likely involved in such litigation, or has published their critique of the laws, so include that information foremost. In addition to compliance laws that directly target the federal government’s security and privacy, countless other laws apply to them. Use the U.S. Patent and Trademark Office’s website to discover whether your selected agency has been awarded intellectual property rights (yes, the federal government both owns and awards IP protection through USPTO) for their trademarks, patents, or IP. Describe whether and how it maintains or protects its trade secrets. Describe for your reader some of the most prominent criminal or tort risks that your entity faces; or perhaps has been involved in. Again, even the government is subject to the laws that it creates in this regard. In addition to risks in the realms of criminal or tort law, every organization faces the potential risk of enduring a cyber-attack or other incident that must be followed by a forensics investigation. Keeping the focus on your agency, and likely also looking to NIST materials, research and discuss an incident or case in which such the agency or another within its greater organization was compelled to go through the forensic investigation process. There are no sectors exempt from those incidents or cases, regrettably, so be diligent and you will find one to discuss. Conclude the Portfolio with your overall assessment of whether the legal system—from compliance mandates, to IT, criminal, and tort laws, to forensic investigations—benefits, hurts, or otherwise affects the agency. Assume the role of information security and privacy risk consultant in this section. Additional Requirements as Mandated by Your Instructor This Portfolio Assignment is subject to changes introduced by your instructor, whose requirements supersede these when the two directions appear at odds. As always, work with your Instructor, ask questions when you’re unclear, and do so as soon as practical.
Explain the main components of the LCOE formula and the benefits of this approach compared to other financial metrics such as NPV, IRR, and BCR.
Use the calculator to calculate the LCOE of each of the following technologies for a utility-scale power plant in California.
Natural Gas Combined Cycle
Pulverized Coal
Solar
Wind
Note: Instructor can change the state and technology or assign different states and technologies to students.
Explain how each of the factors below impact the LCOE. How does a 10% increase and 10% reduction for each of these variables impact LCOE of solar, wind, NGCC, and coal
Capacity factor
Fuel cost
System price
Carbon emissions cost
Provide an example of a policy in your province that would improve the LCOE of clean energy technologies
GLOBAL CASE STUDY ASSIGNMENT COURSE : FINANCIAL MANAGEMENT (FM) In order to succeed on the course FM, as stated in the Syllabus, it is necessary to make a Global Case Study in the form of a financial model in excel. The goal is to apply in practice the financial tools you have learned on FM lectures. It is a specific task whose solution makes it possible to understand and manage corporate finance. Global Case Study: INSTRUCTIONS Objective: To create an excel financial model associated with formulas from accounting to cash flow to Valuate the company, to calculate CF, FCF, optimal capital structure and to determine the risk of investment (CAPEX) using different techniques for measuring investment profitability. You will have a company with its financial forecasts in excel with a possibility to do scenario or sensitivity analysis. Please build a model in excel with the following sheets (sheets=pages): Page 1 (Tips) : On this page you have some useful recommendations to be considered in overall assignment. Before you start with Page 2 it is fully advised that you read carefully all tips with separate recommendations what is advised (+) and what is not (-) advised in assignment preparation. It does not mean that you will get negative points if you do not respect all recommendations but if you respect what is there advised your global case will be more exact, complete and in accordance with assignment expectations. Page 2 (History) – 5 points : On this page you have to add missing data in blue parts. You have to add in blue parts for 3 last years (Year N, Year N-1, Year N-2). You can copy the data from the source page and paste it in this sheet. Balance sheet data, Income statement (P&L) and Cash flow statement. You have to choose the company listed on stock exchange from your choice from one of the following web sources : www.nasdaq.com, www.finance.yahoo.com, www.marketwatch.com, www.reuters.com, or other. Please add the name of source in blue part at the end of financial statements. Page 3 (Inputs) : On this page you have to add all your assumptions: growth/decline rates of Revenues and Expenditures and other various inputs you will use in the financial model, however please note that some green cells are already predefined/filled in and You must not change them. On this page all inputs are manually entered in the green coloured cells. The whole Model can be modified if you change the assumptions on this page. It helps you as CFO to do the scenarios or sensitivities simulations in order to present to your management the possible project outcomes or company valuations. Page 4 (Assets Amortization/Depreciation) – 5 points : Make an Amortization/Depreciation calculating page for all long-term assets including the new CAPEX annually during the life of your project (7 years). Consider the amortization/depreciation cost for annual future amortization/depreciation of existing Assets same as average annual A&D of last 3 years from your realized financial statements in P2 History. If in your Financial Statements there is no A&D of assets cost then you just add 0 in P4 in line for Existing annual assets amortization. If you do not have all last 3 past years you can take only the amortization cost of the last year. In a separate line for the new amortization cost of your new CAPEX calculate annual amortization costs using the linear or straight line amortization method from Year N+1 to the end of your project. To do this task we assume that Company will start a new large investment (CAPEX) in the beginning Year N+1 with an assumption that CAPEX is equal to 10% of the Total Revenues of the Year N+1. Page 5 (Cost of Capital) – 15 points : On this page your task is to calculate the WACC. The discount rate (cost of capital) is the weighted average of the cost of capital (WACC) of all your long-term (Bank loan, bonds and equity) funding sources. As CFO of your company your goal is to reduce the overall cost of financing of your CAPEX from Page 4. So, your management accepted your proposal to finance your CAPEX equally with bank loan, bonds and equity. To determine WACC you have to calculate the cost of lenders (Bank loan), the cost of bondholders (bonds) and the cost of shareholders (equity). Based on inputs from page 3, make a table of amortization of loan and bonds, calculation of interests and coupons, principals using formulas (PMT or other) Bank Loan has an interest rate defined in P3 inputs and is repaid in annuities over 7 years. Bonds have a coupon rate defined in P3 inputs and with face value paid at maturity in year 7. Both debt sources of funding are received one shot and used for the investment financing at beginning of year N+1. We assume there are no finance fees to be calculated and considered. For cost of bank loan or bonds (rates) you can either use the same rates as the existing bank loans (use the lowest loan rate) or bonds (yield) if any in company, or you can also use rates from your peers or comparative companies of similar risk which is published on web pages such as www.bloomberg.com/markets/rates-bonds or other source. Please add each time a source you are using if any. If you do not use any of proposed rates then you can estimate your rates in which case please add a short explanation of such estimated rates. Calculate the shareholders cost using the DDM model (Gordon). For the purpose of calculation of cost of equity only we shall assume that your dividends are same forever, starting from Year 0, with an annual increase forever defined in P3 Inputs. For all long term financing sources here let we assume that the corresponding rates are same for each source of financing until the end of project. Page 6 (Projection of Financial Statements) – 15 points : As CFO of your Company you should be able to project your Financial Statements, namely P&L and Balance sheet as first step on Page 6 and CF statement on Page 7. Projection of P&L Start with P&L and then with Balance sheet. To project your Profit and Loss statement you should take into consideration the impact of amortization policy, financial costs of your long term financing of your CAPEX, profit tax and other components of P&L. Make a projection of the profit and loss account for 7 years based on the assumptions from the page inputs. Your revenues and costs from the Inputs page should be increased/decreased for rates of revenue/costs growth / decline. Revenues (Sales) for the Year 1 should be taken from the Total Revenues from the realized previous Year 0 (N) increased/decreased by the rate of growth/decline of your Total Revenues in Year 0. Your projected P&L is simplified and considers only the lines defined on P6. If in your projected P&L you obtain losses most of years you should probably modify your inputs in order to obtain net incomes which are more interesting to be used for modelling. For the simplification reason, you are expected to use only the costs related to COGS, depreciation/amortization related to existing LT assets and new assets (CAPEX) and and financial interests relating to new financial debt in P&L. For dividends calculation we shall assume that the only condition to pay it annually is a positive net income. Projection of Balance sheet Cash of Year 0 should be considered from your last realized year, such Cash item to be added in inputs. From Cash in Year 0 you should calculate future cash item based on assumptions in inputs. Receivables and Stocks are calculated based on assumptions in inputs. We assume there are no Receivables and Stocks in Year 0. Tangible assets or Fixed Assets should be considered from your last realized year as Net Tangible assets, such item to be added in inputs. In Year 1 the Tangible Assets should be increased for the amount of your new CAPEX even if it is realized at beginning of year. If there are no Tangible Assets in your last realized balance sheet then consider only your new CAPEX in Year 1 as Tangible Assets. Accumulated amortization in Year 1 consider only the Accumulated amortization from existing Capex for simplification reasons. Payables and other Liabilities are calculated from Year 1 based on assumptions in Inputs. For simplification reasons the Long Term debt is calculated as a difference between Total Liabilities and Total Short Tern liabilities. For simplification reasons the Total Liabilities is equal to difference between Total Equity and Liabilities and Equity. Shareholders equity in Year 0 should be considered from your last realized Balance sheet, the item to be added in inputs. The Shareholders equity in Year N corresponds to Total Equity in Year 0. In Year 1 do not forget to add in Shareholders Equity the Equity used to finance part of your Capex from Page 5. Retained earnings/Deferred losses item in Year 0 should be considered from your last realized Balance sheet, the item to be added in inputs. In Retained earnings/Deferred losses item please also consider the future incomes/losses from Year 1 to Year 7. Total Equity and Liabilities has to be equal to Total Assets. Check test at end of Balance sheet should state “OK” if this is verified, if not test will show “NOT OK”. Page 7 (Cash Flow) – 10 points : To do the scenarios analysis you need Cash Flows (CF). In this page, you have to determine the corresponding CF’s resulting from company’s operating, investment and finance activities during the project life. Keep in mind that for the simplification reasons the idea is to have only basic and main items of company in CF statement as proposed in formatted table. In other words, you will consider only activities resulting from your projections from Year 1 to Year 7 in P6. Page 8 (Scenarios) – 10 points : Finally, you have your CFs in Page 7. Now, you can apply your CFOs skills you have acquired on Financial Management course at SSBM and demonstrate to your management board how different scenarios can impact the profitability of company. In this page you will use the CFs obtained from the page 7 including the new investment (CAPEX) However, to have your CFs resulting from only your new CAPEX you need to take only part of total annual CFs in CF statement. We shall assume that 20% (as defined in inputs Page 3) of each annual Cash Flow (use Change of Cash line in CF statement) results from your new CAPEX. Add such reduced CFs in Cash Flow line using formula. Do not forget to add your new CAPEX in Year 0 instead of year 1 in Cash Flow line. Only in Year 1 You should remove new Capex from Change of cash in Year 1 (note that – and – make +) in order to get CF of Year 1 in Base Case Scenario. Such obtained CFs will be considered as your Base case Scenario 1. Now, you can finally calculate the project NPV (WACC rate is used as discount rate) and IRR for Base Case Scenario. Even if management board is fine with this you have to demonstrate that in case of problems on market some of the considered inputs can deteriorate and in such situation it is important to see the consequence on the profitability. Now, in following lines you will do the Worst case scenario 2 based on the following assumptions :
an increase of your investment (new CAPEX) by 20%, -decrease of all CFs from Year 1 to Year 7, each CF is decreased by 5%. Repeat, the calculation of the project NPV (WACC rate is used as discount rate) and IRR for Worst Case Scenario. To simplify the calculations, you can use the CAPEX and CFs from Base case scenario. However, your management bord considers that you are perhaps too pesimistic and as they like to expect the profitability and higher dividends they would like you to sho them also the profitability in Best case scenario. Now, in following lines you will do the Best case scenario 3 based on the following assumptions :
a reduction of your investment (new CAPEX) by 15%,
increase of CFs from Year 1 to Year 7, each CF is increased by 6%. Repeat, the calculation of the project NPV (WACC rate is used as discount rate) and IRR for Base Case Scenario. To simplify the calculations, you can use the CAPEX and CFs from Base case scenario. If your Cash Flows are very disproportional to the CAPEX and you cannot calculate IRR and/or NPV, you can try to modify inputs, items like CAPEX or CF’s to obtain NPV and IRR more realistic but please then explain the problems you are facing and the way to solve it with new inputs you propose. Page 9 (NWC) – 5 points : Your management has now a quite good picture on CF’s and different scenarios. However, they are concerned if company has sufficient Net working capital to ensure the project development. To get the answer and to assure your management board, you, as CFO is supposed to calculate the NWC in Page 9. To do that use the simplified calculation based on your projected values on Page 6. For Current Assets consider only Receivables and Stocks while for Current Liabilities consider Payables and Other liabilities. You are also requested to calculate the Increase or Decrease of NWC, the figures you will need in Company valuation. Page 10 (Valuation) – 15 points : Once you have obtained your projections in previous pages you are now in position to proceed to the valuation of your company. On this page, you will determine the company value based on Free Cash Flows (FCF). Apply the financial management to calculate your companys value for shareholders. Add the empty cells using formulas. In line Capex consider only the new investment from Page 5. For NWC line you have the values obtained in Page 9. For Terminal Value of your FCF use Gordons model used to discount the infinite FCF’s. This means that your FCF’s from Year 8 growth by growth rate (defined in Inputs) of FCF forever. Calculate the value of your company with the help of discounted FCFs in infinite and using WACC as discount rate Cash and Long term debt are from the last realized year.. Calculate the Equity value based on FCF and stock price. As equity value is in thousands you should multiply your obtained stock price by 1000 to get the full stock price based on FCF. You have obtained the stock price using intrinsic method of valuation based on FCF’s. You would like to check if the obtained value is realistic. To do this, you have to apply the second intrinsic method of equity valuation which is based on dividends. Using formula get your dividends you have already calculated in Page 6. For Terminal Value of your Dividends we shall assume that paid Dividends will be same forever. This means that company will pay same amount of Dividends from Year 8 forever. Calculate your discounted dividends using cost of equity from Page 5 as discount rate. Calculate your Equity based on Dividends. As equity value is in thousands you should multiply your obtained stock price by 1000 to get the full stock price based on Dividends. Add market price and Net Income using formula from Input page. Calculate Market Capitalization using values from Page Inputs. Calculate Price Earnings Ratio. The chart with comparison of Stock prices based on FCF, Dividends and Market stock price enable to see the differences. Now, you have all necessary results to proceed to the Conclusion. Page 11 (Conclusion) 20 points : Congratulations, if you are at Conclusion page it means that you have managed to apply in practice the financial tools you have learned on FM lectures through pages 1-10. The page is the most important one in terms of points for grading as the interpretation of financial results is something very important and crucial for everyone who deals with corporate finance and financial management. The obtained figures in previous pages is a condition precedent to make possible understanding the financial situation of your company. In other words, the obtained outputs based on inputs will help you, as CFO, to proceed now to the interpretation of the company value, different risks of company, capital structure, profitability of investment and value of equity for owners. Your management board request you to present the financial situation of company in this page through following parts : Capital Structure Use the results from Page 5 to consider if your capital structure used for CAPEX financing is well structured ? Explain what would you do to make it more optimal, if possible ? Use the results from Page 9 to analyze the short term financing needs. Is your NWC optimal ? What would you do to improve your NWC ? Do you have cash gaps and how would you finance it ? Financial Statements Analysis Use the results from Page 6 to analyze the financial statements. What do you think about the profitability in projected P&L and can you identify any problem there ? Is your balance sheet well structured and are there any issues ? Profitability Is your CAPEX used in Page 8 profitable in Base Case Scenario ? What are the conclusions of Best case and Worst case Scenarios compared to Base Case Scenario ? What is your IRR in Base case scenario compared to WACC (page 5) and what conclusion you can make from it ? Valuation What would you do as a CFO to increase the company value ? Is the company market stock price overvalued or undervalued compared to obtained intrinsic values of stock price based on FCF and Dividends ? Explain how you would further increase IRR and/or reduce WACC and increase the Company value. What do you suggest to your Management Board as an incentive to achieve the planned goals of raising the companys value and stock price. Page 12 (Instructor): In this Page the Pages 2,4,5,6,7,8,9,10 and 11 will be evaluated based points given by Instructor that you can find on top of each page. The total will give the total number of points which will be added in cell and corresponding student grade based on grading scale will be added here. The Total number of points is the same as percentage number. Prof Dario Silic SSBM
