How do you even begin to talk about race and ethnicity? And, specifically in a social work context, how do you broach these topics with clients, families, and communities? In 1994, eight American men of various backgrounds (African, Asian, European, and Latino descent) sat down together in a room to talk about race. What followed was a raw, emotional, and difficult conversation that peeled back the layers of racism’s impact. Although the Color of Fear film is decades old now, the need to talk about race remains.
For this Discussion, you view one such conversation among faculty and then analyze what you observed, considering the various perspectives and how they may inform social work practice.
To Prepare
View the Voices of Diversity: Race and Ethnicity video showing Social Work faculty sharing perspectives and experiences related to race and ethnicity.
Reflect on the video, identifying ideas, experiences, or statements that resonate with you, as well as strategies that were described.
By Day 3
Analyze what you learned from the Voices of Diversity video regarding perspectives and experiences related to race and ethnicity. Specifically:
What idea, experience, or statement resonated with you the most, and why?
What is one strategy described in the video that you will apply toward your self-awareness and/or cultural competence? How might this strategy help when working with a client who is racially or ethnically different from you?
CLICK HERE TO MAKE YOUR ORDERon Voices of Diversity: Race and Ethnicity video showing Social Work faculty sharing perspectives and experiences related to race and ethnicity
Problem Set with questions designed to measure mastery of the content of the module. Each Problem Set has two (2) documents: Problem Set (questions) and Excel Template. Excel is the industry standard for finance work and is required to complete and submit each Problem Set. The provided Excel Template may be used or you may create an original spreadsheet. If you choose to use the Excel template provided, download it for better usability. Every question should have its own tab. Show all your formulas as this allows the instructor to better assess how to help you and award partial credit as deems appropriate.
Week 1 – Introductions, Financial Statements, and Ratios
This problem set uses Alaska Air Group, Inc. as the basis for ALL questions. To start, go to the airline’s investor relations page and get its latest annual report (10-K).
1. Using the firm’s selected financial data:
a. Make a table showing the income statement (in million $). Note that any expenses that do not have their own specific line listed should be grouped under “All other expenses”. The net income lines must tie using formulas.
b. Use the table created to create a common size income statement (as a % of operating revenues for that year).
c. Show year-on-year (YoY, in %) growth
d. What happened to the profit margins?
e. What are the actual tax rates?
2. Using the operating stats, what is the YoY growth rate for: a. Yield?
b. Operating expense per available seat mile (CASM)? c. Revenue passenger miles (RPMs)?
d. Fuel price ($/gallon)?
e. Considering the above, what factors, other than the pandemic, do you think are
3. Using the firm’s balance sheets, show:
a. Balance sheets as shown (in million $); show only net property & equipment lines.
b. Common size balance sheets.
c. Are there any outliers in the balance sheets that you think merit mentioning?
d. For these years, what is the net working capital position? Current ratio? Quick ratio? Total debt ratio? Return on assets (ROA)? Return on equity (ROE)? What is the latest p/e ratio (use Yahoo Finance)?
4. Using the Statement of Cash Flows, which items stand out to you and why?
a. What are the top three markets by share? b. What happened to passenger yields?
c. What happened to costs per ASM?
d. What do you think this means for the bottom line? e. What are the top three city pairs?
Week 2 – Discounted Cash Flow Valuations and Net Present Value
Remember that when you use the perpetuity formula, the formula automatically present values the perpetuity one period, so if you use the perpetuity formula in year 15, the result is as of the beginning of year 15!
1. You are offered three annuities (these make equal payments over a specific period). Using an annual 5.5% discount rate, calculate each annuity’s price:
#
Price ($)
Payments ($/month)
Life (years)
1
?
195
6
2
?
200 (growing @ 1%/year)
5
3
?
135 (growing @ 2.5%/year)
Forever
2. You purchase a new machine for your firm. It costs $84,000 and will expand your cash flow by $13,500/year in year 1 growing by 2.5% per year after that. The system will work for 30 years before you have to replace it. What are the NPV (at a 5.5% discount rate) and IRR?
The vendor offers you another machine costing $99,000 and lasting 35 years, with the same yearly cash flow and growth rate. What are the NPV and the IRR for it? Should you get it?
a. Use July 1, 2011, to calculate the future value of the $5.9M owed on July 1, 2000.
b. Use July 1, 2011, to calculate the present value of the 25 yearly payments of
$1,193,248.20. The first payment is made on July 1, 2011
c. Should Bobby take it? Why?
4. You are looking to lease a car. The dealer offers you the following: Car price = $35,000
Monthly lease payments = $499
Down payment = $3,000
Lease term = 36 months
Purchase price at end of lease = $18,000
What is the implicit interest rate on the lease?
5. The Airbus A220 has the following R&D costs (all negative cash flows):
€400M (year 1)
€300M (year 2)
€200M (year 3)
€100M (year 4)
Each plane will be sold for €48M – 15% down and the rest due on delivery one year later. The cost to produce each plane is €38M – these costs are recognized on delivery. The Sales and Marketing Department says that you will sell 30 planes (year 5) and sale will grow by 5 planes per year before they plateau at 60 planes. The last sale is made in year 16, when the A220 is replaced by a new model.
What are the NPV (as of the beginning of year 1) and the IRR of the plane using a 9% discount rate?
Week 3 – Risk Analysis, Real Options, and Capital Budgeting
1. Real Options
A. JTMAirlinesislookingatbuyingmoregatesattheirhomeairport.JTM’sdiscountrateis 5.5% and the risk free rate is 2.0%. What is the NPV of the gate purchases if it bought them today? Use the data in the Excel template provided.
B. After you run the numbers for part A, you remember back to the concept of real options, which means that JTM can make investment decisions as time passes:
1. Present valuing the purchase price of the gates (that is, the years 1 and 2 Capital Expenditures) separately using the risk-free rate. Once JTM decides to go ahead with the purchase, there is no risk to that expenditure.
2. Present valuing the Net Cash Flow excluding those purchase prices. This calculation will include Cap. Ex. for years 3-15 as they are part of the normal operation of the gates and are unrelated to the purchase price.
3. Use the Black-Scholes Option Pricing formula to come up with option’s price assuming a 2-year maturity and a 15% price volatility for gate prices.
4. Compare the price of the call option with the NPV in the No Real Options scenario. Is the option worth it?
2. Decision Tree
JTM really liked your work on the option pricing of the gates, so they ask you to look at their 3- phase expansion at their home airport. The three phases are:
A. Uponpurchaseofthenewgates,startamarketingprogramtopromoteJTM’sroutesto the East Coast, West Coast, and the Caribbean. If all goes well and the market is receptive, they will go on to phase 2.
B. Phase2hasJTMinvestinnewroutestothedestinationslisted.Ifatanytime,JTM finds that this is not going to work, they will pull the plug on everything.
C. Phase3hasJTMstartthenewroutestothedestinationslisted.Ifthingsdon’tgowell on any of the three destinations, they will pull the plug on everything.
After much work with other departments, you generate enough data to calculate the NPV of the 3-phase expansion. Before you have a chance to save all your work, there is a power spike and you lose part of your work. You have to complete it for a presentation. Please use the Excel template provided to complete this.
Week 4 – Interest Rates and Bond Valuation
1. What is the annual yield of a 6-year, 6.4% semi-annual coupon-paying bond priced today at $1,190? Par is $1,000.
2. What is the annual yield of a 9-year, 4.1% annual coupon-paying bond priced today at $1,088? Par is $1,000.
3. Show the cash flows and prices for the following four bonds, each with a par value of $1,000 and paying interest semi-annually:
#
Coupon Rate
Years to Maturity
Market Yield
A
6.4%
8
4.5
B
3.7%
9
4.4
C
3.8%
9
4.6
D
0.0%
5
4.3
Which of the four bonds would you prefer to hold and why? (Answer in the box provided.)
4. Considerasemi-annualbondwithanannualcoupon=6.33%,maturity=10 years, par value = $1,000, and a market price today = $1,063:
a. Whatisitsyieldtomaturity(YTM)?
b. Supposethebondcanbecalledat$950attheendofyear8,whatis
itsyield to call?
5. You have two bonds with the following characteristics:
Characteristics
Bond A
Bond B
Coupon
4.4%
5.5%
Years to Maturity
7.5
5
Par Value
$1000
$1000
Price
$902.00
$911.00
a. Whatarethebonddurations?
b. Ifratesriseto4.5%,whatarethenewpricesforeachbond?
Week 5 – Valuing an Airline for Acquisition
JTM Airlines, a privately held firm, is looking to buy additional gates at its home airport for $1,500,000. It has money in the bank, but that money may not be spent as it is used to pay salaries, suppliers, and equipment. It asked its bank for a loan, but the bank refused unless the project had a return higher than JTM’s weighed average cost of capital. Separately, PAN Airways’s CEO approached JTM’s CEO to sell the airline. As a result of all this, JTM has contracted you to:
1. Calculate JTM’s weighed average cost of capital (WACC) based on two airlines trading in the capital markets – PDM and GAL. Since JTM does not trade, it has no beta, so you need to use these two firms as proxies. JTM’s CFO kindly gave you the necessary information on PDM and GAL for you to do this.
2. Aside from the purchase price, the gates will require a working capital infusion of $1,500,000 at purchase. JTM estimates the gates will generate cash flows of $295,500 in year 1, inflating at 4%/year over the next 12 years. After that, the gates will revert back to the airport operator. Half the working capital is recovered at the end. Calculate the NPV and IRR of the gates.
3. You were given PAN’s 2020 income statement (IS) and balance sheet (BS), along with forecasts of the revenue growth. Forecast the IS and BS for the next 5 years.
4. The price discussed by the two CEOs is $6.5M. You must value PAN Airways using free cash flows to see if this price is fair or not.
Week 6 – Multiples and Transactions, Dividend Discount Model
1. JTM Airlines is looking to buy Jaguar Airlines. Your boss, the CFO, wants a quick and dirty valuation of Jaguar. You choose to look at past transactions in the airline industry to get some numbers and put them in an Excel spreadsheet. For Jaguar, you find out the firm’s key financial values and put them in the spreadsheet. To remind yourself that they are inputs, you should color them red.
Using EPS, Book Value (BV), Sales, EBITDA, Premium and Synergy over stock price,what should be Jaguar’s prices per share?
2. Yourbossispilingontheworkandhasaskedyoutovaluethreemore potential acquisitions. They are of Northern, Eastern and Central, fixed base operators serving areas where JTM is looking to expand (the names give away the regions of the country). You don’t have cash flow data for these firms as they are privately held, but you talked to the owners and they gave you dividend information for the firms, which you entered into your spreadsheet. You remember back to your corporate finance class that you can use the Dividend Discount Model (DDM) to come up with a quick and dirty valuation.
You know that JTM’s WACC is 6.8% and will use this as the applicable discount rate.
Using the DDM Model, what are the values per share of each of these three firms?
Week 7 – Long Term Debt
1. A firm issues a $10 million debt obligation that pays 7.3% per year over four years. How much will it have to pay in four years?
2. Suppose that a life insurance company has guaranteed a payment of $14 million to a pension fund 4.5 years from now. If the life insurance company receives a premium of $10.4 million from the pension fund and can invest the entire premium for 4.5 years at an annual interest rate of 6.25%, will it have sufficient funds from this investment to meet the $14 million obligation?
3. A. A firm is borrowing $5,000,000 from its bank at an annual interest rate of 5.7% for the first six years and 7.2% for four years after that. How much will it pay at the end?
B. Suppose the firm in 3A can take another bank’s quote of $5,000,000 for 10 years at an annual rate of 6.1% compounded semiannually. How much would it pay at maturity? Is this investment alternative more attractive than the one in 3A?
4. Suppose a firm issues a $10 million debenture maturing in 8 years and with an annual rate of 7%. Interest is paid annually at the end of the year. How much will the firm have paid out in total as of year 8, when it pays the interest plus principal?
5. A firm’s head of HR knows that the following pension payments must be made in years 1- 4. The head of HR needs to go to management to request a lump sum that will satisfy this liability stream. Assuming the lump sum can be invested today at an interest rate of 4.7%, how much must be invested today to satisfy this liability stream?
Week 8 – Short Term Debt
1. You are in a team compiling a report to send to your firm’s bank. You are supposed to take the firm’s last three months and provide the following for each month:
Days receivable Days inventory Operating cycle Days payable Cash cycle
You have all the financials in the spreadsheet so all you need to do is make the calculations.
2. ABC Maintenance Service
A. ABC FBO sells maintenance services to various private jet operators.
For these, it demands payment within 30 days. It is considering changing this policy to 0.66%/7, net 30. What is the implicit annual rate in the new policy? Use a notional purchase of $10,000.
B. ABC’smaintenanceservicebusinessgrossessome $22M per year before discounts and its average days receivable is 30. If 15% of its clients opt to follow the new policy, what will be the change in receivables? If ABC’s WACC is 7.0%, what are the projected savings of the new policy? If its gross margin is 22%, by how much will gross dollar revenues have to rise to offset the loss from discounts? In percent?
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Enjoy Please Note-You have come to the most reliable academic writing site that will sort all assignments that that you could be having. We write essays, research papers, term papers, research proposals. Make a table showing the income statement (in million $). Note that any expenses that do not have their own specific line listed should be grouped under “All other expenses
Another way to think about showing vs. telling is to think about “reporting” vs. “storytelling.” Even though we always want our writing to be rich with details and specificity (i.e. showing), it is true that sometimes we do want to do more storytelling (i.e. showing), and sometimes we want to do more reporting (i.e. telling). Ideally, a really good piece of travel writing will have some of both. This week, we’re going to focus more on the first element: storytelling. Next week, we’ll turn our attention to the second element: reporting (or, as is often the case, reflecting).
Before you dive into this week’s assignment, be sure to read your group members’ stories from last time and offer them some feedback. Take the feedback from your piece to help you think through how you will approach this week’s assignment.
Week 2 Assignment:
Think about a time when you experienced some kind of conflict while you were traveling. Maybe you lost something (e.g. passport, backpack, favorite ring), or you have some kind of confusing or uncomfortable experience with another person (e.g. someone misunderstood you, someone tried to trick you, someone looked at you in a way that made you uncomfortable, you had an argument with someone, etc.). In 2 double-spaced pages, write the story of your experience of travel conflict, including both what happened and how it changed you. Remember that the heart of good storytelling includes both a central conflict and the change (usually of a person) that results.
**Model Essay: “Appointment in Istanbul (Links to an external site.) (https://www.nytimes.com/2009/11/08/magazine/08lives-t.html?_r=0) This piece does a great job showing a conflict during travel–and how it changed the author’s perspective.
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Writing services provided by experts- Looking for expert essay writers, thesis and dissertation writers, personal statement writers, or writers to provide any other kind of custom writing service?
Enjoy Please Note-You have come to the most reliable academic writing site that will sort all assignments that that you could be having. We write essays, research papers, term papers, research proposals. showing vs. telling is to think about “reporting” vs. “storytelling