Federal Reserve Bank Decides In 250300 Words Answ

2-1. Access and solve problem P3-24 from the textbook, Principles of Managerial Finance (ATTACHED). Describe Zach Industries’ overall financial condition? Research and describe a company currently in the news in similar financial condition, and compose a comparative analysis on what can be/should be done to improve the circumstances of both the fictional and real-world company. Support your answers with financial ratios and provide explanations.

2-2. Describe elements which can commonly cause uncertainty in the cash budget for an enterprise and the rationale for each. If you are the CFO of a company, what techniques would you use to cope with this uncertainty? How might this change in a very large company (1000+ employees) versus a significantly smaller company (100+ employees)?

3-1. What effect does compounding interest more frequently than annually have on (a) the future value, and (b) the effective annual rate (EAR)? Explain. How would you explain the difference between the annual percentage rate (APR) and effective annual rate (EAR) to a friend with no background in finance?

3-2. Provide an example scenario with rationale of an area in your personal life in which you would like to apply, or have already applied, time value of money concepts. What might you do differently to effect a more financially sound future?

4-1. Describe the impact of the coupon rate and yield to maturity (YTM) on the bond par value and market value. If the Federal Reserve Bank decides to increase the interest rate by 1% beginning next quarter, what steps would you take as the CFO of a company to raise capital from the financial markets?

4-2. Construct an argument regarding why an individual may not be convinced to make a buy/sell decision based on the Gordon Growth Model (also known as the Dividend Discount Model). Support your rationale with at least one citation from the literature.

5-1. Describe the logic underlying the use of target weights to calculate the WACC, and compare this approach with the use of historical weights. What is the preferred weighting scheme? Support your rationale with at least one citation from the literature.

5-2. As a finance leader of your organization, how would you apply the concept of risk and return in your daily decision-making processes? How might you explain the concept of risk vs. return trade-off during the shareholders meeting? How would a proposed initiative to diversify current holdings affect the discussion? Explain.