01 Feb DQ1 Take control of your money!

GB550 Financial Management

Unit 1 discussion

DQ1 Share Value Maximization

What is the meaning of share value maximization? If a firm attempts to maximize its fundamental stock price, is this good or bad for society? Explain.

DQ2 Careers in Finance

Because this is a finance class, it is important to explore the different careers and certifications within the field of finance.

Visit the University’s Career Network or via your Campus home page.

Learn more about Career Services

Listen to an overview about Career Services. Review the following Career Services resources:

Career Assessment: Provides you with the ability to take up to four career assessments in Focus2 and to search occupations in four different ways.

Career Documents: Provides you with the ability to create cover letters, resumes, video resumes, assessments, and portfolios in your career that may be used to create a website to showcase your unique skills, abilities, and knowledge to a potential employer.

Write a few paragraphs, of 150 words or more, discussing a career in finance and whether that career requires a certification or not, the expected salary, and any specific requirements for the career.

GB550 Financial Management

Unit 2 discussion

DQ1 Sometimes you have to look beyond what is presented to question what is reported or provided in an opinion. Numbers can be misleading and you should learn to question assumptions regarding the numbers presented. This will in turn provide you with greater insight into the realities of the situation.

Topic 1: Case Study

Please read the Harvard Case Study: “eBay Inc.: Internet Success or Fairy Tale?” by David F. Hawkins and Jacob Cohen. This case study can be found in the Harvard Case Study website. This link is in your Syllabus.

This will take you to an “Authorized Student register/log-in” page. If this is your first course pack purchase, you need to register on the site to create a username and password. If you have previously purchased a coursepack, log in with your existing username and password. Follow the prompts to login and purchase the coursepack.

Please answer the following questions about the case study:

Use the 2002 Financial Statement data to replicate the Meyer’s report calculations that illustrate the following conclusion based on the 2001 data reached in the report: eBay has never been profitable. Why? Why not?

Do you agree with Meyer’s report concept of “unfettered” cash flow? Why? Why not?

What other conclusions can you reach about the company from the case study?

DQ2 Financial Ratios

Why is it sometimes misleading to compare a company’s financial ratios with those of other firms that operate in the same industry?

GB550 Financial Management

Unit 3 discussion

DQ1 It is important to estimate risk and return for both individual assets and portfolios. Discussing the relationships between these will provide a better understanding of how greater the probability is of actual returns.

Topic 1: Bond Prices and Interest Rates

Discuss the relationship between the price of a bond and interest rates. Why does the price of a bond change over its lifetime? Please offer a quantitative example to demonstrate this relationship.

DQ2 The Real World

In the real world, is it possible to construct a portfolio of stocks that has an expected return equal to the risk-free rate? Provide examples.

GB550 Financial Management

Unit 4 discussion

DQ1 Capital budgeting is a vital part of a firm’s decision making. Each approach will provide a piece of information to help analyze potential projects to make informed decisions.

Topic 1: Capital Budgeting

From a financial manager’s perspective, discuss the capital-budgeting process used to identify projects that add to the firm’s value. How do capital-budgeting decisions help to define a firm’s strategic direction?

DQ2 The Asset Pricing Model

Research and define Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT). How are they the same and how are they different?

GB550 Financial Management

Unit 5 discussion

DQ1 Examining the effects of a company’s financial leverage on stock prices, earnings per share, and cost of capital is important to a firm’s capital structure.

Topic 1: Bankruptcy

Your friend says that their new company’s assets do not equal liabilities plus shareholder’s equity. Does your friend describe a legal or economic bankruptcy? Explain your answer.

DQ2 Capital Structure Decisions

Discuss what issues managers should consider when making capital structure decisions? Why would companies have different capital structures? Explain.

GB550 Financial Management

Unit 6 discussion

DQ1 Take control of your money! This concept is extremely important because it can influence a company’s return and your capital structure.

Topic 1: The Firm’s and Your Personal Capital Structure

How does a firm’s capital structure relate to your personal capital structure?

In what ways are they similar?

Provide examples of how you use debt and equity in your personal financial life that parallels the basic capital structure decisions made by a firm.

DQ2 Career Aspirations

How might what you have learned in this class impact your future career? Be specific and discuss a particular position you aspire to and explain how the position you chose might be affected by what you learned in this course.