FIN301 Case 1 Travis G James Module 1
.docx
keyboard_arrow_up
School
Augusta Technical College *
*We aren’t endorsed by this school
Course
301
Subject
Finance
Date
Apr 3, 2024
Type
docx
Pages
6
Uploaded by MagistrateAlpacaMaster1019 on coursehero.com
Module 1 Case
Travis G James-Primas
Trident University International
FIN301 Principles of Finance (2023NOV06FT-1)
Professor Dr. Charles McManus
November 18, 2023
Trident University
FIN301: Principles of Finance
Module 1: Case Name: Travis G. James
Question 1:
In your small business you have a finance department with a CFO, controller, and treasurer. For the following scenarios, explain which of these three financial executives would be
the most likely to work on the issue based on the descriptions of the roles of the CFO, controller, and treasurer from Peterson and Fabozzi (2010) from the required reading.
A.
You suspect that a lower-level employee has embezzled around $50,000 over the last three years and you want to try to find out who based on past financial records. Who would be most likely person to look into this issue – the CFO, the treasurer, or the controller? Why?
ANSWER: The controller would be the person who would investigate the issue. One would think, the CFO would step in, but the controller would have complete access as well. Understanding that the controller is responsible for auditing accounts. The controller is the one who investigates the allegedly embezzlement case. Although, the controller oversees the case, they are still assisted by the CFO if needed. Lastly, once the controller investigates the situation and identify the problem, the results are reported to the CFO. B.
Your chief marketing officer wants to take out a large loan to finance a major advertising campaign that he claims will bring in large sums of new profits over the next few years. However, your chief operating officer wants to take out a large loan to purchase some new equipment and machinery that she claims will save your company a lot of money over the next few years. You would like to see some estimates about which of the two projects will be most likely to increase profits enough to be able to pay back the loan. Who would be most likely person to look into this issue – the CFO, the treasurer, or the controller? Why?
ANSWER:
In
this case, the chief marketing officer and also the chief operating officer both wants to take out a loan that would benefit the company in different ways. The chief marketing officer Once the money for a new major advertising campaign that would benefit the company wow the chief operating officer wants the money for newly updated equipment and machinery that would benefit them for years to come. Because this is a issue dealing with funds, the treasurer would be
more than likely the person to handle the financing issue. The treasurer is the one who oversees the finances of the company, closely reviews the policy and procedures, and financial reporting.
In the end they advised the board on the financial plan, while implementing new fundraising strategies. Once all of the benefits have been taken in account, the plan that has the higher benefit would be considered.
Question 2:
Explain whether the following assets are a real asset or a financial asset. Explain your reasoning using the definitions of real vs. financial assets. Refer to Chapter 2 from the Peterson
and Fabozzi (2010) text.
A.
A certificate of deposit at your local bank
ANSWER: ☐
☒
Explain:
“
Although they are lumped together as tangible assets, real assets are a separate and distinct asset class from financial assets. Unlike real assets, which have intrinsic value, financial assets derive their value from a contractual claim on an underlying asset that may be real or intangible, (James Chen, May 21, 2021).” All assets hold value to a company or an individual, which could be converted into cash. Financial assets are considered liquid property that has value, stocks and bonds or bank accounts. So, with this understanding, a certificate of a deposit at your local bank would be a financial asset. B.
A two-bedroom house
ANSWER:
☒
☐
Explain: R
eal assets are normally the physical assets. Financial assets would include things like stocks, bonds, and cash. While real assets would include things like family homes, commodities, and infrastructure.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Short Answer Essay Question:
DAS
• Understanding Fundamentals of Personal Finance
• Career Planning
• Financial Statements, Tools, and Budgets
• Managing Income Taxes
• Managing Checking & Savings Accounts
• Building & Maintaining Good Credit
• Credit Cards & Consumer Loans
• Vehicles & Other Major Purchases
What are three key things you have learned from any of the areas above, that you have adopted in your own personal financial
management practices?
arrow_forward
Finance 500
In this assignment, the purpose is to tie into the key concepts and insights studied this term in this course. Reflecting on key principles, strategies, or tactics that were covered from the accounting and finance fields, students should relate the information to their career, company or industry of interest.
Demonstrate how the knowledge, skills, or theories of this course have been applied, or could be applied, in a practical manner to your current work environment (a project manager in design industry).
Share a personal connection that identifies specific knowledge and theories from this course.
Demonstrate a connection to your current work environment.
You should NOT, provide an overview of the assignments assigned in the course. The assignment asks that you reflect how the knowledge and skills obtained through meeting course objectives were applied or could be applied in the workplace.
arrow_forward
Terminal
Activity
"People Behind Financial Management"
Career in Financial
Management
1.
2.
3.
4.
Having learned about the stakeholders in financial
management, you may now complete the TABLE
below by looking around you and finding out what are
the different careers available to those who study and
specialize in financial management.
5.
Roles
Responsibilities
arrow_forward
1
menu
messageQ&A
notifications
account_circle
Business
FinanceQ&A LibraryYou have just been employed as the New chief executive officer of a medium sized company that is listed on the Ghana stock exchange. At the maiden board meeting,the chairman advised you and your management team to avoid what he termed as "Agency Problem" Explain the term "agency proAm blem " and identify (4) way by which shareholders can deal with it.
You have just been employed as the New chief executive officer of a medium sized company that is listed on the Ghana stock exchange. At the maiden board meeting,the chairman advised you and your management team to avoid what he termed as "Agency Problem" Explain the term "agency proAm blem " and identify (4) way by which shareholders can deal with it.…
arrow_forward
Studying finance at the micro level involves studying everything except for which of the following
a. Asset management
B. Fund raising for business firms
C. Financial institutions
D. Financial planning
######### Correct answer .
arrow_forward
Question 1 Financial management in business organizations seeks to make financial decisions that would avoid some of the problems that organizations may encounter. Among these problems is the problem of financial hardship, which may lead to the bankruptcy of business organizations. Speak up to 800 words on this topic, supporting your essay with practical examples, results and recommendations
arrow_forward
QUESTION 2
Jason, the new risk manager for River Transportation Enterprises, has studied the steps of the risk management process as described in the CRM courses that
he recently completed. In the risk financing step, he learned the objective of the step is to find the appropriate balance of three primary finance options.
Which of the following items is not considered one of the three primary finance options?
A. Insurance
B. Retention
C. Letter of credit
D. Transfer of financial responsibility
arrow_forward
4-2 Case Study: Assessing a Company's Future Financial Health
Overview
People should understand the impact of different types of risk on financial health, whether they are dealing with personal or corporate finances. The risks for personal finance often only affect individuals and families. These risks arise, for example, when deciding whether you can afford to buy a house or invest in stocks. Financial risks for businesses often affect multiple people throughout the entire company. This includes individuals who do not work in the finance department. Businesses must know how their decisions affect all parts of their company when making finance-related decisions.
Prompt
Read the Assessing a Company's Future Financial Health case study. Then write a response.
Specifically, it would help if you addressed the following rubric criteria:
Systematic and Unsystematic Risk: Explain the differences between systematic and unsystematic risk.
Financial Risks: Describe the potential impacts of…
arrow_forward
1. Explain the important role played by financial institutions and financial markets within the economy
2. The board of directors has approached you as the financial manager to come up with a remedial approach to the company`s financial woes. They have tasked you with writing a report addressed to the Board of Directors that will inform them on the following:
2.1 Identify and discuss three best different forms of short- term financing for business, including their respective merits and
2.2 Identify and discuss two best different forms of long -term financing, including their respective merits and characteristics applicable for the above situation.
arrow_forward
Financial Responsibilities: Describe the responsibilities of a financial analyst.
Write five to seven bullet points outlining the responsibilities of a financial analyst. Write in complete sentences.
Financial Management Decisions: Use an example to discuss the importance of analyzing and managing finances to help make business decisions.
Consider the bullet points you outlined in the previous section. Then write a brief paragraph that answers the following questions. Use examples to support your claims.
How do these responsibilities help inform management decisions?
What would happen if management didn’t have this information?
Accounting Principles: Explain how to use accounting principles to analyze a business’s financial health. Give examples to support your claims.
Write a brief paragraph that explains how financial analysts use accounting principles to analyze a business’s financial health. In your paragraph, also answer the following questions:
What accounting information…
arrow_forward
Q1) Assume
Supervisors
one of your Finance
is being considered for
promotion to a Manager position.
How might you assess this person's
leadership skills? (Short Answer
required)
arrow_forward
Which of the following is a crucial skill for a financial modeler? Question 9 Select one: A. Communication B. Design C.
Accounting D. All of the Above
arrow_forward
Question 12
Which of the following parties would perform an external financial analysis on a firm?
The firm’s compensation committee
A CFO comparing the performance of the firm’s various divisions
A financial analyst forecasting the next period's borrowing needs
The firm’s creditors
arrow_forward
Ay 4
You are briefed about a business plan to launch a new product by your own company. As financial experts, you are being requested to identify all possible cashflows and to estimate strength of each cashflow. Please present your estimation of cashflow. In case of any facts based on market research, please make your own assumption and highlight the same. You are advised to use BMC.
arrow_forward
Question 3
You just graduated with MBA in Accounting and Finance from the University of Professional Studies and are
employed by JEK Investments Ltd, a brokerage firm in Ghana. Kweku The Don, an illiterate businessman, visited
your firm for a piece of investment advice and possibly make some investments. Although an accomplished
businessman, he was advised by his son to buy some shares on the Ghana Stock Exchange in other to diversify
his portfolio. Your boss has asked you to consider either Cronox Industries or Zealous Incorporated The share
prices and dividends for the two companies and the returns on the Ghana Stock Exchange are shown below for
the period 2016 - 2021.
Zealous Incorporated
Stock price Dividend Stock price Dividend
(GHe)
Cronox Industries
Year
GSE Returns
(GHe)
Market
Returns )
2016
7.62
55.75
2017
2018
2019
12
0.90
60.00
2.25
0.07
10.75
17
0.95
57.25
48.75
2.50
0.12
1.00
2.75
0.08
2020
15.75
1.06
52.30
2.90
0.23
2021
17.25
1.15
48.75
3.00
0.18
a. Compare the two…
arrow_forward
Corporate Finance Application Complete both parts of this assignment. You will work on some of these pieces earlier in the course when you submit the Module 3: Portfolio Milestone and the Module 5 Portfolio Milestone. Part One: Ratio Analysis Pick one debt ratio and one profitability ratio, which you did not analyze, from the week three portfolio milestone. Research a publicly traded technology company and access the financial statements needed to calculate those two ratios. Provide a cross-sectional analysis comparing the results from TechnoTCL Download TechnoTCLand your chosen company for the two ratios. Prepare a presentation (maximum of 4 slides – no speaker notes required) with the following information: Slide One: Analyze the two ratios including how the ratio is calculated and how it is used. Slide Two: Introduce the public company chosen, describe the information used for the ratios and calculate the two selected ratios. Slide Three: Show the two ratios for the two companies…
arrow_forward
Case Study #2: Chapter 5 Business Analysis -
Harry, a friend of yours, is taking a course in economics and has become confused by some of the terminologies because of the way people commonly use the same words. The economics professor says investment occurs when companies buy equipment and build factories. Yet Harry has always heard people talk about investing as a method of saving when they put money in the bank or purchase securities. He's confused by these dissimilar uses of the word and has asked you to explain. After asking for your help, Harry happily states that there's one thing he does understand perfectly about what the econ prof says, and that is "savings equals investment." Since investing in stocks and bonds is also saving money, it's obvious that savings equal investment!
Write a brief explanation to help Harry out.
arrow_forward
ecember / B207B - QUIZ 3 SEC 60- 09.12.2020
is the approach favored by most accountants in value measuring and financial reporting.
Select one:
O a. Key performance indicator (KPI)
O b. Fair Value Accounting (FVA)
O c. Historical Cost Accounting (HCA)
O d. Return On Investment (ROI)
arrow_forward
Q.11
Q.1.2
Q.1.3
Other than Investors and management, who else would be interested in the
financial information of a business?
List 4 other users and explain why they would be interested in the financial
Information.
List 2 questions you think investors would be asking themselves prior to deciding
whether or not to invest in a business.
Management accounting is one branch of accounting. In your own words discuss
the other branch of accounting.
arrow_forward
A’Sharqiyah University
College of Business Administration
Financial institution & markets
Home Work Assignment for Midterm Preparation
Introduction-Part-1-Topic1
1. Discuss why study financial markets and institution?
2. Briefly, what is the basic difference between primary and
secondary markets?
3. Briefly, what is the basic difference between money and
capital market?
4. How foreign exchange markets deals in currency along
with spot and forward exchange transactions?
5. Discuss the types of financial institutions and what are
service performed by the financial intuitions?
а.
--have turned to U.S. and other markets to
expand their investment opportunities
b.
---became more global as the value of
stocks traded in foreign markets soared
с.
markets have served as a major source of
international capital
-are the conduit through which
monetary policy actions impact the economy in general
----provides greater incentive to collect a
d.
е.
firm's information and monitor actions.
f.…
arrow_forward
Q7 “Financial planning is an ongoing process, providing direction for achieving your goalsthrough proper management of your financial situation. It takes a holistic view of yourlifestyle, your needs and your priorities. A financial plan is a tool to analyze your financialsituation and provide projections that can assist you in understanding your true situation andwhether you can achieve your goals”. Discuss the significance of financial planning and alsodiscuss about Bhartiya Model of Financial Planning?
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Related Questions
- Short Answer Essay Question: DAS • Understanding Fundamentals of Personal Finance • Career Planning • Financial Statements, Tools, and Budgets • Managing Income Taxes • Managing Checking & Savings Accounts • Building & Maintaining Good Credit • Credit Cards & Consumer Loans • Vehicles & Other Major Purchases What are three key things you have learned from any of the areas above, that you have adopted in your own personal financial management practices?arrow_forwardFinance 500 In this assignment, the purpose is to tie into the key concepts and insights studied this term in this course. Reflecting on key principles, strategies, or tactics that were covered from the accounting and finance fields, students should relate the information to their career, company or industry of interest. Demonstrate how the knowledge, skills, or theories of this course have been applied, or could be applied, in a practical manner to your current work environment (a project manager in design industry). Share a personal connection that identifies specific knowledge and theories from this course. Demonstrate a connection to your current work environment. You should NOT, provide an overview of the assignments assigned in the course. The assignment asks that you reflect how the knowledge and skills obtained through meeting course objectives were applied or could be applied in the workplace.arrow_forwardTerminal Activity "People Behind Financial Management" Career in Financial Management 1. 2. 3. 4. Having learned about the stakeholders in financial management, you may now complete the TABLE below by looking around you and finding out what are the different careers available to those who study and specialize in financial management. 5. Roles Responsibilitiesarrow_forward
- 1 menu messageQ&A notifications account_circle Business FinanceQ&A LibraryYou have just been employed as the New chief executive officer of a medium sized company that is listed on the Ghana stock exchange. At the maiden board meeting,the chairman advised you and your management team to avoid what he termed as "Agency Problem" Explain the term "agency proAm blem " and identify (4) way by which shareholders can deal with it. You have just been employed as the New chief executive officer of a medium sized company that is listed on the Ghana stock exchange. At the maiden board meeting,the chairman advised you and your management team to avoid what he termed as "Agency Problem" Explain the term "agency proAm blem " and identify (4) way by which shareholders can deal with it.…arrow_forwardStudying finance at the micro level involves studying everything except for which of the following a. Asset management B. Fund raising for business firms C. Financial institutions D. Financial planning ######### Correct answer .arrow_forwardQuestion 1 Financial management in business organizations seeks to make financial decisions that would avoid some of the problems that organizations may encounter. Among these problems is the problem of financial hardship, which may lead to the bankruptcy of business organizations. Speak up to 800 words on this topic, supporting your essay with practical examples, results and recommendationsarrow_forward
- QUESTION 2 Jason, the new risk manager for River Transportation Enterprises, has studied the steps of the risk management process as described in the CRM courses that he recently completed. In the risk financing step, he learned the objective of the step is to find the appropriate balance of three primary finance options. Which of the following items is not considered one of the three primary finance options? A. Insurance B. Retention C. Letter of credit D. Transfer of financial responsibilityarrow_forward4-2 Case Study: Assessing a Company's Future Financial Health Overview People should understand the impact of different types of risk on financial health, whether they are dealing with personal or corporate finances. The risks for personal finance often only affect individuals and families. These risks arise, for example, when deciding whether you can afford to buy a house or invest in stocks. Financial risks for businesses often affect multiple people throughout the entire company. This includes individuals who do not work in the finance department. Businesses must know how their decisions affect all parts of their company when making finance-related decisions. Prompt Read the Assessing a Company's Future Financial Health case study. Then write a response. Specifically, it would help if you addressed the following rubric criteria: Systematic and Unsystematic Risk: Explain the differences between systematic and unsystematic risk. Financial Risks: Describe the potential impacts of…arrow_forward1. Explain the important role played by financial institutions and financial markets within the economy 2. The board of directors has approached you as the financial manager to come up with a remedial approach to the company`s financial woes. They have tasked you with writing a report addressed to the Board of Directors that will inform them on the following: 2.1 Identify and discuss three best different forms of short- term financing for business, including their respective merits and 2.2 Identify and discuss two best different forms of long -term financing, including their respective merits and characteristics applicable for the above situation.arrow_forward
- Financial Responsibilities: Describe the responsibilities of a financial analyst. Write five to seven bullet points outlining the responsibilities of a financial analyst. Write in complete sentences. Financial Management Decisions: Use an example to discuss the importance of analyzing and managing finances to help make business decisions. Consider the bullet points you outlined in the previous section. Then write a brief paragraph that answers the following questions. Use examples to support your claims. How do these responsibilities help inform management decisions? What would happen if management didn’t have this information? Accounting Principles: Explain how to use accounting principles to analyze a business’s financial health. Give examples to support your claims. Write a brief paragraph that explains how financial analysts use accounting principles to analyze a business’s financial health. In your paragraph, also answer the following questions: What accounting information…arrow_forwardQ1) Assume Supervisors one of your Finance is being considered for promotion to a Manager position. How might you assess this person's leadership skills? (Short Answer required)arrow_forwardWhich of the following is a crucial skill for a financial modeler? Question 9 Select one: A. Communication B. Design C. Accounting D. All of the Abovearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub