BAM513 all assignments (unit 1-4)

Word count is NOT
one of the criteria that is used in assigning points to written assignments.
However,
students who are
successful in earning the maximum number of points tend to submit written
assignments that fall in the following ranges:

Undergraduate
courses: 350 – 500 words or 1 – 2 pages.
Graduate courses:
500 – 750 words or 2 – 3 pages.

Plagiarism

All work must be
free of any form of plagiarism. Put written answers into your own
words.Do not simply cut and paste your answers from the Internet
and do not copy your answers from the textbook. Be sure to refer to the
course Syllabus for more details on plagiarism and proper citation styles.

Unit 1
Please answerONEof the following:
1) What is the goal
of the firm and, therefore, of all managers and employees? Discuss how one
measures achievement
and the key decision variables of this goal. Do you agree with this
goal? Why or why
not?
2) Describe how you
would use a large number of ratios to perform a complete ratio analysis of a
firm. Discuss the
pros and cons of these ratios.
3) How can you
determine the size of the equal, annual, end of period deposits necessary to
ac-
cumulate a certain future sum at the end of a
specified future period at a given interest rate?

Unit 2
Please answerONEof the following:
1) How are total
risk, nondiversifiable risk, and diversifiable risk related? Why is
nondiversifiable
risk regarded as the
only relevant risk? Do you agree that this is correct?
2) What is a bond’s
yield to maturity (YTM)? Briefly describe the use of a financial calculator,
the
use of an Excel
spreadsheet, and the trial-and-error approach for finding YTM. Which do you
prefer and why?
3) What does the
efficient–market hypothesis (EMH) say about a) securities prices, b) their
reac-
tion to new
information and c) investor opportunities to profit? What is the Behavioral
Finance
challenge to this hypothesis?

Unit 3
1) Discuss NPV and
IRR. Does the assumption concerning the reinvestment of intermediate cash
inflow tend to favor
NPV or IRR? In practice, which technique is preferred and why?
2) Describe the
basic procedures involved in using risk-adjusted-discount rates (RADR’s). How
is
this approach
related to capital asset pricing model (CAPM)? How do risk classes enhance the
use of RADR’s?
3) What is the
weighted marginal cost of capital (WMCC)? What does the WMCC schedule repre-
sent? Do you believe this is always accurate?

Unit 4
Please answerONEof the following:
1) What is the
relationship among operating leverage, financial leverage and the total
leverage
of the firm? Do
these types of leverage complement one another? Why or why not? What is
your preferred
measurement?
2) What is the
difference between the firm’s operating cycle and its cash conversion cycle?
Which would be more
important to you as an owner and why?
3) For the following
methods of using inventory as short-term loan collateral, describe the basic
features of each,
and compare their use: a) floating lien b) trust receipt loan and c) warehouse
receipt loan. Which might be most risky for
the lender?