Scenario
You graduated from college three months ago and have landed a job with TBMV & Associates Financial. Part of your training is to attend a business seminar. It just so happens that you attend one where Brian Olsavsky, CFO of Amazon, is the guest speaker. One of Brian’s main messages revolves around all his success and how Amazon will continue to grow.
You are a firm believer that history repeats itself. It is your belief that the next big risk taker will come along soon, and Amazon will be a thing of the past. In friendly conversation at your table, you state your thoughts and conclude Brian must not share your same belief.
Unbeknownst to you, his secretary is seated at your table. Giggling, she asks what you mean. You tell her that William Pollard stated that “learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” Then you proceed to tell her that Brian does not take enough risks. His secretary goes back to Brian with what you have said. Brian would like to know what you meant and your thoughts, so he hires your firm to do a risk evaluation. When you arrive back to your office, you are given Amazon’s data file and instructed to evaluate the financial risk of Amazon.
Instructions
Using Microsoft Word, create a financial proposal that addresses the following:
Explain Amazon’s financial risk, cost of capital, and risk reward from historical data.
Interpret Amazon’s financial information using Capital Asset Pricing Model (CAPM).
Devise strategies for Amazon to achieve investment high returns and low risk using Modern Portfolio Theory (MPT).
NOTE – Be sure the financial proposal displays proper grammar, spelling, punctuation, and sentence structure.
Resources
How to create a financial proposal (click the Proposal tab)
Finding Company & Industry Information
Deliverable 6 – Risk Evaluation
Rubric Details
Maximum Score
4 points
Criterion 1
A – 4 – Mastery
Detailed explanation included of company financial risk, cost of capital and risk reward from historical data.
Criterion 2
A – 4 – Mastery
Thorough interpretation of company financial information using the Capital Asset Pricing Model
Criterion 3
0% of total grade
A – 4 – Mastery
Skillfully devises strategies for company to achieve investment high returns and low risk using Modern Portfolio Theory.
Criterion 4
0% of total grade
A – 4 – Mastery
Minimal to no spelling and grammar errors.
Category: Accounting Finance
Scenario
JCPenney is considering closing some of their locations. You work in the finance department and have only been with the company for the past two years. During a team meeting, your manager was asked how long the company has been declining financially. Your manager was not sure of the exact amount of time but decided that he wants to look for the exact point when the company profits took a turn for the worst financially. After the meeting, your manager asked you to produce a 5-year trend analysis to present in the next team meeting.
Instructions
Create a white paper in which you explain trend analysis and financial limitations.
The white paper should address the following:
Explain trend analysis, limitations, and use in making financial decisions.
Evaluate financial trends based on JCPenney past data.
Develop a forecasting model using trend analysis in which increased financial suitability is shown.
Include analysis of the financial weaknesses and areas of financial opportunity.
Create a detailed recommendation to for how to strengthen the organization
NOTE – Be sure the White Paper displays proper grammar, spelling, punctuation, and sentence structure.
Resources
What is a white paper? How do I write a white paper? (click the White Paper tab)
Finding Company & Industry Information
Deliverable 5 – Trend Analysis Presentation
Rubric Details
Maximum Score
4 points
Criterion 1
0% of total grade
A – 4 – Mastery
Provides a detailed explanation of trend analysis, limitations, and use in making financial decisions.
Criterion 2
0% of total grade
A – 4 – Mastery
Provides an extensive evaluation of financial trends based on past data.
Criterion 3
0% of total grade
A – 4 – Mastery
Forecasting model is thoroughly developed using trend analysis in which increased financial suitability is shown.
Criterion 4
0% of total grade
A – 4 – Mastery
Provides a detailed analysis of the financial weaknesses and areas of financial opportunity.
Criterion 5
0% of total grade
A – 4 – Mastery
Includes detailed recommendation to strengthen the organization.
Criterion 6
0% of total grade
A – 4 – Mastery
Minimal to no spelling and grammar errors.
Scenario
Fitbit has been around since 2007. Complaints are on the rise as the customer service department is outsourced and only consists of a chat feature. Sales have started to decline as bad reviews increase.
One of the suggestions to boost sales and retain existing customers was to bring customer service back in house. This creates the need for a $2 million-dollar call center to house 60 call, chat, and email agents. You are the financial manager and therefore must review the capital structure strategy for this project, review all the financial risk associated with the project, and analyze the budget to decide if the organization will accept or reject the proposed project.
Instructions
In Microsoft Word, write a recommendation that addresses the following:
Discuss Fitbit’s organizational structure from production to current customer service.
Explore all the financial risk associated with this project
Analyze the provided financial statements for budgeting and savings methods
Recommend project be accepted or rejected with detailed reasoning
NOTE – Be sure the recommendation displays proper grammar, spelling, punctuation, and sentence structure.