Explain corporate bond interest in terms of cost of capital versus investor yields

Explain corporate bond interest in terms of cost of capital versus investor yields

1. Financial Management. Discussion Board.

Your Discussion should be a minimum of 300 words in length and not more than 450 words. Please include a word count. Following the APA standard, use references and in-text citations for the textbook and any other sources. Always include conclusion. At least 3 references. NO PLAGIARISM. I WILL RUN YOUR PAPER THROUGH TURNITIN.

For this week’s discussion:

Explain corporate bond interest in terms of cost of capital versus investor yields. Also, explain the municipal bond interest in terms of investor yields.

1. Financial Management. Written Assignment.

Submit a written paper which is 2-3 pages in length, exclusive of the reference page. Papers should be double spaced in Times New Roman font which is no greater than 12 points in size. Always include conclusion. At least 3 references. NO PLAGIARISM. I WILL RUN YOUR PAPER THROUGH TURNITIN.

Case Study

A friend has confided in you that they have recently inherited a moderately sized investment portfolio from a relative. They don’t know what to do with the assets. The friend comes to you for advice. Your immediate advice, of course, is for your friend to seek professional advice from a tax expert as well as a financial adviser. Your friend persists, however, and asks how the investment returns of the portfolio compare to other investments. You agree to review the portfolio and calculate the yields of each investment as well as determine the weighted average yield for the entire portfolio.

To complete this assignment, download and refer to the investment schedule (Excel file). For your quantitative analysis compute the current market value of each security position of the portfolio, calculate individual yields based on current market pricing, and determine the weighted average factor and the weighted average yields.

· Explain the basis upon which you determined the weighted average yield.

· Explain the difference between a yield that is based on cost, as opposed to one that is based on current market value.

· What are the different uses of both?

· What non-quantitative observations can you make about the portfolio?

Although you can transfer tables from Excel into Word, include the original Excel file in addition to the Word file with your submission.

Papers will be assessed using the following criteria:

The solved solutions for:

· The current market value of each security position of the portfolio.

· Individual yields (estimated current yield) based on current market pricing.

· The weighted average factor.

· The weighted average yields.

· An explanation of how the weighted average yield was determined.

· An explanation for the difference between a yield that is based on cost, as opposed to one that is based on current market value. The explanation discussed the different uses of both.

· Non-quantitative observations (conclusion) about the portfolio.

This assignment will be assessed using the BUS 5111 Written Assignment rubric I have attached.

1. Financial Management. Portfolio Assignment.

The Portfolio entry should be a minimum of 300 words and not more than 750 words. Use APA citations and references if you use ideas from the readings or other sources. For this week’s portfolio activity, please advise the instructor of the following:

· Utilizing the information provided in your course textbook(s) or other valid sources, briefly compare the coupon rate and the interest rate regarding bonds. What is a par value?

· Describe the impact of a tax shield on fixed income yields.

· Please provide a brief update to the instructor on how you feel you are doing so far this term.

This assignment will be assessed using the Portfolio rubric. Please check attached to compare.

1. Business Law, Ethics and Social Responsibility. Discussion Board.

Your Discussion should be a minimum of 300 words in length and not more than 450 words. Please include a word count. Following the APA standard, use references and in-text citations for the textbook and any other sources. Always include conclusion. At least 3 references. NO PLAGIARISM. I WILL RUN YOUR PAPER THROUGH TURNITIN.

Think about: what limits should there be on insider trading? In the USA, Pete Rose was a popular baseball player, and then manager, who was punished for betting on his own team to win. Should Pete Rose be allowed to profit from betting on the success of a team he managed? Should Pete Rose be punished more harshly if he profited from betting on the failure of a team he managed?

· In the Enron case, several managers sold all their Enron stock about an hour before it became public knowledge that the company was not worth as much as everyone thought. Should a manager be punished for acting prudently based on knowledge they have discovered honestly only because the general public does not have that knowledge?

· Should managers be required to disclose private information they have that might influence the investment decisions of the public? Also, address the question of timing about the dissemination of information: is it enough to share information on a public website or should a formal press conference be required?

1. Business Law, Ethics and Social Responsibility. Written Assignment.

Case Study: The Good Credit Reference

Topic: Insider Information/Trading

Involved Parties:

· Kathy Ryan, Trade Credit Officer, Diversified Consolidated Corporation

· Scott Bradley, Treasurer, North Manufacturing

· Mike Walman, Credit Managers, Basic Products

Kathy Ryan, a credit officer at Diversified Consolidated Corporation (DCC), had heard rumors that North Manufacturing was in deep trouble. She is responsible for credits to North of approximately $1 million. North always pays on time and is current on outstanding payables to DCC. North, in fact, uses DCC as a credit reference with other suppliers. Nevertheless, Kathy decided a visit to North was in order.

Kathy Ryan and Scott Bradley, North’s treasurer, had developed a good working relationship and went to lunch during Kathy’s visit. After several drinks, Scott Bradley said: “Kathy, we’re fried. I have to tell you, our financial statements aren’t fraudulent, but they don’t paint the full picture. Not only are we not doing well, but we’ve been talking to bankruptcy attorneys. If things don’t turn around soon, we may file before the end of next quarter. We plan to continue paying DCC promptly because we need all the trade credit we can get. In fact, supplier credit is giving us a chance to come back. Without it, we’d be under right now; with it, we might just squeak by. Frankly, if there is any way you can encourage your competition to supply us–do it. I’ve told Purchasing to place a large order with Basic Products instead of DCC. If Basic gives us credit, we can pay DCC in full before we file. If we make it through this, DCC will get our business back, but I don’t want your career to suffer because of our problems now.”

Kathy was shaken by Scott’s comments. She knew that if North’s credit went bad she would lose her annual bonus–25 percent of her compensation–and probably any chance for promotion. At worst, she could be fired. Shortly after her visit with Scott Bradley, she received a call from her friend in the Credit Department at Basic Products, Mike Walnnan. Suppliers often share credit information on common customers, so it was not surprising that Mike called. DCC’s policy is to provide what they refer to as the “prompt payment history” for the customer. This includes recent high credit balances, any past-due balance, and how promptly customer payments had been received.

After Kathy provided North’s prompt payment history–which in fact had been good–Mike was enthusiastic. “I’m glad to hear that,” he said. “We just got a huge order to supply them through the end of the year. There are a lot of rumors floating around, but if you’re getting paid promptly on that much, I guess it’s OK.” Kathy broke in at that moment. “Can you hold the line, Mike? There’s someone at my door.” She put Mike on hold, her mind racing. She could suggest that Mike look into other public information sources or contact other suppliers about credit histories with North. That would be within acceptable company practice and almost certainly would send up a red flag for Mike. But who else could supply enough credit to North for DCC to get its money out?

She couldn’t keep Mike on hold forever, she pressed the flashing button on her telephone– “Mike?…” What should Kathy say?

Use the Instructions for Case Analyses to craft a response to this case, articulating the main issues and ethical dilemma. Review the assessment criteria below before you begin writing.

Submit a written paper which is 2-3-pages in length exclusive of reference page and that is double-spaced. You should cite relevant resources in APA format. At least 3 references with conclusion. No plagiarism.

Papers will be assessed using the following criteria:

The Written assignment:

· identifies all the relevant facts of the case

· articulates overarching ethical issues including the extent of Kathy’s responsibility to take action

· identifies all stakeholders

· poses possible alternatives and ethics of each alternative. Paper should explore the possible alternatives and ethics from the Utilitarian Perspective, the Rights Perspective, or the Justice Perspective

· recommends a specific action Kathy should take

· is of high quality, writing is clear and professional

· conforms to the structural requirements including APA style guidelines for References.