FIN501 all module discussions – 2017

Module 1 discussion

Time Value of Money

The Eurozone has some countries with severe debt problems: Portugal, Ireland, Italy, Greece, and Spain (sometimes known as PIIGS). These Euro countries are looking for and have been assured of a “bail-out” process so that no one defaults on their debt. What do you now think is likely to happen to the relative value of the Euro?

Important Notes:

Please note that this is an MBA course so you must show and demonstrate your ability to provide reasoning for your response to discussion questions. ?

It is also required that all the students participate on a regular basis and with some serious thoughts; that is, all the students are required to respond to minimum of two other students’ postings with some serious thoughts. In addition, all the students must provide their own answers to Discussion questions.

Also please note that “A” is NOT the “default” grade. In order to receive “A” grades, students must show and demonstrate their ability to provide reasoning for their responses to Case Assignment, SLP, and Discussion questions. All the questions must be answered carefully by providing quality argument (please read all the requirements and instructions); that is, all the requirements for a certain assignment must be met. In addition, all the calculations (if calculation questions were asked) must be correct.

 

Module 2 discussion

Stocks and Bonds

Prior to the financial crisis in 2007/2008, the U.S. Treasury Department as well as Congress had been asking China to revalue upwards the value of their Renminbi or Yuan. China responded to these repeated requests by allowing the Yuan to trade within a narrow band. The band itself was then shifted upwards or downwards by small increments from time to time. Still, the U.S. claimed that China had not done enough and should raise the value of the Yuan by at least a further 20%. The reasons given to justify this requested increase were as follows:

The artificially low value of the Yuan makes U.S. manufactured exports unattractively priced in China.

The undervalued Yuan leads to excessive U.S. imports of Chinese-made goods, which in turn, leads to an unwelcome trade balance in China’s favor. For example, the trade deficit with China was roughly -$258,506.0 million in year 2007. These numbers shrunk further during 2009 as recession hit the global economy. In year 2011, the trade deficit with China was roughly -295,456.5 million (http://www.census.gov/foreign-trade/balance/c5700.html).

China chose to change their ‘floating’ arrangement and pegged the Yuan to the USD at a rate they selected. China holds such a large investment in U.S. Treasuries as a result of the continuing U.S. trade surpluses that the U.S. does not have a great deal of leverage. If China sold those Treasuries the U.S. dollar would fall significantly in value.

Discuss the issues involved with pegging or floating the Yuan to the US dollar.

Important Notes:

Please note that this is an MBA course so you must show and demonstrate your ability to provide reasoning for your response to discussion questions.

?It is also required that all the students participate on a regular basis and with some serious thoughts; that is, all the students are required to respond to minimum of two other students’ postings with some serious thoughts. In addition, all the students must provide their own answers to Discussion questions.

?Also please note that “A” is NOT the “default” grade. In order to receive “A” grades, students must show and demonstrate their ability to provide reasoning for their responses to Case Assignment, SLP, and Discussion questions. All the questions must be answered carefully by providing quality argument (please read all the requirements and instructions); that is, all the requirements for a certain assignment must be met. In addition, all the calculations (if calculation questions were asked) must be correct.

 

 

Module 3 discussion

Cash Flow and Capital Budgeting

What country(ies) do you think is(are) presently attractive for U.S. corporations seeking foreign direct investment opportunities? Take into account any geopolitical/economic/currency risks you are aware of.

Important Notes:

Please note that this is an MBA course so you must show and demonstrate your ability to provide reasoning for your response to discussion questions.

?It is also required that all the students participate on a regular basis and with some serious thoughts; that is, all the students are required to respond to minimum of two other students’ postings with some serious thoughts. In addition, all the students must provide their own answers to Discussion questions.

?Also please note that “A” is NOT the “default” grade. In order to receive “A” grades, students must show and demonstrate their ability to provide reasoning for their responses to Case Assignment, SLP, and Discussion questions. All the questions must be answered carefully by providing quality argument (please read all the requirements and instructions); that is, all the requirements for a certain assignment must be met. In addition, all the calculations (if calculation questions were asked) must be correct.

 

Module 4 discussion

Cost of Capital

In light of the Enron, Worldcom, option back dating, government bailouts/nationalizations and Madoff scandals, do you think U.S. equity markets are cleaner and more reliable than stock markets in the rest of the world?

Important Notes:

Please note that this is an MBA course so you must show and demonstrate your ability to provide reasoning for your response to discussion questions. ?

It is also required that all the students participate on a regular basis and with some serious thoughts; that is, all the students are required to respond to minimum of two other students’ postings with some serious thoughts. In addition, all the students must provide their own answers to Discussion questions.

?Also please note that “A” is NOT the “default” grade. In order to receive “A” grades, students must show and demonstrate their ability to provide reasoning for their responses to Case Assignment, SLP, and Discussion questions. All the questions must be answered carefully by providing quality argument (please read all the requirements and instructions); that is, all the requirements for a certain assignment must be met. In addition, all the calculations (if calculation questions were asked) must be correct.

 

Module 4 reflective discussion

Given the readings and assignments in this course discuss three concepts that you believe are likely to be the most important for your own career. Explain how these concepts may be applicable and how you expect the knowledge you have gained to be helpful.