Course: BA62070H121 Managerial Finance
Discussion/Participation(Main post already completed)
Respond to the three discussion posts shown in the attachments. Each response should have at least 150 words and 1 source as reference. I have already completed my main discussion post. Now I need to respond to my classmates. Below are overall instructions for this assignment.
Module 4
Discussion 4: Interest Rate, Stock Valuation, Risk and Returns
Part 1: Interest Rates
Many managers do not understand the various ways that interest rates can affect business decisions. For example, if your company decided to build a plant with a 30-year life and short-term debt financing (renewed annually), the cost of the plant could skyrocket if interest rates were to return to their previous highs of 12% to 14%. On the other hand, locking into high, long-term rates could be very costly also with a long period when low short-term interest rates were to be available. As you can see, the ability to know your economic environment and its impact on projected interest rates can be crucial to making good financing decisions.
Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates.
Now think about the industry in which you are employed or one in which you have past experience. To what macroeconomic factors is your industry most sensitive?
Describe two contemporary factors that seem to be impacting your industry today, and identify their impacts on the interest rates experienced within your chosen industry.
Support your comments with your own experiences, the weekly resources, and/or additional research. Use APA throughout and provide appropriate in-text citations and references.
Part 2: Stock Valuation, Risk and Returns
Stock valuation
Dividend Discount Model Stock Valuation
How to value a company using discounted cash flow (DCF)
Stock Valuation and Investment Decisions
The link above contains information on stock valuation, risk, and returns. Please review each one of them. Based on the knowledge gained from the materials presented in the links above, complete the following activities:
Present a detailed discussion of what you learned about stock valuation. Provide examples of how your company has used the concepts. Do you believe financing a company’s operation using stock is better than financing with bonds? Why or why not? Support your discussion with a numerical example.
Based on the materials presented in the “Risk and Return” video, present a discussion on why the materials are important in financial decision-making. How would you incorporate risk and return in your financing decisions?
Learning Resources for Module 4
Stock Valuation and Interest Rate
Use the links below to review the stock valuation and interest rate.
Stock valuation
https://notendur.hi.is/ajonsson/kennsla2008/stock_valuation.pdf
Risk and Returns
Click on below link to review narrated lecture notes on Time Value of Money
Click on below link to review narrated notes on Stock Valuation
Important: Turnitin is active. Turnitin score greater than 25% will be investigated. In addition, you may lose points if your Turnitin score is greater than 25%.
Instructions:
Active participation is a must in this course. Each week one or more key discussion questions, activities, debates, etc. will be posted. Generally, you will be required to respond to the main discussion and then also make comments (a minimum of 3) on the responses of others in the course. Please note that the quantity of responses is not as important as the quality of the responses.
A running dialog about course topics will be maintained via the Moodle discussion forums. It is expected that you will fully participate in the online discussions. This means posting your own thoughts about the weekly topics and properly cited as appropriate, commenting on others’ ideas, and responding to questions about your own postings. Class participation points will be based more on quality than quantity. While it is relatively easy to post numerous, non-substantive comments, it takes more thought and effort to post intelligent, meaningful comments that move the discussion forward. For example, a meaningful post tends to:
• Provide concrete examples, perhaps from your own experience or cited from the reading
• Identify consequences or implications
• Challenge something that has been posted – perhaps by playing devil’s advocate in a professional way
• Pose a related question or issue
• Suggest a different perspective or interpretation
• Pull in related information from other sources with proper citation – books, articles, websites, courses, etc.
Consider your time commitment to our online discussions to be critical to your success as a learner, as well as to the success of the course. Because ongoing participation in discussion
forums is expected, points will be assigned to each activity. Participation scores will be based on three primary criteria:
1. Frequency and timeliness of postings;
2. Content of your discussion forum postings (the thoughtfulness/reflection that goes into your responses and the extent to which they address the topic for the week, including the assigned readings); and
3. Adherence to online protocol Specific instructions on each discussion will be made available to you. Please be sure to follow instructions. Do not clump them all together on one day (especially at the end of the week).
Each Module, topics for discussion will be found in the discussion area of the course. In-depth discussion is an essential part of online learning and is also an important factor in your grade as well. A minimum of four posts is required each module (1 main post and 3 responses to your classmates’ posts). Just agreeing or disagreeing with a student is not a post. Neither is asking a question.
• Significant posts are at least 750 words(This is what needs to be done through this Order) and require some information from the text, academically reviewed papers, some significant commentary that requires knowledge of the subject matter, a web link to an article or other source in order to be accepted. Additional instructions, specific to each discussion will be provided on Moodle. Please read and follow all instructions.
• Significant posts on all your responses to your classmates’ postings should be at least 150 words and require some information from the text, academically reviewed paper, some significant commentary that requires knowledge of the subject matter, a web link to an article or other source in order to be accepted. Additional instructions, specific to each discussion will be provided on Moodle. Please read and follow all instructions. • Provide appropriate APA in-text citations and references. • You must participate in all discussion topics.
The instructor will determine if a post meets the criteria of a significant post.
Cutting and pasting an article is not a significant post. The grading scale for discussion is as follows:
Original Discussion: Your original post (direct response to the discussion topics/questions) is worth 10 points.
Participation (responding to your classmates’ postings):
3 significant posts (5 points each) = 15 pts
2 significant posts (5 points each) = 10 pts
1 significant posts = 5 pts.
No significant posts = 0 pts.
Each Module stands on its own. Thus, you cannot make-up points from a previous week. Please make every effort to participate in all discussions.
Last Completed Projects
| topic title | academic level | Writer | delivered |
|---|