Week 9 Discussion

Reflection

Looking back on this term, what was your favorite topic from the course? What perceptions about finance were either reinforced or changed? How do you think you will use the information you've learned in this course as you pursue your career goals?

Week 8 Discussion

Stock Valuation

Stock valuation is the process of discounting future cash flows. This process is important because you need an estimate of the stocks worth. What other factors determine the price of the stock?

Week 7 Discussion

Risk and Bonds

You are managing your individual retirement accounts. Are you worried about losing money in your retirement accounts? What could you do to reduce risk or increase risk if you’re not worried about losing money? Explain.

Week 6 Discussion

Leverage and Capital Structure

Explain the impact of leverage on operating income and net income. Use a real-world example to illustrate your thinking. If you were a company owner, how would you utilize leverage?

Week 5 Discussion

WMCC and IOS

How can the WMCC (Weighted Marginal Cost of Capital) schedule and the IOS (Investment Opportunities Schedule) be used to find the level of financing/investment that maximizes owner wealth?

Why do many firms finance/invest at a level below this optimum? Explain.

Week 4 Discussion

Capital Budget Development

Capital budgeting is the process for making long-term investment decisions, what do you think a company needs to determine beyond finance if this is a good project for the company?

Week 3 Discussion

Time Value of Money

What is the difference between future value and present value? Which approach is generally preferred by financial managers? Why? Discuss your reasoning.

Week 2 Discussion

The Firm

Define in your own words a firm’s balance sheet, income statement, and statement of cash flows. In addition, explain in your own words what an asset, liability, revenue, expense, income, cash and retained earnings mean. 

Week 1 Discussion

1. Introduction

So that we can learn as much as possible from each other during this course, provide us with some background about yourself.

2. The Market

Explain why an investor should not expect to outperform the stock market on a consistent basis. In addition, explain the advantages and risk associated with buying stock on margin.