FIN 534 – Homework

Business Finance

Homework Set #1: Chapters 1, 2, & 3

Due Week 2 and worth 100 points

Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above.

A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges.

B. Using the two stocks you identified, determine the free cash flow from 2013 & 2014. What inference can you draw from the companies’ free cash flow?

C. Using the most recent financial statements for both stocks, prepare two financial ratios for each of the following categories: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year. What challenges, strengths, or weaknesses do you see? Please be articulate.

Click here to view the grading rubric.

Points: 100

Homework Set 1: Chapters 1, 2, and 3

Criteria

Unacceptable Below 70% F

Fair

70-79% C

Proficient

80-89% B

Exemplary

90-100%A

1. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges.

Weight: 30%

Did not submit or incompletely identified two stock exchanges in the United States. Did not submit or incompletely described the similarities and differences between the two stock exchanges. Did not submit or incompletely identified one stock from each of the two stock exchanges.

Partially identified two stock exchanges in the United States. Partially described the similarities and differences between the two stock exchanges. Partially identified one stock from each of the two stock exchanges.

Satisfactorily identified two stock exchanges in the United States. Satisfactorily described the similarities and differences between the two stock exchanges. Satisfactorily identified one stock from each of the two stock exchanges.

Thoroughly identified two stock exchanges in the United States. Thoroughly described the similarities and differences between the two stock exchanges. Thoroughly identified one stock from each of the two stock exchanges.

2. Using the two stocks you identified, determine the free cash flow from 2013 and 2014. What inference can you draw from the companies’ free cash flow?

Weight: 30%

Did not submit or incompletely determined the free cash flow from 2013 and 2014. Did not submit or incompletely explained the inferences drawn from the companies’ free cash flow.

Partially determined the free cash flow from 2013 and 2014. Partially explained the inferences drawn from the companies’ free cash flow

Satisfactorily determined the free cash flow from 2013 and 2014. Satisfactorily explained the inferences drawn from the companies’ free cash flow

Thoroughly determined the free cash flow from 2013 and 2014. Thoroughly explained the inferences drawn from the companies’ free cash flow.

3. Using the information and formulas from your textbook, please prepare two financial ratios for each stock, using the 2013 and 2014 financial statements, to include: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year. What challenges, strengths, or weaknesses do you see? Please be articulate.

Weight: 30%

Did not submit or incompletely prepared two financial ratios for each stock, using the 2013 and 2014 financial statements, to include: liquidity ratios, asset management ratios, and profitability ratios. Did not submit or incompletely explained the challenges, strengths, or weaknesses.

Partially prepared two financial ratios for each stock, using the 2013 and 2014 financial statements, to include: liquidity ratios, asset management ratios, and profitability ratios. Partially explained the challenges, strengths, or weaknesses.

Satisfactorily prepared two financial ratios for each stock, using the 2013 and 2014 financial statements, to include: liquidity ratios, asset management ratios, and profitability ratios. Satisfactorily explained the challenges, strengths, or weaknesses.

Satisfactorily prepared two financial ratios for each stock, using the 2013 and 2014 financial statements, to include: liquidity ratios, asset management ratios, and profitability ratios. Satisfactorily explained the challenges, strengths, or weaknesses.

4. Clarity, writing mechanics, and formatting requirements.

Weight: 10%

More than 6 errors present

5-6 errors present

3-4 errors present

0-2 errors present