Finc2011 Major Assignment Essay

Preparing for The Joint Commission, Nightingale Community Hospital reviews areas of compliance and non-compliance. A periodic performance review, which is a self-evaluation, is utilized by Nightingale Community Hospital, to prepare for The Joint Commission. The Joint Commission has eighteen accreditation requirements. (Commission, 2013) The periodic performance review found the hospital to be compliant and non- compliant in the following areas:

The manager will need to ensure that they have the correct level of rapport with their employee. Too familiar in nature may be misconstrued as forward and harassing in the wrong context. However no personal rapport whatsoever may provide the receiver of the information with the impression that the sender of the information is just not interested. A fine line must be weighed up for each individual. When a good rapport has been achieved, then the person will uncritically accept suggestion or advice which they are given.

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

We use Capital Asset Pricing Model (CAPM) approach to calculate the cost of equity. The formula of CAPM is re = rf + β × (E[RMkt] – rf).

IMF Announces Sale of 10 Metric Tons of Gold to the Bangladesh Bank. (2010). Retrieved from

* b.Assume the firm’s stock now sells for $20 per share. The company wants to sell some 20-year, $1,000 par value bonds with interest paid annually. Each bond will have attached 50 warrants, each exercisable into 1 share of stock at an exercise price of $25. The firm’s straight bonds yield 12%. Assume that each warrant will have a market value of $3 when the stock sells at $20. What coupon interest rate, and dollar coupon, must the company set on the bonds with warrants if they are to clear the market? (Hint: The convertible bond should have an initial price of $1,000.)

-Martin Industries just paid an annual dividend of $1.30 a share. The market price of the stock is $36.80 and the growth rate is 6.0 percent. What is the firm's cost of equity?

Life insurance is meant to provide funds to replace a breadwinner's to protect and support dependents. Chad and Haley are dependents, not income providers. Therefore, the purchase of life insurance is unnecessary and not recommended. The Dumonts should use the money they would spend on policies for the children to increase their own coverage.

Capital Gains Yield: I was able to find the stock prices by multiplying the P/E ratio times EPS, both of which are found in exhibit 6. g = 1.90%

Utilizing the fundamental concepts of the Capital Asset Pricing Model (CAPM), the expected return for Wal-Mart stock is 7.01% [E(R)]. This is a result of a risk-free rate (Rf) of 3.68%, which was the provided 10-year government bond yield to use as a proxy for the risk-free rate. The beta (β ) of Wal-Mart was 0.66 according to the provided Bloomberg beta estimate. Additional data was provided on the U.S. market risk premium [E(RM) – Rf] of 5.05%. In following the general concepts of CAPM, there are some general assumptions: no transaction costs, all assets are publicly traded,

Then we noticed that in exhibit 4, the period of historical data is from 1992-1996. However , the stock of Waterhouse Investor Srvcs only last to Sep 1996, in order to compare the data in the same time horizon, we select the period of 5 years, started from Sep 1991 to Sep 1996.

The standard method of calculating a stock price using the perpetual dividend growth model is done by assessing a company’s dividend one year into the future adding the future expected growth rate. The formula is written as: P0 = D1/(Ke − g), where Ke is the investor required return, D1 is next year’s dividend and g is the

The proxy for all ETF analysis is the ASX300 due to ease of information availability. Ideally, individual benchmarks would also be used to identify the effectiveness of managers in matching their desired indices. However, using the market portfolio does allow better comparison of performance individual ETFs against each other relative to the market (Henriksson 1984) and makes analysis under CAPM, Single-Index Model and related measures more accurate. Furthermore, the R-Squared is high for all stocks against the ASX300 indicating a robust relationship.

The standard method of calculating a stock price using the perpetual dividend growth model is done by assessing a company’s dividend one year into the future adding the future expected growth rate. The formula is written as: P0 = D1/(Ke − g), where Ke is the investor required return, D1 is next year’s dividend and g is the expected

The table below shows the market growth of in percentage over the past three years: