COURSE CODE: BCO212 COURSE NAME: Business Finance I Task brief & rubrics: Topics 1 & 2 Name: Surname: Group: Date: - Assessment 1 Resolve and comment 3 Problems According to Topics 1 and 2: Details of the task : · Individual · The task consists of developing and justifying each of the problems solution and additionally summarizing their funding in the “Summary Table†clearly. · Format: Document and upload in pdf Formalities: · Develop and solve each problem and Include your final answers in a “Summary Table†too. · Font: Arial 12,5 pts. · Text alignment: Justified. Submission: Due in Week (4) Weight: This task is a 15% of your total grade for this subject. It assesses the following learning outcomes: · Outcome 1: Introduction to Financial Management and Time Value Money · Outcome 2: The Meaning and Measurements of Risk and Return · Outcome 3: Foundation of Business Finance Principles Rubrics Descriptor 9-10 The student demonstrates an excellent understanding of the concepts.

8-8.9 The student demonstrates a good understanding of the concepts. 7-7.9 The student demonstrates a fair understanding of the concepts. 6-6.9 The student demonstrates some, but insufficient understanding of the concepts. 3-5.9 The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student.

1-2.9 The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts. 0 The student leaves the question blank or cheats. Points are stated at the end of each question. Part I Summary Table Problem Insert here a Brief Solution Weight 1 a 10% b 10% C 10% d 10% 40% % % Problem 1: Your mother just gave you 8.000 €. a. Calculate the future of 8.000 €, given that it will be invested for 10 years at annual interest rate of 8%. b.

Recalculate part (a) using compounding period that is bimonthly. c. Now, lets look at what might happen if you invest the money at a rate 12% rather than 8%; recalculate part (a) for a semiannual interest rate. d. With respect to the changes in the interest rate and length of time the money is invested in parts a and c, what conclusion can you draw? Picture the problem, decide on a solution strategy, solve and analyze Problem 2 : If you deposit 10,000 $ today into an account earning an annual rate of return of 11%, how much accumulated interest would be earned in the third year ? Picture the problem, decide on a solution strategy, solve and analyze.

Problem 3 : You are offered 150,000 $ today or 300,000 $ in 13 years. Assuming that you can ear 11% on your money, which should you choose? Picture the problem, decide on a solution strategy, solve and analyze. Part II Problem 1: According to the five Foundations of Finance Principles, explain the difference between “Cash flow is what matters†and “Money has a Time Value†(20 points) Problem 2: George received 12,345 $ for his services as a consultant to the mayor’s office of his hometown of Boston. He has invested his money into an account paying 3,98% annual interest and left the account in his will to the city of Boston on the condition that the city could not collect any money from the account for 200 years.

How much money will the city receive in 200 years from George’s generosity? Picture the problem, decide on a solution strategy, solve and analyze. (20 points) Problem 3: You just received a bonus of 5,000 $. Answer these questions Picture the problem, decide on a solution strategy, solve and analyze. a) Calculate the future value of 5,000 $ given that it will be held in the bank for 5 years and earn an annual interest rate of 6%. (10 points) b) Recalculate part “a†using a compound period that is 1) semiannual and 2) bimonthly.(5 points) c) Recalculate part “a†using a time horizon of 12 years at an annual interest rate of 6%. (5 points) Problem 4 : From the following price data: a) compute the annual rates of return for W and K companies.

Picture the problem, decide on a solution strategy, solve and analyze. (15 points) Time W K $ 30 $ b) How would you interpret the meaning of the annual rates of return? (5 points) Problem 5: AXX has a beta of 0.795. If the expected market return is 10.5% and the risk-free rate is 3.5 %, what is the appropriate required return of AXX using CAPM (Capital Asset Market Model)? Summary Table Problem Brief Solution Weight % % 3 a) 10% b) 5% c) 5% 20% 4 a) 15% b) 5% 20% % DAT/565 v3 Market Analysis Research DAT/565 v3 Wk 3 Market Analysis Research Section 1 - Business overview, mission and vision Describe a proposed business of your choice. Address the following in your summary: · What type of product/service will it offer? · What is the intended market? · What is the business model?

Articulate the business’s mission and vision statements. Section 2 - Market analysis  Based on your intended product or service, describe the characteristics of your customer base. Investigate and list your current competitors. For example, if you’re manufacturing and selling exercise equipment, current competitors would be companies like NordicTrack or Nautilus, Inc. To simplify the process, limit yourself to businesses you are competing directly against.

If your business is a local bistro, then your competitors are other local similar restaurants. Research and estimate the size of your intended market. Market size is the number of potential customers or unit sales for your products/services. Consider the nature of your business when researching market size. For instance, if your business is a local bistro, then your market size is determined by the population within a reasonable radius of the restaurant, say, 5-15 miles maximum.

On the other hand, if your business intends to sell a low-weight mountain bicycle online, then the market size is the average number of low-weight mountain bicycles sold nationwide annually. Estimate the value of your market. Market value is the potential revenues the market has to offer. For instance, suppose low-weight mountain bicycles have a market size of 300,000 units a year with a 0 average price. Then the market value would be 0,000,000.

It can be difficult to estimate market value as you must make assumptions related to market size and average unit price. Use the expected value concept introduced in Chapter 6 of the textbook and the chart below to do the estimation. Expected Market Value: Mountain Bicycle Scenario  Assumptions  Probability p(x)  Units ('000)  Avg. Unit Price ($)  Market Value ('

Course Code Bco212 Course Name Busine

COURSE CODE: BCO212 COURSE NAME: Business Finance I Task brief & rubrics: Topics 1 & 2 Name: Surname: Group: Date: - Assessment 1 Resolve and comment 3 Problems According to Topics 1 and 2: Details of the task : · Individual · The task consists of developing and justifying each of the problems solution and additionally summarizing their funding in the “Summary Table†clearly. · Format: Document and upload in pdf Formalities: · Develop and solve each problem and Include your final answers in a “Summary Table†too. · Font: Arial 12,5 pts. · Text alignment: Justified. Submission: Due in Week (4) Weight: This task is a 15% of your total grade for this subject. It assesses the following learning outcomes: · Outcome 1: Introduction to Financial Management and Time Value Money · Outcome 2: The Meaning and Measurements of Risk and Return · Outcome 3: Foundation of Business Finance Principles Rubrics Descriptor 9-10 The student demonstrates an excellent understanding of the concepts.

8-8.9 The student demonstrates a good understanding of the concepts. 7-7.9 The student demonstrates a fair understanding of the concepts. 6-6.9 The student demonstrates some, but insufficient understanding of the concepts. 3-5.9 The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student.

1-2.9 The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts. 0 The student leaves the question blank or cheats. Points are stated at the end of each question. Part I Summary Table Problem Insert here a Brief Solution Weight 1 a 10% b 10% C 10% d 10% 40% % % Problem 1: Your mother just gave you 8.000 €. a. Calculate the future of 8.000 €, given that it will be invested for 10 years at annual interest rate of 8%. b.

Recalculate part (a) using compounding period that is bimonthly. c. Now, lets look at what might happen if you invest the money at a rate 12% rather than 8%; recalculate part (a) for a semiannual interest rate. d. With respect to the changes in the interest rate and length of time the money is invested in parts a and c, what conclusion can you draw? Picture the problem, decide on a solution strategy, solve and analyze Problem 2 : If you deposit 10,000 $ today into an account earning an annual rate of return of 11%, how much accumulated interest would be earned in the third year ? Picture the problem, decide on a solution strategy, solve and analyze.

Problem 3 : You are offered 150,000 $ today or 300,000 $ in 13 years. Assuming that you can ear 11% on your money, which should you choose? Picture the problem, decide on a solution strategy, solve and analyze. Part II Problem 1: According to the five Foundations of Finance Principles, explain the difference between “Cash flow is what matters†and “Money has a Time Value†(20 points) Problem 2: George received 12,345 $ for his services as a consultant to the mayor’s office of his hometown of Boston. He has invested his money into an account paying 3,98% annual interest and left the account in his will to the city of Boston on the condition that the city could not collect any money from the account for 200 years.

How much money will the city receive in 200 years from George’s generosity? Picture the problem, decide on a solution strategy, solve and analyze. (20 points) Problem 3: You just received a bonus of 5,000 $. Answer these questions Picture the problem, decide on a solution strategy, solve and analyze. a) Calculate the future value of 5,000 $ given that it will be held in the bank for 5 years and earn an annual interest rate of 6%. (10 points) b) Recalculate part “a†using a compound period that is 1) semiannual and 2) bimonthly.(5 points) c) Recalculate part “a†using a time horizon of 12 years at an annual interest rate of 6%. (5 points) Problem 4 : From the following price data: a) compute the annual rates of return for W and K companies.

Picture the problem, decide on a solution strategy, solve and analyze. (15 points) Time W K $ 30 $ b) How would you interpret the meaning of the annual rates of return? (5 points) Problem 5: AXX has a beta of 0.795. If the expected market return is 10.5% and the risk-free rate is 3.5 %, what is the appropriate required return of AXX using CAPM (Capital Asset Market Model)? Summary Table Problem Brief Solution Weight % % 3 a) 10% b) 5% c) 5% 20% 4 a) 15% b) 5% 20% % DAT/565 v3 Market Analysis Research DAT/565 v3 Wk 3 Market Analysis Research Section 1 - Business overview, mission and vision Describe a proposed business of your choice. Address the following in your summary: · What type of product/service will it offer? · What is the intended market? · What is the business model?

Articulate the business’s mission and vision statements. Section 2 - Market analysis  Based on your intended product or service, describe the characteristics of your customer base. Investigate and list your current competitors. For example, if you’re manufacturing and selling exercise equipment, current competitors would be companies like NordicTrack or Nautilus, Inc. To simplify the process, limit yourself to businesses you are competing directly against.

If your business is a local bistro, then your competitors are other local similar restaurants. Research and estimate the size of your intended market. Market size is the number of potential customers or unit sales for your products/services. Consider the nature of your business when researching market size. For instance, if your business is a local bistro, then your market size is determined by the population within a reasonable radius of the restaurant, say, 5-15 miles maximum.

On the other hand, if your business intends to sell a low-weight mountain bicycle online, then the market size is the average number of low-weight mountain bicycles sold nationwide annually. Estimate the value of your market. Market value is the potential revenues the market has to offer. For instance, suppose low-weight mountain bicycles have a market size of 300,000 units a year with a $500 average price. Then the market value would be $150,000,000.

It can be difficult to estimate market value as you must make assumptions related to market size and average unit price. Use the expected value concept introduced in Chapter 6 of the textbook and the chart below to do the estimation. Expected Market Value: Mountain Bicycle Scenario  Assumptions  Probability p(x)  Units ('000)  Avg. Unit Price ($)  Market Value ('$000)  Expected Market Value ('$000) Pessimistic  0.,,000 Most Likely  0.,,000 Optimistic  0.,,500 Totals 1.,,500 Calculations: Probability, P(x) must sum to 1.0 (100%) Market Value = Units * Ave. Unit Price ($) Expected Market Value = Market Value * Probability Estimate the total addressable market or TAM.

This is the fraction of the total market you realistically estimate to get. Most businesses have a relatively modest market share, well under 20%. For example, if we expect to get a 5% share of the mountain bicycle market, then our TAM would be 0.05 * $50,500,000 = $2,525,000 or approximately $2.5 million. Section 3: Recommendation Based on the information collected, do you feel it is a good idea to continue with the implementation of the business? Explain why or why not.

Cite references to support your assignment. Format your citations according to APA guidelines. image1.png