Week 1 - http://www.myessaybank.

com/view_paper/id/536
Week 2 - http://www.myessaybank.com/view_paper/id/544
Week 3 - http://myessaybank.com/view_paper/id/554
Week 4 - http://myessaybank.com/view_paper/id/552
Week 5 - http://www.myessaybank.com/view_paper/id/553


Phase 1 - Task 1
Task Type: Discussion Board 2
Deliverable Length: 400600 words

Primary Discussion Response is due by Wednesday
Primary Task Response: Within the Discussion Board area, write 400600 words that
respond to the following questions with your thoughts, ideas, and comments. This will be
the foundation for future discussions by your classmates. Be substantive and clear, and
use examples to reinforce your ideas.
Because this is your first week as vice president (VP) of finance at Apix, several members
of the top management team have stopped by your office. Timothy Russell, chair of the
audit committee, comes in first to talk with you about the Sarbanes-Oxley Act of 2002
(SOX).
Welcome to Apix, he says. I hope youre getting comfortable with us here. We have a lot
on our plate, and we need your assistance with some important compliance issues.
Thanks, Tim, you say. Mary Francis mentioned Sarbanes-Oxley when I talked with her
last week. Maybe we can start with that.
Right. As you know, our company is private and will eventually need to seek external
funding. In fact, we have some potential investors that are interested. However, they want
to know more information, especially about the compliance.
I would like for you to provide us with a write up that we could share with the investors.
Specifically, outline what the Sarbanes-Oxley Act is and what impact it has on financial
reporting. As well, discuss what Section 302 requires of the chief executive officer (CEO)
and chief financial officer (CFO).
Ok, Im on it!
Complete the following:
In 400600 words, outline what the Sarbanes-Oxley Act is and what impact it has
on financial reporting.
Discuss what Section 302 requires of the chief executive officer (CEO) and chief
financial officer (CFO).


Phase 1 - Task 2
Task Type: Individual Project
Deliverable Length: See assignment details

Respond to the following scenario with your thoughts, ideas, and comments. Be
substantive and clear, and use research to reinforce your ideas.
Mary Francis comes into your office later that morning.
Good news! I think weve got strong potential investors! Mary announces.
Thats great! you reply.
And now, they are asking for financial information Mary states.
Ok, I could provide a 50-page analysis for them! you say.
Thats exactly what they dont want. Im beginning to notice that some of the investors
dont have a strong finance background, and the last thing we want to do is scare them off
with too many financial figures Mary explains. I would like for you to complete a
presentation. However, I want you to keep it simple and clear. Using all 3 financial
statements, please provide an analysis on Apixs assets, liabilities, cash, and profit. As
well, choose 2 additional components on each of the sheets, and provide your initial
impression on the company financial situation. Do you think you could handle this?
Of course! Ill get started on this right away.
Mary also indicates that she would like between 1015 slides with 150200 words in the
notes page.



Financial Analysis: Financial Figures and Concepts



Phase 2 - Task 1

Task Type:


Discussion Board

Deliverable Length:


400600 words



Primary Discussion Response is due by Wednesday (11:59:59pm Central

Primary Task Response: Within the Discussion Board area, write 400600 words that
respond to the following questions with your thoughts, ideas, and comments. This will
be the foundation for future discussions by your classmates. Be substantive and clear,
and use examples to reinforce your ideas.

Apix Printing, Inc. functions in a competitive environment, namely commercial
printing. Assessing and comparing the company's performance against competitors is
critical to future endeavors of expansion and issuance of equity shares. Discuss the
following:

Define working capital, and explain why it is important.
Why would a company want to compute working capital?
Using the attached Balance Sheets (pdf file), compute working capital. Provide
your analysis regarding working capital.





Phase 2 - Task 2

Task Type:


Individual Project

Deliverable Length:


See assignment details



Respond to the following scenario with your thoughts, ideas, and comments. Be
substantive and clear, and use research to reinforce your ideas.

In anticipation of Marys request for comparative analysis, it will be useful at this
time to do some research. You know that you can obtain the financials of companies
within the same sector or Standard Industry Code as Apix Printing (e.g., commercial
printing), and that the North American Industry Classification System (NAICS) Standard
Industry 2012 code for Apix Printing is presently 323111. Use Hoovers Pro to search
for the sector information.

When you get to work the next day, you see the following e-mail from Mary:

Heres the list of financial ratios you asked for. I need you to explain the
computation of each and compute these for Apixs results for the financial statements
youre using for the PowerPoint presentation. Also, compare Apixs 2-year trend
results to that of other firms in the sector. Indicate how each of Apixs ratios
differ, and indicate whether the sector ratio or Apixs ratio is indicative of better
performance.

Explain the computation for each of the following, and compute each for Apix:

Current ratio
(Long-term) debt to equity ratio
Gross margin percentage
Net profit margin percentage
Return on equity percentage

You pick up the phone, hoping to catch her in the office.

Hello, she says. Did you get my list?

Yes, you say. Whats the best way to give you this information?

Put these comparisons in a table so the information is easy to look at, she says.
Ideally, we would like to use this as part of an executive summary that we can share
with the board of directors.

Is there anything else? you ask.

Youll need to summarize your results in the final paragraph, she says. Indicate
whether investors would find the financial analysis results of Apix competitive as
compared to rivals in the sector.

Tim Russell stops in your office as you are sending the memo.

Hows everything? he asks.

Very good, you say. After you fill him in on Marys e-mail, he sits down in the side
chair at your desk and you ask, Whats your opinion about the data?

Im confident that most of the data is trending positively, he says. However, we
need to be transparent and indicate any negative trends as well.

Present your findings of the above data in a table. Add a paragraph that summarizes
your results, indicating whether investors would find the financial analysis results
of Apix competitive as compared to rivals in the sector. Be sure to include both
positive and negative trends in your analysis.


Phase 3 - Task 1

Task Type:


Discussion Board

Deliverable Length:


400600 words



Primary Discussion Response is due by Wednesday Primary Task Response:

Within the Discussion Board area, write 400600 words that respond to the following
questions with your thoughts, ideas, and comments. This will be the foundation for
future discussions by your classmates. Be substantive and clear, and use examples to
reinforce your ideas.

The Apix Printing Inc. board of directors has recently completed its multiyear
strategic plan. The chief executive officer (CEO), John Matthews, and the vice
president (VP) of sales and administration, James Simeon, meet with you and Mary
Francis to discuss it. Included in the plan is an intent to diversify Apixs current
product line to include food packaging. Additional investment is required for this
expansion, and equipment and inventory will need to be procured and placed in service.

As the VP of Finance, you will soon need certain information for computing the net
present value (NPV) and the internal rate of return (IRR) for Apixs expansion
project. The calculations will be presented to the board at the next quarterly meeting
for approval. Today, you are meeting with CEO John Matthews and Luke Stewart, VP of
production and supply chain to discuss the information.

Luke is excited about the prospect of going into another line of business, and he
says, I know our employees will be eager to learn new processes if it means long-term
job security and profitability for the company.

Everyone will benefit if we are able to implement the project, says John. So, to
gather enough capital, we must present an appealing prospectus to shareholders and
bondholders. Naturally, investors want some assurance that their investment will yield
returns; and its up to us to properly assess our project given the cost of capital.

You nod in agreement and say, We need everyone in the organization to have an
appreciation for these calculations and the information that goes into them. These
estimates are important because the boards approval will allow the company to
diversify into the food packaging business.

Luke holds out both hands and says, You know, my understanding is somewhat basic on
the two theoretical approaches youve talked about. Lets go over some of the basics
now so my grasp of the financial end of this is clearer.

Good idea, Luke, you say. Ill prepare brief definitions of the project financial
valuation methodologies NPV and IRR.

You also need to explain the following to Luke:

How the application of weighted average cost of capital (WACC) would be applied to
each method
How companies assess the feasibility of a project according to these valuation
methodologies

That would be a big help, says Luke. Thanks.

Once you get my explanations, youll be able to explain it to others, you say.



Phase 3 - Task 2

Task Type:


Individual Project

Deliverable Length:


7501,000 words



Respond to the following scenario with your thoughts, ideas, and comments. Be
substantive and clear, and use research to reinforce your ideas.

Mary Francis has just returned to her office after attending preliminary discussions
with investment bankers. Her last meeting regarding the intended capital structure of
Apix went well, and she calls you into her office to discuss the next steps.

We will need to determine the required return for our intended project so that we
have a decision criteria defined for the project, she says.

Do you have the information I need to describe capital structure and to calculate the
weighted average cost of capital (WACC)? you ask.

I do, she smiles. We can determine the target WACC for Apix Printing Inc., given
these assumptions, she says as she hands you a piece of paper that says the
following:

Weights of 40% debt and 60% common equity (no preferred equity)
A 35% tax rate
Cost of debt is 8%
Beta of the company is 1.5
Risk-free rate is 2%
Return on the market is 11%

Great, you say. Thanks.

Be sure to indicate how these costs of capital might be used to determine the
feasibility of the capital project, Mary says. I want your recommendation about
which is more appropriate to apply to project evaluation, too. Let me know what you
think.

One more thing, she says as she stands up to signal the end of the meeting. You did
a good job with the explanations that you provided Luke the other day. Would you have
time to define marginal cost of capital for me so I can include it in my discussions
with investors? You seem to have a knack for making things accessible to nonfinancial
folks.

No problem, you say. Im glad my explanations are so useful!

For this assignment, complete the following:

Describe capital structure.
Determine the WACC given the above assumptions.
Indicate how these might be useful to determine the feasibility of the capital
project.
Recommend which is more appropriate to apply to project evaluation.
Define marginal cost of capital.
Phase 4 - Task 1
Task Type: Discussion Board
Deliverable Length: 400600 words


Primary Discussion Response is due by Wednesday
Primary Task Response: Within the Discussion Board area, write 400600 words that
respond to the following questions with your thoughts, ideas, and comments. This will
be the foundation for future discussions by your classmates. Be substantive and clear,
and use examples to reinforce your ideas.
The Apix Printing Inc. executive team has indicated that an assessment of the project
will be due in a weeks time.
As you review your calendar for the coming week, you are reminded that the due date
for an assessment of the expansion project is fast-approaching. Mary sees you in your
office and walks in to talk.
Im glad I caught you in your office, she says. Ive been thinking about the cost
of issuing equity and debt because I know it will be burdensome for Apix, says Mary.
On the other hand, we know that if we are to grow as a company, we must comply with
the requirements of the Securities and Exchange Commission (SEC) and issue equity as
well as debt.
Its a big decision, you agree. Maybe it would help if I identified the costs of
issuing equity as well as any advantages and disadvantages of engaging in this
process. I could also isolate two primary compliance requirements, specifically those
indicated by the SEC for an initial public offering (IPO) to which the firm must
adhere, as well.
You know, sometimes its helpful to see things written down when making a big
decision, she says. Thanks.
For this discussion, identify the costs of issuing equity as well as any advantages
and disadvantages of engaging in this process. Also, isolate 2 primary compliance
requirements, specifically those indicated by the SEC for an initial public offering
to which the firm must adhere.
In your response, contrast the process of issuing external equity with that of
obtaining venture capital. Would it be optimal for Apix to seek venture capital
instead of engaging in an initial public offering (IPO)? Why or why not?


Phase 4 - Task 2
Task Type: Individual Project
Deliverable Length: Completed worksheet

Respond to the following scenario with your thoughts, ideas, and comments. Be
substantive and clear, and use research to reinforce your ideas.
Over lunch, you and Mary meet to discuss next steps with the expansion project.
Do we have everything we need on sales and costs? you ask. It must be time to
compute the net present value (NPV) and internal rate of return (IRR) of the Apix
expansion project.
We have the data from James and Luke regarding projected sales and costs,
respectively, for the food packaging project, says Mary. It is feasible to project
that we will receive a tax break from this implementation. I have information from our
audit firm that indicates that future depreciation methods for taxes will be straight-
line; however, the corporate rates will be reduced to 35% as we assumed in our
weighted average cost of capital (WACC) calculation.
That sounds good, you say.
Right," says Mary. "You can use the WACC of 1% listed in the Excel file posted for
the computation of the NPV and comparison for IRR."
Ive got the information I need from Luke and James, you say. "Does this look right
to you? Heres what they gave me, you say, as you hand a sheet of paper to Mary.
Lets look at this now while were together, she says.
The information you hand to Mary shows the following:
Initial investment outlay of $30 million, consisting of $25 million for
equipment and $5 million for net working capital (NWC) (plastic substrate and ink
inventory); NWC recoverable in terminal year
Project and equipment life: 5 years
Sales: $25 million per year for five years
Assume gross margin of 60% (exclusive of depreciation)
Depreciation: Straight-line for tax purposes
Selling, general, and administrative expenses: 10% of sales
Tax rate: 35%
You continue your conversation.
It looks good, says Mary. Use this information from Luke and James to compute the
cash flows for the project.
No problem, you say.
Then, compute NPV and IRR of the project using the Excel spreadsheet I sent earlier
today, says Mary. Use the IRR financial function for the computation of IRR.
Okay, you say. "Ill submit my Excel file showing the computation of cash flows,
NPV, and IRR by the end of week so you can look at it over the weekend.
Thanks, says Mary.
Complete the above worksheet for this assignment.


Phase 5 - Task 1

Task Type:


Discussion Board

Deliverable Length:


At least 400 words



Primary Discussion Response is due by Wednesday

Primary Task Response: Within the Discussion Board area, write 400600 words
that respond to the following questions with your thoughts, ideas, and
comments. This will be the foundation for future discussions by your
classmates. Be substantive and clear, and use examples to reinforce your
ideas.

Over the weekend, you get a call from your brother. He is currently working
for a large restaurant chain in their management training program.

Hi, Lee, you say. Hows everything in the sandwich business?

Good, he says. Great, really. Im calling because I need your financial
brain.

Sure. What do you need?

Well, now that you have completed these financial projects, we are looking
to expanding into other industries and companies. How can you apply financial
analysis techniques to other corporate or business situations? What
opportunities do you see?

Okay. Sure. Let me think about this first, and Ill call you back after this
next week is over. Im working on some time-sensitive things at Apix, and I
want to be able to shift my focus.

Thats perfect, he says. I'll clear my calendar for next weekend so we can
get togetherwhatever is best for you.

Okay! See you soon.



Phase 5 - Task 2

Task Type:


Individual Project

Deliverable Length:


612 slides with 150200 words in notes section



Respond to the following scenario with your thoughts, ideas, and comments. Be
substantive and clear, and use research to reinforce your ideas.

Given that its food packaging customers have been inquiring about its ability
to supply complementary products, Apix is considering coffee packaging as an
additional diversification to its product line. You are able to catch James
in Lukes office, and you stop in to ask for their reaction to the query.

Hi, you say. Ive got a quick question for you both. May I interrupt for
just a minute?

Sure, says Luke. Whats up?

Now that you have had the opportunity to analyze the financial statements,
complete financial analysis, address the following:

Do you believe that there was sufficient financial information to make a
solid decision on what to do?
Was there further financial information that you required that was not
provided to you?
What financial figure do you believe was the determinant to your decision
and why?
How would you be able to apply this particular financial information to
other situations?
Discuss risk methodologies that were used in evaluating capital
budgeting.
What is the biggest risk for the company, and what can be done to
minimize the risk?

James laughs and says, We anticipated this question! Luke and I were just
putting our information into a PowerPoint presentation for you. You should
have it by the time you get back to your office.

Thanks so much! you say. I knew I could count on you.