How do you explain the use of time value of money (TVM) in business? What considerations are made when calculating TVM? How may you use TVM to create your own, or someone else’s, retirement plan? Answer The time value of money (TVM) is used in businesses for the purpose of finding out the suitability of an investment and understanding returns in the context of opportunity costs. It helps us to understand the relationship between the usage of money and the value of returns it provides from a particular venture or avenue based on the time it would take for providing the return and the future value of the return.
Why should organisations collect, file and maintain accurate financial records? To have a record of how the business is running. To determine how the business is sitting financially and to inspire different processes to assist in growing the business. It will also display what money is going where and whether there is any room for alterations in staffing, produce, and marketing. Basically, it is used to anaylse the business as a whole and per section and to determine performance.
Market research contains a collection of data which obtains knowledge into the needs, demands and preferences of customers and the dynamic of the market in which they are involved in. The process involves gathering, analysing and interpreting information about a market and about past, present and potential customers for the product or service; research looks at the spending habits, location and needs of the business’s target market, and the particular competitors that the business may be facing. Market research involves two types of data: * Primary information. This is information that comes from a business’s source – potential customers; this is generally gathered by a business for their own specific purposes. This type of research usually takes the raw data such as information collected through focus groups or/and surveys and interpret the data for different business purposes.
Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed. This process of identifying the hierarchy is called ________. • market valuation • market estimation • brand association • market partitioning 1. Which of the following is a strategy that uses the manufacturer’s sales force, trade promotion money, or other means to induce intermediaries to carry, promote, and sell the product to end users? • Strategic plan • Lock strategy • Push strategy • Pull strategy 1.
The financial planner should analyze your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you have asked for, this could include analyzing your assets, liabilities and cash flow, current insurance coverage, investments or tax
9 Conduct an in-depth financial analysis with regards to profitability, liquidity, and growth, and then provide an assessment of the overall health of the firm’s finances. 10 Using tools such as value chain and/or resource based view identify the competencies and skills the firm has that provide the organization with a competitive advantage and summarize their impacts (Be Specific). 11 Conduct a SWOT analysis on the company and describe its strategic relevance and summarize their impact. 12 Assess the strength of the company relative to the other Industry participants using a Competitive Strength Assessment (CSA) matrix. What conclusions can be made concerning the ability of the company to compete based upon your CSA matrix?
Financial Report of Target Corporation BUS401: Principles of Finance Financial Report of Target Corporation Introduction This report is an analysis of various financial analysis areas of the Target Corporation with an objective of advising the investors on the way forward with regard to investing in the organization. Current financial figures have been used to develop a financial forecast, in an attempt to provide a clear overview of potential profits for the Target Corporation. Explanations of the current financial state of the company, as well as projections for the future, will lead to a clear picture that investors can use when deciding if purchasing Target Corp. stock is the right addition to their portfolio. Company Background Information Target operates three segments: the US retail segment, US credit card segment, as well as the newest addition, Target Canada. These segments combine to form Target Corp, publicly traded on the NYSE as TGT.
The heart of the case is a model that is developed by the firm’s corporate treasury staff to help them think about the static tradeoff of tax shields and financial distress in a dynamic setting. The model includes the main sources of operating risks that the firm faces, including exchange rate risk and interest rate risk, and measures the impact of different capital structure policies on the firm value using Monte Carlo simulation. Questions Part I (50% of the grade) 1. Provide brief answers to the following questions. These are
If you had one that showed a breakdown by division, how would you use it?". A cash flow statement helps to evaluate performance because: It determines the ability of the company and each division to generate cash flows from operations. “Cash is king” for some analysts. We could see how is the cash for investments being allocated. How is the company financing their new capital expenditures, stocks or debt.