The course uses The Principles of Managerial Finance (13th ed) as the text, and the requirement is for a ten page paper wherein the student estimates the present value of a real asset of the student?s choosing. Some examples of assets are: the value of an MBA, the value of a house, etc.
The paper must include math examples derived from the text to show the estimated value of the asset. I would like the paper to estimate the value of an MBA.

Graduate course work
Text book ? ?Principles of Managerial Finance? ?Brief 6th Edition, by Lawrence J. Gitman and Chad J. Zutter

Please see attachment for details.

Write a 2-3 page paper that addresses the following:

?Discuss some of the benefits and opportunities that come from belonging to professional associations in regards to managerial finance and accounting and how belonging to a professional association can assist in your career goals.
?Summarize the type of information you would expect a managerial accountant to monitor.

Paper should include an introduction with a thesis statement and a concluding paragraph. Please use complete sentences and no bullets or numbering in outline form. Please leave out all quotations from paper. Please include APA formatted intext parenthetical citations where needed and include an APA formatted bibliography. Please use at least one reference source with two intext citations. Please be on time with this order as I do have to rewrite the paper.
The Institute of Management Accountants is a good reference. They do have an official website.

Read the article below and do some of your own research using the CyberLibrary and Internet search engines. Then write a five page paper answering the following question:

Do you think APT or the CAPM is the best approach for a financial professional to use?
Defend your answer rigorously. And don't cop out by saying "I like both approaches", take a side and defend it.

Abstract:
The capital asset pricing model (CAPM) states that the return on a stock depends on whether the stock's price follows prices in the market as a whole. The more closely a stock follows the market, the greater will be its expected return. A technique called mean-variance analysis can be used to construct a series of portfolios that are efficient. Instead of looking at the covariances among stocks in a portfolio, the CAPM divides a stock's risk into 2 parts: systematic and unsystematic. The CAPM assumes that no investor has better information than another and that, if a stock's beta is known, its long-run return can be predicted. Researchers found that the CAPM works only in the long run. Despite doubts, the CAPS passed most of its early tests. The arbitrage pricing theory (APT) divides systematic risk into smaller component risks. Recent research has suggested that the 4-factor version of the APT is better at predicting the return on a stock than the simplest version of the CAPM. In some of its basic ideas, but not in its details, the APT builds on rather than replaces the CAPM.

Full Text:
Copyright Economist Newspaper Group, Incorporated Feb 2, 1991
MODERN portfolio theory has changed the way investors think about equities --though most investors would consider its starting-point other-worldly. The theory assumes that financial markets are "efficient", meaning that the price of any stock incorporates all publicly available information about that stock. The main task of the theory is to say what determines the stock's rate of return. (If it can do that, it will be allowed its assumptions.)

According to the theory's most famous offspring, the capital-asset pricing model (CAPM, pronounced CAP-M), the return on a stock depends on whether the stock's price follows prices in the market as a whole: the more closely a stock follows the market, the greater will be its expected return. This theory has stood up to the facts quite well.

The correlation between the price of an individual stock and the price of the market as a whole is known by a Greek letter; by the late 1960s hardly a securities house in London or New York did not use, or know about, beta.

Safety in numbers
The difficult road to beta and CAPM starts with Harry Markowitz, now a professor at the City University of New York. In 1952 Mr Markowitz published a path-breaking article called "Portfolio Selection". This paper (like many before) argued that investors demand a high return from risky investments. A risky stock, or a risky portfolio, is simply one whose returns tend to vary a lot.

Before Mr Markowitz, economists had been aware that a portfolio with lots of stocks was less risky than one with only a few. Stocks that perform badly tend to be offset by stocks that perform well, so the return on the portfolio as a whole varies less than the return on smaller lots of individual stocks. But Mr Markowitz also saw that the key to diversifying a portfolio lay not simply in the number of stocks it contained, but in the correlation of their returns.

If returns are highly correlated, then the portfolio, in effect, will not be diversified. If the correlation is low, the portfolio will be highly diversified and the risk much less.

An investor can easily calculate the past correlations -- or co-variances, to be precise --among the stocks in a portfolio, and the average return on each individual stock. With this information, Mr Markowitz showed that a technique called mean-variance analysis could be used to construct a series of portfolios that were "efficient" -- yet another use for that over-used word. Efficient portfolios are those which, in the past, yielded the highest return for any given risk.

Chart 1 should make the idea clearer. Risk is measured on the horizontal axis, and returns on the vertical axis. The crosses represent combinations of risk and return for individual stocks. The tinted area represents combinations of risk and return that can be achieved by mixing different stocks together in portfolios. The curved line represents the set of efficient portfolios. Any portfolio below and to the right of the line is "inefficient" because it offers a lower return for any given risk.

From this set of efficient portfolios, the investor would pick his preferred portfolio according to his appetite for risk. If the investor wanted a high return, no matter the risk, he might pick portfolio A in chart 1. If he preferred a middling amount of risk, he might choose portfolio B; if he was risk-averse he would pick portfolio C.

It turns out, however, that much more can be said about the desirability of these different portfolios -- even though all of them may be efficient. In 1958 James Tobin, of Yale University, extended the Markowitz model. He asked what happens if all investors can lend or borrow at the same rate of interest. The answer was surprising: all investors ought to choose the same portfolio of assets, regardless of their attitude to risk.

To see why Mr Tobin reached this startling conclusion, turn to chart 2, and imagine that an investor prefers the level of risk given by point C. He could simply buy the portfolio at C. Or, instead, he could put some of his money in B, and spend the rest on a safe, interest-bearing asset (treasury bills, say). But this would enable him to reach point D in chart 2 -- an investment as safe as C, but paying a higher return. So that is what he will do.

Equally, if he preferred the riskiness of A, he could borrow at the market rate of interest to buy B. By "leveraging" (borrowing against) his investment, the investor's risk would rise, but so would the return -- to point E. Just as D was unambiguously better than C, so E is unambiguously better than A.

The chosen investments all lie on a straight line that cuts the vertical axis at the market rate of interest -- the return on a riskless asset. And it touches the efficient-portfolio line, in this example, at B. If the investor prefers no risk, he can choose the fixed rate of interest and buy no shares; otherwise, he will buy portfolio B and either lend or borrow. The investor's job has two parts: first, find the point of tangency that defines the best portfolio; second, borrow or lend to adjust the balance between risk and return.

Evidently, investors behave like this only in models. But theorists were unwilling to abandon the trail -- and rightly so. There is no such thing as perfect competition, but in many ways market economies behave as if firms are perfectly competitive: the model is a revealing simplification. In the same way, investors do not all choose the same efficient portfolio -- but perhaps, in some respects, financial markets behave as if they do.

Before the model in chart 2 can be put to the test, it needs to be calibrated. The market rate of interest (where the straight line in chart 2 cuts the vertical axis) is known. But how to measure risk? And how to find B, the chosen portfolio? This is where the CAPM -- developed independently by William Sharpe of Stanford University, and by the late James Lintner of Harvard University -- comes in.

Instead of looking at covariances among stocks in a portfolio, the CAPM takes an ingenious short-cut. It divides a stock's risk into two parts: systematic and unsystematic. Systematic risk, or market risk, is the extent to which the share price is correlated with the market as a whole; it is measured by beta. A stock with a beta of one tends to rise by 10% for every 10% rise in the stockmarket; a stock with a beta of two tends to rise by 20% for every 10% rise in the stockmarket, and so on. A stock's unsystematic risk is the variation that is left after stripping out the systematic risk.

This distinction is extremely fruitful. In a diversified portfolio, unsystematic risks cancel each other out. Since investors can eliminate this sort of risk, it ought to have no bearing on a stock's return. But investors cannot eliminate systematic risk merely by diversifying: a fully diversified portfolio (eg, the stockmarket as a whole) has a beta of one. So the CAPM focuses on the relationship between systematic risk -- the beta of a stock or a portfolio -- and returns.

Since betas can be calculated, the model has a usable measure of risk to place on the horizontal axis in chart 2. What about B, the chosen portfolio? The CAPM assumes, among other things, that no investor has better information than another. It also accepts the framework of chart 2, which concluded that investors will all choose the same portfolio. Together these imply that the chosen portfolio is none other than the market itself.

From this comes a way to price stocks. The straight line in chart 2 passes through the so-called market portfolio, which, by definition, has a beta of one. As the discussion above showed, that straight line also reveals the the returns that will be required of stocks (or portfolios) with higher or lower betas. Nobody will hold a stock that is below the line; such stocks will fall in price until the expected return rises to the line. Stocks above the line will be in great demand; they will rise in price.

In equilibrium, all stocks will lie on the line. Individual investors need not worry about the market portfolio: they need only decide how much systematic risk they wish to take on. Market forces then ensure that any stock can be expected to yield the appropriate return for its beta.

Does it fit?
The CAPM says that if you know a stock's beta, you can predict its long-run return. It is a model -- a simplification. Some of its assumptions are questionable; but instead of asking whether the model is "true", ask whether it works. Most tests of the CAPM have concluded that it does: as predicted, stocks with high betas yield high returns.

In 1972 three researchers (Fischer Black, Michael Jensen and Myrton Scholes) divided the stocks listed on the New York Stock Exchange into ten portfolios. The first portfolio contained 10% of the securities with the lowest betas, the second the 10% with the next lowest betas, and so on. The study found that over 35 years there was an almost exactly straight-line relationship between a portfolio's beta and its average return, just as predicted by the CAPM (see chart 3).

However, niggling doubts remain. Stocks with a beta of zero tended to have a higher return than treasury bills, contrary to the CAPM's predictions. This suggests that investors do expect to be compensated for taking on unsystematic risk. Also, stocks with high betas tended to do slightly worse than predicted by the CAPM.

The CAPM works only in the long run. As Burton Malkiel of Princeton University shows in his excellent book, "A Random Walk Down Wall Street", the returns of America's mutual funds in the 1980s bore no relation to their betas; if anything, in fact, there was a slight tendency for low-beta funds to outperform high-beta ones. And the betas of individual stocks vary a good deal over time. (The beta of a portfolio of stocks is more stable, though, because changes in the betas of individual stocks tend to cancel each other out.)

Roll's rocket
Despite these doubts, the CAPM passed most of its early tests with honours. Then in 1977 it was dealt a more serious blow, by Richard Roll of the University of California at Los Angeles.

Recall that, according to the original CAPM, all investors choose to hold the market portfolio. Taking this idea literally, the market portfolio would include every financial asset in the world. The trouble with tests of the CAPM, suggested Mr Roll, is that they use a bad proxy for this market portfolio -- eg, the 500 biggest companies listed on the New York Stock Exchange.

Mr Roll showed that the CAPM will always look true if the market proxy (such as the S&P 500) is "efficient" in the sense defined by Mr Markowitz --ie, if no combination of the shares would give a higher return for the same risk. But this does not prove that each share's expected return is affected only by its correlation with the true market portfolio. Conversely, even if share returns were unrelated to betas derived from the S&P 500, shares might still be correctly priced in relation to the true market portfolio.

This objection might look like a quibble. But Mr Roll showed that a small change in the market proxy (eg, from the S&P 500 to the Wilshire list of 5,000 listed stocks) can completely alter the expected returns of a stock as predicted by the CAPM. Since nobody knows what the true market portfolio is, nobody can say whether the CAPM holds.

This attack on the CAPM sat comfortably with an alternative model of asset prices, developed by Stephen Ross of Yale University. Known as arbitrage pricing theory (APT), it now demands a chapter in just about every finance textbook.

Unlike the CAPM, the APT divides systematic risk into smaller component risks. It does not specify in advance what these are. In principle, any factor that might affect the return from a group of assets qualifies. An unexpected change in interest rates, for instance, might affect lots of companies' share price --not to mention bond prices, commodity prices and so on.

In practice, Mr Ross found that returns depend on: (a) inflation; (b) industrial production; (c) the investor's appetite for risk; and (d) interest rates. The APT says that the expected return on a stock is directly proportional to its sensitivity to each of these factors.

Recent research has suggested that the four-factor version of the APT is better at predicting the return on a stock than the simplest version of the CAPM. The model has the further advantage of explaining the pricing of assets in relation to each other, rather than in relation to an unidentifiable market portfolio. Also, the APT can be used to eliminate any specific risks that may worry a particular investor. For instance, a pension fund may want a portfolio that is immune to the inflation rate.

In some of its basic ideas, though not in its details, the APT builds on rather than replaces the CAPM. It may be a "truer" model and in many ways a more fruitful one -- but it is far harder to grasp and use, not least because it requires lots of complicated mathematics. If for no other reason, the CAPM will remain every investor's introduction to portfolio theory for many years to come.

Efficiency: the search goes on
THE CAPM assumes that stockmarkets are efficient. Is this true? The belief that a stock's price takes into account all information (about dividends, earnings and so on) as soon as this information becomes publicly available was once the bedrock of financial economics. Recently, it has begun to be challenged.

* If markets are efficient, no investors would look for new information, because they would not profit from acquiring it. So some inefficiency in a stockmarket is necessary to encourage investors to look for information.

* When assets have no close substitutes (a whole stockmarket, for instance, may have no substitute), investors may be unable to spot when they are under- or over-valued.

* Stock prices tend to move about much more than changes in their dividend payments would suggest.
* Big movements in share prices often fail to happen when there are major public announcements, or big changes in information.

* There are many smaller anomalies. Small stocks tend to do well in January; all stocks do well at the beginning of the month; most do badly on Monday mornings. Stock returns tend to be mean-reverting -- ie, bad days, and even bad years, are more often than not followed by good days, or good years.

Does this mean economists are abandoning clever models to explain how markets move? Not a bit of it. They are using their new mathematical techniques to explore sentiments, fashions, fads and speculative bubbles.

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Finance 6335 Managerial Finance Rodney Boehme
Page 1
CHAPTER 11: Arbitrage Pricing Theory (APT):
Coverage of this chapter is intended to be brief. However, it is important to understand both the
differences and similarities between the CAPM and APT, and also that an asset's required return
should be a linear function of that asset's sensitivities to the nondiversifiable or systematic risk.
The first task is to revisit what we define as relevant risk. From Chapter 10, we can define the
total risk of any one individual security as:
Total Risk = Systematic risk + unsystematic (diversifiable) risk
The Capital Asset Pricing Model assumes any asset's systematic or macroeconomic risk is
captured by one risk factor - the market risk factor. In a well-diversified portfolio, firm specific
or diversifiable risk of the various stocks cancel out one another (they are random and
independent among the firms) and is essentially eliminated in any well-diversified portfolio.
Adding one new stock to a well-diversified portfolio affects the risk of the portfolio depending
upon the asset's degree of market risk, as measured by its Beta. The asset's firm specific risk
won't contribute to portfolio risk. The CAPM is represented as:
E(Ri) = Rf +Bi[Rm - Rf] , where:
E(Ri) = expected or required return on the asset "i".
Rf = risk-free rate of return (typically U.S. Treasury Bills, although many use the 5 to 7 year
Treasury bond yield).
Bi = the Beta of the asset's returns, i.e., its sensitivity with respect to some well diversified
portfolio or market basket of stocks such as the Standard and Poors 500 Index. The market
portfolio should actually consist of a Global Wealth Portfolio of all the world's investment
assets, but such a portfolio is not observable or measurable. This Beta is to serve as a
measurement of the asset's level of market or systematic (non-diversifiable) risk.
Rm = the required return on a market basket of stocks such as the S&P 500 Index or Morgan
Stanley World Index of stocks (since we cannot accurately measure the returns to any Global
Wealth Portfolio).
The CAPM also assumes that the systematic or market risk of any security is captured by only
one risk factor; its Beta. The CAPM also assumes that:
1. Investors will hold the market portfolio as their portfolio of risky assets.
2. Investors have homogeneous expectations about securities and their relationship to each
other.
3. Asset returns are multivariately normally distributed.
4. The only relevant or priced risk factor is the asset's level of market or Beta risk.
5. A linear relationship exists between Beta and expected return.
6. Firm specific or diversifiable risk is not relevant, since it is easily eliminated.
Finance 6335 Managerial Finance Rodney Boehme
Page 2
The Arbitrage Pricing Theory or APT assumes that:
1. Only the systematic risk is relevant in determining expected returns (similar to CAPM).
However, there may be several non-diversifiable risk factors (different from CAPM,
since CAPM assumes only one risk factor) that are systematic or macroeconomic in
nature and thus affect the returns of all stocks to some degree.
2. Firm specific risk, since it is easily diversified out of any well-diversified portfolio, is not
relevant in determining the expected returns of securities (similar to CAPM).
The APT model:
1. Does not require investors to hold any particular portfolio. There is no special role for
any market portfolio.
2. Only systematic or non-diversifiable risk matters, but there may be several of these
macroeconomic risk factors that affect the returns of well-diversified portfolios. It is up
to the researcher to identify the risk factors. Such risk factors might happen to be
unexpected changes in industrial production, inflation, real interest rates, etc.
3. Investors must agree on what the relevant risk factors are. There must be a linear
relationship between the risk exposure or sensitivity (its loadings on the risk factors) and
expected return of a security.
4. If any asset offers an expected return that is out of equilibrium with respect to the risk
factors, then investors can build a zero wealth portfolio in order to exploit the mispricing
of the security. This is known as an arbitrage in expectations.
Zero wealth portfolio: requires that some assets be sold short and the proceeds used to purchase
(go long on) other assets. Short selling is the borrowing and selling of an asset that you do not
own. You must later repurchase and return the asset. You make a profit when you are able to
buy back the asset for a lower price than you sold it for.
A representation of a three factor APT model for IBM common stock (this one assumes that
there are three economy-wide or systematic risk factors driving the returns of stocks in a well
diversified portfolio) would look like the following:
E(RIBM) = Rf + BIBM,1[R1 - Rf] + BIBM,2[R2- Rf] + BIBM,3[R3 - Rf] , where
E(RIBM) = expected or required return on IBM common stock.
Rf = risk-free rate of return (typically Treasury Bills)
BIBM,1 = IBM's sensitivity (its "loading" or "Beta" with respect to risk factor number 1.
Analogous definitions exist for BIBM,2 and BIBM,3.
[R1 - Rf] = the risk premium of any asset having a Beta = 1 with respect to risk factor number 1
and Beta = 0 with respect to risk factors number 2 and 3. An analogous definition exists for the
other two risk premium terms [R2 - Rf] and [R3 - Rf].
In statistical terminology, the APT risk factors are orthogonal to each other.

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APT - Arbitration Pricing Theory
Arbitration pricing theory is based on a much lesser number of assumptions about the stock market character as compared to CAPM. The "arbitration" concept suggests earning guaranteed no-risk profit from market speculation. As arbitration example can serve a situation when a stock is traded in different markets, while the current market price of this stock in those markets is different. In that case the following sequence of actions is apparent: sell the stock short (sale of borrowed securities) in the market where the stock price is higher and buy the same amount of stock in another market where it costs less. Imagine now that such an opportunity really exists. Since there are many participants in the stock market, it is hardly worth hoping that nobody else would notice such an opportunity - notice they will, and start capitalizing on it. But "unexpected" demand increase in one market with lower stock prices, and offer increase in another market with higher stock prices, will inevitably result in the leveling of prices: higher demand stimulates price increase, while higher offer brings it down. The situation described is an example the simplest arbitration. However, there might be other, more complex types (multi-stage, distributed in time).

Arbitration pricing theory is based on one assumption: arbitration (of any kind) is impossible in balanced market conditions. If such an opportunity exists, market will quickly "liquidate" it.

Further reasoning on impossibility of arbitration portfolio creation leads to basic equation of asset pricing, which can be considered as a practical result of this theory. It is interesting to note the fact that APT equation is a generalization of CAPM equation, although the arbitration theory has been created as its alternative.

According to this equation, asset value fluctuation is influenced not only by the market factor (market portfolio value), but by other factors as well, including non-market risk factors - national currency exchange rate, energy prices, inflation and unemployment rates, etc. If only one factor is considered as risk factor - market portfolio value - the equation will coincide with that of CAPM.

What is multi-factor modeling?
Taking several factors into account allows creating a stricter model. It results in:

More precise asset price change forecasting;
Reduction of non-systematic risk, even without portfolio creation.
Classic CAPM model takes into account only one factor, and asset is characterized by two parameters: "beta" sensitivity coefficient, describing risk associated with this coefficient, and average residual yield E responsible for specific risk, i. e. risk not explainable with the selected factor influence. APT model provides for a possibility of taking into account several factors. Now asset is characterized with a number of "beta" parameters, each of them representing asset sensitivity to a particular factor and characterizing systematic risk associated with this factor, and, as before, residual yield E. However, now the amount of specific (not factor explained) risk has become lesser.

Any problems?..
Transition from single-factor CAPM model to multifactor APT model provides not only advantages, but raises new problems as well.

How many and what factors should be selected for a multifactor model?

This is a really big problem not only for APT model, but for any multifactor model describing the stock market as well. It is absolutely clear that not all parameters available for analysis influence asset price behavior. However, it is not so easy to understand, which and how many of them do. It is not constructive to build a model of all factors available at once - insignificant factors will play a role of noise and may considerably distort any results received with the model.

Are risk factors identical for all assets alike?

The second question is more delicate than the first one. And more complicated. While intuitive decision could be offered for solving the first problem - select some basic macroeconomic or industry parameters influencing, according to intuitive perception, the stock prices - that could not be done for solving the second problem. Because behavior of each asset is, generally speaking, individual. Therefore, each asset has his own composition and number of risk factors. What reasons should decide, which set of factors match one asset, and which set of factors match another one?

Is composition and number of risk factors changing with time?

Assume that somehow one could manage to find composition and number of factors influencing a concrete asset. Can that factor composition change over a certain period of time? Our research results demonstrate an unsteady character of interrelations in the stock market. It means that the model is applicable only during a limited period, after which it becomes necessary to rebuild it. The risk factors may be different, too.

Can factors influence the price not immediately, but after a certain period of time?

The question bears the answer in itself - they certainly can. Thus, increase in oil prices may have an effect on transportation stock prices not at once, but some time later. If there are several factors, each factor may have its individual timing. How do we determine it?

How to rank companies by several parameters at once?

Having constructed a CAPM model for several assets, you could sort them out by sensitivity, systematic or non-systematic risk, with the aim of selecting the most attractive assets. In a multifactor case, asset is characterized by a number of systematic risks associated with each factor. How to analyze them all?

No Problem !
We will solve all these uneasy problems for you. Our methods and technologies are specially developed to solve such problems. Service complex offered within the framework of a multifactor model contains integrated mechanisms to solve most of the problems listed above.

Services offered within APT model framework:

Selection of significant factors for an asset or groups of assets;
Selection of significant factors for portfolio;
Taking into consideration factor interaction;
Definition of factors' specific time of influence on the asset;
Calculation of "Beta" parameters for an asset or list of assets;
Calculation of "Beta" parameters for portfolio;
"Beta" parameter absolute error evaluation;
Systematic risk calculation;
Non-systematic risk calculation;
Estimation of overevaluation/underevaluation;
Yield forecast;
Asset ranking by "beta" set of parameters;
Asset ranking by set of systematic risks.

E-mastertrade.com

Reading
Books


Stephens J (2001) Managing Currency Risk
John Wiley and Sons
Pages 33 to 40


Buckley A (2004) Multinational Finance (5th Ed)
FT Prentice Hall
Pages 180 to 190
(There is an electronic copy of these two books are available in the library electronic resources)

Journal Articles

Why firms in the UK use interest rate derivatives
Adedeji A, Baker R.
Managerial Finance Volume 28 Number 11 2002

UK Corporate use of derivatives
Bailly N, Browne D, Hicks E, Skerrat
European Journal of Finance 9 (163-193) (2003)

International evidence on Financial Derivative usage,
Bartram S, Brown G, Fehle F
Financial management Spring 2009

There are faxes for this order.

I am to make a financial comparision between Liz Claiborne and Kenneth Cole. The paper must discuss the ratios of each company. First page should discuss liquidity ratios, second page should discuss activity ratios, third page should discuss debt ratios, fourth page should discuss profitablilty ratios, and the last page should discuss market ratios and the conclusion. Remember that each page should be a comparision of both companies. The book used in class is called Principles of Managerial Finance Tenth Edition by Lawrence J. Gitman. Pages 70 - 71 discuss all those sections mentioned above. Thsnk you!!

Hi,
Here is my finance project.The subject is Travelers group and Citigroup merger-Travelers group acquiring Citigroup merger.You can use both subject or either one. If you have any question or concerns please don`t hesitate to ask me.

Managerial Finance Project

Your team of consultants has been hired to evaluate a merger or acquisition that took place at least 2 years ago. The firm that engaged you is interested in executing a similar deal and will use your analysis as a basis to move forward or not with the acquisition. You will provide quantitative and qualitative analysis of the transaction and provide your recommendation to the executive team that hired you. If the acquisition was deemed a success you should explain why, consequently if the deal is deemed a failure provide structural changes or execution imperatives that should exist in this new deal to ensure success. Keep in mind in some cases you may recommend that they should not proceed with the deal. Your deliverables will include a written analysis 4 to 8 pages and a 10 minute PowerPoint presentation to the executive team. Your paper should be in MLA format.

Qualitative analysis will look at facts and observations to potentially place a premium on the quantitative valuation of the business. Qualitative Analysis could look at: synergies, risk considerations, market trends, and growth opportunity.
Quantitative analysis is based on an evaluation of factual based numbers that can be used to support the valuation of the business. Some of the data will come through a re-evaluation of the actual business numbers (pro-forma statements) and others will come from industry comparables.

I won't have the case study until March 14. I will submit it to you on March 14 and needed back on March 16 from you. Below are the requirements and need to know who will be working with me immediately in case he/she needs more info. Please submit softcopies of sources/references and exhibits. Thanks

1. Conceptual Understanding of the Case Study - Clearly summarize the main themes presented in the case study. Summary of Decision Situation
2. Identifies Issues/Problems from the Case Study -Identify and briefly explain each of the issues/problems presented in the case study. (NOT TO CONFUSE PROBLEMS WITH SYMTOMS) ??" Problem(s) Identification
3. Connects Theory and Practice - For each issue identified in Question 2, cite appropriate theories and information gained from an MBA curriculum that could be applied toward resolution of these issues (AT LEAST 6 THEORIES). Justify the selection of each. Identification of Alternatives/Key decision criteria used to evaluate each alternative.

ECON 537 Managerial Economics
ACTG 532 Managerial Accounting
MIS 632 Information Systems for Managers
FIN 631 Managerial Finance
MGMT 630 Organizational Behavior
MGMT 639 Legal & Social Environment of Business
MGMT 620 High Performance Leadership
MGMT 634 Business Strategy
MKTG 630 Marketing Management
MKTG 620 Marketing New Venture

4. Links to Course Readings and Additional Research- For each issue identified in Question 2; cite appropriate theories and information gained from a review of the literature OUTSIDE of an MBA curriculum that could be applied toward resolution of these issues (AT LEAST 6 THORIES PLUS ADDITIONAL RESEARCH). Justify the selection of each. Comprehensive analysis of the alternatives using key criteria.
5. Recommendations
Generate appropriate, realistic, and insightful recommendations that address each of the issues/problems identified in Question 2 which are clearly supported by the theory and information gathered in Questions 3 and 4 Recommendations including implementation guidelines.

Formatting Guidelines for the Written Report

? APA formatting style is required; and citation of references page. 20 + Academic/Professional References ONLY
? The report should be complete, concise, and organized using five double spaced pages of text. plus exhibits (additional non-textual information beyond the maximum report length). Note that these are maximum limits. 12 times new roman. 1 margins.
o Limit exhibits to specific types of analyses (such as: financial, capacity, cost competitiveness, etc.) and information that supports and is relevant, but would be too detailed for the body of the report.
o Exhibits should be more than an extension of the text.
? Reports should be thoroughly proofread, Spelling, grammar, and organization in PLAIN ENGLISH.

The Seventeen Slide approach to the MBA Case Study

Slide 1 ??" introduce the managerial problem you will be addressing. Talk about background information
Slide 2 ??" identify the 6 theories you will use to address the managerial problem. Explain why these theories are the most important for addressing the problem.
Slide 3 ??" Outline how the 6 theories will be integrated to solve the problem. In other words, explain why the theories must be used in combination to solve the problem. Put yet another way, how does the output of one theory become the input in the next theory.
The next two slides are repeated for each theory
Slide 5, demonstrate how the 1st theory would be applied to your problem. You should focus on 1 element of the theory and it should be the most important for your situation. Make certain you use all aspects of the application including identifying what data is relevant and how it would be used to implement the theory.
Slide 6, explain the transition from the theory to the next theory. In other words, explain in detail how you would use the information from the 1st theory as input into the 2nd theoretical analysis. This should be done in the context of the application. You should provide an example of the type of conclusion drawn from the first analysis and show where that fits into the second analysis.
Slide 7, Explain the basic elements of the 2nd theory and how it works.
Slide 8, demonstrate how the 2nd theory would be applied to your problem. You should focus on 1 element of the theory and it should be the most important for your situation. Make certain you use all aspects of the application including identifying what data is relevant and how it would be used to implement the theory.
Slide 9, explain the transition from the theory to the next theory. In other words, explain in detail how you would use the information from the 1st theory as input into the 2nd theoretical analysis. This should be done in the context of the application. You should provide an example of the type of conclusion drawn from the first analysis and show where that fits into the second analysis.
Slide 10, Explain the basic elements of the 3rd theory and how it works.
Slide 11, demonstrate how the 3rd theory would be applied to your problem. You should focus on 1 element of the theory and it should be the most important for your situation. Make certain you use all aspects of the application including identifying what data is relevant and how it would be used to implement the theory. DO SAME PROCESS TILL THE SIX THEORIES ARE COVERED

EXAMPLE

Example: Mare Model (Theory 1) to ABC Analysis (Theory 2)
Slide 4: Mare Model: Identify needs, size of market, CSFs to understand opportunity attractiveness / business strategy
Slide 5: Mare Model applied to problem (identify needs)
Slide 6: Stakeholder implications for Mare Model
Slide 7: MARE Model sizes opportunity and strategy for the basis costing data for the ABC Analysis
Slide 8: ABC Analysis: Costing of business activities per activity per usage

Slide 12 ??" Summarize how the three theories are integrated to address your managerial problem. Repeat the examples to show how the integration works for your example (some data might be used in the example).
Slide 13 ??" Identify the relevant stakeholder for your decision and present a relatively complete map of the stakeholder relationships including indirect stakeholders
Slide 14 ??" Identify the stakeholders most critical for your decision and justify their relative importance.
Slide 15 ??" Discuss the implications of your decision for the stakeholders. Make certain to identify at least one stakeholder that will/could be negatively impacted by the decision.
Slide 16 ??" Summarize how stakeholder considerations affected your recommendation including how tradeoffs among stakeholders were resolved.
Slide 17 ??" Draw your final conclusions about the analysis. This can include a final recommendation based on a more complete analysis and should include recommendations for stakeholder actions.


There are faxes for this order.

Format
Basics:
The document should be double spaced in 12 pt Arial or Times New Roman font. The footer should contain your name, the paper title and the page number. The page limit for the body of the paper is 12 pages (plus a single title page [see format below] and references. There is no minimum length.
The sections of the paper need to be clearly labeled. All of the following sections must be included.
1. Title Page: A single page with your first and last name and student email address in upper right corner, title of paper.
2. Abstract: Should be a short (50 word maximum) summary of the paper (this section of the paper should be single spaced).
3. Introduction: Basic description of the phenomena being investigated and justification why it needs to be researched.
4. Literature/Theory review: You need to review a minimum of 5 relevant and related scholarly research and theories on the phenomena using proper citation format (refer to journals in your area for guidance, typically APA). Scholarly sources are journals ??" not trade publications or newspapers. The balance of your required sources can come from trade publications, newspapers, etc.
5. Theoretical model with hypotheses: In this section you will provide a theoretical framework (conceptual model) and the specific hypotheses you want to test. This section demonstrates how you can conceptualize your ideas obtained from the literature/theory review in a concise and visual way.
6. References: APA style listing of all of the references you used in your RIO. Minimum of 10 references (at least 5 from scholarly journals).

REFERENCES SHOULD COME FROM THESE RESOURCES:
Accounting Area Publication Tiers List
Elite
(The top few journals, usually no more than 4-5, widely considered as the premier journals (A+ level) in discipline.)
Journal of Accounting and Economics
Journal of Accounting Research
The Accounting Review
Contemporary Accounting Research
Review of Accounting Studies
Accounting Organizations & Society
High Quality
(8-15 journals--substantial visibility in the discipline recognized by academic peers as A or A- level)
Accounting Horizons
Advances in Accounting
Auditing
Behavioral Research in Accounting
CPA Journal
Issues in Accounting Education
Journal of Accountancy
Journal of Accounting & Public Policy
Journal of Accounting Auditing & Finance
Journal of Accounting Literature
Journal of Information Systems
Journal of Management Accounting Research
Journal of the American Taxation Association
National Tax Journal
Research in Accounting Regulation
Tier 2
(Quality outlets--not as high quality or visibility as Tier 1 journals. recognized by academic peers as quality--most schools see as B level)
Abacus
Accounting and Finance
Accounting and the Public Interest
Accounting Education: a journal of theory, practice&research
Accounting Educators' Journal
Accounting Historians Journal
Advances in Accounting Education: Teaching&Curric. Innovations 1
Advances in International Accounting
Advances in Management Accounting
Advances in Public Interest Accounting
Advances in Taxation
ATA Journal of Legal Tax Research
British Accounting Review
Business Horizons
Critical Perspectives on Accounting
European Accounting Review
Global Perspectives on Accounting Education
International Journal of Accounting
International Journal of Managerial Finance
Journal of Accounting and Business Research
Journal of Accounting Education
Journal of Accounting Ethics?? (Iowa)
Journal of Cost Management
Journal of Emerging Technologies in Accounting
Journal of International Accounting Research
Journal of International Accting Auditing & Tax
Journal of Taxation
Management Accounting Research
Research in Governmental and Non-Profit Accounting
Research On Professional Responsibility And Ethics In Accounting
Tax Notes


I will submit our preliminary outline for the paper. The focus of the paper needs to be on the opinion of what we think is important.


There are faxes for this order.

BU340 Managerial Finance I


1. What form of partnership allows some of the investors to limit their liability? Explain by giving examples.
2. When does insider trading occur? What government agency is responsible for protecting against the unethical practice of insider trading? Explain by giving examples.
3. Explain how the tax code allows depreciation to contribute to cash flow.
4. Explain why inflation may restrict the usefulness of the balance sheet as normally presented.

Fin 501 Mod 1 Case

An IPO for AVG?

Initial public offering (IPO) is defined as the first sale of stock by a company. Companies like AVG (http://www.avg.com/ca-en/homepage) looking to further the growth often use an IPO as a way to generate the capital needed to expand. AVG is uniquely positioned to spearhead innovation in the industry thanks to its employing some of the world?s leading experts in software development, threat detection, threat prevention, and risk analysis. You can read more by accessing the following information source:

PR Newswire AVG Technology (2012). AVG technology announces filing for proposed initial public offering. Retrieved May, 2012, from http://www.avg.com/ca-en/press-releases-news.ndi-3521 ; http://www.avg.com/ca-en/homepage

1) What type of IPO should AVG use - a traditional IPO or an online auction? Based on your analysis and findings, what would you recommend to the executives of AVG? Please explain your reasoning in detail.

To answer the above question, please include responses to the following issues together with other issues that you think are important:

?The type of investors AVG is likely to attract

?The lessons learned from Google and Morningstar from their auction IPOs

?Advantages of each type of IPO

?Costs of each type of IPO (e.g., US Securities and Exchange Commission fees, stock brokers? commission, other fees, etc., but how much? Please provide numbers and ratios in the paper.)

?Risks of each type of IPO

2) What do you perceive you have learnt in Module 1 Case Assignment? Which of the following learning objectives do you feel you have mastered?

?Describe the steps a firm must take in order to go public

?Identify success factors for a firm making the IPO decision

?Discuss and analyze the different types of IPOs

Please provide your evaluation of the Module 1 Case Assignment in brief.

Please refer to the readings below for the sources:

Required Readings:

A good place to start is this link from the government - click on the other links once you reach this page:

U.S. Securities and Exchange Commission (2007). Initial public offerings. Retrieved May, 2012, from http://www.sec.gov/answers/ipo.htm

The following source of information is little old but helpful to answer the Case Assignment questions:

Kamlet, A. & Rini, W. (1995). Stocks: Initial public offerings. Retrieved May, 2012, from http://invest-faq.com/articles/stock-ipo.html

Case Assignment Readings:

Clinton, L. (2011). Traditional IPO vs. auction-based IPO. Retrieved May, 2012, from http://www.essortment.com/home/traditionalauct_sibt.htm

Investopedia.com (2011). What Does Initial Public Offering - IPO Mean? Retrieved May, 2012, from http://www.investopedia.com/terms/i/ipo.asp

Hensel, N. (2009). An empirical analysis of the efficiency of online auction IPO processes and traditional IPO processes. International Journal of Managerial Finance, 5(3), 268-310.

2. Internet Article
Using the Electronic Reserve Readings (ERR) for Managerial Finance I, the Course Web Links, University Library, Internet, and/or other sources of literature, locate an article that discusses ethics in a financial business context. Write a 700-1,050-word paper analyzing the impact of financial ethics on business.

* I will send a .pdf article in emial THIS MUST BE CITED in the paper. I have a ebook in .pdf 12MB that should be used as a reference for any statements that is not common knowledge. Both will be attached in email.

COMPANY TO RESEARCH IS EtQ, Inc. 399 Conklin Street, Farmingdale, NY 11735
This is the main office

THIS IS GRADUATE LEVEL WORK. TEXT BOOK USED IN CLASS THAT IS REFERENCED IN THESE INSTRUCTIONS BELOW IS: PRINCIPLES OF MANAGERIAL FINANCE, BRIEF 6TH EDITION BY LAWRENCE J. GITMAN AND CHAD J. ZUTTER

1. Research paper no more than 5 pages. Use APA format with sources and cites.
2. Research your companies financials using as a directional guide the key ratios on pages 80 and 81
3. Please use the last 2 years of actual results and the company generated forecast for the coming year. If the forecast is not available for your use, please use the last 3 years of actual data.?
4. You may change the name of the company and modify numbers to protect the privacy of your companies financials, if what you are sharing with your instructor is not public information
5. Select a few ratios from each category below (DROP FIXED PAYMENT COVERAGE RATIO)
6. Select those ratios that you feel are most important to tell the story of how your company has performed and will perform in 2012
7. Using the format displayed on page 78 and 79, write one or more paragraphs under the following categories:

? Liquidity
? Activity
? Debt (ADD FLM TO THIS SECTION)
? Profitability
? Market

8. In the body of the text for each category use the ratios that you selected for that category to tell your story.
? You may use tables and charts where appropriate
? You may uncover trends. For example, the current ratio has increased after the 2008 credit crunch.
? You may uncover changes which were caused by strategic management decisions in earlier periods
? In your interpretive analysis of the category and the ratios you may wish to emphasize:
a. Strengths
b. Weaknesses
c. Opportunities
d. Threats if there are any
e. Yearly comparisons
f. Comparison to peer groups or your major competitor

Managerial accounting emphasizes short-term profit analysis, so the income statement is very important. Consequently, we?ll examine and discuss income statements in this first case. The assignment for this module is divided into two parts:

Part I:

Use the background material and Internet to answer the questions below.

Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to:

How is managerial accounting different from financial accounting?
Comment on the different needs and use of financial information for internal purposes.
The managerial accounting profession and its role in today?s business environment. How has it changed over time?
Comment on the Certified Management Accountant (CMA) designation.

Part II:

Keep the analysis from the SLP in mind when addressing the questions below.

Explain the main differences between the absorption and contribution (behavioral, variable) income statements. Will net income always be the same under the two approaches? If not, explain the difference.
Comment specifically on why companies feel the need to create yet another income statement in a different format. What information can the company gleam from this approach which is helpful as a tool in the decision making process.
Explain situations in which break-even analysis can be a useful tool. Provide a specific example.

Managerial Practices Executive Summary
Research previous course work and learned concepts.
Executive summary in which you analyze organizational behavior concepts associated with common managerial practices involved in day-to-day operations within criminal justice settings. Be sure to identify professional standards and values that apply across various components of the criminal justice system on a national level.

Managerial accounting class. Examine the budgeting process at a company. (use a us fortune 500 company) identify strengths and weaknesses of the company's Budgeting process.

Managerial Accounting

The assignment is about a company SleepEase Ltd.
Topics are Absorption and Marginal costing.
2000 words
Plagiarism is checked so no plagiarism.

All the information are given in the attached files. Coursework brief and instructions showing how the work should be done.

Managerial accounting is all about making informed decisions. Cost-volume-profit (CVP) analysis is one of the most powerful tools available for managers to crunch numbers, gain a thorough understanding of a situation, and perform a what-if analysis.

Write a paper of no less than 750 words in which you discuss the CVP concepts and share how CVP analysis may be helpful to an entrepreneur starting a new business.

Please only write 1 page on this:
How does one use Cost-Volume-Profit to make informed business decisions?

Managerial Economics ECN400

Select an article in a newspaper or magazine that discusses a government policy on goods or services. Analyze the situation and in 600?1200 words:

?Summarize the article using at least three economic terms and theories covered in class.

?Identify the impact of the policy on Demand or Supply of the good(s) or service(s). Discuss the change(s).

?Draw a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate the change of the curve.

SINGLE SPACED...........

THE COST OF CAPITAL FOR GOFF COMPUTER, INC.
You have recently been hired by Goff Computer, Inc. (GCI), in the finance area. GCI was founded
eight years ago by Chris Goff and currently operates 74 stores in the Southeast. GCI is privately
owned by Chris and his family and had sales of $97 million last year.
GCI primarily sells to in-store customers. Customers come to the store and talk with a sales
representative. The sales representative assists the customer in determining the type of com-
puter and peripherals that are necessary for the individual customer's computing needs. After
the order is taken, the customer pays for the order immediately, and the computer is assembled
to fill the order. Delivery of the computer averages 15 days, but is guaranteed in 30 days.
GCI's growth to date has been financed from its profits. Whenever the company had suffi-
cient capital, it would open a new store. Relatively little formal analysis has been used in the
capital budgeting process. Chris has just read about capital budgeting techniques and has
come to you for help. The company has never attempted to determine its cost of capital, and Chris
would like you to perform the analysis. Since the company is privately owned, it is difficult to deter-
mine the cost of equity for the company. You have determined that to estimate the cost of capital for
GCI, you will use Dell as a representative company. The following steps will allow you to calculate this
estimate.

1. Most publicly traded corporations are required to submit 10Q (quarterly) and 10K (annual) re-
ports to the SEC detailing their financial operations over the previous quarter or year, respec-
tively. These corporate filings are available on the SEC Web site atwww.sec.gov. Go to the SEC
Web site, follow the "Search for Company Filings" link, the "Companies & Other Filers" link,
enter "Dell Computer," and search for SEC filings made by Dell. Find the most recent 10Q and 10K
and download the forms. Look on the balance sheet to find the book value of debt and the book
value of equity. If you look further down the report, you should find a section titled either "Long-
term Debt" or "Long-term Debt and Interest Rate Risk Management" that will list a breakdown of
Dell's long-term debt.

2. To estimate the cost of equity for Dell, go to finance.vahoo.com and enter the ticker symbol
"DELL." Follow the various links to find answers to the following questions: What is the most
recent stock price listed for Dell? What is the market value of equity, or market capitalization?
How many shares of stock does Dell have outstanding? What is the beta for Dell? Now go back
to finance.yahoo.com and follow the "Bonds" link. What is the yield on 3-month Treasury bills?
Using the historical market risk premium, what is the cost of equity for Dell using the CAPM?
3. Go to investor.reuters.com and find the list of competitors in the industry. Find the beta for each
of these competitors, and then calculate the industry average beta. Using the industry average
beta, what is the cost of equity? Does it matter if you use the beta for Dell or the beta for the
industry in this case?

4. You now need to calculate the cost of debt for Dell. Go to www.nasdbondinfo.com. enter Dell
as the company and find the yield to maturity for each of Dell's bonds. What is the weighted
average cost of debt for Dell using the book value weights and the market value weights? Does
it make a difference in this case if you use book value weights or market value weights?

5. You now have all the necessary information to calculate the weighted average cost of capital
for Dell. Calculate the weighted average cost of capital for Dell using book value weights and
market value weights assuming Dell has a 35 percent marginal tax rate. Which cost of capital
number is more relevant?

6. You used Dell as a representative company to estimate the cost of capital for GCI. What are
some of the potential problems with this approach in this situation? What improvements might
you suggest

INDUSTRY PROJECT:
Objective: the objective of this paper is to tie the relationship of Financial Accounting, Managerial Accounting and Financial Management. This is achieved by having the students us Financial Accounting information and do managerial analysis. The student is to pick a company of their choice and use one of the large web based financial companies such as YAHOOfinanace.com.

I work for an orthopaedic company called DePuy Orthopaedics, Inc. (a Johnson & Johnson owned company) out of Warsaw, Indiana. I would like this to use this company for this paper. You cannot use the company "Zimmer", as this company was used for an example paper the instructor provided. I will add (below the requirements) this sample paper for this requested paper to resemble.


REQUIRED SECTIONS OF PAPER:
1.TREND ANAYLSYS (minimum of 10 items): The student should complete a trend analysis utilizing the Income Statement, Balance Sheet and Cash Flow for the organization. A basic analysis of what trends are developed and why. Possible solutions can be acknowledged.
2.RATIO ANALYSIS (minimum of 10 items): The student needs to also obtain industry ratios for the industry that this company is in some finance companies will automatically calculate these for you. The student may calculate the ratios themselves if desired. A comparison to the industry needs to be done that includes ratio comparison and acknowledgements of key drivers to the business. When analyzing the ratios the student should be able to identify if the company is strong or weak and reasons for their conclusions. Suggested ratios to be analyzed: Current Ratio, Quick Ratio, Inventory Turnover, Days Sales Outstanding, Fixed Asset Turnover, Total Asset Turnover, Total Debt to Total Assets, Times Interest Earned, Profit Margin on sales, Basic Earning Power, Return on Assets, Return on Common Equity, and Stock Price to Earnings.
3.SWOT ANALYSIS (from a financial standpoint): In the SWOT analysis the student needs to, from a financial standpoint, identify the companies Strengths, Weaknesses, Opportunities and Threats. This analysis can be done utilizing analysts remarks and articles on the company. It is helpful if the student uses a company that either they know something about or that is doing something interesting such as acquisitions, bankruptcy and so forth.
4.OVERALL ASSESSMENT (1 paragraph): The student is to indentify if the company is either: excellent, average or poor condition financially and give their justifications.
5.RECOMMENDATIONS (minimum of 5): Discuss recommendations the student has for the company. Should the company become more conservative or less conservative. If the company has a large growth opportunity how is it best to obtain funds for this growth being utilizing existing cash flows, debt or additional equity financing. If the company should exit markets what should they do with the cash.

Minimum standards (deductions from the grade will result in failure to meet these):
1.Paper must be 10 pages (minimum) typed (double space) 12 pt.
2.Title page identifying student, class, company and a required proofreader.
3.The company financials and ratios used should be attached to the back of the paper.
4.A works cited/bibliography page.

Possible additional research websites: quicken.com, multexinvestor.com, etrade.com, moneycentral.msn.com, rmahq.org, yahoo.market.com, NYSE.com, Hoovers.com, Smartmoney.com, schwabnet.com, edgardata.finsys.com, buyandhold.com, and Morningstar.com.




EXAMPLE OF REQUESTED PAPER:


Enhancing the quality of life for patients worldwide

Company Overview
Zimmer Holdings, Inc. (Zimmer) is a global leader in the design, development, manufacture and marketing of reconstructive orthopaedic implants. This includes hip, knee, extremity, dental, spinal implants, and trauma products. These products restore function in joints that are diseased or have suffered trauma. The company also distributes orthopaedic surgical products (OSP). Some OSP products such as tourniquets are used in surgery while other products such as slings and braces aid in post-operation rehabilitation.
The company has operations in over 25 countries. They market products in over 100 countries throughout Americas, Europe, and Asia Pacific. Corporate headquarters are located in Warsaw, Indiana, with more than 100 manufacturing, distribution, and warehousing facilities worldwide. The company sells products direct to healthcare institutions, through independent distributors, and direct to dental practices.
Zimmer identified three corporate strategies that focus on the ability to ENABLE, to INNOVATE, and to GROW. Identified trends below will tie back to the companys strategic initiatives and strategy.
Trend Analysis
Income Statement
Zimmer reported net sales of $3.9 billion in 2007. This represents a 12% increase in reported sales of $3.5 billion in 2006 and an 18.6% increase over reported sales of $3.3 billion in 2005. The company continues to do well by increasing sales every year. This substantial growth is attributed to several factors. The percent of sales generated from new products continuously increases, demonstrating the companys committed investment towards innovation and strategic initiative to innovate. New products generated 21 % of sales in 2005, 24% in 2006, and increased to 25% in 2007. New products representing growth include Gender Solutions Knee Femoral implants, Gender Solutions M/L Taper with Kinectiv Technology, Trabecular Metal Acetabular Cups, Dynesys Dynamic Stabilization System, and PALACOS Bone Cement.
The company has grown sales in all regions. In 2007, sales in Americas grew 10%; Europe grew 16%; and Asia Pacific grew 12%. Sales growth was evident in all product segments. The extremity product sales increased 34% and dental sales increased 23%, representing the growth leaders for the company. The Bigliani/Flatow Complete Shoulder Solution and Coonrad/Moorey Total Elbow led extremity sales. The Tapered Screw-Vent Implant System led dental sales. All other segments reported growth including 12% in knees, 11% in spine, 9% in hips, 8% in OSP and 6% in trauma. Existing products representing growth include the NexGen LPS and CR Flex Knee, NexGen Rotating Hinge Knee, NexGen LCCK Revision, Trabecular Metal Primary Hips, and Zimmer Periarticular Locking Plates.
The knee and hip business represent the largest amount of sales. The knee products generate 42% of the companys sales and continue to hold the number one market position at 28% of the $5.8 billion dollar market. Hip sales generate 33% of Zimmers sales and also hold the number one market position. The company holds 26% market share of the $5.0 billion dollar market. Other product segments generate 3% to 6% of the business and hold 3% to 22% of the global market share.
Cost of revenue for the company increased at 18.4% from $739 million in 2005 to $875 million in 2007. Cost of revenue increased just slightly lower than the increase of total revenue at .2%. As total revenue increases, the cost of revenue will also increase. A major factor of this increase is due to the large amount of new products being introduced. The company has a strategy to innovate, and the cost of revenue will continue to increase as new products are being produced.
Research and development increased 19.4% from $175 million in 2005 to $209 million in 2007. The company continues to increase spending and invest in research and development in all product segments based on the corporate strategy to innovate. Investments were made in 2007 to research and development facilities in Warsaw, Indiana. The company continues to research genetically engineered tissues such as soft tissue biological repair and replacement. Research is being conducted on cartilage regeneration and cell-based therapies. Zimmer collaborated with ISTO Technologies and announced that clinical trials began in 2007 for DeNovo ET Engineered Tissue Graft. Additional research is also being conducted on advanced metals.
The company alsosigned an agreement with Regeneration Technologies, Inc. (RTI) in 2007 to distribute a new allograft bone paste in flowable and moldable formations. Approval was received by the FDA in 2007 on the Zimmer NexGen LPS-Flex Mobile Bearing Knee and the Zimmer M/L Taper Prosthesis with Kinectiv Technology. The company will continue to invest heavily in research and development in order to keep new, innovative products in the pipeline and continue to remain competitive and a leader in the orthopaedic market.
Selling and general administrative costs increased 18.2% from $1.2 billion in 2005 to $1.4 billion in 2007. This is expected to increase as revenues increase. Revenues increased 18.6% indicating that selling and general administrative increased slightly below that at 18.2%. The company has a corporate strategy to enable. They have increased and innovated training and education through the Institute, which has increased costs. The company has also launched an extensive Direct-to-Patient campaign focusing on the Gender Solutions Knee and Back in the Grove Community Healthcare Program aimed at providing consumers joint replacement information. Zimmer has invested in the enhancement of the companys quality systems, information technology efficiency, and expanded their compliance program.
The companys interest expense decreased substantially from $14 million in 2005 to zero in 2006 and 2007. Zimmer had zero interest expense for two years, making this a strength of the company.
Net income increased 5.5% from $727 million in 2005 to $773 million in 2007. Zimmer continues to increase net income. Factors affecting the increase include higher operating profit, lower acquisition expenses, and decreased interest expense.
Balance Sheet
Cash and cash equivalents increased 90.1% from $245 million in 2005 to $466 million in 2007. The largest increase came in 2007 with $466 million compared to $268 million in 2006. This would indicate the company could possibly be preparing to buy another company for cash. The companys strategy is to grow and would be successful in growing by buying another company to complete their portfolio. The company could also be preparing to buy additional manufacturing space or another facility.
Net receivables increased 22.3% from 583 million in 2005 to $829 million in 2007. This is consistent with the increase in revenues. As revenues increase, net receivables will also increase.
Inventory grew 24.6% from $583 million in 2005 to $727 million in 2007. This is due to several factors. Zimmer retains ownership to the majority of products sold while consigning to healthcare institutions and distributors. The company implemented an initiative in 2007 to increase U.S. field consigned inventories to better position the distributors to quickly react to local demands from doctors and hospitals. Investments were also made to facilities which enable the production of additional inventory to reduce backorders.
Property, plant, and equipment also increased at 36.9% from $708 million in 2005 to $971 million in 2007. One of the companys strategic initiatives is to grow. Zimmer invested heavily in facilities around the world. Manufacturing and distribution facilities in Warsaw were expanded in 2007 as part of a $66 million dollar project. The expansion added 100,000 square feet to the distribution center and 120,000 square feet to the manufacturing facility. In 2007, a Global Enterprise Resource Planning project kicked off to implement a single, global ERP system to set global operational and data standards. Investments to property, plant, and equipment are considered a strength of the company and positions the company for growth.
The company purchased Centerpulse in 2003 resulting in an increase in goodwill. Goodwill increased 7.9% from $2.4 billion in 2005 to $2.6 in 2007. Acquiring Centerpulse was important for Zimmer to gain sales and market share. Zimmer paid top dollar for the company while competing with extremely high offers from other orthopaedic companies. In 2007, the company acquired Endius Inc., a spinal company, for $80 million. They also acquired ORTHOsoft, Inc., a computer navigation company, for $50 million. These acquisitions attribute to increased goodwill. The company did have a reduction in goodwill of $61.4 million due to a decrease in tax liability under FIN 48.
Accounts payable rose 18.4% from $413 million in 2005 to $489 million in 2007. This is consistent with the increase in revenues, cost of revenues, and increase in selling expenses. Long term debt decreased 45% from $231 million in 2005 to $104 million in 2007. This is a strength for the company as it continues to pay off debt.
Retained earnings increased 82.8% from $1.9 billion in 2005 to $3.5 billion in 2007. This includes a reduction in retained earnings of $4.8 million due to the decreased tax liability under FIN 48.
Cash Flow
Total cash flow from operating activities increased 23.4% from $878 million in 2005 to $1 billion in 2007. The principal source of cash was net earnings of $773 million. This is a 5.5% increase over net earnings of $732 million in 2005. However, 2007 net earnings reflected a decrease of 7.4% from 2006 earnings of $834 million. This is due to reduction in earnings of $169.5 million paid in a settlement to the Department of Justice. The company used $53.3 million of cash towards investments to support sales growth. Accrued but unpaid dollars to healthcare professionals under contracts amounted to $23 million in 2007.
Total cash flow from operating activities increased 57.9% from $311 million in 2005 to $491 million in 2007. Contributing factors for this increase were the acquisitions of Endius and ORTHOsoft at $160.3 million. The company also invested in additional instruments ($138.5 million) and information technology that contributed to a small increase. Investments were also made to property, plant, and equipment through expansion of facilities in Warsaw, Indiana, Puerto Rico, and Switzerland.
Cash flows from financing activities decreased 17.6% to $399 million in 2007 from $484 million in 2005. The repurchase of common stock affected this in 2006 and 2007. Change in cash and cash equivalents increased an incredible 152% from $78 million in 2005 to $198 million in 2007. Zimmer is in a strong financial position for investment to carry the company forward. The companys corporate fact sheet states, Our strong cash flow generation positions us to return value to stockholders through strategic acquisitions, investments in our business, and share repurchases.
Ratio Analysis
Zimmer is a financially successful company as proven by their above average industry ratios. They lead and surpass the industry in nearly every ratio. The P/E Ratio (price per share/earnings per share) for Zimmer is 16.51 compared to the industry ratio of 4.17. The expectation for future earnings and the value of this company is good. The quick ratio is 1.74 for the company versus the industry ratio of 1.58. The quick ratio measures the current assets, less inventory, divided by current liabilities. A quick ratio of one or higher is favorable. Zimmer is way ahead of the industry and the S&P of 1.03. This is a big strength of the company and puts them in a great financial position. The current ratio measures the current assets divided by the current liabilities. The companys current ratio of 2.73 is also higher than the industry ratio of 2.07 and the S&P ratio of 1.27. This demonstrates the companys ability to meet current obligations. Total debt to equity is 5.98 versus the industry debt to equity of 23.15. This is due to Zimmers low debt (long term debt decreased 45%) and increased assets of 15.9%. Zimmer is doing much better than their competitors in managing debt and has tremendous financial strength. This puts the company in a stable position should there be a downturn in the economy.
The majority of all profitability ratios exceed the S&P but more importantly exceed the industry. Gross margin (rato of companys operating revenue to sales) of 76.43 substantially exceeds the industry of 8.52 and S&P of 37.05. This demonstrates very efficient operations of the company. Operating revenue (sales revenue minus cost of goods sold) of 27.16 also exceeds the industry of 2.66. Net profit margin (ratio of net profits to sales) of 18.84 versus the industry of 1.94 and S&P of 11.25 proves the company is efficient and profitable as the higher net margin ratio, the better.
Zimmers efficiency ratios are performing above the industry, proving the company provides a good return to their investors. Return on assets (net income divided by total assets) for the company is 14.07 compared to the return on assets of 1.58 for the competition and 8.14 for the S&P. This demonstrates the companys ability to use their assets to generate earnings. The return on investment ratio of 13.13 is higher than the industry of 2.20 and S&P of 11.15. Return on equity (12 months net income divided by common stock equity) of 14.36 is well above the industry of 3.11 but slightly below the S&P of 20.37. This important ratio measures how well a company performs for its shareholders. Zimmer performs well within the industry but slightly below other companies outside the industry.
The revenue per employee ratio is calculated by taking the revenues divided by the total employees to show the labor intensity of the company. Zimmers revenue per employee is 541,500 compared to the industry of 340,163 and S&P of 862,606. This suggests that the competition expects more of their employees than Zimmer does, making this a strength of the company. Inventory turnover ratio (cost of 12 month sales divided by average inventory) is 1.31 versus the industry ratio of 0.52 and S&P of 9.39. The higher the number, the better the company is moving inventory. Zimmer moves their inventory better than the competition. Companies outside the industry move their inventory better. Orthopaedic companies normally must take an entire set of implants (along with several different types of sets) into surgery. The doctor will chose the appropriate size needed and only use (buy) that particular size and type.
SWOT Analysis
Strengths
Total Revenue increased by 18.6%
Gross Profit increased by 18.6%
Operating Income increased by 6.8%
Interest Expense decreased 100%
Net Income increased by 5.5%
Cash and Cash Equivalents increased by 90.1%
Inventory increased by 24.6%
Net Receivables increased by 22.3%
Property, Plant, and Equipment increased by 36.9%
Total Assets increased by 15.9%
Long Term Debt decreased by 45%
Retained Earnings increased by 82.8%
Total Stockholder Equity increased by 16.3%
Cash and Cash Equivalents increased 152%
P/E Ratio 395% higher than industry
Current Ratio 31.8% higher than industry
Total Debt to Equity 74.2% lower than industry
Gross Margin 897% higher than industry
Operating Margin 1021% higher than industry
Net Profit Margin 1023% higher than industry
Return on Assets 890% higher than industry
Return on Investment 596% higher than industry
Return on Equity 461% higher than industry
Weaknesses
Total Cost of Revenue increased by 18%
Selling General and Administrative increased by 18.2%
Total Liabilities increased by 13.9%
P/E Ratio 61.9% lower than S&P
Return on Equity 70.5% lower than S&P
Receivable Turnover 50.2% lower than S&P
Opportunities
Increasing global obesity will raise global market
More active lifestyles will increase number of procedures
Longer life expectancy will increase number of procedures
Desire for less invasive approaches will increase MIS procedures
Younger patients undergoing joint replacements
Increasing demand for Gender specific implants; Zimmer first to the market
Significant new products scheduled for release in 2008
Shift in demand to premium products
Acquisition of Endius, Inc. which will increase spinal sales and market share
Acquisition of ORTHOsoft, Inc. to bring innovative tools to marketplace
Announcement to additionally invest in spine and dental products
Plans to develop additional manufacturing facility in Ireland
Threats
Increased compliance requirements will create roadblocks
Stricter governmental policy/reimbursement practices will make business difficult
Increased pressure from competition; potential loss of sales
Business highly dependent on distributors to sell
Business highly dependent on receiving raw materials from suppliers
Adoption of hip resurfacing will threaten hip sales growth



Overall Assessment
Zimmer is a financially strong company that is well ahead of the industry. Revenues continue to increase annually. Significant investments continue to be made in Research and Development ensuring the company will always be working towards improving processes and bringing innovative products to the market, keeping them ahead of the competition. The company has little debt and spends cash towards the investment of additional companies to gain market share and expand their product portfolio.
The companys 2007 annual report sums it up well and states, Solid financial results and market changing product innovations demonstrate that our deep-seated commitment to enhancing patients lives also represents sound strategy and the foundation for continuing progress.
Recommendations
Cost of revenue for Zimmer increased 5.5% from 2005 to 2006 and 12.2% from 2006 to 2007. Any decreases in the cost of revenue would increase profits. Improvements to scrap rates on certain products would improve costs. Other processes could be improved to speed up production time on products that are difficult to make. A clear understanding of product demand would ensure the production of correct quantities, which would also decrease costs.
Selling and general administrative costs could also be reduced. While it is a strength to attract employees to the company with a Revenue/Employee ratio higher than the industry, it could also mean that Zimmer has a more relaxed environment resulting in additional costs.
Another recommendation would be to reduce liabilities. Total liabilities increased 13.9% with a significant increase in accounts payable of 23.3%. Considering the long term debt decreased 45%, total liabilities should have also decreased. The company should also continue to reduce long term debt as they have in the past.
While the P/E ratio for Zimmer is well above the industry, it is 61.9% below the S&P. The value of the company is good, but may not be as good as other companies in other industries. Any improvements the company could make to the P/E ratio would attract additional investors from different industries. This is also true with the companys return on equity. While it is a strength within the industry, it is a weakness compared to companies outside the industry. Any improvement could attract additional investors from outside the industry. The company could improve this by increasing revenues, reducing cost of revenue or operating expenses, which increases net income.
Zimmers inventory increased by 24.6%. On one hand, that is a strength of the company as they increase manufacturing capacity to make sure the right products are on the shelf when needed to minimize backorder. On the other hand, it represents a weakness as the amount of inventory has significantly increased.
My final recommendation would be to continue to invest in and research genetically engineered tissues, cartilage regeneration, computer assisted surgery, and minimally invasive surgeries. These technologies are the wave of the future and position the company to service the surgeon and patient of the future.

Works Cited
Beginners Guide to Financial Statements. U.S. Securities and Exchange Commission. 5 Feb. 2007. 21 Nov. 2008 .
Corporate Fact Sheet. Zimmer. 2008. Zimmer, Incorporated. 3 Nov. 2008 .
Form 10-K for ZIMMER HOLDINGS IC. Yahoo! Finance. 2008. 31 Oct. 2008 .
Ratios. Reuters. 2008. 22 Oct. 2008 .
2007 Annual Report. Zimmer. 2008. Zimmer, Incorporated. 3 Nov. 2008 .
Understanding Financial Ratios. Money-Zine. 2007. 21 Nov. 2008 .
Zimmer Holdings, Inc. Yahoo! Finance. 2008. 22 Oct. 2008 .

Module 4 - Case
Managerial Accounting - Variable Costing
Managerial accounting emphasizes short-term profit analysis, so the income statement is very important. Consequently, we?ll examine and discuss income statements in this first case. The assignment for this module is divided into two parts:
Part I:
Use the background material and Internet to answer the questions below.
Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to:
? How is managerial accounting different from financial accounting?
? Comment on the different needs and use of financial information for internal purposes.
? The managerial accounting profession and its role in today?s business environment. How has it changed over time?
? Comment on the Certified Management Accountant (CMA) designation. How is it different from the CPA certification?
Part II:
? Explain the main differences between the absorption and contribution (behavioral, variable) income statements. Will net income always be the same under the two approaches? If not, explain the difference.
? Comment specifically on why companies feel the need to create yet another income statement in a different format. What information can the company gleam from this approach which is helpful as a tool in the decision making process.
? Explain situations in which break-even analysis can be a useful tool. Explain the break-even formula and provide a specific example using numbers for a product with which you are familiar. Reasonable estimates are adequate. Don't forget to include the source of the information.
Expectations:
It is important to answer the questions as posed. The discussion should be five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.
BACKGROUND MATERIAL
Absorption Income versus Variable Costing (Contribution Margin)
It is hard enough to learn one method of preparing an income statement. Nevertheless, managerial accountants often find that the traditional income statement (absorption income or income statement prepared in accordance with US GAAP) does not meet their needs. Internally, the organization needs an income statement that is helpful in analyzing individual products and services or groups of products and services. This information is then used in the decision making process.
There is no one format required for an internal income statement other than it should be useful to an organization. Some variation of a behavioral income statement is often favored since it is useful for planning. In this type of income statement, costs are categorized according to behavior (variable and fixed) rather than by function (cost of goods sold and operating expenses). Preparing a behavioral income statement is commonly referred to as using a variable costing or contribution margin approach. Variable costing is not just a formal approach to preparing an income statement, but a way of thinking. It is useful for coming up with estimates in ?what-if? scenarios.
There are two essential differences between absorption income and variable costing.
First, there is major difference in the way costs are organized. In the absorption income statement, costs are organized by function - product costs versus operating costs. In the variable costing income statement, costs are organized by behavior - variable costs versus fixed costs.
Second, the traditional statement uses cost of goods sold as the intermediate step while the variable costing approach statement uses contribution margin as the intermediate step.

The essential points in this module are:
? Costs organized by cost behavior can be quite useful to decision making than costs organized by function.
? Contribution Margin is a very relevant point of information. It tells the user of the statement the net benefit to the organization that is the result of the activity. That is, we will incur the fixed costs in any event. The variable costs are incurred only as the activity level increases. Thus, the contribution margin (the difference between revenue and variable costs) is a measure of the benefit of that activity.
? Net income will be the same under both approaches only when there is no change in beginning or ending inventory (assuming constant prices).
Costs organized by function (absorption income)
? Cost of goods sold (product costs or expenses)
? Selling and administrative expenses (operating costs or expenses)
Costs organized by behavior (variable costing)
? Total variable costs change in direct proportion to changes in activity.
? Total fixed costs remain unchanged within a specified activity range.
Cost-Volume Profit Analysis
Cost-volume-profit (CVP) analysis is possible when information about cost behavior is available. It helps managers understand the interrelationships among cost, volume, and profit by focusing their attention on the interactions among the prices of products, volume of activity, per unit variable costs, total fixed costs, and mix of products sold. It is a vital tool used in many business decisions such as deciding what products to manufacture or sell, what pricing policy to follow, what marketing strategy to employ, and what type of productive facilities to acquire.
Required material
Martin, J.R. (n.d.) Management Accounting: Concepts, Techniques, and Controversial Issues - Chapter 1: Introduction.Management And Accounting Web Home Page. Retrieved from http://maaw.info/Chapter1.htm
Introduction to Managerial Accounting (2007, July 25) [Video File]. Retrieved from http://www.youtube.com/watch?v=pBCRmjnwWgo
Read one of the following:
Walter, L.M. (2011). Principles of Accounting: A Complete Online Text, chapter 23 (the section titled Variable costing versus absorption costing) and chapter 18. Retrieved from http://www.principlesofaccounting.com/
or
Hermanson, R.H., Edwards, J.D., & Invacevich, S.D. (2011). Accounting Principles: A Business Perspective. First Global Text Edition, Volume 2 Managerial Accounting, 73-87. http://textbookequity.com/oct/Textbooks/TBQ_PA_Accounting_managerial.pdf

Item Final Project



In your final project, describe and answer in economic terms a managerial decision you have knowledge about (for example one that has to be made at your place of employment). Some examples of decisions are:

Should I start a new business?

Note that each of the questions above can be answered in a single sentence. The answer has implications that should influence future actions. In other words, the answer is meaningful and useful. In your answer, use economic language in a manner that demonstrates your understanding of the concepts of this course. This means use economic language correctly, but also briefly explain the economic terms and concepts. (Don't write for experts in business and economics).



Your paper should have the following major sections with appropriate section title.

1. Executive Summary - The very first sentence of the very first paragraph of the paper and this section should give the answer to the question, don't make your reader hunt for it. Explain why this answer is meaningful or useful.

2. Definition - This section defines the managerial question to be analyzed. It also identifies the possible opportunities and alternatives being evaluated.

3. Factors or Costs - This section describes and identifies factors or costs that will influence the analysis of the questions. This section also includes factors and costs that may seem important (and are important for other questions) and explain why they are not important to this question. For this course, you may limit yourself to the ten most important factors or costs (you should have at least this many). At least three of them should be implicit and at least another three should be explicit. Also at least two should not be important to this question and at least six should be important to answering this question. This section is to demonstrate your understanding of what makes a cost or factor relevant to economic reasoning.

4. Measurement - This section states how the factors or costs from the previous section are to be measured and the values you plan to use in your analysis (or range of values). In this section you may state the reliability of the number. For example, I don't expect you to include every possible value of a factor, you may make assumptions. If you make an assumption about a number how likely is it to change, and/or how comfortable are you with the stability of the number. For this paper, feel free to make many assumptions about the value in this section. The goal of this paper is to demonstrate your ability to apply economic reasoning and not get the correct answer (or politically correct answer). If you apply good reasoning, your answer may be wrong because of a poor assumption. For this course that is acceptable. With experience, your ability to make good assumptions will improve.

5. Analysis - In this section you use the measurement from the above and apply good economic reasoning and solve the problem. Explain what method you?re going to apply and why this method is appropriate (This is to demonstrate that you understand the economic concepts).

6. Summary - This section states your observations about the process. You have an answer, based upon the reliability of the measurement of the factors or costs how likely is that answer to change. You may want to identify some (not more that three) assumptions that if their value were different would give a different answer. For example, buying a house versus renting may the choice when interest rates are 5%, but if they go to 20%, renting may be the better choice.

7. Learning - This section should feel like a repeat of what was written in other sections and would not be normally part of a business report. Its primary purpose is to give you another opportunity to demonstrate your understanding of managerial economics. In this section, you should (a) identify the main economic issues in your project, (b) new learning that has occurred as a result of your readings, (c) class activities or incidents that facilitated learning and understanding, and (d) specific current and/or future applications and relevance to the workplace. The emphasis of the final paper should be on application of economic theory to a practical (hopefully simple) problem.



Writing the Final Summary Paper

The Final Summary Paper:

Must be eight double-spaced pages in length and formatted according to APA style as outlined in your approved style guide.

Must include a cover page that includes:

Student's name

Course name and number

Name of paper

Instructor's name

Date submitted

Must include an introductory paragraph with a clearly defined research question (qualitative study) or hypothesis (quantitative study).

Must include all sections of the required report outline.

Must include a Conclusions and Recommendations section that includes recommendations for changes that make a direct improvement on the teaching and learning environment.

Must use APA style as outlined in your approved style guide to document all sources.

Must include a Reference List that is completed according to APA style as outlined in your approved style guide.

May include any appendices that serve to support the report narrative.





Paper Grading Criteria

A range:

The report is clear, engaging, original, and focused; ideas and content are richly developed with details and examples. Organization and form enhance the central idea and theme; ideas are presented coherently to move the reader through the text. The voice of the writer is compelling and conveys the writer?s meaning through effective sentence structure and precise word choices. The writer successfully moves the report through academic constructs and experiential documentation to critical analysis. The report demonstrates a clear balance of these three components.
There are faxes for this order.

This is a postgraduate management module and therefore the emphasis is on issues as they affect managerial decision-making rather than technical accounting matters. The assignment should be related to company Aviva PLC?s Annual Report and Accounts 2009. This is available at:
http://www.aviva.com/library/reports/2009ar/downloads/aviva-report-2009.pdf

However evidence of wider reading and the use of other module materials will be taken into account in the final mark awarded.

The report is meant to be used as a focus or framework for analysing issues in the assignment. It does not cover some aspects in detail. For the purposes of the assignment, reasonable assumptions may be made (and these assumptions should be made clear).

You are advised that this is potentially a very large project but there is a limit of 3,000 words. You should therefore concentrate on important issues, though there is flexibility regarding the areas you wish to analyse.

The Assignment

You have been retained as an expert consultant in multinational financial management by Aviva. You are asked to take a fresh view and report on likely changes that might affect the company over the next five to ten years and their implications for the international financial management of the company.

In practice you might be asked to report on all of these, but for the purposes of this assignment you are asked to concentrate on TWO of them:

1. Financial Risk Management.

2. Multinational Working Capital Management.

3. Financing Foreign Operations.

4. Foreign Investment Analysis.

5. The Measurement and Management of Political Risk.
http://www.aviva.com/library/reports/2009ar/downloads/aviva-report-2009.pdf
www.aviva.com

The book that I use for this course is CORPORATE FINANCE written by BREALEY,MAYERS,MARCUS.published from Mc Graw Hill. You can make a topic whatever you want including bottom option.


Part I Breadth:
In this section of the paper, you should briefly explain the basic topics in the desired section of the course. This section is simply an explanation of all the topics (chapters) covered on the exam. This section should be approximately 5 pages in length double-spaced.

Part II Depth:
This section of the paper builds on the basic topics defined and explained in part I. In this section, you should take two or three topics from part I and locate professional or scholarly articles that show application and inter-relationship between the topics you are expanding on. From the articles, you should be able to provide a clear understanding of the inter-relationship and dependency between the topics.This section should be approximately 5 pages.


Part III Application:
This section of the paper requires you to take the conclusion illustrated in part II and illustrate how it is used in professional practice. This is achieved by locating a specific company or opportunity within your major, providing a brief background/analysis on the company/opportunity and providing evidence/support that show how the interrelationship in part II applies to the company. This section should be approximately 5 pages.