## Managerial Functions

1.From a management perspective, do you think Target made any mistakes?  Justify your answer.

2.Which of the four principal managerial functions were exhibited by CEO Greg Steinhafel and describe the seven managerial challenges Target is facing.  Discuss how Target is handling these challenges.

3.What is your evaluation of Steinhafel’s ability to effectively execute the three key managerial roles – interpersonal, information, and decisional?

4.If you were a consultant to Target, what advice would you give to senior management about handling a crisis like this?

## Capital Finance

Division  Asset Beta Next Period’s Expected Expected Growth Rate Free Cash Flow (\$mm)

Oil Exploration  1.4  450  4.0%

Oil Refining  1.1  525  2.5%

Gas & Convenience Stores  0.8  600  3.0%

The risk-free rate of interest is 3% and the market risk premium is 5%.
Which is the cost of capital for the oil refining division closest to?
A) 6.5%
B) 7.0%
C) 8.5%
D) 10.0%

Cost of Capital = Risk Free Return + Beta x Market Risk Premium

Cost of Capital = 3% + 1.1 x 5% = 8.5%

Number 2 question
You expect CCM Corporation to generate the following free cash flows over the next 5 years.
Year   1 2 3 4 5

FCF (\$ millions)   25 28 32 37 40

If CCM has \$150 million of debt and 12 million shares of stock outstanding, then which is the share price for CCM closest to?
A) \$49.50
B) \$11.25
C) \$20.50
D) \$22.75

Value at end of Year 5 = (40*1.05)/(.13-.05) =525

Value of Firm Today = 25/(1.13) + 28/(1.13^2) + 32/(1.13^3) + 37/(1.13^4) + (40+525)/(1.13^5) = 395.58

Value of Equity = 395.58-150 = 245.58

Value per Share = (245.58/12) = 20.47 or 20.5

Note: For this question we need required return and growth rate. From my previous experience it is 13% and 5%. If your figures are different please let me know.

Number 3 question
Which is the variance of the returns on the Index from 2000 to 2009 closest to?

Year End

Index Realized Return

(R-R)

(R-R)^2

2000

23.60%

14.78%

0.0218448

2001

24.70%

15.88%

0.0252174

2002

30.50%

21.68%

0.0470022

2003

9.00%

0.18%

0.0000032

2004

-2.00%

-10.82%

0.0117072

2005

-17.30%

-26.12%

0.0682254

2006

-24.30%

-33.12%

0.1096934

2007

32.20%

23.38%

0.0546624

2008

4.40%

-4.42%

0.0019536

2009

7.40%

-1.42%

0.0002016

Sum

0.3405116

Variance = (.3405116/(10-1)) = .0378345

A) 0.0450
B) 0.3400
C) 0.1935
D) 0.0375

(TCO A) Which of the following statements is false? (Points : 5)
The WACC can be used throughout the firm as the company-wide cost of capital for new investments that are of comparable risk to the rest of the firm and that will not alter the firm’s debt-equity ratio.
A disadvantage of the WACC method is that you need to know how the firm’s leverage policy is implemented to make the capital budgeting decision.
The intuition for the WACC method is that the firm’s weighted average cost of capital represents the average return the firm must pay to its investors (both debt and equity holders) on an after-tax basis.
To be profitable, a project should generate an expected return of at least the firm’s weighted average cost of capital.
number 2…
. (TCO F) Which of the following statements is correct? (Points : 5)
One advantage of the NPV over the IRR is that NPV takes account of cash flows over a project’s full life, whereas IRR does not.
One advantage of the NPV over the IRR is that NPV assumes that cash flows will be reinvested at the WACC, whereas IRR assumes that cash flows are reinvested at the IRR. The NPV assumption is generally more appropriate.
One advantage of the NPV over the MIRR method is that NPV takes account of cash flows over a project’s full life, whereas MIRR does not.
One advantage of the NPV over the MIRR method is that NPV discounts cash flows, whereas the MIRR is based on undiscounted cash flows.
Because cash flows under the IRR and MIRR are both discounted at the same rate (the WACC), these two methods always rank mutually exclusive projects in the same order.

## Global Environment Threats

Threats to the Global Environment

Congratulations! The United Nations has hired you as a consultant on global issues.

Many of the UN members are not satisfied with the progress of the Millennium Development Goals. They believe that the goals focus on the wrong issues. There is a disconnect between the types of issues the developed countries in the UN believe are priorities versus the issues that developing countries of the UN want to prioritize. For example, the country of Burundi has requested that one of the goals be focused on food security. However, Austria is adamant that the major current global issue is to mediate ceasefires within countries experiencing a civil war.

You have been asked to provide an unbiased perspective and identify the four issues that have the biggest impact on the global environment.

Of the eight major threats listed below, choose the four that you consider the most critical.

Energy sources

Civil war

Globalization

Poor health of entire populations

Lack of educational opportunities

Cultural taboos

Inappropriate uses of technology

Climate change

You will present your findings at the next UN General Assembly. Your goal is to provide a brief history of each issue, the number of countries affected, and the effects of this threat on the world population.

The completed version of this assignment will include the following:

• A PowerPoint presentation containing relevant information for the UN General Assembly on four of the eight threats listed above.
• The order of your slides should reflect the order of priority you assign to the four threats you have chosen.
• Create a minimum of four slides per threat (for a minimum 16 slides total) on the following topics:
• A brief history of the threat
• The number of countries affected, and how they are affected (giving examples)
• The effects of this threat on the world population as a whole
• Include a chart or graph (see #4 below).
• Each of the four slides will include:
• A paragraph in the notes section to explain how the details you have provided in the slide is pertinent to the UN’s discussion on selecting and prioritizing goals.
• For each of the four threats, include one visual (graph or chart) to represent the data you have collected. The visual should be incorporated into the information/topics presented in the slides.
• Cite at least five credible sources excluding Wikipedia, dictionaries, and encyclopedias.

For information on how to complete the required assignment deliverables in PowerPoint, please refer to your Lynda.com account or reach out to your instructor ahead of time.

The specific course learning outcome associated with this assignment is:

• Examine the factors that account for why the growth in the world’s population can negatively affect the global society.

Grading for this assignment will be based on answer quality, logic/organization of the presentation, and language and writing skills, using the following rubric:

## SWOT Analysis

SWOT analysis + 4 P’s of your + porter’s five forces model

From the real national/international market, select any publicly listed company (listed in the Stock market). Critically analyze the chosen company based on the following questions.

1.Conduct a SWOT analysis for your chosen company based on your research.

2.Examine the 4 P’s of your chosen company based on the information given.

3.Use the porter’s five forces model to critically analyze the competitive structure of the organization.

• You are supposed to choose a publicly listed company from the Stock Market.
• You should use references (company website, financial databases, etc…)

NB

• Justify your answers with the help of course materials, Text Book, Online resources
• Answer should be in not less than 750 words. All students are encouraged to use their own words.
• Referencing is necessary and student must apply APA Referencing Style.
• A mark of zero will be given for any submission that includes copying from other resource without referencing it.
• A mark of zero will be given for any submission with plagiarism

Please let me know the company you have chosen before starting the solution, to give approval