Mitigation/Capital Budgeting and Dividend Policy
Order ID: 89JHGSJE83839 Style: APA/MLA/Harvard/Chicago Pages: 5-10 Instructions:
Mitigation/Capital Budgeting and Dividend Policy
Three-part assignment: All parts must be at least 200 words unless otherwise noted. Please read all attachments and follow ALL instructions.
Part 1: Factors in Capital Budget Decisions
Imagine you are a representative of management in the company you have selected (Apple) for your Week 6 Assignment and you must make a capital budgeting decision. The decision is to implement a new computer network system to decrease the time between customer order and delivery. The cost will be 10% of last years profits. You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following:
A description of the important factors, in addition to quantitative factors, that were considered when making this capital budgeting decision.
An explanation of how these factors are significant to the company.
A summary of how you will determine the criteria to rank capital budgeting decisions and whether some criteria are more important than others.
A calculation of the proposed return on investment based on criteria you select and justification for that ROI.Develop a 200 word explanation supporting your recommendations.
Tip: For help with reading an annual report access this handy guide from Money Chimp (http://www.moneychimp.com/articles/financials/fundamentals.htm)
Part 2: Risk Identification and Mitigation
Revisit the company (Apple) you chose for your Week 6 Final Project. Using the annual report and other sources such as a 10k or 10qs, discuss the dividend policy of your company.
Answer the following questions as part of your response:
How would you describe your chosen companys dividend policy?
Why do you believe this company chose the dividend policy they have in place?
Do you agree or disagree that they have selected the best dividend policy for the company?
How might this dividend policy function in both perfect and imperfect capital markets?
Calculate the dividend rate over the past 5 years. Define why you believe that it has or has not changed over the last 5 years.Support your position with evidence from the text or external sources.
Your post should be 200-words in length.Part 3: Capital Budgeting and Dividend Policy
We examined two very important topics in finance this week; Capital Budgeting and Dividend Policy.
Critically reflect on the importance of selecting the right projects in which to invest capital. Do we always select those projects that have the highest return on investment? What other factors play into capital budgeting decisions?
We also looked at dividend policy. What incentive is there for a company to pay dividends? What signals does dividend policy provide to investors?
Required Resources
Text
Byrd, J., Hickman, K., & McPherson, M. (2013). Managerial finance [Electronic version]. Retrieved from https://content.ashford.edu/
· Chapter 9: Capital Structure
· Chapter 10: Dividend Policy
Recommended Resources
Articles
Mergent. (n.d.). Mergent Online Quick Tips . Mergent Online. Retrieved from Online Ashford Library.
Mergent Database for Company and Industry Research.
To access go to the Ashford Library and select Find Articles and More in the top menu panel. Next, select Databases A-Z and go to section M for Mergent.
Modigliani & Merton (1958). The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economic Review, 261 297. Retrieved from ProQuest database.
Website
Moneychimp . http://www.moneychimp.com/articles/financials/fundamentals.htm
Mitigation/Capital Budgeting and Dividend Policy
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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Mitigation/Capital Budgeting and Dividend Policy