FIN3403 Corporate Finance

COURSE PROJECT

An important component of this course is providing you with a challenge to learn about (researching) and develop a solution to a problem that has not been covered in class. This is what happens every day in the real world. New problems pop up and the manager has to get as much information as possible about the problem (research) and then develop a solution to the problem- usually in a short period of time.

Because there is a lot of material to be covered in this class and we had to spend the first two weeks refreshing our knowledge of basic accounting, we will combine the course project with an important textbook chapter that we did not have time to cover in class.

Chapter 16 - Short term Financial Planning

After you have reviewed Chapter 16, go to the Chapter Review and Self-Test Problem16.2 at the end of Chapter 16 - I have attached a pdf copy of the problem so all students will be starting from the same data base regardless of the textbook edition they are using. This problem considers the short term cash position of the Masson Company.

Carefully work through the analysis of the company's short term financial situation. You will see that the company will be in a negative cash situation three quarters from now.

As an adviser to the company you are asked to make recommendations to management on what they actions they could take to avoid the coming financial crisis.

Your paper should:

a.List the options open to the company.

b.State your recommendations

c.Explain clearly why you are making each recommendation and,

d.Present a revised cash budget showing what it the company's cash outlook will be as a result of your recommendations.

All submissions must be in proper APA format. The paper will be submitted via the link directly below these instructions. Clicking on the below will take you to the upload page. The paper will be checked for plagiarism before grading.

16.2 Cash Balance for Masson Corporation. The Masson Corporation has a 60-day average collection period and wishes to maintain a $5 million minimum cash balance. Based on this and the information below, complete the following cash budget. What conclusions do you draw