Read the Chapter 15 Mini Case on page 626 inFinancial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions a and b.

Using the mini case information, write a 250-500 word recommendation of the financial decisions you propose for this company based on an analysis of its capital structure and capital budgeting techniques.

APA format is not required, but solid academic writing is expected.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

The purpose of this assignment is to explain core concepts related to cash distributions and capital structure.

Read the Chapter 14 Mini Case on page 586 inFinancial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions a and b.

APA format is not required, but solid academic writing is expected.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

Read the Chapter 20 Mini Case on pages 824-825 inFinancial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions a and b.

APA format is not required, but solid academic writing is expected.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

Apply Rubrics Mini Case 5 1 Unsatisfactory 0.00% 2 Less than Satisfactory 74.00% 3 Satisfactory 79.00% Good 87.00% 5 Excellent 100.00% 100.0 % Content 45.0 % Answer to question A Answer to question A Question A 45.0 % Question B 10.0 % Mechanics of Writing (includes spelling, punctuation, grammar, language use) is not included. Answer to question B is not included. Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word is incomplete or incorrect. Answer to question B is incomplete or incorrect. Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice Answer to question A is included but lacks explanation and relevant supporting details. Answer to question B is included but lacks explanation and relevant supporting details. Some mechanical errors or typos are present, but they are not overly distracting to the reader. Correct and varied Answer to question A is complete and includes relevant supporting details. Answer to question B is complete and includes relevant supporting details. Prose is largely free of mechanical errors, although a few may be present. The writer uses a variety of effective sentence Answer to question A is extremely thorough and supported with substantial relevant details. Answer to question B is extremely thorough and supported with substantial relevant details. Writer is clearly in command of standard, written, academic English. Mini Case 6 The purpose of this assignment is to explain core concepts related to business risk and recommend sound financial decisions based on analysis of a firm's capital structure and capital budgeting techniques. Read the Chapter 15 Mini Case on page 626 in Financial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions a and b. Using the mini case information, write 500-700 word recommendation of the financial decisions you propose for this company based on an analysis of its capital structure and capital budgeting techniques. APA format is not required, but solid academic writing is expected. This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. You are not required to submit this assignment to Turnitin. Mini Case 6 TEXT BOOK: Brigham, E. F., & Ehrhardt, M. C. (2014). Financial management: Theory and practice (14th ed.). Mason, OH: South-Western. ISBN-13: 9781111972219 PLEASE SEE MINI CASE ON NEXT PAGE Please see rubric on next page. Benchmark - Mini Case 6 1 Unsatisfactory 0.00% 2 Less than Satisfactory 74.00% 100.0 %Content 30.0 Answer to Answer to %Question question A is not question A is A included. incomplete or incorrect. 3 Satisfactory 79.00% 4 Good 87.00% 5 Excellent 100.00% Answer to Answer to Answer to question A is question A is question A is included but complete and extremely lacks includes thorough and explanation and relevant supported with relevant supporting substantial supporting details. relevant details. details. 30.0 Answer to Answer to Answer to Answer to Answer to %Question question B is not question B is question B is question B is question B is B included. incomplete or included but complete and extremely incorrect. lacks includes thorough and explanation and relevant supported with relevant supporting substantial supporting details. relevant details. details. 30.0 Recommendatio Recommendatio Recommendatio Recommendatio Recommendatio %Financial ns for proposed ns for proposed ns for proposed ns for proposed ns for proposed Decisions financial financial financial financial financial (C. 3.1) decisions based decisions based decisions based decisions based decisions based on analysis of on analysis of on analysis of on analysis of on analysis of capital structure capital structure capital structure capital structure capital structure and capital and capital and capital and capital and capital budgeting budgeting budgeting budgeting budgeting techniques are techniques are techniques are techniques are techniques are not included. incomplete or included but complete and extremely incorrect. lack explanation include thorough and and supporting supporting include details and details and substantial examples. examples. supporting details and examples. 10.0 Surface errors Frequent and Some Prose is largely Writer is clearly %Mechani are pervasive repetitive mechanical free of in command of cs of enough that they mechanical errors or typos mechanical standard, Writing impede errors distract are present, but errors, although written, (includes communication the reader. they are not a few may be academic spelling, of meaning. Inconsistencies overly present. The English. punctuatio Inappropriate in language distracting to the writer uses a n, grammar, language use) word choice or sentence construction is used. choice (register) reader. Correct or word choice and varied are present. sentence Sentence structure and structure is audiencecorrect but not appropriate varied. language are employed. variety of effective sentence structures and figures of speech. 100 %Total Weightage MUST BE ORIGINAL WORK!!! A v (2) The terms "irrelevance," "dividend preference," or "bird-in-the-hand," and "tax effect" have been used to describe three major theories regarding the way dividend payouts affect a rm's value. Explain these terms, and briey describe each theory. (3) What do the three theories indicate regarding the actions management should take with respect to dividend payouts? (4) What results have empirical studies of the dividend theories produced? How does all this affect what we can tell managers about dividend payouts? b. Discuss (1) the information content, or signaling, hypothesis, (2) the clientele effect, and (3) their effects on distribution policy. C. (1) Assume that IWT has completed its IPO and has a $112.5 million capital budget planned for the coming year. You have determined that its present capital structure (80% equity and 20% debt) is optimal, and its net income is forecasted at $140 million. Use the residual distribution approach to determine IWT's total dollar distribution. Assume for now that the distribution is in the form of a dividend. Suppose IWT has 100 million shares of stock outstanding. What is the forecasted dividend payout ratio? What is the forecasted dividend per share? What would happen to the payout ratio and DPS if net income were forecasted to decrease to $90 million? To increase to $160 million? MINI CASE Integrated Waveguide Technologies, Inc. (IWT) is a 6-year-old company founded by Hunt Jackson and David Smitheld to exploit metamaterial plasmonic technology to develop and manufacture miniature microwave frequency directional transmitters and receivers for use in mobile Internet and communications applications. IWT's technology, although highly advanced, is relatively inexpensive to implement, and its patented manufacturing techniques require little capital as compared to many electronics fabrication ventures. Because of the low capital requirement, Jackson and Smitheld have been able to avoid issuing new stock and thus own all of the shares. Because of the explosion in demand for its mobile Internet applications, IWT must now access outside equity capital to fund its growth, and Jackson and Smitheld have decided to take the company public. Until now, Jackson and Smitheld have paid themselves reasonable salaries but routinely reinvested all after-tax earnings in the rm, so dividend policy has not been an issue. However, before talking with potential outside investors, they must decide on a dividend policy. Your new boss at the consulting rm Flick and Associates, which has been retained to help IWT prepare for its public offering, has asked you to make a presentation to Jackson and Smitheld in which you review the theory of dividend policy and discuss the following issues. a. (1) What is meant by the term "distribution policy"? How has the mix of dividend payouts and stock repurchases changed over time? (2) The terms "irrelevance," "dividend preference," or "bird-in-the-hand," and "tax effect" have been used to describe three major theories regarding the way dividend payouts affect a rm's value. Explain these terms, and briey describe each theory. (3) What do the three theories indicate regarding the actions management should take with respect to dividend payouts? (4) What results have empirical studies of the dividend theories produced? How does all this affect what we can tell managers about dividend payouts? Mini Case 7 1 Unsatisfactory 0.00% 2 Less than Satisfactory 74.00% 3 Satisfactory 79.00% Good 87. 00% 5 Excellent 100.00% Answer to question A is not included. Answer to question A is incomplete or incorrect. Answer to question A is included but lacks explanation and relevant supporting details. Answer to question A is complete and includes relevant supporting details. Answer to question A is extremely thorough and supported with substantial relevant details. Answer to question B is not included. Answer to question B is incomplete or incorrect. Answer to question B is included but lacks explanation and relevant supporting details. Answer to question B is complete and includes relevant supporting details. Answer to question B is extremely thorough and supported with substantial relevant details. 100.0 % Content 45.0 % Question A 45.0 % Question B 10.0 '76 Mechanics of Writing (includes spelling, punctuation, grammar, language use) Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice Some mechanical errors or typos are present, but they are not overly distracting to the reader. Correct and varied Prose is largely free of mechanical errors, although a few may be present. The writer uses a variety of effective sentence Writer is clearly in command of standard, written, academic English. MINI CASE Paul Duncan, nancial manager of EduSoft Inc., is facing a dilemma. The rm was founded 5 years ago to provide educational software for the rapidly expanding primary and secondary school markets. Although EduSoft has done well, the rm's founder believes an industry shakeout is imminent. To survive, EduSoft must grab market share now, and this will require a large infusion of new capital. Because he expects earnings to continue rising sharply and looks for the stock price to follow suit, Mr. Duncan does not think it would be wise to issue new common stock at this time. On the other hand, interest rates are currently high by historical standards, and the rm's B rating means that interest payments on a new debt issue would be prohibitive. Thus, he has narrowed his choice of nancing alternatives to (1) preferred stock, (2) bonds with warrants, or (3) convertible bonds. As Duncan's assistant, you have been asked to help in the decision process by answering the following questions. a. How does preferred stock differ from both common equity and debt? Is preferred stock more risky than common stock? What is oating rate preferred stock? b. How can knowledge of call options help a nancial manager to better understand warrants and convertibles? c. Mr. Duncan has decided to eliminate preferred stock as one of the alternatives and focus on the others. EduSoft's investment banker estimates that EduSoft could issue a bond-with-warrants package consisting of a 20-year bond and 27 warrants. Each warrant would have a strike price of $25 and 10 years until expiration. It is estimated that each warrant, when detached and traded separately, would have a value of $5. The coupon on a similar bond but without warrants would be 10%. (1) What coupon rate should be set on the bond with warrants if the total package is to sell at par ($1,000)? (2) When would you expect the warrants to be exercised? What is a stepped-up exercise price? The purpose of this assignment is to explain core concepts related to stock, equity, debt, and the roles they play in making tactical financial decisions. Read the Chapter 20 Mini Case on pages 824-825 in Financial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions a and b. APA format is not required, but solid academic writing is expected. This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. You are not required to submit this assignment to Tumitin