Finance Assignment Example | Topics and Well Written Essays - 2250 words

Finance - Assignment Example A firm with more contractual obligations i.e debt but insufficient cash or marketable securities to repay the debt definitely faces liquidity problems. The circumstances turn grimmer with more and more liquidity crisis in the organization when the firm becomes completely unable to repay its obligations, thus the firm in such situations become insolvent or faces solvency problems. Thus with more amount of liquidity crisis with not much fresh cash or marketable securities in the system, the firm tends to borrow more from the banks and financial institutions thereby increasing its obligations of repayment more. But with high debt to equity ratio sometimes it becomes difficult for organizations to obtain debt from the financial institutions. This definitely hampers the operational activities of the organization. In such a situation with deep crisis of liquid cash to carry out business and with difficulty in getting loans from the banks, the sustainability of the firm in the long run gets hampered. In certain cases the firm becomes insolvent and may go out of business. (Burnside, 2005, pp.87-90; Course material, pp.112-118) Different approaches to Financial Asset Valuation: One of the major approaches designed in the financial valuation process includes valuation of Equity. The major forms of equity valuation include- 1) Dividend discount modeling- Under this method of valuation, the valuation of the firm is determined by the dividends paid out by the firm. Using the  projected growth rate in dividends in the next 5 years with an estimated growth rate and then using a constant growth rate for the rest of the years, discounted by the required rate of return by the shareholders’  the valuation of the firm is determined. 2) 2) The free cash flow modeling approach- The valuation method is performed using the free cash flow. The free cash flow is the cash flow available to the firm after meeting the necessary capital expenditures and necessary short-term worki ng capital requirements. In this method also, the valuation is performed using the projected free cash flow in the next 5 years using a projected growth rate and then a constant rate for the rest of years after the 5-year period, discounted by the required return for the shareholders. 3) 3) Price earning model- This equity valuation method is a market based method which calls for the market price an investor wants to pay for 1 rupee earning by the company. Higher Price-Earnings ratio designates that the company is overvalued in terms of its market compared to its earnings. Besides equity valuation, we have valuation for fixed income securities like bonds. Bonds, which have fixed coupon rate attached to them, pay fixed interest every year. The fair value of the bond is calculated by the annuity approach which is calculated by the summation of the net present value of the fixed coupon interest over the maturity of the bond with a discount rate as required by the bond holders. (Pinto, Henry, Robinson & Stowe, 2010, p.1) 1B)   On the Capital and Liability side of the Balance sheet of different organizations, the different types of capital and liabilities have different features. These are categorized under the major head ‘Financial capital’. The different classifications include the following: 1) Senior debt, 2) Mezzanine debt, 3) Subordinate debt, 4) Preferred Stock and 5) Common Stock. In case a company goes bankrupt, the company has to first pay back its obligations to the debt holders and finally to

DESIGNING AND PREPARING TO IMPLEMENT AN EVALUATION Research Paper

DESIGNING AND PREPARING TO IMPLEMENT AN EVALUATION - Research Paper Example For this reason, there is need to evaluate the use of Vermont Immunization Registry and incorporate it into a family medical center. Rationale Center for Disease Control argues that the recent increase in immunization of children has led to the increase in diseases like Polio, Measles, and Pneumonia, because there is no good database that is able to record all the vaccines that a child has been given. For this reason, CDC decided that Vermont Immunization Registry be evaluated to determine its strengths and weaknesses. Immunization has been identified as a cost effective and beneficial means through which new infections are eradiated or reduced. This project entails the creation of a computerized system through which immunization records can be safely kept and maintained. It is for this reason that the Vermont Immunization Registry (IMR) was implemented into the Family Medical Center. The registry was to promote quality and efficient treatment for the patients and to ensure that all immunizations are done on time and proper records kept. According to Centers for Disease Control and Prevention (2004) immunization has succeeded in eradicating diseases such as smallpox, measles, poliomyelitis, and rubella worldwide (Meri, Jordens, & Jarva, 2008). A computerized system for maintaining records of immunization is needed. The system should track the immunization dates, printed school, and parent reports. It is essential in guiding and timing the appropriate time for administration of vaccines. Health care providers for the past two years have scattered the medical record papers. Parents, therefore, find themselves looking for their immunization records. This has helped in saving many by ensuring that the right vaccine is administered to the children (Maciosek et al., 2006). Statement of the Problem Most of the parents struggle with vaccination procedures and dates. The research provides ways of training parents on how to access their vaccination data through the compu ter at any time. Most of the nurses, doctors, and family members are also facing a challenge in utilizing this program hence the need for evaluation Purpose of Evaluation It is important for health services, doctors, and patients to access their vaccination information at any time. This report shows the efficiency and advantages of accessing this information. This study will evaluate the effectiveness of Solution Criteria To be able to access vaccination data at any place all over the world Proposed Task Statement The problem can be solved by installing a computer guide on how to correctly input the data. Allocation of resources by the management also needs to be revised. Stakeholders Primary CDC- they are the reference point and ensure they support fully the evaluation program. They are also responsible for the evaluation program. Financial Committee- The director of finance must ensure allocation of funds for the evaluation program for all the hospitals within US. Secondary Stakeh olders Supervisors-Supervisors will be in charge of ensuring that there is proper training of the medical staff and ensure full participation of all those involved. Volunteers Staff and Parents Volunteer’s staff and parents will be responsible for taking part in the training program to ensure there is full evaluation of the Vermont Immunization Registry for the future. Tertiary Stakeholders Investors-this will include the private and public investors who are aiming at supplying the computer machines and upgrade programs. Key Evaluation Questions The evaluation of this training program will aim to answer the following questions: 1. What do the volunteers, staff, supervisors, and upper level management think about the current training program? 2. What are those that partake in the training learning as a result of