Aetna- CVS Merger

a) 5 year revenue forecast starting 2018 

b) Model for merger using DCF methodology or LBO model with details on hurdle rate, multipliers etc. Why was a DCF chosen or LBO chosen? If this were you, would this be a friendly acquisition or hostile acquisition?

c) How funding should ideally happen (Debt/ Cash ratio)

d) Any potential risks

Week 4: Understand the Qualitative Approach

For this assignment, please consider the topic and problem you might choose for your Signature Assignment. Respond to the following questions:

• State the research problem and ensure it is supported by at least 3 to 5 scholarly resources within the past 5 years to ensure relevancy. Also keep in mind that your problem statement should reflect your degree (applied or PhD). How could you use qualitative methodology to address your research problem? 
• State the purpose of the research effort. Make sure the purpose is aligned with the problem.
• Draft 2 to 3 research questions that would be appropriate for a qualitative study and addresses your research problem and are aligned with your purpose statement.
• Identify and discuss a design that is associated with qualitative methodology that you would consider to answer your research questions.
• You will find that some problems lend themselves to using one methodology over another. A goal of this assignment was to have you explore how a qualitative methodology might help you address your research questions. You will have an opportunity later in the course to explore other methodologies. Based on your analysis above, do you feel the use of a qualitative methodology and your chosen design is best suited to address your research problem and answer your questions. Why or why not?

Be sure to use scholarly sources to support all assertions and research decisions.

Length: 3-5 pages, not including title and reference pages

Grading Rubric

Criteria

Content (4 points)

Points

1

Clearly defined the problem, purpose and two to three research questions for a qualitative study

 2

2

Problem, purpose, and research questions all align to one another

 1

3

Discuss the qualitative design that is most appropriate for the study

1

Organization (1  point)

4

Organized and presented in a clear manner. Included a minimum of five scholarly references, with appropriate APA formatting applied to citations and paraphrasing.

1

Total

5

Finance Organization And Long-Term Planning

Considering Genesis Energy’s aggressive growth plan, Sensible Essentials suggested that its client should broaden the scope of financing beyond short-term loans and consider long-term financing options. These options would greatly enhance the ability of the operations management team to fund the capital investments and growth in operating expenses. 

One option is selling more equity in the company. A public stock offering might be a possibility; however, a company as young and small as Genesis Energy might be hard to value. Sensible Essentials believes that another private investor might require preferred stock dividends in order to mitigate some of the financial risk. Another option is a long-term bank loan.

Acting as the finance expert for Sensible Essentials, respond to the following:

• Determine the cost of debt and equity for Genesis Energy and its weighted average cost of capital. Go to www.yahoofinance.com and look under SEC filings. Use a US publicly traded company, such as Apple, Google, DuPont, etc. 
• Identify the sources of long-term financing for Genesis Energy.
• Analyze the potential costs and benefits of each option.
• Explain how relative risk (from the investor’s perspective) impacts the cost of capital for Genesis Energy.
• Determine the cost of debt and equity for Genesis Energy and its weighted average cost of capital.
• Calculate the required rate of return for Genesis Energy using the capital asset pricing model (CAPM). What is the required return for Genesis Energy shareholders?

Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation

QUESTION 1

Identify the various steps management must take to establish a successful export strategy. Explain the importance of each step in your opinion.

Your response should be at least 400 words in length.

QUESTION 2

Assume that the corporation you work for is having trouble with a partner in a new foreign market. Discuss the various problems of collaborative arrangements that might be occurring. Be sure to explain the impact of each problem that you use.

Your response should be at least 400 words in length.

DQ Question

Describe a couple of products in your household that have been imported. Could a domestically made product have filled the need just as well? Can you describe any services that you use as being imported?

Genesis Energy Cash Position Analysis

The Genesis Energy operations management team is now preparing to implement the operating expansion plan. Previously, the firm’s cash position did not pose a challenge. However, the planned foreign expansion requires Genesis Energy to have a reliable source of funds for both short-term and long-term needs.

One of Genesis Energy’s potential lenders tells the team that in order to be considered as a viable customer, Genesis Energy must prepare and submit a monthly cash budget for the current year and a monthly cash budget for the subsequent year. The lender will review the cash budget and determine whether or not Genesis Energy can meet the loan repayment terms. Genesis Energy’s ability to repay the loan depends not only on sales and expenses but also on how quickly the company can collect payment from customers and how well it manages its supplier terms and other operating expenses. The Genesis Energy team members agreed that being fully prepared with factual data would allow them to maximize their position as well as negotiate favorable financing terms.

The Genesis Energy management team held a brainstorming session to chart a plan of action, which is detailed here.

• Evaluate historical data and prepare assumptions that will drive the planning process.
• Produce a detailed 2 year cash budget that summarizes cash inflow, outflow, and financing needs.
• Identify and compare interest rates, both short-term and long-term, using debt and equity.
• Analyze the financing mix (short/long) and the cost associated with the recommendation.

Since this expansion is critical to Genesis Energy expanding into new overseas markets, the operations management team has been asked to prepare an executive summary with supporting details for Genesis Energy’s senior executives.

Working over a weekend, the management team developed realistic assumptions to construct a working capital budget.

1. Sales: The marketing expert and the newly created customer service personnel developed sales projections based on historical data and forecast research. Please use the sales projections provided in the template. See “Download” in item 1 below.
2. Other cash receipt: Rental income $15,000 per month for Y1 and 20,000 for Y2.
3. Production material: The production manager forecasted material cost based on cost quotes from reliable vendors, the average of which is 45 percent of sales
4. Other production cost: Based on historical cost data, this cost on an average is 30 percent of the material cost and occurs in the month after material purchase
5. Selling and marketing expense: Six percent of sales
6. General and administrative expense: 18 percent of sales
7. Interest payments: $10,000—Payable in December Y1 and $0 payable in December Y2.
8. Tax payments: $15,000—Quarterly due on 1st of April, July, October, and January
9. Minimum cash balance desired: $25,000 per month
10. Cash balance start of month (December): $10,000
11. Available short-term annual interest rate is 8 percent, long-term debt rate is 9 percent, and long-term equity is 10 percent. All funds would be available the first month when the firm encounters a deficit
12. Dividend payment: None

Based on this information, do the following:

1. Using the Cash Budget spreadsheet, calculate detailed company cash budgets for the forthcoming and subsequent year. Summarize the sources and uses of cash, and identify the external financing needs for both the forthcoming and subsequent years.

   Download this Excel spreadsheet to view the company’s cash budget. You will calculate the company’s monthly cash budget for the forthcoming year and quarterly budget for the subsequent year using this information.

2. In an executive-level report, summarize the company's financing needs for the forecast period and provide your recommendations for financing the planned activities. Be sure to comment on the following:
   1. Your recommended financing solution and cost to the firm: If Genesis Energy needs operating cash, how should it fund this need? Are there internal policy changes with regard to collections or payables management you would recommend? What types of external financing are available?
   2. Your concerns associated with the firm's cash budget. Is this a sign of weak sales performance or poor cost control? Why or why not?

Write a 7-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc.

Unit 3 Initial Discussion Board

• What involvement does management      need to have to achieve buy-in from internal and external stakeholders?

This Must Be Plagiarism Free With At Least 1-2 References, Citing Where Necessary.

Capital Budgeting

Capital budgeting is a tool used in business to determine the financial viability of a potential project. Net present value, internal rate of return, payback, discounted payback, and modified rate of return are some of the calculations used once businesses have a reliable cash flow budget for their project.

In this assignment, you will demonstrate your understanding of the necessary aspects of capital budgeting.

Tasks:

Respond to the following:

• What is capital budgeting and why is it important to business decisions?
• Discuss how the information should be organized in a capital budgeting process, and who will use the information for decision-making.
• What could go wrong with the capital budgeting process?
• Provide an example of a capital budgeting process from an online source and explain the salient points of this example to the class.

Genesis Energy Cash Position Analysis

The Genesis Energy operations management team is now preparing to implement the operating expansion plan. Previously, the firm’s cash position did not pose a challenge. However, the planned foreign expansion requires Genesis Energy to have a reliable source of funds for both short-term and long-term needs.

One of Genesis Energy’s potential lenders tells the team that in order to be considered as a viable customer, Genesis Energy must prepare and submit a monthly cash budget for the current year and a monthly cash budget for the subsequent year. The lender will review the cash budget and determine whether or not Genesis Energy can meet the loan repayment terms. Genesis Energy’s ability to repay the loan depends not only on sales and expenses but also on how quickly the company can collect payment from customers and how well it manages its supplier terms and other operating expenses. The Genesis Energy team members agreed that being fully prepared with factual data would allow them to maximize their position as well as negotiate favorable financing terms.

The Genesis Energy management team held a brainstorming session to chart a plan of action, which is detailed here.

• Evaluate historical data and prepare assumptions that will drive the planning process.
• Produce a detailed 2 year cash budget that summarizes cash inflow, outflow, and financing needs.
• Identify and compare interest rates, both short-term and long-term, using debt and equity.
• Analyze the financing mix (short/long) and the cost associated with the recommendation.

Since this expansion is critical to Genesis Energy expanding into new overseas markets, the operations management team has been asked to prepare an executive summary with supporting details for Genesis Energy’s senior executives.

Working over a weekend, the management team developed realistic assumptions to construct a working capital budget.

1. Sales: The marketing expert and the newly created customer service personnel developed sales projections based on historical data and forecast research. Please use the sales projections provided in the template. See “Download” in item 1 below.
2. Other cash receipt: Rental income $15,000 per month for Y1 and 20,000 for Y2.
3. Production material: The production manager forecasted material cost based on cost quotes from reliable vendors, the average of which is 45 percent of sales
4. Other production cost: Based on historical cost data, this cost on an average is 30 percent of the material cost and occurs in the month after material purchase
5. Selling and marketing expense: Six percent of sales
6. General and administrative expense: 18 percent of sales
7. Interest payments: $10,000—Payable in December Y1 and $0 payable in December Y2.
8. Tax payments: $15,000—Quarterly due on 1st of April, July, October, and January
9. Minimum cash balance desired: $25,000 per month
10. Cash balance start of month (December): $10,000
11. Available short-term annual interest rate is 8 percent, long-term debt rate is 9 percent, and long-term equity is 10 percent. All funds would be available the first month when the firm encounters a deficit
12. Dividend payment: None

Based on this information, do the following:

1. Using the Cash Budget spreadsheet, calculate detailed company cash budgets for the forthcoming and subsequent year. Summarize the sources and uses of cash, and identify the external financing needs for both the forthcoming and subsequent years.

   Download this Excel spreadsheet to view the company’s cash budget. You will calculate the company’s monthly cash budget for the forthcoming year and quarterly budget for the subsequent year using this information.

2. In an executive-level report, summarize the company's financing needs for the forecast period and provide your recommendations for financing the planned activities. Be sure to comment on the following:
   1. Your recommended financing solution and cost to the firm: If Genesis Energy needs operating cash, how should it fund this need? Are there internal policy changes with regard to collections or payables management you would recommend? What types of external financing are available?
   2. Your concerns associated with the firm's cash budget. Is this a sign of weak sales performance or poor cost control? Why or why not?

Write a 7-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc.

International Business Unit V Assessment And DQ Question

QUESTION 1

Identify the various steps management must take to establish a successful export strategy. Explain the importance of each step in your opinion.

Your response should be at least 400 words in length.

QUESTION 2

Assume that the corporation you work for is having trouble with a partner in a new foreign market. Discuss the various problems of collaborative arrangements that might be occurring. Be sure to explain the impact of each problem that you use.

Your response should be at least 400 words in length.

DQ Question

Describe a couple of products in your household that have been imported. Could a domestically made product have filled the need just as well? Can you describe any services that you use as being imported?

Apple Corporation Analyst Project Materials

We are going to use Apple Corporation as our source company for a number of finance related projects. The first project will be a financial analysis of the company.

Attached are the instructions and work sheet for the Analyst Project. All class members will analyze Apple – you may not select another company. Neil