Week#5 Assignments due 14 Nov 2017
Discussion Board: A bond is defined as a debt investment (Links to an external site.)Links to an external site. in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable, or fixed interest rate (Links to an external site.)Links to an external site.. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. When we use a credit card, we borrow money from the credit card company and pay when it’s due. It is short-term borrowing with no interest unless it’s revolving. It seems like the economy is running on debt.
Discuss your thoughts on borrowing or lending money and bond or credit card use.
Here are some interesting scriptural facts and bible verses about money
- Jesus talked about money more than He talked about heaven or hell • Jesus talked about money more than anything else except the kingdom of God • 11 of the 39 parables talk about money • 1 out of every seven verses in the Gospel of Luke speaks about money
Why? He knew we would struggle with money. You can’t serve God and money. He spoke on the importance of money…He spoke of taxes (render unto Caesar) He talked about investing (parable of the talents)
If Jesus placed an importance on the study of money, should we address the importance of money in our own lives? Write a paragraph to explain the importance or lack of importance that you place on the subject of money.
Conclude your response with a brief Biblical Integration about money, in addition to your position on borrowing/ lending. Please cite sources as you support your ideas. You will use the textbook, the above links, and at least one additional academic source (journal article) as references. Please cite/list sources using the APA style and 200 words or more.
Assignment: Assignments are to be completed in Myfinancelab.com provided by the publisher. Each student is expected to turn in their own individual work. No late homework will be accepted. This assignment is due every session.
Each student will analyze the stock and bond of the already-selected company using the company’s most recent Annual Report and/or 10K report (and other reports as desired). Details in Appendix B
APA format required. See grading rubrics.
- Bond & Stock Analysis (Section 2)
- Bond: Analyze company’s debt only using it’s bonds(short-term and long-term debt). You need to research the company’s credit rating and interest rate. You need to be creative in analyzing this area. For example, you can analyze how your company’s debt burden is or if the interest payment is too much for its sales and so on. You can also research public information about the company’s financial risk. There is not much you can calculate for this analysis, but there is a lot of information about the company’s debt.
- Stock: Analyze the company’s stock using its current market price, book price and forecasted price. You need to estimate fair price of the stock based on financial statements and forecasted price introduced in the textbook. You are required to use P/E ratio to forecast stock price, and to compare book price with market price. You also need to use dividend to calculate current fair price of the stock. Therefore, You will compute current fair price and future price for the stock. Your decision here will be determining the right price of the stock. You should not use any other technical analysis(graph or regression model) that is out of the scope or use any other analysis result by professionals.
- You can bring some of the ratio analysis or you can create your own ratio test. You can even use numbers in the financial statements.
- Address summarized analysis.
- Implication of the study
- Biblical integration can be applied
- References used in the study
- Additional formulas and/or concept needs more explanation