Discussion 1
Q1. What are some of the criticisms or problems associated with the bankruptcy system? Are these criticisms valid? Why or why not? Are there any responses or solutions to address these criticisms?
Q2. What are the advantages of a company's formal reorganization?
Q3. Why do creditors usually accept a plan for financial rehabilitation rather than demand liquidation of a business?
Q4. Under what scenario might a liquidation be a better option than reorganization or rehabilitation? Why?
Discussion 2
Q1. A friend asks whether he should open a savings account that pays 5 percent interest compounded semiannually or one that pays 5 percent interest compounded daily? What would you tell him or her, and why? and explain the role that the time value of money plays.
Q2. If each of the positions below, if you were required to choose two major financial tools to focus on and become expert at, which would you choose? Why? Support your answers by providing at least one example of why your chosen tools are important for each position; rank the tools in order of importance to the job requirements.
o Financial planner
o Financial analyst
o Portfolio manager
Q3. How is the time value of money relevant to retirement planning? Discuss the TVM in terms that a non-financially savvy couple in their mid-forties could understand.
Discussion 3
Q1. In your own words explain what fund capital is. How does it differ from equity capital?
o Why would a not-for-profit be concerned with managing fund capital?
o What role would a financial manager play in working with fund capital? Explain, giving at least two specific examples.
Q2. Describe the net present social value model for making capital budgeting decisions. Giving at least one specific example, explain how social value might be measured.
Q3. What role does the NPV model play in not-for-profit management? and give examples.