- Assigned Readings:Chapter 4. Corporate Governance: Foundational IssuesChapter 5. Strategic Management and Corporate Public AffairsChapter 6. Risk, Issue, and Crisis ManagementInitial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.Also, provide a graduate-level response to each of the following questions:
- Do research on the impact of Hurricane Sandy on business organizations. What have been successful and unsuccessful examples of crisis management that have come out of this research? Is terrorism a likely crisis for which business may prepare? How does preparation for terrorism (which comes from without) compare with preparation for ethical scandals (which come from within)?
[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student’s own words – do not provide quotes!] [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]Submitting the Initial Posting:Your initial posting should be completed by Thursday, 11:59 p.m. EST. Response to Other Student Postings: Respond substantively to the post of at least two peers, by Friday, 11:59 p.m. EST. A peer response such as I agree with her, or I liked what he said about that or similar comments are not considered substantive and will not be counted for course credit.[Continue the discussion through Sunday,11:59 p.m. EST by highlighting differences between your postings and your colleagues’ postings. Provide additional insights or alternative perspectives]Evaluation of posts and responses: Your initial posts and peer responses will be evaluated on the basis of the kind of critical thinking and engagement displayed. The grading rubric evaluates the content based on seven areas:Content Knowledge & Structure, Critical Thinking, Clarity & Effective Communication, Integration of Knowledge & Articles, Presentation, Writing Mechanics, and Response to Other Students.
ACTIVITY 2 QUESTION2
Activity I -Visit the website of Institutional Shareholder Services, Inc. (ISS), a provider of corporate governance solutions, at http://www.issgovernance.com/. Go to the Policy Gateway tab and select a recently adopted ISS policy. Write a memo to shareholders explaining the policy and how it will affect the corporate governance of companies. You also should explain why ISS has adopted the proposal and whether or not you agree with the proposal. Finally, you should provide a recommendation as to how shareholders should proceed regarding the proposal.Activity II -Visit the Public Affairs Councils website at http://pac.org/. Review the Councils various areas of expertise. Select an area of expertise and, in a written memorandum, explain why it is a public affairs issue. Review a news story under your selected area of expertise and describe what impact, if any, the issue addressed in the story will have on businesss strategy with regards to public affairs.The assignment is to answer the question provided above in essay form. This is to be in narrative form and should be as thorough as possible. Bullet points should not to be used. The paper should be at least 1.5 – 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to competitive strategy. The textbook should also be utilized. Do not insert excess line spacing. APA formatting and citation should be used.
PROBLEM SET #2
Dilli Bista, MBA is the financial manager for Computron Inc. a large public corporation specializing in software manufacturing. The company designs and develops software programs that allow users to create their own documents, apps, animations, and other media content. Despite a huge investment made last three years in fixed assets, the companys sales revenue and profit margins have decreased over the years because of the Covid-19 pandemic and complaints of some parents about the effect of video games on their kids social life and academic performance. Dilli is analyzing the companys financial statements and annual reports to determine the financial performance of the company for the year and see how the performance can be improved.
Dilli noticed that last year the company had $4 million in operating income (EBIT). The company had a depreciation expense of $1 million and an interest expense of $1 million. The companys tax rate is 25%. The company has $14 million in operating current assets and $4 million in operating current liabilities and has $15 million in net plant and equipment. The company has after-tax cost of capital of 10%.
1. List four types of financial statements that the companys annual report typically include. State three items that can be found in each of the financial statement of Computron Inc.
2. Determine Computrons net income for the year. Show your calculations.
3. What was Computrons net cash flow?
4. What was Computrons net operating profit after taxes (NOPAT)?
5. Calculate net operating working capital and total net operating capital for the year.
6. Calculate Computrons free cash flow for the year if net operating capital in the previous year was $24 million.
7. Explain to the chairman of the board five uses of free cash flow that can help maximize the value of the firm.
8. Explain Economic Value Added (EVA) and compute Computrons EVA if total net operating capital is $25 million? The companys after-tax cost of capital is 10.0%.
9. Compute and explain market value added (MVA) for Computron using the following information:
i. total number of shares outstanding is 2 million
ii. current stock price is $35 per share
iii. total common equity is $68.2 million
10. Calculate the companys return on invested capital (ROIC). Do you think Computrons growth added value?
Submit your answers in a Word document.