Determine the estimated stock price per share utilizing Figure 7-6 on page 309.

Review the guidelines for instructions on completing this assignment.

Consider the following simple rules of observation to help determine the final results:

  • If the Beta coefficient and the required rate of return on common equity is not increasing constantly as the amount of debt in the structure moves from 0% to increasing levels of debt, something is wrong.
  • If the cost of debt does not fall and then begin to increase as the risks of bankruptcy increase, something is wrong.
  • If the WACC curve does not display some type of U-shaped form (Note: You may have to make the vertical percentage cost scale have very small increments to show this.), something is wrong.

Format your final submission according to APA standards, and include reference and cover pages.

Submit your project for grading.

 

Dear BSA 554 MBA 731,

In order that you may work ahead of time on the final WACC project for the course, the week-9 and week-10 tabs have been opened.

 

BSA 554 WACC Project Check-list:

For each section of the project please show all calculations and write a paragraph on what you have learned in completing each step of the project. This provides you an opportunity to explain your work in deriving the section’s material.

Please note that the project must analyze a domestic-headquartered, publicly-traded corporation listed on the NYSE or on the NASDAQ.  The firm must have long-term debt.

1.       Determine the firm’s rd from the 10-K report in the Note to the Long-term Debt, where rd = ∑(wdi*rdi), where wdi = the weight of debt for each bond and rdi is the coupon rate for each bond.  Please regard equation 6.6 on page 247 for a review of the methodology.

2.       Construct the capital structure of the firm to find the wd and we components of the WACC.  Note that the dollar amount of long-term debt and the dollar amount of total equity should be utilized.  Preferred equity dollar amount should be included in the calculation if the firm still has preferred equity outstanding.

3.       Find the firm’s beta.

4.       Determine the firm’s tax rate from the 10-K information.  Please make sure to include the page number where you determined the firm’s tax rate in the 10-K report from the previous fiscal year.

5.       Find either the 1-year Treasury bill rate or the 10-year Treasury note rate at the close of the firm’s fiscal year.  If the risk-free rate is provided by the firm in the 10-K, please utilize this percentage. Full credit will not be earned if the 4% rfr in the givens in the instructions is utilized.

6.       Find an appropriate rm percentage for the previous fiscal year.  Full credit will not be earned if the 8% rpm given in the instructions is utilized.

7.       Construct the current CAPM rs for the firm.  Please review page 258, equation 6.14.

8.       Construct the current WACC for the firm.  Please review page 375, equation 9.2.  Note that you do not have to utilize the short-term debt portion in the equation.

9.       Calculate the beta unlevered.  Please review page 611, equation 15-10.

10.   Calculate the new beta levered at plus or minus 5% or 10% intervals of wd in the firm’s capital structure.  Please review page 611, equation 15.9a.

11.   Determine the new rs CAPMs at each differing capital structure utilizing the new levered betas.

12.   Make sure to adjust the rd by plus or minus the percentage of wd’s change, so that a leverage increase of 5% should result in a new rd of (rd*1.05) and a leverage decrease of 5% should result in a new rd of (rd*0.95).  Please refer to page 610 figure 15-5.

Please review the week-10 announcement that includes information on problems 15-9, 15-10, and 15-11 on pages 622 and 623.

13.   Replicate rows 1 to 6 in figure 15-5 on page 610 to determine the capital structure where WACC is minimized.

14.   Graph the WACCs at the different capital structures of the firm as stated in the instructions.  Note that the WACC graph should be in a “U” shape.

15. Calculate the FCF utilizing Figure 2-5 on page 65.  Please show the calculations for steps 1 to 5.

16.  Using a zero-growth valuation model of V^0 = FCF/WACC, determine the V^0 at the optimal capital structure.

17.  Determine the estimated stock price per share utilizing Figure 7-6 on page 309.

18.  Review that stock price of the firm at the close of fiscal 2015.  Compare the market price to the calculated intrinsic price, and make a recommendation on the stock.   Support your recommendation with a stock chart and analysts’ information.

The project is due by Sunday, March 26th.  No late work will be accepted.

Describe the importance of self-awareness, self-concept, and emotional intelligence and the role they play in enabling effective conscious leadership.

Highlighted= Answers to question

Details:

This assignment focuses on the tenet of conscious leadership, the importance of self-assessment, and reflection. Self-awareness is essential for developing management and leadership skills. Recognizing your own strengths, weaknesses, and values, and understanding emotional intelligence and learning styles can help you to be a more effective leader. Becoming self-aware is an ongoing process requiring introspection. The more often people practice self-reflection, the more opportunities they have to understand their own behaviors and adapt their approaches to working with other people, which can improve both your own and other’s abilities to meet their professional goals.

Self-Assessment

For this assignment, you have the opportunity to take a variety of self-assessments to learn more about yourself and identify your assets and weaknesses as a leader. This will assist you in discovering how you can improve your own self-leadership skills. You will be asked to think critically about your results and submit a reflection as directed below. As a starting point, review the resources on conscious capitalism at: http://www.consciouscapitalism.org/ . There are several helpful resources, including white papers and speech transcripts, available under the Content tab on the main page of this site. Conduct additional research beyond this website on the principle of conscious leadership.

Refer to the “Self-Assessment Links” resource in Topic Materials and complete each test. Be sure to document the results of each assessment to assist you in completing the reflection portion of the assignment below.

Self-Assessment Reflection

After completing the self-assessments, write a 1,000-1,250 word reflection in which you discuss the following:

1. Explain the characteristics of conscious leadership as defined by Mackey and Sisodia and compare them to the primary characteristics of two or three other leadership theories you have studied. https://hbr.org/2013/01/cultivating-a-higher-conscious

2. Describe the importance of self-awareness, self-concept, and emotional intelligence and the role they play in enabling effective conscious leadership.

3. Briefly summarize the results of each test you completed. In general, do you believe the results represent who you are as a leader? (Yes). How will the results inspire you to be a conscious leader? (It shows my strengths and weaknesses and helps me to be able to combat what areas I need to work on to not only become a better person but also a better leader). Explain.

4. What insights have you gained about yourself after taking the assessments? How could this knowledge influence your values, attitude towards others, and how you approach new tasks in the workplace? (Check page 6 of Rokeach Value Survey).

5. Explain the significance of the self-assessment results in relation to your individual behavior, your behavior within groups, and within organizations. (The results are conclusive to how I am in all 3 categories). What have you learned about your ability to manage others within the workplace? (Don’t judge people base off of who they are and be able to get to know them more instead). What have you learned about what it takes to manage yourself or how you respond to the management tactics of others within the workplace? (Be able to assess the situation at hand and work on solution to fix the problems at hand).

Include at least four academic references for this assignment to support your analysis and reflection.

Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. (Please see attached Rubric)

Summer Dress Code Memo

Homework 1 Summer Dress Code Memo

(p.167)

Imagine that you work for an entertainment company and have asked an intern to draft an email to

employees about a summer dress code. The email will be distributed to 300 employees in the corporate

office. You will allow employees to dress more casually during the warm weather, but you also want to

give them clear guidelines on what is and is not acceptable to wear in the office. You receive the draft

from the intern, but it needs work. Rewrite the draft email for employees.

What experiences in your personal and professional life contributed to your score on cognitive complexity?

Review the material below and answer the following questions:

• Cognitive complexity implications for competitive advantage (Journal of Business Research, Cheng and Chang, 3 pages, very academic and very short article)

• Leading with Competence: Problem Solving by Leaders (Executive Forum, Thomas Bateman, 7 pages, a good read)

• Preparing for a Crisis in Sudan (Mini-case study from the GM book)

• Optional: GM Book Ch. 3 Cognitive Complexity

1 What experiences in your personal and professional life contributed to your score on cognitive complexity? How do you feel about your scores and are any of these GMI dimensions a focal point for you to develop going forward?

2 How does this material help you, personally, enhance your global mindset capabilities and be a more effective leader and manager? Be specific by referring to the articles.

3 If you were Ravi, how do you think you would have handled this crisis situation? What resources would you have wished you had if you were Ravi?

4 Optional: If you purchased the Global Mindset e-text, complete at least one of the recommendations/activities from the cognitive complexity chapter to improve your competence in this dimension of global mindset, and share what you learned with your teammates. If the activity you chose requires a longer process, share with your teammates how much progress you’ve made.

Post answers to all the questions proposed in the assignment by 5:30pm 3/6/2018

Page 2-3

Thunderbird Global Mindset ®

Inventory

Jiangyi Qiu

08-Feb-18

 

1/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

 

Jiangyi Qiu

What is Global Mindset? Global Mindset is the ability to influence others who are different than you. It is a critical combination of intellectual, psychological and social capital:

• Intellectual Capital refers to your global business savvy, cosmopolitan outlook, and cognitive complexity.

• Psychological Capital refers to your passion for diversity, quest for adventure, and your self- assurance.

• Social Capital refers to your intercultural empathy, interpersonal impact, and diplomacy.

Why is Global Mindset Important? Today’s corporations are more globally connected than ever before. They are in pursuit of global customers, global talent, global credit, global manufacturing, global partners, and global supply chains. They have a large global workforce, use global business and virtual teams, and need to work with large numbers of groups and organizations in many parts of the world. As a consequence, their managers and leaders need to be effective in working and dealing with people who are different from them. Their success will depend on their ability to influence others from many parts of the world to help achieve their organizational goals. Global Mindset is a set of individual attributes that help global leaders and managers do a better job of influencing others who are different from them.

Can Global Mindset Be Developed? YES! All elements of Global Mindset can be developed and improved. But it is true that some aspects of Global Mindset are easier to develop than others. During the feedback workshop, you and your colleagues, working individually and in groups, will identify ways of improving your own, and your group’s stock of Global Mindset. At the end of the session, you will receive Thunderbird’s suggestions on how to improve your Global Mindset.

2/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi
QiuJiangyi
QiuJiangyi
QiuJiangyi

 

Jiangyi Qiu

About This Report This report is designed to provide you with feedback on your approach in dealing with people from other cultural and geographic backgrounds. Increasingly, managers are expected to work effectively with individuals and groups from different parts of the world. Therefore, the ability to master such relationships is becoming more important. The purpose of this feedback report is to help you find ways of improving your ability to deal with people from diverse cultural settings. The report provides feedback on your personal profile of Global Mindset, as well as your group’s profile of Global Mindset.

The report is based on the Thunderbird Global Mindset Inventory, a scientifically based instrument that has been used to collect data from thousands of respondents working for global organizations in many countries. The instrument has strong scientific properties and has been developed through a rigorous scientific process. Here are the details of your report:

Page 4 Your overall profile of Global Mindset

Page 5 The complete structure of Global Mindset

Page 6 Detailed explanation of Intellectual Capital

Page 7 Your profile of Intellectual Capital

Page 8 Detailed explanation of Psychological Capital

Page 9 Your profile of Psychological Capital

Page 10 Detailed explanation of Social Capital

Page 11 Your profile of Social Capital

Page 12 Your overall profile of Global Mindset (repeat of page 4)

Page 13 Your Global Mindset profile sorted from your highest score to the lowest score.

Page 14-15 The Group Profile

Page 16 Global Mindset Scores Summary

Page 17-19 Your Personal Observations

Good Luck!

3/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Your Global Mindset Profile

Intellectual Capital

Psychological Capital

Social Capital

Your Score Group Mean (n=24) Grand Mean (n=34,416)

1 2 3 4 5 Not at all To a small extent To a moderate extent To a large extent To a very large extent

Note: The light gray bars below the Group Avg. and the Grand Mean indicate the range of min. and max. values for the Group and Grand Mean respectively.

TEST

TEST

TEST

3.24

3.28

3.26

3.21

3.58

3.86

3.10

3.51

3.48

4/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

 

On the following pages you will receive your scores on all of the above elements of Global Mindset.

5/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Intellectual Capital Your Intellectual Capital reflects your global business savvy, your cosmopolitan outlook, and your cognitive complexity. The following are major elements of Intellectual Capital.

Global Business Savvy:

• Knowledge of global industry

• Knowledge of global competitive business and marketing strategies

• Knowledge of how to transact business and assess risks of doing business internationally

• Knowledge of supplier options in other parts of the world

Cosmopolitan Outlook:

• Knowledge of cultures in different parts of the world

• Knowledge of geography, history, and important persons of several countries

• Knowledge of economic and political issues, concerns, hot topics, etc. of major regions of the world

• Up-to-date knowledge of important world events

Cognitive Complexity:

• Ability to grasp complex concepts quickly

• Strong analytical and problem solving skills

• Ability to understand abstract ideas

• Ability to take complex issues and explain the main points simply and understandably

Individuals with high scores on Intellectual Capital tend to be very knowledgeable about their global industry. They understand how the industry operates and how global competitors position themselves to generate competitive advantage. They also know how global customer markets behave and how various competitors attempt to target their markets. They have an understanding of supply chain options and issues in their industry and are cognizant of country risk analysis in global decision making.

A high score on Intellectual Capital reflects strong understanding of culture, history, geography, and political and economic systems in different parts of the world. It also reflects the ability to understand the complexity of global business and the ability to find appropriate solutions to complex problems. TEST

 

6/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Your Intellectual Capital Profile

Global Business Savvy

Cosmopolitan Outlook

Cognitive Complexity

Your Score Group Mean (n=24) Grand Mean (n=34,416)

1 2 3 4 5 Not at all To a small extent To a moderate extent To a large extent To a very large extent

Note: The light gray bars below the Group Avg. and the Grand Mean indicate the range of min. and max. values for the Group and Grand Mean respectively.

Your personal observations:

 

TEST

TEST

TEST

3.63

2.94

2.61

3.29

3.16

3.22

2.80

3.75

3.93

7/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Psychological Capital Psychological Capital reflects your passion for diversity, quest for adventure, and your self- assurance. The following are the major elements of Psychological Capital.

Passion for diversity:

• Enjoy exploring other parts of the world

• Enjoy getting to know people from other parts of the world

• Enjoy living in another country

• Enjoy traveling

Quest for Adventure:

• Interest in dealing with challenging situations

• Willingness to take risk

• Willingness to test one’s abilities

• Enjoy dealing with unpredictable situations

Self-Assurance:

• Energetic

• Self-confident

• Comfortable in uncomfortable situations

• Witty in tough situations

Individuals who score high on Psychological Capital, tend to have a passion for diversity which leads them to enjoy exploring other parts of the world, other cultures, and other ways of doing things. They enjoy meeting people from other countries and living in other corners of the world. They tend to consider themselves as citizens of the world and enjoy the opportunity to learn about other cultures and peoples.

A high score on Psychological Capital reflects a high level of self confidence, a sense of humor, and a willingness to take risks. It reflects a desire to challenge oneself and the ability to thrive in unpredictable and complex environments. TEST

 

8/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Your Psychological Capital Profile

Quest for Adventure

Self-Assurance

Passion for Diversity

Your Score Group Mean (n=24) Grand Mean (n=34,416)

1 2 3 4 5 Not at all To a small extent To a moderate extent To a large extent To a very large extent

Note: The light gray bars below the Group Avg. and the Grand Mean indicate the range of min. and max. values for the Group and Grand Mean respectively.

Your personal observations:

 

TEST

TEST

TEST

3.40

3.62

3.77

3.20

3.45

3.66

3.03

3.67

4.15

9/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Social Capital Social Capital reflects your intercultural empathy, interpersonal impact, and diplomacy. The following are the major elements of Social Capital.

Intercultural Empathy:

• Ability to work well with people from other parts of the world

• Ability to understand nonverbal expressions of people from other cultures

• Ability to emotionally connect to people from other cultures

• Ability to engage people from other parts of the world to work together

Interpersonal Impact:

• Experience in negotiating contracts/agreements in other cultures

• Strong networks with people from other cultures and with influential people

• Reputation as a leader

Diplomacy:

• Ease of starting a conversation with a stranger

• Ability to integrate diverse perspectives

• Ability to listen to what others have to say

• Willingness to collaborate

Individuals who receive high scores on Social Capital, are better able to build trusting relationships with people who are different from them. They are viewed as effective leaders and diplomats in the sense that they are good listeners, at ease in conversations with other, and are able to bring divergent views together and develop consensus among different parties.

A high score signifies the ability to show empathy, and emotionally connect to people from other parts of the world. It reflects the ability to engage others and to have an extensive network of friends and colleagues in different countries. TEST

 

10/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Your Social Capital Profile

Interpersonal Impact

Intercultural Empathy

Diplomacy

Your Score Group Mean (n=24) Grand Mean (n=34,416)

1 2 3 4 5 Not at all To a small extent To a moderate extent To a large extent To a very large extent

Note: The light gray bars below the Group Avg. and the Grand Mean indicate the range of min. and max. values for the Group and Grand Mean respectively.

Your personal observations:

 

TEST

TEST

TEST

3.33

3.13

3.03

3.17

3.52

3.44

2.80

3.88

3.97

11/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Your Global Mindset Profile

Intellectual Capital

Psychological Capital

Social Capital

Your Score Group Mean (n=24) Grand Mean (n=34,416)

1 2 3 4 5 Not at all To a small extent To a moderate extent To a large extent To a very large extent

Note: The light gray bars below the Group Avg. and the Grand Mean indicate the range of min. and max. values for the Group and Grand Mean respectively.

TEST

TEST

TEST

3.24

3.28

3.26

3.21

3.58

3.86

3.10

3.51

3.48

12/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

Your Detailed Global Mindset Profile

Global Business Savvy

Quest for Adventure

Interpersonal Impact

Cosmopolitan Outlook

Self-Assurance

Intercultural Empathy

Passion for Diversity

Cognitive Complexity

Diplomacy

 

1 2 3 4 5 Not at all To a small extent To a moderate extent To a large extent To a very large extent

Note: The light gray bars below the Participant’s score indicate the range of min. and max. values for the Group

This chart is designed to show your nine dimensions of Global Mindset sorted from the highest to the lowest score based on your self-assessment. The dimensions are color coded. Dimensions of Intellectual Capital are shown in yellow boxes and borders. The three dimensions of Psychological Capital are displayed in blue boxes and borders. And dimensions of Social Capital are displayed in red boxes and borders.

A score of 4 or higher means that you believe you are good at that dimension, although there are still things you can do to improve. A score of 3 to 4 means that you are pretty good at that dimension but need to get better at it. A score of 3 and below means that it is urgent for you to think seriously about a plan to improve that particular dimension. Your success as a global leader requires serious attention to that dimension.

TEST

TEST

TEST

TEST

TEST

TEST

TEST

TEST

TEST

3.63

3.40

3.33

3.29

3.20

3.17

3.03

2.80

2.80

13/20© 2016 Thunderbird School of Global Management. All Rights Reserved.

 

QiuJiangyi

 

Jiangyi Qiu

The Group Profile of Global Mindset

Psychological Capital

Social Capital

Intellectual Capital

Group Mean (n=24) Grand Mean (n=34,416)

1 2 3 4 5 Not at all To a small extent To a moderate extent To a large extent To a very large extent

This chart shows the profile of your group’s Global Mindset and how it compares to our Grand Mean sample of global managers. It is sorted from the highest score to the lowest on the three categories of Intellectual Capital, Psychological Capital, and Social Capital.

TEST

TEST

TEST

3.58