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Corporate Finance 571
Corporate Finance 571
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When a firm chooses to use a single discount rate to compute NPV in all its possible capital budgeting projects .That have wide range of non-diversifiable risks, it is bound to get riskier. This method has many drawbacks and the main harm it imposes is on diversified risks and projects lower risk it means the firm has to choose from inflation rate, interest rate or any desired rate of return (Baker, 2017). This means the projects shall have an internal rate of return that makes the net present value of all the cash flows from the project to be zero. Therefore when the IRR of the project is higher than the cost of capital the NPV of the project shall be positive whereas when it is lower than the cost of capital, the NPV of the project shall be negative (Parrino, 2015).
The firm may be selecting projects that have higher IRR than the single discount rate which are riskier. A single discount rate brings about negatives to a project with higher and undiversifiable risks on ta project that has a relative lower risks. This hides the risk of the projects that are seen to be risky and makes the project to appear less risky than the reality. Alternatively, it does the harm to the less risky projects since it shows them a more risky and less diversified than the actual Since they bring the risk of the other projects to be seen within the project that are less risky.
Therefore, the general risk profile of the firm with the project becomes less likely to depict in a transparent way and make the fir, to appear riskier to the investors as well as the associates (Parrino, 2015). Normally, when a firm wants to decide the rate to be used to discount its future cash flows, is it considers the risk associated with that project and the cost of financing. Therefore the discount rate should engross the risk factor.
In conclusion it would not be advisable for the firm to use one single discount rate in all types of projects.
References
Capital Budgeting Valuation: Financial Analysis for Today’s Investment Projects.” Capital
Budgeting Valuation: Financial Analysis for Today’s Investment Projects – Baker – Wiley Online Library. N.p., n.d. Web. 20 Feb. 2017.
Parrino, R. (2015). Corporate Finance. Singapore: John Wiley & Sons.
Continued SWOT Analysis of Big South Conference
Continued SWOT Analysis of Big South Conference
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Continued SWOT Analysis of Big South Conference
Demand Trends
Big South Conference operates within the sports industry where the demand for live attendance of matches is growing steadily. For instance, the number of people engaging in live match attendance in a single game in the Big South Conference men’s basketball tournament in 2019 was 2,772 (Archdiocese of Philadelphia Schools, 2014). In the women’s edition of this tournament, the live match attendance in a single game in 2018 was 4,610. The NCAA (2018) attests to these figures and confirm that statistically, all-time attendance for women tournaments has grown significantly from a total of 11,210,832 in 2012 to 11,495,642 in 2018. On the part of men, the total attendance has grown in similar trends.
With hundreds of thousands of fan increase in live attendance in 6 years, it is evident that the popularity of Big South Conference is growing, explaining why the association began sponsoring football events in 2002 and women lacrosse in 2013 (Big South Conference, 2019). Big South Conference is continuing its growing presence in NCAA athletic events due to many athletic accomplishments and excellence in the community, classroom, and the field. Based on these trends, Big South Conference needs to continue delivering an appealing and outstanding experience for fans to ensure that it continues to attract large attendance rates. Big South Conference can also augment attendance rates by making ticket purchasing more flexible, participating in building awareness, and leveraging marketing communications to reach new remote attendees. Lastly, Big South Conference can consider the importance of expanding its media partnerships towards enhancing the demand for its offerings in the American community.
Technology Trends
The sports industry has benefited momentously from new digital technologies and the associated advancements. Currently, Big South Conference leverages innovative media and marketing technologies to increase its television packages while expressing its commitment to using technological solutions to foster academic, athletic, and social development of student-athletes (Big South Conference, 2019). Media channels that broadcast different sporting events sponsored by Big South Conference help to spread information about the association fast, increasing its popularity among different populations. Social media such as Facebook and Twitter offer remarkable platforms that make it easier for athletes and fans to connect, which can enable Big South Conference to enhance fan contribution and zeal for sporting events. The availability of smartphones allows for easier, faster, and broader access to news and updates about sporting events for both athletes and fans.
Other technologies that influence Big South Conference and its sports offerings include the availability of ticket processing machines and online application platforms that allow sports attendees to purchase their tickets conveniently and with ease, thus improving their experience. Big South Conference can also take advantage of wearable technology, which includes implements such as fitness and activity trackers and smart watches, to facilitate exercises for athletes and augment its reputation. On the negative side, the availability of streaming sites and contemporary television sets can reduce attendance to sporting events sponsored by Big South Conference as fans may opt to stream live sporting events and watch them from home, Sell (2015) submits.
References
Archdiocese of Philadelphia Schools. (April 04, 2019). 2019 PCL basketball doubleheader among the most well-attended championship events nationally. Philadelphia, PA. Archdiocese of Philadelphia Schools. Retrieved February 16, 2020, from https://www.aopathletics.org/news/2019/3/28/boys-basketball-2019-pcl-basketball-doubleheader-among-the-most-well-attended-championship-events-nationally.aspx?path=xc.
Big South Conference. (2019). Big South Conference History. Charlotte, NC. Big South Conference. Retrieved February 16, 2020, fromhttp://bigsouthsports.com/sportfile.aspx?filename=ALL_0630161346&file_date=6/30/2016.
NCAA. (2018). NCAA women’s basketball attendance records through 2017-18. NCAA.
Sell, J. J. C. (2015). E-sports broadcasting (Doctoral dissertation, Massachusetts Institute of Technology).
Contingent workers are assuming a greater role in today’s organization
Question:
Contingent workers are assuming a greater role in today’s organization. With that as a background, discuss compensation and benefit issues associated with the following workers: part-time, temporary, independent workers, and flexible/telecommuting.
Solution:
In this competitive environment it is very essential to avoid the employee turnover, and focus on the retention of the employees. As any organization train and develop the employees according to their needs, and spend time, money and resources for their growth. The company provides the employees with good compensation packages and rewards for the same. The employee retention has become one of the prime issues in today’s time, as the competition has increased tremendously. Such a program provides a sense of belongingness in the employees and they are more eager to work for such an organization. Motivation is the key strategy of human resource department and the quality of life benefits provide them will extra perks to work for the benefit of the organization.Flextime provides the employees with flexible time of performing his duties; such a benefit helps him to deliver his full potential according to his own chosen time. Independence provides a sense of responsibility as well as freedom to express.And the telecommuting facility provides not only benefit to the employee but also to the employer as easy tracking of the employee can be done on records.
Reference:
HYPERLINK “https://www.google.co.in/search?hl=en&sa=X&noj=1&prmdo=1&biw=1366&bih=629&tbm=bks&tbm=bks&q=inauthor:%22Cascio%22&ei=VWfIT6rmEM-GrAeKm_ynDg&ved=0CEIQ9Ag”Cascio, 2010, Managing Human Resources.