ADM 3352 Lecture Notes - Lecture 10: Mortgage Insurance, Reverse Mortgage, Origination Fee
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Please answer the below questions.I only have 1 hours beforesubmit.Please!
Questions
1. Should the Federal Government question an educationalinstitution on its recruiting practices?
2. Should the Federal Government also question State and PrivateUniversity’s retention practices?
3. Shouldn’t these companies be able to operate as a business-that is- making money the aggressive way?
4. Who are the stakeholders in this situation?
What is the ethical dilemma and duty in this matter
For Profit for Education? Putting Profits over PublicGood? Contd...
For-profit colleges in the US came under increased scrutiny onseveral counts. This case study describes the problems faced by“for-profit colleges” in the US such as high loandefault rates, vague accreditation standards, and low graduationand job placement rates. Complaints such as overpriced degrees,misleading claims, and increasing level of student debt resulted inthe government turning its attention to the entire for-profitcollege sector. According to some reports, too much taxpayer moneywas being used to generate profits for the colleges, instead ofproviding students with useful high-quality education. The casealso focuses on the alleged fraudulent practices adopted byfor-profit colleges in the US to gain access to more federalfinancial aid. The Study Concerned about the disproportionate percentage of federalstudent aid flowing to “for-profit colleges”, someanalysts began raising questions about the rapid growth of thefor-profit education sector, the aggressive recruitment ofstudents, and the value of the education provided by suchinstitutions. |
To the contrary, the evidence points to a problem that issystemic to the for-profit industry,"9 said Tom Harkin(Harkin), Chairman, US Senate Health, Education, Labor, andPensions (HELP) Committee.
The GAO defined for-profit colleges as "institutions ofpost-secondary education that are either privately owned or ownedby a public traded company and whose net earnings can benefit ashareholder or individual."...
In May 2010, the GAO began its investigation of 15 for-profitschools in six states (Arizona, California, Florida, Illinois,Pennsylvania, and Texas and Washington, D.C (Refer to Exhibit IIIfor a list of the schools probed)...
High Tuition Fee
The report stated that the tuition fee at for-profit colleges washigh compared to similar programs at other public colleges.Investigators found that on an average, the fee for an associatedegree program was between 6 and 13 times higher at a for-profitschool than at a public college while a bachelor's degree at afor-profit college cost almost twice that in local publicinstitutions...
Deceptive Recruitment and Marketing Tactics
According to the report, campus officials of all 15 colleges misledpotential students and made deceptive statements about theirprograms' cost, quality, and duration, and the average salary ofgraduates (Refer to Exhibit V for some examples of deceptivepractices of for-profit institutions) For-profit colleges generallypaid recruiters by the number of enrollments that theygenerated...
Loan Defaults
For-profit colleges, which accounted for 10% of all collegestudents in the US as of 2009, derived three-fourth of theirrevenues from federal grants and loans. In 2009, at 14 for-profitschools, federal aid totaled 87% of revenue in 2009...
Evaluate the financial performance of Coca-Cola; (KO) and Pepsi (PEP) for the year ended December 31, 2016. Follow the instructions below to access each company’s information and perform a financial analysis based on the financial measures we have learned in this course.
Select Http://www.yahoo.com/ and then select Finance. In the Search section at the top of the screen select KO for Coca-Cola and PEP for Pepsi
Select “Financials” and select Income Statement when accessing the Income Statement
Select “Financials” and select Balance Sheet when accessing the Balance Sheet
Do the following for KO and PEP for the year ended 12/31/16 only
Perform a vertical analysis of the Income Statement for KO and PEP for the year ended 12/31/16.
Include in your vertical analysis all of following as a % of total revenue:
Cost of Revenue as a % of Total Revenue
Gross Profit as a % of Total Revenue
Selling, gen and administrative expenses as a % of Total Revenue
Operating Income as a % of Total Revenue
Net Income as a % of Total Revenue
Current Ratio
Accounts Receivable turnover. Assume the total revenue on the income statement represents all sales on account for the year
Average collection period
Merchandise Inventory turnover. Assume the Cost of Revenue on the Income Statement is the same as the Cost of Goods Sold
Debt to Asset Ratio
Return on Assets Ratio
Asset Turnover
In preparing the vertical analysis and other financial analysis above; define each measure and identify the strengths and weaknesses of KO and PEP as related to each other. Below is an example of you should set it up.
Working Capital | KO | PEP |
Current Assets | $ 34,010,000 | $ 27,089,000 |
- Current Liabilities | $ 26,532,000 | $ 21,135,000 |
Net Working Capital = | $ 7,478,000 | $ 5,954,000 |
Strength or Weakness
Working Capital measures the ability of a company to meet its short-term obligations with current assets. Pepsi is and Coke are performing at about the same level. Cokes working capital is a little higher because they have higher current assets and current liabilities.
Requirements for Each Group
1.The vertical analysis prepared in 4 A above.
2.All of your computations for the financial analysis. (4 B through 4 H)
3.Identification of strengths and weaknesses. (Include a definition of each financial measure, a description of which company is doing better in each financial measure including the vertical analysis and explain why)
4.All group members must submit the Report Project Team Assessment
5.If the requirements above are not met, points will be deducted from Parts of the group projects.
Enter all requirements on the Group Project Problem 4 Tab.
Submit one set of answers per group for all four problems. Make sure to include each group members name at the top of each spreadsheet.
Each group member should download the Group Team Assessment and evaluate themselves and everyone else in their group. This evaluation should be submitted anonymously.