assessment 3_2
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Financial Engineering to Enhance Shareholder Value
student Institution MBA-FPX5014 Robert Watson 03/07/24
1. Overall Current Financial Condition of ABC Healthcare Corporation:
•
The current financial situation at ABC Healthcare Corporation as embraced from both Assessment 1 and Assessment 2 reflects a difficult scenario
•
Regardless of operational efficiency, positive cash flow, and stable market value, assessment 2 highlights challenges in net income growth and debt management.
2. An Overview Of My Analysis:
•
The analyses in both Financial Condition Analysis and Evaluation of Capital Projects employ a combination of financial ratios, financial statements, and industry comparisons
•
Evaluation of Capital Projects supports more on capital budgeting tools, such as Profitability Index, Payback Period, IRR, and NPV, to assess the possibility of three capital projects
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An overview of my analysis:
•
The analysis of financial ratios provide an understanding of the market perception and the financial health of ABC Healthcare Corporation
3. Linking Data to Evidence-Based Financial Decisions:
a) The recommendation to invest in Project C as portrayed by Evaluation of Capital Projects stems from positive metrics across capital budgeting tools.
b) Linking Data to Evidence-Based Financial Decisions:
b) The call for long-term strategies and short-term campaigns is backed by insights from price/earnings ratios and price-to-book and, highlights the need for innovation, partnerships, debt reduction, cost savings, debt restructuring, and operational efficiency.
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4. Recommendations for Newly Adopted Strategies:
•
To get the best out of stakeholder value, recommendations emphasize strategies that align with the corporation's financial situation. •
These situations include enhancement of operational efficiency, innovation, partnerships, and debt reduction, as suggested in Financial Condition Analysis.
5.Translating Strategies to Tactical Objectives:
•
Transforming strategies into tactical goals encompasses actionable steps.
Translating Strategies to Tactical Objectives
•
Tactical aims include incorporating short-term campaigns and long-term strategies.
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6. Financial Tools for Monitoring Progress:
•
Diverse tools will be reliable in gauging the success of project C: Continuous tracking of Profitability Index, Payback Period, IRR, and NPV.
•
In Financial Condition Analysis, monitoring tools involve continuing study of price/earnings ratios and price-to-book.
REFERENCES
•
Andjelic, S., & Vesic, T. (2017). The importance of financial analysis for business decision-making. In Book of proceedings from Sixth International Scientific Conference Employment, Education and Entrepreneurship (pp. 9-25). •
Booth, L., Cleary, W. S., & Rakita, I. (2020). Introduction to corporate finance. John Wiley & Sons. https://books.google.co.ke/books?hl=en&lr=&id=EXLLDwAAQBAJ&oi=fnd&pg=PA1&dq=introduction+to+finance+&ots=iLx
pkCLOcl&sig=9u9zgIzQXgVyTyWGpgCuXjBKyY0&redir_esc=y#v=onepage&q=introduction%20to%20finance&f=false
•
Mayo, H. B. (2018). Basic finance: an introduction to financial institutions, investments, and management. Cengage Learning. https://books.google.co.ke/books?hl=en&lr=&id=h9VUEAAAQBAJ&oi=fnd&pg=PP1&dq=introduction+to+finance+&ots=XLk
hfzUzts&sig=LqBzf_AqjIH2k2ss-Gg-7QnWN_M&redir_esc=y#v=onepage&q=introduction%20to%20finance&f=false
•
McCosker, P. (2021). Interpretation of Financial Statements. In Financial and Managerial
•
Aspects in Human Resource Management: A Practical Guide (pp. 23-37). Emerald Publishing Limited. Retrieved from:
https://www.emerald.com/insight/content/doi/10.1108/978-1-83909-612-920211004
•
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2022). Fundamentals of corporate finance. https://thuvienso.hoasen.edu.vn/bitstream/handle/123456789/12640/Contents.pdf?sequence=1
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