FIN 320 SNHU Finance Principles Assessing a Company Future Financial Health Case Study

Overview

People should understand the impact of different types of risk on financial health, whether they’re dealing with personal or corporate finances. The risks involved with personal finance often only impact individuals and families—for example, when determining if you can afford to buy a house or deciding whether to invest in stocks. Financial risks for businesses often affect multiple people throughout the entire company, including individuals who do not work in the finance department. When businesses make finance-related decisions, it is essential that they know how their decisions will impact different aspects of their company.

Prompt

Read the Assessing a Company’s Future Financial Health case study, then write a response.

Specifically, you must address the following rubric criteria:

• Systematic and Unsystematic Risk: Explain the differences between systematic and unsystematic risk.
• Financial Risks: Describe the potential impacts of the following types of financial risk on the company featured in the case study:
  • Interest rate risk
  • Economic risk
  • Credit risk
  • Operational risk
• Lower Growth Impact: Explain the impact a lower growth in sales could have on the dividend policy and retained earnings for the company featured in the case study.
• Higher Growth Impact: Explain the impact a higher growth in sales could have on the dividend policy and retained earnings for the company featured in the case study.

Guidelines for Submission

Your submission should be a 2 to 3-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.

Module Four Case Study Rubric

CriteriaExemplary (100%)Proficient (85%)Needs Improvement (55%)Not Evident (0%)Value

Systematic and Unsystematic RiskExceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative mannerExplains the differences between systematic and unsystematic riskShows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail the differences between systematic and unsystematic riskDoes not attempt criterion20

Financial RisksExceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative mannerDescribes the potential impacts of interest rate risk, economic risk, credit risk, and operational risk on the company featured in the case studyShows progress toward proficiency, but with errors or omissions; areas for improvement may include describing in further detail the potential impacts of interest rate risk, economic risk, credit risk, and operational risk on the company featured in the case studyDoes not attempt criterion21

Lower Growth ImpactExceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative mannerExplains the impact a lower growth in sales could have on the dividend policy and retained earnings for the company featured in the case studyShows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail the impact a lower growth in sales could have on the dividend policy and retained earnings for the company featured in the case studyDoes not attempt criterion22

Higher Growth ImpactExceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative mannerExplains the impact a higher growth in sales could have on the dividend policy and retained earnings for the company featured in the case studyShows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail the impact a higher growth in sales could have on the dividend policy and retained earnings for the company featured in the case studyDoes not attempt criterion22

Articulation of ResponseExceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative mannerClearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purposeShows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readabilitySubmission has critical errors in grammar, sentence structure, and spelling, preventing understanding of ideas10

Citations and AttributionsUses citations for ideas requiring attribution, with few or no minor errorsUses citations for ideas requiring attribution, with consistent minor errorsUses citations for ideas requiring attribution, with major errorsDoes not use citations for ideas requiring attribution5

Total:100%