Business Finance Homework Help

***IMPORTANT*** PLEASE, IF YOU CAN’T DO
THE REQUIRED RESEARCH IN MASTER DEGREE LEVEL LANGUAGE, SIMPLY DO NOT
ACCEPT THIS ASSIGNMENT. I WOULD RATHER PAY SOMEONE TO DO IT RIGHT THE
FIRST TIME. IF YOU DO NOT UNDERSTAND SOMETHING SIMPLY ASK ME.

I need 2 peer responses to the following discussions, include APA style citations to prove your point.

QUESTION 1 AND ANSWER FROM PEER #1:

QUESTION: Regression analysis is a tool for building statistical models that characterize relationships among a dependent variable [sales, for example] and one or more independent variables [price, for example]. Find real world data, perhaps from a company’s annual report or from government sources, then use Excel to develop a simple or multiple regression analysis with a dependent and an independent variable. Describe, explain, discuss, and comment on the regression’s predictive, strategic value.

ANSWER: I did a regression’s prediction on Apple. I used Apple (AAPL) revenue as the independent and gross profit as the dependent variable. Without revenue the company wouldn’t be able to save money and invest it in other projects or pay their shareholders, dividends. I did a chart on Apple revenue vs. their gross profit. When their revenue went up it affected gross profit. Gross profit is dependent on revenue, without positive revenue the company wouldn’t be able to survive. Apple linear line is going in the right direction. Apple has a great strategy, but I think they will fail soon because their technology is not as advance as it was a few years ago. It seems like technology is catching apple, instead of Apple staying ahead of technology. Their revenue is still growing but they need to invent something that can put them back on top. Attached is the spreadsheet.

QUESTION #2 AND ANSWER FROM PEER #2:

QUESTION: Managerial decision-making is forward-looking and predictive. Predictive power suggests certain results. Whether building a stock model intended to predict stock price or a business decision model, economic models are more an art than a science. Provide examples of different Excel-type models used by companies to make economic-type decisions.

ANSWER: After conducting my research and finishing my reading I would say there are so many ways and models that can be used in Excel type models to assist companies in making economic-type decisions. Where to start would be the first question I would ask myself. We know that companies just don’t make decisions on what they think will happen without any additional information. If they did, I believe, they would not be in business very long. Some, and especially me, would say that a company’s success would rely on its ability to predict and make very educated economic decisions.

Some of these Excel type models may be as easy as formulating a budget from required work or workers. “The constraints of a budget influence nearly all economic decisions, since the sum of the expenditures should never exceed the availability of capital.” (Ingram, n.d.) There are several Excel type models out there that will assist businesses in making this happen. Let’s face it, if a company is spending more money than it makes, that company will not be around for long unless it is just part of the transition phase into a larger type business. Yes, that would be part of an expansion or a way of maximizing their profit at a later date. We have all heard the phrase, “you have to spend money to make money.” This may just be a part of the larger model that shows the turn around in the future for this business.

One thing that might turn a business around or be part of the future project would be the release of a new product within the business. New product profitability would just be another possible Excel type model that would assist a business in making the correct economic decision. These types of models show what a new product may do once introduced into the marketplace. We all know that a company really doesn’t know exactly what will happen but these models assist them in making the best decision they can.

There are so many to talk about but I will end with one I think all companies would have. The cost for delays or failures. We know also that everything doesn’t always go as planned and “Murphy” is always around, projecting things like this will assist companies in making the correct economic decisions about proceeding with the way they conduct business on a day-to-day operation. It was best said in Investopedia, “Even if you don’t build your own company models, you should seriously consider building your own valuation models.” (Simpson, 2016) Having items that allow you to make the best economic decisions for your company is better than not having anything at all. It’s like making all the decisions yourself without doing any research. To me, that is like representing yourself in court with knowing how to do it.