Respond to the following in a minimum of 200 words:
An executive of a large steel company put the blame for lower net income for a recent fiscal period on the “shift in product mix to a higher proportion of export sales.” Sales for the period increased slightly while net income declined by a percent such as 25%.
Explain how a change in product (sales) mix to a higher proportion in export sales could result in a lower level of net income.


The estimates from the two valuation methods differ mainly because of the assumptions taken in the valuation. The dividend discount model discounts future dividend payments instead of free cash flows. Thus, the value of a stock today is the sum of the present value of its future dividends. Moreover, the company might not be distributing all of its cash flows as dividend which is the basis difference in the two methods. The assumptions used in the two models may pose a challenge because:

Dividend discount model

a) The presumption of a steady and perpetual growth rate less than the cost of capital may not be reasonable.

b) If the stock does not currently pay a dividend, like many growth stocks, more general versions of the discounted dividend model must be used to value the stock.

Discounted cash flow model

a) DCF is merely a mechanical valuation tool, which makes it subject to the principle “garbage in, garbage out”. Small changes in inputs can result in large changes in the value of a company. Instead of trying to project the cash flows to infinity, terminal value techniques are often used. A simple perpetuity is used to estimate the terminal value past 10 years, for example. This is done because it is harder to come to a realistic estimate of the cash flows as time goes on involves calculating the period of time likely to recoup the initial outlay

b) Another shortcoming is the fact that the Discounted Cash Flow Valuation should only be used as a method of intrinsic valuation for companies with predictable, though not necessarily stable, cash flows. The Discounted Cash Flow valuation method is widely used in valuing mature companies in stable industry sectors such as Utilities. At the same time, this method is often applied to valuation of high growth technology companies. In valuing young companies without much cash flow track record, the Discounted Cash Flow method may be applied a number of times to assess a number of possible future outcomes, such as the best, worst and mostly likely case scenarios.

The prepared estimates may differ from the actual stick price today, or any given day because of the assumptions we have taken under the respective methods:

Discounted Cash Flow

1. If cash flows are erratic and unpredictable this method isn’t appropriate.

2. Small changes in the risk-adjusted rate of return or future growth rates will change today’s value dramatically.

3. Investment returns depend on other investors buying your shares at a higher price and the company’s management not going nuts. They control the equity, you don’t. If you can’t find a buyer, you have no way of converting your shares into cash.

Dividend discount Model

1. Dividends must be predictable and sustainable. If dividend growth or payout ratios change dramatically, the DDM model will not work.

2. How dividends are reinvested are very important to cumulative returns, but are ignored by the model.

3. Dividends are taxed based on the year they are incurred. Capital appreciation is not taxed until it is realized as a capital gain.


Brigham, E. F., & Ehrhardt, M. C. (2017). Financial management: Theory & Practice, (15th ed.). Boston


With the dividend discount model, payments of future dividends are discounted; rather than that of a cash flow. This means that the present value of a certain stock is the total overall of the present value in regards to the future dividends. Also, the organization using this method will most likely not have all of the cash flows as dividends; which is the major difference in the two methods that are listed.

The discounted cash flow model has certain differences with the dividend discount model. Any minimal changes in the area of inputs will come out to make huge impacts in an organization’s value. This method is mostly used in organizations that have had high rates of growth. The discounted cash flow method would most likely be used to evaluate future outcomes for a business. This involves: the most likely, worst, and the best case scenarios with cash flows.

This method differs from the dividend discount method because cash flows can be not 100% accurate and settled. Meaning, they can fluctuate and increase, or decrease; causing unpredictability. Any small change in the return rate would impact the current value in a large manner. On the other hand, if the dividends on the dividend discount model are not sustainable, the model will not be able to be used effectively. These dividends would be taxed regarding the year they are sustained.

Discounted Cash Flow Analysis | Best Guide to DCF Valuation. (2019, January 14). Retrieved January 17, 2019, from https://www.wallstreetmojo.com/dcf-discounted-cash-flow/

Chen, J. (2018, December 13). Dividend Discount Model – DDM. Retrieved January 17, 2019, from https://www.investopedia.com/terms/d/ddm.asp


In a rising interest rate environment, bond values would change over time through many different ways. One way in which bond values would change involves the prices of the bonds themselves, when the interest rates decrease. In another manner, the prices of bonds would decrease when the interest rates increase. Inflation impacts the pricing of the bond because it directly affects its future cash flow. Due to the high risk of inflation, more and more investors would want a higher yield rate because of the associated risk.

Measures to manage risks include: shortening the time of maturity of the bonds to reduce any negative impact on the price of the bond. The longer the life-span of a bond, then there is an increase in the risk of interest rate that is associated with the bond. In order to maintain firm ground in the investment game, one must be wise in which bonds to invest. No one wants to lose money in investing on bonds that will cause more issues and losses than those that will be fruitful.

Investopedia. (2017, October 10). How Inflation And Interest Rates Affect Bonds. Retrieved January 19, 2019, from https://www.investopedia.com/walkthrough/corporate-finance/3/bonds/inflation-interest.aspx


Discussion 1

Using examples from your own current or past workplace, describe both appropriate and inappropriate practices specific to the age group you chose

Discussion 2

Read Vygodskaya’s 1995 article, “His Life,” from School Psychology International, volume 16, issue 2, pages 105–116. This article was written by Lev Vygotsky’s daughter and is a fascinating look at her father’s life and her childhood.

Share some of your thoughts about the Vygodskaya article. Do the parenting practices Vygotsky’s daughter shared seem reflective of his theoretical perspectives? Would you find these developmentally appropriate practices?

Discussion 3


Human behavior is complex, and what we do know about human behavior today is mostly because of the work of researchers since the psychology field became a science

For this assignment, locate a credible source of your own about a current or recent advancement in the treatment of a mental disorder. In 1–2 pages, explain what the treatment is and how it is believed to help people who have been diagnosed with the disorder (e.g., Alzheimer’s, post-traumatic stress disorder, ADHD, or schizophrenia).


 . Describe the response of the  white population and policy makers to the increased immigration of Chinese; to the Native Americans resistance to removal from their land; to African American’s quest for economic opportunity in the New South economy and competition with white small shop owners. Provide at least two (2) reasons why white politicians saw other minority groups as a threat and acted to limit their freedoms. Provide evidence by referencing the sources for your response.

.Describe the goals of three civil rights leaders, Booker T. Washington, W. E. B. Dubois, and Ida Wells on American civil rights for African Americans. Were they successful, why or why not, provide evidence by referencing the sources for your response?


Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas:

Part 1

Having experienced a robust debate discussion on the strengths, weaknesses, opportunities, threats, and trends (SWOTT) analysis and strategic planning for a particular fast-food franchise, it is time to shift gears a bit and consider the competition in the fast-food industry. Read this article to frame this week’s discussion. Complete the following:


  • Identify 1 or 2 other major competitors in the fast-food industry, and describe their sources of competitive advantage.
  • Discuss a current issue that this industry faces. It could be favorable or unfavorable to the industry.
  • Which of the major competitors has the strongest competitive advantage and ability to overcome the barriers presented by the current issues identified and why?

Part 2: Based on the first initial of your last name:

  • First initial M-Z: provide an argument ‘FOR’ the success of the fast-food franchise’s competitors. Submit your position by posting in the Unit 2 Debate forum, under the ‘FOR’ topic.
  • First initial A-L: provide an argument ‘AGAINST’ the ability of the competition to overtake fast-food franchise. Submit your position by posting in the Unit 2 Debate forum, under the ‘AGAINST’ topic.

In both considerations, provide research that supports your assertions