This Is A Team Project The Professor Gave Us

This Is A Team Projectthe Professor Of This Article Gave Us Suggestio

This is a team project, the professor of this article gave us suggestions for revision. I will attach the team project and my part, only need to modify my part. Professor's revised opinion: This has the potential to be an interesting paper. However, your paper is brief, and the bulk of it is based on paraphrasing and summarizing the small numbers of articles referenced. There is a lot of good work here but unless you cite your sources correctly, I have no alternative but to grade you at 0. You must cite your work. If it is not your own idea but something you have read, then you must cite it properly and include the citation in text plus in the references at the end. This paper should show clear evidence of your own analysis and evaluation of the subject and not just be a summary of your reading. In terms of your content, one of the requirements of the project is to relate your answer to the concepts we covered, and in this paper I see little evidence of that. For your final submission, try to ensure that you incorporate concepts covered in class. These could include TVM, corporate winners and losers, risk and return – as examples. As a guide for the final submission: if I think it is not properly cited, if sources are not correctly acknowledged then I will grade the entire project at 0.

Paper For Above instruction

Introduction:

The financial landscape is profoundly influenced by foundational concepts such as the Time Value of Money (TVM), risk and return dynamics, and corporate performance indicators like winners and losers. Understanding these concepts is vital for making informed investment decisions and evaluating company performance. This paper aims to critically analyze the relationship between these core financial principles and real-world corporate strategies, emphasizing the importance of proper citation and integration of scholarly sources to substantiate arguments.

The Importance of Proper Citations in Financial Analysis:

One of the primary criticisms of the initial manuscript was the lack of proper citation, which undermines the credibility of the work. In financial research, citing sources correctly ensures transparency and allows readers to verify data and interpretations. According to the American Psychological Association (APA) guidelines, in-text citations should include the author's last name and the publication year (APA, 2020). Proper reference formatting provides a comprehensive overview of the sources consulted, which is essential for academic integrity.

Relation of Core Concepts to Corporate Performance:

The concept of TVM asserts that money available now is worth more than the same amount in the future due to its potential earning capacity (Brealey, Myers, & Allen, 2019). This principle underpins investment appraisal methods such as Net Present Value (NPV) and Internal Rate of Return (IRR), which are critical in assessing a company's project viability. An effective corporate strategy considers TVM when allocating resources to maximize shareholder value.

Risk and return relationship is a fundamental concept, where higher potential returns are generally associated with higher risks (Markowitz, 1952). Companies that effectively manage risk—through diversification, hedging, or strategic planning—are often labeled as "winners" in their respective markets (Koller, Goedhart, & Wessels, 2015). Conversely, companies that neglect risk management may become "losers," facing financial instability or collapse.

Applying Concepts to Corporate Winners and Losers:

Successful companies leverage financial principles to sustain growth. For example, technology giants like Apple and Amazon utilize sophisticated risk management strategies aligned with their investment decisions grounded in TVM principles (Anderson & Reeb, 2003). Their ability to accurately assess the present value of future cash flows enables them to outperform competitors significantly.

In contrast, companies that neglect to incorporate these financial concepts often fall behind. For instance, some firms may overestimate future cash flows or underestimate risks, leading to overinvestment and financial distress. The collapse of Lehman Brothers exemplifies the failure to appropriately manage risk, leading to significant shareholder loss and bankruptcy (Sorkin, 2009).

Evaluation and Analysis:

Incorporating financial concepts such as TVM and risk assessment into strategic decision-making improves a company's capacity to generate sustainable profits. For instance, by applying discounted cash flow (DCF) analysis based on TVM, firms can determine the true value of investment opportunities, avoiding overvaluation or undervaluation (Damodaran, 2012). This analytical approach aids in identifying corporate winners—those that are able to accurately forecast and manage future cash flows while mitigating risks.

Furthermore, understanding the risk-return trade-off enables companies to optimize their capital structure and investment portfolio. Modern portfolio theory suggests diversification strategies that can isolate the firm's risk profile, allowing it to pursue higher returns without proportionally increasing risk (Markowitz, 1952). Such strategies are often adopted by market-leader firms to sustain competitive advantage.

Conclusion:

The integration of core financial concepts like TVM, risk, and return is fundamental to understanding corporate success and failure. Proper citation and acknowledgment of sources are essential for scholarly integrity and credibility. Companies that leverage these principles effectively tend to be "winners" by maximizing their value and managing risks adeptly. Conversely, neglecting these concepts often results in poorer performance or corporate failure. Therefore, for comprehensive financial analysis and decision-making, it is crucial to incorporate relevant theories and empirical evidence, properly cited, to enhance the robustness of findings and support strategic recommendations.

References

• Anderson, R. C., & Reeb, D. M. (2003). Founding-family ownership and firm performance: Evidence from the size and concentration of family ownership. Journal of Finance, 58(3), 1301–1328.
• Brealey, R. A., Myers, S. C., & Allen, F. (2019). Principles of corporate finance (12th ed.). McGraw-Hill Education.
• Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset (3rd ed.). John Wiley & Sons.
• Koller, T., Goedhart, M., & Wessels, D. (2015). Valuation: Measuring and managing the value of companies (6th ed.). Wiley Finance.
• Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77–91.
• Sorkin, A. R. (2009). Too big to fail. Penguin Press.
• APA Style. (2020). Publication manual of the American Psychological Association (7th ed.).
• Investopedia. (2021). Time value of money (TVM). https://www.investopedia.com/terms/t/timevalueofmoney.asp
• Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management (15th ed.). Cengage Learning.
• Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2019). Fundamentals of corporate finance (12th ed.). McGraw-Hill Education.