1 / 76

FIN 419 Greate Future / snaptutorial.com

<br>FIN 419 Week 1 Business Structure and Financial Statements<br> <br>FIN 419 Week 2 Time Value of Money Calculations<br> <br>FIN 419 Week 3 Cash Conversion Cycle Analysis (CVS Health) <br> <br>

Georgehalmen68
Download Presentation

FIN 419 Greate Future / snaptutorial.com

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FIN 419 Entire Course + Final Guide (New, 2019) For more classes visit www.snaptutorial.com FIN 419 Week 1 Business Structure and Financial Statements FIN 419 Week 2 Time Value of Money Calculations FIN 419 Week 3 Cash Conversion Cycle Analysis (CVS Health) FIN 419 Week 3 Cash Conversion Cycle Analysis (Samsung) FIN 419 Week 3 Cash Flow Estimation FIN 419 Week 4 Capital Budgeting Decision Models FIN 419 Week 4 Stock Valuation FIN 419 Signature Assignment Financial Statement Analysis and Firm Performance (Starbucks in Australia) FIN 419 Signature Assignment Financial Statement Analysis and Firm Performance (Healthy Eating Restaurant) FIN 419 Final Exam (New 2017) (Score 29/30)

  2. FIN 419 Week 1 Individual Assignment Limited Liability Corporation and Partnership Paper (2 Papers) FIN 419 Week 1 DQ 1 FIN 419 Week 1 DQ 2 FIN 419 Week 1 DQ 3 FIN 419 Week 1 DQ 4 FIN 419 Week 1 Individual Finance lab FIN 419 Week 2 Individual Assignment Financial Outcomes Paper FIN 419 Week 2 DQ 1 FIN 419 Week 2 DQ 2 FIN 419 Week 2 DQ 3 FIN 419 Week 2 DQ 4 FIN 419 Week 2 Individual Finance lab Problems FIN 419 Week 3 Learning Team Assignment Capital Valuation Paper FIN 419 Week 3 Team Assignment Working Capital Strategies Paper and Presentation FIN 419 Week 3 Individual Finance lab Problems FIN 419 Week 3 DQ 1

  3. FIN 419 Week 3 DQ 2 FIN 419 Week 4 Team Assignment Working Capital Strategies Paper FIN 419 Week 4 Team Assignment Capital Structure Paper FIN 419 Week 4 Individual Finance lab Problems FIN 419 Week 4 Team Assignment Problem Set (New) FIN 419 Week 4 DQ 1 FIN 419 Week 4 DQ 2 FIN 419 Week 4 DQ 3 FIN 419 Week 4 DQ 4 FIN 419 Week 5 Learning Team Assignment International Finance Paper (2 Papers) FIN 419 Week 5 DQ 1 FIN 419 Week 5 DQ 2 FIN 419 Week 5 DQ 3 FIN 419 Week 5 DQ 4 ****************************************** FIN 419 Final Exam (New 2019) (Score 29/30)

  4. For more classes visit www.snaptutorial.com FIN 419 FINAL EXAM NEW JUNE 2019 You want to invest in a stock that pays $6.00 annual cash dividends for the next five years. At the end of the five years you will sell the stock for $30.00. If you want to earn 10% on this investment what is a fair price for this stock if you buy it today? • $22.75 • $40.37 • $18.63 • $41.37 ________ provides financial advice helps design bond terms makes sure that new bonds meet listing requirements and then markets new bond issues. • An investment banker • The Federal Reserve • A stock broker • The Securities and Exchange Commission An investment of $100 today is worth $116.64 at the end of two years if it earns an annual interest rate of 8%. How much interest is earned in the first year and how much in the second year of this investment? • The interest earned in year one is $8.64 and the interest earned in year two is $8.00. • There is not enough information to solve this problem.

  5. • The interest earned in year one is $8.00 and the interest earned in year two is $8.64. • The interest earned in year one is $8.32 and the interest earned in year two is $8.32. The ________ is/are critical to business decisions business growth and ultimately business success. • currency denomination of profits • timing and amount of cash flow • risk and timing but not the amount of cash flow • risk and profits but not the amount of cash flow ________ is a financial term for “free money” that is the opportunity to make a profit without risk. • Free rider • Trading in perfect markets • Arbitrage • Trading in imperfect markets An aspect of short-term financial planning is forecasting operating cash flow and ultimately the profitability of the company in the coming period. This type of financial planning typically uses forecasted ________. • income statements • All of these • earnings • working capital statements Which of the following will result in a future value greater than $100? • PV = $50, r = an annual interest rate of 10%, and n = 8 years. • PV = $90, r = an annual interest rate of 14%, and n = 1 year. • All of the future values are greater than $100. • PV = $75, r = an annual interest rate of 12%, and n = 3 years. Which of the statements below is FALSE?

  6. • An equity claim is a claim to all the assets and cash flows of a company once debt claimants have been paid. • Bond ownership gives the right to participate in the management of the company. • For common stock, there is no maturity date and the promised cash flow is not stated on the asset, but is determined at a later date by the board of directors. • Like a bond, common stock entitles the owner to some of the cash flow of a company. Dweller, Inc. is considering a four-year project that has an initial after- tax outlay or after-tax cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000 and $30,000 for years 1, 2, 3 and 4, respectively. Dweller uses the net present value method and has a discount rate of 12%. Will Dweller accept the project? • Dweller rejects the project because the NPV is less than -$4,000. • Dweller accepts the project because the NPV is greater than $30,000. • Dweller rejects the project because the NPV is -$3,021. • Dweller accepts the project because it has a positive NPV of over $28,000. From the financial statements, we can look at specific performance areas of a company by selecting key pieces of information and analyzing this information ________. • All of these • at a point in time • at a point in time or over a specific time horizon • over a specific time horizon Which of the statements below is FALSE? • When cross rates are out of line, there can be an arbitrage opportunity. • The opportunity to make a profit without risk by exchanging three currencies is known as triple arbitrage. • Exchange rates vary from one day to the next.

  7. • Even if you could not do a direct exchange between pounds and yen, you could convert pounds to dollars and then dollars to yen and ultimately end up changing pounds into yen. When there are conflicts among managerial goals in U.S. markets, the most important priority is to ________. • increase the current market value of equity • keep all of the company’s customers happy • foster good relationships with the community • maintain a safe and happy work place A ________ has limited liability, is a legal entity, and has the greatest potential to raise capital. • corporation • limited partnership • sole proprietorship • general partnership Extending credit to a customer has three major components: • a policy on how customers will qualify for credit, a policy on the payment plan allowed creditors, and a policy on accounting for depreciation. • a policy on how customers will qualify for credit, a policy on paying commissions on sales, and a policy for collecting overdue bills. • a policy on how customers will qualify for credit, a policy on the payment plan allowed creditors, and a policy for collecting overdue bills. • a policy on how customers will qualify for credit, a policy on accounting for depreciation, and a policy on paying commissions on sales. Which of the following is NOT true regarding the total payment in an equal payment amortization table? • The total payment for any period is equal to the principal plus interest payments for that same period.

  8. • The final total payment will be greater than the beginning principal for the final period, assuming a positive interest rate. • The total payment is calculated using the present value of an annuity formula rearranged to solve for the payment. • All of the above are true. Which of the statements below is TRUE? • The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project. • An increase in working capital can be brought about by an increase in inventory. • Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases. • Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations. Which of the following is NOT a generally accepted way to remove ineffective management of a publicly traded firm? • Outside management teams can “take over” the company. • Each of the above are recognized methods for the removal of ineffective management. • The Board of Directors can vote to remove management. • The shareholders can vote out directors who won’t discipline managers. A major issue with venture capitalists and angel investors is the rate at which their funds will be used up. This is called the ________. • depreciation rate • IV rate • burn rate or bleed rate • consumption or constriction rate Which of the statements below is TRUE? • Investors want to minimize return and minimize risk.

  9. • Investors want to maximize return and maximize risk. • Investors want to minimize return and maximize risk. • Investors want to maximize return and minimize risk. Of the following, which is the most recent example of legislation passed by the federal government to deal with a major economic or highly visible corporate event? • The Federal Deposit Insurance Corporation Improvement Act • The Securities and Exchange Act • The Sarbanes-Oxley Act • The Securities Act of 1933 Which of the following statements is TRUE if you increase your monthly payment above the required loan payment? • The extra portion of the payment increases the principal. • You can significantly increase the number of payments needed to pay off the loan. • You can significantly reduce the number of payments needed to pay off the loan. • The extra portion of the payment does not go to the principal. In their first venture into the optimal capital structure question, Nobel laureates Franco Modigliani and Merton Miller began with a very simple model and a hypothetical world of ________. • no taxes and no bankruptcy • taxes but no bankruptcy • bankruptcy costs but no taxes • both taxes and bankruptcy The company offering a discount on accounts payable is trying to ________ and the firm that pays on time rather than taking a discount is attempting to ________. • speed up cash outflow; slow down cash inflow • speed up cash inflow; slow down cash outflow • speed up cash inflow; slow down cash inflow

  10. • speed up cash outflow; slow down cash outflow ________ refers to the way a company finances itself through some combination of loans, bond sales, preferred stock sales, common stock sales, and retention of earnings • Working capital management • NPV • Cost of capital • Capital structure There are four primary financial statements that are used to measure the performance of a firm. Which of the choices below are included among these four? • The income sheet and statement of retained earnings • The balance sheet and statement of cash flows • The balance statement and income statement • The statement of cash flows and statement of balance Acme Supply Co. has a new project that will require the company to borrow $3,000,000. Acme has made an agreement with three lenders for the needed financing. First National Bank will give $1,500,000 and wants 10% interest on the loan. Lockup Bank will give $1,000,000 and wants 12% interest on the loan. Southern National Bank will give $500,000 and wants 13% interest on the loan. What is the weighted average cost of capital for this $3,000,000? • 12.16% • 10.55% • 11.66% • 17% Which of the following statements is TRUE? • The current ratio is current assets divided by current liabilities. • Total asset turnover is net income divided by total assets. • The quick ratio equals current assets – current liabilities divided by current liabilities.

  11. • The cash coverage ratio equals cash divided by current liabilities. Which of the statements below is FALSE? • There are three basic defensive mechanisms that can guard against the extreme case of nationalized assets. These include keeping critical operations private, financing operations and assets with local money, and receiving primary inputs outside the local economy. • One way that a multinational firm can minimize the potential of nationalization of assets by a foreign government is to share key elements of operations with the government. • Political risk involves changes in a foreign government. At one extreme is the case in which a local government “takes over” the assets of the company and nationalizes it. • Political risk involves changes in a foreign government. An extreme example is the case in which a government encourages foreign investment and gives breaks to companies willing to move operations locally. The current indirect exchange rate is 12 pesos per dollar. The anticipated annual inflation rate is 6% in the United States and 14% in Mexico. If the cash inflow in pesos is 50,000 in one year, what are the 50,000 pesos worth in U.S. dollars after conversion from pesos to dollars using the forward exchange rate? • $3,874.27 • $3,882.13 • $3,480.78 • $3,983.78 • ________ is the area of finance concerned with activities such as repayment of borrowed funds through dividends or interest payments. • International finance • Capital budgeting • Corporate finance • Investments

  12. ****************************************** FIN 419 Final Exam Guide (New) For more classes visit www.snaptutorial.com 1) Risk and probability Micro-pub, Inc., is considering the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a10-year period, and each requires an initial investment of $4,000. Management has constructed the following table of elements of rates of return and possibilities for pessimistic, most likely, and optimistic results. 2) Capital asset princing model (CAPM) Use the capital asset princing model to find the required reurn. 3)a. What single investmentmade today, annual interest, will be worth $3,500 at the end of 10 years? b. What is the present value is $3,500 to be received at the end of 10 years if the discount rate is 6%? c. What is the most you would pay today for a promise to repay you $3,500 at the end of 10 years if your opportunity cost is 6% ? d. Compare, contrast, and discuss your findings in part a through c.

  13. 4) Loan Payment Determine the equal, annual, end-of-year payment required each year over the life of the loan to repay it fully during the stated term of the loan. 5) Loan amortization schedule Personal Finace Problem Joan Messineo borrowed $18,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments. 6) NPV Calculate the net present value (NPV) for a 30-year project with an initial investment of $ 0 and a cash inflow of $2,000 per year. Assume that the firm has an opportunity cost of 17%. Comment on the acceptability of the project. 7) Scenario Analysis Automated Food Distribution Corp. (AFDC) produces vending machines and places them in public buildings. The company has obtained permission to place one of its machine in a local library. The company makes two types of machines. One distributes soft drinks, and the other distributes snack foods. AFDC expects both machines to provide benefits over a 8-year period, and each has a required investment of $2,990. The firm uses a 9.8% cost of capital. Management has constructed the following table of estimates of annual cash inflows for pessimistic., most likely, and optimistic results. 8) Degree of operating leverage Grey Products has fixed operating costs of $382,000, varaiable operating costs of $15.61 per unit, and selling price of $62.91 per unit. 9) Finding operating and free cash flows consider the balance sheets and selected data from the income statement of Keith Corporation. 10) Pro forma balance sheet – Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31,2016. The firm expects 2016 sales to total $3,000,000.

  14. 11) Aggressive versus conservative seasonal funding strategy Dynabase Tool has forecast its total funding requirements for the coming year. 12) Initiating a cash discount Gardner company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 3% cash discount for payment within 15 days. The firm’s current average collection period is 60 days, sales are 40,000 units, selling price is $46 per unit, and visible cost per unit is $30. The firm expects that the change in credit terms will result in an increase in sales. 13) Degree of financial leverage North western Savings and Loan has a current capital structure consisting of $230,000 of 15% (annual interest) debt and 1,000 shares of common stock. The firm pays taxes at the rate of 30%. 14) Various Capital Structures Character Enterprises currently has $1.5 million in total assets and is totally equity financed. It is contemplating a change in its capital structure. Compute the amount of debt and equity that would be outstanding is the firm were to shift to each of the following debt ratios: 10%, 20%, 30%, 40%, 50%, 60%, and 90%. ****************************************** FIN 419 Final Exam Guide For more classes visit www.snaptutorial.com

  15. True/False (1point each) 1. The sole proprietor has unlimited liability; his or her total investment in the business, but not his or her personal assets, can be taken to satisfy creditors. 2. Time-value of money is based on the belief that a dollar that will be received at some future date is worth more than a dollar today. 3. Holders of equity have claims on both income and assets that are secondary to the claims of creditors. 4. The possibility that the issuer of a bond will not pay the contractual interest or principal payments as scheduled is called maturity risk. 5. The breakeven point in dollars can be computed by dividing the contribution margin into the fixed operating costs. Multiple-choice (1point each) 6. The ________ is the extent of an asset's risk. It is found by subtracting the pessimistic outcome from the optimistic outcome 7. ________ measure(s) the risk of a capital budgeting project by estimating the NPVs associated with the optimistic, most likely, and pessimistic cash flow estimates 8. If a firm uses an aggressive financing strategy, 9. The two major sources of short-term financing are 10. At the operating breakeven point, ________ equals zero. Problems (show your work) (1 Point)

  16. 11. Xiao Li wishes to accumulate $50,000 by the end of 10 years by making equal annual end-of-year deposits over the next 10 years. If Xiao Li can earn 5 percent on her investments, how much must she deposit at the end of each year? 12. Hayley makes annual end-of-year payments of $6,260.96 on a five- year loan with an 8 percent interest rate. The original principal amount was 13. Hewitt Packing Company has an issue of $1,000 par value bonds with a 14 percent annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently selling to yield a 12 percent rate of return. The current value of each Hewitt bond is ________. 14. Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent. Project A Project B Initial Investment $350,000 $425,000 Year Cash Inflows (CF) The NPVs of projects A and B are ________. ****************************************** FIN 419 Week 1 Apply Assessment For more classes visit

  17. www.snaptutorial.com FIN 419 Week 1 Apply Assessment ****************************************** FIN 419 Week 1 Discussion Cash Flow Statements For more classes visit www.snaptutorial.com FIN 419 Week 1 Discussion Cash Flow Statements Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to classmates or your faculty member. Due Thursday As people often say, “Cash is king!” Cash flow is an important indicator of a company’s financial health and a value driver. Effective cash flow management enables companies to have the most important resource on hand to meet daily needs, while preventing financial stress and potential failure. Respond to the following in a minimum of 175 words:  Locate financial statements for a company of your choice and review the cash flow statement.

  18.  What insights does the cash flow statement provide about the company’s performance, in relation toother financial statements? Cite your data source. Due Monday Post 2 replies to classmates or your faculty member. Be constructive and professional. ****************************************** FIN 419 Week 1 DQ 1 For more classes visit www.snaptutorial.com What is a sensitivity analysis? What is a scenario analysis? How would you apply each one to a potential investment opportunity? How would you use the information from this analysis? Explain. ****************************************** FIN 419 Week 1 DQ 2 For more classes visit

  19. www.snaptutorial.com What is a limited liability corporation? What is a limited liability partnership? What are the differences? What are the advantages and disadvantages of each? ****************************************** FIN 419 Week 1 DQ 3 For more classes visit www.snaptutorial.com Based on your assessment of risk using portfolio Management, what factors would you use to make different risk preferences? ****************************************** FIN 419 Week 1 DQ 4

  20. For more classes visit www.snaptutorial.com What are some risk management techniques? How would you use portfolio management to assess the risk and return of an investment? Predict how the results would be different based on different risk preferences? ****************************************** FIN 419 Week 1 Individual Assignment Limited Liability Corporation and Partnership Paper (2 Papers) For more classes visit www.snaptutorial.com This Tutorial contains 2 different Papers Individual Assignment: Limited Liability Corporation and Partnership Paper

  21. Individual Assignment: Limited Liability Corporation and Partnership Paper • Resources: Week One readings • Write a 700- to 1,050-word paper in which you explain roles of limited liability corporations and partnerships. If you were establishing your own business, under what circumstances would you choose one instead of the other? • Format your paper according to APA standards ****************************************** FIN 419 Week 1 Individual Assignment Richardses’ Tree Farm Grows Up Case Study For more classes visit www.snaptutorial.com Review the "Richardses' Tree Farm Grows Up - Mini Case" located in Chapter 1 of Financial Management: Core Concepts. Develop a 1,050-word analysis of the case study. Include the following: Analyze whether the major financial management decisions of the Richards family involve capital budgeting, capital structure, and working capital management. Explain whether the Richards family should form a regular corporation or choose one of the hybrid forms.

  22. Explain how incorporating will affect the Richards family's ability to transfer ownership to their children. Justify Jake's concerns with hiring professional management. Analyze whether incorporating will affect the Richards family's ability to give up a small amount of profit in exchange for protecting the environment. Evaluate how Jake might obtain more equity funding and perhaps create considerable wealth for the Richards family in the process. Include at least two sources to justify your assignment. Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ****************************************** FIN 419 Week 1 Individual Finance lab (New) For more classes visit www.snaptutorial.com This Tutorial contains excel sheet P 11-1 Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $3683 from Wendy, who will charge him 7% on the loan. He will also borrow $3165 from Bebe, who will charge him 9% on the loan, and $2152 from Shelly, who will charge him 15% on the loan. What is the weighted average cost of capital for Eric?

  23. P11-2 Question : Grey’s pharmaceuticals has a new project that will require funding of $13.0 million. The company has decided to pursue an all-debt scenario. Grey’s has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: P11-3 Question : Cost of debt. Kenny Enterorises has just issused a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.4% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you nitice about the price and the cost of debt? a. What is the cost of debt for Kenny Enterprises if the bond sells at $941.16? b. What is the cost of debt for Kenny Enterprises if the bond sells at $1,000.00? c. What is the cost of debt for Kenny Enterprises if the bond sells at $1,041.55? d. What is the cost of debt for Kenny Enterprises if the bond sells at $1,176.64? P11-7 COST of Preffered Stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value os $83 and a dividend rate of 10.4%. the stock for $59.45 in the market. What is the cost of preferred stock for Kyle?

  24. P 11-9 Stan is expanding his business and will sell common stock for the needed funds. If the current risk-free rate is 4.3% and the expected market rate is 10.8%, what is the cost of equity for Stan if the beta of the stock is a) What is the cost of equity for Stan if the beta of the stock is 0.62? b) What is the cost of equity for Stan if the beta of the stock is 0.86? c) What is the cost of equity for Stan if the beta of the stock is 1.09? d) What is the cost of equity for Stan if the beta of the stock is 1.35 ****************************************** FIN 419 Week 1 Individual Finance lab For more classes visit www.snaptutorial.com 1) Risk and probability Micro-pub, Inc., is considering the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a10-year period, and each requires an initial investment of $4,000. Management has constructed the following table of elements of rates of return and possibilities for pessimistic, most likely, and optimistic results. 2) Portfolio Analysis you have given the expected return data shown in the first table on three assets –F, G, and H – over the period 2016-2019.

  25. Using the assets, you have the isolated the three investment alternatives. 3) Capital asset princing model (CAPM) Use the capital asset princing model to find the required return. ****************************************** FIN 419 Week 2 Apply Assessment For more classes visit www.snaptutorial.com FIN 419 Week 2 Apply Assessment ****************************************** FIN 419 Week 2 Discussion Financial Statements For more classes visit www.snaptutorial.com

  26. FIN 419 Week 2 Discussion Financial Statements Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to classmates or your faculty member. Due Thursday The four key users of financial statements are owners/managers, lenders, investors, and governments. These users rely on financial statements to evaluate a company’s past financial performance as indicators in areas of profitability, liquidity, leverage, and efficiency; to create benchmarking matrixes; and to support future decision-making. Answer the following questions in a minimum of 175 words:  Choose two companies in the same industry whose financial statements are available online.  Complete several financial ratios for each company and compare them.  Share your analysis  What did your analysis tell you about these companies?  What sorts of decisions (such as buying stocks, considering accepting an employment offer, etc.) would this analysis help you make?  Cite your sources in APA format. Due Monday Post 2 replies to classmates or your faculty member. Be constructive and professional. ****************************************** FIN 419 Week 2 DQ 1 For more classes visit

  27. www.snaptutorial.com What are the three key inputs to the valuation model? How would you determine the valuation of an asset? How would the intrinsic value of assets differ from the market value? Explain. ****************************************** FIN 419 Week 2 DQ 2 For more classes visit www.snaptutorial.com What is a loan amortization schedule? How would you use it determine your loan interest rate? What factors would impact your choice between two loans? ****************************************** FIN 419 Week 2 DQ 3 For more classes visit

  28. www.snaptutorial.com What is the difference between present values and future values? How would you use present and future value techniques in preparing a financial plan for retirement? How would various required rates of return affect your decision? Explain. ****************************************** FIN 419 Week 2 DQ 4 For more classes visit www.snaptutorial.com How would the intrinsic value of assets differ from the market value? Explain. ****************************************** FIN 419 Week 2 Individual Assignment Financial Outcomes Paper

  29. For more classes visit www.snaptutorial.com Use the faculty-approved Fortune 500 organization and the financial initiative selected Week 1. Write a 1,400- to 1,750-word paper in which you compare and contrast three potential financial outcomes your Learning Team envisions for the initiative. Complete the following in your paper: Evaluate your findings to determine the most likely outcome. Include calculations that support your analysis of various financial outcomes and discuss the financial effect on the organization. Format your paper consistent with APA guidelines. Submit your assignment using the Assignment Files tab above. ****************************************** FIN 419 Week 2 Individual Finance lab Problems For more classes visit www.snaptutorial.com

  30. 1)a. What single investment made today, annual interest, will be worth $3,500 at the end of 10 years? b. What is the present value is $3,500 to be received at the end of 10 years if the discount rate is 6%? c. What is the most you would pay today for a promise to repay you $3,500 at the end of 10 years if your opportunity cost is 6% ? d. Compare, contrast, and discuss your findings in part a through c. 2) Loan Payment Determine the equal, annual, end-of-year payment required each year over the life of the loan to repay it fully during the stated term of the loan. 3) Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $18,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments. 4) NPV Calculate the net present value (NPV) for a 30-year project with an initial investment of $ 0 and a cash inflow of $2,000 per year. Assume that the firm has an opportunity cost of 17%. Comment on the acceptability of the project. 5) Scenario Analysis Automated Food Distribution Corp. (AFDC) produces vending machines and places them in public buildings. The company has obtained permission to place one of its machine in a local library. The company makes two types of machines. One distributes soft drinks, and the other distributes snack foods. AFDC expects both machines to provide benefits over a 8-year period, and each has a required investment of $2,990. The firm uses a 9.8% cost of capital. Management has constructed the following table of estimates of annual cash inflows for pessimistic., most likely, and optimistic results. ****************************************** FIN 419 Week 2 Individual My FinanceLab (NEW)

  31. For more classes visit www.snaptutorial.com This Tutorial comes with a excel sheet P3-1 Future Value. Fill in the future values for the following table using one of the three methods below: a. Use the future value formula, FV = PV*(1+r)n. b. Use the TVM keys from a calculor. c. Use the TVM function in a spreadsheet. P3 – 4 Future Value. Grand opening Bank is offering a one-time investment opportunity for its new customer. A customer opening a new checking account can buy a special saving bond for $ 400 today , Which the bank will compound at 8.5% for the next ten years. The savings bond must be held for at least five years, but can then be cashed in at end of any year starting with years five. What is the value of the bond at each cash-in date up through year ten ? What is the value of the savings bond at the end of year five ? a. What is the value of the savings bond at the end of year five ? b. What is the value of the savings bond at the end of year six? c. What is the value of the savings bond at the end of year seven? d. What is the value of the savings bond at the end of year eight? e. What is the value of the savings bond at the end of year nine? f. What is the value of the savings bond at the end of year ten? P 3– 8

  32. a. Use the present value formula, PV = FV*--- b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. P3-15 Future Value. YOU are a new employee with the metro daily planet. The planet offers three different retirement plans. Plans 1 starts the first day of work and puts $1,100 away in your retirement acc at the end of every year for 40 years. Plan 2 starts after 10 year and puts away $2,100 every year for year. Plan 3 starts after 20 year and puts away $4,100 every year for the last 20 year 0 employment. All tree plans guarantee an annual growth rate of 11%. a. Which plan should you choose if you plan to work at the Planet for 40 years ? b. Which plan should you choose if you plan to work at the Planet for only the next 30 years ? c. Which plan should you choose if you plan to work at the Planet for only the next 20 years ? d. Which plan should you choose if you plan to work at the Planet for only the next 10 years ? e. What do the answers in parts (a) through (d) imply about savings ? P4-5 Future Value. YOU are a new employee with the metro daily planet. The planet offers three different retirement plans. Plans 1 starts the first day of work and puts $1,100 away in your retirement acc at the end of every year for 40 years. Plan 2 starts after 10 year and puts away $2,100 every year for year. Plan 3 starts after 20 year and puts away $4,100 every year for the last 20 year 0 employment. All tree plans guarantee an annual growth rate of 11%. a. Which plan should you choose if you plan to work at the Planet for 40 years ?

  33. b. Which plan should you choose if you plan to work at the Planet for only the next 30 years ? c. Which plan should you choose if you plan to work at the Planet for only the next 20 years ? d. Which plan should you choose if you plan to work at the Planet for only the next 10 years ? e. What do the answers in parts (a) through (d) imply about savings ******************************************? FIN 419 Week 2 Practice Time Value of Money For more classes visit www.snaptutorial.com FIN 419 Week 2 Practice Time Value of Money ****************************************** FIN 419 Week 2 Team Assignment Evaluating Financial Statements (2 Papers) For more classes visit

  34. www.snaptutorial.com This Tutorial contains 2 Papers Research two companies' financial statements from one of the following industries: Airline Automotive Pharmaceutical Oil/gas Retail Computer Hardware Analyze table 14.8 in Financial Management: Core Concepts, Ch. 14: "Financial Ratios: Industry Averages." Prepare the following ratios for the two sets of financial statements in Microsoft® Excel®: Price to Earnings Gross Margin Profit Margin Current Ratio Debt to Equity Return on Assets Return on Equity Compare your completed ratios to the industry average chart. Evaluate in 175 words which company, of the two you have researched, is doing better. Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ****************************************** FIN 419 Week 2 Team Problem Set

  35. For more classes visit www.snaptutorial.com Complete the following problem sets in Financial Management using Microsoft® Excel®: Chapter 2: 1, 2, 3, 4 Chapter 5: 1, 3, 5, 7 Chapter 5: Advanced Problems 1a and 1b Chapter 14: 9, 10, 11, 12 Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. Chapter 2: Problem 1 1. Balance sheet. From the following balance sheet accounts, a. construct a balance sheet for 2013 and 2014. b. list all the working capital accounts. c. find the net working capital for the years ending 2013 and 2014. d. calculate the change in net working capital for the year 2014. Chapter 2: Problem 2 2. Income statement. From the following income statement accounts, a. produce the income statement for the year b. produce the operating cash flow for the year Chapter 2: Problem 3 3. Balance sheet. From the following balance sheet accounts, a. construct a balance sheet for 2013 and 2014

  36. b. list all the working capital accounts c. find the net working capital for the years ending 2013 and 2014 d. calculate the change in net working capital for the year 2014 Chapter 2: Problem 4 4. Income statement. From the following income statement accounts, a. produce the income statement for the year Chapter 5: Problem 3 3. EAR. What is the EAR of a mortgage that is advertised at 7.75% (APR) over the next twenty years and paid with monthly payments? Chapter 5: Problem 5 5. Present value with periodic rates. Let’s follow up with Sam Hinds, the dentist, and his remodeling project (Chapter 4, Problem 12). The cost of the equipment for the project is $18,000, and he will finance the purchase with a 7.5% loan over six years. Originally, the loan called for annual payments. Redo the payments based on quarterly payments (four per year) and monthly payments (twelve per year). Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow each year? Original Problem from Chapter 4, Problem 12 to go with Chapter 5 Problem 5: 12. Payments. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $18,000. A-Dec will finance the equipment purchase at 7.5% over a six-year period. What will Hinds have to pay in annual payments for this equipment? Chapter 5: Problem 7 7. Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $15.00 every month from his paper route collections. Matt is eight years old and will use the money when he goes to college in ten years. What will be the value of Matt’s account in ten

  37. years with his monthly payments if he is earning 6% (APR), 8% (APR), or 12% (APR)? Chapter 5: Advanced Problem 1a & 1b 1. Monthly amortization schedule. Sherry and Sam want to purchase a condo at the coast. They will spend $650,000 on the condo and are taking out a loan for the whole amount for the condo for twenty years at 7.0% interest. a. What is the monthly payment on the mortgage? Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost, the principal reduction, and the ending balance each month. b. Then change the amortization to reflect that after ten years, Sherry and Sam will increase their monthly payment to $7,500 per month. When will they fully repay the mortgage with this increased payment if they apply all the extra dollars above the original payment to the principal? Chapter 14: Problems 9, 10, 11 & 12 listed below: 9. Financial ratios: Liquidity. Calculate the current ratio, quick ratio, and cash ratio for Tyler Toys for 2013 and 2014. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? 10. Financial ratios: Financial leverage. Calculate the debt ratio, times interest earned ratio, and cash coverage ratio for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? 11. Financial ratios: Asset management. Calculate the inventory turnover, days’ sales in inventory, receivables turnover, days’ sales in receivables, and total asset turnover for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? 12. Financial ratios: Profitability. Calculate the profit margin, return on assets, and return on equity for 2013 and 2014 for Tyler Toys. Should

  38. any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? ****************************************** FIN 419 Week 3 Apply Assessment For more classes visit www.snaptutorial.com FIN 419 Week 3 Apply Assessment ****************************************** FIN 419 Week 3 Discussion Management Strategy For more classes visit www.snaptutorial.com FIN 419 Week 3 Discussion Management Strategy

  39. Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to classmates or your faculty member. Due Thursday n with cash surpluses. Respond to the following in a minimum of 175 words:  Discuss a management strategy used to retain or increase cash.  Share an example of a time when you’ve used a similar strategy in your personal finances.  How are the applications of these strategies similar or different for businesses and individuals? Due Monday Post 2 replies to classmates or your faculty member. Be constructive and professional. ****************************************** FIN 419 Week 3 DQ 1 For more classes visit www.snaptutorial.com What is zero working capital? How would you define zero working capital? When would this methodology be used? Would this model be applicable to all organizations? Explain.

  40. ****************************************** FIN 419 Week 3 DQ 2 For more classes visit www.snaptutorial.com What is an asset? What is a liability? What is the difference between assets and liabilities? Can an organization operate without current liabilities? Explain. ****************************************** FIN 419 Week 3 Individual Assignment Biocom, Inc. Case Study For more classes visit www.snaptutorial.com

  41. Read the "Mini-Case Biocom, Inc.: Part 2, Evaluating a New Product Line" from the end of Chapter 10 of Financial Management: Core Concepts. Complete questions 1-7 in Microsoft® Excel. Evaluate the following in a 350-word response: Explain what depreciation, cash flow, operating cash flow and NPV are and how they interact with business decisions. Explain why these financial concepts are important for you as an employee, owner, or investor. Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ****************************************** FIN 419 Week 3 Individual Finance lab Problems For more classes visit www.snaptutorial.com 1) Finding operating and free cash flows consider the balance sheets and selected data from the income statement of Keith Corporation. 2) Pro forma balance sheet – Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2016. The firm expects 2016 sales to total $3,000,000. 3) Aggressive versus conservative seasonal funding strategy Dynacare Tool has forecast its total funding requirements for the coming year.

  42. 4) Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 3% cash discount for payment within 15 days. The firm’s current average collection period is 60 days, sales are 40,000 units, selling price is $46 per unit, and visible cost per unit is $30. The firm expects that the change in credit terms will result in an increase in sales. 5) Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories have an age of 94 days, an accounts receivable are collected in 65 days. Accounts payable are paid approximately 30 days after they arise. The firm has annual sales of about $31 million. Cost of goods sold is $22 million, and purchases are $13 million. ****************************************** FIN 419 Week 3 Individual My Finance Lab (NEW) For more classes visit www.snaptutorial.com This Tutorial contains excel sheet P10-4 (similar to)

  43. Opportunity cost. Richardses' Tree Farm, Inc. has branched into gardening over the years and is now considering adding patio furniture to its product lineup. Currently, the area where the patio furniture is to be displayed is a vacant slab of concrete attached to the indoor shop. The company originally paid $8000 to put in the slab of concrete three years ago. It would now cost $13000 to put in the same slab of concrete. Should the company consider the concrete slab when expanding its outdoor garden shop to include patio furniture? If yes, which value should it use?Should the company consider the concrete slab when expanding its outdoor garden shop to include patio furniture? If yes, which value should it use? (Select the best response.) A. No. The slab is a sunk cost unless there is another use for the slab that could provide cash flow to Richardses' Tree Farm. The additional cash flow that the slab could provide is the opportunity cost, not the current replacement cost or the original cost. B. Yes, use $13 comma 000 as the cost. C. Yes, use $8 comma 000 as the cost. P10-5

  44. Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.007 each. The monthly sales for the first four months of the coming year are as follows: What is the monthly increase or decrease in cash flow for inventory given that an increase is a use of cash and a decrease is a source of cash? Note: Enter a decrease as a negative number. What is the change in working capital for January? What is the change in working capital for February? What is the change in working capital for March? P13-3 (similar to) Average production cycle. Use the following account information to find the average production cycle for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company Cash sales $463,000 Credit sales $573,000 Total sales $1,036,000 Cost of goods sold $607,205 What is the average production cycle for Rian Company? P13-4 (similar to) Average production cycle. Use the following account information for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 12/31/14 12/31/13 Change Accounts receivable $42,912 $52,041 $9,129 Inventory $62,011 $66,087 $4,076 Accounts payable $29,433 $27,645 $1,788

  45. 2014 Selected Income Statement Items for Rian Company Cash sales $576000 Credit sales $500000 Total sales Cost of goods sold $554736 For the coming year, Rian Company wants to reduce its average production cycle to 39.5 days. If the target-ending inventory for 2015 is $68267, what cost of goods sold will the company need to reach its goal? P13-5 (similar to) Average collection cycle. Use the following account information to find the average collection cycle for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 2014 Selected Income Statement Items for Rian Company P 13-6 Average collection cycle. Use the following account information for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 2014 Selected Income Statement Items for Rian Company Cash sales Credit sales

  46. Total sales Cost of goods sold Rian Company had set a target of 23.2 days for the collection cycle for 2014. If total sales had remained at $ 965000, how much of the sales revenue would have needed to be cash sales for the company to have met the collection goal? P13-7 (similar to) Average accounts payable cycle. Use the following account information to calculate Rian Company's average accounts payable cycle. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 2014 Selected Income Statement Items for Rian Company Cash sales $539000 Credit sales $664000 Total sales $1203000 Cost of goods sold $632489 P13-8 (similar to)

  47. Average accounts payable cycle. Use the following account information for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company Rian Company had set a target of 16.6 days for its payment (accounts payable) cycle. What would the ending balance in the accounts payable account for 2014 have needed to be to reach this target (holding all other accounts the same)? ****************************************** FIN 419 Week 3 Learning Team Assignment Capital Valuation Paper For more classes visit www.snaptutorial.com Learning Team Assignment Capital Valuation Paper • Resource: Financial Outcomes Paper • Write a 1,050- to 1,750-word paper in which you justify the current market price of the organization’s debt, if any, and equity, using various capital valuation models.• Show calculations that support your findings, including those involving rates of return. • Defend which valuation model best supports your findings. • Format your paper according to APA standards.

  48. ****************************************** FIN 419 Week 3 Practice Operating Cycle and Cash Cycle with Cash Budget Exercise For more classes visit www.snaptutorial.com FIN 419 Week 3 Practice Operating Cycle and Cash Cycle with Cash Budget Exercise ****************************************** FIN 419 Week 3 Team Assignment Working Capital Strategies Paper and Presentation For more classes visit www.snaptutorial.com

  49. Resource: Financial Outcomes Paper from Week 2 Review your organization's most recent financial reports, including balance sheets, statements of cash flow, management comments, and footnotes to financial statements. Write a 1,400- to 2,100-word paper that addresses senior management in which you do the following: • Assume next year's forecasted revenues increase by 20%. • Explain how each current asset and liability account has affected cash management strategies. • Provide a detailed working capital recommendation based on next year's increase in revenue along with assumptions you make regarding other line items in the pro forma financial statements. • Support your recommendations with financial analysis to show how they maximize shareholder wealth. • Calculate and discuss the effect of the revenue increase on the firm's working capital policy. • Identify lessons learned and discuss areas for further development in your conclusion. Format your paper consistent with APA guidelines. Create a 5- to 8-slide Microsoft® PowerPoint® presentation for the organization's senior management with an executive summary of your Working Capital Strategies paper. Submit your assignment using the Assignment Files tab above. ****************************************** FIN 419 Week 4 Apply Assessment For more classes visit

  50. www.snaptutorial.com FIN 419 Week 4 Apply Assignment Peter Johnson, the CEO of Homer Industries, Inc. is trying to determine the Weighted Cost of Capital (WACC), based on two different capital structures under consideration to fund a new project. Assume the company's tax rate is 30% Debt Scenario 1=$5,000,000.00 Scenario 2=2,000,000.00 Cost of Capital= 8% Tax Rate=30% Preferred Stock Scenario1=1,200,000.00 Scenario 2=2,200,000.00 Cost of Capital 10% Common Stock Scenario1=1,800,000.00 Scenario 2=3,800,000.00 Cost of Capital 13% Total Scenario 1$8,000,000.00 Scenario 2 $800,000.00 1a.Complete the table below to determine the WWAC for each of the two capital structure scenarios. (Enter your answer as a whole percentage rounded to 2 decimal places what is the Debit, Preferred Stock, Common Stock, Total of Scenario1 & 2 weight % Scenario 1&2 weighted cost with the cost of capital being 8% for debt preferred stock 10% common stock 13% tax rate 30% 1-b. Which capital structure shall Mr. Johnson choose to fund the new project? Scenario 1 or 2? ****************************************** FIN 419 Week 4 Discussion Criteria and Techniques

More Related