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Assignment Steps <br>Resources: Yahoo Finance<br>Select a Fortune 500 Company from one of the following industries:<br>u2022 Pharmaceutical<br>u2022 Energy<br>u2022 Retail<br>u2022 Automotive<br>u2022 Computer Hardware<br>
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FIN 571 Assignment Select Fortune 500 Company For more classes visit www.snaptutorial.com Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one of the following industries: · Pharmaceutical · Energy · Retail · Automotive · Computer Hardware · Manufacturing · Mining Access Yahoo Finance and enter the company name. Review the financial information and statistics provided for the stock you selected and answer the following: · What is the ticker symbol of the company you chose? · What is the Current Stock Price? · What is the Market Cap for the stock you chose? · What is the Price to Earnings Ratio? · What is the Dividend and Yield? · What is the Enterprise Value? · What is the Beta? · Was there a Stock Split, and if so, when? · What was the closing stock price for the last 5 days? · What was the 52 Week High for this stock?
· What is the Book Value per Share? · What type of rating are analysts recommending (i.e. buy, hold, etc.)? · What is the target price analysts are predicting for this stock? · What is the analyst's average revenue estimate for next year? · What are some of the significant news items and press releases made by the company over the last year? Explain in 700 words why you would or would not recommend investing in this stock. · Describe the relationship between the value of the stock and the price to earnings ratio. · What information does the Market Capitalization (Market Cap) and Beta provide to the investor? ******************************************** FIN 571 Entire Course+ Final Guide For more classes visit www.snaptutorial.com FIN 571 Week 1 Financial Ratio Analysis (Walmart) FIN 571 Week 1 Financial Ratio Analysis (General Motors) FIN 571 Week 2 Stock Valuation and Analysis (Apple)
FIN 571 Week 2 Stock Valuation and Analysis (Amazon) FIN 571 Week 2 Stock Valuation and Analysis (Target) FIN 571 Week 2 Stock Valuation and Analysis (Walmart) FIN 571 Week 2 Stock Valuation and Analysis (Ford) FIN 571 Week 3 Using the Payback Method, IRR, and NPV FIN 571 Week 4 Assignment Rate of Return for Stocks and Bonds (2 Papers) FIN 571 Week 3 Researching Industry Financial Statistics FIN 571 Week 6 Signature Assignment Short Term Funding (2 PPT) FIN 571 Week 5 Assignment Capital Market Efficiency Paper (2 Papers) FIN 571 Week 5 Assignment Effect of Debt Issuance on Stock Valuation
FIN 571 Final Exam Guide (New, 2017) ******************************************** FIN 571 Final Exam Guide (New, 2019) For more classes visit www.snaptutorial.com Question 1 The underlying assumption of the dividend growth model is that a stock is worth: A. An amount computed as the next annual dividend divided by the required rate of return. B. An amount computed as the next annual dividend divided by the market rate of return. C. The same amount computed as any other stock that pays the same current dividend and has the same required rate of return. D. The present value of the future income that the stock is expected to generate. E. The same amount to every investor regardless of their desired rate of return.
• Question 2 You plan to invest $6,500 for three years at 4 percent simple interest. What will your investment be worth at the end of the three years? A. $6,941.11 B. $7,280.00 C. $7,311.62 D. $6,760.00 E. $7,250.00 • Question 3 A firm has a debt-equity ratio of.64, a pre tax cost of debt of 8.5 percent, and a required return on assets of 12.6 percent, What is the cost of equity if you ignore taxes ? A. 16.38% B. 8.55% C. 15.22% D. 11.22% E. 8.06% • Question 4 What is the present value of $6,811 to be received in one year if the discount rate is 6.5 percent ? A. $6,395.31 B. $7,253.72 C. $6,023.58 D. $6,643.29 E. $6,671.13 • Question 5 Under the____________ method, the underwriter buys the securities for less than the offering price and accepts the risk of not selling the issue, while under the _________ method, the underwriter does not purchase the shares but merely acts as an agent. A. Best efforts; firm commitment B. Seasoned; unseasoned C. Firm commitment; best efforts D. Negotiated offer; competitive offer E. Competitive offer; negotiated offer
Question 6 All else held constant, interest rate risk will increase when the time to maturity: A. Increase or the coupon rate increases. B. Increase or the coupon rate decreases. C. Decrease and the coupon rate equals zero. D. Decrease or the coupon rate increases. E. Decrease or the coupon rate decreases. Question 7 The process of planning and managing a firm’s long-term assets is called: A. Agency cost analysis. B. Working capital management. C. Financial depreciation. D. Capital structure. E. Capital budgeting. Question 8 An efficient capital market is one in which: A. Securities always offer a positive NPV. B. Taxes are irrelevant. C. All investments earn the market rate of return. D. Brokerage commissions are zero. E. Security prices reflect all available information. Question 9 Which one of these statements is correct concerning the cash cycle? A. Increasing the accounts payable period increases all cash cycle. B. A positive cash cycle is preferable to a negative cash cycle. C. The cash cycle can exceed the operating cycle if the payables period is equal to zero. D. The longer the cash cycle, the more likely a firm will need external financing.
E. A dopting a more liberal accounts receivable policy will tend to decrease the cash cycle. Question 10 The costs of avoiding a bankruptcy filing by a financially distressed firm are classified as _______ costs. A. Direct bankruptcy B. Financial solvency C. Flotation D. Indirect bankruptcy E. Capital structure Question 11 Which one of the following is an example of a nondiversifiable risk? A. A well-respected president of a firm suddenly resigns B. A well-respected chairman of the Federal Reserve Bank suddenly resigns C. A poorly managed firm suddenly goes out of business due to lack of sales D. A key employee suddenly resigns and accepts employment with a key competitor E. A well-managed firm reduces its work force and automates several jobs Question 12 One disadvantage of the corporate form of business ownership is the: A. Limited liability protection provided for all owners. B. Unlimited life of the firm. C. Difficulties encountered when changing ownership. D. Double taxation of profits. E. Firms ability to raise cash. Question 13 Which one of the following statements about preferred stock is true?
A. There is no significant difference in the voting rights granted to preferred and common shareholders. B. If preferred dividends are non-cumulative, then preferred dividends not paid in a particular year will be carried forward to the next year. C. Preferred stock usually has a stated liquidating value of $100 per share. D. Unlike dividends paid on common stock. Dividends paid on preferred stock are a tax-deductible expenses. E. Dividends on preferred stock payable during the next twelve months are considered to be a corporate liability. Question 14 Book value : A. Is adjusted to market value whenever the market value exceeds the stated book value. B. Is based on historical cost. C. Is equivalent to market value for firms with fixed assets. D. Generally tends to exceed market value when fixed assets are included. E. Is more of a financial than an accounting valuation. Question 15 The primary goal of financial management is to: A. Avoid financial distress. B. Maintain steady growth sales and net earnings. C. Maximize the current value per share of the existing stock. D. Minimize operational costs and maximize firm efficiency. E. Maximize current dividends per share of the existing stock. Question 16 Which term defines the tax rate that applies to the next dollar of taxable income earned ? A. Deductible B. Total C. Marginal D. Residual E. Average
Question 17 Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity payment made on the date of purchase. What is the value of the annuity on the purchase date given a discount rate of 7 percent ? A. $56,191.91 B. $52,970.07 C. 54,282.98 D. $66,916.21 E. 56,677.98 Question 18 The cash flow resulting from a firm’s ongoing, normal business activities is referred to as the: A. Net capital spending. B. Cash flow to investors. C. Additions to net working capital. D. Operating cash flow. E. Cash flow to retained earnings. Question 19 The market price of a bond increases when the: A. Par value decreases. B. Coupon rate decreases. C. Discount rate decreases. D. Face value decreases. E. Coupon is paid annually rather than semiannually Question 20 The excess return you earn by moving from a relatively risk-free investment to a risky investment is called : A. Arithmetic average return. B. Geometric average return. C. Time premium. D. Risk premium. E. Inflation premium. Question 21 A firn has a total debt ratio of . 47. This means the firn has 47 cents in debt for every:
A. $ 1 in fixed assets. B. $ 53 in total equity. C. $ 1 in total equity. D. $ 1 in current assets. E. $ 53 in total assets. Question 22 A ll else equal, the contribution must increase as: A. Both the sales price and variable cost per unit increase. B. The variable cost per unit declines. C. The fixed cost per unit declines. D. Sales price per unit declines. E. The sales price minus the fixed per unit increases. Question 23 A project has an initial cost of $2,250.The cash inflows are $0,$500,$900,and $700 for years 1 to 4, respectively. What is the payback period ? A. 3.92 years B. 2.84 years C. Never D. 2.97 years E. 3.98 years Question 24 Ratios that measure a firm’s ability to pay its bills over the short run without undue stress are known as: A. Liquidity measures. B. Asset management ratios. C. Long-term solvency measures. D. Profitability ratios. E. Market value ratios. Question 25 The discount rate that makes the net present value of an investment exactly equal to zero is called the: A. Profitability index. B. External rate of return. C. Averages accounting return.
D. Equalizer. E. Internal rate of return. Question 26 An interest rate that is compounded monthly, but is expressed as if the rate were compounded annually, is called the________ rate. A. Compound interest B. Stated interest C. Effective annual D. Periodic interest E. Daily interest Question 27 Which one of the following statements is false? A. If sales are seasonal, the percentages shown on an aging schedule will vary during the year. B. Aging schedules are used to monitor accounts receivable. C. An aging schedule includes only overdue accounts D. Investments in accounts equal average daily sales times average collection period. E. Collection efforts may involve legal action. Question 28 Which one of these is a correct definition ? A. Long-term debt is defined as a residual claim on a firm’s assets. B. Current assets are assets with short lives, such as inventory, C. Tangible assets are fixed assets such as patents. D. Current liabilities are debts that must be repaid in 18 months or less. E. Net working capital equals current assets plus current liabilities. Question 29 Futures contracts contrast with forward contracts by: A. Allowing the seller to deliver any day during the delivery month. B. Requiring contract fulfilment by the two originating parties. C. Providing an option for the buyer rather than an obligation. D. Marking to the market on a weekly basis. E. Allowing the parties to negotiate the contract size.
Question 30 The higher the inventory turnover, the: A. Lesser the amount of inventory held by a firm. B. Higher the inventory as a percentage of total assets. C. Less time inventory items remain on the shelf. D. Greater the inventory of inventory help by a firm. E. Longer it takes firm to sell its inventory. ******************************************** FIN 571 Week 1 DQ 1 For more classes visit www.snaptutorial.com What is ethics? If you follow all applicable rules and regulations, are you an ethical person? ******************************************** FIN 571 Week 1 DQ 2 For more classes visit www.snaptutorial.com
Assume that interest rates have increased substantially. Would this tend to increase or decrease the market value (meaning the price an investor in the firm's paper is willing to pay) of a firm’s liabilities (relative to the book value of liabilities)? This question is referring to a firm's liability such as a bond or debenture that has been issued in the markets. What happens to the price an investor who is looking to purchase that bond or debenture is willing to pay if the market interest rate increases above the rate that the bond or debenture pays. ******************************************** FIN 571 Week 1 Financial Ratio Analysis (Apple) For more classes visit www.snaptutorial.com Purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions. Assignment Steps Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Review the balance sheet and income statement in the company's 2015 Annual Report. Calculate the following ratios using Microsoft® Excel®: Current Ratio Quick Ratio Debt Equity Ratio Inventory Turnover Ratio Receivables Turnover Ratio Total Assets Turnover Ratio Profit Margin (Net Margin) Ratio Return on Assets Ratio Analyze in 1,050 words why each ratio is important for financial decision making. Submit your analysis as well as your calculations. Click the Assignment Files tab to submit your assignment.
******************************************** FIN 571 Week 1 Financial Ratio Analysis (General Motors) For more classes visit www.snaptutorial.com Purpose of Assignment The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions. Assignment Steps Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Review the balance sheet and income statement in the company's 2015 Annual Report. Calculate the following ratios using Microsoft® Excel®:
Current Ratio Quick Ratio Debt Equity Ratio Inventory Turnover Ratio Receivables Turnover Ratio Total Assets Turnover Ratio Profit Margin (Net Margin) Ratio Return on Assets Ratio Analyze in 1,050 words why each ratio is important for financial decision making. Submit your analysis as well as your calculations. Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 1 Financial Ratio Analysis (Pfizer) For more classes visit www.snaptutorial.com Purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions. Assignment Steps Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Review the balance sheet and income statement in the company's 2015 Annual Report. Calculate the following ratios using Microsoft® Excel®: Current Ratio Quick Ratio Debt Equity Ratio Inventory Turnover Ratio Receivables Turnover Ratio Total Assets Turnover Ratio Profit Margin (Net Margin) Ratio Return on Assets Ratio Analyze in 1,050 words why each ratio is important for financial decision making. Submit your analysis as well as your calculations. Click the Assignment Files tab to submit your assignment.
******************************************** FIN 571 Week 1 Financial Ratio Analysis (Walmart) For more classes visit www.snaptutorial.com Purpose of Assignment The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions. Assignment Steps Select a Fortune 500 Company from one of the following industries: • Pharmaceutical • Energy • Retail • Automotive • Computer Hardware
Review the balance sheet and income statement in the company's 2015 Annual Report. Calculate the following ratios using Microsoft® Excel®: • Current Ratio • Quick Ratio • Debt Equity Ratio • Inventory Turnover Ratio • Receivables Turnover Ratio • Total Assets Turnover Ratio • Profit Margin (Net Margin) Ratio • Return on Assets Ratio Analyze in 1,050 words why each ratio is important for financial decision making. Submit your analysis as well as your calculations. Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 1 Individual Assignment Business Structures
For more classes visit www.snaptutorial.com Watch the "Your Business Structure" and "Corporate Business Structures" videos on the Electronics Reserve Readings page. Identify the different business structures. Write a 350 to 700 word explanation of how each business structure might and might not be advantageous. Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 2 DQ 1 For more classes visit www.snaptutorial.com In order to receive proper credit, please reply to this message when posting your answers to WK2 DQ1.
Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless? You own $1 million worth of 90-day Treasury bills. You “roll over” this investment every 90 days by reinvesting the proceeds in another issue of 90-day Treasury bills. Is this investment riskless? Can you think of an asset that is truly riskless? ******************************************** FIN 571 Week 2 DQ 2 For more classes visit www.snaptutorial.com Suppose rf is 5% and rM is 10%. According to the SML and the CAPM, an asset with a beta of −2.0 has a required return of negative5% [= 5 − 2(10 − 5)]. Can this be possible? Does this mean that the asset has negative risk? Why would anyone ever invest in an asset that has an expected and required return that is negative? Explain ********************************************
FIN 571 Week 2 Individual Assignment Business Structure Advice For more classes visit www.snaptutorial.com Write a 350 to 700 word response to the following e-mail: Dear Consultant, I am currently starting a business and developing my business plan. I'm in need of some advice on how to start forming my business. I am not sure exactly how it will be financed and whether or not I want to take on partners. I am interested and willing to learn the intricacies of my options to determine how to best proceed with my plan. Please advise on what my options are, the advantages and disadvantages of each, and possible tax consequences for each scenario? Respectfully, John Owner Click the Assignment Files tab to submit your assignment. ********************************************
FIN 571 Week 2 Individual Assignment Ethics and Finance For more classes visit www.snaptutorial.com The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the Enron scandal and other instances of accounting fraud. This act was passed to strengthen the role of the Securities and Exchange Commission (SEC). Research a case of corporate financial abuse related to the Sarbanes- Oxley Act of 2002 and apply this to your current work or desired place of employment. Create a 1,400-word analysis of the application of SOX in which you include the following: Discuss the mistakes made by the company and their leadership. Discuss the steps leadership could have taken to prevent or mitigate the repercussions. Explain the role of market pressures on unethical behavior. Examine the influence of the basics of finance and how the Sarbanes-Oxley Act of 2002 changed things. Evaluate the influence of Sarbanes-Oxley Act on ethical behavior. Are businesses more ethical since the enactment? Explain the changes companies needed to make in how they use and present financial statements.
Discuss how SOX has affected your current place of employment if at all, and if not, how it has affected others in the same industry. Cite a minimum of 2 scholarly sources. Format your paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 2 Individual Assignment Ratio Analysis Problems For more classes visit www.snaptutorial.com Ratio Analysis Problems Ratio Analysis (Individual Assignment) You may use excel or word.doc format for this assignment. Please post your homework as a word.doc or excel file in the class discussion section below by the due date. 1. Analysis of cost of goods sold problem.
1992 1993 1994 Gross Profit Margin 60% 55% 51% What is happening to cost of goods sold? As was done in the week 2 online lecture on ratio analysis, please assume sales of 1 dollar each year as you do your analysis. This problem follows the process shown in the Week 2 Ratio Analysis online lecture section titled: "Another Income Statement Analytical Approach: Percent of Sales" (5 points) 2. Overhead (or Sales, General and Administrative Expense) problem. 1992 1993 1994 Gross Profit Margin 40% 39% 41% Operating Margin (NOI/Sales) 15% 10% 5% What is happening to S,G and A (or overhead expenses)? Please set up an illustration assuming sales of 1.00 dollar each year just as you did in problem number one. (5 points) 3. Balance Sheet Problem 1992 1993 1994 Annual Sales Growth (over prior yr) + 1% 0% +1%
Current Ratio 3.5X 2X 1.2X Average Collection Period 25 days 30 days 55 days What is happening to liquidity? Why? What are some follow-up questions your would ask? (5 points) 4. Using the data provided below, which is the better managed company? Why? Please support your answers by calculating appropriate ratios. (5 points) Company A Company B Sales 10 million dollars 20 million dollars Net Income 1 million dollars 2 million dollars Total Assets 10 million dollars 15 million dollars Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 2 Stock Valuation and Analysis (Amazon) For more classes visit www.snaptutorial.com
Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Manufacturing Mining Access Yahoo Finance and enter the company name. Review the financial information and statistics provided for the stock you selected and answer the following: What is the ticker symbol of the company you chose? What is the Current Stock Price? What is the Market Cap for the stock you chose? What is the Price to Earnings Ratio? What is the Dividend and Yield? What is the Enterprise Value? What is the Beta?
Was there a Stock Split, and if so, when? What was the closing stock price for the last 5 days? What was the 52 Week High for this stock? What is the Book Value per Share? What type of rating are analysts recommending (i.e. buy, hold, etc.)? What is the target price analysts are predicting for this stock? What is the analyst's average revenue estimate for next year? What are some of the significant news items and press releases made by the company over the last year? Explain in 700 words why you would or would not recommend investing in this stock. Describe the relationship between the value of the stock and the price to earnings ratio. What information does the Market Capitalization (Market Cap) and Beta provide to the investor? Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 2 Stock Valuation and Analysis (Ford) For more classes visit
www.snaptutorial.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Manufacturing Mining Access Yahoo Finance and enter the company name. Review the financial information and statistics provided for the stock you selected and answer the following: What is the ticker symbol of the company you chose? What is the Current Stock Price? What is the Market Cap for the stock you chose? What is the Price to Earnings Ratio? What is the Dividend and Yield?
What is the Enterprise Value? What is the Beta? Was there a Stock Split, and if so, when? What was the closing stock price for the last 5 days? What was the 52 Week High for this stock? What is the Book Value per Share? What type of rating are analysts recommending (i.e. buy, hold, etc.)? What is the target price analysts are predicting for this stock? What is the analyst's average revenue estimate for next year? What are some of the significant news items and press releases made by the company over the last year? Explain in 700 words why you would or would not recommend investing in this stock. Describe the relationship between the value of the stock and the price to earnings ratio. What information does the Market Capitalization (Market Cap) and Beta provide to the investor? Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 2 Stock Valuation and Analysis (Target) For more classes visit
www.snaptutorial.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Manufacturing Mining Access Yahoo Finance and enter the company name. Review the financial information and statistics provided for the stock you selected and answer the following: What is the ticker symbol of the company you chose? What is the Current Stock Price? What is the Market Cap for the stock you chose? What is the Price to Earnings Ratio? What is the Dividend and Yield?
What is the Enterprise Value? What is the Beta? Was there a Stock Split, and if so, when? What was the closing stock price for the last 5 days? What was the 52 Week High for this stock? What is the Book Value per Share? What type of rating are analysts recommending (i.e. buy, hold, etc.)? What is the target price analysts are predicting for this stock? What is the analyst's average revenue estimate for next year? What are some of the significant news items and press releases made by the company over the last year? Explain in 700 words why you would or would not recommend investing in this stock. Describe the relationship between the value of the stock and the price to earnings ratio. What information does the Market Capitalization (Market Cap) and Beta provide to the investor? Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 2 Stock Valuation and Analysis (Tesla) For more classes visit
www.snaptutorial.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Manufacturing Mining Access Yahoo Finance and enter the company name. Review the financial information and statistics provided for the stock you selected and answer the following: What is the ticker symbol of the company you chose? What is the Current Stock Price? What is the Market Cap for the stock you chose? What is the Price to Earnings Ratio? What is the Dividend and Yield? What is the Enterprise Value? What is the Beta? Was there a Stock Split, and if so, when? What was the closing stock price for the last 5 days? What was the 52 Week High for this stock? What is the Book Value per Share?
What type of rating are analysts recommending (i.e. buy, hold, etc.)? What is the target price analysts are predicting for this stock? What is the analyst's average revenue estimate for next year? What are some of the significant news items and press releases made by the company over the last year? Explain in 700 words why you would or would not recommend investing in this stock. Describe the relationship between the value of the stock and the price to earnings ratio. What information does the Market Capitalization (Market Cap) and Beta provide to the investor? Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 2 Stock Valuation and Analysis (Walmart) For more classes visit www.snaptutorial.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst
reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Manufacturing Mining Access Yahoo Finance and enter the company name. Review the financial information and statistics provided for the stock you selected and answer the following: What is the ticker symbol of the company you chose? What is the Current Stock Price? What is the Market Cap for the stock you chose? What is the Price to Earnings Ratio? What is the Dividend and Yield? What is the Enterprise Value? What is the Beta? Was there a Stock Split, and if so, when? What was the closing stock price for the last 5 days? What was the 52 Week High for this stock? What is the Book Value per Share? What type of rating are analysts recommending (i.e. buy, hold, etc.)? What is the target price analysts are predicting for this stock?
What is the analyst's average revenue estimate for next year? What are some of the significant news items and press releases made by the company over the last year? Explain in 700 words why you would or would not recommend investing in this stock. Describe the relationship between the value of the stock and the price to earnings ratio. What information does the Market Capitalization (Market Cap) and Beta provide to the investor? Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 3 DQ 1 For more classes visit www.snaptutorial.com Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons. ********************************************
FIN 571 Week 3 DQ 2 For more classes visit www.snaptutorial.com Optical Supply Company offers credit terms of 2/10, net 60. If Optical Supply is considering a change in its credit terms to one of those indicated, explain whether the change should increase or decrease sales. (a) 2/10, net 30, (b) net 60, (c) 3/15, net 60, (d) 2/10, net 30, 30 extra ******************************************** FIN 571 Week 3 Individual Assignment Interpreting Financial Results For more classes visit www.snaptutorial.com
Resource: Financial Statements for the company assigned by your instructor in Week 2. Review the assigned company's financial statements from the past three years. Calculate the financial ratios for the assigned company's financial statements, and then interpret those results against company historical data as well as industry benchmarks: Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011). Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company. Write a 500 to 750 word summary of your analysis. Show financial calculations where appropriate. Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 3 Researching Industry Financial Statistics For more classes visit
www.snaptutorial.com Purpose of Assignment The purpose of this assignment is to allow the students an opportunity to complete their financial evaluation of a company using the financial research database Plunkett Research Online. Plunkett Research Online provides in-depth analysis of a company's financials, comparisons to industry averages, a list of top executives, how the company compares to other competitors in terms of revenue, number of employees, market capitalization and other key financial metrics. Assignment Steps Resources: Plunket Research Online located in the Week 3 Electronic Reserve Readings; Microsoft® Excel® Access the the Plunkett Research database in the University Library by following these steps: 1. Click on the University Library link. 2. Click "Company Directories and Financials" under Library Resources. 3. Click "Plunkett Research Online" under Company Directory and Financials. 4. Review the following "HOW TO USE" videos: o Plunkett Research Online Overview o How to Export Company and Exec. Lists o How to Build-a-Report o How to Use Industry Analytics o How to Research an Industry o How to Use Company Profiles 5. Click "Research A Company." 6. Select a company (i.e. Walmart) and input into the Search Box. 7. Scroll through the search results to choose the correct company. 8. Click the link to the company profile (in blue).
Review the Company Profile and answer the following questions in Microsoft® Word: • What is the Ticker Symbol for the company you have selected? • When was the company established? • How many employees does it have? • What is the NAICS Code? • Who is the CEO? • Where does the company rank in terms of Total Revenue when compared to its competitors? • Where does the company rank in terms of Net Income when compared to its competitors? • Where does the company rank in terms of Return on Assets when compared to its competitors? • What is the Revenue in 2014 and 2015? • What was the Gross Margin in 2014 and 2015? • What was the Earnings per Share in 2014 and 2015? Save the Company Profile as a PDF document. Compare the 2015 Company Financials to the Industry Averages and export the results into a Microsoft® Excel® document. Add a new column in your Microsoft® Excel® document titled "Change" and calculate the difference between the company's 2015 financial results and the industry averages. Explain in 1,050 words how the company you selected compares to the industry averages in terms of financial profitability, liquidity and solvency, and why the difference is important. Also review the financial statements over the last three years, and discuss any positive and negative trends would you report to the company's management. Submit the calculations as well as the explanation. Click the Assignment Files tab to submit your assignment. Note: Grades are awarded based upon individual contributions to the Learning Team assignment. Each Learning Team member receives a grade based upon his/her contributions to the team assignment. Not all students may receive the same grade for the team assignment. ********************************************
FIN 571 Week 3 Team Assignment Financial Statement Interpretation For more classes visit www.snaptutorial.com Select three publicly traded companies. Choose one each from the following sectors: manufacturing, service, and retail. At least one of the three companies should be foreign. If possible, choose from among the team members' places of business or similar industries. Calculate the following: Current ratio Quick ratio Net profit margin Asset utilization Financial leverage Analyze the Return on Equity (ROE) for the last 2 years using the DuPont method. Develop a 2,100-word comparison of your three companies in which you include the following: Discuss the differences in the industries Discuss the different measurement conventions and how this affects presentations.
Contrast IASB basis for accounting (IFRS) and FASB/GAAP accounting. Compare the three companies and their strategies for managing their working capital. Discuss the financial ratios and analyses and what they indicate about the companies and their financial forecast. Incorporate the calculated ratios and analysis into the paper. Include the financial statements for the 3 companies as an appendix to the paper. Cite at least 3 scholarly sources. Format the paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 3 Using the Payback Method, IRR, and NPV For more classes visit www.snaptutorial.com
The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods. Assignment Steps Resources: Corporate Finance Create a 350-word memo to management including the following: · Describe the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows. · Describe the advantages and disadvantages of each method. Calculate the following time value of money problems: 1. If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%? 2. What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%? 3. What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years? 4. If your company purchases an annuity that will pay $50,000/year for 10 years at a 11% discount rate, what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase? 5. What is the rate of return required to accumulate $400,000 if you invest $10,000 per year for 20 years. Assume all payments are made at the end of the period. Calculate the project cash flow generated for Project A and Project B using the NPV method. · Which project would you select, and why? · Which project would you select under the payback method? The discount rate is 10% for both projects. · Use Microsoft®Excel®to prepare your answer. · Note that a similar problem is in the textbook in Section 5.1. Sample Template for Project A and Project B: Show all work. Submit the memo and all calcluations
******************************************** FIN 571 Week 4 Assignment Rate of Return for Stocks and Bonds For more classes visit www.snaptutorial.com The purpose of this assignment is to allow the student an opportunity to calculate the rate of return of equity and debt instruments. It allows the student to understand the effects of dividends; capital gains; inflation rates; and how the nominal rate of return affects valuation and pricing. The assignment also allows the student to apply concepts related to CAPM, WACC, and Flotation Costs to understand the influence of debt and equity on the company's capital structure. Assignment Steps Resources: Corporate Finance Calculate the following problems and provide an overall summary of how companies make financial decisions in no more than 700 words, based on your answers: 1. 1) Stock Valuation: A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield. 2.
3. 2) Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year? 4. 5. 3) CAPM: A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the expected rate of return of the stock? 6. 7. 4) WACC: The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)? 8. 9. 5) Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally? 10. Secondly: he purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market. Students will gain an understanding of the different levels of market efficiency and how behavioral finance can inhibit reaching market transparency. Assignment Steps Resources: Microsoft® Word Explain in 525 words what it means to have efficient capital market, including: · Describe the behavioral challenges in achieving efficiency. · Discuss the three forms of market efficiency. · What are the implications to corporate finance? · Would you consider the real estate market an efficient capital market? Please explain why or why not. ********************************************
FIN 571 Week 4 DQ 1 For more classes visit www.snaptutorial.com A firm uses a single discount rate to compute the NPV of all its potential capital budgeting projects, even though the projects have a wide range of nondiversifiable risk. The firm then undertakes all those projects that appear to have positive NPVs. Briefly explain why such a firm would tend to become riskier over time. ******************************************** FIN 571 Week 4 DQ 2 For more classes visit www.snaptutorial.com Phyllis believes that the firm should use straight-line depreciation for a capital project because it results in higher net income during the early
years of the project’s life. Joanna believes that the firm should use the modified accelerated cost recovery system depreciation because it reduces the tax liability during the early years of the project’s life. Assuming you have a choice between depreciation methods, whose advice should you follow? Why? ******************************************** FIN 571 Week 4 Individual Assignment Analyzing Pro Forma Statements For more classes visit www.snaptutorial.com Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss and interpret the financials in relation to the initiative. Make recommendations on potential discretionary financing needs.
Write a 350 - 700 word analysis of the company's short term and long term financing needs and determine strategies for the company to manage working capital. Click the Assignment Files tab to submit your assignment. ******************************************** FIN 571 Week 4 Team Assignment Operating Leverage and Forecasting For more classes visit www.snaptutorial.com Operating Leverage and Forecasting Problems Team Assignment Please complete the following problems. When calculating earnings per share and PE ratios, please show your work. This problem is similar to the examples shown in the lecture. 1.You manufacture hunting pack systems in China for 80 dollars each, including shipping. The manufacturing costs only include variable costs. Variable costs are not calculated as a percentage of sales in this case. Sales are a function of the number of packs sold and the price per pack. Likewise, variable costs are a function of the number of packs sold and the cost to produce each pack. You sell these packs to retailers for 200 dollars each. In the
current year you will sell 100,000 packs. Your fixed costs including such items as insurance, marketing, travel, shows, office supplies, warehouse rentals etc. totals 5 million dollars this year and are not part of the 80 dollars per pack manufacturing cost. The federal income tax rate for your company is 40 percent. Your company is publicly traded on the NASDAQ with 1,000,000 shares outstanding. 1.Please create a current income statement using the same format as found in the lecture. (5 points) 2.Please calculate earnings per share. (2 points) 3.Please calculate the price/earnings multiple assuming that the current stock price is 10 dollars per share. (2 points) 2.Create a two-year forecast of the income statement from the information provided in problem number one. Please create three columns of data: current year, year 2, and year 3. Assume that sales increase ten percent per year for year's two and three. Please show the earnings per share for each of the three years. (10 points) 3. Please estimate the stock price for year's two and three, assuming that the current PE multiple remains constant for each of the two forecasted years. (6 points) ******************************************** FIN 571 Week 5 Assignment Capital Market Efficiency Paper
For more classes visit www.snaptutorial.com Purpose of Assignment The purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market. Students will gain an understanding of the different levels of market efficiency and how behavioral finance can inhibit reaching market transparency. Assignment Steps Resources: Microsoft® Word Explain in 525 words what it means to have efficient capital market, including: Describe the behavioral challenges in achieving efficiency. Discuss the three forms of market efficiency. What are the implications to corporate finance? Would you consider the real estate market an efficient capital market? Please explain why or why not. ******************************************** FIN 571 Week 5 Assignment Effect of Debt Issuance on Stock Valuation For more classes visit www.snaptutorial.com