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1.A proxy fight occurs when: <br>the board of directors disagree on the members of the management team.<br> 2. A stakeholder is any person or entity:<br> 3.Which one of the following is least apt to help convince managers to work in the best interest of the stockholders?<br>threat of a proxy fight<br>pay raises based on length of service<br>
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FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Final Exam Guide (New) FOR MORE CLASSES VISIT www.fin571tutor.com 1.A proxy fight occurs when: the board of directors disagree on the members of the management team. 2. A stakeholder is any person or entity: 3.Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? threat of a proxy fight pay raises based on length of service implementation of a stock option plan 4.Financial managers primarily create firm value by: maximizing current sales. investing in assets that generate cash in excess of their cost.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 1 Connect Problems (Math and Accounting Review) FOR MORE CLASSES VISIT www.fin571tutor.com FIN 571 Week 1 Connect Problems (Math & Accounting Review) 1. Functions Excel will make your life as a finance student much easier. This section will show how to use various functions in Excel. Once you understand the how and why of a particular financial equation, you can make 1. Which Excel cell entry will calculate the square root of 165? 2. Which statements about Excel’s FV function are correct? 3. Which fields are required to calculate net present value (NPV) in Excel? 4. Which Excel function is used to calculate the amount of each annuity payment?
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 1 Connect Problems (Week 1 Problem Set) FOR MORE CLASSES VISIT www.fin571tutor.com FIN 571 Week 1 Connect Problems (Week 1 Problem Set) 1.The ultimate control of a corporation lies in the hands of the corporate: president. board of directors. chairman of the board. chief executive officer. stockholders. 1. (Set 2) If a firm is currently profitable, then:
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 1 DQ 1 FOR MORE CLASSES VISIT www.fin571tutor.com What is ethics? If you follow all applicable rules and regulations, are you an ethical person?
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 1 DQ 2 FOR MORE CLASSES VISIT www.fin571tutor.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 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 1 Individual Assignment Business Structures FOR MORE CLASSES VISIT www.fin571tutor.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 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 2 Connect Problems FOR MORE CLASSES VISIT www.fin571tutor.com FIN 571 Week 2 Connect Problems 1. Sankey, Inc., has current assets of $4,230, net fixed assets of $25,700, current liabilities of $3,500, and long-term debt of $14,400. (Do not round intermediate calculations.) What is the value of the shareholders' equity account for this firm? How much is net working capital? 2. Which one of the following assets is generally the most liquid? 3. Which one of the following accounts is included in stockholders' equity? Operating cash flow is defined as: 4It ieasier to evaluate a firm using its financial statements when the firm: If a firm is currently profitable, then:
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 2 DQ 1 FOR MORE CLASSES VISIT www.fin571tutor.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?
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 2 DQ 2 FOR MORE CLASSES VISIT www.fin571tutor.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 negative 5% [= 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 andrequired return that is negative? Explain
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 2 Individual Assignment Business Structure Advice FOR MORE CLASSES VISIT www.fin571tutor.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 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 2 Individual Assignment Ethics and Finance FOR MORE CLASSES VISIT www.fin571tutor.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.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 2 Individual Assignment Ratio Analysis Problems FOR MORE CLASSES VISIT www.fin571tutor.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. 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"
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 2 Learning Team Reflection FOR MORE CLASSES VISIT www.fin571tutor.com Read the Ethics case, "A Sad Tale: The Demise of Arthur Anderson" located in the WileyPLUS Week Fundamentals of Corporate Finance Chapter readings. Discuss the mistakes made by Arthur Anderson and potential actions that leadership could have taken to prevent the organizational failure. Write a 350- to 700-word summary of your discussion. Click the Assignment Files tab to submit your assignment.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 3 Connect Problems FOR MORE CLASSES VISIT www.fin571tutor.com FIN 571 Week 3 Connect Problems If the Garnett Corp. has a 15 percent ROE and a 25 percent payout ratio, what is its sustainable growth rate? 1.If the Hunter Corp. has an ROE of 15 and a payout ratio of 18 percent, what is its sustainable growth rate 2.The most recent financial statements for Williamson, Inc., are shown here Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $8,418. What is the external financing needed? 3.The maximum rate at which a firm can grow while maintaining a constant debt-equity ratio is best defined by its: 4.Financial planning, when properly executed:
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 3 DQ 1 FOR MORE CLASSES VISIT www.fin571tutor.com Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 3 DQ 2 FOR MORE CLASSES VISIT www.fin571tutor.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 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 3 Individual Assignment Interpreting Financial Results FOR MORE CLASSES VISIT www.fin571tutor.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.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 3 Learning Team Reflection FOR MORE CLASSES VISIT www.fin571tutor.com Watch the "Concept Review Video: Working Capital Management" video located in theWileyPLUS Assignment: Week 3 Videos Activity. Discuss strategies these business owners used to manage their working capital. Write a 350-700 word summary of your discussion. Click the Assignment Files tab to submit your assignment.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom • FIN 571 Week 3 Team Assignment Financial Statement Interpretation • FOR MORE CLASSES VISIT • www.fin571tutor.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.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 4 Connect Problems FOR MORE CLASSES VISIT www.fin571tutor.com FIN 571 Week 4 Connect Problems Q-1 Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 20 years to maturity, and a coupon rate of 7 percent paid annually. If the yield to maturity is 8.1 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Q-1 (Set 2)
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 4 DQ 1 FOR MORE CLASSES VISIT www.fin571tutor.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 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 4 DQ 2 FOR MORE CLASSES VISIT www.fin571tutor.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 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 4 Individual Assignment Analyzing Pro Forma Statements FOR MORE CLASSES VISIT www.fin571tutor.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.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 4 Learning Team Reflection FOR MORE CLASSES VISIT www.fin571tutor.com Watch the "Concept Review Video: Stock Valuation" video located in the WileyPLUS Assignment: Week 4 Videos Activity.Discuss how markets and investors value a stock. Write a 350-700 word summary of your discussion. Click the Assignment Files tab to submit your assignment..
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 4 Team Assignment Operating Leverage and Forecasting FOR MORE CLASSES VISIT www.fin571tutor.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. 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,
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 5 Connect Problems FOR MORE CLASSES VISIT www.fin571tutor.com 1.The difference between the present value of an investment’s future cash flows and its initial cost is the: payback period. internal rate of return. profitability index. discounted payback period. net present value. 2.Which statement concerning the net present value (NPV) of an investment or a financing project is correct? An investment project that has positive cash flows for every time period after the initial investment should be accepted.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 5 DQ 1 FOR MORE CLASSES VISIT www.fin571tutor.com Because the weighted average is always a correct measure of a required return, why do firms not create securities to finance each project and offer them in the capital market in order to accurately determine the required return for the project?
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 5 DQ 2 FOR MORE CLASSES VISIT www.fin571tutor.com The development of the new issue junk bond market had important implications for capital structure choice. The existence of a viable junk bond market means that firms can comfortably maintain higher degrees of leverage than they could prior to the development of this market. Do you agree or disagree? Justify your answer.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 5 Individual Assignment DCF and WACC Problems FOR MORE CLASSES VISIT www.fin571tutor.com Discounted Cash Flows and WACC Homework Problems Please post the answers (and show your work) in the assignments section by midnight the last day of the week assigned. Calculate the future value of 1,535 invested today for 8 years at 6 percent. (5 points) What is the total present value of the following cash stream, discounted at 8 percent? (5 points) Year Amount 1 400 2 750 3 945 4 145 5 78
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 5 Learning Team Reflection FOR MORE CLASSES VISIT www.fin571tutor.com Watch the "Concept Review Video: Cost of Capital" video located in the WileyPLUS Assignment: Week 5 Videos Activity.Discuss some of the corporate finance challenges faced by this company.Write a 350-700 word summary of your discussion.Click the Assignment Files tab to submit your assignment.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 5 Team Assignment Capital Budgeting Assignment, Part 1 (New Heritage Doll) FOR MORE CLASSES VISIT www.fin571tutor.com Acting as the executive team for a small company, your team will apply the principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include taking on new customers, capitalizing on supplier discounts, and reducing inventory.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 6 Individual Assignment Working Capital Simulation Managing Growth Assignment FOR MORE CLASSES VISIT www.fin571tutor.com Resources: Harvard Business Publishing: Working Capital Simulation: Managing Growth Assignment Ch. 1 - 21 ofFundamentals of Corporate Finance WileyPLUS Assignments All additional resources from each week Review the following scenario:
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 6 Learning Team Reflection FOR MORE CLASSES VISIT www.fin571tutor.com Watch the "Corporate Finance Video: Stable Money Makers" located in the WileyPLUS Assignment: Week 6 Videos Activity.Identify a capital improvement that could help Betty with her Alpaca business.Write a summary of no more than 700 words explaining how the capital improvement you identified could help the business.Click the Assignment Files tab to submit your assignment.
FIN 571 TUTOR Career Path Begins/fin571tutor.com CJA 234 MART The power of possibility/cja234martdotcom FIN 571 Week 6 Team Assignment Capital Budgeting Assignment, Part 2 (New Heritage Doll) FOR MORE CLASSES VISIT www.fin571tutor.com The executive team of New Heritage Doll has completed the decision making for capital budgeting for the firm. Now the team must decide which decisions and approach were the best for the company. The executive team must create a presentation to be given to the board members of New Heritage DollCmpare the decisions and results of all members of the team. Create a 20-slide Microsoft® PowerPoint® presentation that includes detailed speaker notes that act as the script of the presentation in which you include the following:Summarize the decisions made by each member. Explain why those decisions were made.Analyze the effects the team's decisions had on New Heritage Doll working capital.Select one plan from the team's results to propose as the best option for SNCDefend this option to the board including all supporting