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FOR MORE CLASSES VISIT<br>www.fin571genius.com<br><br><br>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?
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FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Final Exam Guide (New) FIN 571 Week 1 Connect Problems (Math and Accounting Review) • 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? • 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?
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 1 Connect Problems (Week 1 Problem Set) FIN 571 Week 1 DQ 1 • FIN 571 Week 1 Connect Problems (Week 1 Problem Set) • 1.If a firm is currently profitable, then: • 2.Short-term finance deals with: • 3.A stakeholder is any person or entity: • 4.Which one of these best fits the description of an agency cost? • 5.The primary goal of financial management is to: • What is ethics? If you follow all applicable rules and regulations, are you an ethical person?
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 1 DQ 2 FIN 571 Week 1 Individual Assignment Business Structures • 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)? • 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 Course Experience Tradition / fin571genius.com FIN 571 Week 2 Connect Problems FIN 571 Week 2 DQ 1 • 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. What is the value of the shareholders' equity account for this firm? • 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.
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 2 DQ 2 FIN 571 Week 2 Individual Assignment Business Structure Advice • 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 and • required return that is negative? Explain • 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.
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 2 Individual Assignment Ethics and Finance FIN 571 Week 2 Individual Assignment Ratio Analysis Problems • 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 • 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.
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 2 Learning Team Reflection FIN 571 Week 3 Connect Problems • 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. • 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
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 3 DQ 1 FIN 571 Week 3 DQ 2 • Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons. • 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 Course Experience Tradition / fin571genius.com FIN 571 Week 3 Individual Assignment Interpreting Financial Results FIN 571 Week 3 Learning Team Reflection • 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: • 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 Course Experience Tradition / fin571genius.com FIN 571 Week 3 Team Assignment Financial Statement Interpretation FIN 571 Week 4 Connect Problems • 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 • FIN 571 Week 4 Connect Problems 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?
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 4 DQ 1 FIN 571 Week 4 DQ 2 • 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. • 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.
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 4 Individual Assignment Analyzing Pro Forma Statements FIN 571 Week 4 Learning Team Reflection • 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. • 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 Course Experience Tradition / fin571genius.com FIN 571 Week 4 Team Assignment Operating Leverage and Forecasting FIN 571 Week 5 Connect Problems • 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.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 Course Experience Tradition / fin571genius.com FIN 571 Week 5 DQ 1 FIN 571 Week 5 DQ 2 • 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? • 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 Course Experience Tradition / fin571genius.com FIN 571 Week 5 Individual Assignment DCF and WACC Problems FIN 571 Week 5 Learning Team Reflection • 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) • 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 Course Experience Tradition / fin571genius.com FIN 571 Week 5 Team Assignment Capital Budgeting Assignment, Part 1 (New Heritage Doll) FIN 571 Week 6 Individual Assignment Working Capital Simulation Managing Growth Assignment • 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 • 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
FIN 571 Course Experience Tradition / fin571genius.com FIN 571 Week 6 Learning Team Reflection FIN 571 Week 6 Team Assignment Capital Budgeting Assignment, Part 2 (New Heritage Doll) • 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. • 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 Doll Compare the decisions and results of all members of the team.
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