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FIN 571 Entire Course+ Final Guide

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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, 2018)

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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 firmâ&#x20AC;&#x2122;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 wellrespected 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 firmâ&#x20AC;&#x2122;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 firmâ&#x20AC;&#x2122;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 firmâ&#x20AC;&#x2122;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 Financial Ratio Analysis (Apple)

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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.

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FIN 571 Week 1 Financial Ratio Analysis (General Motors)

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FIN 571 Week 1 Financial Ratio Analysis (Pfizer)

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FIN 571 Week 1 Financial Ratio Analysis (Walmart)

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FIN 571 Week 2 Individual Assignment Business Structure Advice

FOR MORE CLASSES VISIT www.fin571genius.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.

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FIN 571 Week 2 Individual Assignment Ethics and Finance

FOR MORE CLASSES VISIT www.fin571genius.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.

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FIN 571 Week 2 Individual Assignment Ratio Analysis Problems

FOR MORE CLASSES VISIT www.fin571genius.com 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 Gross Profit Margin

1993 1994 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%

Operating Margin (NOI/Sales)

39% 41%

15%

10%

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 Annual Sales Growth (over prior yr) Current Ratio

1993 1994 + 1%

3.5X

Average Collection Period days

0% 2X

1.2X

25 days 30 days 55

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 Sales

10 million dollars

+1%

Company B 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.

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FIN 571 Week 2 Stock Valuation and Analysis (Amazon)

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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.

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FIN 571 Week 2 Stock Valuation and Analysis (Ford)

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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)

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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)

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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 (Apple)

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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 Week 3 Individual Assignment Interpreting Financial Results

FOR MORE CLASSES VISIT www.fin571genius.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: ď&#x201A;ˇ

ď&#x201A;ˇ

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.

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FIN 571 Week 3 Researching Industry Financial Statistics

FOR MORE CLASSES VISIT www.fin571genius.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; MicrosoftÂŽ ExcelÂŽ 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-aReport 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.

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FIN 571 Week 3 Team Assignment Financial Statement Interpretation

FOR MORE CLASSES VISIT www.fin571genius.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.

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FIN 571 Week 3 Using the Payback Method, IRR, and NPV

FOR MORE CLASSES VISIT www.fin571genius.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: â&#x20AC;˘ Describe the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows. â&#x20AC;˘ 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 3 Using the Payback Method, IRR, and NPV

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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 calculations. ==============================================

FIN 571 Week 4 Assignment Rate of Return for Stocks and Bonds (2 Papers)

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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 Individual Assignment Analyzing Pro Forma Statements

FOR MORE CLASSES VISIT www.fin571genius.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.

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FIN 571 Week 4 Team Assignment Operating Leverage and Forecasting

FOR MORE CLASSES VISIT www.fin571genius.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)

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FIN 571 Week 5 Assignment Capital Market Efficiency Paper (2 Papers)

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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

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Purpose of Assignment The purpose of this assignment is to demonstrate to students how the issuance of debt to purchase outstanding common stock could affect the value of the company's equity and redefine the capital structure. The problem will also allow students to explore the effect of corporate taxes through debt financing. Assignment Steps Resources:Corporate Finance Scenario: Hightower, Inc. plans to announce it will issue $2.0 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 5%. Hightower, Inc. is currently an allequity company worth $7.5 million with 400,000 shares of common stock outstanding. After the sale of the bonds, the company will maintain the new capital structure indefinitely. The company currently generates annual pretax earnings of $1.5 million. This level of earnings is expected to remain constant in perpetuity. The tax rate is 35%. Prepare a 1,050-word memo advising the management of Hightower, Inc. on the financial impact, including the following: â&#x20AC;˘ What is the expected return on the company's equity before the announcement of the debt issue? â&#x20AC;˘ Construct the company's market value balance sheet before the announcement of the debt issue. What is the price per share

of the firm's equity? • Construct the company's market value balance sheet immediately after the announcement of the debt issue. • What is the company's stock price per share immediately after the repurchase announcement? • How many shares will the company repurchase as a result of the debt issue? How many shares of common stock will remain after the repurchase? • What is the required return on the company's equity after the restructuring? • Discuss the advantages and disadvantages of debt financing over equity financing. ==============================================

FIN 571 Week 5 Individual Assignment DCF and WACC Problems

FOR MORE CLASSES VISIT www.fin571genius.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.

1. Calculate the future value of 1,535 invested today for 8 years at 6 percent. (5 points)

2. What is the total present value of the following cash stream, discounted at 8 percent? (5 points)

Year

Amount 1

400

750

945

145

3. If you invested $2,000 per year into an IRA for 30 years and received 6 percent return each year, what would the account balance be in 30 years? (5 points)

4. A friend gives you a proposition. If you give him 1,500 dollars today, he will guarantee your receive 12 percent a year for the next 5 years. How much money will you receive from him at the end of 5 years? (5 points)

5. You want to buy a new Computer Aided Design (CAD) system for your business. The cost of the system is $150,000 and you expect to save over $40,000 per year in reduced labor costs. Please calculate the net present value of the CAD if your required return is 10 percent and the life of the system is expected to be 5 years. (10 points)

6. Your company is considering converting its heating system in the main office from coal to heating oil. The initial cost of removing the coal fired furnace and installing an new oil fired unit is $60,000. The life of the analysis is 7 years. In the past you spent $25,000 per year on coal. The new company says you will spend no more than $15,000 per year on heating oil. If your required return is 12 percent, should you make this investment? Please calculate the net present value of this project. (10 points)

7. You have collected the following information:

a. the yield on your company’s preferred stock 8% b. the yield on your company’s debt 10% c. the required return on your company’s common stock and internal equity 12% d. debt total $5,000,000 e. preferred stock current market value $10,000,000

f. common stock and retained earnings total value $20,000,000

Please calculate the pre-tax weighted average cost of capital (WACC) for your company. (10 points)

8. Your companyâ&#x20AC;&#x2122;s marginal income tax rate is 40%. Please calculate the post tax WACC from the information provided in problem 7. (10 points)

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FIN 571 Week 5 Team Assignment Capital Budgeting Assignment, Part 1 (New Heritage Doll)

the effects on working capital. Examples of opportunities include taking on new customers, capitalizing on supplier discounts, and reducing inventory. The team must understand how the income statement, balance sheet, and statement of cash flows are interconnected and be able to analyze forecasted financial information to consider possible effects of each opportunity on the firm's financial position. The company operates on thin margins with a constrained cash position and limited available credit. You must optimize use of internal and external credit as you balance the desire for growth with the need for maintaining liquidity. Create a 1,050-word analysis of the team members' decisions during each phase (1-3) and how they influenced each member's final results. • Analyze the influence of member's decisions on sales outcomes or metrics of SNC. • Analyze the influence of member's decisions on EBIT outcomes or metrics of SNC. • Assess the influence of member's decisions on Net Income outcomes or metrics of SNC. • Analyze the influence of member's decisions on Free Cash Flow outcomes or metrics of SNC. • Assess the influence of member's decisions on Total Firm Value outcomes or metrics of SNC. Cite a minimum of two scholarly references. Format your assignment consistent with APA guidelines.

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FIN 571 Week 5 Working Capital Simulation Managing Growth, Part 1 (SNC)

FOR MORE CLASSES VISIT www.fin571genius.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. The team must understand how the income statement, balance sheet, and statement of cash flows are interconnected and be able to analyze forecasted financial information to consider possible effects of each opportunity on the firm's financial position. The company operates on thin margins with a constrained cash position and limited available credit. You must optimize use of internal and external credit as you balance the desire for growth with the need for maintaining liquidity. Sign-in to the Harvard Business Simulation and review each of the following: • Welcome Statement • How to Play • Terminology Primer • More Details (this includes information to help you understand how to play the simulation) Complete the Harvard Business Simulation individually and track and save your results. Create a 1,050-word analysis of the team members' decisions during each phase (1-3) and how they influenced each member's final results. • Analyze the influence of member's decisions on sales outcomes or metrics of SNC. • Analyze the influence of member's decisions on EBIT outcomes or metrics of SNC. • Assess the influence of member's

decisions on Net Income outcomes or metrics of SNC. â&#x20AC;˘ Analyze the influence of member's decisions on Free Cash Flow outcomes or metrics of SNC. â&#x20AC;˘ Assess the influence of member's decisions on Total Firm Value outcomes or metrics of SNC. Cite a minimum of two scholarly references. Format your assignment consistent with APA guidelines. ==============================================

FIN 571 Week 6 Individual Assignment Working Capital Simulation Managing Growth Assignment

FOR MORE CLASSES VISIT www.fin571genius.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: Acting as the CEO of a small company, you 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. You must understand how the income statement, balance sheet, and statement of cash flows are interconnected and be able to analyze forecasted financial information to consider possible effects of each opportunity on the firm's financial position. The company operates on thin margins with a constrained cash position and limited available credit. You must optimize use of internal and external credit as you balance the desire for growth with the need for maintaining liquidity. Sign-in to the simulation and review each of the following:    

Welcome Statement How to Play Terminology Primer More Details (this includes information to help you understand how to play the simulation)

Write a paper of no more than 1,400 words that analyzes your decisions during each phase (1-3) and how they influenced each of the following final outcomes (metrics) of SNC:     

Sales EBIT Net Income Free Cash Flow Total Firm Value

Address the following in your paper:

  

A summary of your decisions and why you made them How they affected SNC's working capital What general effects are associated with limited access to financing

Include scholarly references (in addition to your course textbook and simulation materials) to support your positions. Format your paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ==============================================

FIN 571 Week 6 Signature Assignment Short Term Funding (2 PPT)

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About Your Signature Assignment: This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments may be graded with an automated rubric that allows the University to collect

data that can be aggregated across a location or college/school and used for program improvements. Purpose of Assignment: The purpose of this assignment is to allow the student an opportunity to apply their understanding of cash flow management, break-even analysis, and short-term and long-term financing in starting and growing a business. The assignment will be presented to the class giving the real world scenario of presenting a proposal to investors. Resources: OECD Database, Corporate Finance Prepare a 15-slide PowerPointÂŽ content presentation with speaker notes requesting initial funding of $500,000 to start and run a start-up company. The proposed start-up company could be an existing business model (coffee shop, pet store, etc.) or could be something entirely new and exciting. Create the presentation in the following format, with at least one slide to cover each of the following areas: 1. Title Page 2. Table of Contents 3. Executive Summary 4. Information about the Industry 5. Marketing Plan 6. Competitor Analysis 7. 3 Year Income Statement (Profit & Loss) Projections 8. Include your assumptions for why and how you will achieve your sales growth and what significant expenses and investments you expect to incur to achieve your revenue goals. Assumptions: Sales Growth, Significant Expenses and Investments 9. 3 Year Proposed Funding Schedule (Sources and uses of the funds received.) 10. Break-Even Analysis Review the following scenarios and assumption, and explain how it impacts your decision to expand: Each should have its own slide just as above; 11. After Year 3, the investors are interested in your company expanding internationally to possibly outsource labor or to reduce manufacturing costs. What countries would you expand to first, and why? What factors would you need to consider in making this decision? Global Expansion: Labor/Mfg. Costs. Country? 12. What is the

corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally? (Use OECD Database or another resource to determine the corporate tax rate). 13. The investors want to see a decision tree detailing the decisions you would make if you received $300K now and $200K at the end of three years instead of $500K up front. 14. The investors would like your team to provide advantages and disadvantages of using debt financing versus selling company stock to raise capital for growth. 15. Briefly explain the venture capital process. Does it make sense for your company to raise funds through venture capital? 16. Academic and Business References 17. Feedback Format your presentation consistent with APA guidelines. You must present this assignment in class to earn full credit. Students who do not present will have a 50% reduction in grade. Click the Assignment Files tab to submit your assignment. ==============================================

FIN 571 Week 6 Team Assignment Capital Budgeting Assignment, Part 2 (New Heritage Doll)

FOR MORE CLASSES VISIT www.fin571genius.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 Doll Compare 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 SNC • Defend this option to the board including all supporting documentation. Cite a minimum of three scholarly sources. Click the Assignment Files tab to submit your assignment.

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