CLICK TO DOWNLOAD FIN 370 Week 1 Question and Problem Sets Purpose of Assignment Provide students with a basic understanding of financial management, goal of the firm, and the basic financial statements. Students should be able to calculate and analyze solvency, liquidity, profitability and market value ratios, and create proforma financial statements. Ch. 1: Questions 3 & 11 Ch. 2: Questions 4 & 9 Ch. 3: Questions 4 & 7 Ch. 4: Questions 1 & 6 FIN 370 Week 2 Learning Team Charter Review the Charter and Project plan. Review the weekly Learning Team deliverables. Complete the provided Learning Team Charter and Project Plan, including the following: team member contact information, project by week, learning team expectations, team discussion questions. FIN 370 Week 2 Question and Problem Sets Complete the following Questions and Problems Ch. 5: Questions 3 & 4 Ch. 6: Questions 2 & 20 Ch. 7: Questions 3 &1 Ch. 8: Questions 1 & 6 FIN 370 Week 3 Financial Ratio Analysis Select one of the publicly traded corporations listed below and obtain the most current SEC Form 10-K (annual financial report) from the company’s web site (Do not use the Annual Report that is sent to shareholders): Lowes Corporation Kroger Corporation Harley Davidson Corporation Apple Corporation Intel Corporation Marriott Corporation Berkshire Hathaway Corporation PepsiCo Corporation Procter and Gamble Corporation General Electric Corporation Calculate and analyze the following ratios for your selected company for the last two years from the SEC Form 10-K:
Current Ratio Inventory Turnover Debt Ratio Time Interest Earned Gross Profit Margin Equity Multiplier Return on Assets Net Profit Margin Return on Equity (Use three ratio DuPont method)
FIN 370 Week 3 Question and Problem Sets Complete the following Questions and Problems Ch. 9: Questions 7 & * Ch. 10: Questions 3 & 13 Ch. 11: Questions 1 & 7 FIN 370 Week 4 Weighted Average Cost of Capital Scenario: You work for an investment banking firm and have been asked by management of Vestor Corporation (not real), a software development company, to calculate its weighted average cost of capital, to use in evaluating a new company investment. The firm is considering a new investment in a warehousing facility, which it believes will generate an internal rate of return of 11.5%. The market value of Vestor’s capital structure is as follows: Source of Capital Market Value Bonds $10,000,000 Preferred Stock $2,000,000 Common Stock $8,000,000 To finance the investment, Vestor has issued 20 year bonds with a $1,000 par value, 6% coupon rate and at a market price of $950. Preferred stock paying a $2.50 annual dividend was sold for $25 per share. Common stock of Vestor is currently selling for $50 per share and has a Beta of 1.2. The firm’s tax rate is 34%. The expected market return of the S&P 500 is 13% and the 10Year Treasury note is currently yielding 3.5%. Determine what discount rate (WACC) Vestor should use to evaluate the warehousing facility project. Assess whether Vestor should make the warehouse investment. Prepare your analysis in a minimum of 700 words in Microsoft® Word. Use Microsoft® Word tables in the presentation if you choose. Show all calculations and analysis in the presentation. FIN 370 Week 4 WACC and Corporate Investment Decisions Scenario: Wilson Corporation (not real) has a targeted capital structure of 40% long term debt and 60% common stock. The debt is yielding 6% and the corporate tax rate is 35%. The common stock is trading at $50 per share and next year’s dividend is $2.50 per share that is growing by 4% per year. Prepare a minimum 700-word analysis including the following: Calculate the company’s weighted average cost of capital. Use the dividend discount model. Show calculations in Microsoft® Word.
The company’s CEO has stated if the company increases the amount of long term debt so the capital structure will be 60% debt and 40% equity, this will lower its WACC. Explain and defend why you agree or disagree. Report how would you advise the CEO.
FIN 370 Week 5 Question and Problem Sets Complete the following Questions and Problems from each chapter as indicated. Show all work and analysis. Prepare in Microsoft® Excel® or Word. Ch. 18: Questions 3 & 11 Ch. 20: Questions 8 & 14 Ch. 21: Questions 4 & 7 Ch. 26: Questions 1 & 2 (