FIN 515 MART Teaching Effectively fin515martdotcom

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FIN 515 MART Teaching Effectively fin515martdotcom

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This tutorial does not contain Final Exam Guide FIN 515 Week 1 DQ 1 Accounting Versus Finance FIN 515 Week 1 DQ 2 Financial Analysis FIN 515 Week 1 Quiz FIN 515 Week 1 Quiz (New) FIN 515 Week 1 Problem Set FIN 515 Week 2 DQ 1 TVM Pass-a-Problem FIN 515 Week 2 DQ 2 Assumptions of the TVM Model – PowerPoint PPT presentation

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Title: FIN 515 MART Teaching Effectively fin515martdotcom


1
FIN 515 MART Teaching Effectively/
fin515martdotcom
  • FOR MORE CLASSES VISIT
  • www.fin515mart.com

2
FIN 515 Entire Course
  • This tutorial does not contain Final Exam Guide
  • FIN 515 Week 1 DQ 1 Accounting Versus Finance
  • FIN 515 Week 1 DQ 2 Financial Analysis
  • FIN 515 Week 1 Quiz
  • FIN 515 Week 1 Quiz (New)
  • FIN 515 Week 1 Problem Set
  • FIN 515 Week 2 DQ 1 TVM Pass-a-Problem
  • FIN 515 Week 2 DQ 2 Assumptions of the TVM Model
  • FIN 515 Week 2 Quiz
  • FIN 515 Week 2 Problem Set

3
FIN 515 Course Project 1 and 2
  • This Tutorial contains Week 3 Course Project (3
    Sets) Week 6 Course Project (2 Sets)

4
FIN 515 Final Exam (all 3 Sets)
  • FIN 515 Final Exam Set 1 FIN 515 Final Exam Set 2
    FIN 515 Final Exam Set 3

5
FIN 515 Final Exam Set 1
  • 1. (TCO A) In the United States, which of the
    following types of organization has the greatest
    revenue in total? (Points 5)a. Sole
    proprietorshipb. C corporationc. S corporationd.
    Limited partnership 1.1) Which of the following
    is not a step in the WACC valuation method?A)
    Compute the value of the investment, including
    the tax benefit of leverage, by discounting the
    free cash flow of the investment using the
    WACC.B) Compute the weighted average cost of
    capital.C) Determine the free cash flow of the
    investment.D) Adjust the WACC for the firm's
    current debt/equity ratio. 1. (TCO H) Zervos Inc.
    had the following data for 2008 (in millions).

6
FIN 515 Final Exam Set 2
  • Question 1.1. (TCO A) Double taxation is a
    drawback for which of the following types of
    business organization except? Question 2.2. (TCO
    A) Sole proprietorships have all of the following
    advantages except Question 3.3. (TCO B) Which of
    the following would cause the present value of an
    annuity to decrease? Question 4.4. (TCO B) In a
    TVM calculation, if incoming cash flows are
    positive, outgoing cash flows must be Question
    5.5. (TCO G) If net income, total assets, and
    book value of equity stayed the same, what would
    be the effect on the DuPont Identity of an
    increase in sales? Question 6.6. (TCO D) A stock
    has just paid a dividend and will pay a dividend
    of 3.00 in a year. The dividend will stay
    constant for the rest of time. The return on
    equity for similar stocks is 14. What is P0?
    Question 7.7.

7
FIN 515 Final Exam Set 3
  • 1. (TCO A) In the United States, which of the
    following types of organization has the greatest
    revenue in total? (Points 5) Sole
    proprietorship C corporation S corporation
    Limited partnership Question 2.2. (TCO A) A sole
    proprietorship is owned by (Points 5) one
    person. one or two people, but if there are two
    owners, they must be married to each other. up to
    100 owners. up to 64 owners. Question 3.3. (TCO
    B) Which of the following would cause the present
    value of an annuity to decrease? (Points 5)
    Reducing the number of payments. Increasing the
    number of payments. Decreasing the interest rate.
    Decreasing the liquidity of the payments.
    Question 4.4.

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FIN 515 Week 1 DQ 1 Accounting Versus Finance
  • Accounting Versus Finance (graded) Much of the
    analysis done by financial managers is based on
    numbers that are different from what would seem
    to the corresponding numbers presented in the
    financial statements. This difference is not due
    to any kind of cooking the books or other
    attempts to mislead anyone. One example is the
    use of market value rather than historical cost
    in the valuation of assets. What are some other
    examples of the differences between financial
    management and financial accounting?

9
FIN 515 Week 1 DQ 2 Financial Analysis
  • Financial Analysis (graded) In this discussion,
    we will be working with the variety of financial
    analysis tools available to us. Let's start with
    the DuPont Identity introduced in Chapter 2 of
    the text. For your initial post, locate the
    financial statements for two firms in one
    industry. Calculate all four terms of the DuPont
    Identity and present the results but do not
    analyze the results. For an additional post,
    analyze the results that another student has
    posted. If you were the appropriate financial
    manager of one of the firms that you analyzed,
    what would be your observations and
    recommendations?

10
FIN 515 Week 1 Problem Set
  • Chapter 1 The Corporation 1-1. What is the most
    important difference between a corporation and
    all other organizational forms? 1-2. What does
    the phrase limited liability mean in a corporate
    context? 1-3. Which organizational forms give
    their owners limited liability? 1-4. What are the
    main advantages and disadvantages of organizing a
    firm as a corporation? 1-5. Explain the
    difference between an S corporation and a C
    corporation. 1-6. You are a shareholder in a C
    corporation. The corporation earns 2 per share
    before taxes. Once it has paid taxes it will
    distribute the rest of its earnings to you as a
    dividend. The corporate tax rate is 40 and the
    personal tax rate on (both dividend and
    non-dividend) income is 30. How much is left for
    you after all taxes are paid? 1-7. Repeat Problem
    6 assuming the corporation is an S corporation.
    Chapter 2 Introduction to Financial Statement
    Analysis 2-8. In early 2009, General Electric
    (GE) had a book value of equity of 105 billion.

11
FIN 515 Week 1 Quiz(New)
  • Question 1. (TCO G) The lecture says that some
    ratios typically are better when they are higher
    and some of the ratios are better when they are
    lower. Pick a ratio for which a lower number
    typically would be preferred and describe a
    situation, in which a higher number for that
    ratio would be preferred, OR pick a ratio for
    which a higher number typically would be
    preferred and describe a situation in which a
    lower number for that ratio would be preferred.
    Question 2. (TCO G) As of December 31, 20XX,
    David Corp's accounts payable were 4,000,000.
    Its accounts receivable were 2,200,000, and its
    sales for 20XX were 32,000,000. What was its
    days sales outstanding? Question 3. (TCO G) As of
    December 31, 2015, Michael Corp's current assets
    were 2,000,000. Its current liabilities were
    2,000,000. Its sales for 2015 were 50,000,000.
    As of December 31, 2016, Michael Corp's current
    assets were 3,000,000. Its current liabilities
    were 3,000,000. Its sales for 2016 were
    65,000,000. Management has asked you to comment
    on these numbers.

12
FIN 515 Week 1 Quiz
  • Question 1 (TCO G) Which do you think provides a
    more valid measure of how a company is doing,
    comparison of current results with historical
    results or comparison of current results with the
    current results of another company? Question 2
    (TCO G) Barnes Corps total assets at the end of
    last year were 415,000,000 and its net income
    after taxes was 17,750,000. What was its return
    on total assets? Question 3 (TCO G) Between
    December 31, 2016 and December 31, 2017, ROE at
    Bobcat Industries decreased even though sales
    increased. Using the DuPont Identity, explain
    what else could have happened to cause this.

13
FIN 515 Week 1-7 DQs
  • FIN 515 Week 1 DQ 1 Accounting Versus Finance FIN
    515 Week 1 DQ 2 Financial Analysis FIN 515 Week 2
    DQ 1 TVM Pass-a-Problem FIN 515 Week 2 DQ 2
    Assumptions of the TVM Model FIN 515 Week 3 DQ 1
    Examples of Capital Expenditure From Your
    Industry FIN 515 Week 3 DQ 2 Capital Budgeting
    Terms and Considerations FIN 515 Week 4 DQ 1
    Market Value of a Stock Versus DDM Value FIN 515
    Week 4 DQ 2 Differences in YTM of Real Life Bonds
    FIN 515 Week 5 DQ 1 Calculating WACC for a Real
    Firm FIN 515 Week 5 DQ 2 Finding Stock Values for
    Real Stocks Using Beta and the SML FIN 515 Week 6
    DQ 1 Examples of Real Agency Problems and How
    They Could Have Been Prevented FIN 515 Week 6 DQ
    2 The Role of Financial Managers in Ethical
    Corporate Governance FIN 515 Week 7 DQ 1 Industry
    Approaches to Working Capital Financing FIN 515
    Week 7 DQ 2 Your Preference for Working Capital
    Management Policy

14
FIN 515 Week 2 DQ 1 TVM Pass-a-Problem
  • TVM Pass-a-Problem (graded) This week, the
    lecture provided some examples of TVM problem
    scenarios. For your first post, provide a story
    problem that can be solved using one or more of
    the TVM calculations. Your second post can be a
    description of how the problem posed by another
    student can be solved. Your professor may provide
    an example.

15
FIN 515 Week 2 DQ 2 Assumptions of the TVM Model
  • Assumptions of the TVM Model (graded) What are
    some of the assumptions behind the TVM
    calculations? How do these assumptions limit our
    application of these calculations?

16
FIN 515 Week 2 Problem Set
  • 3.Calculate the future value of 2000 in a. five
    years at an interest rate of 5 per year b. ten
    years at an interest rate of 5 per year and c.
    five years at an interest rate of 10 per year.
    d. Why is the amount of interest earned in part
    (a) less than half the amount of interest earned
    in part (b)? 4.What is the present value of
    10,000 received a. twelve years from today when
    the interest rate is 4 per year b. twenty years
    from today when the interest rate is 8 per year
    and c. six years from today when the interest
    rate is 2 per year? 5.Your brother has offered
    to give you either 5,000 today or 10,000 in 10
    years. If the interest rate is 7 per year, which
    option is preferable? 6.Consider the following
    alternatives. i. 100 received in 1 year ii. 200
    received in 5 years iii. 300 received in 10
    years a. Rank the alternatives from most valuable
    to least valuable if the interest rate is 10 per
    year.

17
FIN 515 Week 2 Quiz
  • FIN 515 Week 2 Quiz Question 1 (TCO B) You are a
    trust fund baby. Your trust fund is currently
    worth 1,234,000. The problem is the terms of the
    trust dont allow you to receive any of the money
    until you are 27. You are now 21. The fund is
    earning 7.7 per year. How much will the fund be
    worth when you are 27 and too old to enjoy
    it?Ignore taxes. Show your work. If you use
    Excel, show the formula with the parameters, and
    the answer. If you use a formula, provide the
    standard formula, the formula with terms
    substituted, and the answer.

18
FIN 515 Week 3 Course Project 1 (3 Papers)
  • This Tutorial contains 3 Different Course
    Projects First Course ProjectThe purpose of this
    project is to help you develop skills not only in
    performing the calculations behind financial
    analysis but interpreting the numbers as well.You
    are to pick a company. You should pick one either
    from the industry in which you are currently
    working or an industry in which you are
    interested. You could also pick a division of a
    company. It is imperative to use that sufficient
    data about your company and that it is available.
    One way to do this is to pick a publicly held
    company. If you pick a privately held company or
    a division of a company, make sure that the data
    necessary to do a significant financial analysis
    is available.If you use data that is not publicly
    available, be sure to talk to your manager and to
    make absolutely sure that revealing that data is
    not a problem.You will also need to find a
    standard against which to compare your findings.
    This could be a different company in the same
    industry. This could also be the same company at
    a different time.

19
FIN 515 Week 3 DQ 1 Examples of Capital
Expenditure From Your Industry
  • FIN 515 Week 3 DQ 1 Examples of Capital
    Expenditure From Your Industry (graded) Describe
    a potential capital expenditure project from the
    industry in which you now work or an industry in
    which you are interested. What is the project?
    Describe and provide an approximate value of the
    initial cash flow. Describe and provide an
    approximate value of the annual cash flows.
    Provide an estimation of the life of the project,
    as well as the exit costs.

20
FIN 515 Week 3 DQ 2 Capital Budgeting Terms and
Considerations
  • Capital Budgeting Terms and Considerations Our
    textbook and lecture discuss some considerations
    that should be taken into account when doing
    capital budgeting. How will these considerations
    affect the project you described in the other
    topic? Incremental earnings, interest expenses,
    taxes, opportunity costs, externalities, sunk
    costs, cannibalization or erosion, depreciation,
    and salvage value as well as others.

21
FIN 515 Week 3 Problem Set
  • Week 3 Problem Set 1. Your brother wants to
    borrow 10,000 from you. He has offered to pay
    you back 12,000 in a year. If the cost of
    capital of this investment opportunity is 10,
    what is its NPV? Should you undertake the
    investment opportunity? Calculate the IRR and use
    it to determine the maximum deviation allowable
    in the cost of capital estimate to leave the
    decision unchanged. 8. You are considering an
    investment in a clothes distributor. The company
    needs 100,000 today and expects to repay you
    120,000 in a year from now. What is the IRR of
    this investment opportunity? Given the riskiness
    of the investment opportunity, your cost of
    capital is 20.

22
FIN 515 Week 3 Quiz
  • Company A has a beta of 2.77. Company B has a
    beta of .73. Company C has a beta of .90. The
    risk free rate is 6 and the market risk premium
    is 4. What is the expected return of investing
    in Company B? stock portfolio consists of only
    two stocks. You have 15,000 in Company A and
    25,000 in Company B. Company A has an actual
    return of -8 and Company B has a return of 12.
    What is the return on your portfolio? A company
    has a capital structure of 40 debt and 60
    equity. The YTM on the companys bonds is 9, and
    the companys effective tax rate is 40. The CFO
    has estimated the companys WACC to be 9.96.
    What is the companys cost of equity?

23
FIN 515 Week 4 DQ 1 Market Value of a Stock
Versus DDM Value
  • Market Value of a Stock Versus DDM Value (graded)
    Select a stock in which you are interested.
    Calculate its per share value using the DDM or
    another method discussed in Chapter 9. Then find
    the current market value of a share of the stock.
    Compare that two. Can you explain the similarity
    or difference?

24
FIN 515 Week 4 DQ 2 Differences in YTM of Real
Life Bonds
  • Differences in YTM of Real Life Bonds (graded) Do
    some research, probably on the Web, and find some
    bonds with differing yields to maturity (YTM).
    How do you explain the difference? Both the
    lecture and the textbook discuss some factors
    that may lead to this difference.

25
FIN 515 Week 4 Midterm
  • Question 1. Question (TCO G) The firm's asset
    turnover measures Question 2. Question (TCO G)
    If Moon Corporation has an increase in sales,
    which of the following would result in no change
    in its EBIT margin? Question 3. Question (TCO
    B) You plan on retiring in 20 years. You
    currently have 275,000 and think you will need
    1,000,000 to retire. Assuming you dont deposit
    any additional money into the account, what
    annual return will you need to earn to meet this
    goal? Question 4. Question (TCO B) You take out
    a 4 year car loan for 18,000. 

26
FIN 515 Week 4 Problem Set
  • Bonds-1. Interest on a certain issue of bonds is
    paid annually with a coupon rate of 8. The bonds
    have a par value of 1,000. The yield to maturity
    is 9. What is the current market piece of these
    bonds? The bonds will mature in 5 years. Bonds-2.
    A certain bond has 12 years left to maturity.
    Interest is paid annually at a coupon rate of
    10. The bonds are currently selling for 850.
    What is their YTM? Bonds-3. A certain bond pays a
    semiannual coupon rate at a 10 annual rate. The
    bond has a par value of 1,000. There are eight
    years to maturity. The yield to maturity is 9.
    What is the current price of the bond? Bonds-4. A
    particular corporate bond has a par value of
    1,000. Coupon payments are 40 and are paid
    twice a year. Seven years are left on the life of
    the bond.The YTM is 9. What is the price of the
    bond? Bond-5. A given bond has 5 years to
    maturity.

27
FIN 515 Week 5 DQ 1 Calculating WACC for a Real
Firm
  • Calculating WACC for a Real Firm (graded) The
    Weighted Average Cost of Capital (WACC) for a
    firm can be calculated or found through research.
    Select two firms in the same industry. The
    industry may be that in which you currently work
    or it may be an industry in which you are
    interested. Calculate or find the WACC for the
    two firms. How do the WACCs compare? Are the
    WACCs what you would expect? What causes the
    differences between the two firms' WACCs?

28
FIN 515 Week 5 DQ 2 Finding Stock Values for Real
Stocks Using Beta and the SML
  • Finding Stock Values for Real Stocks Using Beta
    and the SML (graded) Our second discussion topic
    concerns the calculation of stock values using
    the Capital Asset Pricing Model (CAPM). We will
    start with a discussion of risk and work towards
    practical application of the model. The textbook
    provides a list of betas for a selection of
    stocks. Choose a few firms from that list and
    discuss whether the betas are what you would
    expect. Be sure to explain why or why not.

29
FIN 515 Week 5 problem Set
  • Chapter 10 (pages 345348) 4. You bought a stock
    one year ago for 50 per share and sold it today
    for 55 per share. It paid a 1 per share
    dividend today. What was your realized return?
    How much of the return came from dividend yield
    and how much came from capital gain? 20. Consider
    two local banks. Bank A has 100 loans
    outstanding, each for 1 million, that it expects
    will be repaid today. Each loan has a 5
    probability of default, in which case the bank is
    not repaid anything. The chance of default is
    independent across all the loans. Bank B has only
    one loan of 100 million outstanding, which it
    also expects will be repaid today. It also has a
    5 probability of not being repaid. Explain the
    difference between the type of risk each bank
    faces. Which bank faces less risk? Why?

30
FIN 515 Week 5 Quiz
  • Question 1 (TCO C) Company A has a beta of 2.77.
    Company B has a beta of .73. Company C has a beta
    of .90. The risk free rate is 6 and the market
    risk premium is 4. What is the expected return
    of investing in Company B? Show your work.
    Question 2. (TCO C) Your stock portfolio consists
    of only two stocks. You have 30,000 in Company A
    and 35,000 in Company B. Company A has an actual
    return of -8 and Company B has a return of 12.
    What is the return on your portfolio? Show your
    work. Question 3. (TCO E) A company has a capital
    structure of 40 debt and 60 equity. The YTM on
    the companys bonds is 9, and the companys
    effective tax rate is 40. The CFO has estimated
    the companys WACC to be 9.96. What is the
    companys cost of equity? Show your work.

31
FIN 515 Week 6 Course Project 2 (2 Different
Projects)
  • This Tutorial contains 2 Different Course
    Projects Second Project The purpose of this
    project is for you to have some practice working
    with financial concepts in the real world. This
    will involve integrating some material from
    throughout the course. The project will also
    involve the development of your own approach to
    doing the work. The project does not provide a
    step-by-step procedure for you to follow. Your
    task is to determine the WACC for a given firm
    using what you know about WACC as well as data
    you can find through research. Your deliverable
    is to be a brief report in which you state your
    determination of WACC, describe and justify how
    you determined the number, and provide relevant
    information as to the sources of your data.
    Assumptions As you recall, the formula for WACC
    is rWACC (E/ED) rE D/(ED) rD (1-TC) The
    formula for the required return on a given equity
    investment is ri rf ßi (RMkt-rf) RMkt-rf is
    the Market Risk Premium. For this project, you
    may assume the Market Risk Premium is 4 unless
    you can develop a better number. rf is the risk
    free rate. The YTM on 10 year US Treasury
    securities is a good approximation.

32
FIN 515 Week 6 Problem Set
  • Chapter 29 (pages 983-984) 1.What inherent
    characteristic of corporations creates the need
    for a system of checks on manager behavior? 2.
    What are some examples of agency problems? 3.What
    are the advantages and disadvantages of the
    corporate organizational structure? 4.What is the
    role of the board of directors in corporate
    governance? 1.What inherent characteristic of
    corporations creates the need for a system of
    checks on manager behavior? 2.What are some
    examples of agency problems? 3.What are the
    advantages and disadvantages of the corporate
    organizational structure? Managing Agency
    Conflict 4.Suppose Goodyear Tire and Rubber
    Company is considering divesting one of its
    manufacturing plants. The plant is expected to
    generate free cash flows of 1.5 million per
    year, growing at a rate of 2.5 per year.

33
FIN 515 Week 7 DQ 1 Industry Approaches to
Working Capital Financing
  • Industry Approaches to Working Capital Financing
    (graded) Do some research on two firms in your
    industry or an industry in which you are
    interested. Can you get an idea of their working
    capital management policies from publicly
    available information? How do the two companies
    differ in their apparent working capital
    management policies? Which policy do you think is
    better and why?

34
FIN 515 Week 7 DQ 2 Your Preference for Working
Capital Management Policy
  • Your Preference for Working Capital Management
    Policy (graded) Consider the company you work for
    or a company in which you are interested. Also,
    do some research to find some current cost
    estimates for various means of financing working
    capital. What would be your recommendation to the
    company for financing its working capital needs?
    If the information is publicly available, or if
    you have access to it AND have permission to
    discuss it, how does your recommendation compare
    what the firm is actually doing?

35
FIN 515 Week 7 Problem Set
  • 1. Answer the following questions a. What is the
    difference between a firms cash cycle and its
    operating cycle? 2. How will a firms cash cycle
    be affected if a firm increases its inventory,
    all else being equal? 2. How will a firms cash
    cycle be affected if a firm begins to take the
    discounts offered by its suppliers, all else
    being equal? 4.The Greek Connection had sales of
    32 million in 2012, and a cost of goods sold of
    20 million. A simplified balance sheet for the
    firm appears below a- Calculate The Greek
    Connections net working capital in 2012. 2.
    greatest? When does it have surplus cash?
  •  

36
FIN 515 MART Teaching Effectively/
fin515martdotcom
  • FOR MORE CLASSES VISIT
  • www.fin515mart.com
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