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FIN 571 Final Exam Guide (3 Set with Excel
File) FOR MORE CLASSES VISIT www.fin571genius.com
This Tutorial also contains 2 other sets This
tutorial contains 3 set of final along with excel
file which can be used to solve question in case
value changes 1.Which one of the following
parties is considered a stakeholder of a firm?
2.The process of planning and managing a firm's
long-term assets is called 3. Which one of the
following actions by a financial manager creates
an agency problem? 4. Which one of these is a
cash outflow from a corporation? 5. For each of
the following, compute the present value (Do not
round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.) 6.
Gerold invested 115 in an account that pays 5
percent simple interest. How much money will he
have at the end of 5 years? 7. What is the future
value of 920 a year for 5
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FIN 571 Final Exam Guide (New) FOR MORE CLASSES
VISIT www.fin571genius.com 1.A proxy fight occurs
when the board of directors disagree on the
members of the management team. 2. A stakeholder
is any person or entity 3.Which one of the
following is least apt to help convince managers
to work in the best interest of the stockholders?
threat of a proxy fight pay raises based on
length of service implementation of a stock
option plan 4.Financial managers primarily create
firm value by maximizing current sales.
investing in assets that generate cash in excess
of their cost. 5.First City Bank pays 7 percent
simple interest on its savings account balances,
whereas Second City Bank pays 7 percent interest
compounded annually.
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FIN 571 Final Exam Guide (New, 2017) FOR MORE
CLASSES VISIT www.fin571genius.com 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.
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FIN 571 Final Exam Guide Set 2 (NEW) FOR MORE
CLASSES VISIT www.fin571genius.com Financial
managers should primarily strive to 2. The
process of planning and managing a firm's
long-term assets is called 3. Which one of the
following actions by a financial manager creates
an agency problem? 4. Which one of these is a
cash outflow from a corporation? 5. For each of
the following, compute the present value 6.
Gerold invested 115 in an account that pays 5
percent simple interest. How much money will he
have at the end of 5 years? 7. What is the future
value of 920 a year for 5 years at a 6 percent
interest? 8. You bought 360 shares of stock at a
total cost of 7,754.40. You received a total of
403.20 in dividends and sold your shares for
19.98 a share. What was your total rate of
return? 9. A year ago, you purchased 500 shares
of New Tech stock at a price of 49.03 per share.
The stock pays an annual dividend of .10 per
share. Today, you sold all of your shares for
58.14 per share. What is your total dollar
return on this
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FIN 571 Week 1 Connect Problems (Math and
Accounting Review) FOR MORE CLASSES
VISIT www.fin571genius.com FIN 571 Week 1 Connect
Problems (Math Accounting Review) 1. Functions
Excel will make your life as a finance student
much easier. This section will show how to use
various functions in Excel. Once you understand
the how and why of a particular financial
equation, you can make 1. Which Excel cell entry
will calculate the square root of 165? 2. Which
statements about Excels FV function are correct?
3. Which fields are required to calculate net
present value (NPV) in Excel? 4. Which Excel
function is used to calculate the amount of each
annuity payment? 5. Which fields are required to
calculate the rate of return (RATE) for a present
value
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FIN 571 Week 1 Connect Problems (Week 1 Problem
Set) FOR MORE CLASSES VISIT www.fin571genius.com F
IN 571 Week 1 Connect Problems (Week 1 Problem
Set) 1.The ultimate control of a corporation lies
in the hands of the corporate president. board
of directors. chairman of the board. chief
executive officer. stockholders. 1. (Set 2) If a
firm is currently profitable, then it will
always have sufficient cash to pay its bills in a
timely manner. the timing of the cash flows on
proposed projects is irrelevant. its current cash
inflows must exceed its current cash outflows.
its cash flows are known with certainty. its
reported sales exceed its costs. 2.Which one of
these is a cash outflow from a corporation? sale
of an asset dividend payment profit retained by
the firm sale of common stock issuance of debt
2.(Set 2) Short-term finance deals with
acquiring and selling fixed assets. financing
long-term projects. capital budgeting. 3.For a
firm to create value
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FIN 571 Week 1 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com What is ethics? If you
follow all applicable rules and regulations, are
you an ethical person?
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FIN 571 Week 1 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com Assume that interest
rates have increased substantially. Would this
tend to increase or decrease      the market
value (meaning the price an investor in the
firm's paper is willing to pay) of a firms
liabilities (relative to the book value of
liabilities)?   This question is referring to a
firm's liability such as a bond or debenture that
has been issued in the
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FIN 571 Week 1 Financial Ratio Analysis FOR MORE
CLASSES VISIT www.fin571genius.com 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
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FIN 571 Week 1 Individual Assignment Business
Structures FOR MORE CLASSES VISIT www.fin571genius
.com Watch the "Your Business Structure" and
"Corporate Business Structures" videos on the
Electronics Reserve Readings page. Identify the
different business structures. Write a 350 to 700
word explanation of how each business structure
might and might not be advantageous. Click the
Assignment Files tab to submit your assignment.
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FIN 571 Week 2 Connect Problems FOR MORE CLASSES
VISIT www.fin571genius.com FIN 571 Week 2 Connect
Problems 1.Sankey, Inc., has current assets of
4,230, net fixed assets of 25,700, current
liabilities of 3,500, and long-term debt of
14,400. What is the value of the shareholders'
equity account for this firm? 2.Which one of the
following assets is generally the most liquid?
3.Which one of the following accounts is included
in stockholders' equity? 4.It is easier to
evaluate a firm using its financial statements
when the firm 5.Which one of these accounts is
classified as a current asset on the balance
sheet?
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FIN 571 Week 2 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com In order to receive
proper credit, please reply to this message when
posting your answers to WK2 DQ1.          
Suppose you own 1 million worth of 30-year
Treasury bonds. Is this asset riskless??         
You own 1 million worth of 90-day Treasury
bills. You roll over this investment every 90
days by reinvesting the proceeds in another issue
of 90-day Treasury bills. Is this investment
riskless?? Can you think of an asset that is
truly riskless?
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FIN 571 Week 2 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com Suppose rf is 5
and rM is 10. According to the SML and the CAPM,
an asset with a beta of -2.0  has a required
return of negative 5 5 - 2(10 - 5). Can this
be possible? Does this mean that  the asset has
negative risk? Why would anyone ever invest in an
asset that has an expected and required return
that is negative? Explain
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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
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FIN 571 Week 2 Individual Assignment Ethics and
Finance FOR MORE CLASSES VISIT www.fin571genius.co
m 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.
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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       1993    1994       Gross
Profit Margin                                    
                 60     55     51  What is
happening to cost of goods sold?  As was done in
the week 2 online lecture on ratio analysis,
please assume sales of 1 dollar each year as you
do your analysis.  This problem follows the
process shown in the Week 2 Ratio Analysis online
lecture section titled "Another Income Statement
An
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FIN 571 Week 2 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571genius.com Read the
Ethics case, "A Sad Tale The Demise of Arthur
Anderson" located in the WileyPLUS Week
Fundamentals of Corporate Finance Chapter
readings. Discuss the mistakes made by Arthur
Anderson and potential actions that leadership
could have taken to prevent the organizational
failure. Write a 350- to 700-word summary of your
discussion. Click the Assignment Files tab to
submit your assignment.
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FIN 571 Week 2 Stock Valuation and Analysis FOR
MORE CLASSES VISIT www.fin571genius.com 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?
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FIN 571 Week 3 Connect Problems FOR MORE CLASSES
VISIT www.fin571genius.com FIN 571 Week 3 Connect
Problems If the Garnett Corp. has a 15 percent
ROE and a 25 percent payout ratio, what is its
sustainable growth rate? 1.If the Hunter Corp.
has an ROE of 15 and a payout ratio of 18
percent, what is its sustainable growth rate
2.The most recent financial statements for
Williamson, Inc., are shown here Assets and costs
are proportional to sales. Debt and equity are
not. No dividends are paid. Next years sales are
projected to be 8,418. What is the external
financing needed? 3.The maximum rate at which a
firm can grow while maintaining a constant
debt-equity ratio is best defined by its
4.Financial planning, when properly executed
5.Projected future financial statements are
called 6.Which account is least apt to vary
directly with sales?
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FIN 571 Week 3 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com Why are interest rates
on short-term loans not necessarily comparable to
each other? Give three possible reasons.
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FIN 571 Week 3 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com Optical Supply Company
offers credit terms of 2/10, net 60. If Optical
Supply is considering a change in its credit
terms to one of those indicated, explain whether
the change should increase or decrease sales.
(a) 2/10, net 30, (b) net 60, (c) 3/15, net 60,
(d) 2/10, net 30, 30 extra
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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  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.
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FIN 571 Week 3 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571genius.com Watch the
"Concept Review Video Working Capital
Management" video located in theWileyPLUS
Assignment Week 3 Videos Activity.  Discuss strat
egies 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.
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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 Microsoft Excel 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"
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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
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FIN 571 Week 3 Using the Payback Method, IRR, and
NPV FOR MORE CLASSES VISIT www.fin571genius.com Th
e 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.
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FIN 571 Week 4 Assignment Rate of Return for
Stocks and Bonds FOR MORE CLASSES
VISIT www.fin571genius.com 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
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FIN 571 Week 4 Connect Problems FOR MORE CLASSES
VISIT www.fin571genius.com FIN 571 Week 4 Connect
Problems Q-1 Even though most corporate bonds in
the United States make coupon payments
semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company
issues a bond with a par value of 1,000, 20
years to maturity, and a coupon rate of 7 percent
paid annually. If the yield to maturity is 8.1
percent, what is the current price of the bond?
(Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
Q-1 (Set 2) Watters Umbrella Corp. issued 30-year
bonds 2 years ago at a coupon rate of 7.4
percent. The bonds make semiannual payments. If
these bonds currently sell for 83 percent of par
value, what is the YTM? (Do not round
intermediate calculations and enter your answer
as a percent rounded to 2 decimal places, e.g.,
32.16.) 2.Microhard has issued a bond with the
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FIN 571 Week 4 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com Phyllis believes that
the firm should use straight-line depreciation
for a capital project because it results in
higher net income during the early years of the
projects 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 projects
life. Assuming you have a choice between
depreciation methods, whose advice should you
follow? Why?
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FIN 571 Week 4 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com Phyllis believes that
the firm should use straight-line depreciation
for a capital project because it results in
higher net income during the early years of the
projects 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 projects
life. Assuming you have a choice between
depreciation methods, whose advice should you
follow? Why?
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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.
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FIN 571 Week 4 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571genius.com Watch the
"Concept Review Video Stock Valuation" video
located in the WileyPLUS Assignment Week 4
Videos Activity. Discuss how markets and
investors value a stock. Write a 350-700 word
summary of your discussion. Click the Assignment
Files tab to submit your assignment.
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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. 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
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FIN 571 Week 5 Assignment Capital Market
Efficiency Paper FOR MORE CLASSES
VISIT www.fin571genius.com 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.
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FIN 571 Week 5 Assignment Effect of Debt Issuance
on Stock Valuation FOR MORE CLASSES
VISIT www.fin571genius.com 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
ResourcesCorporate 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 all-equity 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
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FIN 571 Week 5 Connect Problems FOR MORE CLASSES
VISIT www.fin571genius.com 1.The difference
between the present value of an investments
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. Any type of project should be
accepted if the NPV is positive and rejected if
it is negative. A financing project should be
accepted if, and only if, the NPV is exactly
equal to zero. Any type of project with greater
total cash inflows than total cash outflows,
should always be accepted. An investment project
should be accepted only if the NPV is equal to
the initial cash flow. 3.The primary reason that
company projects with positive net present
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FIN 571 Week 5 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com Because the weighted
average is always a correct measure of a required
return, why do firms not create securities to
finance each project and offer them in the
capital market in order to accurately determine
the required return for the project?
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FIN 571 Week 5 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com The development of the
new issue junk bond market had important
implications for capital structure choice. The
existence of a viable junk bond market means that
firms can comfortably maintain higher degrees of
leverage than they could prior to the development
of this market. Do you agree or disagree? Justify
your answer.
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FIN 571 Week 5 Individual Assignment DCF and WACC
Problems FOR MORE CLASSES VISIT www.fin571genius.c
om Discounted Cash Flows and WACC Homework
Problems  Please post the answers (and show your
work) in the assignments section by midnight the
last day of the week assigned.  Calculate the
future value of 1,535 invested today for 8 years
at 6 percent. (5 points)   What is the total
present value of the following cash stream,
discounted at 8 percent? (5 points)             
Year                 Amount 1                     
                         400
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FIN 571 Week 5 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571genius.com Watch the
"Concept Review Video Cost of Capital" video
located in the WileyPLUS Assignment Week 5
Videos Activity. Discuss some of the corporate
finance challenges faced by this company. Write a
350-700 word summary of your discussion. Click the
Assignment Files tab to submit your assignment.
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FIN 571 Week 5 Team Assignment Capital Budgeting
Assignment, Part 1 (New Heritage Doll) 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
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