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FIN 534 Potential Instructors / tutorialrank.com

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For more course tutorials visit www.tutorialrank.com Tutorial Purchased: 2 Times, Rating: A+ STRAYER FIN 534 Week 1 Chapter 1 Solution STRAYER FIN 534 Week 1 Chapter 2 Solution STRAYER FIN 534 Week 2 Chapter 3 Solution STRAYER FIN 534 Week 3 Chapter 4 Solution STRAYER FIN 534 Week 3 Chapter 5 Solution STRAYER FIN 534 Week 4 Chapter 6 Solution STRAYER FIN 534 Week 4 Chapter 7 Solution STRAYER FIN 534 Week 5 Chapter 8 Solution STRAYER FIN 534 Week 5 Chapter 9 Solution STRAYER FIN 534 Week 6 Chapter 10 Solution STRAYER FIN 534 Week 6 Chapter 11 Solution STRAYER FIN 534 Week 7 Chapter 12 Solution – PowerPoint PPT presentation

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Title: FIN 534 Potential Instructors / tutorialrank.com


1
 FIN 534 Potential Instructors / tutorialrank
For more course Tutorials
www.tutorialrank.com
2
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 1 Chapter 1 Solution
STRAYER FIN 534 Entire Course (UOP Course)
1. Which of the following statements is
CORRECT?   a. One of the disadvantages of a sole
proprietorship is that the proprietor is exposed
to unlimited liability. b. It is generally easier
to transfer ones ownership interest in a
partnership than in a corporation. c. One of the
advantages of the corporate form of organization
is that it avoids double taxation. d. One of the
advantages of a corporation from a social
standpoint is that every stockholder has equal
voting rights, i.e., one person, one vote. e.
Corporations of all types are subject to the
corporate income tax.
STRAYER FIN 534 Week 1 Chapter 1 Solution STRAYER
FIN 534 Week 1 Chapter 2 Solution STRAYER FIN 534
Week 2 Chapter 3 Solution STRAYER FIN 534 Week 3
Chapter 4 Solution STRAYER FIN 534 Week 3 Chapter
5 Solution STRAYER FIN 534 Week 4 Chapter 6
Solution STRAYER FIN 534 Week 4 Chapter 7
Solution STRAYER FIN 534 Week 5 Chapter 8
Solution STRAYER FIN 534 Week 5 Chapter 9 Solution
3
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 1 DQ 1
STRAYER FIN 534 Week 1 Chapter 2 Solution
Imagine a startup company of your own and briefly
trace its development from a sole proprietorship
to a major corporation with a focus on how that
development would be financed.
1.Which of the following statements is
CORRECT?   a. Typically, a firms DPS should
exceed its EPS. b. Typically, a firms EBIT
should exceed its EBITDA. c. If a firm is more
profitable than average (e.g., Google), we would
normally expect to see its stock price exceed its
book value per share. d. If a firm is more
profitable than most other firms, we would
normally expect to see its book value per share
exceed its stock price, especially after several
years of high inflation.  
4
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 1 Quiz 1
STRAYER FIN 534 Week 1 DQ 2
Question 1 You recently sold 100 shares of your
new company, XYZ Corporation, to your brother at
a family reunion.  At the reunion your brother
gave you a check for the stock and you gave your
brother the stock certificates.  Which of the
following statements best describes this
transaction?
Discuss ways that the basic concepts we have
discussed in this chapter directly impact your
life. Provide specific examples to support your
response.    
5
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 2 DQ 1
STRAYER FIN 534 Week 2 Chapter 3 Solution
1. Which of the following statements is
CORRECT?   a. The ratio of long-term debt to
total capital is more likely to experience
seasonal fluctuations than is either the DSO or
the inventory turnover ratio. b. If two firms
have the same ROA, the firm with the most debt
can be expected to have the lower ROE. c. An
increase in the DSO, other things held constant,
could be expected to increase the total assets
turnover ratio.
Assume you are deciding whether or not to invest
in a particular company. Discuss which elements
of which financial statements you would want to
carefully examine. Explain your rationale.  
6
 FIN 534 Potential Instructors / tutorialrank
FIN 534 Week 4 Infrastructures and Natural
Resources Paper (UOP)
STRAYER FIN 534 Week 2 DQ 2
From the e-Activity, determine if the company you
analyzed would be a good investment for you or
not. Provide specific examples to support your
response.
1. A 50,000 loan is to be amortized over 7
years, with annual end-of-year payments. Which of
these statements is CORRECT? a. The annual
payments would be larger if the interest rate
were lower. b. If the loan were amortized over 10
years rather than 7 years, and if the interest
rate were the same in either case, the first
payment would include more dollars of interest
under the 7-year amortization plan. c. The
proportion of each payment that represents
interest as opposed to repayment of principal
would be lower if the interest rate were lower.  
7
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 3 DQ 1
STRAYER FIN 534 Week 3 Chapter 5 Solution
Starting with your current situation, describe
what you must do to ensure an annual retirement
income of 60,000 starting at age 65.  
1 . Three 1,000 face value bonds that mature in
10 years have the same level of risk, hence their
YTMs are equal. Bond A has an 8 annual coupon,
Bond B has a 10 annual coupon, and Bond C has a
12 annual coupon. Bond B sells at par. Assuming
interest rates remain constant for the next 10
years, which of the following statements is
CORRECT? a. Bond As current yield will increase
each year. b. Since the bonds have the same YTM,
they should all have the same price, and since
interest rates are not expected to change, their
prices should all remain at their current levels
until maturity.
8
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 3 Quiz 2
STRAYER FIN 534 Week 3 DQ 2
Question 1 Which of the following statements is
CORRECT?  a. Since companies can deduct dividends
paid but not interest paid, our tax system favors
the use of equity financing over debt financing,
and this causes companies debt ratios to be
lower than they would be if interest and
dividends were both deductible. b. Interest paid
to an individual is counted as income for tax
purposes and taxed at the individuals regular
tax rate, which in 2008 could go up to 35, but
dividends received were taxed at a maximum rate
of 15.  
Discuss the impact of Standard Poors
downgrading the U.S. credit rating in
2011. Address current and likely future impact on
U.S. business, individuals, the global economy
and current financial practices. Provide specific
examples to support your response.
9
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 4 Chapter 7 Solution
STRAYER FIN 534 Week 4 Chapter 6 Solution
1. Which of the following statements is
CORRECT? a. The constant growth model takes into
consideration the capital gains investors expect
to earn on a stock. b. Two firms with the same
expected dividend and growth rates must also have
the same stock price. c. It is appropriate to use
the constant growth model to estimate a stock's
value even if its growth rate is never expected
to become constant.
Which of the following statements is CORRECT? a.
If you add enough randomly selected stocks to a
portfolio, you can completely eliminate all of
the market risk from the portfolio. b. If you
were restricted to investing in publicly traded
common stocks, yet you wanted to minimize the
riskiness of your portfolio as measured by its
beta, then according to the CAPM theory you
should invest an equal amount of money in each
stock in the market. That is, if there were
10,000 traded stocks in the world, the least
risky possible portfolio would include some
shares of each one.
10
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 4 DQ 2
STRAYER FIN 534 Week 4 DQ 1
Discuss the non-rational factors that may have a
role in the valuation of stocks and stock market
equilibrium. Provide specific examples to support
your response.
 Information is the investor's best tool when it
comes to investing wisely. Often, the lack of
reliable, readily available, current information
also opens the door to fraud. It is easier for
the unscrupulous to spread false information and
to manipulate a stock's price when accurate
information about the company is scarce. Source
http//www.sec.gov/answers/infomatters.htm
11
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 5 Chapter 8 Solution
STRAYER FIN 534 Week 4 Quiz 3
1. Which of the following statements is
CORRECT? a. Put options give investors the right
to buy a stock at a certain strike price before a
specified date. b. Call options give investors
the right to sell a stock at a certain strike
price before a specified date. c. Options
typically sell for less than their exercise
value. d. LEAPS are very short-term options that
were created relatively recently and now trade in
the market.
1. Which of the following statements is
CORRECT?   1)      A time line is not meaningful
unless all cash flows occur annually 2)      Time
lines are useful for visualizing complex problems
prior to doing actual calculations 3)      Time
lines cannot be constructed to deal with
situations where some of the cash flows occur
annually but others occur quarterly 4)      Time
lines can only be constructed for annuities where
the payments occur at the ends of the periods,
i.e., for ordinary annuities
12
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 5 DQ 1
STRAYER FIN 534 Week 5 Chapter 9 Solution
Based on what you discovered in the e-Activity,
make at least two recommendations for regarding
how your selected company should approach its
capital budgeting. Explain the reasoning behind
your recommendations. A capital budgeting
analysis conducts a test to see if the benefits
(i.e., cash inflows) are large enough to repay
the company for three things  (1) the cost of
the asset, (2) the cost of financing the asset
(e.g., interest, etc.), and (3) a rate of return
(called a risk premium) that compensates the
company for potential errors made when estimating
cash flows that will occur in the distant future.
1. Bankston Corporation forecasts that if all of
its existing financial policies are followed, its
proposed capital budget would be so large that it
would have to issue new common stock. Since new
stock has a higher cost than retained earnings,
Bankston would like to avoid issuing new stock.
Which of the following actions would REDUCE its
need to issue new common stock? a. Increase the
dividend payout ratio for the upcoming year. b.
Increase the percentage of debt in the target
capital structure. c. Increase the proposed
capital budget.
13
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 6 Chapter 10 Solution
STRAYER FIN 534 Week 5 Quiz 4
1. Which of the following statements is
CORRECT? a. The internal rate of return method
(IRR) is generally regarded by academics as being
the best single method for evaluating capital
budgeting projects. b. The payback method is
generally regarded by academics as being the best
single method for evaluating capital budgeting
projects. c. The discounted payback method is
generally regarded by academics as being the best
single method for evaluating capital budgeting
projects.
Question 1             Assume that in recent
years both expected inflation and the market risk
premium (rM - rRF) have declined.  Assume also
that all stocks have positive betas.  Which of
the following would be most likely to have
occurred as a result of these changes? Answer
                               Question 2 Assume
that the risk-free rate is 5.  Which of the
following statements is CORRECT?
14
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 6 DQ 1
STRAYER FIN 534 Week 6 Chapter 11 Solution
Analyze the concept of stress test as applied
to financial institutions and create a better
alternative for assessing the viability of a
financial institution.
1. Which of the following statements is
CORRECT?   a. An externality is a situation where
a project would have an adverse effect on some
other part of the firms overall operations. If
the project would have a favorable effect on
other operations, then this is not an
externality. b. An example of an externality is a
situation where a bank opens a new office, and
that new office causes deposits in the banks
other offices to decline.
15
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 7 Chapter 12 Solution
STRAYER FIN 534 Week 6 Quiz 5
1. Which of the following statements is
CORRECT? a. Perhaps the most important step when
developing forecasted financial statements is to
determine the breakdown of common equity between
common stock and retained earnings. b. The first,
and perhaps the most critical, step in
forecasting financial requirements is to forecast
future sales. c. Forecasted financial statements,
as discussed in the text, are used primarily as a
part of the managerial compensation program,
where managements historical performance is
evaluated.
Question 1 Call options on XYZ Corporations
common stock trade in the market.  Which of the
following statements is most correct, holding
other things constant?  Question 2  Other things
held constant, the value of an option depends on
the stock's price, the risk-free rate, and
the  Question 3 Which of the following statements
is CORRECT?
16
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 7 DQ 1
STRAYER FIN 534 Week 7 Chapter 13 Solution
Analyze the process of forecasting financial
statements and make at least one recommendation
for improving the accuracy of forecasts. Provide
specific examples to support your response.
1. Suppose Leonard, Nixon, Shull Corporations
projected free cash flow for next year is
100,000, and FCF is expected to grow at a
constant rate of 6. If the companys weighted
average cost of capital is 11, what is the value
of its operations?   a. 1,714,750 b.
1,805,000 c. 1,900,000 d. 2,000,000 e.
2,100,000
17
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 7 Quiz 6
STRAYER FIN 534 Week 7 DQ 2
Question 1 Which of the following statements is
CORRECT? Answer                                   
 Question 2 Which of the following statements is
CORRECT?                     Question 3 Assume
that the economy is in a mild recession, and as a
result interest rates and money costs generally
are relatively low. The WACC for two mutually
exclusive projects that are being considered is
8.  Project S has an IRR of 20 while Project
L's IRR is 15. The projects have the same NPV at
the 8 current WACC. 
Drawing on what you discovered in the e-Activity,
determine what additional steps can be taken in
the valuation of a corporation to avoid instances
like the one you researched from occurring in the
future. Provide specific examples to support your
response.
18
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 8 Chapter 15 Solution
STRAYER FIN 534 Week 8 Chapter 14 Solution
1. Which of the following statements best
describes the optimal capital structure? a. The
optimal capital structure is the mix of debt,
equity, and preferred stock that maximizes the
companys earnings per share (EPS). b. The
optimal capital structure is the mix of debt,
equity, and preferred stock that maximizes the
companys stock price. c. The optimal capital
structure is the mix of debt, equity, and
preferred stock that minimizes the companys cost
of equity. d. The optimal capital structure is
the mix of debt, equity, and preferred stock that
minimizes the companys cost of debt.
1. Which of the following statements about
dividend policies is CORRECT?   a. Modigliani and
Miller argue that investors prefer dividends to
capital gains because dividends are more certain
than capital gains. They call this the
?bird-in-the hand? effect. b. One reason that
companies tend to avoid stock repurchases is that
dividend payments are taxed at a lower rate than
gains on stock repurchases.
19
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 8 DQ 2
STRAYER FIN 534 Week 8 DQ 1
Capital structure is the manner in which a firms
assets are financed that is, the right-hand side
of the balance sheet. Capital structure is
normally expressed as the percentage of each type
of capital used by the firm--debt, preferred
stock, and common equity.
I examined PepsiCo to determine how it should
address its free cash flow, either through
distributions to shareholders or repurchasing of
stock.
20
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 9 Chapter 16 Solution
STRAYER FIN 534 Week 8 Quiz 7
This quiz consist of 30 multiple choice
questions. The first 15 questions cover the
material in Chapter 12. The second 15 questions
cover the material in Chapter 13. Be sure you are
in the correct Chapter when you take the
quiz.    Question 1                          
Last year Godinho Corp. had 250 million of
sales, and it had 75 million of fixed assets
that were being operated at 80 of capacity.  In
millions, how large could sales have been if the
company had operated at full capacity?            
                        
This quiz consist of 30 multiple choice
questions. The first 15 questions cover the
material in Chapter 12. The second 15 questions
cover the material in Chapter 13. Be sure you are
in the correct Chapter when you take the
quiz.    Question 1                          
Last year Godinho Corp. had 250 million of
sales, and it had 75 million of fixed assets
that were being operated at 80 of capacity.  In
millions, how large could sales have been if the
company had operated at full capacity?            
                        
21
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 9 DQ 2
STRAYER FIN 534 Week 9 DQ 1
Create an idea for a startup venture and discuss
the most viable way to raise the working capital
to get the startup running. Explain your
rationale.
Based on the content of this chapter and what you
discovered in the e-Activity, analyze cash
management technology and make at least one
recommendation for another technique that would
enhance working capital management. Explain the
reasoning behind your recommendation.
22
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 10 Chapter 17 Solution
STRAYER FIN 534 Week 9 Quiz 8
1. In Japan, 90-day securities have a 4
annualized return and 180-day securities have a
5 annualized return. In the United States,
90-day securities have a 4 annualized return and
180-day securities have an annualized return of
4.5. All securities are of equal risk, and
Japanese securities are denominated in terms of
the Japanese yen. Assuming that interest rate
parity holds in all markets, which of the
following statements is most CORRECT? a. The
yen-dollar spot exchange rate equals the
yen-dollar exchange rate in the 90-day forward
market. b. The yen-dollar spot exchange rate
equals the yen-dollar exchange rate in the
180-day forward market.
Question 1  Which of the following statements
about dividend policies is correct?  Question
2  If a firm adheres strictly to the residual
dividend policy, the issuance of new common stock
would suggest that  Question 3  Which of the
following statements is correct? Answer
                                    Correct
Answer          If a firm repurchases some of
its stock in the open market, then shareholders
who sell their stock for more than they paid for
it will be subject to capital gains taxes.
23
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 10 DQ 2
STRAYER FIN 534 Week 10 DQ 1
Recommend three policy changes that would make
the Federal Reserves job of controlling U.S.
interest rates easier. Explain your reasoning
Based on what you uncovered in the e-Activity,
determine the most significant risk factors
associated with investing in the company you
selected when compared with investing in a
domestic company. Provide specific examples to
support your response.
24
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 11 DQ 1
STRAYER FIN 534 Week 10 Quiz 9
Reflect on the lessons learned during this class
and discuss the most interesting or surprising
thing you learned. Explain what made it so.
Question 1 Which of the following statements is
NOT CORRECT?   Question 2 Which of the following
statements is CORRECT?   Question 3 Which of the
following statements is CORRECT? Answer   Question
4 Helena Furnishings wants to reduce its cash
conversion cycle.  Which of the following actions
should it take?  
25
 FIN 534 Potential Instructors / tutorialrank
STRAYER FIN 534 Week 11 Quiz 10
STRAYER FIN 534 Week 11 DQ 2
Question 1                           Suppose
DeGraw Corporation, a U.S. exporter, sold a solar
heating station to a Japanese customer at a price
of 143.5 million yen, when the exchange rate was
140 yen per dollar.  In order to close the sale,
DeGraw agreed to make the bill payable in yen,
thus agreeing to take some exchange rate risk for
the transaction.  The terms were net 6 months. 
If the yen fell against the dollar such that one
dollar would buy 154.4 yen when the invoice was
paid, what dollar amount would DeGraw actually
receive after it exchanged yen for U.S. dollars?
Reflect on the lessons learned during this class
and discuss the most interesting or surprising
thing you learned. Explain what made it so.
26
 FIN 534 Potential Instructors / tutorialrank
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