FIN 534 Potential Instructors / tutorialrank.com - PowerPoint PPT Presentation

Loading...

PPT – FIN 534 Potential Instructors / tutorialrank.com PowerPoint presentation | free to download - id: 801fbb-OTUzZ



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

FIN 534 Potential Instructors / tutorialrank.com

Description:

For more course tutorials visit www.tutorialrank.com 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 – PowerPoint PPT presentation

Number of Views:5
Slides: 27
Provided by: pirate660030

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: FIN 534 Potential Instructors / tutorialrank.com


1
FIN 534 Potential Instructors / tutorialrank.com
For More Best A Tutorials
www.tutorialrank.com
2
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Entire Course (UOP Course)
  • STRAYER FIN 534 Week 1 Chapter 1 Solution
  • 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
  • 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.

3
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 1 Chapter 2 Solution
  • STRAYER FIN 534 Week 1 DQ 1
  • 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.
  • 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.

4
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 1 DQ 2
  • STRAYER FIN 534 Week 1 Quiz 1
  • Discuss ways that the basic concepts we have
    discussed in this chapter directly impact your
    life. Provide specific examples to support your
    response.
  • 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?
  •  

5
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 2 Chapter 3 Solution
  • STRAYER FIN 534 Week 2 DQ 1
  • 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.
  • . 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.

6
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 2 DQ 2
  • STRAYER FIN 534 Week 3 Chapter 4 Solution
  • 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.
  • 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.

7
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 3 Chapter 5 Solution
  • STRAYER FIN 534 Week 3 DQ 1
  • 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?

8
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 3 DQ 2
  • STRAYER FIN 534 Week 3 Quiz 2
  • 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.
  • 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.com
  • STRAYER FIN 534 Week 4 Chapter 6 Solution
  • STRAYER FIN 534 Week 4 Chapter 7 Solution
  • 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.
  • d. If a stock has a required rate of return rs
    12, and if its dividend is expected to grow at a
    constant rate of 5, this implies that the
    stocks dividend yield is also 5.
  • . 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.com
  • STRAYER FIN 534 Week 4 DQ 1
  • STRAYER FIN 534 Week 4 DQ 2
  • 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.

11
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 4 Quiz 3
  • STRAYER FIN 534 Week 5 Chapter 8 Solution
  • 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.
  • )      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

12
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 5 Chapter 9 Solution
  • STRAYER FIN 534 Week 5 DQ 1
  • 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.
  • 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?

13
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 5 Quiz 4
  • STRAYER FIN 534 Week 6 Chapter 10 Solution
  • 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.
  • 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?

14
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 6 Chapter 11 Solution
  • STRAYER FIN 534 Week 6 DQ 1
  • Analyze the concept of stress test as applied
    to financial institutions and create a better
    alternative for assessing the viability of a
    financial institution.
  • 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.com
  • STRAYER FIN 534 Week 6 Quiz 5
  • STRAYER FIN 534 Week 7 Chapter 12 Solution
  • 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.
  • 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

16
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 7 Chapter 13 Solution
  • STRAYER FIN 534 Week 7 DQ 1
  • 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

17
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 7 DQ 2
  • STRAYER FIN 534 Week 7 Quiz 6
  • 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.  However,
    you believe that the economy is about to recover,
    and money costs and thus your WACC will also
    increase.  You also think that the projects will
    not be funded until the 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.com
  • STRAYER FIN 534 Week 8 Chapter 14 Solution
  • STRAYER FIN 534 Week 8 Chapter 15 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).
  • 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.com
  • STRAYER FIN 534 Week 8 DQ 1
  • STRAYER FIN 534 Week 8 DQ 2
  • 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.com
  • STRAYER FIN 534 Week 8 Quiz 7
  • STRAYER FIN 534 Week 9 Chapter 16 Solution
  • 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.
  • 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.

21
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 9 DQ 1
  • STRAYER FIN 534 Week 9 DQ 2
  • 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.com
  • STRAYER FIN 534 Week 9 Quiz 8
  • STRAYER FIN 534 Week 10 Chapter 17 Solution
  • 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?
  • 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

23
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 10 DQ 1
  • STRAYER FIN 534 Week 10 DQ 2
  • 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.com
  • STRAYER FIN 534 Week 10 Quiz 9
  • STRAYER FIN 534 Week 11 DQ 1
  • Reflect on the lessons learned during this class
    and discuss the most interesting or surprising
    thing you learned. Explain what made it so
  • 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

25
FIN 534 Potential Instructors / tutorialrank.com
  • STRAYER FIN 534 Week 11 DQ 2
  • STRAYER FIN 534 Week 11 Quiz 10
  •              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. 
  • 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.com
For More Best A Tutorials
www.tutorialrank.com
About PowerShow.com