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FIN 534 Course Success is a Tradition - snaptutorial.com

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For more classes visit www.snaptutorial.com FIN 534 Week 1 Chapter 1 Solution FIN 534 Week 1 Chapter 2 Solution FIN 534 Week 2 Chapter 3 Solution FIN 534 Week 3 Chapter 4 Solution FIN 534 Week 3 Chapter 5 Solution FIN 534 Week 4 Chapter 6 Solution FIN 534 Week 4 Chapter 7 Solution FIN 534 Week 5 Chapter 8 Solution FIN 534 Week 5 Chapter 9 Solution FIN 534 Week 6 Chapter 10 Solution FIN 534 Week 6 Chapter 11 Solution FIN 534 Week 7 Chapter 12 Solution – PowerPoint PPT presentation

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Title: FIN 534 Course Success is a Tradition - snaptutorial.com


1
FIN 534 Course Success is a Tradition
-snaptutorial.com
For More Tutorials
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2
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Entire Course
  • FIN 534 Week 1 Chapter 1 Solution
  • FIN 534 Week 1 Chapter 1 Solution
  • FIN 534 Week 1 Chapter 2 Solution
  • FIN 534 Week 2 Chapter 3 Solution
  • FIN 534 Week 3 Chapter 4 Solution
  • FIN 534 Week 3 Chapter 5 Solution
  • 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 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 1 Chapter 2 Solution
  • 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.
  • 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 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 1 DQ 2
  • FIN 534 Week 1 Quiz 1
  • Week 1 discussion 2
  •  Discuss ways that the basic concepts we have
    discussed in this chapter directly impact your
    life. Provide specific examples to support your
    response.
  • 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?

5
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 2 Chapter 3 Solution
  • FIN 534 Week 2 DQ 1
  • 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.
  • Week 2 discussion 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.

6
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 2 DQ 2
  • FIN 534 Week 3 Chapter 4 Solution
  • Week 2 discussion 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.
  • 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.

7
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 3 Chapter 5 Solution
  • FIN 534 Week 3 DQ 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?
  • Week 3 discussion 1
  •  Starting with your current situation, describe
    what you must do to ensure an annual retirement
    income of 60,000 starting at age 65.

8
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 3 DQ 2
  • FIN 534 Week 3 Quiz 2
  • Week 3 discussion 2
  •  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.
  • 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.

9
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 4 Chapter 6 Solution
  • FIN 534 Week 4 Chapter 7 Solution
  • 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.
  • 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.

10
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 4 DQ 1
  • FIN 534 Week 4 DQ 2
  • 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.
  • Week 4 discussion 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.

11
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 4 Quiz 3
  • FIN 534 Week 5 Chapter 8 Solution
  • 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
  • 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.

12
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 5 Chapter 9 Solution
  • FIN 534 Week 5 DQ 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 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.

13
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 5 Quiz 4
  • FIN 534 Week 6 Chapter 10 Solution
  • 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?
  • 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.

14
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 6 Chapter 11 Solution
  • FIN 534 Week 6 DQ 1
  • 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.
  • Week 6 discussion 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.

15
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 6 Quiz 5
  • FIN 534 Week 7 Chapter 12 Solution
  • Finance 534 week 6 Quiz5
  •  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?
  • 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.

16
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 7 Chapter 13 Solution
  • FIN 534 Week 7 DQ 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?
  • Week 7 discussion 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.

17
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 7 DQ 2
  • FIN 534 Week 7 Quiz 6
  • Week 7 discussion 2
  •  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.
  • 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.

18
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 8 Chapter 14 Solution
  • FIN 534 Week 8 Chapter 15 Solution
  • 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.
  • 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.

19
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 8 DQ 1
  • FIN 534 Week 8 DQ 2
  • Week 8 discussion 1
  •  I examined PepsiCo to determine how it should
    address its free cash flow, either through
    distributions to shareholders or repurchasing of
    stock.
  • Week 8 discussion 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

20
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 8 Quiz 7
  • FIN 534 Week 9 Chapter 16 Solution
  • Finance 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.
  • Swim Suits Unlimited is in a highly seasonal
    business, and the following summary balance sheet
    data show its assets and liabilities at peak and
    off-peak seasons (in thousands of dollars)
  •   Peak Off-Peak
  •   Cash 50 30

21
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 9 DQ 1
  • FIN 534 Week 9 DQ 2
  • Week 9 discussion 1
  •  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.
  • Week 9 discussion 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.

22
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 9 Quiz 8
  • FIN 534 Week 10 Chapter 17 Solution
  • 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.
  • 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.

23
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 10 DQ 1
  • FIN 534 Week 10 DQ 2
  • Week 10 discussion 1
  •  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.
  • Week 10 discussion 2
  •  Recommend three policy changes that would make
    the Federal Reserves job of controlling U.S.
    interest rates easier. Explain your reasoning.

24
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 10 Quiz 9
  • FIN 534 Week 11 DQ 1
  • Question 14
  •  Which of the following statements is CORRECT?
  •  Answer
  •  Question 15
  • A lockbox plan is
  • Week 11 discussion 1
  •  Reflect on the lessons learned during this class
    and discuss the most interesting or surprising
    thing you learned. Explain what made it so.

25
FIN 534 Course Success is a Tradition
-snaptutorial.com
  • FIN 534 Week 11 DQ 2
  • FIN 534 Week 11 Quiz 10
  • Week 11 discussion 2
  •  Discuss how you plan on using what you learned
    in this course in your current or future
    position. What will prove to be the most
    valuable?
  • 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.

26
FIN 534 Course Success is a Tradition
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