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FIN 571 GENIUS EXPECT SUCCESS /F

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FIN 571 ENTIRE COURSE

FIN 571 Week 1 Individual Practice Quiz


FIN 571 Week 1 Individual Assignment Business Structures
FIN 571 Week 1 DQ 1
FIN 571 Week 1 DQ 2
FIN 571 Week 2 Individual Assignment Business Structure Advice
FIN 571 Week 2 Learning Team Reflection
FIN 571 Week 2 Individual Practice Quiz
FIN 571 Week 2 Individual Assignment Ratio Analysis Problems
FIN 571 Week 2 DQ 1
FIN 571 Week 2 DQ 2

FIN 571 FINAL EXAM GUIDE (NEW)

Multiple Choice Question 51


Which of the following is considered a hybrid organizational for
m?
partnership
limited liability partnership
sole proprietorship
corporation
Multiple Choice Question 59
Which of the following is a principal within the agency relationsh
ip?
the board of directors
a company engineer

FIN 571 FINAL EXAM GUIDE 1 AND 2

FIN 571 Final Exam Guide 1


FIN 571 Final Exam Guide 2

FIN 571 FINAL EXAM GUIDE 1

) Which principle states that extraordinary returns are achievable with


new ideas?

2) Occurs when a "follower" receives the benefit of an expenditure ma


de by a "leader" by imitating the leader's behavior.

3) Occurs when inaccurate information can falsely exist.

4) The annual report refers to

FIN 571 FINAL EXAM GUIDE 2

1) Occurs when a "follower" receives the benefit of an expenditure ma


de by a "leader" by imitating the leader's behavior.

2) Occurs when inaccurate information can falsely exist.

3) Refers to situations wherein the agent can take unseen actions for p
ersonal benefit even though such actions are costly to the principal.
4) The annual report refers to

FIN 571 WEEK 1 CONNECT PROBLEMS (MATH AND ACCOUN


TING REVIEW)

FIN 571 Week 1 Connect Problems (Math & Accounting Review) 1. Func
tions Excel will make your life as a finance student much easier. This se
ction will show how to use various functions in Excel. Once you unders
tand 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?

FIN 571 WEEK 1 CONNECT PROBLEMS (WEEK 1 PROBLEM SE


T)

FIN 571 Week 1 Connect Problems (Week 1 Problem Set) 1.If a firm is c
urrently profitable, then: 2.Short-term finance deals with: 3.A stakehol
der is any person or entity: 4.Which one of these best fits the descripti
on of an agency cost? 5.The primary goal of financial management is to
: 6.Which one of the following business types is best suited to raising la
rge amounts of capital? 7.Accounting profits and cash flows are genera
lly: 8.Your credit card company charges you 1.00 percent per month. W
hat is the annual percentage rate on your account?

FIN 571 WEEK 1 DQ 1

What is ethics? If you follow all applicable rules and regulations, are yo
u an ethical person?

FIN 571 WEEK 1 DQ 2

Assume that interest rates have increased substantially. Would this ten
d 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 liabiliti
es)?

FIN 571 WEEK 1 INDIVIDUAL ASSIGNMENT BUSINESS STRUC


TURES

Watchthe "Your Business Structure" and "Corporate Business Structur


es" videos on the Electronics Reserve Readings page.
Identifythe different business structures.
Writea 350 to 700 word explanation of how each business structure
might and might not be advantageous.
Clickthe Assignment Files tab to submit your assignment.

FIN 571 WEEK 1 INDIVIDUAL PRACTICE QUIZ

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Multiple Choice Question 42

Which of the following business organizational forms subjects the owner(s) to un


limited liability?

a) sole proprietorship
b) partnership
c) corporation
d) a and b

Multiple Choice Question 44

Which of the following business organizational forms is easiest to raise capital?

FIN 571 WEEK 2 CONNECT PROBLEMS

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 lon
g-term debt of $14,400. What is the value of the shareholders' equity a
ccount for this firm? 2.Which one of the following assets is generally th
e most liquid? 3.Which one of the following accounts is included in stoc
kholders' equity? 4.It is easier to evaluate a firm using its financial stat
ements when the firm: 5.Which one of these accounts is classified as a
current asset on the balance sheet?

FIN 571 WEEK 2 DQ 1

In order to receive proper credit, please reply to this message when po


sting your answers to WK2 DQ1.

Suppose you own $1 million worth of 30-year Treasury bonds. Is t


his 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 is
sue of 90-day Treasury bills. Is this investment riskless?
Can you think of an asset that is truly riskless?

FIN 571 WEEK 2 DQ 2

Supposerfis 5% andrMis 10%. According to the SML and the CAPM, an


asset with a beta of 2.0
has a required return ofnegative5% [= 5 2(10 5)]. Can this be pos
sible? Does this mean that
the asset has negative risk? Why would anyone ever invest in an asset t
hat has an expected and
required return that is negative? Explain

FIN 571 WEEK 2 INDIVIDUAL ASSIGNMENT BUSINESS STRUCT


URE ADVICE

Writea 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 ta
ke on partners. I am interested and willing to learn the intricacies of m
y options to determine how to best proceed with my plan.
Please advise on what my options are, the advantages and disadvantag
es of each, and possible tax consequences for each scenario?

FIN 571 WEEK 2 INDIVIDUAL ASSIGNMENT ETHICS AND FIN


ANCE

The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the E
nron scandal and other instances of accounting fraud. This act was pas
sed to strengthen the role of the Securities and Exchange Commission
(SEC). Research a case of corporate financial abuse related to the Sarba
nes-Oxley Act of 2002 and apply this to your current work or desired pl
ace of employment. Create a 1,400-word analysis of the application of
SOX in which you include the following: Discuss the mistakes made by t
he company and their leadership.

FIN 571 WEEK 2 INDIVIDUAL ASSIGNMENT RATIO ANALYSIS PROBLEMS

Ratio Analysis Problems


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 clas
s discussion section below by the due date.
1.Analysis of cost of goods sold problem.
199219931994
Gross Profit Margin 60%55%5
1%

FIN 571 WEEK 2 INDIVIDUAL PRACTICE QUIZ

Multiple Choice Question 53

Which one of the following statements about trend analysis is NOT cor
rect?

It allows management to examine each ratio over time and determine


whether the trend is good or bad for the firm.
This benchmark is based on a firm's historical performance.
The Standard Industrial Classification (SIC) System is used to identify b
enchmark firms.
All of these are true statements.

FIN 571 WEEK 2 LEARNING TEAM REFLECTION

Week 6
Homework
Complete the following problems. You should do this work in excel. A s
et of ungraded practice problems similar to the homework is provided
in the week six material to help you do this assignment.
Please post your answers in the classroom discussion section underne
ath the week six assignment.
1.Net Present Value: Johnson Complex Fabrications is a metal parts ma
nufacturing company. It has developed a new process for producing ex
truded aluminum tubing. The process requires $1,968,450 initial invest
ment. It expected to have a life of five years and would produce net ca
sh inflows for each of the next five years: year 1 $512,496; year 2 $242,
637; year 3 $814,558; year 4 $887,225 and year 5 $712,642.

FIN 571 WEEK 3 CONNECT PROBLEMS

FIN 571 Week 3 Connect Problems If the Garnett Corp. has a 15 percen
t 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 perce
nt, what is its sustainable growth rate 2.The most recent financial state
ments for Williamson, Inc., are shown here Assets and costs are propo
rtional to sales. Debt and equity are not. No dividends are paid. Next y
ears sales are projected to be $8,418. What is the external financing n
eeded? 3.The maximum rate at which a firm can grow while maintainin
g a constant debt-equity ratio is best defined by its: 4.Financial plannin
g, when properly executed:

FIN 571 WEEK 3 DQ 1

Why are interest rates on short-term loans not necessarily comparable


to each other? Give threepossible reasons.

FIN 571 WEEK 3 DQ 2

Optical Supply Company offers credit terms of 2/10, net 60. If Optical S
upply is considering a change in its credit terms to one of those indicat
ed, 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

FIN 571 WEEK 3 LEARNING TEAM REFLECTION

Watchthe "Concept Review Video: Working Capital Management" vide


o located in theWileyPLUS Assignment: Week 3 Videos Activity.

Discussstrategies these business owners used to manage their workin


g capital.
Writea 350-700 word summary of your discussion.
Clickthe Assignment Files tab to submit your assignment.

FIN 571 WEEK 4 CONNECT PROBLEMS

FIN 571 Week 4 Connect Problems 1.Even though most corporate bond
s in the United States make coupon payments semiannually, bonds iss
ued elsewhere often have annual coupon payments. Suppose a Germa
n company issues a bond with a par value of 1,000, 20 years to maturi
ty, 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? 2.Microhard has i
ssued a bond with the following characteristics: Calculate the price of t
his bond if the YTM is : 3.Yan Yan Corp.

FIN 571 WEEK 4 DQ 1

A firm uses a single discount rate to compute the NPV of all its potenti
al capital budgeting projects, even though the projects have a wide ran
ge of nondiversifiable risk. The firm then undertakes all those projects
that appear to have positive NPVs. Briefly explain why such a firm woul
d tend to become riskier over time.

FIN 571 WEEK 4 INDIVIDUAL ASSIGNMENT ANALYZING PRO FORMA STATEMENTS

Decideupon an initiative you want to implement that would increase s


ales over the next five years, (for example, market another product, co
rporate expansion, and so on).
Usingthe sample financial statements, create pro forma statements of
five year projections that are clear, concise, and easy to read. Be sure t
o double check the calculations in your pro forma statements. Make as
sumptions that support each line item increase or decrease for your fo
recasted statements

FIN 571 WEEK 4 INDIVIDUAL PRACTICE QUIZ

Multiple Choice Question 66

Present value: Tommie Harris is considering an investment that p


ays 6.5 percent annually. How much must he invest today such t
hat he will have $25,000 in seven years? (Round to the nearest d
ollar.)

Multiple Choice Question 61

FIN 571 WEEK 4 LEARNING TEAM REFLECTION

Watchthe "Concept Review Video: Stock Valuation" video located in th


e WileyPLUS Assignment: Week 4 Videos Activity.
Discusshow markets and investors value a stock.
Writea 350-700 word summary of your discussion.
Clickthe Assignment Files tab to submit your assignment.

FIN 571 WEEK 4 TEAM ASSIGNMENT OPERATING LEVERAGE AND FORECASTING

Operating Leverage and Forecasting Problems Team Assignment


Please complete the following problems. When calculating earnings pe
r share and PE ratios, please show your work.This problem is simila
r to the examples shown in the lecture.
You manufacture hunting pack systems in China for 80 dollars each, in
cluding shipping. The manufacturing costs only include variable costs.
Variable costs are not calculated as a percentage of sales in this case.

FIN 571 WEEK 5 INDIVIDUAL ASSIGNMENT DCF AND WACC PROBLEMS

Please post the answers (and show your work) in the assignment
s section by midnight the last day of the week assigned.

Calculate the future value of 1,535 invested today for 8 years at 6 perc
ent.
(5 points)

What is the total present value of the following cash stream, discounte
d at 8 percent? (5 points)

FIN 571 WEEK 5 INDIVIDUAL PRACTICE QUIZ

Multiple Choice Question 55

Genaro needs to capture a return of 40 percent for his one-year invest


ment in a property. He believes that he can sell the property at the end
of the year for $150,000 and that the property will provide him with re
ntal income of $25,000. What is the maximum amount that Genaro sho
uld be willing to pay for the property?

FIN 571 WEEK 5 INDIVIDUAL WILEYPLUS ASSIGNMENT

Problem 5.17
Your finance text book sold 53,250 copies in its first year. The publishin
g company expects the sales to grow at a rate of 20 percent for the nex
t three years, and by 10 percent in the fourth year. Calculate the total n
umber of copies that the publisher expects to sell in year 3 and 4. (If yo
u solve this problem with algebra round intermediate calculations to 6
decimal places, in all cases round your final answers to the nearest wh
ole number.)

FIN 571 WEEK 5 LEARNING TEAM REFLECTION

Watchthe "Concept Review Video: Cost of Capital" video located in the


WileyPLUS Assignment: Week 5 Videos Activity.
Discusssome of the corporate finance challenges faced by this compa
ny.
Writea 350-700 word summary of your discussion.
Clickthe Assignment Files tab to submit your assignment.
.

FIN 571 WEEK 6 INDIVIDUAL ASSIGNMENT HOMEWORK PROBLEMS

Complete the following problems. You should do this work in exce


l. A set of ungraded practice problems similar to the homework is
provided in the week six material to help you do this assignment.

Please post your answers in the classroom discussion section unde


rneath the week six assignment.

1.Net Present Value: Johnson Complex Fabrications is a metal parts manu


facturing company. It has developed a new process for producing extrud
ed aluminum tubing. The process requires $1,968,450 initial investment.
It expected to have a life of five years and would produce net cash inflows
for each of the next five years: year 1 $512,496; year 2 $242,637; year 3 $
814,558; year 4 $887,225 and year 5 $712,642.

FIN 571 WEEK 6 INDIVIDUAL ASSIGNMENT WORKING CAPITAL SIMULATION MANA


GING GROWTH ASSIGNMENT

Resources:
Harvard Business Publishing: Working Capital Simulation: Managing Gr
owth Assignment
Ch. 1 - 21 ofFundamentals of Corporate Finance
WileyPLUS Assignments
All additional resources from each week
Reviewthe following scenario:

FIN 571 WEEK 6 INDIVIDUAL PRACTICE QUIZ

Multiple Choice Question 55


Planning models that are more sophisticated than the percent of
sales method have
working capital accounts like inventory, accounts receivables, an
d accounts payables vary directly with sales.
fixed assets that do not always vary directly with sales.
all of these are true.
all variable costs change directly with sales.

FIN 571 WEEK 6 LEARNING TEAM REFLECTION

Watch the "Corporate Finance Video: Stable Money Makers" located in


the WileyPLUS Assignment: Week 6 Videos Activity.
Identify a capital improvement that could help Betty with her Alpaca b
usiness.
Write a summary of no more than 700 words explaining how the capita
l improvement you identified could help the business.
Click the Assignment Files tab to submit your assignment.

FIN 571 WEEK 6 LEARNING TEAM REFLECTION

Watchthe "Corporate Finance Video: Stable Money Makers" located in


the WileyPLUS Assignment: Week 6 Videos Activity.
Identifya capital improvement that could help Betty with her Alpaca b
usiness.
Writea summary of no more than 700 words explaining how the capit
al improvement you identified could help the business.
Clickthe Assignment Files tab to submit your assignment.

FIN 571 GENIUS EXPECT SUCCESS /F


IN571GENIUSDOTCOM
FOR MORE CLASSES VISIT
www.fin571genius.com

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