1 / 35

FIN 571 Education on your terms-tutorialrank.com

For more course tutorials visit<br>www.tutorialrank.com<br>Question 1 The underlying assumption of the dividend growth model is that a stock is worth:<br>A. An amount computed as the next annual dividend divided by the required rate of return.<br>B. An amount computed as the next annual dividend divided by the market rate of return.<br>C. The same amount computed as any other stock that pays the same current dividend and has the same required rate of return.

CramondDoors
Download Presentation

FIN 571 Education on your terms-tutorialrank.com

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FIN 571 Education on your terms/tutorialrank.com

  2. FIN 571Education on your terms/tutorialrank.com FIN 571 Final Exam Guide (New, 2017) For more course tutorials visit www.tutorialrank.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.

  3. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 1 DQ 1 (UOP Course) For more course tutorials visit www.tutorialrank.com What is ethics? If you follow all applicable rules and regulations, are you an ethical person?

  4. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 1 DQ 2 (UOP Course) For more course tutorials visit www.tutorialrank.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 firm’s liabilities (relative to the book value of liabilities)?

  5. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 1 Financial Ratio Analysis For more course tutorials visit www.tutorialrank.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.

  6. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 1 Individual Assignment Business Structures For more course tutorials visit www.tutorialrank.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.

  7. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 2 DQ 1 (UOP Course) For more course tutorials visit www.tutorialrank.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 firm’s 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 markets. What happens to the price an investor who is

  8. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 2 DQ 2 (UOP Course) For more course tutorials visit www.tutorialrank.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

  9. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 2 Individual Assignment Business Structure Advice For more course tutorials visit www.tutorialrank.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.

  10. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 2 Individual Assignment Ethics and Finance For more course tutorials visit www.tutorialrank.com 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).

  11. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 2 Individual Assignment Ratio Analysis Problems For more course tutorials visit www.tutorialrank.com 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 class discussion section below by the due date. 1. Analysis of cost of goods sold problem. 1992 1993 1994

  12. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 2 Stock Valuation and Analysis For more course tutorials visit www.tutorialrank.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. Assignment Steps

  13. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 3 DQ 1 (UOP Course) For more course tutorials visit www.tutorialrank.com Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons.

  14. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 3 DQ 2 (UOP Course) For more course tutorials visit www.tutorialrank.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

  15. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 3 Individual Assignment Interpreting Financial Results For more course tutorials visit www.tutorialrank.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:

  16. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 3 Researching Industry Financial Statistics For more course tutorials visit www.tutorialrank.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.

  17. FIN 571Education on your terms/tutorialrank.com • FIN 571 Week 3 Team Assignment Financial Statement Interpretation • For more course tutorials visit • www.tutorialrank.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

  18. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 3 Using the Payback Method, IRR, and NPV For more course tutorials visit www.tutorialrank.com The 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.

  19. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 4 Assignment Rate of Return for Stocks and Bonds For more course tutorials visit www.tutorialrank.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.

  20. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 4 DQ 1 (UOP Course) For more course tutorials visit www.tutorialrank.com A firm uses a single discount rate to compute the NPV of all its potential capital budgeting projects, even though the projects have a wide range of nondiversifiable risk. The firm then undertakes all those projects that appear to have positive NPVs. Briefly explain why such a firm would tend to become riskier over time.

  21. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 4 DQ 2 (UOP Course) For more course tutorials visit www.tutorialrank.com Tutorial Purchased: 1 Times, Rating: No rating 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 project’s 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 project’s life. Assuming you have a choice between depreciation methods, whose advice should you follow? Why?

  22. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 4 Individual Assignment Analyzing Pro Forma Statements For more course tutorials visit www.tutorialrank.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. Discuss and interpret the financials in relation to the initiative. Make recommendations on potential discretionary financing needs.

  23. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 4 Team Assignment Operating Leverage and Forecasting For more course tutorials visit www.tutorialrank.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

  24. FIN 571Education on your terms/tutorialrank.com • FIN 571 Week 5 Assignment Capital Market Efficiency Paper • For more course tutorials visit • www.tutorialrank.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.

  25. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 5 Assignment Effect of Debt Issuance on Stock Valuation For more course tutorials visit www.tutorialrank.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 Resources:Corporate Finance

  26. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 5 DQ 1 (UOP Course) For more course tutorials visit www.tutorialrank.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?

  27. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 5 DQ 2 (UOP Course) For more course tutorials visit www.tutorialrank.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.

  28. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 5 Individual Assignment DCF and WACC Problems For more course tutorials visit www.tutorialrank.com 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.

  29. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 5 Team Assignment Capital Budgeting Assignment, Part 1 (New Heritage Doll) For more course tutorials visit www.tutorialrank.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.

  30. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 5 Working Capital Simulation Managing Growth, Part 1 (SNC) For more course tutorials visit www.tutorialrank.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.

  31. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 6 Assignment start-up company Signature Assignment (score 80%) For more course tutorials visit www.tutorialrank.com About Your Signature Assignment: This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments may be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.

  32. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 6 Individual Assignment Working Capital Simulation Managing Growth Assignment For more course tutorials visit www.tutorialrank.com Resources: Harvard Business Publishing: Working Capital Simulation: Managing Growth Assignment Ch. 1 - 21 ofFundamentals of Corporate Finance WileyPLUS Assignments All additional resources from each week

  33. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 6 Team Assignment Capital Budgeting Assignment, Part 2 (New Heritage Doll) For more course tutorials visit www.tutorialrank.com The executive team of New Heritage Doll has completed the decision making for capital budgeting for the firm. Now the team must decide which decisions and approach were the best for the company. The executive team must create a presentation to be given to the board members of New Heritage Doll Compare the decisions and results of all members of the team.

  34. FIN 571Education on your terms/tutorialrank.com FIN 571 Week 6 Working Capital Simulation Managing Growth, Part 2 (SNC) For more course tutorials visit www.tutorialrank.com The executive team of New Heritage Doll has completed the decision making for capital budgeting for the firm. Now the team must decide which decisions and approach were the best for the company. The executive team must create a presentation to be given to the board members of SNC. Compare the decisions and results of all members of the team.

  35. FIN 571Education on your terms/tutorialrank.com

More Related