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  1. FIN 571 Course Material – fin571dotcom

  2. FIN 571 Course Material FIN 571 Entire Course FIN 571 Entire Course And Final Guide FIN 571 Entire Course And Final Guide • 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

  3. FIN 571 Course Material FIN 571 Final Exam Guide (New) FIN 571 Final Exam Guide 1 and 2 FIN 571 Final Exam Guide 1 FIN 571 Final Exam Guide 2 • Multiple Choice Question 51 • Which of the following is considered a hybrid organizational form? • partnership • limited liability partnership • sole proprietorship • corporation • Multiple Choice Question 59

  4. FIN 571 Course Material FIN 571 Final Exam Guide 1 FIN 571 Final Exam Guide 2 1) Occurs when a "follower" receives the benefit of an expenditure made 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 personal benefit even though such actions are costly to the principal. 4) The annual report refers to • 1) Which principle states that extraordinary returns are achievable with new ideas? • 2) Occurs when a "follower" receives the benefit of an expenditure made by a "leader" by imitating the leader's behavior. • 3) Occurs when inaccurate information can falsely exist. • 4) The annual report refers to • 5) Remaining maturity refers to: • 6) Generally accepted accounting principles (GAAP) refers to

  5. FIN 571 Course Material FIN 571 Week 1 DQ 1 FIN 571 Week 1 DQ 2 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)? • What is ethics? If you follow all applicable rules and regulations, are you an ethical person?

  6. FIN 571 Course Material FIN 571 Week 1 Individual Assignment Business Structures FIN 571 Week 1 Individual Practice Quiz Multiple Choice Question 42 Which of the following business organizational forms subjects the owner(s) to unlimited liability? a) sole proprietorship b) partnership c) corporation d) a and b • 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. • Click the Assignment Files tab to submit your assignment.

  7. FIN 571 Course Material FIN 571 Week 2 DQ 1 FIN 571 Week 2 DQ 2 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 required return that is negative? Explain • In order to receive proper credit, please reply to this message when posting your answers to WK2 DQ1. •  Suppose you own $1 million worth of 30-year Treasury bonds. Is this 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 issue of 90-day Treasury bills. Is this investment riskless? • Can you think of an asset that is truly riskless?

  8. FIN 571 Course Material FIN 571 Week 2 Individual Assignment Business Structure Advice 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 class discussion section below by the due date. • 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.

  9. FIN 571 Course Material FIN 571 Week 2 Individual Practice Quiz FIN 571 Week 2 Learning Team Reflection Read the Ethics case, "A Sad Tale: The Demise of Arthur Anderson" located in the WileyPLUS Week Fundamentals of Corporate Finance Chapter readings. Discuss the mistakes made by Arthur Anderson and potential actions that leadership could have taken to prevent the organizational failure. Write a 350- to 700-word summary of your discussion. Click the Assignment Files tab to submit your assignment. • Multiple Choice Question 53 • Which one of the following statements about trend analysis is NOT correct? • 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.

  10. FIN 571 Course Material FIN 571 Week 3 DQ 1 FIN 571 Week 3 DQ 2 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 • Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons.

  11. FIN 571 Course Material FIN 571 Week 3 Individual Assignment Interpreting Financial Results FIN 571 Week 3 Individual Practice Quiz Multiple Choice Question 32 The operating cycle ends not with the finished goods being sold to customers and the cash collected on the sales; but when you take into account the time taken by the firm to pay for its purchases. • 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:

  12. FIN 571 Course Material FIN 571 Week 3 Learning Team Reflection FIN 571 Week 4 DQ 1 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. • Watch the "Concept Review Video: Working Capital Management" video located in theWileyPLUS Assignment: Week 3 Videos Activity. • Discuss strategies these business owners used to manage their working capital. • Write a 350-700 word summary of your discussion. • Click the Assignment Files tab to submit your assignment.

  13. FIN 571 Course Material FIN 571 Week 4 DQ 2 FIN 571 Week 4 Individual Assignment 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. • 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?

  14. FIN 571 Course Material FIN 571 Week 4 Individual Practice Quiz FIN 571 Week 4 Learning Team Reflection Watch the "Concept Review Video: Stock Valuation" video located in the WileyPLUS Assignment: Week 4 Videos Activity. Discuss how markets and investors value a stock. Write a 350-700 word summary of your discussion. Click the Assignment Files tab to submit your assignment. • Multiple Choice Question 66 • Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he will have $25,000 in seven years? (Round to the nearest dollar.)

  15. FIN 571 Course Material FIN 571 Week 4 Team Assignment Operating Leverage and Forecasting FIN 571 Week 5 DQ 1 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? • 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 costs are not calculated as a percentage of sales in this case.

  16. FIN 571 Course Material FIN 571 Week 5 DQ 2 FIN 571 Week 5 Individual Assignment DCF and WACC Problems 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. Calculate the future value of 1,535 invested today for 8 years at 6 percent. (5 points) What is the total present value of the following cash stream, discounted at 8 percent? (5 points) • 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.

  17. FIN 571 Course Material FIN 571 Week 5 Individual Practice Quiz FIN 571 Week 5 Individual Wileyplus Assignment Problem 5.17 Problem 5.21 Problem 6.19 Problem 6.27 Problem 7.16 Problem 8.24 Problem 9.1 Problem 5.17 Your finance text book sold 53,250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent for the next three years, and by 10 percent in the fourth year. 5 • Multiple Choice Question 55 • Genaro needs to capture a return of 40 percent for his one-year investment 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 rental income of $25,000. What is the maximum amount that Genaro should be willing to pay for the property?

  18. FIN 571 Course Material FIN 571 Week 5 Learning Team Reflection FIN 571 Week 6 Individual Assignment Homework Problems Week 6 Homework Complete the following problems. You should do this work in excel. 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 underneath the week six assignment. • Watch the "Concept Review Video: Cost of Capital" video located in the WileyPLUS Assignment: Week 5 Videos Activity. • Discuss some of the corporate finance challenges faced by this company. • Write a 350-700 word summary of your discussion. • Click the Assignment Files tab to submit your assignment.

  19. FIN 571 Course Material FIN 571 Week 6 Individual Assignment 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, and accounts payables vary directly with sales. fixed assets that do not always vary directly with sales. • 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 • Review the following scenario:

  20. FIN 571 Course Material FIN 571 Week 6 Individual Wileyplus Assignment 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 business. Write a summary of no more than 700 words explaining how the capital improvement you identified could help the business. • Problem 10.14 • Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,968,450. Have a life of five years, and would produce the cash flows shown in the following table.

  21. FIN 571 Course Material