FIN 534 (Str) Doing by learn/newtonhelp.com

1. FIN 534 (Str) Doing by learn/newtonhelp.com

2. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Entire Course (Str Course) For more course tutorials visit www.newtonhelp.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

3. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Final Exam Set 1 (4 Sets) For more course tutorials visit www.newtonhelp.com FIN 534 Final Exam Part 1 Set 1 • Question 1 BLW Corporation is considering the terms to be set on the options it plans to issue to its executives. Which of the following actions would decrease the value of the options, other things held constant?

4. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Final Exam Set 2 (4 Sets) For more course tutorials visit www.newtonhelp.com FIN 534 Final Exam Part 2 Set 1 • Question 1 Which of the following is NOT normally regarded as being a good reason to establish an ESOP?

5. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 1 Chapter 1 Solution (Str Course) For more course tutorials visit www.newtonhelp.com Which of the following statements is CORRECT? 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 one’s 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.

6. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 1 Chapter 2 Solution (Str Course) For more course tutorials visit www.newtonhelp.com Which of the following statements is CORRECT? a. Typically, a firm’s DPS should exceed its EPS. b. Typically, a firm’s 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. e. The more depreciation a firm has in a given year, the higher its EPS, other things held constant.

7. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 1 DQ 1 (Str Course) For more course tutorials visit www.newtonhelp.com 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.

8. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 1 DQ 2 (Str Course) For more course tutorials visit www.newtonhelp.com 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.

9. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 1 Quiz 1 (Str Course) For more course tutorials visit www.newtonhelp.com 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? 1) This is an example of an exchange of physical assets. 2) This is an example of a primary market transaction.

10. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 2 Chapter 3 Solution (Str Course) For more course tutorials visit www.newtonhelp.com Which of the following statements is CORRECT? 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.

11. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 2 DQ 1 (Str Course) For more course tutorials visit www.newtonhelp.com 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.

12. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 2 DQ 2 (Str Course) For more course tutorials visit www.newtonhelp.com 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.

13. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 3 Chapter 4 Solution (Str Course) For more course tutorials visit www.newtonhelp.com 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. c. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. d. The last payment would have a higher proportion of interest than the first payment. e. The proportion of interest versus principal repayment would be the same for each of the 7 payments.

14. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 3 Chapter 5 Solution (Str Course) For more course tutorials visit www.newtonhelp.com 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? a. Bond A’s current yield will increase each year. b. Since the bonds have the same YTM, they should all have the same price, and since interest rates are not expected to change, their prices should all remain at their current levels until maturity. c. Bond C sells at a premium (its price is greater than par), and its price is expected to increase over the next year. d. Bond A sells at a discount (its price is less than par), and its price is expected to increase over the next year.

15. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 3 DQ 1 (Str Course) For more course tutorials visit www.newtonhelp.com 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.

16. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 3 DQ 2 (Str Course) For more course tutorials visit www.newtonhelp.com Week 3 discussion 2 Discuss the impact of Standard & Poor’s 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.

17. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 3 Quiz 2 (Str Course) For more course tutorials visit www.newtonhelp.com Question 1 Which of the following statements is CORRECT? 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. b. Interest paid to an individual is counted as income for tax purposes and taxed at the individual’s regular tax rate, which in 2008 could go up to 35%, but dividends received were taxed at a maximum rate of 15%.

18. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 4 Chapter 6 Solution (Str Course) For more course tutorials visit www.newtonhelp.com Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio. 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.

19. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 4 Chapter 7 Solution (Str Course) For more course tutorials visit www.newtonhelp.com 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. 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 stock’s dividend yield is also 5%.

20. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 4 DQ 1 (Str Course) For more course tutorials visit www.newtonhelp.com Week 4 discussion 1 Drawing on what you discovered in the e-Activity, discuss how instances of corporate mismanagement or fraud should be taken into account when assessing the risks associated with certain types of investments. 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.

21. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 4 DQ 2 (Str Course) For more course tutorials visit www.newtonhelp.com 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.

22. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 4 Quiz 3 (Str Course) For more course tutorials visit www.newtonhelp.com Which of the following statements is CORRECT? 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 4) Time lines can only be constructed for annuities where the payments occur at the ends of the periods, i.e., for ordinary annuities 5) Time lines cannot be constructed where some of the payments constitute an annuity but others are unequal and thus are not part of the annuity

23. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 5 Chapter 8 Solution (Str Course) For more course tutorials visit www.newtonhelp.com 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. d. LEAPS are very short-term options that were created relatively recently and now trade in the market.

24. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 10 Chapter 17 Solution (Str Course) For more course tutorials visit www.newtonhelp.com . 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? a. The yen-dollar spot exchange rate equals the yen-dollar exchange rate in the 90-day forward market. b. The yen-dollar spot exchange rate equals the yen-dollar exchange rate in the 180-day forward market.

25. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 10 DQ 1 (Str Course) For more course tutorials visit www.newtonhelp.com 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.

26. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 10 DQ 2 (Str Course) For more course tutorials visit www.newtonhelp.com Week 10 discussion 2 Recommend three policy changes that would make the Federal Reserve’s job of controlling U.S. interest rates easier. Explain your reasoning.

27. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 10 DQ 2 (Str Course) For more course tutorials visit www.newtonhelp.com Week 10 discussion 2 Recommend three policy changes that would make the Federal Reserve’s job of controlling U.S. interest rates easier. Explain your reasoning.

28. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 11 DQ 1 (Str Course) For more course tutorials visit www.newtonhelp.com 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.

29. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 11 DQ 2 (Str Course) For more course tutorials visit www.newtonhelp.com 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?

30. FIN 534 (Str) Doing by learn/newtonhelp.com FIN 534 Week 11 Quiz 10 (Str Course) For more course tutorials visit www.newtonhelp.com Finance 534 week 11 quiz 10 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. The terms were net 6 months.

31. FIN 534 (Str) Doing by learn/newtonhelp.com