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FIN 571 Complete Class With Final Exam - Missing Week 6 Individual Working Capital Simulation: Managing Growth Assignment Check this A+ Guidelines at http://www.fin571assignment.com/fin-571/FIN-571-Entire-Course-new-With-Final-Exam-Missing-Week-6-Individual-Working-Capital-Simulation:-Managing-Growth-Assignment For more classes visit www.assignmentcloud.com FIN 571 Complete Class With Final Exam - Missing Week 6 Individual Working Capital Simulation: Managing Growth Assignment FIN 571 Foundations of Corporate Finance Guaranteed A+ Work, FIN 571 Complete Week 1 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Complete-Week-1-NEW For more classes visit www.fin571assignment.com FIN 571 Complete Week 1 NEW FIN 571 Week 1 DQ 1 NEW Minimizing risk is essential in the pursuit of maximizing profits. Why shouldn't a firm focus purely on maximizing profits without regard to risk? How does the management of risk play a role in the success of an organization? FIN 571 Week 1 DQ 2 What is ethics? If you follow all applicable rules and regulations, are you an ethical person? Why? FIN 571 Week 1 Individual Assignment Business Structures 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. FIN 571 Week 1 WileyPLUS Assignment 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 Multiple Choice Question 44 Which of the following business organizational forms is easiest to raise capital? a) sole proprietorship b) partnership c) corporation d) a and b Multiple Choice Question 50 Which organizational form best enables the owners of the firm to monitor the actions of other owners of the same firm? private corporation sole proprietorship partnership public corporation Multiple Choice Question 81 Which of the following factors or activities can be controlled by the management of the firm? Stock market conditions. Capital budgeting. The level of economic activity. The level of interest rates. Multiple Choice Question 82 The legal system and market forces impose substantial costs on individuals and institutions that engage in unethical behavior. Which of the following would not be an example of the above? Agency conflicts. Jail time. Financial losses. Legal fines. Multiple Choice Question 48 The most common reason that corporate firms use the futures and options markets is to make deposits. none of these. to hedge risk. to take risk. Multiple Choice Question 55 Galan Associates prepared its financial statement for 2008 based on the information given here. The company had cash worth $1,234, inventory worth $13,480, and accounts receivables of $7,789. The company's net fixed assets are $42,331, and other assets are $1,822. It had accounts payables of $9,558, notes payables of $2,756, common stock of $22,000, and retained earnings of $14,008. How much long-term debt does the firm have? $76,342 $18,334 $54,342 $12,314 Multiple Choice Question 59 Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199, inventory of $63,781, and cash of $21,461. It also had accounts payables of $51,369, short-term notes payables of $11,417, and accrued taxes of $6,145. The net working capital of the firm is None of these $68,931 $63,510 $69,655 Multiple Choice Question 81 Which of the following best represents cash flows to investors? Net income, minus dividends paid to preferred stockholders. Earnings before interest and taxes times 1 minus the firm’s tax rate. Cash flow from operating activity, plus cash flow generated from net working capital. Cash flow from operating activity, minus cash flow invested in net working capital, minus cash flow invested in long-term assets., FIN 571 Complete Week 2 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Complete-Week-2-NEW For more classes visit www.fin571assignment.com FIN 571 Complete Week 2 NEW FIN 571 Week 2 DQ 1 NEW Explain what benchmarks are, describe how they are prepared, and discuss why they are important in financial statement analysis. FIN 571 Week 2 DQ 2 NEW Financial Ratios and Firm Performance FIN 571 Week 2 DQ 3 NEW The DuPont System FIN 571 Week 2 Learning Team Reflection NEW 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. FIN 571 Week 2 Individual Business Structure Advice NEW 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. Please advise on what my options are, the advantages and disadvantages of each, and possible tax consequences for each scenario? Respectfully, John Owner Click the Assignment Files tab to submit your assignment. FIN 571 Week 2 WileyPLUS Practice Quiz NEW 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. The Standard Industrial Classification (SIC) System is used to identify benchmark firms. All of these are true statements. Multiple Choice Question 68 Coverage ratios: Sectors, Inc., has an EBIT of $7,221,643 and interest expense of $611,800. Its depreciation for the year is $1,434,500. What is its cash coverage ratio? None of these 14.15 times 15.42 times 18.34 times Multiple Choice Question 68 Multiples analysis: Turner Corp. has debt of $230 million and generated a net income of $121 million in the last fiscal year. In attempting to determine the total value of the firm, an investor identified a similar firm in Jacobs, Inc., an all-equity firm. This firm had 150 million shares outstanding, a share price of $14.25, and net income of $182 million. What is the total value of Turner Corp.? Round to the nearest million dollars. $1,715 million $1,651 million $1,421 million $1,191 million Multiple Choice Question 46 Coverage ratios, like times interest earned and cash coverage ratio, allow a firm's creditors to assess how well the firm will meet its interest obligations. a firm's creditors to assess how well the firm will meet its short-term liabilities other than interest expense. a firm's management to assess how well they meet short-term liabilities. a firm's shareholders to assess how well the firm will meet its short-term liabilities. Multiple Choice Question 54 Peer group analysis can be performed by a) management choosing a set of firms that are similar in size or sales, or who compete in the same market. b) using the average ratios of this peer group, which would then be used as the benchmark. c) identifying firms in the same industry that are grouped by size, sales, and product lines, in order to establish benchmark ratios. d) Only a and b relate to peer group analysis. Multiple Choice Question 61 Efficiency ratio: If Viera, Inc., has an accounts receivable turnover of 3.9 times and net sales of $3,436,812, what is its level of receivables? $13,403,567 $881,234 $1,340,357 $81,234, FIN 571 Complete Week 3 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Complete-Week-3-NEW For more classes visit www.fin571assignment.com FIN 571 Complete Week 3 NEW FIN 571 Week 3 DQ 1 NEW The Long-Term funding strategy relies on long-term debt to finance both capital assets and working capital. As a result, this strategy reduces risk since there is no need to consider refinancing assets since all funding is long term. How would a 'changing rate environment' impact the use of this strategy? FIN 571 Week 3 DQ 2 NEW Managers must think not only in terms of a trade-off or a pecking order theories but remain concerned with how their financing decisions will influence the practical issues that they must deal with when managing a business. Financial flexibility is an important consideration in many capital structure decisions. As you pointed out, managers must ensure that they retain sufficient financial resources in the firm to take advantage of unexpected opportunities as well as unforeseen problems. They try to manage their firms' capital structures in a way that limits the risk to a reasonable level. How can managers use leverage and control to support their capital structure decisions? FIN 571 Week 3 DQ 3 NEW Short term funding strategy involves various sources of short-term financing such as: Accounts payable (trade credit), bank loans, and commercial paper are common sources of short-term financing. Accounts payable constituted about 35 percent of total current liabilities for all publicly traded manufacturing firms. The buyer needs to figure out whether it makes financial sense to pay early and take advantage of the discount or to wait and pay in full when the account is due. Short-term bank loans accounted for about 20 percent of total current liabilities for all publicly traded manufacturing firms. An informal line of credit is a verbal agreement between the firm and the bank, allowing the firm to borrow up to an agreed-upon upper limit. In exchange for providing the line of credit, a bank may require that the firm holds acompensating balance with them. What are some other sources of short-term financing used with this strategy? FIN 571 Week 3 Individual Interpreting Financial Results NEW 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: • Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011). • Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company. Write a 500 to 750 word summary of your analysis. Show financial calculations where appropriate. Click the Assignment Files tab to submit your assignment. FIN 571 Week 3 Learning Team Reflection NEW 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. FIN 571 Week 3 WileyPLUS Practice Quiz NEW 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. To measure operating cycle we need another measure called the days' payables outstanding. begins when the firm receives the raw materials it purchased that would be used to produce the goods that the firm manufactures. begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales. Multiple Choice Question 57 You are provided the following working capital information for the Ridge Company: Ridge Company Account $ Inventory $12,890 Accounts receivable 12,800 Accounts payable 12,670 Net sales $124,589 Cost of goods sold 99,630 Operating cycle: What is the operating cycle for Ridge Company? 51 days 47 days 85 days 36 days Multiple Choice Question 80 Ticktock Clocks sells 10,000 alarm clocks each year. If the total cost of placing an order is $65 and it costs $85 per year to carry the alarm clock in inventory, use the EOQ formula to calculate the optimal order size. 26,154 clocks 24 clocks 15,294 clocks 161 clocks Multiple Choice Question 49 The asset substitution problem occurs when managers substitute less risky assets for riskier ones to the detriment of equity holders. managers substitute riskier assets for less risky ones to the detriment of bondholders. managers substitute less risky assets for riskier ones to the detriment of bondholders. managers substitute riskier assets for less risky ones to the detriment of equity holders. Multiple Choice Question 53 M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock. How much are your cash flows today? $4.50 $12.38 $150 $15 Multiple Choice Question 62 M&M Proposition 2: Melba's Toast has a capital structure with 30% debt and 70% equity. Its pretax cost of debt is 6%, and its cost of equity is 10%. The firm's marginal corporate income tax rate is 35%. What is the appropriate WACC? 6.35% 7.44% 8.80% 8.17% Multiple Choice Question 39 According to the text, the financial plan covers a period of ten years. none of these. one year. three to five years. Multiple Choice Question 45 The financing plan of a firm will indicate the firm's dividend policy, the desired capital structure for the firm, and the firm's working capital policy. the dollar amount of funds that has to be raised externally and the sources of funds available to the firm, the desired capital structure for the firm, and the firm's dividend policy. the dollar amount of funds that has to be raised externally and the sources of funds available to the firm, the desired capital structure for the firm, and the firm's working capital policy. the dollar amount of funds that has to be raised externally and the sources of funds available to the firm, the firm's dividend policy, and the firm's working capital policy. Multiple Choice Question 74 Payout and retention ratio: Tradewinds Corp. has revenues of $9,651,220, costs of $6,080,412, interest payment of $511,233, and a tax rate of 34 percent. It paid dividends of $1,384,125 to shareholders. Find the firm's dividend payout ratio and retention ratio. 25%, 75% 66%, 34% 34%, 66% 69%, 31%, FIN 571 Complete Week 4 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Complete-Week-4-NEW For more classes visit www.fin571assignment.com FIN 571 Complete Week 4 NEW FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor--often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW 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. Write a 350 - 700 word analysis of the company's short term and long term financing needs and determine strategies for the company to manage working capital. Click the Assignment Files tab to submit your assignment. FIN 571 Week 4 Learning Team Reflection NEW 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. FIN 571 Week 4 WileyPLUS Practice Quiz NEW 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.) $38,850 $23,474 $16,088 $26,625 Multiple Choice Question 61 PV of multiple cash flows: Jack Stuart has loaned money to his brother at an interest rate of 5.75 percent. He expects to receive $625, $650, $700, and $800 at the end of the next four years as complete repayment of the loan with interest. How much did he loan out to his brother? (Round to the nearest dollar.) $2,250 $2,545 $2,713 $2,404 Multiple Choice Question 63 PV of multiple cash flows: Hassan Ali has made an investment that will pay him $11,455, $16,376, and $19,812 at the end of the next three years. His investment was to fetch him a return of 14 percent. What is the present value of these cash flows? (Round to the nearest dollar.) $33,124 $36,022 $41,675 $39,208 Multiple Choice Question 65 PV of multiple cash flows: Pam Gregg is expecting cash flows of $50,000, $75,000, $125,000, and $250,000 from an inheritance over the next four years. If she can earn 11 percent on any investment that she makes, what is the present value of her inheritance? (Round to the nearest dollar.) $361,998 $309,432 $434,599 $412,372 Multiple Choice Question 66 Present value of an annuity: Transit Insurance Company has made an investment in another company that will guarantee it a cash flow of $37,250 each year for the next five years. If the company uses a discount rate of 15 percent on its investments, what is the present value of this investment? (Round to the nearest dollar.) $186,250 $101,766 $124,868 $251,154 Multiple Choice Question 71 Future value of an annuity: Carlos Menendez is planning to invest $3,500 every year for the next six years in an investment paying 12 percent annually. What will be the amount he will have at the end of the six years? (Round to the nearest dollar.) $28,403 $24,670 $26,124 $21,000 Multiple Choice Question 61 Bond price: Briar Corp is issuing a 10-year bond with a coupon rate of 7 percent. The interest rate for similar bonds is currently 9 percent. Assuming annual payments, what is the present value of the bond? (Round to the nearest dollar.) $990 $872 $1,066 $945 Multiple Choice Question 56 PV of dividends: Cortez, Inc., is expecting to pay out a dividend of $2.50 next year. After that it expects its dividend to grow at 7 percent for the next four years. What is the present value of dividends over the next five-year period if the required rate of return is 10 percent? $10.76 $11.50 $9.80 $11.88 Multiple Choice Question 59 PV of dividends: Givens, Inc., is a fast growing technology company that paid a $1.25 dividend last week. The company's expected growth rates over the next four years are as follows: 25 percent, 30 percent, 35 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 8 percent annually. If the required rate of return is 12 percent, what is the present value of the dividends over the fast growth phase? $6.46 $7.24 $8.37 $1.25, FIN 571 Complete Week 5 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Complete-Week-5-NEW For more classes visit www.fin571assignment.com FIN 571 Complete Week 5 NEW FIN 571 Week 5 DQ 1 NEW A postaudit review enables managers to determine whether a project's goals were met and to quantify the actual benefits or costs of the project. What are some other benefits of a post audit and ongoing reviews of capital projects? FIN 571 Week 5 DQ 2 NEW Discuss why capital budgeting decisions are the most important investment decisions made by a firm's management. FIN 571 Week 5 DQ 3 NEW The text discusses general rules for estimating incremental after-tax free cash flows. One rule is to include cash flows and only cash flows in your calculations. In other words, do not include allocated costs or overhead unless they reflect cash flows. What are some other rules to ensure the proper estimation of after-tax cash flows? FIN 571 Week 5 DQ 4 NEW Describe how distinguishing between variable and fixed costs can be useful in forecasting operating expenses. FIN 571 Week 5 Learning Team Reflection NEW 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. FIN 571 Week 5 WileyPLUS Assignment NEW Complete the following in WileyPLUS: •Problem 5.17 •Problem 5.21 •Problem 6.19 •Problem 6.27 •Problem 7.16 •Problem 8.24 •Problem 9.15 FIN 571 Week 5 WileyPLUS Practice Quiz NEW 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? $137,500 $125,000 $112,500 $150,000 Multiple Choice Question 54 The process of identifying the bundle of projects that creates the greatest total value and allocating the available capital to the projects is known as risk analysis. rationing. capital rationing. budgeting. Multiple Choice Question 78 Capital rationing. You are considering a project that has an initial cost of $1,200,000. If you take the project, it will produce net cash flows of $300,000 per year for the next six years. If the appropriate discount rate for the project is 10 percent, what is the profitability index of the project? 2.09 0.09 1.09 2.18 Multiple Choice Question 89 What might cause a firm to face capital rationing? If a firm rejects some capital investments that are expected to generate positive NPV’s. If investors require returns for their capital that are too high. If a firm has more than one project with a positive NPV. If a firm has several projects that are expected to generate negative IRR’s. Multiple Choice Question 59 How firms estimate their cost of capital: The WACC for a firm is 19.75 percent. You know that the firm is financed with $75 million of equity and $25 million of debt. The cost of debt capital is 7 percent. What is the cost of equity for the firm? 19.75% 32.50% 24.00% 58.00% Multiple Choice Question 61 The cost of debt: Bellamee, Inc., has semiannual bonds outstanding with five years to maturity and are priced at $920.87. If the bonds have a coupon rate of 7 percent, then what is the YTM for the bonds? 4.5% 9.0% 7.0% 9.2% Multiple Choice Question 63 The cost of debt: Beckham Corporation has semiannual bonds outstanding with 13 years to maturity and are currently priced at $746.16. If the bonds have a coupon rate of 8.5 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 35%? Assume that your calculation is made as on Wall Street 8.125% 12.890% 6.250% 12.500% Multiple Choice Question 67 The cost of equity: RadicalVenOil, Inc., has a cost of equity capital equal to 22.8 percent. If the risk-free rate of return is 10 percent and the expected return on the market is 18 percent, then what is the firm's beta if the firm's marginal tax rate is 35 percent? 4.10 1.0 1.28 1.60 Multiple Choice Question 83 Which type of project do financial managers typically use the highest cost of capital when evaluating? New product projects Efficiency projects Market expansion projects Extension projects, FIN 571 Final Exam 30/30 Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Final-Exam For more classes visit www.fin571assignment.com FIN 571 Final Exam 30/30 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 Which of the following is a principal within the agency relationship? the board of directors a company engineer the CEO of the firm a shareholder Multiple Choice Question 57 Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term debt does the firm have? $2,303,010 $2,123,612 $803,010 $1,844,022 Multiple Choice Question 78 Which of the following presents a summary of the changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period? The statement of net worth. The statement of retained earnings. The statement of cash flows. The statement of working capital. Multiple Choice Question 63 Efficiency ratio: Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's sales in inventory? 65.2 days 61.7 days 57.9 days 64.3 days Multiple Choice Question 70 Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio? 1.47 0 0.60 1.74 Multiple Choice Question 84 Which of the following is not a method of “benchmarking”? Evaluating a single firm’s performance over time. Conduct an industry group analysis. Identify a group of firms that compete with the company being analyzed. Utilize the DuPont system to analyze a firm’s performance. Multiple Choice Question 67 Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.) $22,680 $19,444 $16,670 $26,454 Multiple Choice Question 62 PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows—$450,000, $560,000, $750,000, $875,000, and $1,000,000. What is the present value of these payments? (Round to the nearest dollar.) $2,735,200 $2,815,885 $2,615,432 $2,431,224 Multiple Choice Question 64 PV of multiple cash flows: Ajax Corp. is expecting the following cash flows—$79,000, $112,000, $164,000, $84,000, and $242,000—over the next five years. If the company's opportunity cost is 15 percent, what is the present value of these cash flows? (Round to the nearest dollar.) $414,322 $480,906 $429,560 $477,235 Multiple Choice Question 72 Future value of an annuity: Jayadev Athreya has started on his first job. He plans to start saving for retirement early. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of 45 years? (Round to the nearest dollar.) $1,745,600 $2,667,904 $3,594,524 $5,233,442 Multiple Choice Question 57 Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend per year. What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.) 12% 32% 16% 40% Multiple Choice Question 62 Bond price: Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 6.875 percent. What should the company's bonds be priced at today? Assume annual coupon payments. (Round to the nearest dollar.) $1,014 $1,066 $923 $972 Multiple Choice Question 57 PV of dividends: Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its dividend by $0.25 in each of the following three years. If their required rate of return is 14 percent, what is the present value of their dividends over the next four years? $13.50 $9.72 $12.50 $11.63 Multiple Choice Question 79 Capital rationing. TuleTime Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the initial outlay for such a production is $1,500,000 and the appropriate discount rate is 6 percent for the cash flows, then what is the profitability index for the project? 1.11 0.11 1.90 0.90 Multiple Choice Question 88 What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects? The modified internal rate of return. The profitability index. The internal rate of return. The discounted payback. Multiple Choice Question 60 How firms estimate their cost of capital: The WACC for a firm is 13.00 percent. You know that the firm's cost of debt capital is 10 percent and the cost of equity capital is 20%. What proportion of the firm is financed with debt? 50% 70% 30% 33% Multiple Choice Question 68 The cost of equity: Gangland Water Guns, Inc., is expected to pay a dividend of $2.10 one year from today. If the firm's growth in dividends is expected to remain at a flat 3 percent forever, then what is the cost of equity capital for Gangland if the price of its common shares is currently $17.50? 15.00% 12.00% 15.36% 14.65% Multiple Choice Question 85 If a company's weighted average cost of capital is less than the required return on equity, then the firm: Is financed with more than 50% debt Is perceived to be safe Has debt in its capital structure Must have preferred stock in its capital structure Multiple Choice Question 32 A firm's capital structure is the mix of financial securities used to finance its activities and can include all of the following except stock. bonds. equity options. preferred stock. Multiple Choice Question 54 M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock. If Dynamo wishes to change its capital structure from 75 percent to 60 percent equity and use the debt proceeds to pay a special dividend to shareholders, how much debt should they issue? $600 $225 $321 $375 Multiple Choice Question 69 Multiple Analysis: Turnbull Corp. had an EBIT of $247 million in the last fiscal year. Its depreciation and amortization expenses amounted to $84 million. The firm has 135 million shares outstanding and a share price of $12.80. A competing firm that is very similar to Turnbull has an enterprise value/EBITDA multiple of 5.40. What is the enterprise value of Turnbull Corp.? Round to the nearest million dollars. $1,334 million $1,787 million $1,315 million $453.6 million Multiple Choice Question 86 External financing needed: Jockey Company has total assets worth $4,417,665. At year-end it will have net income of $2,771,342 and pay out 60 percent as dividends. If the firm wants no external financing, what is the growth rate it can support? 25.1% 32.9% 27.3% 30.3% Multiple Choice Question 46 Which of the following cannot be engaged in managing the business? none of these a sole proprietor a general partner a limited partner Multiple Choice Question 80 Which of the following does maximizing shareholder wealth not usually account for? Amount of Cash flows. The timing of cash flows. Risk. Government regulation. Multiple Choice Question 41 The strategic plan does NOT identify major areas of investment in real assets. future mergers, alliances, and divestitures. working capital strategies. the lines of business a firm will compete in. Multiple Choice Question 67 Firms that achieve higher growth rates without seeking external financing are highly leveraged. none of these. have less equity and/or are able to generate high net income leading to a high ROE. have a low plowback ratio. Multiple Choice Question 75 Payout and retention ratio: Drekker, Inc., has revenues of $312,766, costs of $220,222, interest payment of $31,477, and a tax rate of 34 percent. It paid dividends of $34,125 to shareholders. Find the firm's dividend payout ratio and retention ratio. 85%, 15% 15%, 85% 55%, 45% 45%, 55% Multiple Choice Question 30 The cash conversion cycle hows how long the firm keeps its inventory before selling it. estimates how long it takes on average for the firm to collect its outstanding accounts receivable balance. begins when the firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures. begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales. Multiple Choice Question 58 Ridge Company Account $ Inventory $12,890 Accounts receivable 12,800 Accounts payable 12,670 Net sales $124,589 Cost of goods sold 99,630 You are provided the following working capital information for the Ridge Company: Cash conversion cycle: What is the cash conversion cycle for Ridge Company? 46.4 days 83.5 days 38.3 days 129.9 days, FIN 571 Week 1 DQ 1 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Week-1-DQ-1-NEW For more classes visit www.fin571assignment.com FIN 571 Week 1 DQ 1 NEW Minimizing risk is essential in the pursuit of maximizing profits. Why shouldn't a firm focus purely on maximizing profits without regard to risk? How does the management of risk play a role in the success of an organization?, FIN 571 Week 1 DQ 2 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Week-1-DQ-2-NEW For more classes visit www.fin571assignment.com FIN 571 Week 1 DQ 2 What is ethics? If you follow all applicable rules and regulations, are you an ethical person? Why?, FIN 571 Week 1 Individual Assignment Business Structures Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Week-1-Individual-Assignment-Business-Structures For more classes visit www.fin571assignment.com FIN 571 Week 1 Individual Assignment Business Structures 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., FIN 571 Week 1 WileyPLUS Assignment Practice Quiz Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Week-1-WileyPLUS-Assignment-Practice-Quiz For more classes visit www.fin571assignment.com FIN 571 Week 1 WileyPLUS Assignment 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 Multiple Choice Question 44 Which of the following business organizational forms is easiest to raise capital? a) sole proprietorship b) partnership c) corporation d) a and b Multiple Choice Question 50 Which organizational form best enables the owners of the firm to monitor the actions of other owners of the same firm? private corporation sole proprietorship partnership public corporation Multiple Choice Question 81 Which of the following factors or activities can be controlled by the management of the firm? Stock market conditions. Capital budgeting. The level of economic activity. The level of interest rates. Multiple Choice Question 82 The legal system and market forces impose substantial costs on individuals and institutions that engage in unethical behavior. Which of the following would not be an example of the above? Agency conflicts. Jail time. Financial losses. Legal fines. Multiple Choice Question 48 The most common reason that corporate firms use the futures and options markets is to make deposits. none of these. to hedge risk. to take risk. Multiple Choice Question 55 Galan Associates prepared its financial statement for 2008 based on the information given here. The company had cash worth $1,234, inventory worth $13,480, and accounts receivables of $7,789. The company's net fixed assets are $42,331, and other assets are $1,822. It had accounts payables of $9,558, notes payables of $2,756, common stock of $22,000, and retained earnings of $14,008. How much long-term debt does the firm have? $76,342 $18,334 $54,342 $12,314 Multiple Choice Question 59 Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199, inventory of $63,781, and cash of $21,461. It also had accounts payables of $51,369, short-term notes payables of $11,417, and accrued taxes of $6,145. The net working capital of the firm is None of these $68,931 $63,510 $69,655 Multiple Choice Question 81 Which of the following best represents cash flows to investors? Net income, minus dividends paid to preferred stockholders. Earnings before interest and taxes times 1 minus the firm’s tax rate. Cash flow from operating activity, plus cash flow generated from net working capital. Cash flow from operating activity, minus cash flow invested in net working capital, minus cash flow invested in long-term assets., FIN 571 Week 2 DQ 1 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Week-2-DQ-1-NEW For more classes visit www.fin571assignment.com FIN 571 Week 2 DQ 1 NEW Explain what benchmarks are, describe how they are prepared, and discuss why they are important in financial statement analysis., FIN 571 Week 2 DQ 2 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Week-2-DQ-2-NEW For more classes visit www.fin571assignment.com FIN 571 Week 2 DQ 2 NEW Financial Ratios and Firm Performance, FIN 571 Week 2 DQ 3 NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Week-2-DQ-3-NEW For more classes visit www.fin571assignment.com FIN 571 Week 2 DQ 3 NEW The DuPont System, FIN 571 Week 2 Individual Business Structure Advice NEW Check this A+ Guidelines at http://www.fin571assignment.com/FIN-571-NEW/FIN-571-Week-2-Individual-Business-Structure-Advice-NEW For more classes visit www.fin571assignment.com FIN 571 Week 2 Individual Business Structure Advice NEW 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. Please advise on what my options are, the advantages and disadvantages of each, and possible tax consequences for each scenario? Respectfully, John Owner Click the Assignment Files tab to submit your assignment.

DEVRY FIN 516 Entire Course NEW (Includes Midterm And Finals) - A+ Graded Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-entire-course For more classes visit http://www.assignmentcloud.com FIN 516 Entire Course NEW (Includes Midterm And Finals) - A+ Graded FIN 516 Week 1 Homework FIN 516 Week 2 Homework FIN 516 Week 2 Mini Case Assignment Ford Motors FIn 516 Week 2 Mini Case Assignment General Electric FIN 516 Week 2 Mini Case Assignment Microsoft Corporation FIN 516 Week 3 Homework FIN 516 Week 4 Homework FIN 516 Week 4 Midterm FIN 516 Week 5 Homework FIN 516 Week 5 IPO Paper FIN 516 Week 6 Homework FIN 516 Week 7 Homework FIN 516 Week 8 Final Exam, DEVRY FIN 516 Week 1 Homework Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-1-homework For more classes visit http://www.assignmentcloud.com FIN 516 Week 1 Homework Problem 17-7 on Ex-dividend Price Based on Chapter 17 Payout Policy Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsam’s board has decided to pay out this cash as a one-time dividend. Problem 17-15 on Distribution to Shareholders Based on Chapter 17 Payout Policy Suppose that all capital gains are taxed at a 25% rate and that the dividend tax rate is 50%. Arbuckle Corporation is currently trading for $30 and is about to pay a $6 special dividend. Problem 17-19 on Dividend Capture Strategy Based on Chapter 17 Payout Policy Que Corporation pays a regular dividend of $1 per share. Typically, the stock price drops by $0.80 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 20%, but investors pay different tax rates on dividends. Absent transactions costs, what is the highest dividend tax rate of an investor who could gain from trading to capture the dividend? Problem 23-5 on Preferred Stock Based on Chapter 23 Raising Equity Capital Three years ago, you founded your own company. You invested $100,000 of your money and received 5 million shares of Series A preferred stock. Since then, your company has been through three additional rounds of financing., DEVRY FIN 516 Week 2 Homework Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-2-homework For more classes visit http://www.assignmentcloud.com FIN 516 Week 2 Homework Problem 14-11 Based on Chapter 14: WACC and Modigiani & Miller Extension Models With Growth Assumptions Consider the entrepreneur described in Section 14.1 (and referenced in Tables 14.1–14.3). Suppose she funds the project by borrowing $750 rather than $500. a. According to MM Proposition I, what is the value of the equity? What are its cash flows if the economy is strong? What are its cash flows if the economy is weak? b. What is the return of the equity in each case? What is its expected return? c. What is the risk premium of equity in each case? What is the sensitivity of the levered equity return to systematic risk? How does its sensitivity compare to that of unlevered equity? How does its risk premium compare to that of unlevered equity? d. What is the debt-equity ratio of the firm in this case? e. What is the firm’s WACC in this case? Problem 14-18 Based on Chapter 14: WACC and Modigliani & Miller Extension Models With Growth Assumptions In mid-2012, AOL Inc. had $100 million in debt, total equity capitalization of $3.1 billion, and an equity beta of 0.90 (as reported on Yahoo! Finance). Included in AOL’s assets was $1.5 billion in cash and risk-free securities. Assume that the risk-free rate of interest is 3% and the market risk premium is 4%. a. What is AOL’s enterprise value? b. What is the beta of AOL’s business assets? c. What is AOL’s WACC? Problem 15-15 Based on Chapter 15: Debt and Taxes Acme Storage has a market capitalization of $100 million and debt outstanding of $40 million. Acme plans to maintain this same debt-equity ratio in the future. The firm pays an interest rate of 7.5% on its debt and has a corporate tax rate of 35%. a. If Acme’s free cash flow is expected to be $7 million next year and is expected to grow at a rate of 3% per year, what is Acme’s WACC? b. What is the value of Acme’s interest tax shield?, DEVRY FIN 516 Week 2 Mini Case Assignment (3 Sets) Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-2-mini-case-assignment For more classes visit http://www.assignmentcloud.com FIN 516 Week 2 Mini Case Assignment (3 Sets) Select a major industrial or commercial company based in the United States, and listed on one of the major stock exchanges in the United States. Each student should select a different company. Avoid selecting an insurance company or a bank, as the financial ratios for these financial businesses are different. Write a 7 – 8 page double spaced paper answering and demonstrating with calculations and financial data the following questions: 1. What is the name of the company? What is the industry sector? 2. What are the operating risks of the company? 3. What is the financial risk of the company (the debt to total capitalization ratio)? 4. Does the company have any preferred stock? 5. What is the capital structure of the company?: Short term portion of Long Term Debt, Long Term Debt, Preferred Stock (if any), and market value of Common Stock issued and outstanding? 6. What is the company’s current actual Beta? 7. What would the Beta of this company be if it had no Long Term Debt in its capital structure? (Apply the Hamada Formula.) 8. What is the company’s current Marginal Tax Rate? 9. What is the Cost of Debt, before and after taxes? 10. What is the Cost of Preferred Stock (if any)? 11. What is the Cost of Equity? 12. What is the cash dividend yield on the Common Stock? 13. What is the Weighted Average Cost of Capital of the company? 14. What is the Price Earnings Multiple of the company? 15. How has the company’s stock been performing in the last 5 years? 16. How would you assess the overall risk structure of the company in terms of its Operating Risks and Financial Risk (Debt to Capitalization Ratio)? 17. Would you invest in this company? Why? Or Why not? 18. The last page of your paper should be a Bibliography of the sources you used to prepare this paper., DEVRY FIN 516 Week 3 Homework Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-3-homework For more classes visit http://www.assignmentcloud.com FIN 516 Week 3 Homework Problem 20-6 on Call Options Based on Chapter 20 You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly 3 months’ time. a) If the stock is trading at $55 in 3 months, what will be the payoff of the call? b) If the stock is trading at $35 in 3 months, what will be the payoff of the call? c) Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. Problem 20-8 on Put Options Based on Chapter 20 You own a put option on Ford stock with a strike price of $10. The option will expire in exactly 6 months’ time. a) If the stock is trading at $8 in 6 months, what will be the payoff of the put? b) If the stock is trading at $23 in 6 months, what will be the payoff of the put? c) Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration. Problem 20-11 on Return on Options Based on Chapter 20 Consider the September 2012 IBM call and put options in Problem 20-3. Ignoring any interest you might earn over the remaining few days’ life of the options, consider the following. a) Compute the break-even IBM stock price for each option (i.e., the stock price at which your total profit from buying and then exercising the option would be 0). b) Which call option is most likely to have a return of −100%? c) If IBM’s stock price is $216 on the expiration day, which option will have the highest return? Problem 21-12 on Option Valuation Using the Black Scholes Model Based on Chapter 21 Rebecca is interested in purchasing a European call on a hot new stock—Up, Inc. The call has a strike price of $100 and expires in 90 days. The current price of Up stock is $120, and the stock has a standard deviation of 40% per year. The risk-free interest rate is 6.18% per year. a) Using the Black-Scholes formula, compute the price of the call. b) Use put-call parity to compute the price of the put with the same strike and expiration date. Problem 30-14 on Swaps Based on Chapter 30 Your firm needs to raise $100 million in funds. You can borrow short-term at a spread of 1% over LIBOR. Alternatively, you can issue 10-year, fixed-rate bonds at a spread of 2.50% over 10-year treasuries, which currently yield 7.60%. Current 10-year interest rate swaps are quoted at LIBOR versus the 8% fixed rate. Management believes that the firm is currently underrated and that its credit rating is likely to improve in the next year or two. Nevertheless, the managers are not comfortable with the interest rate risk associated with using short-term debt. Problem 30-6 on Futures Contract Based on Chapter 30 Your utility company will need to buy 100,000 barrels of oil in 10 days, and it is worried about fuel costs. Suppose you go long 100 oil futures contracts, each for 1,000 barrels of oil, at the current futures price of $60 per barrel. Suppose futures prices change each day as follows., DEVRY FIN 516 Week 4 Homework Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-4-homework For more classes visit http://www.assignmentcloud.com FIN 516 Week 4 Homework Problem 23-3 on Implied Price of Funding Based on Chapter 23 Starware Software was founded last year to develop software for gaming applications. Initially, the founder invested $800,000 and received 8 million shares of stock. Starware now needs to raise a second round of capital, and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed. a) How many shares must the venture capitalist receive to end up with 20% of the company? What is the implied price per share of this funding round? b) What will the value of the whole firm be after this investment (the post-money valuation)? Problem 23-4 on IRR of Venture Capital Based on Chapter 23 Suppose venture capital firm GSB partners raised $100 million of committed capital. Each year over the 10-year life of the fund, 2% of this committed capital will be used to pay GSB’s management fee. As is typical in the venture capital industry, GSB will only invest $80 million (committed capital less lifetime management fees). At the end of 10 years, the investments made by the fund are worth $400 million. GSB also charges 20% carried interest on the profits of the fund (net of management fees). a) Assuming the $80 million in invested capital is invested immediately and all proceeds were received at the end of 10 years, what is the IRR of the investments GSB partners made? That is, compute IRR ignoring all management fees. b) Of course, as an investor or limited partner, you are more interested in your own IRR (that is, the IRR including all fees paid). Assuming that investors gave GSB partners the full $100 million up front, what is the IRR for GSB’s limited partners (that is, the IRR net of all fees paid)? Problem 23-13 on IPO Based on Chapter 23 Your firm has 10 million shares outstanding, and you are about to issue 5 million new shares in an IPO. The IPO price has been set at $20 per share, and the underwriting spread is 7%. The IPO is a big success with investors, and the share price rises to $50 on the first day of trading. a) How much did your firm raise from the IPO? b) What is the market value of the firm after the IPO? c) Assume that the post-IPO value of your firm is its fair market value. Suppose your firm could have issued shares directly to investors at their fair market values in a perfect market with no underwriting spread and no underpricing. What would the share price have been in this case, if you raise the same amount as in part a)? d) Comparing part b) and part c), what is the total cost to the firm’s original investors due to market imperfections from the IPO?, DEVRY FIN 516 Week 4 Midterm Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-4-midterm For more classes visit http://www.assignmentcloud.com FIN 516 Week 4 Midterm 1. Question : (TCO C) Pate & Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15 percent debt and 85 percent equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment? 2. Question : (TCO F) The following data applies to Saunders Corporation's convertible bonds: Maturity: 10 Stock price: $30.00 Par value: $1,000.00 Conversion price: $35.00 Annual coupon: 5.00% Straight-debt yield: 8.00% What is the bond's straight-debt value? (a) $684.78 (b) $720.82 (c) $758.76 (d) $798.70 (e) $838.63 3. Question : (TCO B) The Congress Company has identified two methods for producing playing cards. One method involves using a machine having a fixed cost of $10,000 and variable costs of $1.00 per deck of cards. The other method would use a less expensive machine (fixed cost = $5,000), but it would require greater variable costs ($1.50 per deck of cards). If the selling price per deck of cards will be the same under each method, at what level of output will the two methods produce the same net operating income (EBIT)? (a) 5,000 decks (b) 10,000 decks (c) 15,000 decks (d) 20,000 decks (e) 25,000 decks 4. Question : (TCO B) Firm L has debt with a market value of $200,000 and a yield of nine percent. The firm's equity has a market value of $300,000, its earnings are growing at a rate of five percent, and its tax rate is 40 percent. A similar firm with no debt has a cost of equity of 12 percent. Under the MM extension with growth, what is Firm L's cost of equity? (a) 11.4% (b) 12.0% (c) 12.6% (d) 13.3% (e) 14.0% 5. Question : (TCO A) Which of the following statements is CORRECT? (a) If the underlying stock does not pay a dividend, it makes good economic sense to exercise a call option as soon as the stock’s price exceeds the strike price by about 10%, because this permits the option holder to lock in an immediate profit. (b) Call options generally sell at a price less than their exercise value. (c) If a stock becomes riskier (more volatile), call options on the stock are likely to decline in value. (d) Call options generally sell at prices above their exercise value, but for an inthe-money option, the greater the exercise value in relation to the strike price, the lower the premium on the option is likely to be. (e) Because of the put-call parity relationship, under equilibrium conditions a put option on a stock must sell at exactly the same price as a call option on the stock. 6. Question : (TCO F) Suppose the December CBOT Treasury bond futures contract has a quoted price of 80-07. What is the implied annual interest rate inherent in the futures contract? Assume this contract is based on a 20 year Treasury bond with semi-annual interest payments. The face value of the bond is $1000, and the semi-annual coupon payments are $30. The annual coupon rate on the bonds is $60 per bond (or 6%). The futures contract has 100 bonds. (a) 6.86% (b) 7.22% (c) 7.60% (d) 8.00% (e) 8.40%, DEVRY FIN 516 Week 5 Homework Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-5-homework For more classes visit http://www.assignmentcloud.com FIN 516 Week 5 Homework Problem 25-6 on Purchase Versus Lease Based on Chapter 25 Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the fabricator will be depreciated on a straight-line basis over 7 years. Craxton can lease the fabricator for $130,000 per year for 7 years. Craxton’s tax rate is 35%. (Assume the fabricator has no residual value at the end of the 7 years.) a) What are the free cash flow consequences of buying the fabricator if the lease is a true tax lease? b) What are the free cash flow consequences of leasing the fabricator if the lease is a true tax lease? c) What are the incremental free cash flows of leasing versus buying? Problem 25-7 on Purchase Versus Lease Based on Chapter 25 Riverton Mining plans to purchase or lease $220,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over 5 years, after which it will be worthless. If leased, the annual lease payments will be $55,000 per year for 5 years. Assume Riverton’s borrowing cost is 8%, its tax rate is 35%, and the lease qualifies as a true tax lease. a) If Riverton purchases the equipment, what is the amount of the lease-equivalent loan? b) Is Riverton better off leasing the equipment or financing the purchase using the lease equivalent loan? c) What is the effective after-tax lease borrowing rate? How does this compare to Riverton’s actual after-tax borrowing rate?, DEVRY FIN 516 Week 5 IPO Paper Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-5-ipo-paper For more classes visit http://www.assignmentcloud.com FIN 516 Week 5 IPO Paper IPO Analysis of Gevo Inc., DEVRY FIN 516 Week 6 Homework Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-6-homework For more classes visit http://www.assignmentcloud.com FIN 516 Week 6 Homework Problem 28-9 on Acquisition Analysis Based on Chapter 28 Mergers and Acquisitions Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2, 1 million shares outstanding, and a price per share of $25. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. a) If you pay no premium to buy TargetCo, what will your earnings per share be after the merger? b) Suppose you offer an exchange ratio such that, at current preannouncement share prices for both firms, the offer represents a 20% premium to buy TargetCo. What will your earnings per share be after the merger? c) What explains the change in earnings per share in part a)? Are your shareholders any better or worse off? d) What will your price-earnings ratio be after the merger (if you pay no premium)? How does this compare to your P/E ratio before the merger? How does this compare to TargetCo’s premerger P/E ratio? Problem 16-8 on Managerial Decision Based on Chapter 16 Financial Distress, Managerial Incentives, and Information As in Problem 1, Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of four values next year: $150 million, $135 million, $95 million, or $80 million. These outcomes are all equally likely, and this risk is diversifiable. Suppose the risk-free interest rate is 5% and that, in the event of default, 25% of the value of Gladstone’s assets will be lost to bankruptcy costs. (Ignore all other market imperfections, such as taxes.) a) What is the initial value of Gladstone’s equity without leverage? Now suppose Gladstone has zero-coupon debt with a $100 million face value due next year. b) What is the initial value of Gladstone’s debt? c) What is the yield-to-maturity of the debt? What is its expected return? d) What is the initial value of Gladstone’s equity? What is Gladstone’s total value with leverage? Suppose Gladstone has 10 million shares outstanding and no debt at the start of the year. e) If Gladstone does not issue debt, what is its share price? f) If Gladstone issues debt of $100 million due next year and uses the proceeds to repurchase shares, what will its share price be? Why does your answer differ from that in part e)? Problem 16-9 on Financial Distress Based on Chapter 16 Financial Distress, Managerial Incentives, and Information Kohwe Corporation plans to issue equity to raise $50 million to finance a new investment. After making the investment, Kohwe expects to earn free cash flows of $10 million each year. Kohwe currently has 5 million shares outstanding, and it has no other assets or opportunities. Suppose the appropriate discount rate for Kohwe’s future free cash flows is 8%, and the only capital market imperfections are corporate taxes and financial distress costs. a) What is the NPV of Kohwe’s investment? b) What is Kohwe’s share price today? Suppose Kohwe borrows the $50 million instead. The firm will pay interest only on this loan each year, and it will maintain an outstanding balance of $50 million on the loan. Suppose that Kohwe’s corporate tax rate is 40%, and expected free cash flows are still $10 million each year. c) What is Kohwe’s share price today if the investment is financed with debt? Now suppose that with leverage, Kohwe’s expected free cash flows will decline to $9 million per year due to reduced sales and other financial distress costs. Assume that the appropriate discount rate for Kohwe’s future free cash flows is still 8%. e) What is Kohwe’s share price today given the financial distress costs of leverage?, DEVRY FIN 516 Week 7 Homework Set Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-7-homework-set For more classes visit http://www.assignmentcloud.com FIN 516 Week 7 Homework Set Problem 31-1 on Exchange Rates Based on Chapter 31 International Corporate Finance You are a U.S. investor who is trying to calculate the present value of a €5 million cash inflow that will occur 1 year in the future. The spot exchange rate is S = $1.25/€ and the forward rate is F1 = $1.215/€. You estimate that the appropriate dollar discount rate for this cash flow is 4% and the appropriate euro discount rate is 7%. a) What is the present value of the €5 million cash inflow computed by first discounting the euro and then converting it into dollars? b) What is the present value of the €5 million cash inflow computed by first converting the cash flow into dollars and then discounting? c) What can you conclude about whether these markets are internationally integrated, based on your answers to parts a) and b)? Problem 31-2 on Currency Appreciation Based on Chapter 31 International Corporate Finance Mia Caruso Enterprises, a U.S. manufacturer of children’s toys, has made a sale in Cyprus and is expecting a C£4 million cash inflow in 1 year. The current spot rate is S = $1.80/C£ and the 1-year forward rate is F1 = $1.8857/C£. a) What is the present value of Mia Caruso’s C£4 million inflow computed by first discounting the cash flow at the appropriate Cypriot pound discount rate of 5%, and then converting the result into dollars? b) What is the present value of Mia Caruso’s C£4 million inflow computed by first converting the cash flow into dollars, and then discounting at the appropriate dollar discount rate of 10%? c) What can you conclude about whether these markets are internationally integrated, based on your answers to parts a) and b)? Problem 31-7 on Eurobonds Versus Domestic Bonds Based on Chapter 31 International Corporate Finance The dollar cost of debt for Coval Consulting, a U.S. research firm, is 7.5%. The firm faces a tax rate of 30% on all income, no matter where it is earned. Managers in the firm need to know its yen cost of debt because they are considering launching a new bond issue in Tokyo to raise money for a new investment there. The risk-free interest rates on dollars and yen are r$ = 5% and r¥ = 1%, respectively. Coval Consulting is willing to assume that capital markets are internationally integrated and that its free cash flows are uncorrelated with the yen-dollar spot rate. What is Coval Consulting’s after-tax cost of debt in yen? (Hint: Start by finding the after-tax cost of debt in dollars and then find the yen equivalent.) Problem 31-12 on Credit and Exchange Rate Risk Based on Chapter 31 International Corporate Finance Suppose the interest on Russian government bonds is 7.5%, and the current exchange rate is 28 rubles per dollar. If the forward exchange rate is 28.5 rubles per dollar, and the current U.S. risk-free interest rate is 4.5%, what is the implied credit spread for Russian government bonds? Problem 30-9 on Forward Market Hedge Based on Chapter 30 Risk Management You are a broker for frozen seafood products for Choyce Products. You just signed a deal with a Belgian distributor. Under the terms of the contract, in 1 year, you will deliver 4000 kg of frozen king crab for 100,000 euros. Your cost for obtaining the king crab is $110,000. All cash flows occur in exactly 1 year., DEVRY FIN 516 Week 8 Final Exam Guide Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-516-new/fin-516-week-8-final-exam-guide For more classes visit http://www.assignmentcloud.com FIN 516 Week 8 Final Exam Guide Question 1.1. (TCO B) Which of the following statements concerning the MM extension with growth is not correct? (a) The tax shields should be discounted at the unlevered cost of equity. (b) The value of a growing tax shield is greater than the value of a constant tax shield. (c) For a given D/S, the levered cost of equity is greater than the levered cost of equity under MM’s original (with tax) assumptions. (d) For a given D/S, the WACC is greater than the WACC under MM’s original (with tax) assumptions. (e) The total value of the firm is independent of the amount of debt it uses. Question 2.2. (TCO D) Which of the following statements is most correct? (a) In a private placement, securities are sold to private (individual) investors rather than to institutions. (b) Private placements occur most frequently with stocks, but bonds can also be sold in a private placement. (c) Private placements are convenient for issuers, but the convenience is offset by higher flotation costs. (d) The SEC requires that all private placements be handled by a registered investment banker. (e) Private placements can generally bring in funds faster than is the case with public offerings. (Points : 20) Question 3.3. (TCO E) Buster’s Beverages is negotiating a lease on a new piece of equipment that would cost $100,000 if purchased. The equipment falls into the MACRS 3-year class, and it would be used for 3 years and then sold, because the firm plans to move to a new facility at that time. The estimated value of the equipment after 3 years is $30,000. If the borrow and purchase option is used, the cash flows would be the following: (Year 1) -2,400; (Year 2) -3,800; (Year 3) -1,400; (Year 4) -79,600; all of these cash outflows would be at the beginning of the respective years. Alternatively, the firm could lease the equipment for 3 years, with annual lease payments of $29,000 per year, payable at the beginning of each year. The firm is in the 20% tax bracket. If it borrows and purchases, it could obtain a 3-year simple interest loan, to purchase the equipment at a before-tax interest rate of 10%. If there is a positive net advantage to leasing, the firm will lease the equipment. Otherwise, it will buy it. What is the NAL? (a) $5,736 (b) $6,023 (c) $6,324 (d) $6,640 (e) $6,972 (Points : 20) Question 4.4. (TCO I) Suppose hockey skates sell in Canada for 105 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If purchasing power parity (PPP) holds, what is the price of hockey skates in the United States? (a) $14.79 (b) $63.00 (c) $74.55 (d) $85.88 (e) $147.88 (Points : 20) Page 2 Question 1.1. (TCO C) Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be? EBIT $2,000,000 Capital budget $850,000 Interest rate 10% % Debt 40% Debt outstanding $5,000,000 % Equity 60% Shares outstanding $5,000,000 Tax rate 40% (a) 37.2% (b) 39.1% (c) 41.2% (d) 43.3% (e) 45.5% (Points : 20) Question 2.2. (TCO F) Warren Corporation’s stock sells for $42 per share. The company wants to sell some 20-year, annual interest, $1,000 par value bonds. Each bond would have 75 warrants attached to it, each exercisable into one share of stock at an exercise price of $47. The firm’s straight bonds yield 10%. Each warrant is expected to have a market value of $2.00 given that the stock sells for $42. What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par? (a) 7.83% (b) 8.24% (c) 8.65% (d) 9.08% (e) 9.54% (Points : 20) Question 3.3. (TCO B) Reynolds Resorts is currently 100% equity financed. The CFO is considering a recapitalization plan under which the firm would issue long-term debt with a yield of 9% and use the proceeds to repurchase common stock. The recapitalization would not change the company’s total assets, nor would it affect the firm’s basic earning power, which is currently 15%. The CFO believes that this recapitalization would reduce the WACC and increase stock price. Which of the following would also be likely to occur if the company goes ahead with the recapitalization plan? (a) The company’s net income would increase. (b) The company’s earnings per share would decline. (c) The company’s cost of equity would increase. (d) The company’s ROA would increase. (e) The company’s ROE would decline. (Points : 20) Question 4.4. (TCO G) Which of the following statements is most correct? (a) Our bankruptcy laws were enacted in the 1800s, revised in the 1930s, and have remained unaltered since that time. (b) Federal bankruptcy law deals only with corporate bankruptcies. Municipal and personal bankruptcy are governed solely by state laws. (c) All bankruptcy petitions are filed by creditors seeking to protect their claims against firms in financial distress. Thus, all bankruptcy petitions are involuntary as viewed from the perspective of the firm’s management. (d) Chapters 11 and 7 are the most important bankruptcy chapters for financial management purposes. If a reorganization plan cannot be worked out under Chapter 11, then the company will be liquidated as prescribed in Chapter 7 of the Act. (e) Restructuring a firm’s debt can involve forgiving a certain portion of the debt, but it cannot call for changing the debt’s maturity or its contractual interest rate. (Points : 20) Page 3 Question 1.1. (TCO I) In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars? (a) $5.964 (b) $8,200 (c) $10,250 (d) $12,628 (e) $13,525 (Points : 20) Question 2.2. (TCO H) Which of the following statements is most correct? (a) The acquiring firm’s required rate of return in most horizontal mergers will not be affected, because the two firms will have similar betas. (b) Financial theory says that the choice of how to pay for a merger is really irrelevant because although it may affect the firm’s capital structure, it will not affect its overall required rate of return. (c) The basic rationale for any financial merger is synergy, and thus, the estimation of pro-forma cash flows is the single most important part of the analysis. (d) In most mergers, the benefits of synergy and the premium the acquirer pays over the market price are summed and then divided equally between the shareholders of the acquiring and target firms. (e) The primary rationale for most operating mergers is synergy. (Points : 20) Question 3.3. (TCO A) An investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options? (a) In-the-money (b) Put (c) Naked (d) Covered (e) Out-of-the-money (Points : 20) Question 4.4. (TCO F) A swap is a method used to reduce financial risk. Which of the following statements about swaps, if any, is not correct? (a) A swap involves the exchange of cash payment obligations. (b) The earliest swaps were currency swaps in which companies traded debt denominated in different currencies, say dollars and pounds. (c) Swaps are very often arranged by a financial intermediary, who may or may not take the position of one of the counterparties. (d) A problem with swaps is that no standardized contracts exist, which has prevented the development of a secondary market. (e) A company can swap fixed interest payments for floating interest payments. (Points : 20)

DEVRY FIN 515 Entire Course NEW Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-entire-course For more classes visit http://www.assignmentcloud.com FIN 515 Entire Course NEW FIN 515 Week 1 Problem Set FIN 515 Week 1 Quiz FIN 515 Week 2 Problem Set FIN 515 Week 2 Quiz FIN 515 Week 3 First Course Project FIN 515 Week 3 Problem Set FIN 515 Week 4 Problem Set FIN 515 Week 4 Midterm FIN 515 Week 5 Problem Set FIN 515 Week 6 Problem Set FIN 515 Week Second Course Project FIN 515 Week 6 Quiz FIN 515 Week 7 Problem Set FIN 515 Final Exam, DEVRY FIN 515 Final Exam 5 Sets Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-final-exam For more classes visit http://www.assignmentcloud.com FIN 515 Final Exam 5 Sets (TCO A) In the United States, the most common type of business by number of businesses is the _____. (Points : 5) (TCO A) Sole proprietorships have all of the following advantages except (Points : 5) (TCO B) Which of the following would cause the future value of an annuity to decrease? (Points : 5) (TCO B) Which of the following is an annuity due? (Points : 5) (TCO G) What are the names of the four components of the DuPont Identity and how are they calculated? What does each measure? (Points : 20) (TCO D) A stock pays an annual dividend of $2.50 and that dividend is not expected to change. Similar stocks pay a return of 10%. What is P0? (Points : 20) (TCO D) A stock has just declared an annual dividend of $2.25 to be paid one year from today. The dividend is expected to grow at a 7% annual rate. The return on equity for similar stocks is 12%. What is P0? (Points : 20) (TCO D) A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? (Points : 10) (TCO D) A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments are made semiannually. What is its YTM? (Points : 10) (TCO D) Using examples, explain the difference between systematic risk and nonsystematic risk. Explain why the distinction is important for both investors and issuers of stock.(Points : 30) (TCO E) A company has 10 million shares outstanding trading for $7 per share. It also has $300 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 9%, and its effective corporate tax rate is 40%, what is its weighted average cost of capital? (Points : 30) (TCO A) Relate how the job of the financial manager can be explained using the balance sheet. (Points : 25) (TCO H) Other things being equal, would a firm prefer a longer or shorter Cash Conversion Cycle? What are some examples of ways a firm could attain this? (Points : 30) (TCO F) A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. The company has a cost of capital of 12%. Which should the company do and why? You must use at least two capital budgeting methods. Show your work, DEVRY FIN 515 First Course Project Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-first-course-project For more classes visit http://www.assignmentcloud.com FIN 515 First Course Project, DEVRY FIN 515 Second Course Project Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-second-course-project For more classes visit http://www.assignmentcloud.com FIN 515 Second Course Project, DEVRY FIN 515 Week 1 Problem Set Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-1-problem-set For more classes visit http://www.assignmentcloud.com FIN 515 Week 1 Problem Set Chapter 1 (page 19) 1. What is the most important difference between a corporation and all other organizational forms? 2. What does the phrase limited liability mean in a corporate context? 3. Which organizational forms give their owners limited liability? 4. What are the main advantages and disadvantages of organizing a firm as a corporation? 5. Explain the difference between an S corporation and a C corporation. Chapter 2 The following is provided for use in answering the next set of questions. You may also find table 2.5 on page 53 of your text and all questions on pages 56–57. 29. In fiscal year 2011, Starbucks Corporation (SBUX) had revenue of $11.70 billion, gross profit of $6.75 billion, and net income of $1.25 billion. Peet’s Coffee and Tea (PEET) had revenue of $372 million, gross profit of $72.7 million, and net income of $17.8 million. a. Compare the gross margins for Starbucks and Peet’s. b. Compare the net profit margins for Starbucks and Peet’s. c. Which firm was more profitable in 2011? 31. See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. How did Mydeco’s accounts receivable days change over this period? b. How did Mydeco’s inventory days change over this period? c. Based on your analysis, has Mydeco improved its management of its working capital during this time period? 32. See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compare Mydeco’s accounts payable days in 2009 and 2013. b. Did this change in accounts payable days improve or worsen Mydeco’s cash position in 2013? 33. See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. By how much did Mydeco increase its debt from 2009 to 2013? b. What was Mydeco’s EBITDA/Interest coverage ratio in 2009 and 2013? Did its coverage ratio ever fall below 2? c. Overall, did Mydeco’s ability to meet its interest payments improve or decline over this period? 42. For fiscal year 2011, Starbucks Corporation (SBUX) had total revenues of $11.70 billion, net income of $1.25 billion, total assets of $7.36 billion, and total shareholder’s equity of $4.38 billion. a. Calculate the Starbucks’ ROE directly, and using the DuPont Identity. b. Comparing with the data for Peet’s in Problem 41, use the DuPont Identity to understand the difference between the two firms’ ROEs., DEVRY FIN 515 Week 1 Quiz Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-1-quiz For more classes visit http://www.assignmentcloud.com FIN 515 Week 1 Quiz Question 1 - (TCO G) Which do you think provides a more valid measure of how a company is doing, comparison of current results with historical results or comparison of current results with the current results of another company? Question 2- (TCO G) Barnes Corp’s total assets at the end of last year were $415,000,000 and its net income after taxes was $17,750,000. What was its return on total assets? Question 3- (TCO G) Between December 31, 2016 and December 31, 2017, ROE at Bobcat Industries decreased even though sales increased. Using the DuPont Identity, explain what else could have happened to cause this., DEVRY FIN 515 Week 2 Problem Set Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-2-problem-set For more classes visit http://www.assignmentcloud.com FIN 515 Week 2 Problem Set Chapter 4 (pages 132–136): 3. Calculate the future value of $2000 in a. five years at an interest rate of 5% per year; b. ten years at an interest rate of 5% per year; and c. five years at an interest rate of 10% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? 4. What is the present value of $10,000 received a. twelve years from today when the interest rate is 4% per year; b. twenty years from today when the interest rate is 8% per year; and c. six years from today when the interest rate is 2% per year? 5. Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable? 6. Consider the following alternatives. i. $100 received in 1 year ii. $200 received in 5 years iii. $300 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is only 5% per year? c. What is your ranking if the interest rate is 20% per year? 8. Your daughter is currently 8 years old. You anticipate that she will be going to college in 10 years. You would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3% per year, how much money do you need to put into the account today to ensure that you will have $100,000 in 10 years? 9. You are thinking of retiring. Your retirement plan will pay you either $250,000 immediately on retirement or $350,000 5 years after the date of your retirement. Which alternative should you choose if the interest rate is a. 0% per year; b. 8% per year; and c. 20% per year? 14. You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 1 year from now, $1,500 2 years from now, and $10,000 10 years from now. a. What is the NPV of the opportunity if the interest rate is 6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the interest rate is 2% per year? Should you take it now? 36. You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. What will your annual payment be if you sign up for this mortgage? 37. You would like to buy the house and take the mortgage described in Problem 36. You can afford to pay only $23,500 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $300,000. At the end of the mortgage (in 30 years), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will this balloon payment be? 38. You have just made an offer on a new home and are seeking a mortgage. You need to borrow $600,000. a. The bank offers a 30-year mortgage with fixed monthly payments and an interest rate of 0.5% per month. What is the amount of your monthly payment if you take this loan? b. Alternatively, you can get a 15-year mortgage with fixed monthly payments and an interest rate of 0.4% per month. How much would your monthly payments be if you take this loan instead? *A.1. This problem is from the Appendix to Chapter 4. Your grandmother bought an annuity from Rock Solid Life Insurance Company for $200,000 when she retired. In exchange for the $200,000, Rock Solid will pay her $25,000 per year until she dies. The interest rate is 5%. How long must she live after the day she retired to come out ahead (that is, to get more in value than what she paid in)?, DEVRY FIN 515 Week 2 Quiz Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-2-quiz For more classes visit http://www.assignmentcloud.com FIN 515 Week 2 Quiz Question 1 (TCO B) You are a trust fund baby. Your trust fund is currently worth $1,234,000. The problem is the terms of the trust don’t allow you to receive any of the money until you are 27. You are now 21. The fund is earning 7.7% per year. How much will the fund be worth when you are 27 and too old to enjoy it? Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer. Question 2 (TCO B) You have a student loan of $75,000. The interest rate is 8.6% per year. You have been out of school for 6 months and are ready to start making payments. You want to use the maximum allowed of 10 years to pay off the loan by making equal monthly payments. How much are the monthly payments? Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer. Question 3 (TCO B) You want to have $1,000,000 in 30 years. You already have $50,000. You think you can get a 7% annual return on your money. How much per year will you have to save to get to $1,000,000? Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer., DEVRY FIN 515 Week 3 Problem Set Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-3-problem-set For more classes visit http://www.assignmentcloud.com FIN 515 Week 3 Problem Set Chapter 7 (pages 225–228): 1. Your brother wants to borrow $10,000 from you. He has offered to pay you back $12,000 in a year. If the cost of capital of this investment opportunity is 10%, what is its NPV? Should you undertake the investment opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. 8. You are considering an investment in a clothes distributor. The company needs $100,000 today and expects to repay you $120,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 20%. What does the IRR rule say about whether you should invest? 19. You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $5,000 and will be posted for one year. You expect that it will generate additional revenue of $500 per month. What is the payback period? 21. You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate $2 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $1.5 million at the end of the first year and its revenues will grow at 2% per year for every year after that. • a. Which investment has the higher IRR? • b. Which investment has the higher NPV when the cost of capital is 7%? • c. In this case, for what values of the cost of capital does picking the higher IRR give the correct answer as to which investment is the best opportunity? Chapter 8 (260–262) 1. Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $20 million per year. While many of these sales will be to new customers, Pisa Pizza estimates that 40% will come from customers who switch to the new, healthier pizza instead of buying the original version. a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza? b. Suppose that 50% of the customers who will switch from Pisa Pizza’s original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this case? 6. Cellular Access, Inc. is a cellular telephone service provider that reported net income of $250 million for the most recent fiscal year. The firm had depreciation expenses of $100 million, capital expenditures of $200 million, and no interest expenses. Working capital increased by $10 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year. 12. A bicycle manufacturer currently produces 300,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2 a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $1.50 per chain. The necessary machinery would cost $250,000 and would be obsolete after 10 years. This investment could be depreciated to zero for tax purposes using a 10-year straight-line depreciation schedule. The plant manager estimates that the operation would require $50,000 of inventory and other working capital upfront (year 0), but argues that this sum can be ignored because it is recoverable at the end of the 10 years. Expected proceeds from scrapping the machinery after 10 years are $20,000. If the company pays tax at a rate of 35% and the opportunity cost of capital is 15%, what is the net present value of the decision to produce the chains in-house instead of purchasing them from the supplier?, DEVRY FIN 515 Week 4 Midterm Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-4-midterm For more classes visit http://www.assignmentcloud.com FIN 515 Week 4 Midterm 1. (TCO G) The firm’s asset turnover measures 2. (TCO G) Suppose Novak Company experienced a reduction in its ROE over the last year. This fall could be attributed to 3. (TCO B) You plan on retiring in 20 years. You currently have $275,000 and think you will need $1,000,000 to retire. Assuming you don’t deposit any additional money into the account, what annual return will you need to earn to meet this goal? 4. (TCO B) You take out a 4 year car loan for $18,000. The loan has a 4% annual interest rate. The payments are made monthly. What are the monthly payments? Show your work 5. (TCO B) You currently have $10,000 in your retirement account. If you deposit $500 per month and the account pays 5% interest, how much will be in the account in 10 years? Show your work. 6. (TCO B) You have a two children, A and B. Child A is not going to college but is working in a business to learn the ropes. Child A plans on opening a business someday. Child B is attending college. You put a certain amount of money into an account. From this account, Child B will receive $2,000 per month for the next four years. Whatever is left at that time will go to Child A to help start the business. You want Child A to receive $96,000 at that time. The account pays 7% annually, compounded monthly. How much money do you need to start the account? Show your work. 7. (TCO F) A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project’s NPV? Show your work. 8. (TCO F) A project requires an initial cash outlay of $60,000 and has expected cash inflows of $15,000 annually for 8 years. The cost of capital is 10%. What is the project’s payback period? Show your work. 9. (TCO F) A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project’s IRR? Show your work. 10. (TCO F) A project requires an initial cash outlay of $40,000 and has expected cash inflows of $12,000 annually for 7 years. The cost of capital is 10%. What is the project’s discounted payback period? Show your work. 11. (TCO F) Company A has the opportunity to do any, none, or all of the projects for which the net cash flows per year are shown below. The projects are not mutually exclusive. The company has a cost of capital of 15%. Which should the company do and why? You must use at least two capital budgeting methods. Show your work. Explain your answer thoroughly. (1 ) (TCO A) Which of the following statements is CORRECT? (Points : 10) (a) It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required. (b) Corporations face fewer regulations than sole proprietorships. (c) One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level. (d) One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership. (e) If a regular partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business. (2) (TCO G) A security analyst obtained the following information from Prestopino Products’ financial statements: Retained earnings at the end of 2009 were $700,000, but retained earnings at the end of 2010 had declined to $320,000. • The company does not pay dividends. • The company’s depreciation expense is its only non-cash expense; it has no amortization charges. • The company has no non-cash revenues. • The company’s net cash flow (NCF) for 2010 was $150,000. On the basis of this information, which of the following statements is CORRECT? (Points : 10) (a) Prestopino had negative net income in 2010. ( b ) Prestopino’s depreciation expense in 2010 was less than $150,000. (c) Prestopino had positive net income in 2010, but its income was less than its 2009 income. (d) Prestopino’s NCF in 2010 must be higher than its NCF in 2009. (e) Prestopino’s cash on the balance sheet at the end of 2010 must be lower than the cash it had on the balance sheet at the end of 2009. (3) TCO G) Beranek Corp. has $410,000 of assets, and it uses no debt—it is financed only with common equity. The new CFO wants to employ enough debt to bring the debt/assets ratio to 40%, using the proceeds from the borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio? (Points : 10) $155,800 $164,000 $172,200 $180,810 $189,851 (4) (TCO B) You deposit $1,000 today in a savings account that pays 3.5% interest, compounded annually. How much will your account be worth at the end of 25 years? (Points : 10) $2,245.08 $2,363.24 $2,481.41 $2,605.48 $2,735.75 (5). (TCO B) You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%? Years: 0 1 2 3 4 |———–|————–|————–|————–| CFs: $0 $1,000 $2,000 $2,000 $2,000 (Points : 10) $5,987 $6,286 $6,600 $6,930 $7,277 (6) (TCO B) Suppose you borrowed $12,000 at a rate of 9.0% and must repay it in four equal installments at the end of each of the next four years. How large would your payments be? (Points : 10) 3,704.02 $3,889.23 $4,083.69 $4,287.87 $4,502.26 (7 ) (TCO D) Which of the following statements is CORRECT? (Points : 10) (a) If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity. (b) On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss. (c) On an expected yield basis, the expected current yield will always be positive because an investor would not purchase a bond that is not expected to pay any cash coupon interest. (d) If a coupon bond is selling at par, its current yield equals its yield to maturity. (e) The current yield on Bond A exceeds the current yield on Bond B; therefore, Bond A must have (8 ) (TCO D) Ezzell Enterprises’ noncallable bonds currently sell for $1,165. They have a 15-year maturity, an annual coupon of $95, and a par value of $1,000. What is their yield to maturity? (Points : 10) 6.20% 6.53% 6.87% 7.24% 7.62% (9 ) (TCO C) Niendorf Corporation’s five-year bonds yield 6.75%, and five-year T-bonds yield 4.80%. The real risk-free rate is r* = 2.75%, the inflation premium for five-year bonds is IP = 1.65%, the default risk premium for Niendorf’s bonds is DRP = 1.20% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t – 1) x 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf’s bonds? (Points : 10) 0.49% 0.55% 0.61% 0.68% 0.75% (10 ) (TCO C) Assume that investors have recently become more risk averse, so the market risk premium has increased. Also, assume that the risk-free rate and expected inflation have not changed. Which of the following is most likely to occur? (Points : 10) (a) The required rate of return for an average stock will increase by an amount equal to the increase in the market risk premium. (b) The required rate of return will decline for stocks whose betas are less than 1.0. (c) The required rate of return on the market, rM, will not change as a result of these changes. (d) The required rate of return for each individual stock in the market will increase by an amount equal to the increase in the market risk premium. (e) The required rate of return on a riskless bond will decline., DEVRY FIN 515 Week 4 Problem Set Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-4-problem-set For more classes visit http://www.assignmentcloud.com FIN 515 Week 4 Problem Set Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years. Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds are currently selling for $850. What is their YTM? Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1,000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond? Bonds-4. A particular corporate bond has a par value of $1,000. Coupon payments are $40 and are paid twice a year. Seven years are left on the life of the bond.The YTM is 9%. What is the price of the bond? Bond-5. A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 5% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? Bond-6. A given bond has five years left to maturity. Interest is paid annually and the annual coupon rate is 9%. The par value of the bond is $1,000. The bond currently sells for $1,000. What is the yield to maturity? 9-1.Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in 1 year, and its equity cost of capital is 15%. What price must you expect it to sell for right after paying the dividend in 1 year in order to justify its current price? 9-5.NoGrowth Corporation currently pays a dividend of $2 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year? 9-6.Summit Systems will pay a dividend of $1.50 this year. If you expect Summit’s dividend to grow by 6% per year, what is its price per share if its equity cost of capital is 11%? 9-7. Dorpac Corporation has a dividend yield of 1.5%. Dorpac’s equity cost of capital is 8%, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of Dorpac’s dividends? b. What is the expected growth rate of Dorpac’s share price? 9-12.Procter & Gamble will pay an annual dividend of $0.65 1 year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After then, growth will level off at 2% per year. According to the dividend-discount model, what is the value of a share of Procter & Gamble stock if the firm’s equity cost of capital is 8%?, DEVRY FIN 515 Week 5 Problem Set Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-5-problem-set For more classes visit http://www.assignmentcloud.com FIN 515 Week 5 Problem Set Chapter 10 (pages 345–348) 4. You bought a stock one year ago for $50 per share and sold it today for $55 per share. It paid a $1 per share dividend today. a. What was your realized return? b. How much of the return came from dividend yield and how much came from capital gain? 20. Consider two local banks. Bank A has 100 loans outstanding, each for $1 million, that it expects will be repaid today. Each loan has a 5% probability of default, in which case the bank is not repaid anything. The chance of default is independent across all the loans. Bank B has only one loan of $100 million outstanding, which it also expects will be repaid today. It also has a 5% probability of not being repaid. Explain the difference between the type of risk each bank faces. Which bank faces less risk? Why? 22. Consider the following two, completely separate, economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together—in good times all prices rise together and in bad times they all fall together. In the second economy, stock returns are independent—one stock increasing in price has no effect on the prices of other stocks. Assuming you are risk-averse and you could choose one of the two economies in which to invest, which one would you choose? Explain. 30. What does the beta of a stock measure? 35. Suppose the market risk premium is 5% and the risk-free interest rate is 4%. Using the data in Table 10.6 (also shown above), calculate the expected return of investing in a. Starbucks’ stock. b. Hershey’s stock. c. Autodesk’s stock. Chapter 11 (pages 390–396): 2. You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000 shares of Colgate-Palmolive. The current share prices and expected returns of Apple, Cisco, and Colgate-Palmolive are, respectively, $500, $20, $100 and 12%, 10%, 8%. a. What are the portfolio weights of the three stocks in your portfolio? b. What is the expected return of your portfolio? c. Suppose the price of Apple stock goes up by $25, Cisco rises by $5, and Colgate-Palmolive falls by $13. What are the new portfolio weights? d. Assuming the stocks’ expected returns remain the same, what is the expected return of the portfolio at the new prices? 50. Suppose Autodesk stock has a beta of 2.16, whereas Costco stock has a beta of 0.69. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, what is the expected return of a portfolio that consists of 60% Autodesk stock and 40% Costco stock, according to the CAPM? Chapter 12 (page 431): 26. Unida Systems has 40 million shares outstanding trading for $10 per share. In addition, Unida has $100 million in outstanding debt. Suppose Unida’s equity cost of capital is 15%, its debt cost of capital is 8%, and the corporate tax rate is 40%. a. What is Unida’s unlevered cost of capital? b. What is Unida’s after-tax debt cost of capital? c. What is Unida’s weighted average cost of capital? 27. You would like to estimate the weighted average cost of capital for a new airline business. Based on its industry asset beta, you have already estimated an unlevered cost of capital for the firm of 9%. However, the new business will be 25% debt financed, and you anticipate its debt cost of capital will be 6%. If its corporate tax rate is 40%, what is your estimate of its WACC?, DEVRY FIN 515 Week 6 Quiz Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-6-quiz For more classes visit http://www.assignmentcloud.com FIN 515 Week 6 Quiz Question : You work for Athens Inc. and you must estimate the Year 1 operating cash flow for a project with the following data. What is the Year 1 operating cash flow? Question : Which of the following is not a cash flow and thus should not be reflected in the analysis of a capital budgeting project? io generally defined?, DEVRY FIN 515 Week 6 Problem Set Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-6-problem-set For more classes visit http://www.assignmentcloud.com FIN 515 Week 6 Problem Set 1. What inherent characteristic of corporations creates the need for a system of checks on manager behavior? 2. What are some examples of agency problems? 3. What are the advantages and disadvantages of the corporate organizational structure? 4. What is the role of the board of directors in corporate governance?, DEVRY FIN 515 Week 7 Problem Set Check this A+ tutorial guideline at http://www.assignmentcloud.com/fin-515-devry/fin-515-week-7-problem-set For more classes visit http://www.assignmentcloud.com FIN 515 Week 7 Problem Set Chapter 26 (page 903): Answer the following questions: What is the difference between a firm’s cash cycle and its operating cycle? How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal? How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal? The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below: Calculate The Greek Connection’s net working capital in 2012. Calculate the cash conversion cycle of The Greek Connection in 2012. The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 if it had matched the industry average for accounts receivable days? Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30. Chapter 27 (page 925): Which of the following companies are likely to have high short-term financing needs? Why? A clothing retailer A professional sports team An electric utility A company that operates toll roads A restaurant chain Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current (month 0) working capital levels. During which months are the firm’s seasonal working capital needs the greatest? When does it have surplus cash?

FIN 366 Complete Class To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Complete-Class-Guide For more classes visit www.assignmentcloud.com, FIN 366 Week 1 DQ 1 What are major types of financial intermediaries? How are they similar and different? To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-1-DQ-1 For more classes visit www.assignmentcloud.com, FIN 366 Week 1 DQ 2 Compare and contrast major types of financial markets. Describe how they interact with one another. Which is most stable and why? To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-1-DQ-2 For more classes visit www.assignmentcloud.com, FIN 366 Week 1 Individual Assignment Individual Reflection Paper • Reflect on your current knowledge of financial institutions and markets. • Define financial markets and share experiences you have had with at least one type of financial market or institution in a 350- to 700-word paper. Explain the main functions that market or institution performs. • Format your paper according to APA standards. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-1-Individual-Assignment-Individual-Reflection-Paper For more classes visit www.assignmentcloud.com, FIN 366 Week 2 DQ 1 What was the purpose of establishing the Federal Reserve? Do you think the Federal Reserve fulfils that purpose? Explain. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-2-DQ-1 For more classes visit www.assignmentcloud.com, FIN 366 Week 2 DQ 2 How did the Federal Reserve System try to solve problems from the National Banking Act? Was it successful? Explain. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-2-DQ-2 For more classes visit www.assignmentcloud.com, FIN 366 Week 2 Individual Assignment The Role of Financial Institutions in Financial Markets Paper To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-2-Individual-Assignment-The-Role-of-Financial-Institutions-in-Financial-Markets-Paper For more classes visit www.assignmentcloud.com • Write a 700- to 1,050-word paper, describing at least three major financial institutions. • Describe possible markets those institutions, such as those in the following list, are involved with and explain interactions among them. Cite at least two sources. o Commercial banks o Insurance organizations o Investment banks o Pension funds o Mutual funds o Underwriting stock or bond insurance o Insurance products • Format your paper according to APA standards., FIN 366 Week 3 DQ 1 Describe an interest rate risk you face in your personal life. How is it different from a credit risk? Which is easier to manage? Explain your answer. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-3-DQ-1 For more classes visit www.assignmentcloud.com, FIN 366 Week 3 DQ 2 Foreign stocks may present a risk. Explain those risks in terms of exchange versus country or sovereign risk. Do you believe foreign markets are more stable than domestic markets? Explain your answer. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-3-DQ-2 For more classes visit www.assignmentcloud.com, FIN 366 Week 3 Individual Assignment Federal Reserve Paper • Write a 700- to 1,050-word paper, explaining reasons behind bank regulations. • Address the Federal Reserve’s primary functions, describing the effect its policies have on financial markets and institutions, including the effect they have on interest rates. • Format your paper according to APA standards. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-3-Individual-Assignment-Federal-Reserve-Paper For more classes visit www.assignmentcloud.com, FIN 366 Week 4 DQ 1 Why are junk bonds perceived as offering high returns with high risk? Which of the numerous risks associated with bonds is the most tolerable in your opinion? Explain why. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-4-DQ-1 For more classes visit www.assignmentcloud.com, FIN 366 Week 4 DQ 2 If you have an opportunity to invest your retirement money on your own, would you invest a large amount of that money in the money market, stock market, or bond market? Explain. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-4-DQ-2 For more classes visit www.assignmentcloud.com, FIN 366 Week 4 Individual Assignment Financial Transaction Risks • Describe risk exposures, using the Financial Transaction Risks Table on the student Web site. • Describe features you would choose to measure interest risks and identify which transactions are influenced by interest rates or income. Some are influenced by both. To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-4-Individual-Assignment-Financial-Transaction-Risks For more classes visit www.assignmentcloud.com, FIN 366 Week 5 Individual Assignment Global Financial Stability Paper To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-5-Individual-Assignment-Global-Financial-Stability-Paper For more classes visit www.assignmentcloud.com • Resources: Week Five readings, Internet • Prepare a 1,000- to 1,250-word paper on one of the following topics: o Balance of payments o Countertrade o Eurocurrency market o Foreign exchange rates o International banking facilities o London Interbank Offered Rate o International Banking Act of 1978 • Explain how the topic you chose relates to the growth of U.S. banking overseas. Include information how your topic contributes to interdependence among economies and financial markets, and to global financial stability. Use at least three sources, including the readings. • Format your paper according to APA standards., FIN 366 Week 5 Learning Team Assignment Market Participation Paper • Write a 1,400- to 1,750-word paper, describing how businesses, government units, institutional investors, and individuals participate in money, stock, and bond markets. Describe the roles, functions, and differences between the markets. Include a brief summary of how each market works. Format your paper and presentation to APA standards To purchase this material click below link http://www.assignmentcloud.com/FIN-366/FIN-366-Week-5-Learning-Team-Assignment-Market-Participation-Paper For more classes visit www.assignmentcloud.com

DEVRY ETHC 445 Entire Course With Final Exam Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-entire-course For more classes visit http://www.assignmentcloud.com ETHC 445 Entire Course With Final Exam ETHC 445 Week 1 Assignment Ethics Paper ETHC 445 Week 1 DQ 1 Helen s Wisdom of Friends Dilemma ETHC 445 Week 1 DQ 2 Study of Ethical Philosophy ETHC 445 Week 1 Quiz ETHC 445 Week 2 Assignment Ethics Paper ETHC 445 Week 2 DQ 1 When Siding with the Majority ETHC 445 Week 2 DQ 2 The Struggle of Good vs. Evil ETHC 445 Week 3 Assignment Ethics Paper ETHC 445 Week 3 DQ 1 Applying the Death Penalty ETHC 445 Week 3 DQ 2 Living in Our State of Nature ETHC 445 Week 3 Quiz ETHC 445 Week 4 Assignment Ethics Paper ETHC 445 Week 4 DQ 1 Ethics of Controlling Environmental Innovation ETHC 445 Week 4 DQ 2 Kant Accomplice to Crazed Murderer ETHC 445 Week 5 Assignment You Decide Scenario and Response Solution Paper ETHC 445 Week 5 DQ 1 Life & Death Politics & Ethics ETHC 445 Week 5 DQ 2 Dealing With Emergencies and Outcomes ETHC 445 Week 6 DQ 1 Applying Rand’s Objectivism ETHC 445 Week 6 DQ 2 Working Conflict Resolution Methods ETHC 445 Week 6 Quiz ETHC 445 Week 7 DQ 1 Business Ethics & the Hovercraft Debacle ETHC 445 Week 7 DQ 2 Assemble and Test Your Personal Ethics Statement ETHC 445 Week 8 Final Exam, DEVRY ETHC 445 Final Exam Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-final-exam For more classes visit http://www.assignmentcloud.com ETHC 445 Final Exam 1. (TCOs 2, 4, 5, 6) The idea that the assisted suicide of terminally ill patients should be allowed simply at the patient’s direction reflects what type of ethics? (Points : 5) Hobbes’ State of Nature Rand’s Objectivism Aristotle’s concept of Virtue Thomas Aquinas’ concept of conscience Socrates’ concept of excellence 2. (TCOs 1, 2, 7) What is the moral ideal of temperance? (Points : 5) Exercising control over one’s own desires and inclinations Keeping one’s temper under control Minimizing the impact of one’s decisions Seeking the good of others before one’s own Overcoming one’s passions 3. (TCOs 1, 2) One of the common errors in Ethics is that of the hasty conclusions. Hasty conclusions consist of what? (Points : 5) Rushed work under pressure Comparing unknown cases to known ones to find precedents Embracing conclusions before examining cases fully Judging cases by the source of their origin Belief that first impressions are valid until challenged 4. (TCO 2) Prescriptive language is commonly used in ethics for what reason? (Points : 5) To indicate what is prohibited or impossible To indicate that one choice is better than others To show what actions are legal To convey requirements and obligations To indicate that there are really no choices available 5. (TCOs 7, 8) Ethical Egoism proposes that all decisions should be made to promote what? (Points : 5) Our fiduciary responsibilities The good will of others Our self-interests The welfare of the community Stronger relationships 6. (TCOs 2, 4, 9) Free people are motivated toward forming social structures according to a social contract in order to overcome what problem identified by Thomas Hobbes? (Points : 5) The need to overcome disagreements A perpetual state of warfare The establishment of a monarchy Taxation to support the costs of government Organized ways to select leaders 7. (TCOs 3, 6) Agricultural biofuels are not properly a renewable source of energy in the environmental ethics debate. Which of the following also is not a renewable source of energy? (Points : 5) Windmill turbines Hydroelectric power Tidal flow generators Biomass waste systems Solar cells 8. (TCOs 3, 6, 7) The notion that the only thing good without qualification is a good will is attributed to whom? (Points : 5) St. Thomas Aquinas Socrates John Locke Immanuel Kant Oliver Cromwell 9. (TCOs 8, 9) Which ethical concept is organized and directed toward following the greatest happiness principle? (Points : 5) Natural ethics and law Justice and mercy Rights and responsibilities Virtue-ethics of excellence Principle of utility 10. (TCOs 3, 6, 7) Syllogisms in formal deductive logic are called “valid” when: (Points : 5) the correct form of the syllogism style is used. the premise statements are true. the syllogism is first determined to be “sound.” the verbs are written in present tense. the conclusion proceeds from the premises. 11. (TCOs 1, 2) When choosing one course of action while working with a dilemma, the other courses of action are lost and become unavailable. This makes ethical choices in dilemma situations particularly what? (Points : 5) Incoherent Complicated Illogical Painful Cruel 12. (TCOs 1, 2, 7) What is the role of conscience as Thomas Aquinas sees it? (Points : 5) To teach ethical principles To disclose and build religious faith To enable rational thought about consequences To align personal ethics with those of others To guide actions through a view of right and wrong 13. (TCOs 2, 8) The rule or principle to be applied in making decisions is an example of which kind of ethical discovery process? (Points : 5) Principle of utility A posteriori rationality A priori rationality Empirical rationality Scientific method 14. (TCOs 1, 2, 5) The Social Contract theorist whose troubled childhood was most clearly reflected in his theories was who? (Points : 5) Thomas Aquinas Thomas Jefferson Jean-Jacques Rousseau Thomas Hobbes John Locke 15. (TCOs 3, 6, 7) Kant’s concern that people choose to observe universal laws as their duty is expressed through what actions? (Points : 5) Their habits Their maxims Their desires Their loves Their loyalties 16. (TCOs 2, 7, 8) Aristotle’s Ethics of Virtue have found modern application for business and industry through what practice? (Points : 5) Resolution models applications Goals and objectives Core values of organizations Business models Professional codes of discipline 17. (TCOs 2, 8) Professional codes of conduct serve what function for business and industry? (Points : 5) Allow businesses to avoid training professional staffers Enable transfer of valued employees across state lines Enable contracting of temporary employees Specify continuing education needs and requirements Providing assurance of the professional qualifications of members 18. (TCOs 2, 7) Aristotle’s Ethical Doctrine of the Mean measured personal virtues on a scale that included the virtue itself, the excess of it, and the deficiency of it. If the virtue is COURAGE and the deficiency is COWARDICE, what is the excess? (Points : 5) Wisdom Moderation There is no excess Recklessness Love 19. (TCOs 8, 9) In personal or organizational conflict, what benefits accrue to all parties when a leader or consultant employees one of the ethical conflict resolution models of Week 6? (Points : 5) Objectives of what winning the conflict means get refined and better understood Conflict management gets slowed down and settled. Conflict can be handled in a sequential, step-by-step manner Parties can be reconciled without solving the issues Personal relationships can be separated from issues 20. (TCOs 1, 2) The Latin term a priori describes the origin of knowledge developed rationally, and the term a posteriori describes knowledge developed through observation and experience. What is an example of ethics is best described as discovered in an a postiori manner? (Points : 5) Social ethics Care-based ethics Consequentialist ethics Theological ethics Operational ethics Page 2 – Essays 1. (TCOs 1, 2, 3, 7) In support of TCO #7 and in the Week 7 discussions, you developed and placed into the threaded discussions your personalized ethics statement of what has become important to you in the practice of ethics as you have practiced ethics during the course. Your first task in this question is to briefly present that personalized statement in just a few sentences before continuing with the question. Much of the rest of the exam will involve your working with that personalized statement through brief applications and cases. Use your ethical philosophy to solve the following ethical situation. Explain how your philosophy helped you make your decision. Should citizens have an ethical obligation to serve their country when it is at war? Under what circumstances, if any, is it ethical for a person to refuse to serve? A significant number of people believe war is always wrong, and that no circumstances justify one nation’s taking up arms against another. Is this view ethically sound? How about realistically? Please state which side you agree with, and why. Explain and defend your position using your ethical position statement. In answering, be sure to look at both sides of war: that is, a country defending itself against aggression and of a strong country coming to the aid of a weaker country that has been attacked unjustly. Then, explain how your ethical philosophy affected how you answered this problem. (Points : 30) 2. (TCOs 1, 2, 7) Analyze the following ethical situation using YOUR ethical philosophy. Read the situation and then in your answer, explain why this is an ethical situation, what the “issues” are, and how an “ethical” person would resolve them. Explain how YOUR ethical philosophy has helped you read a conclusion about how to resolve or analyze this situation. Employees’ worth to their employers may diminish before they are eligible for retirement. In such cases, the employer is faced with the dilemma of choosing between retaining an old and trusted yet unproductive worker for 5 or 10 more years, or firing that worker and jeopardizing his or her retirement benefits. 1. Should an employer have an ethical obligation to keep such unproductive, but loyal employees? What if the employee had been a problem his or her entire career? Are there certain circumstances where your answer to these questions would be different? 2. What is the duty of an unproductive employee to his or her employer? Is there an ethical obligation to retire when productivity begins to wane? If a person is simply “coasting” for his or her last few years, is that person “unethical?” Be sure to explain your answer. (Points : 30) 3. (TCOs 1, 7, 9) How do you feel St. Thomas Aquinas would have solved the above ethical situation differently or the same as you did using your philosophy? Please explain the reasons for the similarities or differences. (Points : 40) 4. (TCOs 1, 2, 4, 9) A first-term junior senator has placed a bill before the Senate that promises to correct tax inequities that affect thousands of workers. However, the bill is being held up in committee. The senior senator who serves as Sub-Committee Chairperson is responsible. The senator, however, has learned of a secret scandal in the Chairperson’s personal life. The junior senator visits the Chairperson and tells him that unless the bill is released from committee, he will divulge the scandal to the press. The Chairperson then releases the bill from committee and it is passed—and becomes law. Identify and tell what ethical philosophy the senior and junior senators are using, if any. Now, use your ethical philosophy to analyze the situation. Explain how, using your philosophy, you would have solved this situation either the same way as the characters in the situation did, or differently. Why? (Points : 30) 5. (TCOs 5, 6) You work for a grocery store and a new manager is hired to oversee your department. He comes into your department (the butcher shop) and explains to you that for the past 6 months, your department has been losing money for the store because of the waste and spoilage going on from having to discard unsold meat and poultry. He tells you that from now on, he wants you to package ground meat in smaller, more compact packages, with older meat on the bottom of the package (so it is not visible to the customer) and the fresher meat on the top, where it is visible to the customers. In this way, you can move more of the older meat and still receive the top dollar for it. As he leaves the department where you were having the discussion, he turns and says, “And by the way, one more month of losses like we had last month from this department, and you can kiss your job goodbye.” Will you repackage the meat in the way he requested? Why or why not? Explain what ethical analysis you used to come to this conclusion. (Points : 30) 6. (TCOs 6, 8) Analyze your answer above using the Front Page of the Newspaper ethical dilemma resolution model. Show your steps. (Points : 40), DEVRY ETHC 445 Week 1 Assignment Ethics Paper Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-1-assignment-ethics-paper For more classes visit http://www.assignmentcloud.com ETHC 445 Week 1 Assignment Ethics Paper, DEVRY ETHC 445 Week 1 DQ 1 Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-1-dq-1 For more classes visit http://www.assignmentcloud.com ETHC 445 Week 1 DQ 1 Helen wants to move to a new community, and she is applying for a job with a small retail establishment. She is confident that she is fully qualified and will be able to perform well if she gets the job. The employer, however, has advertised for someone with three years of retail experience, and Helen only has two-and-a-half years. She is considering whether to exaggerate slightly on her resume in order to improve her chances of getting the job. Helen asks three friends to offer their advice on what she should do. -- Henry says, “Go ahead and claim three-and-a-half years of experience; they’re going to be so happy with your work that by the time they check (if they ever do) it won’t matter.” -- Jennifer says, “I’m sure you’ll arrive at the best decision on your own; I’ve always known you to be an honest person.” -- George says, “It is never all right to lie, even when you are unlikely to get caught and it seems relatively harmless to do so.” To begin our discussion this week, let's discuss some of the following questions: 1. Which of the Three Primary Schools of Ethics is each of Helen’s friends relying upon? 2. Can you imagine other people using the same approaches to arrive at different kinds of advice? 3. Do one of these Three Primary Schools of Ethics feel like the style you usually use already?, DEVRY ETHC 445 Week 1 DQ 2 Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-1-dq-2 For more classes visit http://www.assignmentcloud.com ETHC 445 Week 1 DQ 2 The study of Ethics and Philosophy is one which brings many different kinds of "thinkers" together. One person's philosophy on Ethics is another person's philosophy on Evil. We will be working this term on constructing personal ethical bases and understanding how Ethical Codes (both personal and professional) are created and followed. To start us thinking about the different areas of philosophy and ethics, and how we fit into the different molds or world views, let's discuss the differences and similarities between these views. To do this, let's look at the role of right and wrong, laws which regulate behavior, principles vs. morality, and the role of ethics in our society. To start out we'll answer some of these questions and create more of them as we go. Pick one of the following and respond to your classmates thoughts and views: 1. Do we need ethics if we have laws? Why or why not? 2. Is it ethical to change our own views of ethics based on the situation we are in? 3. Can we "legislate" ethics? 4. How does Aristotle's "virtue ethics" mirror your ethical view, or how is it different?, DEVRY ETHC 445 Week 1 Quiz Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-1-quiz For more classes visit http://www.assignmentcloud.com ETHC 445 Week 1 Quiz Which of the below behaviors are inappropriate in a course? Ethics involves issues of right and wrong, and emotionally charged issues and ideas; thus, the best way to ensure that my comments are taken in the way I mean them is to _____. Posting in the course's threaded discussions is an essential element in our online, asynchronous classroom. Which of the following is not true about value-adding posts in our course? Which of the following is the most appropriate response for a student to post to another student who has posted this: Choose from the following choices the way in which collegiality is valued in our course., DEVRY ETHC 445 Week 2 Assignment Ethics Paper Group Discussion Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-2-assignment-ethics-paper-group-discussion For more classes visit http://www.assignmentcloud.com ETHC 445 Week 2 Assignment Ethics Paper Group Discussion, DEVRY ETHC 445 Week 2 DQ 1 When Siding with the Majority Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-2-dq-1-when-siding-with-the-majority For more classes visit http://www.assignmentcloud.com ETHC 445 Week 2 DQ 1 When Siding with the Majority As our opening page states, Mark Twain warned that "Whenever you find yourself on the side of the majority, it is time to pause and reflect." It is likely that your parents warned you "not to follow the crowd," or your school counselors warned you about "peer pressure." The United States utilizes a democratic republic form of government, which espouses the "majority rule" in many instances. For example, when passing laws, Congress and state Legislators use majority voting. When electing our officials, the majority rules. But, is our government unethical? This week's thread will look at two or three "examples" of majority findings or rules. We will bring new ones in throughout the week, so be sure to visit back at least every other day and post your thoughts. Here is our first one for the week: The great majority of people seem to find nothing objectionable about the use of commercials in children's television programming. Yet a distinguished panel commissioned by the National Science Foundation found reason to disagree. After reviewing 21 relevant scholarly studies, they concluded:, DEVRY ETHC 445 Week 2 DQ 2 The Struggle of Good vs Evil Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-2-dq-2-the-struggle-of-good-vs-evil For more classes visit http://www.assignmentcloud.com ETHC 445 Week 2 DQ 2 The Struggle of Good vs Evil Personal struggles with one's own tendencies, desires, lusts, and self-interest have placed people in conflict with other people and their own communities farther back than any of us can read. We read about the struggles of others in history -- what about ourselves? Yes, us! What about our experiences of being ourselves? When we look back in history, we find people who are not so different from us -- struggling with their human nature -- and trying to live ethical lives in whatever way they can do so. They aspire to live ethical lifes and find themselves failing again and again. St. Augustine in the 5th Century held that although we feel free to make choices in life, our true nature as human beings includes a persistent disregard for what is good. On this view, we are sinners whose only hope for redemption lies in the gracious love of a merciful deity. Whatever I do on my own, Augustine would argue, is bound to be wrong; whatever I do right, must be performed by God through me. St. Thomas Aquinas in the 13th Century brought Aristotle’s theories back into “vogue,” soon after St. Augustine’s death (if 800 years is soon, that is.) He allowed humanity to have a bit of secularity along with faith, and his ethics allows for a Natural Law which can be found in the heart of man. Please be sure to listen to our Saints' Debate on the lecture tab before working in this thread. So, here we are in the 21st Century with all the sophistication and technology of the age. Does this account of human nature fit well with your own experience of human action? That is, do you observe (in yourself and others) an inclination toward evil instead of toward good? Bring in examples of scenarios which bolster your view, or which tend to bring your view (or others) into question., DEVRY ETHC 445 Week 3 Assignment Ethical Consideration Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-3-assignment-ethical-consideration For more classes visit http://www.assignmentcloud.com ETHC 445 Week 3 Assignment Ethical Consideration, DEVRY ETHC 445 Week 3 DQ 1 Applying the Death Penalty Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-3-dq-1-applying-the-death-penalty For more classes visit http://www.assignmentcloud.com ETHC 445 Week 3 DQ 1 Applying the Death Penalty First, here is a word of caution. With this discussion comes a tasking to discuss the death penalty in two ways: first, as an expression of the social contract, where one person has killed another in a violation of that other person’s right to peace and safety, and second, as a rules-based function of the justice system being applied to a difficult situation. What do you see going on that is a violation of the Hobbes/Locke social contract idea? And you might also connect it with any of the Three Schools, plus Aristotle, that you have read in past weeks—and especially with the rules-based ethics model. Here's the situation: In Manatee County, Florida, a judge sentenced a man to death—the first time this had happened in the county for over 19 years. Sentenced to death was a 25-year-old man for the January 7, 2004, murder of both of his parents by bludgeoning them to death in their bed with a baseball bat. Now, with your social contract ethicist hats on, tell us what you make of this quote by the judge at the sentencing, quoted from the front page of the November 17, 2007 Bradenton Herald: "You have not only forfeited your right to live among us, but under the laws of the state of Florida, you have forfeited the right to live at all." Have at it, good folks. But, rather than running off with reactions and opinions about the death penalty in general, please do keep it in the context of our social contract discussion for this week and also connected with ethics of justice., DEVRY ETHC 445 Week 3 DQ 2 Living in Our State of Nature Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-3-dq-2-living-in-our-state-of-nature For more classes visit http://www.assignmentcloud.com ETHC 445 Week 3 DQ 2 Living in Our State of Nature Social Contract theorists say that morality consists of a set of rules governing how people should treat one another that rational beings will agree to accept for their mutual benefit, on the condition that others agree to follow these rules as well. Hobbes runs the logic like this in the form of a logical syllogism: 1) We are all self-interested, 2) Each of us needs to have a peaceful and cooperative social order to pursue our interests, 3) We need moral rules in order to establish and maintain a cooperative social order, Therefore, self-interest motivates us to establish moral rules. Thomas Hobbes looked to the past to observe a primitive “State of Nature” in which there is no such thing as morality, and that this self-interested human nature was "nasty, brutish, and short" -- a kind of perpetual state of warfare John Locke disagreed, and set forth the view that the state exists to preserve the natural rights of its citizens. When governments fail in that task, citizens have the right—and sometimes the duty—to withdraw their support and even to rebel. Listen to Locke's audio on the lecture tab and read his lecturette to be able to answer this thread. Locke addressed Hobbes's claim that the state of nature was the state of war, though he attribute this claim to "some men" not to Hobbes. He refuted it by pointing to existing and real historical examples of people in a state of nature. For this purpose he regarded any people who are not subject to a common judge to resolve disputes, people who may legitimately take action to themselves punish wrong doers, as in a state of nature. Which philosophy do you espouse? In coming to grips with the two and considering your experience of society as it is today, think out loud about what you experiences as the State of Nature, and tell us what you would be willing to give up in exchange for civil order and personal security? You might consider what you have already given up in exchange for security as well as what might be required in coming days., DEVRY ETHC 445 Week 3 Quiz Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-3-quiz For more classes visit http://www.assignmentcloud.com ETHC 445 Week 3 Quiz Inferring a claim based on data is deductive logic, but what happens when the inference circumvents logical reasoning? A car salesman says this, in order to get you to buy a new car from him: Are you for or against the war on terrorism? All those old people are cheap. They never give me a fair tip when I park their cars in the valet parking lot. What kind of fallacy is operating here? If children cannot be executed for their crimes, why should we execute people with learning disabilities who have the mental capacity of children? What kind of fallacy is operating here? as well as what might be required in coming days., DEVRY ETHC 445 Week 4 Assignment Environmental Ethical Dilemma Tesco Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-4-assignment-environmental-ethical-dilemma-tesco For more classes visit http://www.assignmentcloud.com ETHC 445 Week 4 Assignment Environmental Ethical Dilemma Tesco, DEVRY ETHC 445 Week 4 DQ 1 Ethics of Controlling Environmental Innovation Check this A+ tutorial guideline at http://www.assignmentcloud.com/ethc-445-devry/ethc-445-week-4-dq-1-ethics-of-controlling-environmental-innovation For more classes visit http://www.assignmentcloud.com ETHC 445 Week 4 DQ 1 Ethics of Controlling Environmental Innovation Increasing food supplies are necessary to sustain growing populations around the world and their appetites for great food, quality products, and continuous availability. A great deal of expensive research is invested in developing technologies to deliver productive agriculture. Horticultural efforts to breed hybrid crops are seen as far back as history can observe, and there have been efforts to domesticate improved animals, as well. Gene splitting was a 1990s technology to improve the health and productivity of farm crops. With the 21st century have come genetically modified foods (GMF) through the use of nanotechnology to cause changes at the genetic and even molecular levels. These are very expensive technologies, and many new products have been patented and otherwise protected as proprietary products of intellectual property. Drive out to the country during growing season, and you will see signs identifying that the crop has been grown with a protected seed that cannot be used to produce retained seed for planting in the next growing season. In terms of this week’s TCOs, what ethical issues are raised by this legal process of patent protection, and how do we see the primary schools of ethics used in these proprietary measures? What, in this deontological week and in our learning to date, informs our understanding of this situation, and what should be done about it?

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