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FIN 534 Course Tutorial For more course tutorials visit www.uophelp.com
FIN 534 Course Tutorial FIN 534 Entire Course (Str Course) FIN 534 Week 1 Chapter 1 Solution • FIN 534 Week 1 Chapter 1 Solution • FIN 534 Week 1 Chapter 2 Solution • FIN 534 Week 2 Chapter 3 Solution • FIN 534 Week 3 Chapter 4 Solution • FIN 534 Week 3 Chapter 5 Solution • FIN 534 Week 4 Chapter 6 Solution • FIN 534 Week 4 Chapter 7 Solution • FIN 534 Week 5 Chapter 8 Solution • FIN 534 Week 5 Chapter 9 Solution • 1. Which of the following statements is CORRECT? • a. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. • b. It is generally easier to transfer one’s ownership interest in a partnership than in a corporation.
FIN 534 Course Tutorial FIN 534 Week 1 Chapter 2 Solution FIN 534 Week 1 DQ 1 • 1. Which of the following statements is CORRECT? • a. Typically, a firm’s DPS should exceed its EPS. • b. Typically, a firm’s EBIT should exceed its EBITDA. • Imagine a startup company of your own and briefly trace its development from a sole proprietorship to a major corporation with a focus on how that development would be financed.
FIN 534 Course Tutorial FIN 534 Week 1 DQ 2 Fin 534 Week 1 Quiz 1 • Week 1 discussion 2 • Discuss ways that the basic concepts we have discussed in this chapter directly impact your life. Provide specific examples to support your response. • You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction?
FIN 534 Course Tutorial FIN 534 Week 2 Chapter 3 Solution FIN 534 Week 2 DQ 1 • 1. Which of the following statements is CORRECT? • a. The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio. • b. If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE. • Week 2 discussion 1 • Assume you are deciding whether or not to invest in a particular company. Discuss which elements of which financial statements you would want to carefully examine. Explain your rationale.
FIN 534 Course Tutorial FIN 534 Week 2 DQ 2 FIN 534 Week 3 Chapter 4 Solution • Week 2 discussion 2 • From the e-Activity, determine if the company you analyzed would be a good investment for you or not. Provide specific examples to support your response. • 1. A $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? • a. The annual payments would be larger if the interest rate were lower.
FIN 534 Course Tutorial FIN 534 Week 3 Chapter 5 Solution FIN 534 Week 3 DQ 1 • 1 . Three $1,000 face value bonds that mature in 10 years have the same level of risk, hence their YTMs are equal. Bond A has an 8% annual coupon, Bond B has a 10% annual coupon, and Bond C has a 12% annual coupon. Bond B sells at par. Assuming interest rates remain constant for the next 10 years, which of the following statements is CORRECT? • Week 3 discussion 1 • Starting with your current situation, describe what you must do to ensure an annual retirement income of $60,000 starting at age 65.
FIN 534 Course Tutorial FIN 534 Week 3 DQ 2 FIN 534 Week 3 Quiz 2 • Week 3 discussion 2 • Discuss the impact of Standard & Poor’s downgrading the U.S. credit rating in 2011. Address current and likely future impact on U.S. business, individuals, the global economy and current financial practices. Provide specific examples to support your response. • a. Since companies can deduct dividends paid but not interest paid, our tax system favors the use of equity financing over debt financing, and this causes companies’ debt ratios to be lower than they would be if interest and dividends were both deductible.
FIN 534 Course Tutorial FIN 534 Week 4 Chapter 6 Solution FIN 534 Week 4 Chapter 7 Solution • 1. Which of the following statements is CORRECT? • a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio. • 1. Which of the following statements is CORRECT? • a. The constant growth model takes into consideration the capital gains investors expect to earn on a stock. • b. Two firms with the same expected dividend and growth rates must also have the same stock price.
FIN 534 Course Tutorial FIN 534 Week 4 DQ 1 FIN 534 Week 4 DQ 2 • Week 4 discussion 1 • Drawing on what you discovered in the e-Activity, discuss how instances of corporate mismanagement or fraud should be taken into account when assessing the risks associated with certain types of investments. • Week 4 discussion 2 • Discuss the non-rational factors that may have a role in the valuation of stocks and stock market equilibrium. Provide specific examples to support your response.
FIN 534 Course Tutorial FIN 534 Week 4 Quiz 3 FIN 534 Week 5 Chapter 8 Solution • 1. Which of the following statements is CORRECT? • 1) A time line is not meaningful unless all cash flows occur annually • 2) Time lines are useful for visualizing complex problems prior to doing actual calculations • 1. Which of the following statements is CORRECT? • a. Put options give investors the right to buy a stock at a certain strike price before a specified date. • b. Call options give investors the right to sell a stock at a certain strike price before a specified date.
FIN 534 Course Tutorial FIN 534 Week 5 Chapter 9 Solution FIN 534 Week 5 DQ 1 • 1. Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common stock. Since new stock has a • Week 5 discussion 1 • Based on what you discovered in the e-Activity, make at least two recommendations for regarding how your selected company should approach its capital budgeting. Explain the reasoning behind your recommendations.
FIN 534 Course Tutorial FIN 534 Week 5 Quiz 4 FIN 534 Week 6 Chapter 10 Solution • Question 1 • Assume that in recent years both expected inflation and the market risk premium (rM • − rRF) have declined. Assume also that all stocks have positive betas. Which of the following would be most likely to have occurred as a result of these changes? • 1. Which of the following statements is CORRECT? • a. The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
FIN 534 Course Tutorial FIN 534 Week 6 Chapter 11 Solution FIN 534 Week 6 DQ 1 • . An externality is a situation where a project would have an adverse effect on some other part of the firm’s overall operations. If the project would have a favorable effect on other operations, then this is not an externality. • Analyze the concept of “stress test” as applied to financial institutions and create a better alternative for assessing the viability of a financial institution.
FIN 534 Course Tutorial FIN 534 Week 7 Chapter 12 Solution FIN 534 Week 7 Chapter 13 Solution • 1. Which of the following statements is CORRECT? • a. Perhaps the most important step when developing forecasted financial statements is to determine the breakdown of common equity between common stock and retained earnings. • 1. Suppose Leonard, Nixon, & Shull Corporation’s projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company’s weighted average cost of capital is 11%, what is the value of its operations?
FIN 534 Course Tutorial FIN 534 Week 7 DQ 1 FIN 534 Week 7 DQ 2 • Week 7 discussion 1 • Analyze the process of forecasting financial statements and make at least one recommendation for improving the accuracy of forecasts. Provide specific examples to support your response. • Week 7 discussion 2 • Drawing on what you discovered in the e-Activity, determine what additional steps can be taken in the valuation of a corporation to avoid instances like the one you researched from occurring in the future. Provide specific examples to support your response
FIN 534 Course Tutorial FIN 534 Week 7 Quiz 6 FIN 534 Week 8 Chapter 14 Solution • Assume that the economy is in a mild recession, and as a result interest rates and money costs generally are relatively low. The WACC for two mutually exclusive projects that are being considered is 8%. Project S has an IRR of 20% while Project L's IRR is 15%. The projects have the same NPV at the 8% current WACC. However, you believe that the economy is about to recover, and money costs and thus your WACC will also increase. • a. Modigliani and Miller argue that investors prefer dividends to capital gains because dividends are more certain than capital gains. They call this the ―bird-in-the hand‖ effect.
FIN 534 Course Tutorial FIN 534 Week 8 Chapter 15 Solution FIN 534 Week 8 DQ 1 • 1. Which of the following statements best describes the optimal capital structure? • a. The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company’s earnings per share (EPS). • Week 8 discussion 1 • I examined PepsiCo to determine how it should address its free cash flow, either through distributions to shareholders or repurchasing of stock.
FIN 534 Course Tutorial FIN 534 Week 8 DQ 2 FIN 534 Week 8 Quiz 7 • Week 8 discussion 2 • Capital structure is the manner in which a firm’s assets are financed; that is, the right-hand side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm--debt, preferred stock, and common equity. • This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 12. The second 15 questions cover the material in Chapter 13. Be sure you are in the correct Chapter when you take the quiz.
FIN 534 Course Tutorial FIN 534 Week 9 Chapter 16 Solution FIN 534 Week 9 DQ 1 • . Swim Suits Unlimited is in a highly seasonal business, and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars): • Peak Off-Peak • Based on the content of this chapter and what you discovered in the e-Activity, analyze cash management technology and make at least one recommendation for another technique that would enhance working capital management. Explain the reasoning behind your recommendation.
FIN 534 Course Tutorial FIN 534 Week 9 DQ 2 FIN 534 Week 9 Quiz 8 • Week 9 discussion 2 • Create an idea for a startup venture and discuss the most viable way to raise the working capital to get the startup running. Explain your rationale. • Which of the following statements about dividend policies is correct?
FIN 534 Course Tutorial FIN 534 Week 10 Chapter 17 Solution FIN 534 Week 10 DQ 1 • 1. In Japan, 90-day securities have a 4% annualized return and 180-day securities have a 5% annualized return. In the United States, 90-day securities have a 4% annualized return and 180-day securities have an annualized return of 4.5%. All securities are of equal risk, and Japanese securities are denominated in terms of the Japanese yen. Assuming that interest rate parity holds in all markets, which of the following statements is most CORRECT? • Based on what you uncovered in the e-Activity, determine the most significant risk factors associated with investing in the company you selected when compared with investing in a domestic company. Provide specific examples to support your response.
FIN 534 Course Tutorial FIN 534 Week 10 DQ 2 FIN 534 Week 10 Quiz 9 • Week 10 discussion 2 • Recommend three policy changes that would make the Federal Reserve’s job of controlling U.S. interest rates easier. Explain your reasoning. • Finance 534 week 10 quiz 9 • Question 1 • Which of the following statements is NOT CORRECT?
FIN 534 Course Tutorial FIN 534 Week 11 DQ 1 FIN 534 Week 11 DQ 2 • Week 11 discussion 1 • Reflect on the lessons learned during this class and discuss the most interesting or surprising thing you learned. Explain what made it so. • Week 11 discussion 2 • Discuss how you plan on using what you learned in this course in your current or future position. What will prove to be the most valuable?
FIN 534 Course Tutorial FIN 534 Week 11 Quiz 10 FIN 536 Week 6 Quiz 5 • Suppose DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar. • Call options on XYZ Corporation’s common stock trade in the market. Which of the following statements is most correct, holding other things constant?
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