FIN 534 (Str) Read, Lead, Succeed/uophelpdotcom

1
FIN 534 (Str) Read, Lead, Succeed/uophelpdotcom

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2
FIN 534 Entire Course (Str Course)

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• 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
• FIN 534 Week 6 Chapter 10 Solution
• FIN 534 Week 6 Chapter 11 Solution

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FIN 534 Week 1 Chapter 1 Solution

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•  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 ones
  ownership interest in a partnership than in a
  corporation.
• c. One of the advantages of the corporate form of
  organization is that it avoids double taxation.
• d. One of the advantages of a corporation from a
  social standpoint is that every stockholder has
  equal voting rights, i.e., one person, one vote.

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FIN 534 Week 1 Chapter 2 Solution

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• 1. Which of the following statements is CORRECT?
•  
• a. Typically, a firms DPS should exceed its EPS.
• b. Typically, a firms EBIT should exceed its
  EBITDA.
• c. If a firm is more profitable than average
  (e.g., Google), we would normally expect to see
  its stock price exceed its book value per share.
• d. If a firm is more profitable than most other
  firms, we would normally expect to see its book
  value per share exceed its stock price,
  especially after several years of high inflation.

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FIN 534 Week 1 DQ 1

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• 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.

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FIN 534 Week 1 DQ 2

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• 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.
•  
•  

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Fin 534 Week 1 Quiz 1

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• Question 1
• You recently sold 100 shares of your new company,
  XYZ Corporation, to your brother at a family
  reunion. At the reunion your brother gave you a
  check for the stock and you gave your brother the
  stock certificates. Which of the following
  statements best describes this transaction?
•  
• 1) This is an example of an exchange of physical
  assets.
• 2) This is an example of a primary market
  transaction.
•  

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FIN 534 Week 2 Chapter 3 Solution

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•   
• 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.
• c. An increase in the DSO, other things held
  constant, could be expected to increase

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FIN 534 Week 2 DQ 1

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• 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.

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FIN 534 Week 2 DQ 2

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• 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.
•  

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FIN 534 Week 3 Chapter 4 Solution

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• 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.
• b. If the loan were amortized over 10 years
  rather than 7 years, and if the interest rate
  were the same in either case, the first payment
  would include more dollars of interest under the
  7-year amortization plan.
• c. The proportion of each payment that represents
  interest as opposed to repayment of principal
  would be lower if the interest rate were lower.
• d. The last payment would have a higher
  proportion of interest than the first payment.
• e. The proportion of interest versus principal
  repayment would be the same for each of the 7
  payments.

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FIN 534 Week 3 Chapter 5 Solution

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•  
•  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?
• a. Bond As current yield will increase each
  year.
• b. Since the bonds have the same YTM, they should
  all have the same price, and since interest rates
  are not expected to change, their prices should
  all remain at their current levels until maturity.

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FIN 534 Week 3 DQ 1

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• 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.
•  
•  

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FIN 534 Week 3 DQ 2

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• Week 3 discussion 2
• Discuss the impact of Standard Poors
  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.
•  
•  

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FIN 534 Week 3 Quiz 2

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•  
• Question 1
• Which of the following statements is CORRECT?
•  
• a. Since companies can deduct dividends paid but
  not interest paid, our tax system favors the use
  of equity financing over debt financing, and this
  causes companies debt ratios to be lower than
  they would be if interest and dividends were both
  deductible.
• b. Interest paid to an individual is counted as
  income for tax purposes and taxed at the
  individuals regular tax rate, which in 2008
  could go up to 35, but dividends received were
  taxed at a maximum rate of 15.
• c. The maximum federal tax rate on corporate
  income in 2008 was 50.

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FIN 534 Week 4 Chapter 6 Solution

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•   
• 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.
• b. If you were restricted to investing in
  publicly traded common stocks, yet you wanted to
  minimize the riskiness of your portfolio as
  measured by its beta, then according to the CAPM
  theory you should invest an equal amount of money
  in each stock in the market. That is, if there
  were 10,000 traded stocks in the world, the least
  risky possible portfolio would include some
  shares of each one.

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FIN 534 Week 4 Chapter 7 Solution

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• 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.
• c. It is appropriate to use the constant growth
  model to estimate a stock's value even if its
  growth rate is never expected to become constant.
• d. If a stock has a required rate of return rs
  12, and if its dividend is expected to grow at a
  constant rate of 5, this implies that the
  stocks dividend yield is also 5.

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FIN 534 Week 4 DQ 1

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• Week 4 discussion 1
• Drawing on what you discovered in the e-Activity,
  discuss how instances of corporate mismanagement
  or fraud should be taken into account when
  assessing the risks associated with certain types
  of investments.
•  Information is the investor's best tool when it
  comes to investing wisely. Often, the lack of
  reliable, readily available, current information
  also opens the door to fraud. It is easier for
  the unscrupulous to spread false information and
  to manipulate a stock's price when accurate
  information about the company is scarce.
• Source http//www.sec.gov/answers/infomatters.htm
  

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FIN 534 Week 4 DQ 2

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•  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.
•  
•  

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FIN 534 Week 4 Quiz 3

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•  
• .      Which of the following statements is
  CORRECT?
•  
• 1) A time line is not meaningful unless all
  cash flows occur annually
• 2) Time lines are useful for visualizing
  complex problems prior to doing actual
  calculations
• 3) Time lines cannot be constructed to deal
  with situations where some of the cash flows
  occur annually but others occur quarterly

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FIN 534 Week 5 Chapter 8 Solution

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• 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.
• c. Options typically sell for less than their
  exercise value.
• d. LEAPS are very short-term options that were
  created relatively recently and now trade in the
  market.
• e. An option holder is not entitled to receive
  dividends unless he or she exercises their option
  before the stock goes ex dividend.

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FIN 534 Week 5 Chapter 9 Solution

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•  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 higher cost than retained earnings,
  Bankston would like to avoid issuing new stock.
  Which of the following actions would REDUCE its
  need to issue new common stock?
• a. Increase the dividend payout ratio for the
  upcoming year.
• b. Increase the percentage of debt in the target
  capital structure.
• c. Increase the proposed capital budget.
• d. Reduce the amount of short-term bank debt in
  order to increase the current ratio.

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FIN 534 Week 5 DQ 1

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• 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.
• A capital budgeting analysis conducts a test to
  see if the benefits (i.e., cash inflows) are
  large enough to repay the company for three
  things  (1) the cost of the asset, (2) the cost
  of financing the asset (e.g., interest, etc.),
  and (3) a rate of return (called a risk premium)
  that compensates the company for potential errors
  made when estimating cash flows that will occur
  in the distant future.
•  

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FIN 534 Week 5 Quiz 4

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• Finance 534 week 5 quiz 4
•  
• 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?
• Answer
• Question 2

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FIN 534 Week 6 Chapter 10 Solution

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• 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.
• b. The payback method is generally regarded by
  academics as being the best single method for
  evaluating capital budgeting projects.
• c. The discounted payback method is generally
  regarded by academics as being the best single
  method for evaluating capital budgeting projects.

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FIN 534 Week 6 Chapter 11 Solution

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•  
• 1. Which of the following statements is CORRECT?
•  
• a. An externality is a situation where a project
  would have an adverse effect on some other part
  of the firms overall operations. If the project
  would have a favorable effect on other
  operations, then this is not an externality.
• b. An example of an externality is a situation
  where a bank opens a new office, and that new
  office causes deposits in the banks other
  offices to decline.

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FIN 534 Week 6 DQ 1

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• Week 6 discussion 1
• Analyze the concept of stress test as applied
  to financial institutions and create a better
  alternative for assessing the viability of a
  financial institution.
•  

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FIN 534 Week 7 Chapter 12 Solution

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• 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.
• b. The first, and perhaps the most critical, step
  in forecasting financial requirements is to
  forecast future sales.
• c. Forecasted financial statements, as discussed
  in the text, are used primarily as a part of the
  managerial compensation program, where
  managements historical performance is evaluated.

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FIN 534 Week 7 Chapter 13 Solution

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•  
•  
• 1. Suppose Leonard, Nixon, Shull Corporations
  projected free cash flow for next year is
  100,000, and FCF is expected to grow at a
  constant rate of 6. If the companys weighted
  average cost of capital is 11, what is the value
  of its operations?
•  
• a. 1,714,750
• b. 1,805,000
• c. 1,900,000
• d. 2,000,000
• e. 2,100,000

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FIN 534 Week 7 DQ 1

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• 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.
•  

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FIN 534 Week 7 DQ 2

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• 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.
•  

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FIN 534 Week 7 Quiz 6

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• Finance 534 week 7 quiz 6
•  
• Question 1
• Which of the following statements is CORRECT?
• Answer
• Question 2

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FIN 534 Week 8 Chapter 14 Solution

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•   
• 1. Which of the following statements about
  dividend policies is CORRECT?
•  
• 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.
• b. One reason that companies tend to avoid stock
  repurchases is that dividend payments are taxed
  at a lower rate than gains on stock repurchases.
• c. One advantage of dividend reinvestment plans
  is that they allow shareholders to avoid paying
  taxes on the dividends that they choose to
  reinvest.
• d. One key advantage of a residual dividend
  policy is that it enables a company to follow a
  stable dividend policy.

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FIN 534 Week 8 Chapter 15 Solution

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•  
• 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 companys earnings per share (EPS).
• b. The optimal capital structure is the mix of
  debt, equity, and preferred stock that maximizes
  the companys stock price.
• c. The optimal capital structure is the mix of
  debt, equity, and preferred stock that minimizes
  the companys cost of equity.
• d. The optimal capital structure is the mix of
  debt, equity, and preferred stock that minimizes
  the companys cost of debt.

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FIN 534 Week 8 DQ 1

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• 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.
•  

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FIN 534 Week 8 DQ 2

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• Week 8 discussion 2
• Capital structure is the manner in which a firms
  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.
•  

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FIN 534 Week 8 Quiz 7

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• Finance 534 week 8 quiz 7
•  
• 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.
•  
• Question 1
•  
• Last year Godinho Corp. had 250 million of
  sales, and it had 75 million of fixed assets
  that were being operated at 80 of capacity

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FIN 534 Week 9 Chapter 16 Solution

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• 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
•  Cash 50 30
•  Marketable securities 0 20
•  Accounts receivable 40 20
•  Inventories 100 50
•  Net fixed assets 500 500
•  Total assets 690 620
•  Payables and accruals 30 10
•  Short-term bank debt 50 0

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FIN 534 Week 9 DQ 1

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• Week 9 discussion 1
• 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.

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FIN 534 Week 9 DQ 2

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• 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.

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FIN 534 Week 9 Quiz 8

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• Correct Answer
• If a firm repurchases some of its stock in the
  open market, then shareholders who sell their
  stock for more than they paid for it will be
  subject to capital gains taxes.
• Question 4
• Which of the following statements is CORRECT?
•  
• Question 5

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FIN 534 Week 10 Chapter 17 Solution

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• 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?
• a. The yen-dollar spot exchange rate equals the
  yen-dollar exchange rate in the 90-day forward
  market.
• b. The yen-dollar spot exchange rate equals the
  yen-dollar exchange rate in the 180-day forward
  market.
• c. The yen-dollar exchange rate in the 90-day
  forward market equals the yen-dollar exchange
  rate in the 180-

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FIN 534 Week 10 DQ 1

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• Week 10 discussion 1
• Based on what you uncovered in the e-Activity,
  determine the most significant risk factors
  associated with investing in the company you
  selected when compared with investing in a
  domestic company. Provide specific examples to
  support your response.

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FIN 534 Week 10 DQ 2

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•  Week 10 discussion 2
• Recommend three policy changes that would make
  the Federal Reserves job of controlling U.S.
  interest rates easier. Explain your reasoning.
•  

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FIN 534 Week 10 Quiz 9

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• Finance 534 week 10 quiz 9
•  
•  
• Question 1
•  
• Which of the following statements is NOT CORRECT?
•  
• Question 2
•  
• Which of the following statements is CORRECT?
•  
• Question 3
•  
• Which of the following statements is CORRECT?
• Answer

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FIN 534 Week 11 DQ 1

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• 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.

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FIN 534 Week 11 DQ 2

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• 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?

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FIN 534 Week 11 Quiz 10

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• Finance 534 week 11 quiz 10
•  
• Question 1
•  
• Suppose DeGraw Corporation, a U.S. exporter,
  sold a solar heating station to a Japanese
  customer at a price of 143.5 million yen, when
  the exchange rate was 140 yen per dollar. In
  order to close the sale, DeGraw agreed to make
  the bill payable in yen, thus agreeing to take
  some exchange rate risk for the transaction. The
  terms were net 6 months. If the yen fell against
  the dollar such that one dollar would buy 154.4
  yen when the invoice was paid, what dollar amount
  would DeGraw actually receive after it exchanged
  yen for U.S. dollars?
• Question 2
•  

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FIN 536 Week 6 Quiz 5

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• Finance 534 week 6 Quiz5
•  
• Question 1
•  
• Call options on XYZ Corporations common stock
  trade in the market. Which of the following
  statements is most correct, holding other things
  constant?
•  
• Question 2

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FIN 534 (Str) Read, Lead, Succeed/uophelpdotcom

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