FIN 534 TUTOR Learn by Doing / fin534tutor.com

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FIN 534 TUTOR Learn by Doing / fin534tutor.com
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FIN 534 TUTOR Learn by Doing
FIN 534 Entire Course (Str Course)    FOR MORE
CLASSES VISIT www.fin534tutor.com FIN 534 Week 1
Chapter 1 Solution FIN 534 Week 1 Chapter 2
Solution FIN 534 Week 2 Chapter 3 Solution FIN
534 Week 3 Chapter 4 Solution FIN 534 Week 3
Chapter 5 Solution FIN 534 Week 4 Chapter 6
Solution FIN 534 Week 4 Chapter 7 Solution FIN
534 Week 5 Chapter 8 Solution
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FIN 534 TUTOR Learn by Doing
FIN 534 Week 1 Chapter 1 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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.
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FIN 534 TUTOR Learn by Doing
FIN 534 Week 1 Chapter 2 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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,
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FIN 534 TUTOR Learn by Doing
  FIN 534 Week 1 DQ 1 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com Imagine a
startup company of your own and briefly trace its
development from a sole proprietorship to a major
corporation with a focus on how that development
would be financed.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 1 DQ 2 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com 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 TUTOR Learn by Doing
 Fin 534 Week 1 Quiz 1 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com Question 1 You
recently sold 100 shares of your new company, XYZ
Corporation, to your brother at a family reunion.
 At the reunion your brother gave you a check for
the stock and you gave your brother the stock
certificates.  Which of the following statements
best describes this transaction? 1) This is an
example of an exchange of physical assets. 2)
This is an example of a primary market
transaction. 3) This is an example of a direct
transfer of capital.
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FIN 534 TUTOR Learn by Doing
FIN 534 Week 2 Chapter 3 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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 the total assets turnover
ratio.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 3 Chapter 4 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 1 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.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 3 Chapter 5 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om  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?
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FIN 534 TUTOR Learn by Doing
  FIN 534 Week 3 Quiz 2 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com Question
1 Which of the following statements is
CORRECT? a. Since companies can deduct dividends
paid but not interest paid, our tax system favors
the use of equity financing over debt financing,
and this causes companies debt ratios to be
lower than they would be if interest and
dividends were both deductible. b. Interest paid
to an individual is counted as income for tax
purposes and taxed at the 
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FIN 534 TUTOR Learn by Doing
  FIN 534 Week 4 Chapter 6 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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 
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FIN 534 TUTOR Learn by Doing
   FIN 534 Week 4 Chapter 7 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 4 Quiz 3 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com 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 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 TUTOR Learn by Doing
 FIN 534 Week 5 Chapter 8 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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. 
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 5 Chapter 9 Solution (Str Course)
    FOR MORE CLASSES VISIT www.fin534tutor.com 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.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 5 Quiz 4 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com 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   Qu
estion 2 
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FIN 534 TUTOR Learn by Doing
  FIN 534 Week 6 Chapter 10 Solution (Str Course)
    FOR MORE CLASSES VISIT www.fin534tutor.com 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.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 6 Chapter 11 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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 TUTOR Learn by Doing
 FIN 534 Week 6 Quiz 5 (Str Course)   www.fin534tu
tor.com 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  Other things held
constant, the value of an option depends on the
stock's price, the risk-free rate, and
the  Question 3 
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 7 Chapter 12 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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. 
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FIN 534 TUTOR Learn by Doing
  FIN 534 Week 7 Chapter 13 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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 
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 8 Quiz 7 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com 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.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 8 Chapter 14 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 8 Chapter 15 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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.
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 8 Quiz 7 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com 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.   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 TUTOR Learn by Doing
 FIN 534 Week 9 Chapter 16 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 9 Quiz 8 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com Question
1  Which of the following statements about
dividend policies is correct?  Question 2  If a
firm adheres strictly to the residual dividend
policy, the issuance of new common stock would
suggest that  Question 3  Which of the following
statements is correct? Answer 
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FIN 534 TUTOR Learn by Doing
  FIN 534 Week 10 Chapter 17 Solution (Str
Course)   FOR MORE CLASSES VISIT www.fin534tutor.c
om 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 
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 10 Quiz 9 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com 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  Question 4 
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FIN 534 TUTOR Learn by Doing
 FIN 534 Week 11 Quiz 10 (Str Course)   FOR MORE
CLASSES VISIT www.fin534tutor.com 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
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FIN 534 TUTOR Learn by Doing