FIN 571 GENIUS Making Decisions/fin571genius.com

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FIN 571 GENIUS Making Decisions/fin571genius.com

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FIN 571 Final Exam Guide (New) FOR MORE CLASSES
VISIT www.fin571genius.com 1.A proxy fight occurs
when the board of directors disagree on the
members of the management team. 2. A stakeholder
is any person or entity 3.Which one of the
following is least apt to help convince managers
to work in the best interest of the stockholders?
threat of a proxy fight pay raises based on
length of service implementation of a stock
option plan 4.Financial managers primarily create
firm value by maximizing current sales.
investing in assets that generate cash in excess
of their cost. 5.First City Bank pays 7 percent
simple interest on its savings account balances,
whereas Second City Bank pays 7 percent interest
compounded annually.
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FIN 571 Final Exam Guide Set 2 (NEW) FOR MORE
CLASSES VISIT www.fin571genius.com Financial
managers should primarily strive to 2. The
process of planning and managing a firm's
long-term assets is called 3. Which one of the
following actions by a financial manager creates
an agency problem? 4. Which one of these is a
cash outflow from a corporation? 5. For each of
the following, compute the present value 6.
Gerold invested 115 in an account that pays 5
percent simple interest. How much money will he
have at the end of 5 years? 7. What is the future
value of 920 a year for 5 years at a 6 percent
interest? 8. You bought 360 shares of stock at a
total cost of 7,754.40. You received a total of
403.20 in dividends and sold your shares for
19.98 a share. What was your total rate of
return? 9. A year ago, you purchased 500 shares
of New Tech stock at a price of 49.03 per share.
The stock pays an annual dividend of .10 per
share. Today, you sold all of your shares for
58.14 per share. What is your total dollar
return on this investment?
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FIN 571 Week 1 Connect Problems (Math and
Accounting Review) FOR MORE CLASSES
VISIT www.fin571genius.com FIN 571 Week 1 Connect
Problems (Math Accounting Review) 1. Functions
Excel will make your life as a finance student
much easier. This section will show how to use
various functions in Excel. Once you understand
the how and why of a particular financial
equation, you can make 1. Which Excel cell entry
will calculate the square root of 165? 2. Which
statements about Excels FV function are correct?
3. Which fields are required to calculate net
present value (NPV) in Excel? 4. Which Excel
function is used to calculate the amount of each
annuity payment? 5. Which fields are required to
calculate the rate of return (RATE) for a present
value calculation in Excel? 2. The Balance Sheet
This lesson will help you refresh your knowledge
on the basics of the balance sheet.
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FIN 571 Week 1 Connect Problems (Week 1 Problem
Set) FOR MORE CLASSES VISIT www.fin571genius.com F
IN 571 Week 1 Connect Problems (Week 1 Problem
Set) 1.The ultimate control of a corporation lies
in the hands of the corporate president. board
of directors. chairman of the board. chief
executive officer. stockholders. 1. (Set 2) If a
firm is currently profitable, then it will
always have sufficient cash to pay its bills in a
timely manner. the timing of the cash flows on
proposed projects is irrelevant. its current cash
inflows must exceed its current cash outflows.
its cash flows are known with certainty. its
reported sales exceed its costs. 2.Which one of
these is a cash outflow from a corporation? sale
of an asset dividend payment profit retained by
the firm sale of common stock issuance of debt
2.(Set 2) Short-term finance deals with
acquiring and selling fixed assets. financing
long-term projects.
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FIN 571 Week 1 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com What is ethics? If you
follow all applicable rules and regulations, are
you an ethical person?
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FIN 571 Week 1 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com Assume that interest
rates have increased substantially. Would this
tend to increase or decrease      the market
value (meaning the price an investor in the
firm's paper is willing to pay) of a firms
liabilities (relative to the book value of
liabilities)? 
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FIN 571 Week 1 Individual Assignment Business
Structures FOR MORE CLASSES VISIT www.fin571genius
.com 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.
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FIN 571 Week 2 Connect Problems FOR MORE
CLASSES VISIT www.fin571genius.com FIN 571 Week 2
Connect Problems 1.Sankey, Inc., has current
assets of 4,230, net fixed assets of 25,700,
current liabilities of 3,500, and long-term debt
of 14,400. What is the value of the
shareholders' equity account for this firm?
2.Which one of the following assets is generally
the most liquid? 3.Which one of the following
accounts is included in stockholders' equity?
4.It is easier to evaluate a firm using its
financial statements when the firm
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FIN 571 Week 2 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com In order to receive
proper credit, please reply to this message when
posting your answers to WK2 DQ1.           
Suppose you own 1 million worth of 30-year
Treasury bonds. Is this asset riskless??         
You own 1 million worth of 90-day Treasury
bills. You roll over this investment every 90
days by reinvesting the proceeds in another issue
of 90-day Treasury bills. Is this investment
riskless?? Can you think of an asset that is
truly riskless?
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FIN 571 Week 2 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com Suppose rf is 5
and rM is 10. According to the SML and the CAPM,
an asset with a beta of -2.0  has a required
return of negative 5 5 - 2(10 - 5). Can this
be possible? Does this mean that  the asset has
negative risk? Why would anyone ever invest in an
asset that has an expected and required return
that is negative? Explain
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FIN 571 Week 2 Individual Assignment Business
Structure Advice FOR MORE CLASSES
VISIT www.fin571genius.com 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?
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FIN 571 Week 2 Individual Assignment Ethics and
Finance FOR MORE CLASSES VISIT www.fin571genius.co
m The Sarbanes-Oxley Act of 2002 (SOX) was passed
as the result of the Enron scandal and other
instances of accounting fraud. This act was
passed to strengthen the role of the Securities
and Exchange Commission (SEC). Research a case of
corporate financial abuse related to the
Sarbanes-Oxley Act of 2002 and apply this to your
current work or desired place of employment.
Create a 1,400-word analysis of the application
of SOX in which you include the following
Discuss the mistakes made by the company and
their leadership. Discuss the steps leadership
could have taken to prevent or mitigate the
repercussions. Explain the role of market
pressures on unethical behavior.
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FIN 571 Week 2 Individual Assignment Ratio
Analysis Problems FOR MORE CLASSES
VISIT www.fin571genius.com Ratio
Analysis (Individual Assignment)  You may use
excel or word.doc format for this
assignment.Please post your homework as a
word.doc or excel file in the class discussion
section below by the due date. 1.  Analysis of
cost of goods sold problem.                      
                                                 
             1992       1993    1994       Gross
Profit Margin                                    
                 60     55     51  What is
happening to cost of goods sold?  As was done in
the week 2 online lecture on ratio analysis,
please assume sales of 1 dollar each year as you
do your analysis.  This problem follows the
process shown in the Week 2 Ratio Analysis online
lecture section titled "Another Income Statement
Analytical Approach Percent of Sales"
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FIN 571 Week 2 Learning Team Reflection FOR
MORE CLASSES VISIT www.fin571genius.com 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.
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FIN 571 Week 3 Connect Problems FOR MORE
CLASSES VISIT www.fin571genius.com FIN 571 Week 3
Connect Problems If the Garnett Corp. has a 15
percent ROE and a 25 percent payout ratio, what
is its sustainable growth rate? 1.If the Hunter
Corp. has an ROE of 15 and a payout ratio of 18
percent, what is its sustainable growth rate
2.The most recent financial statements for
Williamson, Inc., are shown here Assets and costs
are proportional to sales. Debt and equity are
not. No dividends are paid. Next years sales are
projected to be 8,418. What is the external
financing needed? 3.The maximum rate at which a
firm can grow while maintaining a constant
debt-equity ratio is best defined by its
4.Financial planning, when properly executed
5.Projected future financial statements
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FIN 571 Week 3 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com Why are interest rates
on short-term loans not necessarily comparable to
each other? Give three possible reasons.
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FIN 571 Week 3 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com Optical Supply Company
offers credit terms of 2/10, net 60. If Optical
Supply is considering a change in its credit
terms to one of those indicated, explain whether
the change should increase   or decrease sales.
(a) 2/10, net 30, (b) net 60, (c) 3/15, net 60,
(d) 2/10, net 30, 30 extra
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FIN 571 Week 3 Individual Assignment
Interpreting Financial Results FOR MORE CLASSES
VISIT www.fin571genius.com 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.
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FIN 571 Week 3 Learning Team Reflection FOR
MORE CLASSES VISIT www.fin571genius.com Watch the
"Concept Review Video Working Capital
Management" video located in theWileyPLUS
Assignment Week 3 Videos Activity.   Discuss stra
tegies 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.
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FIN 571 Week 3 Team Assignment Financial
Statement Interpretation FOR MORE CLASSES
VISIT www.fin571genius.com Select three publicly
traded companies. Choose one each from the
following sectors manufacturing, service, and
retail. At least one of the three companies
should be foreign. If possible, choose from among
the team members' places of business or similar
industries. Calculate the following Current
ratio Quick ratio Net profit margin Asset
utilization Financial leverage Analyze the
Return on Equity (ROE) for the last 2 years using
the DuPont method. Develop a 2,100-word
comparison of your three companies in which you
include the following Discuss the differences
in the industries
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FIN 571 Week 4 Connect Problems FOR MORE
CLASSES VISIT www.fin571genius.com FIN 571 Week 4
Connect Problems Q-1 Even though most corporate
bonds in the United States make coupon payments
semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company
issues a bond with a par value of 1,000, 20
years to maturity, and a coupon rate of 7 percent
paid annually. If the yield to maturity is 8.1
percent, what is the current price of the bond?
(Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
Q-1 (Set 2) Watters Umbrella Corp. issued 30-year
bonds 2 years ago at a coupon rate of 7.4
percent. The bonds make semiannual payments. If
these bonds currently sell for 83 percent of par
value, what is the YTM? (Do not round
intermediate calculations and enter your answer
as a percent rounded to 2 decimal places,
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FIN 571 Week 4 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com A firm uses a single
discount rate to compute the NPV of all its
potential capital budgeting projects, even though
the projects have a wide range of
nondiversifiable risk. The firm then undertakes
all those projects that appear to have positive
NPVs. Briefly explain why such a firm would tend
to become riskier over time.
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FIN 571 Week 4 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com Phyllis believes that
the firm should use straight-line depreciation
for a capital project because it results in
higher net income during the early years of the
projects life. Joanna believes that the firm
should use the modified accelerated cost recovery
system depreciation because it reduces the tax
liability during the early years of the projects
life. Assuming you have a choice between
depreciation methods, whose advice should you
follow? Why?
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FIN 571 Week 4 Individual Assignment Analyzing
Pro Forma Statements FOR MORE CLASSES
VISIT www.fin571genius.com 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 
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FIN 571 Week 4 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571genius.com 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.
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FIN 571 Week 4 Team Assignment Operating
Leverage and Forecasting FOR MORE CLASSES
VISIT www.fin571genius.com Operating Leverage
and Forecasting Problems Team Assignment Please
complete the following problems.  When
calculating earnings per share and PE ratios,
please show your work.  This problem is similar
to the examples shown in the lecture. You
manufacture hunting pack systems in China for 80
dollars each, including shipping.  The
manufacturing costs only include variable costs. 
Variable costs are not calculated as a percentage
of sales in this case.   Sales  are a function of
the number of packs sold and the price per pack.
Likewise, variable costs are a function of the
number of packs sold and the cost to produce each
pack. You sell these packs to retailers for 200
dollars each.  In the current year you will sell
100,000 packs.  Your fixed costs including such
items as insurance, marketing, travel, shows,
office supplies, warehouse rentals etc. totals 5
million dollars this year and are not part of the
80
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FIN 571 Week 5 Connect Problems FOR MORE
CLASSES VISIT www.fin571genius.com 1.The
difference between the present value of an
investments future cash flows and its initial
cost is the payback period. internal rate of
return. profitability index. discounted payback
period. net present value. 2.Which statement
concerning the net present value (NPV) of an
investment or a financing project is correct? An
investment project that has positive cash flows
for every time period after the initial
investment should be accepted. Any type of
project should be accepted if the NPV is positive
and rejected if it is negative. A financing
project should be accepted if, and only if, the
NPV is exactly equal to zero. Any type of project
with greater total cash inflows than total cash
outflows, should always be accepted. An
investment project should be accepted only if the
NPV is equal to the initial cash flow.
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FIN 571 Week 5 DQ 1 FOR MORE CLASSES
VISIT www.fin571genius.com Because the weighted
average is always a correct measure of a required
return, why do firms not create securities to
finance each project and offer them in the
capital market in order to accurately determine
the required return for the project?
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FIN 571 Week 5 DQ 2 FOR MORE CLASSES
VISIT www.fin571genius.com The development of the
new issue junk bond market had important
implications for capital structure choice. The
existence of a viable junk bond market means that
firms can comfortably maintain higher degrees of
leverage than they could prior to the development
of this market. Do you agree or disagree? Justify
your answer.  
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FIN 571 Week 5 Individual Assignment DCF and
WACC Problems FOR MORE CLASSES VISIT www.fin571gen
ius.com Discounted Cash Flows and WACC Homework
Problems   Please post the answers (and show your
work) in the assignments section by midnight the
last day of the week assigned.     Calculate the
future value of 1,535 invested today for 8 years
at 6 percent. (5 points)   What is the total
present value of the following cash stream,
discounted at 8 percent? (5 points)             
Year                 Amount 1                     
                         400 2                    
                          750 3                   
                           945
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FIN 571 Week 5 Learning Team Reflection FOR
MORE CLASSES VISIT www.fin571genius.com 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.
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FIN 571 Week 5 Team Assignment Capital
Budgeting Assignment, Part 1 (New Heritage
Doll) FOR MORE CLASSES VISIT www.fin571genius.com
Acting as the executive team for a small company,
your team will apply the principles of capital
budgeting to invest in growth and cash flow
improvement opportunities in three phases over 10
simulated years. Each opportunity has a unique
financial profile and you must analyze the
effects on working capital. Examples of
opportunities include taking on new customers,
capitalizing on supplier discounts, and reducing
inventory. The team must understand how the
income statement, balance sheet, and statement of
cash flows are interconnected and be able to
analyze forecasted financial information to
consider possible effects of each opportunity on
the firm's financial position. The company
operates on thin margins with a constrained cash
position and limited available credit. You must
optimize use of internal and external credit as
you balance the desire for growth with the need
for maintaining liquidity. Create a 1,050-word
analysis of the team members' decisions during
each phase (1-3) and how they influenced each
member's final results. Analyze the influence
of member's decisions on sales outcomes or
metrics of SNC.
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FIN 571 Week 5 Working Capital Simulation
Managing Growth, Part 1 (New Heritage Doll) FOR
MORE CLASSES VISIT www.fin571genius.com Acting as
the executive team for a small company, your team
will apply the principles of capital budgeting to
invest in growth and cash flow improvement
opportunities in three phases over 10 simulated
years. Each opportunity has a unique financial
profile and you must analyze the effects on
working capital. Examples of opportunities
include taking on new customers, capitalizing on
supplier discounts, and reducing inventory. The
team must understand how the income statement,
balance sheet, and statement of cash flows are
interconnected and be able to analyze forecasted
financial information to consider possible
effects of each opportunity on the firm's
financial position. The company operates on thin
margins with a constrained cash position and
limited available credit
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FIN 571 Week 6 Individual Assignment Working
Capital Simulation Managing Growth Assignment FOR
MORE CLASSES VISIT www.fin571genius.com Resources
Harvard Business Publishing Working Capital
Simulation Managing Growth Assignment Ch. 1 - 21
ofFundamentals of Corporate Finance WileyPLUS
Assignments All additional resources from each
week   
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FIN 571 Week 6 Learning Team Reflection FOR
MORE CLASSES VISIT www.fin571genius.com Watch the
"Corporate Finance Video Stable Money Makers"
located in the WileyPLUS Assignment Week 6
Videos Activity. Identify a capital improvement
that could help Betty with her Alpaca
business. Write a summary of no more than 700
words explaining how the capital improvement you
identified could help the business.Click the
Assignment Files tab to submit your assignment.
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FIN 571 Week 6 Team Assignment Capital
Budgeting Assignment, Part 2 (New Heritage Doll)
FOR MORE CLASSES VISIT www.fin571genius.com The
executive team of New Heritage Doll has completed
the decision making for capital budgeting for the
firm. Now the team must decide which decisions
and approach were the best for the company. The
executive team must create a presentation to be
given to the board members of New Heritage Doll
Compare the decisions and results of all members
of the team. Create a 20-slide Microsoft
PowerPoint presentation that includes detailed
speaker notes that act as the script of the
presentation in which you include the following
Summarize the decisions made by each member.
Explain why those decisions were made. Analyze
the effects the team's decisions had on New
Heritage Doll working capital.
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FIN 571 Week 6 Working Capital Simulation
Managing Growth, Part 2 (New Heritage Doll) FOR
MORE CLASSES VISIT www.fin571genius.com The
executive team of New Heritage Doll has completed
the decision making for capital budgeting for the
firm. Now the team must decide which decisions
and approach were the best for the company. The
executive team must create a presentation to be
given to the board members of SNC. Compare the
decisions and results of all members of the team.
Create a 20-slide Microsoft PowerPoint
presentation that includes detailed speaker notes
that act as the script of the presentation in
which you include the following Summarize the
decisions made by each member. Explain why
those decisions were made.
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FIN 571 GENIUS Making Decisions/fin571genius.com

• FOR MORE CLASSES VISIT
• www.fin571genius.com