FIN 515 MART Expect Success fin515martdotcom

1
FIN 515 MART Expect Success /fin515martdotcom

• FOR MORE CLASSES VISIT
• www.fin515mart.com

2
FIN 515 Entire Course

• This tutorial does not contain Final Exam Guide
• FIN 515 Week 1 DQ 1 Accounting Versus Finance
• FIN 515 Week 1 DQ 2 Financial Analysis
• FIN 515 Week 1 Quiz
• FIN 515 Week 1 Quiz (New)
• FIN 515 Week 1 Problem Set
• FIN 515 Week 2 DQ 1 TVM Pass-a-Problem
• FIN 515 Week 2 DQ 2 Assumptions of the TVM Model
• FIN 515 Week 2 Quiz
• FIN 515 Week 2 Problem Set

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FIN 515 Course Project 1 and 2

• This Tutorial contains Week 3 Course Project (3
  Sets) Week 6 Course Project (2 Sets)

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FIN 515 Final Exam (all 3 Sets)

• FIN 515 Final Exam Set 1 FIN 515 Final Exam Set 2
  FIN 515 Final Exam Set 3

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FIN 515 Final Exam Set 1

• 1. (TCO A) In the United States, which of the
  following types of organization has the greatest
  revenue in total? (Points 5)a. Sole
  proprietorshipb. C corporationc. S corporationd.
  Limited partnership 1.1) Which of the following
  is not a step in the WACC valuation method?A)
  Compute the value of the investment, including
  the tax benefit of leverage, by discounting the
  free cash flow of the investment using the
  WACC.B) Compute the weighted average cost of
  capital.C) Determine the free cash flow of the
  investment.D) Adjust the WACC for the firm's
  current debt/equity ratio. 1. (TCO H) Zervos Inc.
  had the following data for 2008 (in millions).

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FIN 515 Final Exam Set 2

• Question 1.1. (TCO A) Double taxation is a
  drawback for which of the following types of
  business organization except? Question 2.2. (TCO
  A) Sole proprietorships have all of the following
  advantages except Question 3.3. (TCO B) Which of
  the following would cause the present value of an
  annuity to decrease? Question 4.4. (TCO B) In a
  TVM calculation, if incoming cash flows are
  positive, outgoing cash flows must be Question
  5.5. (TCO G) If net income, total assets, and
  book value of equity stayed the same, what would
  be the effect on the DuPont Identity of an
  increase in sales? Question 6.6. (TCO D) A stock
  has just paid a dividend and will pay a dividend
  of 3.00 in a year. The dividend will stay
  constant for the rest of time. The return on
  equity for similar stocks is 14. What is P0?
  Question 7.7.

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FIN 515 Final Exam Set 3

• 1. (TCO A) In the United States, which of the
  following types of organization has the greatest
  revenue in total? (Points 5) Sole
  proprietorship C corporation S corporation
  Limited partnership Question 2.2. (TCO A) A sole
  proprietorship is owned by (Points 5) one
  person. one or two people, but if there are two
  owners, they must be married to each other. up to
  100 owners. up to 64 owners. Question 3.3. (TCO
  B) Which of the following would cause the present
  value of an annuity to decrease? (Points 5)
  Reducing the number of payments. Increasing the
  number of payments. Decreasing the interest rate.
  Decreasing the liquidity of the payments.
  Question 4.4.

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FIN 515 Week 1 DQ 1 Accounting Versus Finance

• Accounting Versus Finance (graded) Much of the
  analysis done by financial managers is based on
  numbers that are different from what would seem
  to the corresponding numbers presented in the
  financial statements. This difference is not due
  to any kind of cooking the books or other
  attempts to mislead anyone. One example is the
  use of market value rather than historical cost
  in the valuation of assets. What are some other
  examples of the differences between financial
  management and financial accounting?

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FIN 515 Week 1 DQ 2 Financial Analysis

• Financial Analysis (graded) In this discussion,
  we will be working with the variety of financial
  analysis tools available to us. Let's start with
  the DuPont Identity introduced in Chapter 2 of
  the text. For your initial post, locate the
  financial statements for two firms in one
  industry. Calculate all four terms of the DuPont
  Identity and present the results but do not
  analyze the results. For an additional post,
  analyze the results that another student has
  posted. If you were the appropriate financial
  manager of one of the firms that you analyzed,
  what would be your observations and
  recommendations?

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FIN 515 Week 1 Problem Set

• Chapter 1 The Corporation 1-1. What is the most
  important difference between a corporation and
  all other organizational forms? 1-2. What does
  the phrase limited liability mean in a corporate
  context? 1-3. Which organizational forms give
  their owners limited liability? 1-4. What are the
  main advantages and disadvantages of organizing a
  firm as a corporation? 1-5. Explain the
  difference between an S corporation and a C
  corporation. 1-6. You are a shareholder in a C
  corporation. The corporation earns 2 per share
  before taxes. Once it has paid taxes it will
  distribute the rest of its earnings to you as a
  dividend. The corporate tax rate is 40 and the
  personal tax rate on (both dividend and
  non-dividend) income is 30. How much is left for
  you after all taxes are paid? 1-7. Repeat Problem
  6 assuming the corporation is an S corporation.
  Chapter 2 Introduction to Financial Statement
  Analysis 2-8. In early 2009, General Electric
  (GE) had a book value of equity of 105 billion.

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FIN 515 Week 1 Quiz(New)

• Question 1. (TCO G) The lecture says that some
  ratios typically are better when they are higher
  and some of the ratios are better when they are
  lower. Pick a ratio for which a lower number
  typically would be preferred and describe a
  situation, in which a higher number for that
  ratio would be preferred, OR pick a ratio for
  which a higher number typically would be
  preferred and describe a situation in which a
  lower number for that ratio would be preferred.
  Question 2. (TCO G) As of December 31, 20XX,
  David Corp's accounts payable were 4,000,000.
  Its accounts receivable were 2,200,000, and its
  sales for 20XX were 32,000,000. What was its
  days sales outstanding? Question 3. (TCO G) As of
  December 31, 2015, Michael Corp's current assets
  were 2,000,000. Its current liabilities were
  2,000,000. Its sales for 2015 were 50,000,000.
  As of December 31, 2016, Michael Corp's current
  assets were 3,000,000. Its current liabilities
  were 3,000,000. Its sales for 2016 were
  65,000,000. Management has asked you to comment
  on these numbers.

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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 Corps 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.

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FIN 515 Week 1-7 DQs

• FIN 515 Week 1 DQ 1 Accounting Versus Finance FIN
  515 Week 1 DQ 2 Financial Analysis FIN 515 Week 2
  DQ 1 TVM Pass-a-Problem FIN 515 Week 2 DQ 2
  Assumptions of the TVM Model FIN 515 Week 3 DQ 1
  Examples of Capital Expenditure From Your
  Industry FIN 515 Week 3 DQ 2 Capital Budgeting
  Terms and Considerations FIN 515 Week 4 DQ 1
  Market Value of a Stock Versus DDM Value FIN 515
  Week 4 DQ 2 Differences in YTM of Real Life Bonds
  FIN 515 Week 5 DQ 1 Calculating WACC for a Real
  Firm FIN 515 Week 5 DQ 2 Finding Stock Values for
  Real Stocks Using Beta and the SML FIN 515 Week 6
  DQ 1 Examples of Real Agency Problems and How
  They Could Have Been Prevented FIN 515 Week 6 DQ
  2 The Role of Financial Managers in Ethical
  Corporate Governance FIN 515 Week 7 DQ 1 Industry
  Approaches to Working Capital Financing FIN 515
  Week 7 DQ 2 Your Preference for Working Capital
  Management Policy

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FIN 515 Week 2 DQ 1 TVM Pass-a-Problem

• TVM Pass-a-Problem (graded) This week, the
  lecture provided some examples of TVM problem
  scenarios. For your first post, provide a story
  problem that can be solved using one or more of
  the TVM calculations. Your second post can be a
  description of how the problem posed by another
  student can be solved. Your professor may provide
  an example.

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FIN 515 Week 2 DQ 2 Assumptions of the TVM Model

• Assumptions of the TVM Model (graded) What are
  some of the assumptions behind the TVM
  calculations? How do these assumptions limit our
  application of these calculations?

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FIN 515 Week 2 Problem Set

• 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.

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FIN 515 Week 2 Quiz

• 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 dont 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.

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FIN 515 Week 3 Course Project 1 (3 Papers)

• This Tutorial contains 3 Different Course
  Projects First Course ProjectThe purpose of this
  project is to help you develop skills not only in
  performing the calculations behind financial
  analysis but interpreting the numbers as well.You
  are to pick a company. You should pick one either
  from the industry in which you are currently
  working or an industry in which you are
  interested. You could also pick a division of a
  company. It is imperative to use that sufficient
  data about your company and that it is available.
  One way to do this is to pick a publicly held
  company. If you pick a privately held company or
  a division of a company, make sure that the data
  necessary to do a significant financial analysis
  is available.If you use data that is not publicly
  available, be sure to talk to your manager and to
  make absolutely sure that revealing that data is
  not a problem.You will also need to find a
  standard against which to compare your findings.
  This could be a different company in the same
  industry. This could also be the same company at
  a different time.

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FIN 515 Week 3 DQ 1 Examples of Capital
Expenditure From Your Industry

• FIN 515 Week 3 DQ 1 Examples of Capital
  Expenditure From Your Industry (graded) Describe
  a potential capital expenditure project from the
  industry in which you now work or an industry in
  which you are interested. What is the project?
  Describe and provide an approximate value of the
  initial cash flow. Describe and provide an
  approximate value of the annual cash flows.
  Provide an estimation of the life of the project,
  as well as the exit costs.

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FIN 515 Week 3 DQ 2 Capital Budgeting Terms and
Considerations

• Capital Budgeting Terms and Considerations Our
  textbook and lecture discuss some considerations
  that should be taken into account when doing
  capital budgeting. How will these considerations
  affect the project you described in the other
  topic? Incremental earnings, interest expenses,
  taxes, opportunity costs, externalities, sunk
  costs, cannibalization or erosion, depreciation,
  and salvage value as well as others.

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FIN 515 Week 3 Problem Set

• Week 3 Problem Set 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.

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FIN 515 Week 3 Quiz

• Company A has a beta of 2.77. Company B has a
  beta of .73. Company C has a beta of .90. The
  risk free rate is 6 and the market risk premium
  is 4. What is the expected return of investing
  in Company B? stock portfolio consists of only
  two stocks. You have 15,000 in Company A and
  25,000 in Company B. Company A has an actual
  return of -8 and Company B has a return of 12.
  What is the return on your portfolio? A company
  has a capital structure of 40 debt and 60
  equity. The YTM on the companys bonds is 9, and
  the companys effective tax rate is 40. The CFO
  has estimated the companys WACC to be 9.96.
  What is the companys cost of equity?

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FIN 515 Week 4 DQ 1 Market Value of a Stock
Versus DDM Value

• Market Value of a Stock Versus DDM Value (graded)
  Select a stock in which you are interested.
  Calculate its per share value using the DDM or
  another method discussed in Chapter 9. Then find
  the current market value of a share of the stock.
  Compare that two. Can you explain the similarity
  or difference?

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FIN 515 Week 4 DQ 2 Differences in YTM of Real
Life Bonds

• Differences in YTM of Real Life Bonds (graded) Do
  some research, probably on the Web, and find some
  bonds with differing yields to maturity (YTM).
  How do you explain the difference? Both the
  lecture and the textbook discuss some factors
  that may lead to this difference.

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FIN 515 Week 4 Midterm

• Question 1. Question (TCO G) The firm's asset
  turnover measures Question 2. Question (TCO G)
  If Moon Corporation has an increase in sales,
  which of the following would result in no change
  in its EBIT margin? Question 3. Question (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 dont deposit
  any additional money into the account, what
  annual return will you need to earn to meet this
  goal? Question 4. Question (TCO B) You take out
  a 4 year car loan for 18,000. 

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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.

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FIN 515 Week 5 DQ 1 Calculating WACC for a Real
Firm

• Calculating WACC for a Real Firm (graded) The
  Weighted Average Cost of Capital (WACC) for a
  firm can be calculated or found through research.
  Select two firms in the same industry. The
  industry may be that in which you currently work
  or it may be an industry in which you are
  interested. Calculate or find the WACC for the
  two firms. How do the WACCs compare? Are the
  WACCs what you would expect? What causes the
  differences between the two firms' WACCs?

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FIN 515 Week 5 DQ 2 Finding Stock Values for Real
Stocks Using Beta and the SML

• Finding Stock Values for Real Stocks Using Beta
  and the SML (graded) Our second discussion topic
  concerns the calculation of stock values using
  the Capital Asset Pricing Model (CAPM). We will
  start with a discussion of risk and work towards
  practical application of the model. The textbook
  provides a list of betas for a selection of
  stocks. Choose a few firms from that list and
  discuss whether the betas are what you would
  expect. Be sure to explain why or why not.

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FIN 515 Week 5 problem Set

• Chapter 10 (pages 345348) 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. What was your realized return?
  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?

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FIN 515 Week 5 Quiz

• Question 1 (TCO C) Company A has a beta of 2.77.
  Company B has a beta of .73. Company C has a beta
  of .90. The risk free rate is 6 and the market
  risk premium is 4. What is the expected return
  of investing in Company B? Show your work.
  Question 2. (TCO C) Your stock portfolio consists
  of only two stocks. You have 30,000 in Company A
  and 35,000 in Company B. Company A has an actual
  return of -8 and Company B has a return of 12.
  What is the return on your portfolio? Show your
  work. Question 3. (TCO E) A company has a capital
  structure of 40 debt and 60 equity. The YTM on
  the companys bonds is 9, and the companys
  effective tax rate is 40. The CFO has estimated
  the companys WACC to be 9.96. What is the
  companys cost of equity? Show your work.

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FIN 515 Week 6 Course Project 2 (2 Different
Projects)

• This Tutorial contains 2 Different Course
  Projects Second Project The purpose of this
  project is for you to have some practice working
  with financial concepts in the real world. This
  will involve integrating some material from
  throughout the course. The project will also
  involve the development of your own approach to
  doing the work. The project does not provide a
  step-by-step procedure for you to follow. Your
  task is to determine the WACC for a given firm
  using what you know about WACC as well as data
  you can find through research. Your deliverable
  is to be a brief report in which you state your
  determination of WACC, describe and justify how
  you determined the number, and provide relevant
  information as to the sources of your data.
  Assumptions As you recall, the formula for WACC
  is rWACC (E/ED) rE D/(ED) rD (1-TC) The
  formula for the required return on a given equity
  investment is ri rf ßi (RMkt-rf) RMkt-rf is
  the Market Risk Premium. For this project, you
  may assume the Market Risk Premium is 4 unless
  you can develop a better number. rf is the risk
  free rate. The YTM on 10 year US Treasury
  securities is a good approximation.

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FIN 515 Week 6 Problem Set

• Chapter 29 (pages 983-984) 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? 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? Managing Agency
  Conflict 4.Suppose Goodyear Tire and Rubber
  Company is considering divesting one of its
  manufacturing plants. The plant is expected to
  generate free cash flows of 1.5 million per
  year, growing at a rate of 2.5 per year.

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FIN 515 Week 7 DQ 1 Industry Approaches to
Working Capital Financing

• Industry Approaches to Working Capital Financing
  (graded) Do some research on two firms in your
  industry or an industry in which you are
  interested. Can you get an idea of their working
  capital management policies from publicly
  available information? How do the two companies
  differ in their apparent working capital
  management policies? Which policy do you think is
  better and why?

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FIN 515 Week 7 DQ 2 Your Preference for Working
Capital Management Policy

• Your Preference for Working Capital Management
  Policy (graded) Consider the company you work for
  or a company in which you are interested. Also,
  do some research to find some current cost
  estimates for various means of financing working
  capital. What would be your recommendation to the
  company for financing its working capital needs?
  If the information is publicly available, or if
  you have access to it AND have permission to
  discuss it, how does your recommendation compare
  what the firm is actually doing?

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FIN 515 Week 7 Problem Set

• 1. Answer the following questions a. What is the
  difference between a firms cash cycle and its
  operating cycle? 2. How will a firms cash cycle
  be affected if a firm increases its inventory,
  all else being equal? 2. How will a firms cash
  cycle be affected if a firm begins to take the
  discounts offered by its suppliers, all else
  being equal? 4.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 a- Calculate The Greek
  Connections net working capital in 2012. 2.
  greatest? When does it have surplus cash?
•  

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FIN 515 MART Expect Success /fin515martdotcom

• FOR MORE CLASSES VISIT
• www.fin515mart.com