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• STRAYER FIN 534 Entire Course (UOP Course)

• STRAYER FIN 534 Week 1 Chapter 1 Solution

• STRAYER FIN 534 Week 1 Chapter 1 Solution
• STRAYER FIN 534 Week 1 Chapter 2 Solution
• STRAYER FIN 534 Week 2 Chapter 3 Solution
• STRAYER FIN 534 Week 3 Chapter 4 Solution
• STRAYER FIN 534 Week 3 Chapter 5 Solution
• STRAYER FIN 534 Week 4 Chapter 6 Solution

• 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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• STRAYER FIN 534 Week 1 Chapter 2 Solution

• STRAYER FIN 534 Week 1 DQ 1

• 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.

• 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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• STRAYER FIN 534 Week 1 DQ 2

• STRAYER FIN 534 Week 1 Quiz 1

• 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?
•  

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• STRAYER FIN 534 Week 2 Chapter 3 Solution

• STRAYER FIN 534 Week 2 DQ 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.

• . 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.

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• STRAYER FIN 534 Week 2 DQ 2

• STRAYER FIN 534 Week 3 Chapter 4 Solution

• 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.

• 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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• STRAYER FIN 534 Week 3 Chapter 5 Solution

• STRAYER FIN 534 Week 3 DQ 1

• Starting with your current situation, describe
  what you must do to ensure an annual retirement
  income of 60,000 starting at age 65.

• 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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• STRAYER FIN 534 Week 3 DQ 2

• STRAYER FIN 534 Week 3 Quiz 2

• 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.

• 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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• STRAYER FIN 534 Week 4 Chapter 6 Solution

• STRAYER FIN 534 Week 4 Chapter 7 Solution

• 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.

• . 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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• STRAYER FIN 534 Week 4 DQ 1

• STRAYER FIN 534 Week 4 DQ 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.

• 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.

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• STRAYER FIN 534 Week 4 Quiz 3

• STRAYER FIN 534 Week 5 Chapter 8 Solution

• 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.

• )      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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• STRAYER FIN 534 Week 5 Chapter 9 Solution

• STRAYER FIN 534 Week 5 DQ 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.

• 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?

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• STRAYER FIN 534 Week 5 Quiz 4

• STRAYER FIN 534 Week 6 Chapter 10 Solution

• 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.

• 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?

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• STRAYER FIN 534 Week 6 Chapter 11 Solution

• STRAYER FIN 534 Week 6 DQ 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.

• 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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• STRAYER FIN 534 Week 6 Quiz 5

• STRAYER FIN 534 Week 7 Chapter 12 Solution

• 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.

• 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

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• STRAYER FIN 534 Week 7 Chapter 13 Solution

• STRAYER FIN 534 Week 7 DQ 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.

• 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

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• STRAYER FIN 534 Week 7 DQ 2

• STRAYER FIN 534 Week 7 Quiz 6

• 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.  You also think that the projects will
  not be funded until the WACC

• 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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• STRAYER FIN 534 Week 8 Chapter 14 Solution

• STRAYER FIN 534 Week 8 Chapter 15 Solution

• 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).

• 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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• STRAYER FIN 534 Week 8 DQ 1

• STRAYER FIN 534 Week 8 DQ 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.

• 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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• STRAYER FIN 534 Week 8 Quiz 7

• STRAYER FIN 534 Week 9 Chapter 16 Solution

• 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.

• 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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• STRAYER FIN 534 Week 9 DQ 1

• STRAYER FIN 534 Week 9 DQ 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.

• 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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• STRAYER FIN 534 Week 9 Quiz 8

• STRAYER FIN 534 Week 10 Chapter 17 Solution

• 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?

• 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

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• STRAYER FIN 534 Week 10 DQ 1

• STRAYER FIN 534 Week 10 DQ 2

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

• 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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• STRAYER FIN 534 Week 10 Quiz 9

• STRAYER FIN 534 Week 11 DQ 1

• Reflect on the lessons learned during this class
  and discuss the most interesting or surprising
  thing you learned. Explain what made it so

• 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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• STRAYER FIN 534 Week 11 DQ 2

• STRAYER FIN 534 Week 11 Quiz 10

•              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. 

• 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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