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1
FIN 534 Course Tutorial

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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

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FIN 534 Week 1 Chapter 1 Solution

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• . 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 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.

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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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• 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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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.

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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.

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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?

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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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• 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.

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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.

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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.

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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.

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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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• ) 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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• . 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 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?

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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.

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FIN 534 Week 5 Quiz 4

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• 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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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.

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FIN 534 Week 6 Chapter 11 Solution

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•  
• 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.

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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?

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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

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FIN 534 Week 8 Chapter 14 Solution

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• 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 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.

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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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• 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 Week 9 Chapter 16 Solution

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• . 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

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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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• 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

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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?

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FIN 534 Week 10 DQ 1

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• 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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• 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?

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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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• 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?

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FIN 536 Week 6 Quiz 5

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• Call options on XYZ Corporations common stock
  trade in the market. Which of the following
  statements is most correct, holding other things
  constant?

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FIN 534 Course Tutorial

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