Title: FIN 571 NERD Real Success /fin571nerd.com
1FIN 571 NERD Real Success / fin571nerd.com
2FIN 571 NERD Real Success
FIN 571 Final Exam Guide (New) FOR MORE CLASSES
VISIT www.fin571nerd.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
3FIN 571 NERD Real Success
FIN 571 Week 1 Connect Problems (Math and
Accounting Review) FOR MORE CLASSES
VISIT www.fin571nerd.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.
4FIN 571 NERD Real Success
FIN 571 Week 1 Connect Problems (Week 1 Problem
Set) FOR MORE CLASSES VISIT www.fin571nerd.com FI
N 571 Week 1 Connect Problems (Week 1 Problem
Set) 1.If a firm is currently profitable, then
2.Short-term finance deals with 3.A stakeholder
is any person or entity 4.Which one of these
best fits the description of an agency cost?
5.The primary goal of financial management is to
6.Which one of the following business types is
best suited to raising large amounts of capital?
7.Accounting profits and cash flows are generally
5FIN 571 NERD Real Success
FIN 571 Week 1 DQ 1 FOR MORE CLASSES
VISIT www.fin571nerd.com What is ethics? If you
follow all applicable rules and regulations, are
you an ethical person?
6FIN 571 NERD Real Success
FIN 571 Week 1 DQ 2 FOR MORE CLASSES
VISIT www.fin571nerd.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)? This question is referring to a
firm's liability such as a bond or debenture that
has been issued in the markets.
7FIN 571 NERD Real Success
FIN 571 Week 1 Individual Assignment Business
Structures FOR MORE CLASSES VISIT www.fin571nerd
.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.
8FIN 571 NERD Real Success
FIN 571 Week 2 Connect Problems FOR MORE CLASSES
VISIT www.fin571nerd.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?
9FIN 571 NERD Real Success
FIN 571 Week 2 DQ 1 FOR MORE CLASSES
VISIT www.fin571nerd.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?
10FIN 571 NERD Real Success
FIN 571 Week 2 DQ 2 FOR MORE CLASSES
VISIT www.fin571nerd.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
11FIN 571 NERD Real Success
FIN 571 Week 2 Individual Assignment Business
Structure Advice FOR MORE CLASSES
VISIT www.fin571nerd.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.
12FIN 571 NERD Real Success
FIN 571 Week 2 Individual Assignment Ethics and
Finance FOR MORE CLASSES VISIT www.fin571nerd.com
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.
13FIN 571 NERD Real Success
FIN 571 Week 2 Individual Assignment Ratio
Analysis Problems FOR MORE CLASSES
VISIT www.fin571nerd.com Ratio Analysis
Problems 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.
14FIN 571 NERD Real Success
FIN 571 Week 2 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571nerd.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.
15FIN 571 NERD Real Success
FIN 571 Week 3 Connect Problems FOR MORE CLASSES
VISIT www.fin571nerd.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
16FIN 571 NERD Real Success
FIN 571 Week 3 DQ 1 FOR MORE CLASSES
VISIT www.fin571nerd.com Why are interest rates
on short-term loans not necessarily comparable to
each other? Give three possible reasons.
17FIN 571 NERD Real Success
FIN 571 Week 3 DQ 2 FOR MORE CLASSES
VISIT www.fin571nerd.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
18FIN 571 NERD Real Success
FIN 571 Week 3 Individual Assignment Interpreting
Financial Results FOR MORE CLASSES
VISIT www.fin571nerd.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
19FIN 571 NERD Real Success
FIN 571 Week 3 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571nerd.com Watch the
"Concept Review Video Working Capital
Management" video located in theWileyPLUS
Assignment Week 3 Videos Activity. Discuss
strategies these business owners used to manage
their working capital. Write a 350-700 word
summary of your discussion.
20FIN 571 NERD Real Success
FIN 571 Week 3 Team Assignment Financial
Statement Interpretation FOR MORE CLASSES
VISIT www.fin571nerd.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
21FIN 571 NERD Real Success
FIN 571 Week 4 Connect Problems FOR MORE CLASSES
VISIT www.fin571nerd.com FIN 571 Week 4 Connect
Problems 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?
2.Microhard has issued a bond with the
22FIN 571 NERD Real Success
FIN 571 Week 4 DQ 1 FOR MORE CLASSES
VISIT www.fin571nerd.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.
23FIN 571 NERD Real Success
FIN 571 Week 4 DQ 2 FOR MORE CLASSES
VISIT www.fin571nerd.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?
24FIN 571 NERD Real Success
FIN 571 Week 4 Individual Assignment Analyzing
Pro Forma Statements FOR MORE CLASSES
VISIT www.fin571nerd.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 statements of five
year projections that are clear, concise, and
easy to read. Be sure to double check the
calculations in your pro forma statements. Make
assumptions that support each line item increase
or decrease for your forecasted statements.
25FIN 571 NERD Real Success
FIN 571 Week 4 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571nerd.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.
26FIN 571 NERD Real Success
FIN 571 Week 4 Team Assignment Operating Leverage
and Forecasting FOR MORE CLASSES
VISIT www.fin571nerd.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.
27FIN 571 NERD Real Success
FIN 571 Week 5 Connect Problems FOR MORE CLASSES
VISIT www.fin571nerd.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.
28FIN 571 NERD Real Success
FIN 571 Week 5 DQ 1 FOR MORE CLASSES
VISIT www.fin571nerd.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?
29FIN 571 NERD Real Success
FIN 571 Week 5 DQ 2 FOR MORE CLASSES
VISIT www.fin571nerd.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.
30FIN 571 NERD Real Success
FIN 571 Week 5 Individual Assignment DCF and WACC
Problems FOR MORE CLASSES VISIT www.fin571nerd.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)
31FIN 571 NERD Real Success
FIN 571 Week 5 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571nerd.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.
32FIN 571 NERD Real Success
FIN 571 Week 5 Team Assignment Capital Budgeting
Assignment, Part 1 (New Heritage Doll) FOR MORE
CLASSES VISIT www.fin571nerd.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
33FIN 571 NERD Real Success
FIN 571 Week 6 Individual Assignment Working
Capital Simulation Managing Growth Assignment FOR
MORE CLASSES VISIT www.fin571nerd.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 Review the following scenario
34FIN 571 NERD Real Success
FIN 571 Week 6 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571nerd.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.
35FIN 571 NERD Real Success
FIN 571 Week 6 Team Assignment Capital Budgeting
Assignment, Part 2 (New Heritage Doll) FOR MORE
CLASSES VISIT www.fin571nerd.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 detaile
36FIN 571 NERD Real Success