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FIN 571 Final Exam Guide (New) FOR MORE CLASSES
VISIT www.fin571tutor.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.
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FIN 571 Week 1 Connect Problems (Math and
Accounting Review) FOR MORE CLASSES VISIT
www.fin571tutor.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?
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FIN 571 Week 1 Connect Problems (Week 1 Problem
Set) FOR MORE CLASSES VISIT www.fin571tutor.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
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FIN 571 Week 1 DQ 1 FOR MORE CLASSES VISIT
www.fin571tutor.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.fin571tutor.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. What happens to the price an
investor who is looking to purchase that bond or
debenture is willing to pay if the market
interest rate increases above the rate that the
bond or debenture pays.
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FIN 571 Week 1 Individual Assignment Business
Structures FOR MORE CLASSES VISIT
www.fin571tutor.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.fin571tutor.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. (Do not round
intermediate calculations.) What is the value of
the shareholders' equity account for this firm?
How much is net working capital? 2.
Which one of the following assets is generally
the most liquid? 3. Which one of the
following accounts is included in stockholders'
equity? Operating cash flow is defined as 4It i
easier to evaluate a firm using its financial
statements when the firm If a firm is currently
profitable, then
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FIN 571 Week 2 DQ 1 FOR MORE CLASSES VISIT
www.fin571tutor.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?
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FIN 571 Week 2 DQ 2 FOR MORE CLASSES VISIT
www.fin571tutor.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 andrequired return
that is negative? Explain
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FIN 571 Week 2 Individual Assignment Business
Structure Advice FOR MORE CLASSES VISIT
www.fin571tutor.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? Respectfully, John Owner Click the
Assignment Files tab to submit your assignment.
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FIN 571 Week 2 Individual Assignment Ethics and
Finance FOR MORE CLASSES VISIT www.fin571tutor.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.fin571tutor.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.
• 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.fin571tutor.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.fin571tutor.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
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FIN 571 Week 3 DQ 1 FOR MORE CLASSES VISIT
www.fin571tutor.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.fin571tutor.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 TUTOR Career Path Begins/fin571tutor.com
FIN 571 Week 3 Individual Assignment Interpreting
Financial Results FOR MORE CLASSES VISIT
www.fin571tutor.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.fin571tutor.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. 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.fin571tutor.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.
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FIN 571 Week 4 Connect Problems FOR MORE CLASSES
VISIT www.fin571tutor.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)
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FIN 571 Week 4 DQ 1 FOR MORE CLASSES VISIT
www.fin571tutor.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.fin571tutor.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.fin571tutor.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.
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FIN 571 Week 4 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571tutor.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.fin571tutor.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,
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FIN 571 Week 5 Connect Problems FOR MORE CLASSES
VISIT www.fin571tutor.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.
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FIN 571 Week 5 DQ 1 FOR MORE CLASSES VISIT
www.fin571tutor.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.fin571tutor.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.fin571tutor.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 4
145 5
78
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FIN 571 Week 5 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571tutor.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.fin571tutor.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.
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FIN 571 Week 6 Individual Assignment Working
Capital Simulation Managing Growth Assignment FOR
MORE CLASSES VISIT www.fin571tutor.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
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FIN 571 Week 6 Learning Team Reflection FOR MORE
CLASSES VISIT www.fin571tutor.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.fin571tutor.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
DollCmpare 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
followingSummarize 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.Select one
plan from the team's results to propose as the
best option for SNCDefend this option to the
board including all supporting
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