FIN 571 TUTOR Teaching Effectively /fin571tutor.com

1
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
2
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Final Exam Guide (3 Set with Excel File)
FOR MORE CLASSES VISIT www.fin571tutor.com This
Tutorial also contains 2 other sets This
tutorial contains 3 set of final along with excel
file which can be used to solve question in case
value changes 1.Which one of the following
parties is considered a stakeholder of a firm?
2.The process of planning and managing a firm's
long-term assets is called 3. Which one of the
following actions by a financial manager creates
an agency problem? 4. Which one of these is a
cash outflow from a corporation?
3
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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. 5.First City Bank
pays 7 percent simple interest on its savings
account balances, whereas Second City Bank pays 7
percent interest compounded annually.
4
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Final Exam Guide (New, 2017) FOR MORE
CLASSES VISIT www.fin571tutor.com Question 1
The underlying assumption of the dividend growth
model is that a stock is worth A. An amount
computed as the next annual dividend divided by
the required rate of return. B. An amount
computed as the next annual dividend divided by
the market rate of return. C. The same amount
computed as any other stock that pays the same
current dividend and has the same required rate
of return. D. The present value of the future
income that the stock is expected to generate. E.
The same amount to every investor regardless of
their desired rate of return. Question 2
You plan to invest 6,500 for three years at 4
percent simple interest. What will your
investment be worth at the end of the three
years? A. 6,941.11 B. 7,280.00 C. 7,311.62 D.
6,760.00
5
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Final Exam Guide Set 2 (NEW) FOR MORE
CLASSES VISIT www.fin571tutor.com 1. Financial
managers should primarily strive to 2. The
process of planning and managing a firm's
long-term assets is called 3. Which one of the
following actions by a financial manager creates
an agency problem? 4. Which one of these is a
cash outflow from a corporation? 5. For each of
the following, compute the present value 6.
Gerold invested 115 in an account that pays 5
percent simple interest. How much money will he
have at the end of 5 years? 7. What is the future
value of 920 a year for 5 years at a 6 percent
interest? 8. You bought 360 shares of stock at a
total cost of 7,754.40. You received a total of
403.20 in dividends and sold your shares for
19.98 a share. What was your total rate of
return?
6
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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? 5. Which fields
are required to calculate the rate of return
(RATE) for a present value calculation in
Excel? 2. The Balance Sheet This lesson will help
you refresh your knowledge on the basics of the
balance sheet. Brushing up on these concepts now
will help you tackle your finance coursework
later.
7
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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
8
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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?
9
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
10
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 1 Financial Ratio Analysis FOR MORE
CLASSES VISIT www.fin571tutor.com Purpose of
Assignment The purpose of this assignment is to
help students gain a better understanding of the
financial statements used for corporate financial
reporting and the key ratios used to make
business decisions. Assignment Steps Select a
Fortune 500 Company from one of the following
industries Pharmaceutical Energy Retail Automotiv
e
11
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
12
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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
4. It is easier to evaluate a firm using
its financial statements when the firm If
a firm is currently profitable, then
13
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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? Can you think of an asset that is truly
riskless?
14
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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 and required return
that is negative? Explain
15
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
16
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
17
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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. 1. 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" (5
points)
18
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
19
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 2 Stock Valuation and Analysis FOR
MORE CLASSES VISIT www.fin571tutor.com Purpose
of Assignment The purpose of this assignment is
to allow students the opportunity to research a
Fortune 500 company stock using the popular
online research tool Yahoo Finance. The tool
allows the student to review analyst reports and
other key financial information necessary to
evaluate the stock value and make an educated
decision on whether to invest. Assignment Steps
Resources Yahoo Finance Select a Fortune 500
Company from one of the following
industries Pharmaceutical
20
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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 5.Projected future financial statements
are called 6.Which account is least apt to vary
directly with sales? 7.Which one of the
following depicts a correct relationship? 8.One
of the primary weaknesses of many financial
planning models is that they
21
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
22
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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
23
FIN 571 TUTOR Teaching Effectively
/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).
24
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
25
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 3 Researching Industry Financial
Statistics FOR MORE CLASSES VISIT
www.fin571tutor.com Purpose of Assignment The
purpose of this assignment is to allow the
students an opportunity to complete their
financial evaluation of a company using the
financial research database Plunkett Research
Online. Plunkett Research Online provides
in-depth analysis of a company's financials,
comparisons to industry averages, a list of top
executives, how the company compares to other
competitors in terms of revenue, number of
employees, market capitalization and other key
financial metrics.
26
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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. Develop a 2,100-word comparison of
your three companies in which you include the
following Discuss the differences in the
industries
27
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 3 Using the Payback Method, IRR, and
NPV FOR MORE CLASSES VISIT www.fin571tutor.com Th
e purpose of this assignment is to allow the
student to calculate the project cash flow using
net present value (NPV), internal rate of return
(IRR), and the payback methods. Assignment Steps
Resources Corporate Finance Create a 350-word
memo to management including the following
Describe the use of internal rate of return
(IRR), net present value (NPV), and the payback
method in evaluating project cash flows.
Describe the advantages and disadvantages of each
method.
28
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 4 Assignment Rate of Return for
Stocks and Bonds FOR MORE CLASSES VISIT
www.fin571tutor.com The purpose of this
assignment is to allow the student an opportunity
to calculate the rate of return of equity and
debt instruments. It allows the student to
understand the effects of dividends capital
gains inflation rates and how the nominal rate
of return affects valuation and pricing. The
assignment also allows the student to apply
concepts related to CAPM, WACC, and Flotation
Costs to understand the influence of debt and
equity on the company's capital
structure. Assignment Steps Resources Corporate
Finance Calculate the following problems and
provide an overall summary of how companies make
financial decisions in no more than 700 words,
based on your answers 1. 1) Stock Valuation A
stock has an initial price of 100 per share,
paid a dividend of 2.00 per share during the
year, and had an ending share price of 125.
Compute the percentage total return, capital
gains yield, and dividend yield.
29
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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) Watters Umbrella Corp. issued
30-year bonds 2 years ago at a coupon rate of 7.4
percent. The bonds make semiannual payments. If
these bonds currently sell for 83 percent of par
value, what is the YTM? (Do not round
intermediate calculations and enter your answer
as a percent rounded to 2 decimal places, e.g.,
32.16.)
30
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
31
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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?
32
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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. Discuss and interpret
the financials in relation to the initiative.
Make recommendations on potential discretionary
financing needs.
33
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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..
34
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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, travel, shows,
office supplies, warehouse rentals etc. totals 5
million dollars this year and are not part of the
80 dollars per pack manufacturing cost. The
federal income tax rate for your company is 40
percent.
35
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 5 Assignment Capital Market
Efficiency Paper FOR MORE CLASSES VISIT
www.fin571tutor.com Purpose of Assignment The
purpose of this assignment is to allow the
student an opportunity to explain what it means
to have an efficient capital market. Students
will gain an understanding of the different
levels of market efficiency and how behavioral
finance can inhibit reaching market transparency.
Assignment Steps Resources Microsoft Word
Explain in 525 words what it means to have
efficient capital market, including Describe
the behavioral challenges in achieving
efficiency.
36
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 5 Assignment Effect of Debt Issuance
on Stock Valuation FOR MORE CLASSES VISIT
www.fin571tutor.com Purpose of Assignment The
purpose of this assignment is to demonstrate to
students how the issuance of debt to purchase
outstanding common stock could affect the value
of the company's equity and redefine the capital
structure. The problem will also allow students
to explore the effect of corporate taxes through
debt financing. Assignment Steps ResourcesCorpora
te Finance
37
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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. Any type of
project should be accepted if the NPV is positive
and rejected if it is negative. A financing
project should be accepted if, and only if, the
NPV is exactly equal to zero. Any type of project
with greater total cash inflows than total cash
outflows, should always be accepted.
38
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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?
39
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
40
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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
41
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
42
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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. The
team must understand how the income statement,
balance sheet, and statement of cash flows are
interconnected and be able to analyze forecasted
financial information to consider possible
effects of each opportunity on the firm's
financial position. The company operates on thin
margins with a constrained cash position and
limited available credit. You must optimize use
of internal and external credit as you balance
the desire for growth with the need for
maintaining liquidity. Create a 1,050-word
analysis of the team members' decisions during
each phase (1-3) and how they influenced each
member's final results.
43
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 5 Working Capital Simulation
Managing Growth, Part 1 (SNC) 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.
44
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
FIN 571 Week 6 Assignment start-up company
Signature Assignment (score 80) FOR MORE CLASSES
VISIT www.fin571tutor.com   About Your Signature
Assignment This signature assignment is designed
to align with specific program student learning
outcome(s) in your program. Program Student
Learning Outcomes are broad statements that
describe what students should know and be able to
do upon completion of their degree. The signature
assignments may be graded with an automated
rubric that allows the University to collect data
that can be aggregated across a location or
college/school and used for program improvements.

45
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
 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 Acting as the CEO of a small company,
you will apply the principles of capital
budgeting to invest in growth and cash flow
improvement opportunities in three phases over 10
simulated years.
46
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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.
47
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
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
Doll Compare 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
following Summarize the decisions made by each
member. Explain why those decisions were made.
48
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com
 FIN 571 Week 6 Working Capital Simulation
Managing Growth, Part 2 (SNC) 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 SNC. Compare 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 following Summarize the decisions made by
each member. Explain why those decisions were
made.
49
FIN 571 TUTOR Teaching Effectively
/fin571tutor.com