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FIN 515 NERD Inspiring Minds/fin515nerd.com

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Page 1: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds/fin515nerd.com

Page 2: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Course Project 1 and 2FOR MORE CLASSES VISIT

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This Tutorial contains Week 3 Course Project (3 Sets) Week 6 Course Project (2 Sets)

Page 3: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Entire CourseFOR MORE CLASSES VISIT

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This tutorial doesnt contain Final Exam Guide FIN 515 Week 1 DQ 1 Accounting Versus Finance FIN 515 Week 1 DQ 2 Financial Analysis FIN 515 Week 1 Quiz FIN 515 Week 1 Quiz (New)

Page 4: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Final Exam (all 3 Sets)FOR MORE CLASSES VISIT

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FIN 515 Final Exam Set 1 FIN 515 Final Exam Set 2 FIN 515 Final Exam Set 3

Page 5: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Final Exam Set 1FOR MORE CLASSES VISIT

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1. (TCO A) In the United States, which of the following types of organization has the greatest revenue in total? (Points : 5)

a. Sole proprietorship b. C corporation c. S corporation d. Limited partnership 1.1) Which of the following is not a step in the WACC

valuation method?

Page 6: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Final Exam Set 2FOR MORE CLASSES VISIT

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Question 1.1. (TCO A) Double taxation is a drawback for which of the following types of business organization except?

Question 2.2. (TCO A) Sole proprietorships have all of the following advantages except

Question 3.3. (TCO B) Which of the following would cause the present value of an annuity to decrease?

Page 7: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Final Exam Set 3FOR MORE CLASSES VISIT

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1. (TCO A) In the United States, which of the following types of organization has the greatest revenue in total? (Points : 5)

Sole proprietorship C corporation S corporation Limited partnership Question 2.2. (TCO A) A sole proprietorship is owned

by (Points : 5)

Page 8: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 1 DQ 1 Accounting Versus Finance

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Accounting Versus Finance (graded) Much of the analysis done by financial managers is

based on numbers that are different from what would seem to the corresponding numbers presented in the financial statements. This difference is not due to any kind of cooking the books or other attempts to mislead anyone.

Page 9: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 1 DQ 2 Financial AnalysisFOR MORE CLASSES VISIT

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Financial Analysis (graded) In this discussion, we will be working with the variety of

financial analysis tools available to us. Let's start with the DuPont Identity introduced in Chapter 2 of the text. For your initial post, locate the financial statements for two firms in one industry. Calculate all four terms of the DuPont Identity and present the results but do not analyze the results. For an additional post, analyze the results that another student has posted. If you were the appropriate financial manager of one of the firms that you analyzed, what would be your observations and recommendations?

Page 10: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 1 Problem SetFOR MORE CLASSES VISIT

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Chapter 1 The Corporation 1-1. What is the most important difference between a

corporation and all other organizational forms? 1-2. What does the phrase limited liability mean in a

corporate context? 1-3. Which organizational forms give their owners limited

liability? 1-4. What are the main advantages and disadvantages of

organizing a firm as a corporation?

Page 11: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 1 Quiz (New)FOR MORE CLASSES VISIT

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Question 1. (TCO G) The lecture says that some ratios typically are

better when they are higher and some of the ratios are better when they are lower. Pick a ratio for which a lower number typically would be preferred and describe a situation, in which a higher number for that ratio would be preferred, OR pick a ratio for which a higher number typically would be preferred and describe a situation in which a lower number for that ratio would be preferred.

Page 12: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 1 QuizFOR MORE CLASSES VISIT

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Question 1 (TCO G) Which do you think provides a more valid

measure of how a company is doing, comparison of current results with historical results or comparison of current results with the current results of another company?

Page 13: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 1-7 DQsFOR MORE CLASSES VISIT

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FIN 515 Week 1 DQ 1 Accounting Versus Finance FIN 515 Week 1 DQ 2 Financial Analysis FIN 515 Week 2 DQ 1 TVM Pass-a-Problem FIN 515 Week 2 DQ 2 Assumptions of the TVM Model FIN 515 Week 3 DQ 1 Examples of Capital Expenditure

From Your Industry FIN 515 Week 3 DQ 2 Capital Budgeting Terms and

Considerations

Page 14: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 2 DQ 1 TVM Pass-a-ProblemFOR MORE CLASSES VISIT

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TVM Pass-a-Problem (graded) This week, the lecture provided some examples of

TVM problem scenarios. For your first post, provide a story problem that can be solved using one or more of the TVM calculations.Your second post can be a description of how the problem posed by another student can be solved. Your professor may provide an example.

Page 15: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 2 DQ 2 Assumptions of the TVM Model

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Assumptions of the TVM Model (graded) What are some of the assumptions behind the TVM

calculations? How do these assumptions limit our application of these calculations?

Page 16: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 2 Problem SetFOR MORE CLASSES VISIT

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3.Calculate the future value of $2000 in a. five years at an interest rate of 5% per year; b. ten years at an interest rate of 5% per year; and c. five years at an interest rate of 10% per year.

Page 17: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 2 QuizFOR MORE CLASSES VISIT

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FIN 515 Week 2 Quiz Question 1 (TCO B) You are a trust fund baby. Your trust fund is

currently worth $1,234,000. The problem is the terms of the trust don’t allow you to receive any of the money until you are 27. You are now 21. The fund is earning 7.7% per year. How much will the fund be worth when you are 27 and too old to enjoy it?

Page 18: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 3 Course Project 1 (3 Papers)FOR MORE CLASSES VISIT

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This Tutorial contains 3 Different Course Projects First Course Project The purpose of this project is to help you develop

skills not only in performing the calculations behind financial analysis but interpreting the numbers as well.

Page 19: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 3 DQ 1 Examples of Capital Expenditure From Your Industry

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FIN 515 Week 3 DQ 1 Examples of Capital Expenditure From Your Industry (graded)

Describe a potential capital expenditure project from the industry in which you now work or an industry in which you are interested. What is the project? Describe and provide an approximate value of the initial cash flow. Describe and provide an approximate value of the annual cash flows. Provide an estimation of the life of the project, as well as the exit costs.

Page 20: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 3 DQ 2 Capital Budgeting Terms and Considerations

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Capital Budgeting Terms and Considerations Our textbook and lecture discuss some considerations

that should be taken into account when doing capital budgeting. How will these considerations affect the project you described in the other topic? Incremental earnings, interest expenses, taxes, opportunity costs, externalities, sunk costs, cannibalization or erosion, depreciation, and salvage value; as well as others.

Page 21: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 3 Problem SetFOR MORE CLASSES VISIT

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Week 3 Problem Set 1. Your brother wants to borrow $10,000 from you. He

has offered to pay you back $12,000 in a year. If the cost of capital of this investment opportunity is 10%, what is its NPV? Should you undertake the investment opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

Page 22: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 3 QuizFOR MORE CLASSES VISIT

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Company A has a beta of 2.77. Company B has a beta of .73. Company C has a beta of .90. The risk free rate is 6% and the market risk premium is 4%. What is the expected return of investing in Company B?

Page 23: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 4 DQ 1 Market Value of a Stock Versus DDM Value

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Market Value of a Stock Versus DDM Value (graded) Select a stock in which you are interested. Calculate

its per share value using the DDM or another method discussed in Chapter 9. Then find the current market value of a share of the stock. Compare that two. Can you explain the similarity or difference?supplier?

Page 24: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 4 DQ 2 Differences in YTM of Real Life Bonds

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Differences in YTM of Real Life Bonds (graded) Do some research, probably on the Web, and find

some bonds with differing yields to maturity (YTM). How do you explain the difference? Both the lecture and the textbook discuss some factors that may lead to this difference.

Page 25: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 4 MidtermFOR MORE CLASSES VISIT

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Question 1. Question : (TCO G) The firm's asset turnover measures Question 2. Question : (TCO G) If Moon Corporation has an increase in sales,

which of the following would result in no change in its EBIT margin?

Page 26: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 4 Problem SetFOR MORE CLASSES VISIT

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Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years.

Page 27: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 5 DQ 1 Calculating WACC for a Real Firm

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Calculating WACC for a Real Firm (graded) The Weighted Average Cost of Capital (WACC) for a firm

can be calculated or found through research. Select two firms in the same industry. The industry may be that in which you currently work or it may be an industry in which you are interested. Calculate or find the WACC for the two firms. How do the WACCs compare? Are the WACCs what you would expect? What causes the differences between the two firms' WACCs?

Page 28: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 5 DQ 2 Finding Stock Values for Real Stocks Using Beta and the SML

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Finding Stock Values for Real Stocks Using Beta and the SML (graded)

Our second discussion topic concerns the calculation of stock values using the Capital Asset Pricing Model (CAPM). We will start with a discussion of risk and work towards practical application of the model. The textbook provides a list of betas for a selection of stocks. Choose a few firms from that list and discuss whether the betas are what you would expect. Be sure to explain why or why not.

Page 29: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 5 problem SetFOR MORE CLASSES VISIT

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Chapter 10 (pages 345–348): 4. You bought a stock one year ago for $50 per share and

sold it today for $55 per share. It paid a $1 per share dividend today.

a. What was your realized return?

Page 30: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 5 QuizFOR MORE CLASSES VISIT

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Question 1 (TCO C) Company A has a beta of 2.77. Company B

has a beta of .73. Company C has a beta of .90. The risk free rate is 6% and the market risk premium is 4%. What is the expected return of investing in Company B? Show your work.

Page 31: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 6 Course Project 2 (2 Different Projects)

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This Tutorial contains 2 Different Course Projects Second Project The purpose of this project is for you to have some

practice working with financial concepts in the real world. This will involve integrating some material from throughout the course. The project will also involve the development of your own approach to doing the work. The project does not provide a step-by-step procedure for you to follow.

Page 32: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 6 DQ 1 Examples of Real Agency Problems and How They Could Have Been Prevented

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Examples of Real Agency Problems and How They Could Have Been Prevented (graded)

Do some research and find some historical or current real life examples of agency problems. Will the measures discussed in the text help to prevent problems like your examples in the future? What else would you advise?

Page 33: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 6 DQ 2 The Role of Financial Managers in Ethical Corporate Governance

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The Role of Financial Managers in Ethical Corporate Governance (graded)

Does the financial manager have a greater responsibility or a lesser responsibility for maintaining ethical corporate governance? Why or why not? What is or will be your approach to ethical corporate governance now or in the future?

Page 34: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 6 Problem SetFOR MORE CLASSES VISIT

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Chapter 29 (pages 983-984): 1.What inherent characteristic of corporations creates

the need for a system of checks on manager behavior?

2. What are some examples of agency problems? 3.What are the advantages and disadvantages of the

corporate organizational structure? 4.What is the role of the board of directors in

corporate governance?

Page 35: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 7 DQ 1 Industry Approaches to Working Capital Financing

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Industry Approaches to Working Capital Financing (graded)

Do some research on two firms in your industry or an industry in which you are interested. Can you get an idea of their working capital management policies from publicly available information? How do the two companies differ in their apparent working capital management policies? Which policy do you think is better and why?

Page 36: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 7 DQ 2 Your Preference for Working Capital Management Policy

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Your Preference for Working Capital Management Policy (graded)

Consider the company you work for or a company in which you are interested. Also, do some research to find some current cost estimates for various means of financing working capital. What would be your recommendation to the company for financing its working capital needs?

Page 37: FIN 515 NERD Inspiring Minds/fin515nerd.com

FIN 515 NERD Inspiring Minds

FIN 515 Week 7 Problem SetFOR MORE CLASSES VISIT

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Chapter 26 (page 903): 1. Answer the following questions: a. What is the difference between a firm’s cash cycle

and its operating cycle? 2. How will a firm’s cash cycle be affected if a firm

increases its inventory, all else being equal?

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FIN 515 NERD Inspiring Minds