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FIN 370 Cash Flow Problem Sets (4-5,4-7,4-8,4-11,4-13)

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Property, plant, and equipment are what the company calls "fixed
assets". Property, plant and equipment are assets that can not be easily
converted into cash. These are basically items such as company car
(used to deliver products), computers and copier machine, and freezer
used for restaurants.6 percent in the second year. c. 5.5 percent in the
third year. What would be the third year future value? 4-8 Compounding
with Different Interest Rates A deposit of $750 earns interest rates of 9
percent in the first year and 12 percent in the second year. What would
be the second year future value? (LG4-3) 4-11 Present Value What is the
present value of a $1,500 payment made in nine years when the discount
rate is 8 percent? (LG4-4) 4-13 Present Value with Different Discount
Rates Compute the present value of $1,000 paid in three years using the
following discount rates: 6 percent in the first year, 7 percent in the
second year, and 8 percent in the third year. (LG4-4)

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FIN 370 Week 1 Calculating Ratios Worksheet (2 Set)


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This Tutorial contains 2 Set of Answers FIN 370 Week 1 Calculating


Ratios Worksheet

1. What is agency theory? How can setting the appropriate goals


for the firm minimize the agency problem?

2.Differentiate between profit maximization and wealth maximization.

3.Why must organizations focus on both shareholder wealth and the


stakeholders?

4. Differentiate between the three financial statements with which


managers should be familiar. How are they linked?

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FIN 370 Final Exam Guide (New)


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The information from financial reports influences business decisions


because it shows where the company stands. The managers use the
information from the financial report compared to the current year from
the previous year, whether the company growths or losses. It is very
important for business managers to understand the information found on
financial reports because the information from the financial reports
enables business managers to see how to improve and keep the business
afloat. It also gives business managers an insight what came in and went
out and the total operating cost of the company as well as cutting cost in
a certain areas. The information from the financial reports helps the
manager manages the business accurately.Financial Profitability
Coverage Liquidity As new capital budgeting projects arise, we must
estimate__________. the cost of the stock being sold for the specific
project when such projects will require cash flows the cost of the loan
for the specific project the float costs for financing the project Whats
the current yield of a 6 percent coupon corporate bond quoted at a price
of 101.70? 6.1 percent 10.2 percent 6.0 percent 5.9 percent We call the
process of earning interest on both the original deposit and on the earlier
interest payments: computing. multiplying. compounding. discounting.
Which financial statement reports a firms assets, liabilities, and equity
at a particular point in time? Balance sheet Income statement Statement
of retained earnings Statement of cash flows You are trying to pick the
least-expensive machine for your company. You have two choices:
machine A, which will cost $50,000 to purchase and which will have
OCF of -$3,500 annually throughout the machines expected life of three
years; and machine B, which will cost $75,000 to purchase and which
will have OCF of -$4,900 annually throughout that machines four-year
life. Both machines will be worthless at the end of their life. If you
intend to replace whichever type of machine you choose with the same
thing when its life runs out, again and again out into the foreseeable
future, and if your business has a cost of capital of 14 percent, which one
should you choose? Machine A Machine B Neither machine A nor B
Both machines A and B When firms use multiple sources of capital, they
need to calculate the appropriate discount rate for valuing their firms
cash flows as__________. a simple average of the capital components
costs a weighted average of the capital components costs a sum of the
capital components costs they apply to each asset as they are purchased
with their respective forms of debt or equity Which of these is used as a
measure of the total amount of available cash flow from a project?
Operating cash flow Investment in operating capital Free cash flow Sunk
cash flow Which of these does NOT perform vital functions to securities
markets of all sorts by channeling funds from those with surplus funds to
those with shortages of funds? Secondary markets Mutual funds
Insurance companies Commercial banks Wills Wheels, Inc. reported a
debt-to-equity ratio of 0.65 times at the end of 2013. If the firms total
debt at year-end was $5 million, how much equity does Wills Wheels
have? $7.69 million $5 million $0.65 million $3.25 million Which of
these is the term for portfolios with the highest return possible for each
risk level? Total portfolios Modern portfolios Optimal portfolios
Efficient portfolios What are the tools available for the manager in
financial planning? Delaying disbursement of cash, reducing collection
period, cash management, and Increasing inventory turnover Reducing
collection period and delaying disbursement of cash Increasing
inventory turnover and reducing collection period Delaying
disbursement of cash and cash management Suppose that Model Nails,
Inc.s capital structure features 60 percent equity, 40 percent debt, and
that its before-tax cost of debt is 6 percent, while its cost of equity is 10
percent. If the appropriate weighted average tax rate is 28 percent, what
will be Model Nails WACC? 7.73 percent 8.40 percent 8.00 percent
16.00 percent We commonly measure the risk-return relationship using
which of the following? Coefficient of variation Standard deviation
Expected returns Correlation coefficient Financial plans include which
of the following?

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FIN 370 Final Exam Guide (New 2017)
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The main objective of generating financial information is providing


useful information that can be used in decision-making... only if this
information is relevant, reliable, comparable, and consistent, can it be
useful for decision makers. (Kieso, 2003).

Relevance gives a basis for making decisions that will impact the future
of a business, and it confirms and corrects expectations from the past. If
the information makes a difference in making decisions, it is relevant.

Offering early payment discounts to customers will tend to increase the


cash cycle. Precise Machinery is analyzing a proposed project. The
company expects to sell 2100 units give or take 5 percent. The expected
variable cost per unit is $260 and the expected fixed costs are $589,000.
Cost estimates are considered accurate within a plus or minus 4 percent
range. The depreciation expense is $129,000. The sales price is
estimated at $750 per unit, give or take 2 percent. The tax rate is 35
percent. The company is conducting a sensitivity analysis on the sales
price using a sales price estimate of $755. What is the operating cash
flow based on this analysis? $86,675 $354,874 $368,015 $293,089
$337,975 You are doing some comparison shopping. Five stores offer
the product you want at basically the same price but with differing credit
terms. Which one of these terms is best-suited to you if you plan to forgo
the discount? 2/10, net 30 2/5, net 30 2/5, net 20 1/10, net 45 1/5, net 15
The plowback ratio is: The dollar increase in net income divided by the
dollar increase in sales. Equal to net income divided by the change in
total equity. Equal to one minus the retention ratio. The change in
retained earnings divided by the dividends paid. The percentage of net
income available to the firm to fund future growth. Which one of the
following is the financial statement that summarizes a firms revenue
and expenses over a period of time? Statement of cash flows Market
value report Tax reconciliation statement Balance sheet Income
statement Kellys Corner Bakery purchased a lot in Oil City six years
ago at a cost of $278000. Today, that lot has a market value of $264,000.
At the time of the purchase, the company spent $6,000 to level the lot
and another $8,000 to install storm drains. The company now wants to
build a new facility on that site. The building cost is estimated at $1.03
million. What amount should be used as the initial cash flow for this
project? -$1,294,000 -$1,322,000 -$1,045,000 -$1,308,000 -$1,308,000
Webster United is paying a dividend of $1.32 per share today. There are
350,000 shares outstanding with a market price of $22.40 per share prior
to the dividend payment. Ignore taxes. Before the dividend, the company
had earnings per share of $1.68. As a result of this dividend, the:
Retained earnings will decrease by $350,000. Earnings per share will
increase to $3. Total firm value will not change. Price-earnings ratio will
be 12.55. Retained earnings will increase by $462,000. The common
stock of Dayton Repair sells for $43.19 a share. The stock is expected to
pay $2.28 per share next year when the annual dividend is distributed.
The firm has established a pattern of increasing its dividends by 2.15
percent annually and expects to continue doing so. What is the market
rate of return on this stock? 7.67 percent 7.59 percent 7.43 percent 7.14
percent 7.28 percent Which one of the following should earn the most
risk premium based on CAPM? Diversified portfolio with returns similar
to the overall market. Stock with a beta of 1.38. Portfolio with a beta of
1.01. U.S. Treasury bill. Stock with a beta of 0.74. Which one of these
actions will increase the operating cycle? Assume all else held constant.
Decreasing the receivables turnover rate. Decreasing the payables
period. Decreasing the average inventory level. Increasing the payables
period. Increasing the inventory turnover rate. Oil Wells offers 6.5
percent coupon bonds with semiannual payments and a yield to maturity
of 6.94 percent. The bonds mature in seven years. What is the market
price per bond if the face value is $1,000? $902.60 $996.48 $913.48
$989.70 $975.93 Three Corners Markets paid an annual dividend of
$1.37 a share last month. Today, the company announced that future
dividends will be increasing by 2.8 percent annually. If you require a
return of 11.6 percent, how much are you willing to pay to purchase one
share of this stock today? $16.67 $16.00 $18.23 $17.68 $15.57 Which
one of the following is a source of cash? Granting credit to a customer
Purchase of inventory Acquisition of debt Payment to a supplier
Repurchase of common stock Nadines Home Fashions has $2.12
million in net working capital. The firm has fixed assets with a book
value of $31.64 million and a market value of $33.9 million. The firm
has no long-term debt. The Home Centre is buying Nadines for $37.5
million in cash. The acquisition will be recorded using the purchase
accounting method. What is the amount of goodwill that The Home
Centre will record on its balance sheet as a result of this acquisition?
$5.86 million $3.34 million $4.14 million $1.48 million $3.74 million
Chelsea Fashions is expected to pay an annual dividend of $1.10 a share
next year. The market price of the stock is $21.80 and the growth rate is
4.5 percent. What is the firms cost of equity? 9.55 percent 10.54 percent
9.24 percent 7.91 percent 9.77 percent Operating leverage is the degree
of dependence a firm places on its: Depreciation tax shield. Variable
costs. Fixed costs. Operating cash flows. Sales. Phillips Equipment has
75,000 bonds outstanding that are selling at par. Bonds with similar
characteristics are yielding 7.5 percent. The company also has 750,000
shares of 6 percent preferred stock and 2.5 million shares of common
stock outstanding. The preferred stock sells for $64 a share. The
common stock has a beta of 1.21 and sells for $44 a share. The U.S.
Treasury bill is yielding 2.3 percent and the return on the market is 11.2
percent. The corporate tax rate is 34 percent. What is the firms weighted
average cost of capital? 11.56 percent 11.30 percent 11.18 percent 10.64
percent 9.69 percent Andy deposited $3,000 this morning into an
account that pays 5 percent interest, compounded annually. Barb also
deposited $3,000 this morning into an account that pays 5 percent
interest, compounded annually. Andy will withdraw his interest earnings
and spend it as soon as possible. Barb will reinvest her interest earnings
into her account. Given this, which one of the following statements is
true? Barb will earn more interest the second year than Andy. Barb will
earn more interest the first year than Andy will. Andy will earn
compound interest. Andy will earn more interest in year three than Barb
will. After five years, Andy and Barb will both have earned the same
amount of interest. When utilizing the percentage of sales approach,
managers: 1. Estimate company sales based on a desired level of net
income and the current profit margin. 2. Consider only those assets
that vary directly with sales. III. Consider the current production
capacity level. 1. Can project both net income and net cash flows.
III and IV only I, III, and IV only II and III only II, III, and IV only I and
II only You are comparing two investment options that each pay 6
percent interest compounded annually. Both options will provide you
with $12000 of income. Option A pays $2,000 the first year followed by
two annual payments of $5,000 each. Option B pays three annual
payments of $4,000 each. Which one of the following statements is
correct given these two investment options? Assume a positive discount
rate. Option B is a perpetuity. Option B has a higher present value at
time zero. Both options are of equal value since they both provide
$12,000 of income. Option A has the higher future value at the end of
year three. Option A is an annuity. The condition stating that the interest
rate differential between two countries is equal to the percentage
difference between the forward exchange rate and the spot exchange rate
is called: Uncovered interest rate parity. The unbiased forward rates
condition. Purchasing power parity. Interest rate parity. The international
Fisher effect. The Dry Dock is considering a project with an initial cost
of $118400. The projects cash inflows for years 1 through 3 are $37200,
$54600 and $46900, respectively. What is the IRR of this project? 8.42
percent 7.48 percent 8.56 percent 8.04 percent 8.22 percent The 7
percent bonds issued by Modern Kitchens pay interest semiannually
mature in eight years and have a $1000 face value. Currently, the bonds
sell for $1,032. What is the yield to maturity? 7.20 percent 6.87 percent
6.48 percent 6.92 percent 6.08 percent Al invested $7200 in an account
that pays 4 percent simple interest. How much money will he have at the
end of five years? $8,678 $8,710 $8,299 $8,056 $8,640 All of the
following represent potential gains from an acquisition except the: Use
of surplus funds. Tax loss carryovers acquired in the acquisition.
Obtainment of a beachhead. Diseconomies of scale related to increased
labor demand. Lower costs per unit realized. Fresno Salads has current
sales of $6000 and a profit margin of 6.5 percent. The firm estimates that
sales will increase by 4 percent next year and that all costs will vary in
direct relationship to sales. What is the pro forma net income? $438.70
$327.18 $405.60 $303.33 $441.10 A news flash just appeared that
caused about a dozen stocks to suddenly drop in value by 20 percent.
What type of risk does this news flash best represent? Market
Unsystematic Portfolio Total Non-diversifiable Which one of the
following terms is defined as the mixture of a firms debt and equity
financing? Cash management Cost analysis Working Capital
Management Capital Structure Capital budgeting George and Pat just
made an agreement to exchange currencies based on todays exchange
rate. Settlement will occur tomorrow. Which one of the following is the
exchange rate that applies to this agreement? Forward exchange rate
Triangle rate Cross rate Current rate Spot exchange rate

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FIN 370 Week 1 Question and Problem Sets (Ch 1: Q


3,11 Ch 2: Q4,9, CH 3: Q4,7, Ch 4: Q 1,6)
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The information on the budget is a great tool to be used for evaluation


performances. The flexible budget can be used for monthly comparison
purposes. Also during the process that management is identifying the
activity index and the range of activity it will allow them to see the cost
of direct labor hours for that budget period.

Ch. 1: Questions 3 & 11 (Concepts Review and Critical Thinking


Questions section) Ch. 2: Questions 4 & 9 (Questions and Problems
section): Microsoft Excel template provided for Problem 4. Ch.
3: Questions 4 & 7 (Question and Problems section) Ch. 4: Questions
1 & 6 (Questions and Problems section): Microsoft Excel template
provided for Problem 6. Format your assignment consistent with APA
guidelines if submitting in Microsoft Word. Click the Assignment Files
tab to submit your assignment. Ch. 1: Questions 3 & 11 (Concepts
Review and Critical Thinking Questions section) 3. Corporations [LO3]
What is the primary disadvantage of the corporate form of organization?
Name at least two advantages of corporate organization. 11. Goal of the
Firm [LO2] Evaluate the following statement: Managers should not
focus on the current stock value because doing so will lead to an
overemphasis on short-term profits at the expense of long-term profits.
Ch. 2: Questions 4 & 9 (Questions and Problems section): Microsoft
Excel template provided for Problem 4. Building an Income Statement
[LO1] Billys Exterminators, Inc., has sales of $817,000, costs of
$343,000, depreciation expense of $51,000, interest expense of $38,000,
and a tax rate of 35 percent. What is the net income for this firm? 3.
Dividends and Retained Earnings [LO1] Suppose the firm in Problem 2
paid out $95,000 in cash dividends. What is the addition to retained
earnings? 4. Per-Share Earnings and Dividends [LO1] Suppose the firm
in Problem 3 had 90,000 shares of common stock outstanding. What is
the earnings per share, or EPS, figure? What is the dividends per share
figure? 9. Calculating Additions to NWC [LO4] The 2014 balance sheet
of Steelo, Inc., showed current assets of $4,630 and current liabilities of
$2,190. The 2015 balance sheet showed current assets of $5,180 and
current liabilities of $2,830. What was the companys 2015 change in net
working capital, or NWC? Ch. 3: Questions 4 & 7 (Question and
Problems section) 4. Calculating Inventory Turnover [LO2] The Green
Corporation has ending inventory of $417,381, and cost of goods sold
for the year just ended was $4,682,715. What is the inventory turnover?
The days sales in inventory? How long on average did a unit of
inventory sit on the shelf before it was sold? 7. DuPont Identity [LO4] If
Roten Rooters, Inc., has an equity multiplier of 1.15, total asset turnover
of 2.10, and a profit margin of 6.1 percent, what is its ROE? Ch. 4:
Questions 1 & 6 (Questions and Problems section): Microsoft Excel
template provided for Problem 6. 1. Pro Forma Statements [LO1]
Consider the following simplified financial statements for the Yoo
Corporation (assuming no income taxes): 6. Calculating Internal Growth
[LO3] The most recent financial statements for Schenkel Co. are shown
here: Assets and costs are proportional to sales. Debt and equity are not.
The company maintains a constant 30 percent dividend payout ratio.
What is the internal growth rate?

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FIN 370 Week 2 Cash Flow Problem Sets (5-1,5-3,5-5,5-


7,5-12,5-15,5-39)
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Level or volume of activity is the activity that causes change or behavior


when it comes to the cost. Unit selling Price is the cost for the product
basically how much each unit is selling for. The Variable Cost per unit
is something that can change depending on the activity. The total fixed
cost does stay the same as activities change but differ per unit. The Sales
mix is basically what the name says. Its a mixture of sale items when
more than one product sold the sales will remain the consistent. Present
Value Compute the present value of a $2,000 deposit in year 1 and
another $1,500 deposit at the end of year 3 if interest rates are 10
percent. 5-7 Present Value of an Annuity Whats the present value of a
$900 annuity payment over five years if interest rates are 8 percent? 5-
12 Present Value of an Annuity Due If the present value of an ordinary,
6-year annuity is $8,500 and interest rates are 9.5 percent, whats the
present value of the same annuity due? 5-15Effective Annual Rate A
loan is offered with monthly payments and a 10 percent APR. Whats the
loans effective annual rate (EAR)? 5-39 Loan Payments You wish to
buy a $25,000 car. The dealer offers you a 4-year loan with a 9 percent
APR. What are the monthly payments? How would the payment differ if
you paid interest only? What would the consequences of such a decision
be?

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FIN 370 Week 1 Calculating Ratios Worksheet (2 Set)
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The differences between managerial accounting and financial accounting


are distinct. Managerial accounting reports are for those in managerial
and decision making positions. The managers use the financial report to
answer questions, which would advance the company and its employees.
The manager would want to know if certain investments should be made
and should the company advance an employee's salary. The manager
needs the report to decide if a factory is built or if a certain stock is
brought. The financial accountant has the job of showing the external
users such as creditors and stockholders a picture of the company's
stability.

What is agency theory? How can setting the appropriate goals


for the firm minimize the agency problem? 2. Differentiate between
profit maximization and wealth maximization. 3. Why must
organizations focus on both shareholder wealth and the stakeholders? 4.
Differentiate between the three financial statements with which
managers should be familiar. How are they linked?
FIN 370 Week 2 Financial Markets and Institutions
Report (2 Papers)
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This Tutorial contains 2 Papers FIN 370 Week 2 Financial Markets and
Institutions Report Create a 1,050-word report, and include the
following: In a business, a budget helps a business make good
decisions because they are used by the company to plan for future events
and coordinate the events and duties in the company. They also gives
objectives used to evaluate the performance of the company on each
level which can help to make future decisions that will not hurt the
company based on the projected objectives. Differentiate between
primary and secondary markets. Differentiate between money and
capital markets. Format your assignment consistent with APA guidelines.

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FIN 370 Week 3 Question and Problem Sets (Ch 9: Q7 &


Q8, Ch 10: Q3& Q13, Ch 11: Q 1 & Q7)
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I never once took into consideration profit, sales, revenue, and balance
sheets also being included with accounting. There is so much more
involved with accounting, and had I not taken this course I would have
never known. Accounting is a very important part of running a business.
I feel that it is imperative to all people thinking of opening a business
should take some type of accounting class to become more aware of how
to run the accounting part of a business. Ch. 11: Questions 1 & 7
(Questions and Problems section) Format your assignment consistent
with APA guidelines if submitting in Microsoft Word. Click the
Assignment Files tab to submit your assignment. Ch. 9: Questions 7 &
8 (Questions and Problems section) 7. Calculating IRR [LO5] A firm
evaluates all of its projects by applying the IRR rule. If the required
return is 14 percent, should the firm accept the following project? 8.
Calculating NPV [LO1] For the cash flows in the previous problem,
suppose the firm uses the NPV decision rule. At a required return of 11
percent, should the firm accept this project? What if the required return
is 24 percent? Ch. 10: Questions 3 & 13 (Questions and Problems
section) 3. Calculating Projected Net Income [LO1] A proposed new
investment has projected sales of $635,000. Variable costs are 44 percent
of sales, and fixed costs are $193,000; depreciation is $54,000. Prepare a
pro forma income statement assuming a tax rate of 35 percent. What is
the projected net income? 13. Project Evaluation [LO1] Dog Up! Franks
is looking at a new sausage system with an installed cost of $540,000.
This cost will be depreciated straight-line to zero over the projects five-
year life, at the end of which the sausage system can be scrapped for
$80,000. The sausage system will save the firm $170,000 per year in
pretax operating costs, and the system requires an initial investment in
net working capital of $29,000. If the tax rate is 34 percent and the
discount rate is 10 percent, what is the NPV of this project? Ch. 11:
Questions 1 & 7 (Questions and Problems section) 1. Calculating Costs
and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech
sunglasses. The variable materials cost is $9.64 per unit, and the variable
labor cost is $8.63 per unit. a. What is the variable cost per unit? b.
Suppose NSI incurs fixed costs of $915,000 during a year in which total
production is 215,000 units. What are the total costs for the year? c. If
the selling price is $39.99 per unit, does NSI break even on a cash basis?
If depreciation is $465,000 per year, what is the accounting break-even
point? 7. Calculating Break-Even [LO3] In each of the following cases,
calculate the accounting break-even and the cash break-even points.
Ignore any tax effects in calculating the cash break-even.

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FIN 370 Week 2 Question and Problem Sets (Ch 5:


Q3,Q4 Ch 6: Q2, Q20, Ch 7 : Q3,Q11 Ch 8: Q1,Q6)
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Question-and-Problem-Sets--(Ch-5:-Q3,Q4--Ch-6:-Q2,-
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According to the FASB website the mission of the FASB is to establish
and improve standards of financial accounting and reporting that foster
financial reporting by nongovernmental entities that provides decision-
useful information to investors and other users of financial reports. Since
1973, the Financial Accounting Standards Board (FASB) has been the
designated organization in the private sector for establishing standards of
financial accounting that govern the preparation of financial reports by
nongovernmental entities

Ch. 5: Questions 3 & 4 (Question and Problems section):


Microsoft Excel templates provided for Problems 3 and 4
Ch. 6: Questions 2 & 20 (Questions and Problems section)
Ch. 7: Questions 3 &11 (Questions and Problems section)
Ch. 8: Questions 1 & 6 (Questions and Problems section):
Microsoft Excel template provided for Problem 6 Format your
assignment consistent with APA guidelines if submitting in Microsoft
Word. Click the Assignment Files tab to submit your assignment. Ch. 5:
Questions 3 & 4 (Question and Problems section): 3. Calculating Present
Values [LO2] For each of the following, compute the present value: 4.
Calculating Interest Rates [LO3] Solve for the unknown interest rate in
each of the following: Ch. 6: Questions 2 & 20 (Questions and Problems
section) 2. Present Value and Multiple Cash Flows [LO1] Investment X
offers to pay you $4,700 per year for eight years, whereas Investment Y
offers to pay you $6,700 per year for five years. Which of these cash
flow streams has the higher present value if the discount rate is 5
percent? If the discount rate is 15 percent? 20. Calculating Loan
Payments [LO2, 4] You want to buy a new sports coupe for $79,500, and
the finance office at the dealership has quoted you an APR of 5.8 percent
for a 60-month loan to buy the car. What will your monthly payments
be? What is the effective annual rate on this loan? Ch. 7: Questions
3 &11 (Questions and Problems section) 3. Valuing Bonds [LO2] 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, 23 years to maturity, and a coupon rate of 5.8 percent
paid annually. If the yield to maturity is 4.7 percent, what is the current
price of the bond? Excel Sheet 11. Valuing Bonds [LO2] Union Local
School District has a bond outstanding with a coupon rate of 3.7 percent
paid semiannually and 16 years to maturity. The yield to maturity on this
bond is 3.9 percent, and the bond has a par value of $5,000. What is the
price of the bond? Ch. 8: Questions 1 & 6 (Questions and Problems
section): Microsoft Excel template provided for Problem 6 1.
Stock Values [LO1] The JacksonTimberlake Wardrobe Co. just
paid a dividend of $1.95 per share on its stock. The dividends are
expected to grow at a constant rate of 4 percent per year indefinitely. If
investors require a return of 10.5 percent on The JacksonTimberlake
Wardrobe Co. stock, what is the current price? What will the price be in
three years? In 15 years? 6. Stock Valuation [LO1] Suppose you know
that a companys stock currently sells for $63 per share and the required
return on the stock is 10.5 percent. You also know that the total return on
the stock is evenly divided between a capital gains yield and a dividend
yield. If its the companys policy to always maintain a constant growth
rate in its dividends, what is the current dividend per share?

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FIN 370 Week 3 Individual AssingmentRisk and Return


Analysis Report (2 Papers)
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DestinyWear products will range from jeans, shirts, accessories and


shoes. The company will first start off with its most profitable product
and that will be the DestinyWear designer jeans line. The jeans line has
over twenty different jeans designs from straight leg, baggy, cargo,
overalls, shorts and much more. The jeans line will provide services
within the United States and Canada and will eventually service
International customers. The DestinyWear jeans line will have its own
building. In this building the bottom floor will consist of the factory and
the top floor will have the different departments such as management,
marketing and most importantly the accounting department.

Explain the relationship between risk and return Identify an


example of risk and return. Explain which is more risky bonds or
common stocks. Explain how understanding risk and return will
help you in future business ventures. Format your assignment consistent
with APA guidelines. Click the Assignment Files tab to submit your
assignment.

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FIN 370 Week 3 Assignment Financial Ratio analysis


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(i) Increasing inventory indicates that the company inventory conversion
period is increasing.

(ii) The cash from investing activity shows that the company cash
outflow is more in the short term investment i.e. in non operating
activity.

(iii) The overall has for the year 2008 has declined for the company.
Assignment Steps Resources: Tutorial help on Excel and Word
functions can be found on the MicrosoftOffice website. There are
also additional tutorials via the web that offer support for office
products. Select one of the publicly traded corporations listed below and
obtain the most current SEC Form 10-K (annual financial report) from
the company's web site (Do not use the Annual Report that is sent to
shareholders): Lowes Corporation Kroger Corporation Harley
Davidson Corporation Apple Corporation Intel Corporation
Marriott Corporation Berkshire Hathaway Corporation
PepsiCo Corporation Procter and Gamble Corporation
General Electric Corporation Calculate and analyze the following
ratios for your selected company for the last two years from the SEC
Form 10-K: Current Ratio Inventory Turnover Debt Ratio
Time Interest Earned Gross Profit Margin Equity
Multiplier Return on Assets Net Profit Margin Return on
Equity (Use three ratio DuPont method) Compare and contrast your
company's ratios to industry and competitor standard ratios obtained
from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or other
Internet sources, and provide a detailed answer and analysis as to why
your company's ratios are different than the industry/competitor
standard. Prepare your analysis in a minimum of 875 words in
Microsoft Word. The use of MicrosoftWord tables is encouraged.
Cite the source of the industry/competitor ratio information. Format your
assignment consistent with APA guidelines. Click the Assignment Files
tab to submit your assignment. Note: Grades are awarded based upon
individual contributions to the Learning Team assignment. Each
Learning Team member receives a grade based upon his/her
contributions to the team assignment. Not all students may receive the
same grade for the team assignment.

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FIN 370 Week 5 Team Assignment Precision Machines


Part 2 (Cash Budget and Strategic Analysis)
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FIN 370 Week 5 Precision Machines Part 2 Note: There are two parts to
this learning team assignment; Part 1 was completed in Week 3. Review
the Precision Machines document and spreadsheet. Prepare a cash
budget for Precision Machines in Microsoft Excel. Create a 1,225-
word strategic analysis and include the following:

As mentioned before the advantage of straight line depreciation is


it is easier to figure and uses the same total each year for deduction of
depreciation expense but the disadvantage is that if use for taxable
income and reporting a company does not get a bigger tax break at the
beginning of the assets life when they have just put out the cost for the
item and may need a bigger tax break.

Explain two economic and market forces that will impact the
financial plan of this company. Format your documents consistent with
APA guidelines. Click the Assignment Files tab to submit your
assignment. Review the "Precision Machines" document and
spreadsheet. Prepare a cash budget for Precision Machines in
Microsoft Excel. Precision Machines

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FIN 370 Week 4 Cash Flow AnalysisFrank Smith


Plumbing (calculation and 2 Papers)
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This tutorial includes both calculation and 2 Papers FIN 370 Week 4
Cash Flow Analysis Analyze the case study, Frank Smith Plumbing.
Analyze the Frank Smith Plumbings Financial Statement spreadsheet.
Compare the cost of the truck to the cash flow records Compile your
calculations in a Microsoft Excel document Develop a 1,050-word
analysis and include the following:
Total shareholders equity has down a little bit in dollars, but on the
percentage level the companys percentage has gone up. I believe this is
because the company issued $104k more shares in 2004 than in 2003.
The company has the same amount of shares outstanding in 2004 that it
did in 2003 as well. Retained earnings on the stock have gone up in 2004
as well. I believe this is contributed by the more shares that have been
issued.

Explain how Stephanie should convince her mother that it is


inappropriate to call the bank manager and his wife for assistance in
getting the loan approval? Analyze whether the investment in the truck
is profitable. Explain whether it is more beneficial for Frank to close
his business. Explain what you would do in this same situation. Format
your assignment consistent with APA guidelines. Click the Assignment
Files tab to submit your assignments.

=======================================

FIN 370 Week 3 Risk and Return Problem Sets (7-21,7-


27,8-19,8-21,9-33)
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Risk-and-Return-Problem-Sets-(7-21,7-27,8-19,8-21,9-
33)
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FIN 370 Week 3 Risk and Return Problem Sets Complete the following
problem sets from Chapter 7 in Microsoft Excel: 7-21 7-27
Complete the following problem sets from Chapter 8 in Microsoft
Excel: 8-19 8-21 Complete the following problem sets from
Chapter 9 in Microsoft Excel: 9-33 Click the Assignment Files
tab to submit your assignment. Complete the following problem sets
from Chapter 7 in Microsoft Excel: After reviewing this
information, a creditor or investor must be able to compare this company
to the industry totals. By comparing how this company compares to
other companies similar to it, a person can see if it is competitive and
worth taking a risk. Running ratios will also show if the company is
capable of paying off any debts it has or if it can acquire the needed cash
in case of emergencies. Overall as an investor, I would say this company
would be worth investing in. . (Assume interest payments are
semiannual.) Is this a discount or premium bond? 7-27 Yield to
Maturity A 5.65 percent coupon bond with 18 years left to maturity is
offered for sale at $1,035.25. What yield to maturity is the bond
offering? (Assume interest payments are semiannual.) Complete the
following problem sets from Chapter 8 in Microsoft Excel: 8-19
Value a Constant Growth Stock Financial analysts forecast Safeco
Corp.s (SAF) growth rate for the future to be 8 percent. Safecos recent
dividend was $0.88. What is the value of Safeco stock when the required
return is 12 percent? 8-21 Expected Return Ecolap Inc. (ECL) recently
paid a $0.46 dividend. The dividend is expected to grow at a 14.5
percent rate. At a current stock price of $44.12, what is the return
shareholders are expecting? Complete the following problem sets from
Chapter 9 in Microsoft Excel: 9-33 Risk, Return, and Their
Relationship Consider the following annual returns of Estee Lauder and
Lowes Companies (Table Attached)

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FIN 370 Week 3 Team Assignment Precision Machines


Part 1 (annotated bibliography and excel calculation)
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Team-Assignment-Precision-Machines-Part-1--
(annotated-bibliography-and-excel-calculation)
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This Tutorial contains both annonated bibliography and excel file FIN
370 Week 3 Team Assignment Precision Machines Part 1 Precision
Machines is preparing a financial plan for the next six months to
determine the financial needs of the company. For example, an investor
holds 100 shares of XYZ Company and the face value per share is $50.
If the management go for reverse stock split option and declares one
share for 10 shares then the holding of the individual will reduce 9
shares for every 10 shares. Thus the new holding of the investor will be
10 (100/10) shares but the face value per share will be $500. It is also
important that the total market capitalization will remain as same as
before reverse split. The example of the reverse split is take form below
mentioned link: http://www.sec.gov/answers/reversesplit.htm. This
means the cash collections from sales are 30% in the first month of the
sale, 35% in the second month, and 35% in the third month. The
materials purchased by the company amounts to 50% of the sales for the
month. The company pays for the purchases one month after the initial
purchase. The company likes to maintain a cash balance of $5,000. The
cost of borrowing is 10%. The company plans to pay off the loan
whenever there is a surplus and borrow when there is a deficit. The
attached spreadsheet shows revenues (sales), expenses, capital
expenditures, and other expenses for Precision Machines next six
months. Using the information given on the spreadsheet, prepare a cash
budget for January through June and determine the cash surplus, deficit,
and the financing needs of the company. Note: There are two parts to
this learning team assignment; Part 2 will be completed in Week 5.
Review the Learning Team Assignment due in Week 5. Create an outline
for the essay. Develop a 700-word annotated bibliography using at least
3 resources. Format your paper consistent with APA guidelines. Click
the Assignment Files tab to submit your assignment.

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