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FIN 515 Entire Course

This tutorial does not 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)
FIN 515 Week 1 Problem Set
FIN 515 Week 2 DQ 1 TVM Pass-a-Problem
FIN 515 Week 2 DQ 2 Assumptions of the TVM Model
FIN 515 Week 2 Quiz
FIN 515 Week 2 Problem Set

FIN 515 Course Project 1 and 2

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

e Project (2 Sets)

FIN 515 Final Exam (all 3 Sets

) FIN 515 Final Exam Set 1 FIN 515 Final Exam Set 2 FIN 515 Final Ex
am Set 3

FIN 515 Final Exam Set 1

1. (TCO A) In the United States, which of the following types of orga

nization has the greatest revenue in total? (Points : 5)a. Sole propri
etorshipb. C corporationc. S corporationd. Limited partnership 1.1)
Which of the following is not a step in the WACC valuation method?
A) Compute the value of the investment, including the tax benefit o
f leverage, by discounting the free cash flow of the investment usin
g the WACC.B) Compute the weighted average cost of capital.C) Det
ermine the free cash flow of the investment.D) Adjust the WACC for
the firm's current debt/equity ratio. 1. (TCO H) Zervos Inc. had the f
ollowing data for 2008 (in millions).

FIN 515 Final Exam Set 2

Question 1.1. (TCO A) Double taxation is a drawback for which of th

e following types of business organization except? Question 2.2. (T
CO A) Sole proprietorships have all of the following advantages exc
ept Question 3.3. (TCO B) Which of the following would cause the p
resent value of an annuity to decrease? Question 4.4. (TCO B) In a T
VM calculation, if incoming cash flows are positive, outgoing cash fl
ows must be Question 5.5. (TCO G) If net income, total assets, and
book value of equity stayed the same, what would be the effect on
the DuPont Identity of an increase in sales? Question 6.6. (TCO D) A
stock has just paid a dividend and will pay a dividend of $3.00 in a
year. The dividend will stay constant for the rest of time. The retur
n on equity for similar stocks is 14%. What is P0? Question 7.7.

FIN 515 Final Exam Set 3

1. (TCO A) In the United States, which of the following types of orga

nization has the greatest revenue in total? (Points : 5) Sole propriet
orship C corporation S corporation Limited partnership Question 2
.2. (TCO A) A sole proprietorship is owned by (Points : 5) one perso
n. one or two people, but if there are two owners, they must be ma
rried to each other. up to 100 owners. up to 64 owners. Question 3
.3. (TCO B) Which of the following would cause the present value of
an annuity to decrease? (Points : 5) Reducing the number of payme
nts. Increasing the number of payments. Decreasing the interest ra
te. Decreasing the liquidity of the payments. Question 4.4.

FIN 515 Week 1 DQ 1 Accounting Versus Finan

ce

Accounting Versus Finance (graded) Much of the analysis done by f

inancial managers is based on numbers that are different from wh
at would seem to the corresponding numbers presented in the fin
ancial statements. This difference is not due to any kind of cooking
the books or other attempts to mislead anyone. One example is th
e use of market value rather than historical cost in the valuation of
assets. What are some other examples of the differences between
financial management and financial accounting?

FIN 515 Week 1 DQ 2 Financia

l Analysis
Financial Analysis (graded) In this discussion, we will be working wi
th the variety of financial analysis tools available to us. Let's start w
ith the DuPont Identity introduced in Chapter 2 of the text. For you
r initial post, locate the financial statements for two firms in one in
dustry. Calculate all four terms of the DuPont Identity and present
the results but do not analyze the results. For an additional post, a
nalyze the results that another student has posted. If you were the
appropriate financial manager of one of the firms that you analyze
d, what would be your observations and recommendations?

FIN 515 Week 1 Problem Set

Chapter 1 The Corporation 1-1. What is the most important differe

nce 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 organizin
g a firm as a corporation? 1-5. Explain the difference between an S
corporation and a C corporation. 1-6. You are a shareholder in a C
corporation. The corporation earns $2 per share before taxes. Onc
e it has paid taxes it will distribute the rest of its earnings to you as
a dividend. The corporate tax rate is 40% and the personal tax rate
on (both dividend and non-dividend) income is 30%. How much is l
eft for you after all taxes are paid? 1-7. Repeat Problem 6 assuming
the corporation is an S corporation. Chapter 2 Introduction to Fina
ncial Statement Analysis 2-8. In early 2009, General Electric (GE) ha
d a book value of equity of $105 billion.

FIN 515 Week 1 Quiz(New)

Question 1. (TCO G) The lecture says that some ratios typically are
better when they are higher and some of the ratios are better whe
n they are lower. Pick a ratio for which a lower number typically w
ould be preferred and describe a situation, in which a higher numb
er for that ratio would be preferred, OR pick a ratio for which a hig
her number typically would be preferred and describe a situation i
n which a lower number for that ratio would be preferred. Questio
n 2. (TCO G) As of December 31, 20XX, David Corp's accounts payab
le were $4,000,000. Its accounts receivable were $2,200,000, and it
s sales for 20XX were $32,000,000. What was its days sales outstan
ding? Question 3. (TCO G) As of December 31, 2015, Michael Corp's
current assets were $2,000,000. Its current liabilities were $2,000,0
00. Its sales for 2015 were $50,000,000. As of December 31, 2016,
Michael Corp's current assets were $3,000,000. Its current liabilitie
s were $3,000,000. Its sales for 2016 were $65,000,000. Manageme
nt has asked you to comment on these numbers.

FIN 515 Week 1 Quiz

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

ure 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? Question 2 (TCO G) Barnes Corps tota
l assets at the end of last year were $415,000,000 and its net incom
e after taxes was $17,750,000. What was its return on total assets?
Question 3 (TCO G) Between December 31, 2016 and December 31,
2017, ROE at Bobcat Industries decreased even though sales increa
sed. Using the DuPont Identity, explain what else could have happ
ened to cause this.

FIN 515 Week 1-7 DQs

FIN 515 Week 1 DQ 1 Accounting Versus Finance FIN 515 Week 1 D

Q 2 Financial Analysis FIN 515 Week 2 DQ 1 TVM Pass-a-Problem FI
N 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 FIN 515
Week 4 DQ 1 Market Value of a Stock Versus DDM Value FIN 515 W
eek 4 DQ 2 Differences in YTM of Real Life Bonds FIN 515 Week 5 D
Q 1 Calculating WACC for a Real Firm FIN 515 Week 5 DQ 2 Finding
Stock Values for Real Stocks Using Beta and the SML FIN 515 Week
6 DQ 1 Examples of Real Agency Problems and How They Could Ha
ve Been Prevented FIN 515 Week 6 DQ 2 The Role of Financial Man
agers in Ethical Corporate Governance FIN 515 Week 7 DQ 1 Indust
ry Approaches to Working Capital Financing FIN 515 Week 7 DQ 2 Y
our Preference for Working Capital Management Policy

FIN 515 Week 2 DQ 1 TVM Pass-a-Problem

TVM Pass-a-Problem (graded) This week, the lecture provided so

me examples of TVM problem scenarios. For your first post, provid
e 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 pr
oblem posed by another student can be solved. Your professor ma
y provide an example.

FIN 515 Week 2 DQ 2 Assumptions of the TVM

Model

Assumptions of the TVM Model (graded) What are some of the ass
umptions behind the TVM calculations? How do these assumptions
limit our application of these calculations?

FIN 515 Week 2 Problem Set

3.Calculate the future value of $2000 in a. five years at an interest r

ate of 5% per year; b. ten years at an interest rate of 5% per year; a
nd c. five years at an interest rate of 10% per year. d. Why is the a
mount of interest earned in part (a) less than half the amount of in
terest earned in part (b)? 4.What is the present value of $10,000 re
ceived a. twelve years from today when the interest rate is 4% per
year; b. twenty years from today when the interest rate is 8% per y
ear; and c. six years from today when the interest rate is 2% per ye
ar? 5.Your brother has offered to give you either $5,000 today or $
10,000 in 10 years. If the interest rate is 7% per year, which option
is preferable? 6.Consider the following alternatives. i. $100 receive
d in 1 year ii. $200 received in 5 years iii. $300 received in 10 years
a. Rank the alternatives from most valuable to least valuable if the
interest rate is 10% per year.

FIN 515 Week 2 Quiz

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 t
erms of the trust dont allow you to receive any of the money until
you are 27. You are now 21. The fund is earning 7.7% per year. Ho
w much will the fund be worth when you are 27 and too old to enj
oy it?Ignore taxes. Show your work. If you use Excel, show the for
mula with the parameters, and the answer. If you use a formula, p
rovide the standard formula, the formula with terms substituted, a
nd the answer.

FIN 515 Week 3 Course Project 1 (3 Papers)

This Tutorial contains 3 Different Course Projects First Course Proje

ctThe purpose of this project is to help you develop skills not only i
n performing the calculations behind financial analysis but interpr
eting the numbers as well.You are to pick a company. You should p
ick one either from the industry in which you are currently working
or an industry in which you are interested. You could also pick a di
vision of a company. It is imperative to use that sufficient data abo
ut your company and that it is available. One way to do this is to pi
ck a publicly held company. If you pick a privately held company or
a division of a company, make sure that the data necessary to do a
significant financial analysis is available.If you use data that is not
publicly available, be sure to talk to your manager and to make abs
olutely sure that revealing that data is not a problem.You will also
need to find a standard against which to compare your findings. Th
is could be a different company in the same industry. This could al
so be the same company at a different time.

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

r
y

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

ndustry (graded) Describe a potential capital expenditure project fr
om the industry in which you now work or an industry in which yo
u are interested. What is the project? Describe and provide an appr
oximate value of the initial cash flow. Describe and provide an app
roximate value of the annual cash flows. Provide an estimation of t
he life of the project, as well as the exit costs.

FIN 515 Week 3 DQ 2 Capital Budgeting Terms and Considerations

Capital Budgeting Terms and Considerations Our textbook and lect

ure 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 cost
s, cannibalization or erosion, depreciation, and salvage value; as w
ell as others.

FIN 515 Week 3 Problem Set

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 o
f capital of this investment opportunity is 10%, what is its NPV? Sh
ould you undertake the investment opportunity? Calculate the IRR
and use it to determine the maximum deviation allowable in the co
st of capital estimate to leave the decision unchanged. 8. You are c
onsidering an investment in a clothes distributor. The company ne
eds $100,000 today and expects to repay you $120,000 in a year fr
om now. What is the IRR of this investment opportunity? Given the
riskiness of the investment opportunity, your cost of capital is 20%.

FIN 515 Week 3 Quiz

Company A has a beta of 2.77. Company B has a beta of .73. Comp

any 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 Compa
ny B? stock portfolio consists of only two stocks. You have $15,000
in Company A and $25,000 in Company B. Company A has an actua
l return of -8% and Company B has a return of 12%. What is the ret
urn on your portfolio? A company has a capital structure of 40% de
bt and 60% equity. The YTM on the companys bonds is 9%, and th
e companys effective tax rate is 40%. The CFO has estimated the c
ompanys WACC to be 9.96%. What is the companys cost of equity?

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

Market Value of a Stock Versus DDM Value (graded) Select a stock i

n which you are interested. Calculate its per share value using the
DDM or another method discussed in Chapter 9. Then find the curr
ent market value of a share of the stock. Compare that two. Can yo
u explain the similarity or difference?

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

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 lectur
e and the textbook discuss some factors that may lead to this diffe
rence.

FIN 515 Week 4 Midterm

Question 1. Question : (TCO G) The firm's asset turnover measures

Question 2. Question : (TCO G) If Moon Corporation has an increas
e in sales, which of the following would result in no change in its E
BIT margin? Question 3. Question : (TCO B) You plan on retiring in
20 years. You currently have $275,000 and think you will need $1,0
00,000 to retire. Assuming you dont deposit any additional money
into the account, what annual return will you need to earn to meet
this goal? Question 4. Question : (TCO B) You take out a 4 year car l
oan for $18,000.

FIN 515 Week 4 Problem Set

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 yie
ld to maturity is 9%. What is the current market piece of these bon
ds? The bonds will mature in 5 years. Bonds-2. A certain bond has
12 years left to maturity. Interest is paid annually at a coupon rate
of 10%. The bonds are currently selling for $850. What is their YTM
? Bonds-3. A certain bond pays a semiannual coupon rate at a 10%
annual rate. The bond has a par value of $1,000. There are eight ye
ars to maturity. The yield to maturity is 9%. What is the current pri
ce of the bond? Bonds-4. A particular corporate bond has a par val
ue of $1,000. Coupon payments are $40 and are paid twice a year.
Seven years are left on the life of the bond.The YTM is 9%. What is t
he price of the bond? Bond-5. A given bond has 5 years to maturity
.

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

Calculating WACC for a Real Firm (graded) The Weighted Average C

ost 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 whi
ch you are interested. Calculate or find the WACC for the two firms.
How do the WACCs compare? Are the WACCs what you would expe
ct? What causes the differences between the two firms' WACCs?

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

Finding Stock Values for Real Stocks Using Beta and the SML (grade
d) Our second discussion topic concerns the calculation of stock va
lues using the Capital Asset Pricing Model (CAPM). We will start wit
h a discussion of risk and work towards practical application of the
model. The textbook provides a list of betas for a selection of stock
s. 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.

FIN 515 Week 5 problem Set

Chapter 10 (pages 345348): 4. You bought a stock one year ago fo

r $50 per share and sold it today for $55 per share. It paid a $1 per
share dividend today. What was your realized return? How much o
f the return came from dividend yield and how much came from ca
pital gain? 20. Consider two local banks. Bank A has 100 loans outs
tanding, each for $1 million, that it expects will be repaid today. Ea
ch loan has a 5% probability of default, in which case the bank is n
ot repaid anything. The chance of default is independent across all
the loans. Bank B has only one loan of $100 million outstanding, w
hich it also expects will be repaid today. It also has a 5% probabilit
y of not being repaid. Explain the difference between the type of ri
sk each bank faces. Which bank faces less risk? Why?

FIN 515 Week 5 Quiz

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. Question 2. (TCO C) Your
stock portfolio consists of only two stocks. You have $30,000 in Co
mpany A and $35,000 in Company B. Company A has an actual ret
urn of -8% and Company B has a return of 12%. What is the return
on your portfolio? Show your work. Question 3. (TCO E) A company
has a capital structure of 40% debt and 60% equity. The YTM on th
e companys bonds is 9%, and the companys effective tax rate is 4
0%. The CFO has estimated the companys WACC to be 9.96%. Wha
t is the companys cost of equity? Show your work.

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

This Tutorial contains 2 Different Course Projects Second Project T

he purpose of this project is for you to have some practice working
with financial concepts in the real world. This will involve integratin
g some material from throughout the course. The project will also i
nvolve the development of your own approach to doing the work.
The project does not provide a step-by-step procedure for you to f
ollow. Your task is to determine the WACC for a given firm using wh
at you know about WACC as well as data you can find through rese
arch. Your deliverable is to be a brief report in which you state you
r determination of WACC, describe and justify how you determined
the number, and provide relevant information as to the sources of
your data. Assumptions As you recall, the formula for WACC is rWA
CC = (E/E+D) rE + D/(E+D) rD (1-TC) The formula for the required ret
urn on a given equity investment is ri= rf + i * (RMkt-rf) RMkt-rf is
the Market Risk Premium. For this project, you may assume the Ma
rket Risk Premium is 4% unless you can develop a better number. r
f is the risk free rate. The YTM on 10 year US Treasury securities is

FIN 515 Week 6 Problem Set

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

orations creates the need for a system of checks on manager beha
vior? 2. What are some examples of agency problems? 3.What are t
he advantages and disadvantages of the corporate organizational s
tructure? 4.What is the role of the board of directors in corporate g
overnance? 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 an
d disadvantages of the corporate organizational structure? Managi
ng Agency Conflict 4.Suppose Goodyear Tire and Rubber Company
is considering divesting one of its manufacturing plants. The plant i
s expected to generate free cash flows of $1.5 million per year, gro
wing at a rate of 2.5% per year.

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

Industry Approaches to Working Capital Financing (graded) Do som

e research on two firms in your industry or an industry in which yo
u are interested. Can you get an idea of their working capital mana
gement policies from publicly available information? How do the t
wo companies differ in their apparent working capital managemen
t policies? Which policy do you think is better and why?

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

Policy

Your Preference for Working Capital Management Policy (graded) C

onsider the company you work for or a company in which you are i
nterested. Also, do some research to find some current cost estima
tes for various means of financing working capital. What would be
your recommendation to the company for financing its working ca
pital needs? If the information is publicly available, or if you have a
ccess to it AND have permission to discuss it, how does your reco
mmendation compare what the firm is actually doing?

FIN 515 Week 7 Problem Set

1. Answer the following questions: a. What is the difference betwee

n a firms cash cycle and its operating cycle? 2. How will a firms cas
h cycle be affected if a firm increases its inventory, all else being eq
ual? 2. How will a firms cash cycle be affected if a firm begins to ta
ke the discounts offered by its suppliers, all else being equal? 4.The
Greek Connection had sales of $32 million in 2012, and a cost of go
ods sold of $20 million. A simplified balance sheet for the firm app
ears below: a- Calculate The Greek Connections net working capita
l in 2012. 2. greatest? When does it have surplus cash?

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