FIN 515 NERD Inspiring Minds

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FIN 515 NERD Inspiring Minds

FIN 515 Course Project 1 and 2

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This Tutorial contains

Week 3 Course Project (3 Sets)
Week 6 Course Project (2 Sets)

FIN 515 Entire Course

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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)

FIN 515 Final Exam (all 3 Sets)

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FIN 515 Final Exam Set 1



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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?


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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?


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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)

FIN 515 Week 1 DQ 1 Accounting Versus Fi

nance
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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.

FIN 515 Week 1 DQ 2 Financial Analysis

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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?

FIN 515 Week 1 Problem Set

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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?

FIN 515 Week 1 Quiz (New)

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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.

FIN 515 Week 1 Quiz

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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?

FIN 515 Week 1-7 DQs

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FIN 515 Week 1 DQ

FIN 515 Week 1 DQ
FIN 515 Week 2 DQ
FIN 515 Week 2 DQ
FIN 515 Week 3 DQ
From Your Industry
FIN 515 Week 3 DQ
Considerations
1
2
1
2
1
Accounting Versus Finance

Financial Analysis
TVM Pass-a-Problem
Assumptions of the TVM Model
Examples of Capital Expenditure
2 Capital Budgeting Terms and

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

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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.

FIN 515 Week 2 DQ 2 Assumptions of the T

VM 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?


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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.

FIN 515 Week 2 Quiz

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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 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. How much will the fund be
worth when you are 27 and too old to enjoy it?

FIN 515 Week 3 Course Project 1 (3 Papers)

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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.

FIN 515 Week 3 DQ 1 Examples of Capital Expen

diture 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.

FIN 515 Week 3 DQ 2 Capital Budgeting Ter

ms 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.


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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.

FIN 515 Week 3 Quiz

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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?

FIN 515 Week 4 DQ 1 Market Value of a Sto

ck 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?

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.

FIN 515 Week 4 Midterm

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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?


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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.

FIN 515 Week 5 DQ 1 Calculating WACC for a Rea

l 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?

FIN 515 Week 5 DQ 2 Finding Stock Values for R

eal 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

FIN 515 Week 5 problem Set

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Chapter 10 (pages 345348):

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?

FIN 515 Week 5 Quiz

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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.

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-

FIN 515 Week 6 DQ 1 Examples of Real Age

ncy Problems and How They Could Have Bee
n 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?

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?


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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?

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

FIN 515 Week 7 DQ 2 Your Preference for W

orking 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?


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Chapter 26 (page 903):

1. Answer the following questions:
a. What is the difference between a firms cash cycle
and its operating cycle?
2. How will a firms cash cycle be affected if a firm
increases its inventory, all else being equal?


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