Week 1
Homework Assignment
Complete the following graded homework assignment in a Word document named “FIN515_Homework1_yourname." Show the details of your calculations/work in your answer to the problems.
· Mini Case (p. 45)
· Problems (p. 79)
o 2-6 Statement of Retained Earnings
o 2-7 Corporate Tax Liability (calculate tax liability and AT income)
o 2-9 Corporate After-Tax Yield (muni, corp, PS)
Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus "Due Dates for Assignments & Exams" for due date information.
Week 2
Homework Assignment
Complete the following graded homework assignment in a Word document named “FIN515_Homework2_yourname." Show the details of your calculation/work in your answer to the problems.
· Problems (p.112)
o 3-1 Days Sales Outstanding
o 3-2 Debt Ratio
o 3-3 Market/Book Ratio
o 3-4 PE Ratio
o 3-5 ROE
o 3-6 Du Pont Analysis
o 3-7 Current and Quick Ratios
· Problems (pp. 165-167)
o 4-1 FV of Single Amount
o 4-2 PV of Single Amount
o 4-6 FV of Ordinary Annuity
o 4-13 a PV of an Annuity
o 4-14 PV Uneven Cash Flow Stream
Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus "Due Dates for Assignments & Exams" for due date information.
Week 3
Homework Assignment
Complete the following graded homework assignment in a Word document named “FIN515_Homework3_yourname." Show the details of your calculation/work in your answer to the problems.
· Problems (pp. 210-211)
o 5-1 Bond Valuation with Annual Payments
o 5-2 YTM for Annual Payments
o 5-6 Maturity Risk Premium
o 5-7 Bond Valuation with Semi-Annual Payments
o 5-13 Yield to Maturity and Current Yield
· Questions (p. 257)
o 6-6 Beta and expected return
· Problems (pp. 258-259)
o 6-1 Portfolio Beta
o 6-2 Required Rate of Return Stock
o 6-7 Required Rate of Return
Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus "Due Dates for Assignments & Exams" for due date information.
Week 4
Homework Assignment
Complete the following graded homework assignment in a Word document named “FIN515_Homework4_yourname". Show the details of your calculation/work in your answer to the Problems.
· Problems (p. 297)
o 7-2 Constant Growth Valuation
o 7-4 Preferred Stock Valuation
o 7-5 Non-constant Growth Valuation
· Problems (p. 371)
o 9-2 After-Tax Cost of Debt
o 9-4 Cost of Preferred Stock with Flotation Costs
o 9-5 Cost of Equity - DCF
o 9-6 Cost of Equity - CAPM
o 9-7 WACC
Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus/"Due Dates for Assignments & Exams" for due date information.
Week 5
Homework Assignment
Complete the following graded homework assignment in a Word document named “FIN515_Homework5_yourname." Show the details of your calculation/work in your answer to the problems.
· Problems (p. 414)
o 10-8 NPV IRRs and MIRRs for Independent Projects
o 10-9 NPVs and IRRs for Mutually Exclusive Projects
· Problems (pp. 458-459)
o 11-2 Operating Cash Flow
o 11-3 Net Salvage Value
Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus/"Due Dates for Assignments & Exams" for due date information
Week 6
Homework Assignment
Complete the following graded homework assignment in a Word document named “FIN515_Homework6_yourname". Show the details of your calculation/work in your answer to the Problems.
· Problems (p. 503)
o 12-1 AFN Equation
· Problems (pp. 549-550)
o 13-2 Value of Operations of Constant Growth Firm
o 13-3 Horizon Value
o 13-4 EROIC and MVA of Constant Growth Firm
Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus/"Due Dates for Assignments & Exams" for due date information.
Week 7
Homework Assignment
Complete the following graded homework assignment in a Word document named “FIN515_Homework7_yourname". Show the details of your calculation/work in your answer to the Problems.
· Problems (pp. 681–682)
o 16-1 Cash Management
o 16-2 Receivables Investment
o 16-3 Cost of Trade Credit
o 16-4 Cost of Trade Credit
o 16-5 Accounts Payable
Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus/"Due Dates for Assignments & Exams" for due date information.
FIN515 Managerial Finance, Weeks 5 and 7 Course Project, A+ Tutorial
Week 5 - Project
Complete the Problem 11-7 "New-Project Analysis" (p. 460) and detail your work in the answer to each question in a Word document named "FIN515_W5_Project_yourname." The project is graded and worth 35 points.
Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use theDropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus/"Due Dates for Assignments & Exams" for due date information.
Week 7 - Project
Complete the Problem 13-10 Corporate Valuation on pages 551-552 in a Word document named "FIN515_W7_Project_yourname". Show the details of your calculation/work in your answer to the Problem.
Submit your project to the Dropbox located on the silver tab at the top of this page. For instructions on how to use theDropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial.
See Syllabus/"Due Dates for Assignments & Exams" for due date information.
FIN 515 Week 4 Midterm
1. (TCO A) Which of the following statements is CORRECT?
- It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required……………
2. (TCO G) Which of the following statements is CORRECT?
- In the statement of cash flows, a decrease in accounts receivable is reported as a use of cash………….
3. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, ………..
4. (TCO B) You want to buy a new sports car three years from now, and you plan to save $4,200 per year, beginning one year from today. You will ………..
5. (TCO B) You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received ………
6. (TCO B) Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in five equal installments at the end of each of the next five years. …….
7. (TCO D) A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT?..........
8. (TCO D) Garvin Enterprises’ bonds currently sell for $1,150. They have a six-year maturity, an annual coupon of $85, and a par value of $1,000. What is their current yield? ………..
9. (TCO C) Niendorf Corporation's five-year bonds yield 6.75%, and five-year T-bonds yield 4.80%. The real risk-free rate is r* = 2.75%, …………
10. (TCO C) Assume that to cool off the economy and decrease expectations for inflation, the Federal Reserve tightened the money supply, …………..
FIN 515 Week 6 Test
1. (TCO D) A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0%. What is the current…..(Points : 10)
2. (TCO D) If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $50, what is the stock’s expected dividend yield for the coming year? (Points : 10)
3. (TCO D) Rebello's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share.What is its effective annual (not nominal) rate….? (Points : 10)
4. (TCO E) Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting? (Points : 10)
5. (TCO E) Duval Inc. uses only equity capital, and it has two equally-sized divisions. Division A’s cost of capital is 10.0%, Division B’s cost is 14.0%, and......(Points : 10)
6. (TCO D) Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $27.50;……..……… (Points : 10)
7. (TCO F) Cornell Enterprises is considering a project that has the following cash flow and WACC data.What is the project's NPV? Note that a project's….….. (Points : 10)
8. (TCO F) Simkins Renovations Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can……….(Points : 10)
9. (TCO F) Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback?...................(Points : 10)
10. (TCO H) Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a three-year tax life, ….……
FIN 515 Week 8 Final Exam
Final Exam Page 1
1. (TCO A) Which of the following does NOT always increase a company's market value? (Points : 5)
2. (TCO F) Which of the following statements is correct? (Points : 5)
3. (TCO D) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product…….
4. (TCO G) Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March…………
Final Exam Page 2
1. (TCO H) Zervos Inc. had the following data for 2008 (in millions). The new CFO believes (a) that an improved inventory management system ……
2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.)
3. (TCO E) You were hired as a consultant to the Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity…….
4. (TCO B) A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs ……
5. (TCO G) Based on the corporate valuation model, Hunsader's value of operations is $300 million. The balance sheet shows $20 million ……
6. TCO G) Clayton Industries is planning its operations for next year, and Ronnie Clayton, the CEO, wants you to forecast the firm's additional ……..
Page 1
1. (TCO A) Which of the following does NOT always increase a company's market value? (Points : 5)
2. (TCO F) Which of the following statements is correct? (Points : 5)
3. (TCO D) The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years……….
4. (TCO G) The ABC Corporation's budgeted monthly sales are $4,000. In the first month, 40% of its customers pay and take the 3% discount……………..
5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's……..
Page 2
1. (TCO H) Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing……..
2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.)
3 (TCO E) Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information………….
4. (TCO B) A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs …….
5. (TCO G) Based on the corporate valuation model, the value of a company's operations is $900 million. Its balance sheet shows $70 million in……..
Week 8 Final Week - Final Exam Page 1
1. (TCO A) Which of the following does NOT always increase a company's market value? (Points : 5)…….
2. (TCO F) Which of the following statements is correct? (Points : 5)
For a project with normal cash flows, any change in the WACC will change both the NPV and the IRR……..
3. (TCO D) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product………..
4. (TCO G) The ABC Corporation's budgeted monthly sales are $4,000. In the first month, 40% of its customers pay and take the 3% discount………..
5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN)…….
Week 8 Final Week - Final Exam Page 2
1. (TCO H) The Dewey Corporation has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle?
2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on ……
3. (TCO E) You were hired as a consultant to the Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. …….
4. (TCO B) Leak Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2……….
5. (TCO G) Based on the corporate valuation model, the value of a company's operations is $1,200 million.The company's balance sheet shows $80 million………..