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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 Course Pr

oject (2 Sets)

FIN 515 FINAL EXAM (ALL 3 SETS)

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

FIN 515 FINAL EXAM SET 1

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

tion has the greatest revenue in total? (Points : 5)a. Sole proprietorship
b. C corporationc. S corporationd. Limited partnership 1.1) Which of th
e following is not a step in the WACC valuation method?A) Compute the
value of the investment, including the tax benefit of leverage, by discou
nting the free cash flow of the investment using the WACC.B) Compute
the weighted average cost of capital.C) Determine the free cash flow of
the investment.D) Adjust the WACC for the firm's current debt/equity r
atio. 1. (TCO H) Zervos Inc. had the following data for 2008 (in millions).

FIN 515 FINAL EXAM SET 2

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

llowing types of business organization except? Question 2.2. (TCO A) So
le 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? Question 4.4. (TCO B) In a TVM calculation, if inco
ming cash flows are positive, outgoing cash flows must be Question 5.5
. (TCO G) If net income, total assets, and book value of equity stayed th
e 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 th
e rest of time. The return on equity for similar stocks is 14%. What is P
0? Question 7.7.

FIN 515 FINAL EXAM SET 3

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

tion 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) one person. one or two peo
ple, but if there are two owners, they must be married to each other. u
p to 100 owners. up to 64 owners. Question 3.3. (TCO B) Which of the f
ollowing would cause the present value of an annuity to decrease? (Poi
nts : 5) Reducing the number of payments. Increasing the number of p
ayments. Decreasing the interest rate. Decreasing the liquidity of the p
ayments. Question 4.4.

FIN 515 WEEK 1 DQ 1 ACCOUNTING VERSUS FIN

ANCE

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

cial managers is based on numbers that are different from what would
seem to the corresponding numbers presented in the financial statem
ents. This difference is not due to any kind of cooking the books or oth
er attempts to mislead anyone. One example is the use of market valu
e 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 FINANCIAL ANA

LYSIS
Financial Analysis (graded) In this discussion, we will be working with t

he 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 pos
t, locate the financial statements for two firms in one industry. Calculat
e all four terms of the DuPont Identity and present the results but do n
ot analyze the results. For an additional post, analyze the results that a
nother student has posted. If you were the appropriate financial mana
ger of one of the firms that you analyzed, what would be your observat
ions and recommendations?

FIN 515 WEEK 1 PROBLEM SET

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

between a corporation and all other organizational forms? 1-2. What d
oes the phrase limited liability mean in a corporate context? 1-3. Which
organizational forms give their owners limited liability? 1-4. What are t
he main advantages and disadvantages of organizing a firm as a corpor
ation? 1-5. Explain the difference between an S corporation and a C cor
poration. 1-6. You are a shareholder in a C corporation. The corporatio
n earns $2 per share before taxes. Once it has paid taxes it will distribu
te the rest of its earnings to you as a dividend. The corporate tax rate i
s 40% and the personal tax rate on (both dividend and non-dividend) i
ncome is 30%. How much is left for you after all taxes are paid? 1-7. Re
peat Problem 6 assuming the corporation is an S corporation. Chapter
2 Introduction to Financial Statement Analysis 2-8. In early 2009, Gene
ral Electric (GE) had 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 when they are low
er. 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 pre
ferred, OR pick a ratio for which a higher number typically would be prefe
rred and describe a situation in which a lower number for that ratio woul
d be preferred. Question 2. (TCO G) As of December 31, 20XX, David Cor
p's accounts payable were $4,000,000. Its accounts receivable were $2,20
0,000, and its sales for 20XX were $32,000,000. What was its days sales ou
tstanding? Question 3. (TCO G) As of December 31, 2015, Michael Corp's c
urrent assets were $2,000,000. Its current liabilities were $2,000,000. Its s
ales for 2015 were $50,000,000. As of December 31, 2016, Michael Corp's
current assets were $3,000,000. Its current liabilities were $3,000,000. Its
sales for 2016 were $65,000,000. Management 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 measure

of how a company is doing, comparison of current results with historic
al results or comparison of current results with the current results of a
nother company? Question 2 (TCO G) Barnes Corps total assets at the
end of last year were $415,000,000 and its net income after taxes was
$17,750,000. What was its return on total assets? Question 3 (TCO G) B
etween December 31, 2016 and December 31, 2017, ROE at Bobcat Ind
ustries decreased even though sales increased. Using the DuPont Ident
ity, explain what else could have happened to cause this.

FIN 515 WEEK 1-7 DQS

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 W
eek 2 DQ 2 Assumptions of the TVM Model FIN 515 Week 3 DQ 1 Exam
ples of Capital Expenditure From Your Industry FIN 515 Week 3 DQ 2 C
apital Budgeting Terms and Considerations FIN 515 Week 4 DQ 1 Mark
et Value of a Stock Versus DDM Value FIN 515 Week 4 DQ 2 Differences
in YTM of Real Life Bonds FIN 515 Week 5 DQ 1 Calculating WACC for a
Real Firm FIN 515 Week 5 DQ 2 Finding Stock Values for Real Stocks Usi
ng Beta and the SML FIN 515 Week 6 DQ 1 Examples of Real Agency Pr
oblems and How They Could Have Been Prevented FIN 515 Week 6 DQ
2 The Role of Financial Managers in Ethical Corporate Governance FIN
515 Week 7 DQ 1 Industry Approaches to Working Capital Financing FI
N 515 Week 7 DQ 2 Your 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 some e

xamples 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 exampl
e.

FIN 515 WEEK 2 DQ 2 ASSUMPTIONS OF THE TV

M MODEL

Assumptions of the TVM Model (graded) What are some of the assump
tions behind the TVM calculations? How do these assumptions limit ou
r application of these calculations?

FIN 515 WEEK 2 PROBLEM SET

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. fiv
e years at an interest rate of 10% per year. d. Why is the amount of int
erest earned in part (a) less than half the amount of interest earned in
part (b)? 4.What is the present value of $10,000 received a. twelve year
s from today when the interest rate is 4% per year; b. twenty years fro
m today when the interest rate is 8% per year; and c. six years from to
day when the interest rate is 2% per year? 5.Your brother has offered t
o give you either $5,000 today or $10,000 in 10 years. If the interest rat
e is 7% per year, which option is preferable? 6.Consider the following a
lternatives. i. $100 received in 1 year ii. $200 received in 5 years iii. $30
0 received in 10 years a. Rank the alternatives from most valuable to le
ast 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. You
r 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?Ignore taxes. Sh
ow your work. If you use Excel, show the formula with the parameters,
and the answer. If you use a formula, provide the standard formula, th
e formula with terms substituted, and the answer.

FIN 515 WEEK 3 COURSE PROJECT 1 (3 PAPERS)

This Tutorial contains 3 Different Course Projects First Course ProjectThe

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.You are to pick a company. You should pick one either from the indus
try in which you are currently working or an industry in which you are int
erested. You could also pick a division of a company. It is imperative to us
e that sufficient data about your company and that it is available. One wa
y to do this is to pick a publicly held company. If you pick a privately held
company or a division of a company, make sure that the data necessary t
o 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 absolutely
sure that revealing that data is not a problem.You will also need to find a s
tandard against which to compare your findings. This could be a different
company in the same industry. This could also be the same company at a
different time.

FIN 515 WEEK 3 DQ 1 EXAMPLES OF CAPITAL EXPENDITURE FROM YOUR IND

USTR
Y

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

try (graded) Describe a potential capital expenditure project from the i
ndustry in which you now work or an industry in which you are interes
ted. 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 w
ell as the exit costs.

FIN 515 WEEK 3 DQ 2 CAPITAL BUDGETING TERMS AND CONSIDERATIONS

Capital Budgeting Terms and Considerations Our textbook and lecture

discuss some considerations that should be taken into account when d
oing capital budgeting. How will these considerations affect the project
you described in the other topic? Incremental earnings, interest expen
ses, taxes, opportunity costs, externalities, sunk costs, cannibalization
or erosion, depreciation, and salvage value; as well 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 of capital
of this investment opportunity is 10%, what is its NPV? Should you und
ertake the investment opportunity? Calculate the IRR and use it to dete
rmine the maximum deviation allowable in the cost of capital estimate
to leave the decision unchanged. 8. You are considering an investment
in a clothes distributor. The company needs $100,000 today and expec
ts to repay you $120,000 in a year from now. What is the IRR of this inv
estment opportunity? Given the riskiness of the investment opportunit
y, 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. Company

C has a beta of .90. The risk free rate is 6% and the market risk premiu
m is 4%. What is the expected return of investing in Company B? stock
portfolio consists of only two stocks. You have $15,000 in Company A a
nd $25,000 in Company B. Company A has an actual return of -8% and
Company B has a return of 12%. What is the return on your portfolio?
A company has a capital structure of 40% debt and 60% equity. The YT
M on the companys bonds is 9%, and the companys effective tax rate
is 40%. The CFO has estimated the companys 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 in wh

ich you are interested. Calculate its per share value using the DDM or a
nother method discussed in Chapter 9. Then find the current market v
alue of a share of the stock. Compare that two. Can you explain the si
milarity 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, prob

ably on the Web, and find some bonds with differing yields to maturity
(YTM). How do you explain the difference? Both the lecture and the tex
tbook discuss some factors that may lead to this difference.

FIN 515 WEEK 4 MIDTERM

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

stion 2. Question : (TCO G) If Moon Corporation has an increase in sale
s, which of the following would result in no change in its EBIT margin?
Question 3. Question : (TCO B) You plan on retiring in 20 years. You cur
rently have $275,000 and think you will need $1,000,000 to retire. Assu
ming you dont deposit any additional money into the account, what a
nnual return will you need to earn to meet this goal? Question 4. Quest
ion : (TCO B) You take out a 4 year car loan for $18,000.

FIN 515 WEEK 4 PROBLEM SET

Bonds-1. Interest on a certain issue of bonds is paid annually with a co

upon rate of 8%. The bonds have a par value of $1,000. The yield to ma
turity is 9%. What is the current market piece of these bonds? The bon
ds 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 bo
nd pays a semiannual coupon rate at a 10% annual rate. The bond has
a par value of $1,000. There are eight years to maturity. The yield to m
aturity is 9%. What is the current price of the bond? Bonds-4. A particul
ar corporate bond has a par value of $1,000. Coupon payments are $4
0 and are paid twice a year. Seven years are left on the life of the bond.
The YTM is 9%. What is the price of the bond? Bond-5. A given bond ha
s 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 Cost o
f 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 whi
ch you currently work or it may be an industry in which you are interes
ted. Calculate or find the WACC for the two firms. How do the WACCs c
ompare? Are the WACCs what you would expect? What causes the diffe
rences between the two firms' WACCs?

FIN 515 WEEK 5 DQ 2 FINDING STOCK VALUES FOR REAL STOCKS USING BET
A AND THE SML

Finding Stock Values for Real Stocks Using Beta and the SML (graded) O
ur second discussion topic concerns the calculation of stock values usi
ng the Capital Asset Pricing Model (CAPM). We will start with a discussi
on of risk and work towards practical application of the model. The tex
tbook provides a list of betas for a selection of stocks. Choose a few fir
ms from that list and discuss whether the betas are what you would ex
pect. 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 for $5
0 per share and sold it today for $55 per share. It paid a $1 per share d
ividend today. What was your realized return? How much of the return
came from dividend yield and how much came from capital gain? 20. C
onsider two local banks. Bank A has 100 loans outstanding, each for $1
million, that it expects will be repaid today. Each loan has a 5% probabi
lity of default, in which case the bank is not repaid anything. The chanc
e of default is independent across all the loans. Bank B has only one lo
an of $100 million outstanding, which it also expects will be repaid tod
ay. It also has a 5% probability of not being repaid. Explain the differen
ce between the type of risk 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 be

ta 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 Company A and $35,0
00 in Company B. Company A has an actual return of -8% and Compan
y B has a return of 12%. What is the return on your portfolio? Show yo
ur work. Question 3. (TCO E) A company has a capital structure of 40%
debt and 60% equity. The YTM on the companys bonds is 9%, and the
companys effective tax rate is 40%. The CFO has estimated the compa
nys WACC to be 9.96%. What is the companys cost of equity? Show yo
ur work.

FIN 515 WEEK 6 COURSE PROJECT 2 (2 DIFFERENT PROJECTS)

This Tutorial contains 2 Different Course Projects Second Project The purpose
of this project is for you to have some practice working with financial concept
s in the real world. This will involve integrating some material from througho
ut the course. The project will also involve the development of your own appr
oach to doing the work. The project does not provide a step-by-step procedur
e for you to follow. Your task is to determine the WACC for a given firm using
what you know about WACC as well as data you can find through research. Yo
ur deliverable is to be a brief report in which you state your determination of
WACC, describe and justify how you determined the number, and provide rel
evant information as to the sources of your data. Assumptions As you recall, t
he formula for WACC is rWACC = (E/E+D) rE + D/(E+D) rD (1-TC) The formula fo
r the required return on a given equity investment is ri= rf + i * (RMkt-rf) RM
kt-rf is the Market Risk Premium. For this project, you may assume the Marke
t Risk Premium is 4% unless you can develop a better number. rf is the risk fr
ee rate. The YTM on 10 year US Treasury securities is a good approximation.

FIN 515 WEEK 6 PROBLEM SET

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

ons creates the need for a system of checks on manager behavior? 2.
What are some examples of agency problems? 3.What are the advanta
ges and disadvantages of the corporate organizational structure? 4.Wh
at is the role of the board of directors in corporate governance? 1.What
inherent characteristic of corporations creates the need for a system o
f checks on manager behavior? 2.What are some examples of agency p
roblems? 3.What are the advantages and disadvantages of the corporat
e organizational structure? Managing Agency Conflict 4.Suppose Goody
ear Tire and Rubber Company is considering divesting one of its manuf
acturing plants. The plant is expected to generate free cash flows of $1.
5 million per year, growing at a rate of 2.5% per year.

FIN 515 WEEK 7 DQ 1 INDUSTRY APPROACHES TO WORKING CAPITAL FINAN

CING

Industry Approaches to Working Capital Financing (graded) Do some re

search on two firms in your industry or an industry in which you are in
terested. Can you get an idea of their working capital management poli
cies from publicly available information? How do the two companies di
ffer in their apparent working capital management policies? Which poli
cy do you think is better and why?

FIN 515 WEEK 7 DQ 2 YOUR PREFERENCE FOR WORKING CAPITAL MANAGEME

NT POLICY

Your Preference for Working Capital Management Policy (graded) Consi

der the company you work for or a company in which you are intereste
d. Also, do some research to find some current cost estimates for vario
us means of financing working capital. What would be your recommen
dation to the company for financing its working capital needs? If the in
formation is publicly available, or if you have access to it AND have per
mission to discuss it, how does your recommendation compare what t
he firm is actually doing?

FIN 515 WEEK 7 PROBLEM SET

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? 2. Ho
w will a firms cash cycle be affected if a firm begins to take the discoun
ts offered by its suppliers, all else being equal? 4.The Greek Connection
had sales of $32 million in 2012, and a cost of goods sold of $20 millio
n. A simplified balance sheet for the firm appears below: a- Calculate T
he Greek Connections net working capital in 2012. 2. greatest? When d
oes it have surplus cash?

FIN 515 MART EXPECT SUCCESS /FIN

515MARTDOTCOM
FOR MORE CLASSES VISIT
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