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3) Refers to situations wherein the agent can take unseen actions for p
ersonal benefit even though such actions are costly to the principal.
4) The annual report refers to
FIN 571 Week 1 Connect Problems (Math & Accounting Review) 1. Func
tions Excel will make your life as a finance student much easier. This se
ction will show how to use various functions in Excel. Once you unders
tand the how and why of a particular financial equation, you can make
1. Which Excel cell entry will calculate the square root of 165? 2. Which
statements about Excels FV function are correct?
FIN 571 Week 1 Connect Problems (Week 1 Problem Set) 1.If a firm is c
urrently profitable, then: 2.Short-term finance deals with: 3.A stakehol
der is any person or entity: 4.Which one of these best fits the descripti
on of an agency cost? 5.The primary goal of financial management is to
: 6.Which one of the following business types is best suited to raising la
rge amounts of capital? 7.Accounting profits and cash flows are genera
lly: 8.Your credit card company charges you 1.00 percent per month. W
hat is the annual percentage rate on your account?
What is ethics? If you follow all applicable rules and regulations, are yo
u an ethical person?
Assume that interest rates have increased substantially. Would this ten
d to increase or decrease
the market value (meaning the price an investor in the firm's paper is
willing to pay) of a firms liabilities (relative to the book value of liabiliti
es)?
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Multiple Choice Question 42
a) sole proprietorship
b) partnership
c) corporation
d) a and b
FIN 571 Week 2 Connect Problems 1.Sankey, Inc., has current assets of
$4,230, net fixed assets of $25,700, current liabilities of $3,500, and lon
g-term debt of $14,400. What is the value of the shareholders' equity a
ccount for this firm? 2.Which one of the following assets is generally th
e most liquid? 3.Which one of the following accounts is included in stoc
kholders' equity? 4.It is easier to evaluate a firm using its financial stat
ements when the firm: 5.Which one of these accounts is classified as a
current asset on the balance sheet?
The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the E
nron scandal and other instances of accounting fraud. This act was pas
sed to strengthen the role of the Securities and Exchange Commission
(SEC). Research a case of corporate financial abuse related to the Sarba
nes-Oxley Act of 2002 and apply this to your current work or desired pl
ace of employment. Create a 1,400-word analysis of the application of
SOX in which you include the following: Discuss the mistakes made by t
he company and their leadership.
Which one of the following statements about trend analysis is NOT cor
rect?
Week 6
Homework
Complete the following problems. You should do this work in excel. A s
et of ungraded practice problems similar to the homework is provided
in the week six material to help you do this assignment.
Please post your answers in the classroom discussion section underne
ath the week six assignment.
1.Net Present Value: Johnson Complex Fabrications is a metal parts ma
nufacturing company. It has developed a new process for producing ex
truded aluminum tubing. The process requires $1,968,450 initial invest
ment. It expected to have a life of five years and would produce net ca
sh inflows for each of the next five years: year 1 $512,496; year 2 $242,
637; year 3 $814,558; year 4 $887,225 and year 5 $712,642.
FIN 571 Week 3 Connect Problems If the Garnett Corp. has a 15 percen
t ROE and a 25 percent payout ratio, what is its sustainable growth rate
? 1.If the Hunter Corp. has an ROE of 15 and a payout ratio of 18 perce
nt, what is its sustainable growth rate 2.The most recent financial state
ments for Williamson, Inc., are shown here Assets and costs are propo
rtional to sales. Debt and equity are not. No dividends are paid. Next y
ears sales are projected to be $8,418. What is the external financing n
eeded? 3.The maximum rate at which a firm can grow while maintainin
g a constant debt-equity ratio is best defined by its: 4.Financial plannin
g, when properly executed:
Optical Supply Company offers credit terms of 2/10, net 60. If Optical S
upply is considering a change in its credit terms to one of those indicat
ed, explain whether the change should increase or decrease sales. (a)
2/10, net 30, (b) net 60, (c) 3/15, net 60, (d) 2/10, net 30, 30 extra
FIN 571 Week 4 Connect Problems 1.Even though most corporate bond
s in the United States make coupon payments semiannually, bonds iss
ued elsewhere often have annual coupon payments. Suppose a Germa
n company issues a bond with a par value of 1,000, 20 years to maturi
ty, and a coupon rate of 7 percent paid annually.If the yield to maturity
is 8.1 percent, what is the current price of the bond? 2.Microhard has i
ssued a bond with the following characteristics: Calculate the price of t
his bond if the YTM is : 3.Yan Yan Corp.
A firm uses a single discount rate to compute the NPV of all its potenti
al capital budgeting projects, even though the projects have a wide ran
ge of nondiversifiable risk. The firm then undertakes all those projects
that appear to have positive NPVs. Briefly explain why such a firm woul
d tend to become riskier over time.
Please post the answers (and show your work) in the assignment
s section by midnight the last day of the week assigned.
Calculate the future value of 1,535 invested today for 8 years at 6 perc
ent.
(5 points)
What is the total present value of the following cash stream, discounte
d at 8 percent? (5 points)
Problem 5.17
Your finance text book sold 53,250 copies in its first year. The publishin
g company expects the sales to grow at a rate of 20 percent for the nex
t three years, and by 10 percent in the fourth year. Calculate the total n
umber of copies that the publisher expects to sell in year 3 and 4. (If yo
u solve this problem with algebra round intermediate calculations to 6
decimal places, in all cases round your final answers to the nearest wh
ole number.)
Resources:
Harvard Business Publishing: Working Capital Simulation: Managing Gr
owth Assignment
Ch. 1 - 21 ofFundamentals of Corporate Finance
WileyPLUS Assignments
All additional resources from each week
Reviewthe following scenario: