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FIN 370 Cash Flow Problem Sets (4-5,4-7,4-8,4-11,4-13)

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4-5 Multiyear Future Value How much would be in your
savings account in 11 years after depositing $150
today if the bank pays 8 percent per year? (LG4-3) 4-7
Compounding with Different Interest Rates A deposit of
$350 earns the following interest rates: a. 8 percent in
the first year. b. 6 percent in the second year. c. 5.5
percent in the third year. What would be the third year
future value? 4-8 Compounding with Different Interest
Rates A deposit of $750 earns interest rates of 9
percent in the first year and 12 percent in the second
year. What would be the second year future value?
(LG4-3) 4-11 Present Value What is the present value of
a $1,500 payment made in nine years when the
discount rate is 8 percent? (LG4-4) 4-13 Present Value
with Different Discount Rates Compute the present
value of $1,000 paid in three years using the following
discount rates: 6 percent in the first year, 7 percent in
the second year, and 8 percent in the third year. (LG4-
4)
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FIN 370 Final Exam Guide (New 2017)

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Which one of the following statements is correct concerning the cash
cycle? Accepting a suppliers discount for early payment decreases
the cash cycle. Increasing the accounts payable period increases the
cash cycle. The longer the cash cycle, the more likely a firm will need
external financing. The cash cycle can exceed the operating cycle if
the payables period is equal to zero. Offering early payment discounts
to customers will tend to increase the cash cycle. Precise Machinery
is analyzing a proposed project. The company expects to sell 2100
units give or take 5 percent. The expected variable cost per unit is
$260 and the expected fixed costs are $589,000. Cost estimates are
considered accurate within a plus or minus 4 percent range. The
depreciation expense is $129,000. The sales price is estimated at
$750 per unit, give or take 2 percent. The tax rate is 35 percent. The
company is conducting a sensitivity analysis on the sales price using
a sales price estimate of $755. What is the operating cash flow based
on this analysis? $86,675 $354,874 $368,015 $293,089 $337,975 You
are doing some comparison shopping. Five stores offer the product
you want at basically the same price but with differing credit terms.
Which one of these terms is best-suited to you if you plan to forgo the
discount? 2/10, net 30 2/5, net 30 2/5, net 20 1/10, net 45 1/5, net 15
The plowback ratio is: The dollar increase in net income divided by
the dollar increase in sales. Equal to net income divided by the
change in total equity. Equal to one minus the retention ratio. The
change in retained earnings divided by the dividends paid. The
percentage of net income available to the firm to fund future growth.
Which one of the following is the financial statement that summarizes
a firms revenue and expenses over a period of time? Statement of
cash flows Market value report Tax reconciliation statement Balance
sheet Income statement Kellys Corner Bakery purchased a lot in Oil
City six years ago at a cost of $278000. Today, that lot has a market
value of $264,000. At the time of the purchase, the company spent
$6,000 to level the lot and another $8,000 to install storm drains. The
company now wants to build a new facility on that site. The building
cost is estimated at $1.03 million. What amount should be used as the
initial cash flow for this project? -$1,294,000 -$1,322,000 -
$1,045,000 -$1,308,000 -$1,308,000 Webster United is paying a
dividend of $1.32 per share today. There are 350,000 shares
outstanding with a market price of $22.40 per share prior to the
dividend payment. Ignore taxes. Before the dividend, the company
had earnings per share of $1.68. As a result of this dividend, the:
Retained earnings will decrease by $350,000. Earnings per share will
increase to $3. Total firm value will not change. Price-earnings ratio
will be 12.55. Retained earnings will increase by $462,000. The
common stock of Dayton Repair sells for $43.19 a share. The stock is
expected to pay $2.28 per share next year when the annual dividend
is distributed. The firm has established a pattern of increasing its
dividends by 2.15 percent annually and expects to continue doing so.
What is the market rate of return on this stock? 7.67 percent 7.59
percent 7.43 percent 7.14 percent 7.28 percent Which one of the
following should earn the most risk premium based on CAPM?
Diversified portfolio with returns similar to the overall market. Stock
with a beta of 1.38. Portfolio with a beta of 1.01. U.S. Treasury bill.
Stock with a beta of 0.74. Which one of these actions will increase the
operating cycle? Assume all else held constant. Decreasing the
receivables turnover rate. Decreasing the payables period.
Decreasing the average inventory level. Increasing the payables
period. Increasing the inventory turnover rate. Oil Wells offers 6.5
percent coupon bonds with semiannual payments and a yield to
maturity of 6.94 percent. The bonds mature in seven years. What is
the market price per bond if the face value is $1,000? $902.60
$996.48 $913.48 $989.70 $975.93 Three Corners Markets paid an
annual dividend of $1.37 a share last month. Today, the company
announced that future dividends will be increasing by 2.8 percent
annually. If you require a return of 11.6 percent, how much are you
willing to pay to purchase one share of this stock today? $16.67
$16.00 $18.23 $17.68 $15.57 Which one of the following is a source
of cash? Granting credit to a customer Purchase of inventory
Acquisition of debt Payment to a supplier Repurchase of common
stock Nadines Home Fashions has $2.12 million in net working
capital. The firm has fixed assets with a book value of $31.64 million
and a market value of $33.9 million. The firm has no long-term debt.
The Home Centre is buying Nadines for $37.5 million in cash. The
acquisition will be recorded using the purchase accounting method.
What is the amount of goodwill that The Home Centre will record on
its balance sheet as a result of this acquisition? $5.86 million $3.34
million $4.14 million $1.48 million $3.74 million Chelsea Fashions is
expected to pay an annual dividend of $1.10 a share next year. The
market price of the stock is $21.80 and the growth rate is 4.5 percent.
What is the firms cost of equity? 9.55 percent 10.54 percent 9.24
percent 7.91 percent 9.77 percent Operating leverage is the degree of
dependence a firm places on its: Depreciation tax shield. Variable
costs. Fixed costs. Operating cash flows. Sales. Phillips Equipment
has 75,000 bonds outstanding that are selling at par. Bonds with
similar characteristics are yielding 7.5 percent. The company also
has 750,000 shares of 6 percent preferred stock and 2.5 million shares
of common stock outstanding. The preferred stock sells for $64 a
share. The common stock has a beta of 1.21 and sells for $44 a share.
The U.S. Treasury bill is yielding 2.3 percent and the return on the
market is 11.2 percent. The corporate tax rate is 34 percent. What is
the firms weighted average cost of capital? 11.56 percent 11.30
percent 11.18 percent 10.64 percent 9.69 percent Andy deposited
$3,000 this morning into an account that pays 5 percent interest,
compounded annually. Barb also deposited $3,000 this morning into
an account that pays 5 percent interest, compounded annually. Andy
will withdraw his interest earnings and spend it as soon as possible.
Barb will reinvest her interest earnings into her account. Given this,
which one of the following statements is true? Barb will earn more
interest the second year than Andy. Barb will earn more interest the
first year than Andy will. Andy will earn compound interest. Andy will
earn more interest in year three than Barb will. After five years, Andy
and Barb will both have earned the same amount of interest. When
utilizing the percentage of sales approach, managers: 1. Estimate
company sales based on a desired level of net income and the current
profit margin. 2. Consider only those assets that vary directly with
sales. III. Consider the current production capacity level. 1. Can
project both net income and net cash flows. III and IV only I, III, and
IV only II and III only II, III, and IV only I and II only You are
comparing two investment options that each pay 6 percent interest
compounded annually. Both options will provide you with $12000 of
income. Option A pays $2,000 the first year followed by two annual
payments of $5,000 each. Option B pays three annual payments of
$4,000 each. Which one of the following statements is correct given
these two investment options? Assume a positive discount rate.
Option B is a perpetuity. Option B has a higher present value at time
zero. Both options are of equal value since they both provide $12,000
of income. Option A has the higher future value at the end of year
three. Option A is an annuity. The condition stating that the interest
rate differential between two countries is equal to the percentage
difference between the forward exchange rate and the spot exchange
rate is called: Uncovered interest rate parity. The unbiased forward
rates condition. Purchasing power parity. Interest rate parity. The
international Fisher effect. The Dry Dock is considering a project
with an initial cost of $118400. The projects cash inflows for years 1
through 3 are $37200, $54600 and $46900, respectively. What is the
IRR of this project? 8.42 percent 7.48 percent 8.56 percent 8.04
percent 8.22 percent The 7 percent bonds issued by Modern Kitchens
pay interest semiannually mature in eight years and have a $1000
face value. Currently, the bonds sell for $1,032. What is the yield to
maturity? 7.20 percent 6.87 percent 6.48 percent 6.92 percent 6.08
percent Al invested $7200 in an account that pays 4 percent simple
interest. How much money will he have at the end of five years?
$8,678 $8,710 $8,299 $8,056 $8,640 All of the following represent
potential gains from an acquisition except the: Use of surplus funds.
Tax loss carryovers acquired in the acquisition. Obtainment of a
beachhead. Diseconomies of scale related to increased labor demand.
Lower costs per unit realized. Fresno Salads has current sales of
$6000 and a profit margin of 6.5 percent. The firm estimates that
sales will increase by 4 percent next year and that all costs will vary
in direct relationship to sales. What is the pro forma net income?
$438.70 $327.18 $405.60 $303.33 $441.10 A news flash just
appeared that caused about a dozen stocks to suddenly drop in value
by 20 percent. What type of risk does this news flash best represent?
Market Unsystematic Portfolio Total Non-diversifiable Which one of
the following terms is defined as the mixture of a firms debt and
equity financing? Cash management Cost analysis Working Capital
Management Capital Structure Capital budgeting George and Pat
just made an agreement to exchange currencies based on todays
exchange rate. Settlement will occur tomorrow. Which one of the
following is the exchange rate that applies to this agreement?
Forward exchange rate Triangle rate Cross rate Current rate Spot
exchange rate
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FIN 370 Final Exam Guide (New)

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Which financial statement reports the amounts of cash
that the firm generated and distributed during a
particular time period? statement of retained earnings
Income statement Statement of cash flows Balance
sheet Which of these provide a forum in which
demanders of funds raise funds by issuing new
financial instruments, such as stocks and bonds?
Money markets Investment banks Primary markets
Secondary markets The top part of Mars, Inc.s 2013
balance sheet is listed as follows (in millions of dollars).
What are Mars, Inc.s current ratio, quick ratio, and
cash ratio for 2013? 4.2, 1.0, 0.2 2.3333, 0.5556,
0.1111 10.5, 6.0, 1.0 0.1111, 0.5556, 0.2 Which of
these ratios show the combined effects of liquidity,
asset management, and debt management on the
overall operation results of the firm? Financial
Profitability Coverage Liquidity As new capital
budgeting projects arise, we must estimate__________.
the cost of the stock being sold for the specific project
when such projects will require cash flows the cost of
the loan for the specific project the float costs for
financing the project Whats the current yield of a 6
percent coupon corporate bond quoted at a price of
101.70? 6.1 percent 10.2 percent 6.0 percent 5.9
percent We call the process of earning interest on both
the original deposit and on the earlier interest
payments: computing. multiplying. compounding.
discounting. Which financial statement reports a firms
assets, liabilities, and equity at a particular point in
time? Balance sheet Income statement Statement of
retained earnings Statement of cash flows You are
trying to pick the least-expensive machine for your
company. You have two choices: machine A, which will
cost $50,000 to purchase and which will have OCF of -
$3,500 annually throughout the machines expected
life of three years; and machine B, which will cost
$75,000 to purchase and which will have OCF of -
$4,900 annually throughout that machines four-year
life. Both machines will be worthless at the end of their
life. If you intend to replace whichever type of machine
you choose with the same thing when its life runs out,
again and again out into the foreseeable future, and if
your business has a cost of capital of 14 percent, which
one should you choose? Machine A Machine B Neither
machine A nor B Both machines A and B When firms
use multiple sources of capital, they need to calculate
the appropriate discount rate for valuing their firms
cash flows as__________. a simple average of the capital
components costs a weighted average of the capital
components costs a sum of the capital components
costs they apply to each asset as they are purchased
with their respective forms of debt or equity Which of
these is used as a measure of the total amount of
available cash flow from a project? Operating cash flow
Investment in operating capital Free cash flow Sunk
cash flow Which of these does NOT perform vital
functions to securities markets of all sorts by
channeling funds from those with surplus funds to
those with shortages of funds? Secondary markets
Mutual funds Insurance companies Commercial banks
Wills Wheels, Inc. reported a debt-to-equity ratio of
0.65 times at the end of 2013. If the firms total debt at
year-end was $5 million, how much equity does Wills
Wheels have? $7.69 million $5 million $0.65 million
$3.25 million Which of these is the term for portfolios
with the highest return possible for each risk level?
Total portfolios Modern portfolios Optimal portfolios
Efficient portfolios What are the tools available for the
manager in financial planning? Delaying disbursement
of cash, reducing collection period, cash management,
and Increasing inventory turnover Reducing collection
period and delaying disbursement of cash Increasing
inventory turnover and reducing collection period
Delaying disbursement of cash and cash management
Suppose that Model Nails, Inc.s capital structure
features 60 percent equity, 40 percent debt, and that
its before-tax cost of debt is 6 percent, while its cost of
equity is 10 percent. If the appropriate weighted
average tax rate is 28 percent, what will be Model
Nails WACC? 7.73 percent 8.40 percent 8.00 percent
16.00 percent We commonly measure the risk-return
relationship using which of the following? Coefficient of
variation Standard deviation Expected returns
Correlation coefficient Financial plans include which of
the following? Schedule of Sales, Expenses, and Capital
Expenditure All of the above Short Term and Long Term
Plan Pro forma Income Statement, Balance Sheet
Which of the following terms means that during periods
when interest rates change substantially, bondholders
experience distinct gains and losses in their bond
investments? Interest rate risk Credit quality risk
Reinvestment rate risk Liquidity rate risk What are
reasons for the firm to go abroad? Access to raw
materials Diversification Lower production cost All of
the above Which of these statements is true regarding
divisional WACC? Using a simple firmwide WACC to
evaluate new projects would give an unfair advantage
to projects that present more risk than the firms
average beta. Using a divisional WACC versus a WACC
for the firms current operations will result in quite a
few incorrect decisions. Using a firmwide WACC to
evaluate new projects would have no impact on
projects that present less risk than the firms average
beta. Using a simple firmwide WACC to evaluate new
projects would give an unfair advantage to projects
that present less risk than the firms average beta. The
Rule of 72 is a simple mathematical approximation
for__________. the number of years required to double
an investment the payments required to double an
investment the present value required to double an
investment the number of years required to double an
investment the future value required to double an
investment We can estimate a stocks value
by__________. using the book value of the total
stockholder equity section using the book value of the
total assets divided by the number of shares
outstanding discounting the future dividends and future
stock price appreciation compounding the past
dividends and past stock price appreciation Which of
these is the process of estimating expected future cash
flows of a project using only the relevant parts of the
balance sheet and income statements? Substitutionary
analysis Incremental cash flows Cash flow analysis Pro
forma analysis Five years ago, Jane invested $5,000
and locked in an 8 percent annual interest rate for 25
years (ending 20 years from now). James can make a
20-year investment today and lock in a 10 percent
interest rate. How much money should he invest now in
order to have the same amount of money in 20 years
as Jane? $7,346.64 $5,089.91 $3,160.43 $3,464.11 The
overall goal of the financial manager is to__________.
maximize net income maximize earnings per share
maximize shareholder wealth minimize total costs
Which of the following can create ethical dilemmas
between corporate managers and stockholders?
Auditors Board of directors Agency relationship Venture
Capitalist A firm is expected to pay a dividend of $2.00
next year and $2.14 the following year. Financial
analysts believe the stock will be at their target price of
$75.00 in two years. Compute the value of this stock
with a required return of 10 percent. $79.14 $65.40
$65.57 $66.67 Which financial statement shows the
total revenues that a firm earns and the total expenses
the firm incurs to generate those revenues over a
specific period of time generally one year?
Statement of cash flows Statement of retained
earnings Balance sheet Income statement Which of the
following is a true statement? If interest rates fall, all
bonds will enjoy rising values. If interest rates fall,
corporate bonds will have decreasing values. If interest
rates fall, no bonds will enjoy rising values. If interest
rates fall, U.S. Treasury bonds will have decreasing
values.
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FIN 370 Week 1 Calculating Ratios Worksheet (2 Set)

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This Tutorial contains 2 Set of Answers FIN 370 Week 1
Calculating Ratios Worksheet 1. What is agency
theory? How can setting the appropriate goals for the
firm minimize the agency problem? 2. Differentiate
between profit maximization and wealth maximization.
3. Why must organizations focus on both shareholder
wealth and the stakeholders? 4. Differentiate between
the three financial statements with which managers
should be familiar. How are they linked?
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FIN 370 Week 1 Calculating RatiosLake of Egypt Marina


(3-29, 3-30)

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FIN 370 Week 1 Calculating Ratios Review the financial
statements for Lake of Egypt Marina, Inc. Complete the
following problem sets from Chapter 3 in Microsoft
Excel: 3-29 Spreading the Financial Statements 3-
30 Calculating Ratios Format your assignment
consistent with APA guidelines. Click the Assignment
Files tab to submit your assignment
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FIN 370 Week 1 Question and Problem Sets (Ch 1: Q 3,11


Ch 2: Q4,9, CH 3: Q4,7, Ch 4: Q 1,6)

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Purpose of Assignment Complete the following
Questions and Problems (Concepts and Critical
Thinking Questions for Ch. 1 Only) from each chapter
as indicated. Show all work and analysis. Prepare in
Microsoft Excel or Word. Ch. 1: Questions 3 & 11
(Concepts Review and Critical Thinking Questions
section) Ch. 2: Questions 4 & 9 (Questions and
Problems section): Microsoft Excel template
provided for Problem 4. Ch. 3: Questions 4 & 7
(Question and Problems section) Ch. 4: Questions 1 &
6 (Questions and Problems section): Microsoft Excel
template provided for Problem 6. Format your
assignment consistent with APA guidelines if submitting
in Microsoft Word. Click the Assignment Files tab to
submit your assignment. Ch. 1: Questions 3 & 11
(Concepts Review and Critical Thinking Questions
section) 3. Corporations [LO3] What is the primary
disadvantage of the corporate form of organization?
Name at least two advantages of corporate
organization. 11. Goal of the Firm [LO2] Evaluate the
following statement: Managers should not focus on the
current stock value because doing so will lead to an
overemphasis on short-term profits at the expense of
long-term profits. Ch. 2: Questions 4 & 9 (Questions
and Problems section): Microsoft Excel template
provided for Problem 4. Building an Income Statement
[LO1] Billys Exterminators, Inc., has sales of $817,000,
costs of $343,000, depreciation expense of $51,000,
interest expense of $38,000, and a tax rate of 35
percent. What is the net income for this firm? 3.
Dividends and Retained Earnings [LO1] Suppose the
firm in Problem 2 paid out $95,000 in cash dividends.
What is the addition to retained earnings? 4. Per-Share
Earnings and Dividends [LO1] Suppose the firm in
Problem 3 had 90,000 shares of common stock
outstanding. What is the earnings per share, or EPS,
figure? What is the dividends per share figure? 9.
Calculating Additions to NWC [LO4] The 2014 balance
sheet of Steelo, Inc., showed current assets of $4,630
and current liabilities of $2,190. The 2015 balance
sheet showed current assets of $5,180 and current
liabilities of $2,830. What was the companys 2015
change in net working capital, or NWC? Ch. 3:
Questions 4 & 7 (Question and Problems section) 4.
Calculating Inventory Turnover [LO2] The Green
Corporation has ending inventory of $417,381, and cost
of goods sold for the year just ended was $4,682,715.
What is the inventory turnover? The days sales in
inventory? How long on average did a unit of inventory
sit on the shelf before it was sold? 7. DuPont Identity
[LO4] If Roten Rooters, Inc., has an equity multiplier of
1.15, total asset turnover of 2.10, and a profit margin
of 6.1 percent, what is its ROE? Ch. 4: Questions 1 & 6
(Questions and Problems section): Microsoft Excel
template provided for Problem 6. 1. Pro Forma
Statements [LO1] Consider the following simplified
financial statements for the Yoo Corporation (assuming
no income taxes): 6. Calculating Internal Growth [LO3]
The most recent financial statements for Schenkel Co.
are shown here: Assets and costs are proportional to
sales. Debt and equity are not. The company maintains
a constant 30 percent dividend payout ratio. What is
the internal growth rate?
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FIN 370 Week 2 Cash Flow Problem Sets (5-1,5-3,5-5,5-
7,5-12,5-15,5-39)

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FIN 370 Week 2 Cash Flow Problem Sets Complete the
following problem sets from Chapter 5 in Microsoft
Excel: 5-1 5-3 5-5 5-7 5-12 5-15 5-39
(Calculate monthly payment only) 5-1FutureValue
Compute the future value in year 9 of a $2,000 deposit
in year 1 and another $1,500 deposit at the end of year
3 using a 10 percent interest rate. 5-3 Future Value of
an Annuity What is the future value of a $900 annuity
payment over five years if interest rates are 8 percent?
5-5 Present Value Compute the present value of a
$2,000 deposit in year 1 and another $1,500 deposit at
the end of year 3 if interest rates are 10 percent. 5-7
Present Value of an Annuity Whats the present value of
a $900 annuity payment over five years if interest
rates are 8 percent? 5-12 Present Value of an Annuity
Due If the present value of an ordinary, 6-year annuity
is $8,500 and interest rates are 9.5 percent, whats the
present value of the same annuity due? 5-15Effective
Annual Rate A loan is offered with monthly payments
and a 10 percent APR. Whats the loans effective
annual rate (EAR)? 5-39 Loan Payments You wish to buy
a $25,000 car. The dealer offers you a 4-year loan with
a 9 percent APR. What are the monthly payments? How
would the payment differ if you paid interest only?
What would the consequences of such a decision be?
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FIN 370 Week 2 Financial Markets and Institutions


Report (2 Papers)

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This Tutorial contains 2 Papers FIN 370 Week 2
Financial Markets and Institutions Report Create a
1,050-word report, and include the following:
Describe the role of the financial institutions and
financial markets in our economy Differentiate
between primary and secondary markets.
Differentiate between money and capital markets.
Format your assignment consistent with APA
guidelines.
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FIN 370 Week 2 Question and Problem Sets (Ch 5: Q3,Q4


Ch 6: Q2, Q20, Ch 7 : Q3,Q11 Ch 8: Q1,Q6)

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Prepare in Microsoft Excel or Word. Ch. 5:
Questions 3 & 4 (Question and Problems section):
Microsoft Excel templates provided for Problems 3
and 4 Ch. 6: Questions 2 & 20 (Questions and
Problems section) Ch. 7: Questions 3 &11
(Questions and Problems section) Ch. 8: Questions
1 & 6 (Questions and Problems section): Microsoft
Excel template provided for Problem 6 Format your
assignment consistent with APA guidelines if submitting
in Microsoft Word. Click the Assignment Files tab to
submit your assignment. Ch. 5: Questions 3 & 4
(Question and Problems section): 3. Calculating Present
Values [LO2] For each of the following, compute the
present value: 4. Calculating Interest Rates [LO3] Solve
for the unknown interest rate in each of the following:
Ch. 6: Questions 2 & 20 (Questions and Problems
section) 2. Present Value and Multiple Cash Flows [LO1]
Investment X offers to pay you $4,700 per year for
eight years, whereas Investment Y offers to pay you
$6,700 per year for five years. Which of these cash flow
streams has the higher present value if the discount
rate is 5 percent? If the discount rate is 15 percent? 20.
Calculating Loan Payments [LO2, 4] You want to buy a
new sports coupe for $79,500, and the finance office at
the dealership has quoted you an APR of 5.8 percent
for a 60-month loan to buy the car. What will your
monthly payments be? What is the effective annual
rate on this loan? Ch. 7: Questions 3 &11 (Questions
and Problems section) 3. Valuing Bonds [LO2] Even
though most corporate bonds in the United States
make coupon payments semiannually, bonds issued
elsewhere often have annual coupon payments.
Suppose a German company issues a bond with a par
value of 1,000, 23 years to maturity, and a coupon
rate of 5.8 percent paid annually. If the yield to
maturity is 4.7 percent, what is the current price of the
bond? Excel Sheet 11. Valuing Bonds [LO2] Union Local
School District has a bond outstanding with a coupon
rate of 3.7 percent paid semiannually and 16 years to
maturity. The yield to maturity on this bond is 3.9
percent, and the bond has a par value of $5,000. What
is the price of the bond? Ch. 8: Questions 1 & 6
(Questions and Problems section): Microsoft Excel
template provided for Problem 6 1. Stock Values [LO1]
The JacksonTimberlake Wardrobe Co. just paid a
dividend of $1.95 per share on its stock. The dividends
are expected to grow at a constant rate of 4 percent
per year indefinitely. If investors require a return of
10.5 percent on The JacksonTimberlake Wardrobe Co.
stock, what is the current price? What will the price be
in three years? In 15 years? 6. Stock Valuation [LO1]
Suppose you know that a companys stock currently
sells for $63 per share and the required return on the
stock is 10.5 percent. You also know that the total
return on the stock is evenly divided between a capital
gains yield and a dividend yield. If its the companys
policy to always maintain a constant growth rate in its
dividends, what is the current dividend per share?
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FIN 370 Week 3 Assignment Financial Ratio analysis

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Purpose of Assignment Students should understand
how to use the financial information and tools learned
in the class on a public company, obtain public
company SEC reports, and use that data to calculate a
company's financial ratios and their comparison to
industry or competitor standards. Assignment Steps
Resources: Tutorial help on Excel and Word functions
can be found on the MicrosoftOffice website. There
are also additional tutorials via the web that offer
support for office products. Select one of the publicly
traded corporations listed below and obtain the most
current SEC Form 10-K (annual financial report) from
the company's web site (Do not use the Annual Report
that is sent to shareholders): Lowes Corporation
Kroger Corporation Harley Davidson Corporation
Apple Corporation Intel Corporation Marriott
Corporation Berkshire Hathaway Corporation
PepsiCo Corporation Procter and Gamble Corporation
General Electric Corporation Calculate and analyze
the following ratios for your selected company for the
last two years from the SEC Form 10-K: Current Ratio
Inventory Turnover Debt Ratio Time Interest
Earned Gross Profit Margin Equity Multiplier
Return on Assets Net Profit Margin Return on Equity
(Use three ratio DuPont method) Compare and contrast
your company's ratios to industry and competitor
standard ratios obtained from Yahoo Finance,
Morningstar, MotleyFool, Macroaxis or other Internet
sources, and provide a detailed answer and analysis as
to why your company's ratios are different than the
industry/competitor standard. Prepare your analysis in
a minimum of 875 words in Microsoft Word. The use
of MicrosoftWord tables is encouraged. Cite the
source of the industry/competitor ratio information.
Format your assignment consistent with APA
guidelines. Click the Assignment Files tab to submit
your assignment. Note: Grades are awarded based
upon individual contributions to the Learning Team
assignment. Each Learning Team member receives a
grade based upon his/her contributions to the team
assignment. Not all students may receive the same
grade for the team assignment.
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FIN 370 Week 3 Individual AssingmentRisk and Return


Analysis Report (2 Papers)

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This tutorial contains 2 Papers FIN 370 Week 3 Risk and
Return Analysis Create a 1,050-word report, and
include the following: Explain the relationship
between risk and return Identify an example of risk
and return. Explain which is more risky bonds or
common stocks. Explain how understanding risk and
return will help you in future business ventures. Format
your assignment consistent with APA guidelines. Click
the Assignment Files tab to submit your assignment.
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FIN 370 Week 3 Risk and Return Problem Sets (7-21,7-


27,8-19,8-21,9-33)

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FIN 370 Week 3 Risk and Return Problem Sets
Complete the following problem sets from Chapter 7 in
Microsoft Excel: 7-21 7-27 Complete the
following problem sets from Chapter 8 in Microsoft
Excel: 8-19 8-21 Complete the following problem
sets from Chapter 9 in Microsoft Excel: 9-33 Click
the Assignment Files tab to submit your assignment.
Complete the following problem sets from Chapter 7 in
Microsoft Excel: 7-21 Compute Bond Price
Compute the price of a 3.8 percent coupon bond with
15 years left to maturity and a market interest rate of
6.8 percent. (Assume interest payments are
semiannual.) Is this a discount or premium bond? 7-
27 Yield to Maturity A 5.65 percent coupon bond with
18 years left to maturity is offered for sale at
$1,035.25. What yield to maturity is the bond offering?
(Assume interest payments are semiannual.) Complete
the following problem sets from Chapter 8 in
Microsoft Excel: 8-19 Value a Constant Growth
Stock Financial analysts forecast Safeco Corp.s (SAF)
growth rate for the future to be 8 percent. Safecos
recent dividend was $0.88. What is the value of Safeco
stock when the required return is 12 percent? 8-21
Expected Return Ecolap Inc. (ECL) recently paid a $0.46
dividend. The dividend is expected to grow at a 14.5
percent rate. At a current stock price of $44.12, what is
the return shareholders are expecting? Complete the
following problem sets from Chapter 9 in Microsoft
Excel: 9-33 Risk, Return, and Their Relationship
Consider the following annual returns of Estee Lauder
and Lowes Companies (Table Attached)
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FIN 370 Week 3 Team Assignment Precision Machines
Part 1 (annotated bibliography and excel calculation)

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This Tutorial contains both annonated bibliography and
excel file FIN 370 Week 3 Team Assignment Precision
Machines Part 1 Precision Machines is preparing a
financial plan for the next six months to determine the
financial needs of the company. The historical analysis
of the companys sales shows that the companys total
sales are 30% cash sales and 70% credit sales. Further
analysis of credit sales shows that the company
receives 50% of the credit sales one month after the
sale and the remaining 50% in the second month after
the sale. This means the cash collections from sales are
30% in the first month of the sale, 35% in the second
month, and 35% in the third month. The materials
purchased by the company amounts to 50% of the
sales for the month. The company pays for the
purchases one month after the initial purchase. The
company likes to maintain a cash balance of $5,000.
The cost of borrowing is 10%. The company plans to
pay off the loan whenever there is a surplus and
borrow when there is a deficit. The attached
spreadsheet shows revenues (sales), expenses, capital
expenditures, and other expenses for Precision
Machines next six months. Using the information given
on the spreadsheet, prepare a cash budget for January
through June and determine the cash surplus, deficit,
and the financing needs of the company. Note: There
are two parts to this learning team assignment; Part 2
will be completed in Week 5. Review the Learning Team
Assignment due in Week 5. Create an outline for the
essay. Develop a 700-word annotated bibliography
using at least 3 resources. Format your paper
consistent with APA guidelines. Click the Assignment
Files tab to submit your assignment.
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FIN 370 Week 4 Cash Flow AnalysisFrank Smith


Plumbing (calculation and 2 Papers)

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This tutorial includes both calculation and 2 Papers FIN
370 Week 4 Cash Flow Analysis Analyze the case study,
Frank Smith Plumbing. Analyze the Frank Smith
Plumbings Financial Statement spreadsheet. Compare
the cost of the truck to the cash flow records Compile
your calculations in a Microsoft Excel document
Develop a 1,050-word analysis and include the
following: Explain why limited leverage is good for
business.Show the profitability of the project so that
Stephanie can convince her father to purchase the
truck by borrowing money. Explain how Stephanie
should convince her mother that it is inappropriate to
call the bank manager and his wife for assistance in
getting the loan approval? Analyze whether the
investment in the truck is profitable. Explain whether
it is more beneficial for Frank to close his business.
Explain what you would do in this same situation.
Format your assignment consistent with APA
guidelines. Click the Assignment Files tab to submit
your assignments.
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FIN 370 Week 5 Team Assignment Precision Machines


Part 2 (Cash Budget and Strategic Analysis)

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FIN 370 Week 5 Precision Machines Part 2 Note: There
are two parts to this learning team assignment; Part 1
was completed in Week 3. Review the Precision
Machines document and spreadsheet. Prepare a cash
budget for Precision Machines in Microsoft Excel.
Create a 1,225-word strategic analysis and include the
following: Recommend a cash management strategy
for the company that will minimize the financing cost
and increase the cash flows for the company. Explain
two economic and market forces that will impact the
financial plan of this company. Format your documents
consistent with APA guidelines. Click the Assignment
Files tab to submit your assignment. Review the
"Precision Machines" document and spreadsheet.
Prepare a cash budget for Precision Machines in
Microsoft Excel. Precision Machines

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