Fin 419 Effective Communication-snaptutorial.com

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FIN 419 Week 1 Individual Assignment Limited Liability Corporation
and Partnership Paper (2 Papers)
FIN 419 Week 1 DQ 1
FIN 419 Week 1 DQ 2
FIN 419 Week 1 DQ 3
FIN 419 Week 1 DQ 4
FIN 419 Week 1 Individual Finance lab
FIN 419 Week 2 Individual Assignment Financial Outcomes Paper
FIN 419 Week 2 DQ 1
FIN 419 Week 2 DQ 2
FIN 419 Week 2 DQ 3
FIN 419 Week 2 DQ 4
FIN 419 Week 2 Individual Finance lab Problems

FIN 419 Week 3 Learning Team Assignment Capital Valuation Paper
FIN 419 Week 3 Team Assignment Working Capital Strategies Paper
and Presentation
FIN 419 Week 3 DQ 1
FIN 419 Week 3 DQ 2
FIN 419 Week 4 Team Assignment Working Capital Strategies Paper
FIN 419 Week 4 Team Assignment Capital Structure Paper
FIN 419 Week 4 Team Assignment Problem Set (New)
FIN 419 Week 4 DQ 1
FIN 419 Week 4 DQ 2
FIN 419 Week 4 DQ 3
FIN 419 Week 4 DQ 4
FIN 419 Week 5 Learning Team Assignment International Finance Paper
(2 Papers)
FIN 419 Week 5 DQ 1
FIN 419 Week 5 DQ 2
FIN 419 Week 5 DQ 3

FIN 419 Week 5 DQ 4
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FIN 419 Final Exam Guide (New)
1) Risk and probability Micro-pub, Inc., is considering the purchase of
one of two microfilm cameras, R and S. Both should provide benefits
over a10-year period, and each requires an initial investment of $4,000.
Management has constructed the following table of elements of rates of
return and possibilities for pessimistic, most likely, and optimistic
results.
2) Capital asset princing model (CAPM) Use the capital asset princing
model to find the required reurn.
3)a. What single investmentmade today, annual interest, will be worth
$3,500 at the end of 10 years?
b. What is the present value is $3,500 to be received at the end of 10
years if the discount rate is 6%?
c. What is the most you would pay today for a promise to repay you
$3,500 at the end of 10 years if your opportunity cost is 6% ?
d. Compare, contrast, and discuss your findings in part a through c.
4) Loan Payment Determine the equal, annual, end-of-year payment
required each year over the life of the loan to repay it fully during the
stated term of the loan.

5) Loan amortization schedule Personal Finace Problem Joan Messineo
borrowed $18,000 at a 14% annual rate of interest to be repaid over 3
years. The loan is amortized into three equal, annual, end-of-year
payments.
6) NPV Calculate the net present value (NPV) for a 30-year project with
an initial investment of $ 0 and a cash inflow of $2,000 per year.
Assume that the firm has an opportunity cost of 17%. Comment on the
acceptability of the project.
7) Scenario Analysis Automated Food Distribution Corp. (AFDC)
produces vending machines and places them in public buildings. The
company has obtained permission to place one of its machine in a local
library. The company makes two types of machines. One distributes soft
drinks, and the other distributes snack foods. AFDC expects both
machines to provide benefits over a 8-year period, and each has a
required investment of $2,990. The firm uses a 9.8% cost of capital.
Management has constructed the following table of estimates of annual
cash inflows for pessimistic., most likely, and optimistic results.
8) Degree of operating leverage Grey Products has fixed operating costs
of $382,000, varaiable operating costs of $15.61 per unit, and selling
price of $62.91 per unit.
9) Finding operating and free cash flows consider the balance sheets and
selected data from the income statement of Keith Corporation.
10) Pro forma balance sheet – Basic Leonard Industries wishes to
prepare a pro forma balance sheet for December 31,2016. The firm
expects 2016 sales to total $3,000,000.
11) Aggressive versus conservative seasonal funding strategy Dynabase
Tool has forecast its total funding requirements for the coming year.

12) Initiating a cash discount Gardner company currently makes all sales
on credit and offers no cash discount. The firm is considering offering a
3% cash discount for payment within 15 days. The firm’s current
average collection period is 60 days, sales are 40,000 units, selling price
is $46 per unit, and visible cost per unit is $30. The firm expects that the
change in credit terms will result in an increase in sales.
13) Degree of financial leverage North western Savings and Loan has a
current capital structure consisting of $230,000 of 15% (annual interest)
debt and 1,000 shares of common stock. The firm pays taxes at the rate
of 30%.
14) Various Capital Structures Character Enterprises currently has $1.5
million in total assets and is totally equity financed. It is contemplating a
change in its capital structure. Compute the amount of debt and equity
that would be outstanding is the firm were to shift to each of the
following debt ratios: 10%, 20%, 30%, 40%, 50%, 60%, and 90%.
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FIN 419 Final Exam Guide

results.
model to find the required return.
3) a. What single investment made today, annual interest, will be worth
$3,500 at the end of 10 years if your opportunity cost is 6%?
5) Loan amortization schedule Personal Finances Problem Joan
Messineo borrowed $18,000 at a 14% annual rate of interest to be repaid
over 3 years. The loan is amortized into three equal, annual, end-of-year
payments.

of $382,000, variable operating costs of $15.61 per unit, and selling
10) Pro forma balance sheet – Basic Leonard Industries wishes to
prepare a pro forma balance sheet for December 31,2016. The firm
expects 2016 sales to total $3,000,000.
11) Aggressive versus conservative seasonal funding strategy Dynacare
12) Initiating a cash discount Gardner company currently makes all sales
of 30%.

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FIN 419 Final Exam Guide
True/False (1point each)
1. The sole proprietor has unlimited liability; his or her total investment
in the business, but not his or her personal assets, can be taken to satisfy
creditors.
2. Time-value of money is based on the belief that a dollar that will be
received at some future date is worth more than a dollar today.
3. Holders of equity have claims on both income and assets that are
secondary to the claims of creditors.
4. The possibility that the issuer of a bond will not pay the contractual
interest or principal payments as scheduled is called maturity risk.
5. The breakeven point in dollars can be computed by dividing the
contribution margin into the fixed operating costs.
Multiple-choice (1point each)
6. The ________ is the extent of an asset's risk. It is found by subtracting
the pessimistic outcome from the optimistic outcome
7. ________ measure(s) the risk of a capital budgeting project by

estimating the NPVs associated with the optimistic, most likely, and
pessimistic cash flow estimates
8. If a firm uses an aggressive financing strategy,
9. The two major sources of short-term financing are
10. At the operating breakeven point, ________ equals zero.
Problems (show your work)
(1 Point)
11. Xiao Li wishes to accumulate $50,000 by the end of 10 years by
making equal annual end-of-year deposits over the next 10 years. If Xiao
Li can earn 5 percent on her investments, how much must she deposit at
the end of each year?
12. Hayley makes annual end-of-year payments of $6,260.96 on a five-
year loan with an 8 percent interest rate. The original principal amount
was
13. Hewitt Packing Company has an issue of $1,000 par value bonds
with a 14 percent annual coupon interest rate. The issue has ten years
remaining to the maturity date. Bonds of similar risk are currently
selling to yield a 12 percent rate of return. The current value of each
Hewitt bond is ________.
14. Yong Importers, an Asian import company, is evaluating two
mutually exclusive projects, A and B. The relevant cash flows for each
project are given in the table below. The cost of capital for use in
evaluating each of these equally risky projects is 10 percent.
Project A Project B
Initial Investment $350,000 $425,000
Year Cash Inflows (CF)
The NPVs of projects A and B are ________.

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FIN 419 Week 1 DQ 1
What is a sensitivity analysis?
What is a scenario analysis?
How would you apply each one to a potential investment opportunity?
How would you use the information from this analysis? Explain.
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FIN 419 Week 1 DQ 2
What is a limited liability corporation?
What is a limited liability partnership?
What are the differences?
What are the advantages and disadvantages of each?
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FIN 419 Week 1 DQ 3
Based on your assessment of risk using portfolio Management, what
factors would you use to make different risk preferences?
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FIN 419 Week 1 DQ 4
What are some risk management techniques?
How would you use portfolio management to assess the risk and return
of an investment?
Predict how the results would be different based on different risk
preferences?
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FIN 419 Week 1 Individual Assignment Limited
Liability Corporation and Partnership Paper (2

Papers)
This Tutorial contains 2 different Papers
Individual Assignment: Limited Liability Corporation and Partnership
Paper
Individual Assignment: Limited Liability Corporation and Partnership
Paper
• Resources: Week One readings
• Write a 700- to 1,050-word paper in which you explain roles of limited
liability corporations and partnerships. If you were establishing your
own business, under what circumstances would you choose one instead
of the other?
• Format your paper according to APA standards
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FIN 419 Week 1 Individual Assignment
Richardses’Tree Farm Grows Up Case Study

Review the "Richardses' Tree Farm Grows Up - Mini Case" located in
Chapter 1 of Financial Management: Core Concepts.
Develop a 1,050-word analysis of the case study.
Include the following:
Analyze whether the major financial management decisions of the
Richards family involve capital budgeting, capital structure, and
working capital management.
Explain whether the Richards family should form a regular corporation
or choose one of the hybrid forms.
Explain how incorporating will affect the Richards family's ability to
transfer ownership to their children.
Justify Jake's concerns with hiring professional management.
Analyze whether incorporating will affect the Richards family's ability
to give up a small amount of profit in exchange for protecting the
environment.
Evaluate how Jake might obtain more equity funding and perhaps create
considerable wealth for the Richards family in the process.
Include at least two sources to justify your assignment.
Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
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FIN 419 Week 1 Individual Finance lab (New)
This Tutorial contains excel sheet
P 11-1

Eric has another get-rich-quick idea, but needs funding to support it. He
chooses an all-debt funding scenario. He will borrow $3683 from
Wendy, who will charge him 7% on the loan. He will also borrow $3165
from Bebe, who will charge him 9% on the loan, and $2152 from Shelly,
who will charge him 15% on the loan. What is the weighted average cost
of capital for Eric?
P11-2
Question : Grey’s pharmaceuticals has a new project that will require
funding of $13.0 million. The company has decided to pursue an all-debt
scenario. Grey’s has made agreements with four lenders for the needed
financing. These lenders will advance the following amounts at the
interest rates shown:
P11-3
Question : Cost of debt. Kenny Enterorises has just issused a bond with
a par value of $1,000, a maturity of twenty years, and a coupon rate of
9.4% with semiannual payments. What is the cost of debt for Kenny
Enterprises if the bond sells at the following prices? What do you nitice
about the price and the cost of debt?
a. What is the cost of debt for Kenny Enterprises if the bond sells at
$941.16?
b. What is the cost of debt for Kenny Enterprises if the bond sells at
$1,000.00?
c. What is the cost of debt for Kenny Enterprises if the bond sells at
$1,041.55?
d. What is the cost of debt for Kenny Enterprises if the bond sells at
$1,176.64?
P11-7
COST of Preffered Stock. Kyle is raising funds for his company by

selling preferred stock. The preferred stock has a par value os $83 and a
dividend rate of 10.4%. the stock for $59.45 in the market. What is the
cost of preferred stock for Kyle?
P 11-9
Stan is expanding his business and will sell common stock for the
needed funds. If the current risk-free rate is 4.3% and the expected
market rate is 10.8%, what is the cost of equity for Stan if the beta of the
stock is
a) What is the cost of equity for Stan if the beta of the stock is 0.62?
b) What is the cost of equity for Stan if the beta of the stock is 0.86?
c) What is the cost of equity for Stan if the beta of the stock is 1.09?
d) What is the cost of equity for Stan if the beta of the stock is 1.35
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FIN 419 Week 1 Individual Finance lab
results.

2) Portfolio Analysis you have given the expected return data shown in
the first table on three assets –F, G, and H – over the period 2016-2019.
Using the assets, you have the isolated the three investment alternatives.
model to find the required return.
FIN 419 Week 2 DQ 1
What are the three key inputs to the valuation model?
How would you determine the valuation of an asset?
How would the intrinsic value of assets differ from the market value?
Explain.
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FIN 419 Week 2 DQ 2
What is a loan amortization schedule?

How would you use it determine your loan interest rate?
What factors would impact your choice between two loans?
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FIN 419 Week 2 DQ 3
What is the difference between present values and future values?
How would you use present and future value techniques in preparing a
financial plan for retirement?
How would various required rates of return affect your decision?
Explain.
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FIN 419 Week 2 DQ 4
How would the intrinsic value of assets differ from the market value?
Explain.
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FIN 419 Week 2 Individual Assignment Financial
Outcomes Paper
Use the faculty-approved Fortune 500 organization and the financial
initiative selected Week 1.
Write a 1,400- to 1,750-word paper in which you compare and contrast
three potential financial outcomes your Learning Team envisions for the
initiative. Complete the following in your paper:
Evaluate your findings to determine the most likely outcome.
Include calculations that support your analysis of various financial
outcomes and discuss the financial effect on the organization.
Format your paper consistent with APA guidelines.
Submit your assignment using the Assignment Files tab above.
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1)a. What single investment made today, annual interest, will be worth
$3,500 at the end of 10 years if your opportunity cost is 6% ?
3) Loan amortization schedule Personal Finance Problem Joan Messineo
borrowed $18,000 at a 14% annual rate of interest to be repaid over 3
years. The loan is amortized into three equal, annual, end-of-year
payments.
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FIN 419 Week 2 Individual My FinanceLab
(NEW)

This Tutorial comes with a excel sheet
P3-1
Future Value. Fill in the future values for the following table using one
of the three methods below:
a. Use the future value formula, FV = PV*(1+r)n.
b. Use the TVM keys from a calculor.
c. Use the TVM function in a spreadsheet.
P3 – 4
Future Value. Grand opening Bank is offering a one-time investment
opportunity for its new customer. A customer opening a new checking
account can buy a special saving bond for $ 400 today , Which the bank
will compound at 8.5% for the next ten years. The savings bond must be
held for at least five years, but can then be cashed in at end of any year
starting with years five. What is the value of the bond at each cash-in
date up through year ten ?
What is the value of the savings bond at the end of year five ?
a. What is the value of the savings bond at the end of year five ?
b. What is the value of the savings bond at the end of year six?
c. What is the value of the savings bond at the end of year seven?
d. What is the value of the savings bond at the end of year eight?
e. What is the value of the savings bond at the end of year nine?
f. What is the value of the savings bond at the end of year ten?
P 3– 8
a. Use the present value formula, PV = FV*---

b. Use the TVM keys from a calculator.
c. Use the TVM function in a spreadsheet.
P3-15
Future Value. YOU are a new employee with the metro daily planet.
The planet offers three different retirement plans. Plans 1 starts the
first day of work and puts $1,100 away in your retirement acc at the end
of every year for 40 years. Plan 2 starts after 10 year and puts away
$2,100 every year for year. Plan 3 starts after 20 year and puts away
$4,100 every year for the last 20 year 0 employment. All tree plans
guarantee an annual growth rate of 11%.
a. Which plan should you choose if you plan to work at the Planet
for 40 years ?
b. Which plan should you choose if you plan to work at the Planet
for only the next 30 years ?
c. Which plan should you choose if you plan to work at the Planet
d. Which plan should you choose if you plan to work at the Planet
e. What do the answers in parts (a) through (d) imply about
savings ?
P4-5
Future Value. YOU are a new employee with the metro daily planet.
The planet offers three different retirement plans. Plans 1 starts the
first day of work and puts $1,100 away in your retirement acc at the end
of every year for 40 years. Plan 2 starts after 10 year and puts away
$2,100 every year for year. Plan 3 starts after 20 year and puts away
$4,100 every year for the last 20 year 0 employment. All tree plans
guarantee an annual growth rate of 11%.
a. Which plan should you choose if you plan to work at the Planet
for 40 years ?
b. Which plan should you choose if you plan to work at the Planet

c. Which plan should you choose if you plan to work at the Planet
d. Which plan should you choose if you plan to work at the Planet
e. What do the answers in parts (a) through (d) imply about
savings ?
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FIN 419 Week 2 Team Assignment Evaluating
Financial Statements (2 Papers)
This Tutorial contains 2 Papers
Research two companies' financial statements from one of the following
industries:
Airline
Automotive
Pharmaceutical
Oil/gas
Retail
Computer Hardware
Analyze table 14.8 in Financial Management: Core Concepts, Ch. 14:
"Financial Ratios: Industry Averages."
Prepare the following ratios for the two sets of financial statements in
Microsoft® Excel®:
Price to Earnings
Gross Margin

Profit Margin
Current Ratio
Debt to Equity
Return on Assets
Return on Equity
Compare your completed ratios to the industry average chart.
Evaluate in 175 words which company, of the two you have researched,
is doing better.
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FIN 419 Week 2 Team Problem Set
Complete the following problem sets in Financial Management using
Chapter 2: 1, 2, 3, 4
Chapter 5: 1, 3, 5, 7
Chapter 5: Advanced Problems 1a and 1b
Chapter 14: 9, 10, 11, 12
Chapter 2: Problem 1
1. Balance sheet. From the following balance sheet accounts,
a. construct a balance sheet for 2013 and 2014.

b. list all the working capital accounts.
c. find the net working capital for the years ending 2013 and 2014.
d. calculate the change in net working capital for the year 2014.
2. Income statement. From the following income statement accounts,
a. produce the income statement for the year
b. produce the operating cash flow for the year
3. Balance sheet. From the following balance sheet accounts,
a. construct a balance sheet for 2013 and 2014
b. list all the working capital accounts
c. find the net working capital for the years ending 2013 and 2014
d. calculate the change in net working capital for the year 2014
4. Income statement. From the following income statement accounts,
a. produce the income statement for the year
3. EAR. What is the EAR of a mortgage that is advertised at 7.75%
(APR) over the next twenty years and paid with monthly payments?
5. Present value with periodic rates. Let’s follow up with Sam Hinds, the
dentist, and his remodeling project (Chapter 4, Problem 12). The cost of
the equipment for the project is $18,000, and he will finance the
purchase with a 7.5% loan over six years. Originally, the loan called for
annual payments. Redo the payments based on quarterly payments (four
per year) and monthly payments (twelve per year). Compare the annual
cash outflows of the two payments. Why does the monthly payment plan
have less total cash outflow each year?

Original Problem from Chapter 4, Problem 12 to go with Chapter 5
Problem 5:
12. Payments. Sam Hinds, a local dentist, is going to remodel the dental
reception area and add two new workstations. He has contacted A-Dec,
and the new equipment and cabinetry will cost $18,000. A-Dec will
finance the equipment purchase at 7.5% over a six-year period. What
will Hinds have to pay in annual payments for this equipment?
7. Future value with periodic rates. Matt Johnson delivers newspapers
and is putting away $15.00 every month from his paper route
collections. Matt is eight years old and will use the money when he goes
to college in ten years. What will be the value of Matt’s account in ten
years with his monthly payments if he is earning 6% (APR), 8% (APR),
or 12% (APR)?
Chapter 5: Advanced Problem 1a & 1b
1. Monthly amortization schedule. Sherry and Sam want to purchase a
condo at the coast. They will spend $650,000 on the condo and are
taking out a loan for the whole amount for the condo for twenty years at
7.0% interest.
a. What is the monthly payment on the mortgage? Construct the
amortization of the loan for the twenty years in a spreadsheet to show
the interest cost, the principal reduction, and the ending balance each
month.
b. Then change the amortization to reflect that after ten years, Sherry and
Sam will increase their monthly payment to $7,500 per month. When
will they fully repay the mortgage with this increased payment if they
apply all the extra dollars above the original payment to the principal?
Chapter 14: Problems 9, 10, 11 & 12 listed below:
9. Financial ratios: Liquidity. Calculate the current ratio, quick ratio, and
cash ratio for Tyler Toys for 2013 and 2014. Should any of these ratios
or the change in a ratio warrant concern for the managers of Tyler Toys

or the shareholders?
10. Financial ratios: Financial leverage. Calculate the debt ratio, times
interest earned ratio, and cash coverage ratio for 2013 and 2014 for Tyler
Toys. Should any of these ratios or the change in a ratio warrant concern
for the managers of Tyler Toys or the shareholders?
11. Financial ratios: Asset management. Calculate the inventory
turnover, days’ sales in inventory, receivables turnover, days’ sales in
receivables, and total asset turnover for 2013 and 2014 for Tyler Toys.
Should any of these ratios or the change in a ratio warrant concern for
the managers of Tyler Toys or the shareholders?
12. Financial ratios: Profitability. Calculate the profit margin, return on
assets, and return on equity for 2013 and 2014 for Tyler Toys. Should
any of these ratios or the change in a ratio warrant concern for the
managers of Tyler Toys or the shareholders?
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FIN 419 Week 3 DQ 1
What is zero working capital? How would you define zero working
capital?
When would this methodology be used?
Would this model be applicable to all organizations? Explain.
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FIN 419 Week 3 DQ 2

What is an asset?
What is a liability?
What is the difference between assets and liabilities?
Can an organization operate without current liabilities? Explain.
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FIN 419 Week 3 Individual Assignment Biocom,
Inc. Case Study
Read the "Mini-Case Biocom, Inc.: Part 2, Evaluating a New Product
Line" from the end of Chapter 10 of Financial Management: Core
Concepts.
Complete questions 1-7 in Microsoft® Excel.
Evaluate the following in a 350-word response:
Explain what depreciation, cash flow, operating cash flow and NPV are
and how they interact with business decisions.
Explain why these financial concepts are important for you as an
employee, owner, or investor.

2) Pro forma balance sheet – Basic Leonard Industries wishes to prepare
a pro forma balance sheet for December 31, 2016. The firm expects
2016 sales to total $3,000,000.
3) Aggressive versus conservative seasonal funding strategy Dynacare
4) Initiating a cash discount Gardner Company currently makes all sales
5) Cash conversion cycle American Products is concerned about
managing cash efficiently. On the average, inventories have an age of 94
days, an accounts receivable are collected in 65 days. Accounts payable
are paid approximately 30 days after they arise. The firm has annual
sales of about $31 million. Cost of goods sold is $22 million, and
purchases are $13 million.
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FIN 419 Week 3 Individual My Finance Lab
(NEW)
This Tutorial contains excel sheet
P10-4 (similar to)
Opportunity cost. Richardses' Tree Farm, Inc. has branched into
gardening over the years and is now considering adding patio furniture
to its product lineup. Currently, the area where the patio furniture is to
be displayed is a vacant slab of concrete attached to the indoor shop. The
company originally paid $8000 to put in the slab of concrete three years
ago. It would now cost $13000 to put in the same slab of concrete.
Should the company consider the concrete slab when expanding its
outdoor garden shop to include patio furniture? If yes, which value
should it use?Should the company consider the concrete slab when
expanding its outdoor garden shop to include patio furniture? If yes,
which value should it use?
(Select the best response.)
A.
No. The slab is a sunk cost unless there is another use for the slab that
could provide cash flow to Richardses' Tree Farm. The additional cash
flow that the slab could provide is the opportunity cost, not the current
replacement cost or the original cost.

B.
Yes, use
$13 comma 000
as the cost.
C.
Yes, use
$8 comma 000
as the cost.
P10-5
Working capital cash flow. Cool Water, Inc. sells bottled water. The
firm keeps in inventory plastic bottles at 12% of the monthly projected
sales. These plastic bottles cost $0.007 each. The monthly sales for the
first four months of the coming year are as follows:
What is the monthly increase or decrease in cash flow for inventory
given that an increase is a use of cash and a decrease is a source of
cash? Note: Enter a decrease as a negative number.
What is the change in working capital for January?
What is the change in working capital for February?
What is the change in working capital for March?
P13-3 (similar to) Average production cycle.
Use the following account information to find the average production
cycle for Rian Company.
2013 and 2014 Selected Balance Sheet Accounts of Rian Company
Cash sales $463,000
Credit sales $573,000
Total sales $1,036,000
Cost of goods sold $607,205

What is the average production cycle for Rian Company?
P13-4 (similar to)
Average production cycle.
Use the following account information for Rian Company.
12/31/14 12/31/13 Change
Accounts receivable $42,912 $52,041 $9,129
Inventory $62,011 $66,087 $4,076
Accounts payable $29,433 $27,645 $1,788
2014 Selected Income Statement Items for Rian Company
Cash sales $576000
Credit sales $500000
Total sales
Cost of goods sold $554736
For the coming year, Rian Company wants to reduce its average
production cycle to 39.5 days. If the target-ending inventory for 2015 is
$68267, what cost of goods sold will the company need to reach its
goal?
P13-5 (similar to)
Average collection cycle. Use the following account information to find
the average collection cycle for Rian Company.

P 13-6
Average collection cycle.
Cash sales
Credit sales
Total sales
Cost of goods sold
Rian Company had set a target of 23.2 days for the collection cycle for
2014. If total sales had remained at $ 965000, how much of the sales
revenue would have needed to be cash sales for the company to have
met the collection goal?
P13-7 (similar to)
Average accounts payable
cycle.
Use the following account information to calculate Rian Company's
average accounts payable cycle.

Cash sales
$539000
Credit sales
$664000
Total sales
$1203000
Cost of goods sold
$632489
P13-8 (similar to)
Average accounts payable cycle.
Rian Company had set a target of 16.6 days for its payment (accounts
payable) cycle. What would the ending balance in the accounts payable
account for 2014 have needed to be to reach this target (holding all other
accounts the same)?
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FIN 419 Week 3 Learning Team Assignment
Capital Valuation Paper

Learning Team Assignment Capital Valuation Paper
• Resource: Financial Outcomes Paper
• Write a 1,050- to 1,750-word paper in which you justify the current
market price of the organization’s debt, if any, and equity, using various
capital valuation models.• Show calculations that support your findings,
including those involving rates of return.
• Defend which valuation model best supports your findings.
• Format your paper according to APA standards.
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FIN 419 Week 3 Team Assignment Working
Capital Strategies Paper and Presentation
Resource: Financial Outcomes Paper from Week 2
Review your organization's most recent financial reports, including
balance sheets, statements of cash flow, management comments, and
footnotes to financial statements.
Write a 1,400- to 2,100-word paper that addresses senior
management in which you do the following:
• Assume next year's forecasted revenues increase by 20%.
• Explain how each current asset and liability account has affected cash
management strategies.

• Provide a detailed working capital recommendation based on next
year's increase in revenue along with assumptions you make regarding
other line items in the pro forma financial statements.
• Support your recommendations with financial analysis to show how
they maximize shareholder wealth.
• Calculate and discuss the effect of the revenue increase on the firm's
working capital policy.
• Identify lessons learned and discuss areas for further development in
your conclusion.
Create a 5- to 8-slide Microsoft® PowerPoint® presentation for the
organization's senior management with an executive summary of your
Working Capital Strategies paper.
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FIN 419 Week 4 DQ 1
What is the difference between operating and financial leverage?
What is the importance of assessing operating vs. financial leverage?
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FIN 419 Week 4 DQ 2

What is investment banking?
How would the investment banker assist an organization in going
public?
As a CFO, what information would you need to select an investment
banker?
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FIN 419 Week 4 DQ 3
What are the risks of having an excessive amount of financial leverage
in an organization?
What is the degree of total leverage?
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FIN 419 Week 4 DQ 4

What is EBIT-EPS analysis?
What is the indifference curve?
How is risk factored into the EBIT-EPS analysis?
What are the “basic short comings” of EBIT’s analyses?
*********************************************************
1) Bond prices and yields Assume that the Financial Management
Corporation’s $1,000-per-value bond has a 7.100% coupon, matures on
May 15, 2023, has a current price quote of 94.464 and yield to
maturity(YTM) of 8.241%.
2) Common stock value –Constant growth Use the contrast-growth
model (Golden model) to find the value of the firm.
of $382,000, variables operating costs of $15.61 per unit, and selling
of 30%.

*********************************************************
FIN 419 Week 4 Individual My FinanceLab (New)
P9-7
Net present value.
Quark Industries has a project with the following projected cash flows:
a. Using a discount rate of 9 %
for this project and the NPV model, determine whether the company
should accept or reject this project.
b. Should the company accept or reject it using a discount rate of 17
%?
c. Should the company accept or reject it using a discount rate of 18
%?
P9-8 (similar to)
Net present value. Lepton Industries has a project with the following
projected cash flows:
Initial cost: $470,000
Cash flow year one: $121,000
Cash flow year two: $260,000
Cash flow year three: $181,000

Cash flow year four: $121,000
a. Using a discount rate of 9 % for this project and the NPV model,
determine whether the company should accept or reject this project.
b. Should the company accept or reject it using a discount rate of 14
%?
c. Should the company accept or reject it using a discount rate of 21
%?
P16-5 (similar to)
Break-even EBIT (with and without taxes). Alpha Company is
looking at two different capital structures, one an all-equity firm and the
other a levered firm with $4.8 million of debt financing at 7% interest.
The all-equity firm will have a value of $8 million and 400,000 shares
outstanding. The levered firm will have 160,000 160,000 shares
outstanding.
a. Find the break-even EBIT for Alpha Company using EPS if there
are no corporate taxes.
b. Find the break-even EBIT for Alpha Company using EPS if the
corporate tax rate is 15%.
c. What do you notice about these two break-even EBITs for Alpha
Company?
P7-1 (similar to)
Anderson Motors, Inc. has just set the company dividend policy at $0.85
per year. The company plans to be in business forever. What is the
price of this stock if
a. an investor wants a return of 4 %?
b. an investor wants a return of 7 %?
c. an investor wants a return of 9 %?
d. an investor wants a return of 16 %?
e. an investor wants a return of 18 %?
P7-2 (similar to)

Dietterich Electronics wants its shareholders to earn a return of 9% on
their investment in the company. At what price would the stock need to
be priced today if Dietterich Electronics had a
a. $0.40 constant annual dividend forever?
b. $1.10 constant annual dividend forever?
c. $1.60 constant annual dividend forever?
d. $2.90 constant annual dividend forever?
*********************************************************
FIN 419 Week 4 Team Assignment Capital
Structure Paper
Resource: Financial Outcomes Paper
Write a 1,050- to 1,750-word paper in which you evaluate the capital
structure of the organization.
Complete the following in your paper:
• Assume long term debt increases 10% at the same current cost of long-
term debt.
• Evaluate and compare the impact of the change in capital structure to
the firm's operating and financial leverage.
• Recommend an optimal capital structure that would maximize
shareholder wealth--support recommendations with analysis and
calculations.
*********************************************************

FIN 419 Week 4 Team Assignment Problem Set
(New)
Ch 10 Advanced Problem 2
Chapter 13 Problem 18
Ch 11 Advanced problem 1
ADVANCED PROBLEMS FOR SPREADSHEET APPLICATION
These problems are available in MyFinanceLab.
1.
Erosion costs. Ice Cream City plans to introduce a new flavor, wild
berry, to its current set of five flavors, which include vanilla, French
vanilla, strawberry, chocolate, and mint chocolate. The new sales of wild
berry are projected as follows:
The expected sales will come from both new customers and current
customers who switch flavors. The current projected sales for the
existing flavors (assuming no introduction of the new flavor) are
Projected Sales
However, if the company introduces wild berry, it will cut into the sales
of the original flavors based on the following estimates:
Percentage of Sales Erosion
Here are the revenue and cost per unit of ice cream for Ice Cream City:
Vanilla: current revenue of $3.05 per unit and cost of $1.22 per unit
French vanilla: current revenue of $3.15 per unit and cost of $1.38 per
unit
Strawberry: current revenue of $3.25 per unit and cost of $1.41 per unit

Chocolate: current revenue of $3.25 per unit and cost of $1.57 per unit
Mint chocolate: current revenue of $3.25 per unit and cost of $1.63 per
unit
Wild berry: projected revenue of $3.25 per unit and cost of $1.44 per
unit
Find the annual erosion of revenue, the cost savings, and the net cash
flow with the new ice cream.
Ch 11 Advanced problem 1
Changing WACC and optimal choice. Austin Enterprises is currently an
all-equity firm. The firm is considering selling debt (bonds) and retiring
some of the equity. However, at each level of debt, debt becomes more
expensive (cost of debt is rising), and the riskiness of the equity also
rises with more and more debt. Using a spreadsheet, determine the best
combination of debt and equity for Austin Enterprises if
· The current beta of Austin Enterprises is 0.85.
· The current market return is 12%.
· The current risk-free rate is 3%.
· The total equity is 20,000,000 shares at $25 per share.
· Debt is sold in units of $2,000,000.
· The first unit of debt has a cost of 7.5%.
· The tax rate of Austin Enterprises is 40%.
· For each additional unit of debt (each additional $2,000,000), the
cost of debt rises by 0.85%, and the beta of Austin Enterprises rises by
0.025.
Where is the WACC the lowest? Graph the results of the changing
WACC
Working capital and capital budgeting. Farbuck’s Tea Shops is thinking
about opening another tea shop. The incremental cash flow for the first
five years is as follows:
· Initial capital cost = $3,500,000 Operating cash flow for each year
= $1,000,000 Recovery of capital assets after five years = $250,000
The hurdle rate for this project is 12%. If the initial cost of working

capital is $500,000 for items such as teapots, teacups, saucers, and
napkins, should Farbuck’s open this new shop if it will be in business for
only five years? What is the most it can invest in working capital and
still have a positive net present value?
Working capital and capital budgeting. Working capital investment is
25% of the anticipated first year sales for Wally’s Waffle House. The
first-year sales are currently projected at $4,300,000. The incremental
cash flow (not including working capital investment) is
· Initial cash flow = $13,700,000 outflow Cash flow years 1 through
10 = $2,850,000
What is the internal rate of return of the ten-year project with working
capital factored into the cash flow? What is the net present value at a
15% weighted average cost of capital? What is the maximum investment
in working capital for an acceptable project with a 15% weighted
average cost of capital?
*********************************************************
FIN 419 Week 4 Team Assignment Problem Sets
In case different Questions/problems are asked by your instructor just
email me
Complete the following problem sets in Financial Management using
Chapter 7 : 5, 15

Chapter 9 : 10
Chapter 11 : 12
Chapter 16: 9, 10
Chapter 7
5. King Waterbeds has an annual cash dividend policy that raises the
dividend each year
by 4%. Last year’s dividend was $0.40 per share. What is the price of
this stock if
a. an investor wants a 5% return?
b. an investor wants an 8% return?
c. an investor wants a 10% return?
d. an investor wants a 13% return?
e. an investor wants a 20% return?
15. Using Yahoo! Finance (http://finance.yahoo.com/) and ticker symbol
PEP, find
PepsiCo’s historical dividend payment and current price. Historical
dividends are available in the historical price section. Use these
payments to find the annual
dividend growth rate. (If you have a quarterly pattern be sure to
annualize this
quarterly growth rate.) Now, find the required rate of return for this
stock, assuming
that the future dividend growth rate will remain the same and the
company has an
infinite horizon. Does this return seem reasonable for PepsiCo?
Chapter 9 – Q10
10. Net present value. Lepton Industries has four potential projects, all
with an initial cost of $1,500,000. The capital budget for the year will
allow Lepton to accept only one of the four projects. Given the discount
rates and the future cash flows of each project, determine which project
Lepton should accept.
ANSWER:

Chapter 11 – Q12
12. Book value versus market value components. The CFO of DMI is
trying to determine the company’s WACC. Brad, a promising MBA,
says that the company should use book value to assign the components
percentage for the WACC. Angela, a long-time employee and
experienced financial analyst, says the company should use market value
to assign the components. The after-tax cost of debt is at 7%, the cost of
preferred stock is at 11%, and the cost of equity is at 14%. Calculate the
WACC using both the book value and market value approaches with the
following information. Which do you think is better? Why?
Chapter 16
9. Finding the WACC. Monica is the CFO of Cooking for Friends (CFF)
and uses the pecking order hypothesis (POH) philosophy when she
raises capital for company projects. Currently, she can borrow up to
$600,000 from her bank at a rate of 8.5%, float a bond for $1,100,000 at
a rate of 9.25%, or issue additional stock for $1,300,000 at a cost of
17%. What is the WACC for CFF if Monica chooses to invest: a.
$1,000,000 in new projects? b. $2,000,000 in new projects? c.
$3,000,000 in new projects?
10. Finding the WACC. Chandler has been hired by Cooking for Friends
to raise capital for the company. Chandler increases the funding
available from the bank to $900,000, but with a new rate of 8.75%.
Using the data in Problem 9, determine what the new weighted average
cost of capital is for borrowing $1,000,000, $2,000,000, or $3,000,000
Prepare the DuPont analysis for each of the two companies you
researched in Week 2.
Develop a 350-word analysis of the following:
Compare the two company findings.
Analyze the research and calculations to determine in which company
you would invest.
Format the assignment consistent with APA guidelines.

*********************************************************
FIN 419 Week 4 Team Assignment Working
Capital Strategies Paper
FIN 419 Week 4 Team Assignment Working Capital Strategies
Paper
Learning Team Assignment: Working Capital Strategies Paper and
Presentation
• Resource: Financial Outcomes Paper
• Write a 1,400- to 2,100-word paper in which you review your
organization’s most recent financial reports, such as balance sheets,
statements of cash flow, management comments, and footnotes to
financial statements, to explain how each current asset and liability
account has affected cash management strategies.
• Assume next year’s forecasted revenues increase by 20%.
• Provide a detailed working capital recommendation to senior
management based on next year’s increase in revenue along with
assumptions you make regarding other line items in the pro forma
financial statements.
• Discuss the effect of this revenue increase on the firm’s working
capital policy.
• Identify lessons learned and discuss areas for further development in
your conclusion.
• Format your paper according to APA standards

*********************************************************
FIN 419 Week 5 DQ 1
What is the SEC?
How does it impact financial decision-making?
What constraints might it put on a company?
*********************************************************
FIN 419 Week 5 DQ 2
What would you consider to be a global equivalent(s) to the SEC within
the USA?
Are there individual reporting requirements comparable? Explain?
*********************************************************
FIN 419 Week 5 DQ 3

What is a multinational corporation?
What are some of the constraints facing today’s multinational
corporations?
Predict how joint ventures and international mergers might address some
of those constraints.
*********************************************************
FIN 419 Week 5 DQ 4
What would be the constraints specifically dealing with different
currencies and market rate fluctuatins?
*********************************************************
FIN 419 Week 5 Individual Assignment ICS
Manufacturing Company Case Study

ICS Manufacturing Company Case Study
ICS Manufacturing Company produces plastic parts for the automotive
industry. Here is their Income Statement for 2015 –
ICS Manufacturing Company
Income Statement for 2015
Sales Revenue $35,500,000
Cost of Goods Sold 12,725,000
Selling, General & Admin Exp
11,200,000
Depreciation Expense 3,200,000
EBIT 8,375,000
Interest Expense 350,000
Taxable Income 8,025,000
Taxes 3,210,000
Net Income 4,815,000
Transfer this income statement to an Excel spreadsheet and begin to
prepare a Pro Forma Income statement for 2016 based on the following
information:
1. Sales revenue to increase 5.2%, COGS to increase 4.5%, S,G&A
will increase 3.8% and depreciation expense will be $3,255,000.
Assume interest expense to be $375,000 and taxes are to be 40% of
taxable income. You will now have income statements for 2015 and
2016 for ICS Manufacturing.
This is the balance sheet information for ICS Manufacturing Company:
ICS Manufacturing Company
Balance Sheet for year ending December 31, 2015

Assets Liabilities
Cash $2,625,000 Accounts Payable
$5,825,000
Accounts Receivable $2,715,000 Other Current
Liabilities $3,365,000
Inventories $1,514,000 Total Current
Total Current Assets $6,854,000
Long Term Assets Long Term
Liabilities
P, P & E $12,745,000 Long Term
Debt $1,225,000 Goodwill
$1,205,000 Other LT Debt $2,230,000
Intangible Assets $5,275,000 Total LT
Total LT Assets $19,225,000 Total
Total Assets $26,079,000
Owners’
Equity
Common
Stock $6,425,000
Retained
Earnings $7,009,000
Total
Owners’ Equity $13,434,000
Total
Liab/OE $26,079,000
Transfer this balance sheet to an Excel spreadsheet and begin to prepare

a Pro Forma Balance Sheet for 2016 based on the following information:
2. Cash will increase to $2,825,000 and accounts receivable will
increase by 15%. The inventories will go up 35% and P, P, &E will go
up $2,000,000 with an expansion to the plant. Long term debt will
increase to $2,000,000 to help finance the plant expansion and add
$1,137,150 to other LT debt.. You will now have balance sheets for 2015
and 2016 for ICS Manufacturing.
Using the 2015 and 2016 financials for ICS, complete the following –
show calculations and/or numbers you used to derive your answer:
3. ICS wants to take around $400,000 of its cash and invest in
marketable securities. They anticipate receiving around $7.5% interest
on their investment and would like to have it held for 10 years. What
will be the FV of this $400,000 investment?
4. ICS believes they will only gain a 6% return on their $400,000
investment. Using the Rule of 72, how many years will it take to double
their investment?
5. ICS plans on expanding their plant and will fund $2,000,000. Part
of the funding will come from cash, but the balance of $775,000 will be
financed. The interest rate will be 5% and ICS plans on borrowing the
funds for 4 years. Prepare a loan amortization schedule for the 4 years
with 5% interest for the $775,000 and assume making one payment per
year. Show the schedule.
6. Using your 2015/2016 Income Statement and Balance Sheet, add a
column for percentage of total. Compute the percentages for each line
item for the financial statements. For the 2015 Income Statement, what
is the percentage of COGS as compared to total sales? Is this figure
reasonable and what is COGS and why is it important to a company?

7. Financial Ratios provide information to analyze a company’s
performance. Solve the following ratios for 2015 and 2016 using the
Income Statement and Balance sheets you prepared for ICS
Manufacturing.
a. Current Ratio – current assets/current liabilities
b. Quick Ratio – (current assets – inventories)/current liabilities
c. Cash Ratio – cash/current liabilities
d. Debt Ratio – total liabilities/total assets
e. Cash Coverage Ratio – (EBIT + depreciation/interest expense
f. Inventory Turnover – cost of goods sold/inventory
g. Receivables Turnover – sales/accounts receivable
h. Total Asset Turnover – sales/total assets
i. Profit Margin – net income/sales
j. Return on Equity – net income/total owner’s equity
8. Find the industry ratios for the company using the Dun &
Bradstreet® Key Business Ratios. Locate the Dunn & Bradstreet
Database by accessing the University of Phoenix Library and then
locating Library Resources. Click on Alphabetical List of Resources and
find Dunn and Bradstreet. Click on the link and search for your selected
company. ISC is a manufacturing company of plastic parts for the
automotive industry – try and select a company closest to our company.
Please use 3089 Plastic Products and NAICS of 326199 for
manufacturing using 2014 data and the lower amount. Only provide the
Quick and Current Ratios from 2015/2016 from problem 7 and add the
ratios from Dun & Bradstreet to compare and briefly suggest what
direction ICS should head into with the comparison.
9. ICS plans to expand their operations as stated in Problem 5 – and
are considering taking the loan – however, they have a few investors that
are interested in lending money for this venture. They need a total of
$775,000, and if they lend the money today, ICS will repay it, with

interest, at the end of the year. Company A agrees to lend $300,000 and
they require 5% interest, Company B will lend $200,000 at 6% interest,
and Company C will loan the balance but they won’t settle for less than
10% interest. What is the weighted average cost of this capital
(WACC)?
10. In 250-350 words, explain what cash flow is and why cash is so
important to a business.
Include in your analysis the cash that ICS maintains on hand and
whether it is sufficient or not.
*********************************************************
FIN 419 Week 5 Individual My FinanceLab (with
Excel File)
With Excel File (This Tutorial contains excel file to solve question for
any values)
P18-1
Foreign exchange and commodity prices. While traveling in the
following countries, you see twenty-ounce plastic bottles of Coca-Cola.
You know the price in the United States for a Coke is
$0.990.99,
but the countries have the following prices:

Canada:

C$1.54
Japan:
¥155
England:
£0.46
European Union:
euro€0.89
What is the implied exchange rate for U.S. dollars and these four
currencies?
P18-3
You are taking a trip to six European countries. It is a ten-day trip, and
you are taking $ 3900 The current direct conversion rate is $1.1723 for
euros. While in Europe, you spend euro€3 161.323 You convert your
remaining euros back to U.S. dollars upon your return. If the exchange
rates remained the same over your trip, how much do you have left in
U.S. dollars?
P18-4
Currency exchange rates. On the day you arrive in England, the
exchange rate for U.S. dollars and British pounds is $1:pound 0.53 You
have $3900, which you convert to pounds. While you remain in England
for the next two weeks, the exchange rate falls to $1:£0.490 As you
leave England, you convert the £126 you have left to dollars. How
much did you spend in England in U.S. dollars? Did the movement in
the exchange rate help or hurt you?
*********************************************************
FIN 419 Week 5 Learning Team Assignment

International Finance Paper (2 Papers)
This Tutorial contains 2 different Papers
Research an organization that has an international presence.
Write a 1,400- to 1,750-word paper on your organization in which you
complete the following:
• Explain how the global investment banking process has assisted the
organization.
• Explain how regulatory bodies affect financial decision making.
• Identify and evaluate contemporary issues in international financial
management.
*********************************************************

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