FIN 350 Full Course

All Discussions , Practice Problems and CLC Assignments

Winters 2015

FIN 350 Week 1 Module 1 DQ1 & DQ 2

Discussions

Module 1 DQ1

 

Identify a party (other than stockholders) that can be
classified as a stakeholder for a corporation. What obligation does the
corporation have to this party? Describe a situation where stockholder claims
on the organization might conflict with the claims of this stakeholder group.
If you were CEO, how would you resolve these conflicts

 

Module 1 DQ 2

 

During the summer and fall of 2008, the U.S. financial
system and financial systems around the world appeared to be on the verge of
collapse. How did we get into this condition? What did we do to get out of it?
How can we prevent another such scenario in the future?

 

 

 

FIN 350 Week 2 Module 2 DQ1 & DQ 2

 

 

Module 2 DQ1

 

Individuals performing ratio analysis include (1) banks
evaluating potential loan applications from small businesses, (2) investment
analysts evaluating the investment quality of a firm’s stock, and (3) internal
management, assessing the firm’s current strengths and weaknesses. Select one
of the three parties above, and for that party, identify which of the five
ratio groups (liquidity, activity, debt, profitability, or market) would be of
most value and which would probably be of least value. Explain the reasons
behind your choices.

 

 

Module 2 DQ 2

 

 

Who are the major policy makers for the Federal Reserve
System and how do they rise to such an influential position? How do these
policymakers influence national economic objectives? Refer to Figure 5.1 on
page 100 of the textbook. What part of this relationship could be influenced by
the citizens of the country? Why?

 

 

 

 

 

FIN 350 Week 3 Module 3 DQ1 & DQ 2

 

 

Module 3 DQ1

 

Is it possible for a firm to have a positive profit and yet
have a negative cash flow? Describe a scenario under which this might occur?
Where does the money from profits go in such a case?

 

Module 3 DQ 2

If you were to examine the cash budgets of almost any
organization, you would find distinct seasonal patterns of cash inflows and
outflows. These patterns cause months during the year when almost every
business is flush with cash, and other months in which things are extremely
tight. Select an organization in which you are (were) employed, and describe
the seasons of the year when this firm was flush with cash and the seasons when
this firm was typically on a tight budget. Why did these times occur?

 

 

 

 

 

 

FIN 350 Week 4 Module 4 DQ1 & DQ 2

 

 

Module 4 DQ 1

 

 

One of the basic financial principles is that the value of
any asset (whether it be a stock, a bond, or a firm as a whole) is the present
value of that asset’s future cash flows. As you learned in this chapter,
finding present values requires determining a discount rate. Assume you want to
buy a business, and you want to find the present value of its future cash
flows. Name at least one variable you should consider in determining the
correct discount rate to use and explain its role in discount rate
determination. If possible, try to identify a variable that has not yet been
mentioned by your classmates.

 

Module 4 DQ 2

 

Look at the Focus on Ethics box (“How Fair Is Check Into
Cash”) in Chapter 5 of the textbook. These, businesses quote an interest rate
of 15% to loan customers (most of whom are fairly unsophisticated) and yet the
EAR of the loan is close to 400%. Explain the wide discrepancy between these
rates. What do you believe is the correct regulatory response to these types of
lenders?

 

 

 

FIN 350 Week 5 Module 5 DQ1 &DQ 2

 

Module 5 DQ 2

Several stock valuation models were described in the chapter,
including zero-growth, constant growth, variable growth, free cash flow, book
value, and P/E multiple models. Which of these do you believe would generate
the most accurate value estimates for most firms? Explain your choice.

Module 5 DQ 1

 

There is an inverse relationship between interest rate
changes and changes in the market price of outstanding bonds. Explain the logic
behind this principle. Given this relationship, do you believe it is currently
a good time to buy bonds? Why or why not?

 

 

FIN 350 Week 6 Module 6 DQ 1 & DQ 2

 

Module 6 DQ 1

Several stock valuation models were described in the
chapter, including zero-growth, constant growth, variable growth, free cash
flow, book value, and P/E multiple models. Which of these do you believe would
generate the most accurate value estimates for most firms? Explain your choice.

 

DQ 2

Read the Focus on Ethics box (“Psst! Have You Heard Any Good
Quarterly Earnings Forecasts Lately?”). Explain what quarterly earnings
guidance is, and what purpose it is supposed to serve. If you were a corporate
CEO, would you discontinue this practice? Why or why not?

 

 

 

 

FIN 350 Week 7 Module 7 DQ1 & DQ 2

 

DQ 1

Diversification occurs when stocks with low correlations of
returns are placed together in a portfolio. Identify at least one type of firm
that might exhibit low correlations of returns with the overall stock market?
Explain why the correlations of these firms are expected to be low.

 

DQ 2

In general, the cost of debt capital is lower than the cost
of equity capital. For this reason, it might be expected that firms with high
debt ratios would have a lower weighted average cost of capital. Explain at
least one reason why this is not the case.

 

 

 

 

 

FIN 350 Week 8 Module 8 DQ1 & DQ 2

 

 

DQ 1

 

Which capital investment technique does the discussion in
the textbook favor? Why? Do you agree with this assessment?

 

DQ 2

 

Assume your firm has multiple investments to consider each
with differing risk levels. How can differing risk levels be incorporated into
NPV analysis? How can they be incorporated into IRR analysis?

 

 

 

 

CLC Assignments

 

 

This is a CLC assignment.

 

Read the Track Software case (Integrative Case 2) in your
textbook and answer questions a-g at the end of the case. The case is
cumulative and incorporates concepts learned throughout the course. Keep the
following in mind as your complete the assignment:

 

Unless otherwise noted by your instructor, each question is
worth 10 points.

In question b, calculate EPS for each year 2009-2015.

In question d, make sure to include each ratio listed in
Table 5 of the case for both 2014 and 2015. You will have to calculate the 2015
ratio values.

For question d, you are required to write an evaluation of
each area of performance as part of your answer. Merely citing numerical ratio
values will not earn full credit.

Note that your answers for questions f and g do not
necessarily match.

Answer all questions on an Excel spreadsheet using the same
guidelines for spreadsheet development used for your homework assignments. See
“Guidelines for Developing Spreadsheets” for a full description of additional
requirements.

 

Submit a single spreadsheet file for this assignment, do not
submit multiple files.

Answer each question on a different spreadsheet tab.

Label all numbers, both variables and the final answer.

Use the yellow highlighter on Excel’s top menu bar to
highlight your final answer.

This assignment uses a grading rubric. Instructors will be
using the rubric to grade the assignment; therefore, students should review the
rubric prior to beginning the assignment to become familiar with the assignment
criteria and expectations for successful completion of the assignment.

 

You are not required to submit this assignment to Turnit

 

 

 

 

Practice Problems

FIN 350 Week 1 Module 1 Practice Problems

Complete the following problems from the textbook:

 

Chapter 1, P1-2

Chapter 2, P2-4, P2-6, and Integrative Case 1

Follow these instructions for completing and submitting your
assignment:

 

Do all work in Excel. Do not submit Word files or *.pdf
files.

Submit a single spreadsheet file for this assignment. Do not
submit multiple files.

Place each problem on a separate spreadsheet tab.

Label all inputs and outputs and highlight your final
answer.

Follow the directions in “Guidelines for Developing
Spreadsheets.”

You are not required to submit this assignment to Turnitin.

 

 

 

 

 

 

 

 

FIN 350 Week 2 Module 2 Practice Problems

 

 

Complete the following problems from chapter 3 in the
textbook:

P3-3

P3-6

P3-10

P3-16

P3-18

P3-20

P3-21

Follow these instructions for completing and submitting your
assignment:

 

Do all work in Excel. Do not submit Word files or *.pdf
files.

Submit a single spreadsheet file for this assignment. Do not
submit multiple files.

Place each problem on a separate spreadsheet tab.

Label all inputs and outputs and highlight your final
answer.

Follow the directions in “Guidelines for Developing
Spreadsheets.”

You are not required to submit this assignment to Turnitin.

 

 

 

 

 

FIN 350 Week 3 Module 3 Practice Problems

 

 

Complete the following problems from chapter 4 in the
textbook:

P4-5

P4-6

P4-9

P4-15

P4-18

Follow these instructions for completing and submitting your
assignment:

 

Do all work in Excel. Do not submit Word files or *.pdf
files.

Submit a single spreadsheet file for this assignment. Do not
submit multiple files.

Place each problem on a separate spreadsheet tab.

Label all inputs and outputs and highlight your final
answer.

Follow the directions in “Guidelines for Developing
Spreadsheets.”

You are not required to submit this assignment to Turnitin.

 

 

 

 

 

FIN 350 Week 4 Module 4 Practice Problems

 

Complete the following problems from chapter 5 in the
textbook:

P5-2

P5-6

P5-14

P5-22

P5-29

P5-39

Follow these instructions for completing and submitting your
assignment:

 

Do all work in Excel. Do not submit Word files or *.pdf
files.

Submit a single spreadsheet file for this assignment. Do not
submit multiple files.

Place each problem on a separate spreadsheet tab.

Label all inputs and outputs and highlight your final
answer.

Follow the directions in “Guidelines for Developing
Spreadsheets.”

You are not required to submit this assignment to Turnitin.

 

 

 

 

 

FIN 350 Week 5 Module 5 Practice Problems

 

 

Complete the following problems from chapter 6 in the
textbook:

P6-5

P6-11

P6-17

P6-18

P6-22

Follow these instructions for completing and submitting your
assignment:

 

Do all work in Excel. Do not submit Word files or *.pdf
files.

Submit a single spreadsheet file for this assignment. Do not
submit multiple files.

Place each problem on a separate spreadsheet tab.

Label all inputs and outputs and highlight your final
answer.

Follow the directions in “Guidelines for Developing
Spreadsheets.”

You are not required to submit this assignment to Turnitin.

 

 

 

 

 

 

FIN 350 Week 6 Module 6 Practice Problems

 

Complete the following problems from chapter 7 in the
textbook:

P7-2

P7-8

P7-10

P7-14

P7-17

P7-19

Follow these instructions for completing and submitting your
assignment:

 

Do all work in Excel. Do not submit Word files or *.pdf
files.

Submit a single spreadsheet file for this assignment. Do not
submit multiple files.

Place each problem on a separate spreadsheet tab.

Label all inputs and outputs and highlight your final
answer.

Follow the directions in “Guidelines for Developing
Spreadsheets.”

You are not required to submit this assignment to Turnitin.

 

 

 

 

 

FIN 350 Week 7 Module 7 Practice Problems

 

 

Complete the following problems from chapter 8 in the
textbook:

P8-9

P8-14

P8-27

Complete the following problems from chapter 9 in the
textbook:

 

P9-5

P9-7

P9-9

P9-10

P9-17

Follow these instructions for completing and submitting your
assignment:

 

Do all work in Excel. Do not submit Word files or *.pdf
files.

Submit a single spreadsheet file for this assignment. Do not
submit multiple files.

Place each problem on a separate spreadsheet tab.

Label all inputs and outputs and highlight your final
answer.

Follow the directions in the “Guidelines for Developing
Spreadsheets.”

You are not required to submit this assignment to Turnitin.

 

 

 

 

 

 

 

 

FIN 350 Week 8 Module 8 Practice Problems

 

 

Complete the following problems from chapter 10 in the
textbook:

P10-4

P10-10

P10-11

P10-15

P10-21

P10-24

Follow these instructions for completing and submitting your
assignment:

 

Do all work in Excel. Do not submit Word files or *.pdf
files.

Submit a single spreadsheet file for this assignment, do not
submit multiple files.

Place each problem on a separate spreadsheet tab.

Label all inputs and outputs and highlight your final
answer.

Follow the directions in the “Guidelines for Developing
Spreadsheets” located in the Course Materials.

You are not required to submit this assignment to Turnitin.