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1 FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

2 FIN 571 Entire Course+ Final Guide FOR MORE CLASSES VISIT www.fin571genius.com FIN 571 Week 1 Financial Ratio Analysis (Walmart) FIN 571 Week 1 Financial Ratio Analysis (General Motors) FIN 571 Week 2 Stock Valuation and Analysis (Apple) FIN 571 Week 2 Stock Valuation and Analysis (Amazon) FIN 571 Week 2 Stock Valuation and Analysis (Target) FIN 571 Week 2 Stock Valuation and Analysis (Walmart) FIN 571 Week 2 Stock Valuation and Analysis (Ford) FIN 571 Week 3 Using the Payback Method, IRR, and NPV FIN 571 FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

3 FIN 571 Final Exam Guide (New, 2018) FOR MORE CLASSES VISIT www.fin571genius.com Question 1 The underlying assumption of the dividend growth model is that a stock is worth: A.An amount computed as the next annual dividend divided by the required rate of return. B.An amount computed as the next annual dividend divided by the market rate of return. C.The same amount computed as any other stock that FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

4 FIN 571 Week 1 DQ 1 FOR MORE CLASSES VISIT www.fin571genius.com What is ethics? If you follow all applicable rules and regulations, are you an ethical person? FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

5 FIN 571 Week 1 DQ 2 FOR MORE CLASSES VISIT www.fin571genius.com Assume that interest rates have increased substantially. Would this tend to increase or decrease the market value (meaning the price an investor in the firm's paper is willing to pay) of a firm’s liabilities (relative to the book value of liabilities)? FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

6 FIN 571 Week 1 Financial Ratio Analysis (Apple) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions. Assignment Steps Select a Fortune 500 Company from one of the following industries: Pharmaceutical FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

7 FIN 571 Week 1 Financial Ratio Analysis (General Motors) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions. Assignment Steps Select a Fortune 500 Company from one of the following industries: Pharmaceutical FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

8 FIN 571 Week 1 Financial Ratio Analysis (Pfizer) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions. Assignment Steps Select a Fortune 500 Company from one of the following industries: Pharmaceutical FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

9 FIN 571 Week 1 Financial Ratio Analysis (Walmart) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to help students gain a better understanding of the financial statements used for corporate financial reporting and the key ratios used to make business decisions. Assignment Steps Select a Fortune 500 Company from one of the following industries: Pharmaceutical FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

10 FIN 571 Week 2 DQ 1 FOR MORE CLASSES VISIT www.fin571genius.com In order to receive proper credit, please reply to this message when posting your answers to WK2 DQ1. Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless?  You own $1 million worth of 90-day Treasury bills. You “roll over” this investment every 90 days by FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

11 FIN 571 Week 2 DQ 2 FOR MORE CLASSES VISIT www.fin571genius.com Suppose r f is 5% and r M is 10%. According to the SML and the CAPM, an asset with a beta of −2.0 has a required return of negative 5% [= 5 − 2(10 − 5)]. Can this be possible? Does this mean that the asset has negative risk? Why would anyone ever invest in an asset that has an expected and FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

12 FIN 571 Week 2 Individual Assignment Business Structure Advice FOR MORE CLASSES VISIT www.fin571genius.com Write a 350 to 700 word response to the following e-mail: Dear Consultant, I am currently starting a business and developing my business plan. I'm in need of some advice on how to start forming my business. I am not sure exactly how it will be financed and whether or not I want to take on partners. FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

13 FIN 571 Week 2 Individual Assignment Ethics and Finance FOR MORE CLASSES VISIT www.fin571genius.com The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the Enron scandal and other instances of accounting fraud. This act was passed to strengthen the role of the Securities and Exchange Commission (SEC). Research a case of corporate financial abuse related to the Sarbanes- Oxley Act of 2002 and apply this to your FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

14 FIN 571 Week 2 Individual Assignment Ratio Analysis Problems FOR MORE CLASSES VISIT www.fin571genius.com Ratio Analysis (Individual Assignment) You may use excel or word.doc format for this assignment. Please post your homework as a word.doc or excel file in the class discussion section below by the due date. FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

15 FIN 571 Week 2 Stock Valuation and Analysis (Amazon) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

16 FIN 571 Week 2 Stock Valuation and Analysis (Ford) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

17 FIN 571 Week 2 Stock Valuation and Analysis (Target) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

18 FIN 571 Week 2 Stock Valuation and Analysis (Walmart) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest. Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

19 FIN 571 Week 2 Stock Valuation and Analysis (Apple) FOR MORE CLASSES VISIT www.fin571genius.com Assignment Steps Resources: Yahoo Finance Select a Fortune 500 Company from one of the following industries: Pharmaceutical Energy Retail Automotive Computer Hardware Manufacturing Mining Access Yahoo Finance and enter the company name. Review the financial information and statistics provided for the stock you FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

20 FIN 571 Week 3 DQ 1 FOR MORE CLASSES VISIT www.fin571genius.com Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons. FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

21 FIN 571 Week 3 DQ 1 FOR MORE CLASSES VISIT www.fin571genius.com Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons. FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

22 FIN 571 Week 3 Individual Assignment Interpreting Financial Results FOR MORE CLASSES VISIT www.fin571genius.com Resource: Financial Statements for the company assigned by your instructor in Week 2. Review the assigned company's financial statements from the past three years. Calculate the financial ratios for the assigned company's financial statements, and then interpret those results against company historical data as well as industry benchmarks: FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

23 FIN 571 Week 3 Researching Industry Financial Statistics FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to allow the students an opportunity to complete their financial evaluation of a company using the financial research database Plunkett Research Online. Plunkett Research Online provides in-depth analysis of a company's financials, comparisons to industry averages, a list of FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

24 FIN 571 Week 3 Team Assignment Financial Statement Interpretation FOR MORE CLASSES VISIT www.fin571genius.com Select three publicly traded companies. Choose one each from the following sectors: manufacturing, service, and retail. At least one of the three companies should be foreign. If possible, choose from among the team members' places of business or similar industries. Calculate the following: Current ratio Quick ratio Net profit margin Asset utilization Financial leverage Analyze the Return on Equity (ROE) for the last 2 years using the DuPont FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

25 FIN 571 Week 3 Using the Payback Method, IRR, and NPV FOR MORE CLASSES VISIT www.fin571genius.com The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods. Assignment Steps Resources: Corporate Finance Create a 350-word memo to management including the following: Describe the use of internal rate of return FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

26 FIN 571 Week 3 Using the Payback Method, IRR, and NPV FOR MORE CLASSES VISIT www.fin571genius.com The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods. Assignment Steps Resources: Corporate Finance Create a 350-word memo to management including the following: Describe the use of internal rate of return (IRR), FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

27 FIN 571 Week 4 Assignment Rate of Return for Stocks and Bonds (2 Papers) FOR MORE CLASSES VISIT www.fin571genius.com The purpose of this assignment is to allow the student an opportunity to calculate the rate of return of equity and debt instruments. It allows the student to understand the effects of dividends; capital gains; inflation rates; and how the nominal rate of return affects valuation and pricing. The assignment also allows the student to apply concepts FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

28 FIN 571 Week 4 DQ 1 FOR MORE CLASSES VISIT www.fin571genius.com Phyllis believes that the firm should use straight-line depreciation for a capital project because it results in higher net income during the early years of the project’s life. Joanna believes that the firm should use the modified accelerated cost recovery system depreciation because it reduces the tax liability during the early years of the FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

29 FIN 571 Week 4 DQ 2 FOR MORE CLASSES VISIT www.fin571genius.com Phyllis believes that the firm should use straight-line depreciation for a capital project because it results in higher net income during the early years of the project’s life. Joanna believes that the firm should use the modified accelerated cost recovery system depreciation because it reduces the tax liability during the early years of the FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

30 FIN 571 Week 4 Individual Assignment Analyzing Pro Forma Statements FOR MORE CLASSES VISIT www.fin571genius.com Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

31 FIN 571 Week 4 Team Assignment Operating Leverage and Forecasting FOR MORE CLASSES VISIT www.fin571genius.com Operating Leverage and Forecasting Problems Team Assignment Please complete the following problems. When calculating earnings per share and PE ratios, please show your work. This problem is similar to the examples shown in the lecture. You manufacture hunting pack systems in China for 80 dollars each, including shipping. The manufacturing FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

32 FIN 571 Week 5 Assignment Capital Market Efficiency Paper (2 Papers) FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market. Students will gain an understanding of the different levels of market efficiency and how behavioral finance can inhibit reaching market transparency. Assignment Steps Resources: FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

33 FIN 571 Week 5 Assignment Effect of Debt Issuance on Stock Valuation FOR MORE CLASSES VISIT www.fin571genius.com Purpose of Assignment The purpose of this assignment is to demonstrate to students how the issuance of debt to purchase outstanding common stock could affect the value of the company's equity and redefine the capital structure. The problem will also allow students to explore the effect of corporate taxes through debt financing. FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

34 FIN 571 Week 5 DQ 1 FOR MORE CLASSES VISIT www.fin571genius.com Because the weighted average is always a correct measure of a required return, why do firms not create securities to finance each project and offer them in the capital market in order to accurately determine the required return for the project? FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

35 FIN 571 Week 5 DQ 2 FOR MORE CLASSES VISIT www.fin571genius.com The development of the new issue junk bond market had important implications for capital structure choice. The existence of a viable junk bond market means that firms can comfortably maintain higher degrees of leverage than they could prior to the development of this market. Do you agree or disagree? Justify your answer. FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

36 FIN 571 Week 5 Individual Assignment DCF and WACC Problems FOR MORE CLASSES VISIT www.fin571genius.com Discounted Cash Flows and WACC Homework Problems Please post the answers (and show your work) in the assignments section by midnight the last day of the week assigned. FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

37 FIN 571 Week 5 Team Assignment Capital Budgeting Assignment, Part 1 (New Heritage Doll) FOR MORE CLASSES VISIT www.fin571genius.com Acting as the executive team for a small company, your team will apply the principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

38 FIN 571 Week 5 Working Capital Simulation Managing Growth, Part 1 (SNC) FOR MORE CLASSES VISIT www.fin571genius.com Acting as the executive team for a small company, your team will apply the principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

39 FIN 571 Week 6 Individual Assignment Working Capital Simulation Managing Growth Assignment FOR MORE CLASSES VISIT www.fin571genius.com Resources: Harvard Business Publishing: Working Capital Simulation: Managing Growth Assignment Ch. 1 - 21 ofFundamentals of Corporate Finance WileyPLUS Assignments All additional resources from each week FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

40 FIN 571 Week 6 Individual Assignment Working Capital Simulation Managing Growth Assignment FOR MORE CLASSES VISIT www.fin571genius.com Resources: Harvard Business Publishing: Working Capital Simulation: Managing Growth Assignment Ch. 1 - 21 ofFundamentals of Corporate Finance WileyPLUS Assignments All additional resources from each week FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

41 FIN 571 Week 6 Team Assignment Capital Budgeting Assignment, Part 2 (New Heritage Doll) FOR MORE CLASSES VISIT www.fin571genius.com The executive team of New Heritage Doll has completed the decision making for capital budgeting for the firm. Now the team must decide which decisions and approach were the best for the company. The executive team must create a presentation to be given to the board members of New Heritage Doll Compare the decisions and results of all members of the team. Create a 20-slide Microsoft® PowerPoint® presentation that includes detailed speaker notes FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

42 FIN 571 Week 6 Working Capital Simulation Managing Growth, Part 2 (SNC) FOR MORE CLASSES VISIT www.fin571genius.com The executive team of New Heritage Doll has completed the decision making for capital budgeting for the firm. Now the team must decide which decisions and approach were the best for the company. The executive team must create a presentation to be given to the board members of SNC. Compare the decisions and results of all members of the team. Create a 20-slide Microsoft® PowerPoint® presentation that includes detailed speaker notes that act as the script FIN 571 GENIUS Lessons in Excellence-- fin571genius.com

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