Category Archives: FIN 370 (NEW)

FIN 370 Week 5 Team Assignment Precision Machines Part 2 (Cash Budget and Strategic Analysis) NEW

FIN 370 Week 5 Team Assignment Precision Machines Part 2 (Cash Budget and Strategic Analysis) NEW

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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FIN 370 Week 5 Question and Problem Set (Ch18-Q3, Ch18-Q11, Ch20-Q8, Ch20-Q14, Ch21-Q4, Ch21-Q7, Ch26-Q1, Ch26-Q2) NEW

FIN 370 Week 5 Question and Problem Set (Ch18-Q3, Ch18-Q11, Ch20-Q8, Ch20-Q14, Ch21-Q4, Ch21-Q7, Ch26-Q1, Ch26-Q2) NEW

Purpose of Assignment
Students should understand the operating and cash cycles of a company, the mechanics in preparing a cash budget, the use of exchange rates and interest rate parity in international finance and valuation of a company in a merger and acquisition.
Assignment Steps
Resources:  Tutorial help on Excel® and Word® functions can be found on the Microsoft®Office website. There are also additional tutorials via the web that offer support for office products.
Complete the following Questions and Problems from each chapter as indicated.
Show all work and analysis.
Prepare in Microsoft® Excel® or Word.
• Ch. 18: Questions 3 & 11 (Questions and Problems section)
• Ch. 20: Questions 8 & 14 (Questions and Problems section)
• Ch. 21: Questions 4 & 7 (Questions and Problems section)
• Ch. 26: Questions 1 & 2 (Questions and Problems section): Microsoft® Excel® template provided for Problem 2
Format your assignment consistent with APA guidelines if submitting in Microsoft® Word.
Click the Assignment Files tab to submit your assignment.
Ch. 18: Questions 3 & 11 (Questions and Problems section)
3.   Changes in the Operating Cycle [LO1] Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change:
a. Average receivables goes up.
b. Credit repayment times for customers are increased.
c. Inventory turnover goes from 3 times to 6 times.
d. Payables turnover goes from 6 times to 11 times.
e. Receivables turnover goes from 7 times to 9 times.
f. Payments to suppliers are accelerated.
11.   Calculating the Cash Budget [LO3] Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2015:
The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.
In March 2015, credit sales were $235,000 and credit purchases were $161,300. Using this information, complete the following cash budget:
Ch. 20: Questions 8 & 14 (Questions and Problems section)
8.   Size of Accounts Receivable [LO1] The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, four days past due. If annual credit sales are $9.75 million, what is the company’s balance sheet amount in accounts receivable?
14.   Credit Policy Evaluation [LO2] The Snedecker Corporation is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if the company should proceed or not. Therequired return is 2.5 percent per period.
Ch. 21: Questions 4 & 7 (Questions and Problems section)
4.   Using Spot and Forward Exchange Rates [LO1] Suppose the spot exchange rate for the Canadian dollar is Can$1.09 and the six-month forward rate is Can$1.11.
a.   Which is worth more, a U.S. dollar or a Canadian dollar?
b.   Assuming absolute PPP holds, what is the cost in the United States of an Elkhead beer if the price in Canada is Can$2.50? Why might the beer actually sell at a different price in the United States?
c.   Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar?
d.   Which currency is expected to appreciate in value?
e.   Which country do you think has higher interest rates—the United States or Canada? Explain.
7.   Interest Rates and Arbitrage [LO2] The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in the United States is .31 percent per month. The interest rate in Great Britain is .34 percent per month. The spot exchange rate is £.573, and the three-month forward rate is £.575. Ignoring transaction costs, in which country would the treasurer want to invest the company’s funds? Why?
Ch. 26: Questions 1 & 2 (Questions and Problems section):
1. Calculating Synergy [LO3] Pearl, Inc., has offered $357 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $319 million as an independent operation. If the merger makes economic sense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger?
2. Balance Sheets for Mergers [LO2] Consider the following premerger information about Firm X and Firm Y:
Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $6 per share. Assuming that neither firm has any debt before or after the merger, construct the postmerger balance sheet for Firm X assuming the use of purchase accounting.

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FIN 370 Week 4 Team Weighted Average Cost of Capital NEW

FIN 370 Week 4 Team Weighted Average Cost of Capital NEW

Purpose of Assignment
Students should understand the mechanics in calculating a company’s weighted average cost of capital using the capital asset pricing model (CAPM) and its use in making financial investments.
Assignment Steps
Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft®Office website. There are also additional tutorials via the web that offer support for office products.
Scenario: You work for an investment banking firm and have been asked by management of Vestor Corporation (not real), a software development company, to calculate its weighted average cost of capital, to use in evaluating a new company investment. The firm is considering a new investment in a warehousing facility, which it believes will generate an internal rate of return of 11.5%. The market value of Vestor’s capital structure is as follows:

Source of Capital Market Value
Bonds $10,000,000
Preferred Stock $2,000,000
Common Stock $8,000,000
To finance the investment, Vestor has issued 20 year bonds with a $1,000 par value, 6% coupon rate and at a market price of $950. Preferred stock paying a $2.50 annual dividend was sold for $25 per share. Common stock of Vestor is currently selling for $50 per share and has a Beta of 1.2. The firm’s tax rate is 34%. The expected market return of the S&P 500 is 13% and the 10-Year Treasury note is currently yielding 3.5%.
Determine what discount rate (WACC) Vestor should use to evaluate the warehousing facility project.
Assess whether Vestor should make the warehouse investment.
Prepare your analysis in a minimum of 700 words in Microsoft® Word.
Use Microsoft® Word tables in the presentation if you choose.
Show all calculations and analysis in the presentation.
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 4 Individual WACC and Corporate Investment Decisions NEW

FIN 370 Week 4 Individual WACC and Corporate Investment Decisions NEW

Purpose of Assignment
Students should understand corporate risk and be able to use the financial models learned in the class to evaluate and calculate a company’s weighted average cost of capital and use the analysis to make company investment decisions.
About Your Signature Assignment
This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments may be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.
Assignment Steps
Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft®Office website. There are also additional tutorials via the web that offer support for office products.
Scenario: Wilson Corporation (not real) has a targeted capital structure of 40% long term debt and 60% common stock. The debt is yielding 6% and the corporate tax rate is 35%. The common stock is trading at $50 per share and next year’s dividend is $2.50 per share that is growing by 4% per year.
Prepare a minimum 700-word analysis including the following:
• Calculate the company’s weighted average cost of capital. Use the dividend discount model.  Show calculations in Microsoft® Word.
• The company’s CEO has stated if the company increases the amount of long term debt so the capital structure will be 60% debt and 40% equity, this will lower its WACC. Explain and defend why you agree or disagree. Report how would you advise the CEO.
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 Analysis Frank Smith Plumbing (Calculation and 2 Papers) NEW

FIN 370 Week 4 Cash Flow AnalysisFrank Smith Plumbing (calculation and 2 Papers) NEW

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 Plumbing’s 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 3 Team Assignment Precision Machines Part 1 (annotated bibliography and excel calculation) NEW

FIN 370 Week 3 Team Assignment Precision Machines Part 1 (annotated bibliography and excel calculation) NEW

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 company’s sales shows that the company’s 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.
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FIN 370 Week 3 Risk and Return Problem Sets (7-21,7-27,8-19,8-21,9-33) NEW

FIN 370 Week 3 Risk and Return Problem Sets (7-21,7-27,8-19,8-21,9-33) NEW

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. Safeco’s 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 Lowe’s Companies (Table Attached)

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FIN 370 Week 3 Question and Problem Sets (Ch 9: Q7 & Q8, Ch 10: Q3& Q13, Ch 11: Q 1 & Q7) NEW

FIN 370 Week 3 Question and Problem Sets (Ch 9: Q7 & Q8, Ch 10: Q3& Q13, Ch 11: Q 1 & Q7) NEW

Prepare in Microsoft® Excel® or Word.
• Ch. 9: Questions 7 & 8 (Questions and Problems section)
• Ch. 10: Questions 3 & 13 (Questions and Problems section)
• Ch. 11: Questions 1 & 7 (Questions and Problems section)
Format your assignment consistent with APA guidelines if submitting in Microsoft® Word.
Click the Assignment Files tab to submit your assignment.
• Ch. 9: Questions 7 & 8 (Questions and Problems section)
7.   Calculating IRR [LO5] A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?
8.   Calculating NPV [LO1] For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?
• Ch. 10: Questions 3 & 13 (Questions and Problems section)
3.   Calculating Projected Net Income [LO1] A proposed new investment has projected sales of $635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depreciation is $54,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income?
13.   Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost of $540,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $80,000. The sausage system will save the firm $170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?
• Ch. 11: Questions 1 & 7 (Questions and Problems section)
1.  Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit.
a. What is the variable cost per unit?
b. Suppose NSI incurs fixed costs of $915,000 during a year in which total production is 215,000 units. What are the total costs for the year?
c. If the selling price is $39.99 per unit, does NSI break even on a cash basis? If depreciation is $465,000 per year, what is the accounting break-even point?
7.  Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.

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FIN 370 Week 3 Individual Assignment Risk and Return Analysis Report (2 Papers) NEW

FIN 370 Week 3 Individual AssingmentRisk and Return Analysis Report (2 Papers) NEW

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 Assignment Financial Ratio Analysis NEW

FIN 370 Week 3 Assignment Financial Ratio analysis NEW

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 Microsoft®Office® 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 Microsoft®Word 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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