FIN 534 Week 1 Discussion 1

Download here:
http://www.onlinehomework.education/product/fin-534-week-1-discussion-1/

FIN 534 Week 1 Discussion 1

FIN 534 Week 1 Discussion 1

“An Overview of Financial Management”  Please respond to the following:

Determine two (2) reasons why the concept of corporate finance is important to all managers. Support your response with examples of events that demonstrate this importance.

* From the e-Activity, examine ethical behavior within firms in relation to financial management. Provide two (2) examples of companies that have been guilty of ethics-based malfeasance related to financial management and determine why their comeuppance was deserved

Read more ...

FIN 534 Week 1 Discussion 2

Download here:
http://www.onlinehomework.education/product/fin-534-week-1-discussion-2/

FIN 534 Week 1 Discussion 2

“An Overview of Financial Management”  Please respond to the following:

Evaluate the overall importance of financial securities to financial managers. Justify your response.

* From the scenario, recommend two (2) actions that Trevose Fitness Center (TFC) could take in order to raise capital that will, in turn, enable it to reach its expansion goals. Defend your response. Support your recommendation with two (2) real-world examples of successful implementations of these actions.

Read more ...

FIN 534 Week 1 Homework Assignment Chapter 1

Download here:
http://www.onlinehomework.education/product/fin-534-week-1-homework-assignment-chapter-1/

FIN 534 Week 1 Homework Assignment Chapter 1

1. One drawback of switching from a partnership to the corporate form of organization is the following:

a. It subjects the firm to additional regulations.

b. It cannot affect the amount of the firm’s operating income that goes to taxes.

c. It makes it more difficult for the firm to raise additional capital.

d. It makes the firm’s investors subject to greater potential personal liabilities.

e. It makes it more difficult for the firm’s investors to transfer their ownership interests

2. Which of the following statements is CORRECT?

a. The main method of transferring ownership interest in a corporation is by means of a hostile takeover.

b. Two key advantages of the corporate form over other forms of business organization are unlimited liability and limited life.

c. A corporation is a legal entity that is generally created by a state; its life and existence is separate from the lives of its individual owners and managers.

d. Limited liability of its stockholders is an advantage of the corporate form of organization, but corporations have more trouble raising money in financial markets because of the complexity of this form of organization.

e. Although its stockholders are insulated by limited legal liability, the corporation’s legal status does not protect the firm’s managers in the same way; i.e., bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economic conditions

3. Which of the following statements is CORRECT?

a. In a regular partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.

b. Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.

c. A slow – growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.

d. The limited partners in a limited partnership have voting control, while the general partner has operating control over the business. Also, the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy.

e. A major disadvantage of all partnerships compared to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself

4. Which of the following statements is CORRECT?

a. Corporations are at a disadvantage relative to partnerships because they have to file more reports to state and federal agencies, including the Securities and Exchange Administration, even if they are not publicly owned.

b. In a regular partnership, liability for the firm’s debts is limited to the amount a particular partner has invested in the business.

c. A fast-growth company would be more likely to set up as a partnership for its business organization than would a slow-growth company.

d. Partnerships have difficulty attracting capital in part because of their unlimited liability, the lack of permanence of the organization, and difficulty in transferring ownership.

e. A major disadvantage of a partnership relative to a corporation as a form of business organization is the high cost and practical difficulty of its formation

5. Which of the following statements is CORRECT?

a. Most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. However, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships.

b. Due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of U.S. businesses (in terms of number of businesses) are organized as corporations.

c. Most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

d. Large corporations are taxed more favorably than sole proprietorships.

e. Corporate stockholders are exposed to unlimited liability

Read more ...

FIN 534 Week 2 Discussion 1

Download here:
http://www.onlinehomework.education/product/fin-534-week-2-discussion-1/

FIN 534 Week 2 Discussion 1

“Financial Statement, Cash Flow, and Taxes”  Please respond to the following:

• Analyze the importance and impact of financial managers being able to understand financial statements. Provide the rationale behind your analysis.

• Imagine that you are starting a business. Determine the tax considerations that might result in you setting the business up as a proprietorship or a partnership, rather than a corporation. Provide a rationale for your decision

Read more ...

FIN 534 Week 2 Discussion 2

Download here:
http://www.onlinehomework.education/product/fin-534-week-2-discussion-2/

FIN 534 Week 2 Discussion 2

“Analysis of Financial Statements ”  Please respond to the following:

* From the e-Activity, determine why it is sometimes misleading to compare a company’s financial ratios with those of other firms that operate within the same industry. Support your response with one (1) example from your research.

* From the scenario, determine two (2) strategies that TFC could utilize to reach its expansion goals. You may, for example, consider your analysis of TFC’s financial statements, as well as your knowledge of TFC’s excessive cash position. Provide a rationale for your response.

Read more ...

FIN 534 Week 2 Homework Assignment Chapter 2

Download here:
http://www.onlinehomework.education/product/fin-534-week-2-homework-assignment-chapter-2/

1. Below are the year-end balance sheets for Wolken Enterprises:

Wolken has never paid a dividend on its common stock, and it issued $2,400,000 of 10 – year non-callable, long-term debt in 2012. As of the end of 2013, none of the principal on this debt had been repaid. Assume that the company’s sales in 2012 and 2013 were the same. Which of the following statements must be CORRECT?

a. Wolken increased its short-term bank debt in 2013.

b. Wolken issued long-term debt in 2013.

c. Wolken issued new common stock in 2013.

d. Wolken repurchased some common stock in 2013.

e. Wolken had negative net income in 2013

2. On its 2012 balance sheet, Barngrover Books showed $510 million of retained earnings, and exactly that same amount was shown the following year in 2013. Assuming that no earnings restatements were issued, which of the following statements is CORRECT?

a. Dividends could have been paid in 2013, but they would have had to equal the earnings for the year.

b. If the company lost money in 2013, they must have paid dividends.

c. The company must have had zero net income in 2013.

d. The company must have paid out half of its earnings as dividends.

e. The company must have paid no dividends in 2013

3. Below is the common equity section (in millions) of Fethe Industries’ last two year-end balance sheets:

The company has never paid a dividend to its common stockholders. Which of the following statements is CORRECT?

a. The company’s net income in 2011 was higher than in 2012.

b. The company issued common stock in 2012.

c. The market price of the company’s stock doubled in 2012.

d. The company had positive net income in both 2011 and 2012, but the company’s net income in 2009 was lower than it was in 2011.

e. The company has more equity than debt on its balance sheet

4. Which of the following statements is CORRECT?

a. The more depreciation a firm has in a given year, the higher its EPS, other things held constant.

b. Typically, a firm’s DPS should exceed its EPS.

c. Typically, a firm’s EBIT should exceed its EBITDA.

d. If a firm is more profitable than average (e.g., Google), we would normally expect to see its stock price exceed its book value per share.

e. If a firm is more profitable than most other firms, we would normally expect to see its book value per share exceed its stock price, especially after several years of high inflation.

5. Which of the following statements is CORRECT?

a. Depreciation and amortization are not cash charges, so neither of them has an effect on a firm’s reported profits.

b. The more depreciation a firm reports, the higher its tax bill, other things held constant.

c. People sometimes talk about the firm’s net cash flow, which is shown as the lowest entry on the income statement, hence it is often called “the bottom line.”

d. Depreciation reduces a firm’s cash balance, so an increase in depreciation would normally lead to a reduction in the firm’s net cash flow.

e. Net cash flow (NCF) is often defined as follows: Net Cash Flow = Net Income + Depreciation and Amortization Charges

Read more ...

FIN 534 Week 2 Homework Assignment Chapter 3

Download here:
http://www.onlinehomework.education/product/fin-534-week-2-homework-assignment-chapter-3/

1. A firm wants to strengthen its financial position. Which of the following actions would increase its quick ratio?

a. Issue new common stock and use the proceeds to acquire additional fixed assets.

b. Offer price reductions along with generous credit terms that would (1) enable the firm to sell some of its excess inventory and (2) lead to an increase in accounts receivable.

c. Issue new common stock and use the proceeds to increase inventories.

d. Speed up the collection of receivables and use the cash generated to increase inventories.

e. Use some of its cash to purchase additional inventories.

2. Amram Company’s current ratio is 1.9. Considered alone, which of the following actions would reduce the company’s current ratio?

a. Use cash to reduce accounts payable.

b. Borrow using short-term notes payable and use the proceeds to reduce accruals.

c. Borrow using short-term notes payable and use the proceeds to reduce long-term debt.

d. Use cash to reduce accruals.

e. Use cash to reduce short-term notes payable.

3. Which of the following statements is CORRECT?

a. If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days’ sales outstanding will decline.

b. If a security analyst saw that a firm’s days’ sales outstanding (DSO) was higher than the industry average and was also increasing and trending still higher, this would be interpreted as a sign of strength.

c. If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days’ sales outstanding (DSO) will increase.

d. There is no relationship between the days’ sales outstanding (DSO) and the average collection period (ACP). These ratios measure entirely different things.

e. A reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio.

4. Which of the following statements is CORRECT?

a. If two firms differ only in their use of debti.e., they have identical assets, sales, operating costs, and tax ratesbut one firm has a higher debt ratio, the firm that uses more debt will have a higher profit margin on sales.

b. If one firm has a higher debt ratio than another, we can be certain that the firm with the higher debt ratio will have the lower TIE ratio, as that ratio depends entirely on the amount of debt a firm uses.

c. A firm’s use of debt will have no effect on its profit margin on sales.

d. If two firms differ only in their use of debti.e., they have identical assets, sales, operating costs, interest rates on their debt, and tax ratesbut one firm has a higher debt ratio, the firm that uses more debt will have a lower profit margin on sales.

e. The debt ratio as it is generally calculated makes an adjustment for the use of assets leased under operating leases, so the debt ratios of firms that lease different percentages of their assets are still comparable.

5. Which of the following statements is CORRECT?

a. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.

b. If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be the same.

c. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same.

d. If Firms X and Y have the same earnings per share and market-to-book ratio, they must have the same price earnings ratio.

e. If Firm X’s P/E ratio exceeds that of Firm Y, then Y is likely to be less risky and also to be expected to grow at a faster rate.

Read more ...