Finance Final

In: Business and Management

Submitted By dhendersonnks
Words 660
Pages 3
Mega grocery stores, discount stores, and warehouse clubs often have small profit margins but have high turnover ratios. The small profit margins as a percent of sales exist because of intense competition. The inventory turnover ratios are high because the stores feature the fast selling brands at low prices. Their strategy is that huge sales volumes with small profit margins will still result in adequate net income dollars. In contrast to the stores with low profit margins and high turnover ratios, is a heavy equipment manufacturer with a high demand product that takes six months to manufacture. If this manufacturer has few or no competitors, a great product, and an excellent reputation for service, its profit margin can be very large. Unlike the discount stores, its inventory turnover will be very very low.

Sometimes the simplest advice can be the wisest. The wisest advise I received that can be applied to investments was from Dr. Sanders when he told us to get out of debt before we start investing. As I began to research this, I found that this is in fact a very controversial topic. Some argue that you should invest while getting out of debt, others believe you should invest in hopes that you can make enough profit to get out debt and so on. I personally agree with Dr. Sanders because as stated in Romans 13:7-8, I don’t want to owe any man anything. Proverbs 22:7 goes on to reference a debtor as a slave to the lender. What a sobering thought! Ultimately it’s saying that debt puts us in a position where we lose our independence. Depending on the amount of debt in some cases the creditors are almost in authority’s role. No one or nothing should rule in our lives but God. However the silver lining is we can take back the control by paying of debt. “Paying off debt will provide the discipline needed to save money for investing,” (Mercadante, K. 2014). This will…...

Similar Documents

Finance Final

...Business Finance Summary Business Finance, Investors, Firms and Markets • Investments in assets are important because assets generate the cash flows that are needed to meet operating expenses and provide a return to owners of the business. • Financing decisions involved generating funds internally or form external sources to the business. Such as by issuing debt or equity securities. • Financing charges amount to non-operating cash flows • The required rate of return caters for the costs to both shareholders and debt holders for funds committed to the project. Therefore, using the required rate of return involves the financing charges being incorporated into the discount rate NOT the Net Cash Flows. • Fishers Separation Theorem states:  Two time points: present and future  No uncertainty, outcome of all decisions is known now  No imperfections in the capital market  All decision makers are rational  Companies managers use resources according to shareholders o The theorem assumes that there is certainty and a frictionless capital market in which the interest rates for borrowers equals interest rate for lenders. o Shows a company can make a dividend/investment decision that is in the best interest of all shareholders. o Using ROR it is possible to show that the viability of project will depend on the ROR in respect to interest rate introduced through the capital market o If the interest rate is lower than both projects, then the combination of both......

Words: 5233 - Pages: 21

Finance 370 Final Exam

...assets would need to be highly liquid. Explanation: High liquidity assets, such as cash, decreases the risk of presented by low overall working capital. 14. When the impact of taxes is considered, as the firm takes on more debt Cash flows will increase because taxes will decrease. Explanation: Interest expenses are tax deductible, thus decreasing tax liabilities. 15. Accounting break-even analysis solves for the level of sales that will result in: Net income = $0.00. 16. When calculating the weighted average cost of capital, which of the following has to be adjusted for taxes? Debt Explanation: Debt is multiplied by (1-Tax Rate) in the WACC formula. 17. Which of the following statements best represents what finance is about? Creation and maintenance of economic wealth 18. Apple Two Enterprises expects to generate sales of $5,950,000 for fiscal 2014; sales were$3,450,000 in fiscal 2013. Assume the following figures for the fiscal year ending 2013: cash $70,000; accounts receivable $250,000; inventory $400,000; net fixed assets $520,000; accounts payable $235,000; and accruals $155,000. Use the percent-of-sales method to forecast cash for the fiscal year ending 2014. $120,725 Explanation: 3450000 / 70000 = 0.0203 x 5950000 = 120,725 19. Aspects of demand risk controllable by the firm include: Product quality 20. The Oviedo Thespians are planning to present performances of their Florida Revue on 2 consecutive nights in......

Words: 1304 - Pages: 6

Corporation Finance Final Exam

...TEST NUMBER: ________________ FI 3300 – CORPORATION FINANCE FINAL EXAM Summer 2008 NAME _____________________________________________ STUDENT NUMBER _________________________________ CLASS DAYS/TIME _______________ INSTRUCTOR _________________________ READ THE FOLLOWING DIRECTIONS VERY CAREFULLY. FAILURE TO FOLLOW THESE INSTRUCTIONS WILL ALMOST CERTAINLY RESULT IN YOUR EXAM BEING MISGRADED WHICH WILL ADVERSELY AFFECT YOUR GRADE. IF THERE IS ANYTHING ABOUT THE DIRECTIONS THAT YOU DO NOT UNDERSTAND, ASK YOUR INSTRUCTOR IMMEDIATELY. 1. Fill in your name, student number, and the days and time of the class for which you are registered (for example, T/TH at 5:00pm) on the Answer Sheet as well as on the lines above. 2. In the box on the Answer sheet titled “TEST NUMBER” record the number that appears in the upper right hand corner of this sheet on the line “TEST NUMBER” – since there are multiple versions of the exam, failure to do so may result in your exam being graded with the wrong answer key!!! DO NOT COPY FROM SOMEONE ELSE’S EXAM – YOUR NEIGHBOR MAY HAVE A DIFFERENT VERSION OF THE EXAM!!! 3. Read each question very carefully. Consider all of the answer choices and then select the best correct answer – there is only one best answer per question. Circle the letter answer on the exam and record your answers on the Answer Sheet. NOTE WELL: ONLY THE ANSWER KEY WILL BE GRADED!!! 4. You may use a financial calculator. No notes, formula sheets,......

Words: 2652 - Pages: 11

Final Future of Educational Finance

...Future of Educational Finance Grand Canyon University: EDA-535 October 1, 2014 Gary Marx stated “identifying, monitoring and considering the implications of trends is one of the most basic processes for creating the future” (Stevenson, 2010 p. 1). The world of education is forever changing at a pace that gets more rapid as the years go on. The decisions made in the past have laid the foundation of education today, as will recent changes affect the future. Programs such as choice schooling and No Child Left Behind will impact school funding. Rulings such as the Lemon Test and separation of church and state will impact decisions that can potentially result in litigation and court rulings dictating educational decisions. In his work regarding educational trends, Kenneth Stevenson (2010) stated, “a continuing recession, escalating political polarization, rising racial/ethnic tensions, a growing national debt, and a widening divide between the haves and the have nots portend a future fraught with unprecedented challenges to and clashes over the form and substance of public education in America” (p.1). Analysis of the Lemon Test The Lemon Test was created by Chief Justice Warren Berger as a result of the court case Lemon v. Kurtzman (1971) and is based on the principles stated in Everson v. Board of Education. The case of Lemon v. Kurtzman (1971) centered on Rhode Island’s Salary Supplement Act. This act approved a salary supplement of up to fifteen percent for......

Words: 4162 - Pages: 17

Principles of Finance Final

...Grantham University Final Exam Chapter 2 Problem 2-4, Pearson Brothers recently reported an EBITDA (Earnings before interest, taxes, depreciation, and amortization) of $7.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? (income statement) The taxable income would be 7.5 less 2 million less depreciation and amortization. $5.5m - $1.8m is the total available to pay taxes and depreciation. $370,000 to pay depreciation and taxes. 3.7-Depreciation =(5.5-Depreciation)*40% 3.7-2.5=(5.5-2.5)*40% (2.0)*40%=1.2 $2,500.000 Depreciation & Amortization Problem 2-7, The Talley Corporation had a taxable income of $365,000 from operations after all operating costs but before (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes. What are the firm’s income tax liability and its after-tax income? What are the company’s marginal and average tax rates on taxable income? (Corporate Tax Liability) Income $365,000 Less Interest deduction (50,000) Plus: Dividends received 4,500 Taxable income $319,500 70% of dividends received are excluded from taxes = $15,000(1 - 0.70) = $4,500 Tax = $22,250 + ($319,500 - $100,000)*0.39 Tax= $22,250 + $85,605 = $107,855 Marginal tax rate is 39 percent Average tax rate is......

Words: 2525 - Pages: 11

Fin 515 Managerial Finance Final Exam

...FIN 515 Managerial Finance Final Exam To Buy this Class Copy & paste below link in your Brower http://homeworkregency.com/downloads/fin-515-managerial-finance-final-exam/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com FIN 515 Managerial Finance Final Exam 1. (TCO A) In the United States, the most common type of business by number of businesses is the _____. (Points : 5) 2. (TCO A) Sole proprietorships have all of the following advantages except (Points : 5) 3. (TCO B) Which of the following would cause the future value of an annuity to decrease? (Points : 5) 4. (TCO B) Which of the following is an annuity due? (Points : 5) 5. (TCO G) What are the names of the four components of the DuPont Identity and how are they calculated? What does each measure? (Points : 20) 6. (TCO D) A stock pays an annual dividend of $2.50 and that dividend is not expected to change. Similar stocks pay a return of 10%. What is P0? (Points : 20) 7. (TCO D) A stock has just declared an annual dividend of $2.25 to be paid one year from today. The dividend is expected to grow at a 7% annual rate. The return on equity for similar stocks is 12%. What is P0? (Points : 20) 8. (TCO D) A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? (Points : 10) 9. (TCO D) A bond currently sells for $1,000 and......

Words: 502 - Pages: 3

Fin 515 Managerial Finance Final Exam Answers

...FIN 515 Managerial Finance Final Exam Answers http://homeworklance.com/downloads/fin-515-managerial-finance-final-exam-answers/ FIN 515 Managerial Finance Final Exam Answers (TCO A) In the United States, the most common type of business by number of businesses is the _____. (Points : 5) (TCO A) Sole proprietorships have all of the following advantages except (Points : 5) (TCO B) Which of the following would cause the future value of an annuity to decrease? (Points : 5) (TCO B) Which of the following is an annuity due? (Points : 5) (TCO G) What are the names of the four components of the DuPont Identity and how are they calculated? What does each measure? (Points : 20) (TCO D) A stock pays an annual dividend of $2.50 and that dividend is not expected to change. Similar stocks pay a return of 10%. What is P0? (Points : 20) (TCO D) A stock has just declared an annual dividend of $2.25 to be paid one year from today. The dividend is expected to grow at a 7% annual rate. The return on equity for similar stocks is 12%. What is P0? (Points : 20) (TCO D) A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? (Points : 10) (TCO D) A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments are made semiannually. What is its YTM?......

Words: 466 - Pages: 2

Fin 515 Managerial Finance Final Exam Answers

...FIN 515 Managerial Finance Final Exam Answers http://homeworklance.com/downloads/fin-515-managerial-finance-final-exam-answers/ FIN 515 Managerial Finance Final Exam Answers (TCO A) In the United States, the most common type of business by number of businesses is the _____. (Points : 5) (TCO A) Sole proprietorships have all of the following advantages except (Points : 5) (TCO B) Which of the following would cause the future value of an annuity to decrease? (Points : 5) (TCO B) Which of the following is an annuity due? (Points : 5) (TCO G) What are the names of the four components of the DuPont Identity and how are they calculated? What does each measure? (Points : 20) (TCO D) A stock pays an annual dividend of $2.50 and that dividend is not expected to change. Similar stocks pay a return of 10%. What is P0? (Points : 20) (TCO D) A stock has just declared an annual dividend of $2.25 to be paid one year from today. The dividend is expected to grow at a 7% annual rate. The return on equity for similar stocks is 12%. What is P0? (Points : 20) (TCO D) A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? (Points : 10) (TCO D) A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments are made semiannually. What is its YTM?......

Words: 466 - Pages: 2

Final Exam Finance 370 Uop

...set appropriate equilibrium thresholds. D. determine the optimal amount of debt financing to use. 22) How long will it take $750 to double at 8% compounded annually? A. 9 years B. 6.5 years C. 48 months D. 12 years 23) Which of the following is the formula for compound value? | | A. | | FVn = P(1+i)n | | | 24) The present value of a single future sum: | | | | | D. | | depends upon the number of discount periods. | | 25) Which of the following is NOT considered a permanent source of financing? | | A. | | Corporate bonds | | B. | | Common stock | | C. | | Commercial paper | | D. | | Preferred stock | | | 26) A toy manufacturer following the hedging principle will generally finance seasonal inventory build-up prior to the Christmas season with: | | D. | | trade credit. | | | 27) Which of the following is considered to be a spontaneous source of financing? | | A. | | Operating leases | | B. | | Accounts receivable | | C. | | Accounts payable | | D. | | Inventory | | | 28) We compute the profitability index of a capital-budgeting proposal by: | | A. | | multiplying the IRR by the cost of capital. | | B. | | dividing the present value of the annual after-tax cash flows by the cost of capital. | | C. | | multiplying the cash inflow by the IRR. | | D. | | dividing the present value of the annual after-tax cash flows by the cost of the project. | | | ......

Words: 6158 - Pages: 25

Pa 581 Final Exam Government Budget and Finance

...PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE To purchase this visit following link: http://www.activitymode.com/product/pa-581-final-exam-government-budget-and-finance/ Contact us at: SUPPORT@ACTIVITYMODE.COM PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller Pa 581 Final Exam Government Budget and Finance 100% Correct Keller Activity mode aims to provide quality study notes and tutorials to the students of PA 581 Final Exam Government Budget and Finance in order to ace their studies. PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE To purchase this visit following link: http://www.activitymode.com/product/pa-581-final-exam-government-budget-and-finance/ Contact us at: SUPPORT@ACTIVITYMODE.COM PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller Pa 581 Final Exam Government Budget and Finance 100% Correct Keller Activity mode aims to provide quality study notes and tutorials to the students of PA 581 Final Exam Government Budget and Finance in order to ace their studies. PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE To purchase this visit following link: http://www.activitymode.com/product/pa-581-final-exam-government-budget-and-finance/ Contact us at: SUPPORT@ACTIVITYMODE.COM PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller Pa 581 Final Exam......

Words: 729 - Pages: 3

Finance Final Project Financial Company Analysis

...Finance Final project Financial Company Analysis Click Link Below To Buy: http://hwcampus.com/shop/finance-final-project-financial-company-analysis/ Or Visit www.hwcampus.com 1. Final project: Financial Company Analysis The course project will require students to complete a thorough financial analysis of an assigned publicly traded corporation. The project deliverable will be a in a structured Word document that includes embedded Excel spreadsheets. During Week 1 students will be given a publicly-traded company to research. Project requirements must include the following analysis: a. One page description of the corporation: it’s products, markets, b. Overall trend assessment of the company’s balance sheet, income statement, and statement of cash flows for the last three years. c. Selected ratio and trend analysis. Ratios must include liquidity, asset management, solvency, profitability, and market value ratios. A three-year ratio analysis is the minimum expectation. d. Analysis of the company’s stock price and EPS trends for the last three years. Analysis must include comparison to key market competitors. e. Evaluation of the firm’s Beta in relation to a specified market index (eg. S&P 500, Nasdaq 100, Dow 30). f. Assessment of the firm’s capital structure including any significant changes in the firm’s capital structure over the last three to five years. g. Calculate the WACC (weighted average cost of capital) based on the most recent......

Words: 451 - Pages: 2

Fin 515 Managerial Finance Final Exam

...FIN 515 Managerial Finance Final Exam To Buy this Class Copy & paste below link in your Brower http://homeworkregency.com/downloads/fin-515-managerial-finance-final-exam/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com FIN 515 Managerial Finance Final Exam 1. (TCO A) In the United States, the most common type of business by number of businesses is the _____. (Points : 5) 2. (TCO A) Sole proprietorships have all of the following advantages except (Points : 5) 3. (TCO B) Which of the following would cause the future value of an annuity to decrease? (Points : 5) 4. (TCO B) Which of the following is an annuity due? (Points : 5) 5. (TCO G) What are the names of the four components of the DuPont Identity and how are they calculated? What does each measure? (Points : 20) 6. (TCO D) A stock pays an annual dividend of $2.50 and that dividend is not expected to change. Similar stocks pay a return of 10%. What is P0? (Points : 20) 7. (TCO D) A stock has just declared an annual dividend of $2.25 to be paid one year from today. The dividend is expected to grow at a 7% annual rate. The return on equity for similar stocks is 12%. What is P0? (Points : 20) 8. (TCO D) A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? (Points : 10) 9. (TCO D) A bond currently sells for $1,000 and......

Words: 502 - Pages: 3

Finance Final Project Financial Company Analysis

...Finance Final project Financial Company Analysis Click Link Below To Buy: http://hwcampus.com/shop/finance-final-project-financial-company-analysis/ Or Visit www.hwcampus.com 1. Final project: Financial Company Analysis The course project will require students to complete a thorough financial analysis of an assigned publicly traded corporation. The project deliverable will be a in a structured Word document that includes embedded Excel spreadsheets. During Week 1 students will be given a publicly-traded company to research. Project requirements must include the following analysis: a. One page description of the corporation: it’s products, markets, b. Overall trend assessment of the company’s balance sheet, income statement, and statement of cash flows for the last three years. c. Selected ratio and trend analysis. Ratios must include liquidity, asset management, solvency, profitability, and market value ratios. A three-year ratio analysis is the minimum expectation. d. Analysis of the company’s stock price and EPS trends for the last three years. Analysis must include comparison to key market competitors. e. Evaluation of the firm’s Beta in relation to a specified market index (eg. S&P 500, Nasdaq 100, Dow 30). f. Assessment of the firm’s capital structure including any significant changes in the firm’s capital structure over the last three to five years. g. Calculate the WACC (weighted average cost of capital) based on the most recent......

Words: 451 - Pages: 2

Mbaa 518 Managerial Finance Final Paper

...MBAA 518 Managerial finance Final Paper http://homeworklance.com/downloads/mbaa-518-managerial-finance-final-paper/ Write a short concise stock recommendation report for a firm in which you would recommend as a buy. You are correct that this is not an investments class but as you take a look at the examples provided you will see the application of various topics studied in this course. You will see ratios discussed, discounted cash flow valuation applied, growth opportunities analyzed and ultimately whether or not the investment opportunity is one that should be pursued. This investment opportunity and determining the risk, reward and valuation all are discussed throughout this course . Your paper will be in the range of 2 to 3 pages formatted similarly to the examples provided. References must be included and those should be referenced using the latest APA guidelines. Must include a brief discussion of the industry and industry outlook and where the firm being analyzed stands and performs in the industry. You will not that ratio analysis is often used but the ratios may vary by industry. In other words the key ratios used to analyze firms in industry “A” are not the same ratios used to analyze firms in industry “B”. Valuation is often considered using more than one method. Discounted cash flows may be used in conjunction with an appropriate ratio (again the ratio likely varies across industry). How does the current share price compare to what your analysis values the...

Words: 395 - Pages: 2

Pa 581 Final Exam Government Budget and Finance

...PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE To Purchase this tutorial visit following link http://wiseamerican.us/product/pa-581-final-exam-government-budget-finance/ Contact us at: SUPPORT@WISEAMERICAN.US PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100% Correct Keller PA 581 FINAL EXAM GOVERNMENT BUDGET AND FINANCE PA 581 Final Exam Government Budget and Finance 100%......

Words: 678 - Pages: 3