post fin201 full course (all discussion +homework +application assignment +final )

Define the term "Statement of Cash Flows." Explain why and how the statement of cash flows is important information you would need to run a business? In your opinion, do the three three main sections of the statement of cash flows also apply to you as you manage your personal or family finances?

Unit 1.2 DB: Internet Search

Search the Internet for any short article related to finance and then post a couple of sentences here about what you've learned or what your thoughts are. Please also post a link to the article so others can access it.

Case Problem 1:

Answer Chapter 1 'Your Turn ... " QUESTIONS 1 - 15 found on page 21 in the Cornett text.

Answer Chapter 2 "Your Turn ... " PROBLEMS 2-1, 2-4, 2-6, 2-7, 2-12, 2-16, 2-24, and 2-34. These problems begin on page 40 of the Cornett text.

This Case problem has a total point value worth 23 points. Each question has a point value of 1 point. Incorrect answers will earn zero points, correct answers will receive 1 point. Submit your assignment via this link, and please be sure to include your name on your work. Any qualitative answers should be written in formal business tone, and should be written in complete sentences. A solution set to the Case problem will be provided to you after you have submitted your work for grading.

Unit 2.1 DB: How to use "Rule of 72" to estimate

The Rule of 72 states that IF rate*time=72, your investment will double.

Referring to the example if $1000 grows to $2000 in ten years, you see that this is a double. Thus, rate * time=72. Plug in the 10 years for time, and the formula becomes...rate * 10 years=72. Thus, rate=7.2%!

QUESTIONS:

Using the Rule of 72, estimate how long it will take to double your investment if you earn 6%?

If you earn 8%?

If you earn 12%?

Case Problem 2

Answer the following "Your Turn ... " PROBLEMS in Chapter 3: 3-2, 3-3, 3-7, 3-9, 3-11, 3-15, 3-18, 3-25

Submit your assignment via this link, and please be sure to include your name on your work.

Unit 3.1 DB: The convention of Present Value

The examples in the text show a unique characteristic (think: sign convention) associated with how the PRESENT VALUE (PV) of a monetary sum (when given) should be expressed when you are solving for future value (FV) of that sum.

What is that characteristic?

Why should this characteristic of PV always be precisely true, and therefore meticulously and dogmatically followed, when calculating future value of a monetary sum?

Case Problem 3

Answer the following "Your Turn" PROBLEMS in the book (beginning on page 92) and submit your answers through this link:

Chapter 4; 4-5, 4-7, 4-8, 4-11, 4-13, 4-16, 4-31, 4-37

Chapter 5; 5-1, 5-4, 5-6, 5-8, 5-15, 5-31, 5-41, 5-52

*NOTE: As a friendly public service announcement, I advise you to always remember this basic formula! By using a small amount of algebra, you can solve for any of the variables in the formula, and therefore answer most questions having to do with the Time Value of Money.

FV Formula

Application Report 1

Application Report 1: Prepare a 2-3 page report, double spaced using proper APA writing style, that compares the finances of Ford Motor Company (stock symbol: F) to the finances of General Motors (stock symbol: GM). Why has Ford been so successful, and why has GM been lagging ? Based on your comparative analysis, which senior management team is more effective and efficient in running the respective corporations over the last three years?

Your report should include topics we have discussed in the course, such as financial statements, financial ratios, and time value of money concepts.

You can find this information in the following sources: "Wall Street Journal," "New York Times," Yahoo Finance, Bloomberg, and company web sites. The company web site will often provide you with the latest fiscal reports in the "investor relations" section.

Structure your composition to include a summary of the recent earnings report. Cite financial numbers, such as those that appear on the earnings statements, balance sheets, and statement of cash flow. Relay financial ratios that we discussed in the previous units, such as:

One or two Liquidity ratios;

One or two Asset Management ratios;

One or two Debt Management ratios;

One or two profitability ratios; and,

One or two Market Value ratios.

Describe the significance of these numbers- what do they indicate ? Explain how your report relates to our course and to practicing managers; it should provide a benchmarking and trend analysis of the firms over a three year period.

As always, submit your assignment through this link and please be sure to include your name and date at the top of your submission.

Unit 4.1 DB: Internet Search

Search the Internet for any short article related to finance and then post a couple of sentences here about what you've learned or what your thoughts are. Please also post a link to the article so others can access it.

Case Problem 4

Answer the following "Your Turn..." PROBLEMS in your book. As always, submit your work by uploading through this link:

Chapter 6: 6-1, 6-2, 6-5, 6-7, 6-15

Chapter 7: 7-7, 7-9, 7-13, 7-15, 7-21

Chapter 8: 8-15, 8-19, 8-25, 8-33, 8-34

Unit 5.1 DB: Key Term Credit Facility

In this article, what is the meaning of the term "credit facility"?

Case Problem 5

Case Problem 5

Answer the following "Your Turn..." PROBLEMS in your book. As always, submit your work by uploading through this link.

Chapter 9: 9-1, 9-2, 9-7, 9-8, 9-15, 9-16, 9-23, 9-24

Chapter 10: 10-1, 10-2, 10-7, 10-8, 10-11, 10-15, 10-17, 10-18

Unit 6 DB: Practice Questions for the Final Exam

Here are some practice questions designed to prepare you for the final exam. Work together to solve these questions.

Solve the following using The Rule of 72.

You expect to earn 8% per year on your investment. If you invest $3000 today, how much will your investment be worth in 9 years ?

You want to have $40,000 available to finance a trip around the world in 12 years. You estimate that you can earn 12% on your investment. How much do you need to deposit today to meet your goal ?

A new Grady White fishing boat cost $5000 in 1979. Today, the very same boat costs around $40,000. Estimate the average annual inflation rate, using the Rule of 72.

You invest $2000 today and expect ot earn 9% per year. how many years will it take for your investment to grow to $32,000 ?

Weighted average cost of capital (WACC)

Case Problem 6

Answer the following "Your turn ... " PROBLEMS in your text book. As always, submit your work by uploading the problem set through this link.

Chapter 11: 11-1, 11-3, 11-5, 11-7, 11-9, 11-10, 11-16, 11-17, 11-20, 11-21

Chapter 12: 12-1, 12-3, 12-5, 12-6, 12-13

Unit 7 DB: Flotation Costs

Define the term: Flotation Costs.

Why should we expect the flotation costs for debt to be significantly lower than those for equity?

Case Problem 7

Case Problem 7

Answer the following "Your Turn..." PROBLEMS in your book. As always, submit your work by uploading through this link.

Chapter 13: 13-1, 12-2, 13-3, 13-4, 13-5, 13-6, 13-7, 13-8, 13-13, 13-14, 13-17, 13-19, 13-21, 13-22, 13-28

pplication Report 2

Compose a 4-6 page report, double-spaced, on the following topic. Be sure to illustrate your report with relevant financial numbers and data, and to explain the significance of this data.

BACKGROUND INFORMATION: During the Carter administration, long-term US Treasury yields exceeded 15%, and short-term T-Bills yielded near 20%. After Reagan's inauguration, interest rates began to fall as Fed Chairman Volcker's restrictive monetary policy succeeded in containing inflation. Over the past 25 years, US rates have steadily declined: T-Bills are hovering under 1% and the long bond is yielding about 4%.

Lately, though, rising oil prices have incited inflationary forces. China and other developing nations have increased their consumption for oil, metals, materials, and food. Thus, both foreign and domestic factors have spurred demand and are contributing to rising prices on a global scale. In addition to this commodity-induced inflation, US consumers are faced with rising costs for essential services such as healthcare and education.

The Chairman of the Federal Reserve, Ben Bernanke, is faced with a dilemma. Should the Fed increase rates to contain inflation; or, should the Fed keep rates very low to spur the US economy which is beset by a collapse in home values, an extensive banking crisis, and a faltering stock market ?

YOUR ASSIGNMENT: Given this economic background...Compose a 4-6 page report, double-spaced, on the following topic: If the Fed decides to raise interest rates next year, what effect would rising rates have upon the following: (1) Consumer financing for big-ticket items such as autos and homes; (2) the present and future values of annuities; (3) the NPV calculation; (4) the WACC; (5) corporate earnings ?

Be sure to illustrate your report with relevant financial numbers. Hint: for topic (3), above, one approach you might adopt is to cite the NPV calculation from previous case problems, then to contrast it against a new calculation performed with a higher interest rate. Cite the numeric effect upon the NPV, and then explain its rationale and its significance. This is the kind of "numeric illustration" that you should provide for each of the five topic sections.

Final exam