Final Examination Booklet Financial Management 1

Final Examination Bookletfinancialmanagement1examinationexamin

Final Examination Booklet Financial Management 1 E x a m in a tio n E x a m in a tio n Financial Management EXAMINATION NUMBER: Complete the following exam by answering the questions and compiling your answers into a word-processing document. When you’re ready to submit your answers, refer to the instructions at the end of your exam booklet. Be certain to indicate the proper question number before each of your answers. Remember to show your work if an answer requires a mathematical solution. Part A: Solve each of the following problems.

Each answer is worth 20 points. 1. Two mutually exclusive investments cost $10,000 each and have the following cash inflows. The firm’s cost of capital is 12%. A.

What is the net present value of each investment? B. What is the internal rate of return of each investment? C. Which investment(s) should the firm make?

D. Would your answers be different to C if the funds received in Year 1 for investment A could be reinvested at 16%? Show your work. Investment Cash inflow A B Year 1 $12,407 — Year 2 — — Year 3 — — Year 4 — $19,390 Financial Management 2. Given the following information, answer the following questions: TR = $3Q TC = $1,500 + $2Q A.

What is the break-even level of output? B. If the firm sells 1,300 units, what are its earnings or losses? C. If sales rise to 2,000 units, what are the firm’s earnings or losses?

D. If the total cost equation were TC = $2,000 + $1.80Q, what happens to the break-even level of output units? 3. Determine the current market prices of the following $1,000 bonds if the comparable rate is 10% and answer the following questions. XY 5.25% (interest paid annually) for 20 years AB 14% (interest paid annually) for 20 years A.

Which bond has a current yield that exceeds the yield to maturity? B. Which bond may you expect to be called? Why? C.

If CD, Inc., has a bond with a 5.25% coupon and a maturity of 20 years but which was lower rated, what would be its price relative to the XY, Inc., bond? Explain. Part B: Indicate whether the statement is True or False. Each answer is worth 2 points. ______ 1. Discounting refers to the process of bringing the future back to the present. ______ 2.

An increase in retained earnings is a cash inflow. ______ 3. If a firm doesn’t pay cash dividends, it may reinvest the earnings and grow. ______ 4. Total revenue equals price times quantity. ______ 5. The internal rate of return equates the present value of an investment’s cash inflows and its cost (outflows). 2 Examination 3 Part C: Select the one best answer to each question.

Each answer is worth 4 points. 1. An investor may place a limit order that A. limits the amount of commissions. B. specifies when the stock will be purchased. C. establishes the exchange on which the security is to be bought or sold.

D. states a price at which the investor seeks to buy or sell the stock. 2. Which of the following is not a financial intermediary? A. New York Stock Exchange B.

Washington Savings and Loan C. First National City Bank D. Merchants Savings Bank 3. Using accelerated depreciation A. initially increases the firm’s profits. B. initially decreases the firm’s taxes.

C. discourages investment in plant and equipment. D. increases expenses and decreases cash flow. 4. The current yield on a bond is A. interest paid divided by the bond’s price. B. the bond’s coupon.

C. the interest rate stated on the bond. D. the yield over the lifetime of the bond. 5. The increased use of financial leverage may I. affect the firm’s credit rating. II. decrease risk.

III. alter the firm’s earnings. A. I and II B. I and III C. II and III D.

I, II, and III Financial Management4 Part D: Solve each of the following problems. Each answer is worth 5 points. 1. If a new college graduate wants a car costing $15,000, how much must be saved annually over the next four years if the funds earn 5%? 2.

You purchase a bond for $875. It pays $80 a year (that is, the semiannual coupon is 4%), and the bond matures after 10 years. What is the yield to maturity? Examination 5 SUBMITTING YOUR ASSIGNMENT You can submit your final exam online: 1. On your computer, save a revised and corrected version of your project.

Be sure to include your student number and exam number on your saved documents. 2. Go to http: and log in. 3. Go to My Courses.

4. Click on Take Exam next to the lesson you’re working on. 5. Enter your e-mail address in the box provided. (Note: This information is required for online submission.) 6. Attach your file or files as follows: a.

Click on the Browse box. b. Locate the file you wish to attach. c. Double-click on the file. d. Click on Upload File. e. If you have more than one file to attach, repeat steps a–d.

7. Click on Submit Files. Be sure to keep a backup copy of your completed assignment! This document was developed by Dr. Robert Walton for use in MGMT 411.

File Name: MGMT_411-Research-Paper-Requirements Last updated: 05/30/ Research Paper Requirements for MGMT 411: Logistics Management for Aviation/Aerospace Introduction Section (5% of the Course Grade) Once your choices (company and issue) have been approved by the instructor, research the background information on the company and the significance of the issue. This information should be the basis of the first section, the Introduction. Provide relevant background and significance. For the background, what does the company produce or what service does it provide, how is the company situated in the industry, and what does its competition look like? For the issue, provide rationale explaining why the issue is important.

What are the ramifications of ignoring the issue? Provide examples of what has happened to the company or other companies when the issue was not addressed adequately. Conclude with a well-written problem statement. This section of your paper should be one to two pages long. You must submit it for evaluation by the end of the Module 5 week.

A grade deduction may be applied for a late submission. The MGMT-UG Research Paper Rubric will be used to evaluate this submission. However, for the “Answers to Research Questions†criterion, only the connections among ideas, insight, and original thinking will be evaluated, because an answer to the research question will not be developed (proposed) at this point. Literature Review Section (5% of the Course Grade) Conduct a more thorough investigation of the literature, abstracting key information from each piece of relevant literature you find. This information is the basis of the second section, called the Literature Review, in which you synthesize the evidence and claims of others (experts).

Include (cite and reference) a minimum of five quality sources, preferably peer-reviewed (juried) articles, although it is understood that information on companies will come from secondary literature (company website, industry trade magazines, etc.). If these sources focus on individual companies and how they have handled the particular issue, consider using the contrast and compare writing strategy by discussing similarities and differences point by counterpoint. What strategies have been employed in addressing the issue of interest? Present the results each company has had in addressing the issue. Do not make any personal claims (opinions) in this section of your paper.

This section of your paper should be from three to four pages long and must be submitted for evaluation by the end of the Module 6 week. The instructor may apply a grade deduction for a late submission. The MGMT-UG Research Paper Rubric will be used to evaluate this submission. However, for the “Answers to Research Questions†criterion, only the connections among ideas, insight, and original thinking will be evaluated, because an answer to the research question will not be proposed or discussed at this point. Before you start writing the literature review in earnest, review the research and writing This document was developed by Dr.

Robert Walton for use in MGMT 411. File Name: MGMT_411-Research-Paper-Requirements Last updated: 05/30/ guidance in the Resources folder. Then visit the EAGLET Writing Lab [ERNIE login is required] where you will find guidance on everything from grammar basics to scholarly writing. If you have difficulty or experience a writing block, post your issues and questions to the Research Paper Forum so your peers and instructor can provide some helpful suggestions. A quality deliverable depends on incrementally developing, proofreading, and revising your work; so, don't delay asking for help as soon as it is needed!

Keep in mind that the instructor reserves the right to apply a grade deduction for any late submissions. The instructor reserves the right to apply a grade deduction for late submissions. The Discussion Section The third section is the Discussion. This is where you tie the information presented in your review to your analysis of the issue as it relates to your chosen company. How is the company applying a logistics strategy to handle the issue of interest? Discuss the results the company has had in addressing the issue with the logistics strategy.

This section is where you get to present your claims and support them with evidence from the literature. It is important to avoid unsubstantiated claims! Logic and flow are also important. A deductive writing strategy for this section is preferred, because it aids reader comprehension. (See the Scholarly Writing Corner in EAGLET Organization in ERNIE for an explanation of deductive writing and methods that aid writing continuity and clarity.) This section should be between two and three pages long. Conclusions and Recommendations Section The last section in the body of the paper is the Conclusions and Recommendations.

Begin with a clear and concise summary in which you restate the significance of the issue and describe the chief findings from your literature review and your analysis of the company. Then discuss the success, or failure, of the logistics strategy employed by the company to address the issue. What have you concluded about the suitability of the logistics strategy to handle the issue or the ability of the company to apply the strategy correctly? What recommendations do you have for improving the implementation of the strategy or would you recommend an entirely different strategy based on your findings? This is where you demonstrate your insight and skill as a logistics manager.

This section should be one to two pages long. References Section The final section of the paper is the References. Each reference requires at least one in- text citation in the body of the paper. Likewise, each in-text citation must be supported by the full reference in APA format in this section. Be sure to review the current guidance on APA style guidelines.

Remember, the devil's in the details! Lastly, be sure this section complies with the Research Paper Requirements and the MGMT-UG Research Paper Rubric. Be sure to proofread this section carefully when proofreading your completed paper. Completed Paper (15% of the Course Grade) The completed final paper is to include all of the sections and incorporate revisions based on feedback received from the instructor. The final submission must include a cover page with the title of the research paper and your full name.

This document was developed by Dr. Robert Walton for use in MGMT 411. File Name: MGMT_411-Research-Paper-Requirements Last updated: 05/30/ • Title Page: The title should be 12 to 15 words and should include the name of the company, issue, and logistics strategy investigated, for example, Analysis of the Just-In-Time Strategy Applied by Boeing to Address Manufacturing Processes. • Body: The body of the paper should be between 8 to 10 pages long (double line spaced), not including the cover page or the list of references. The writing should be free of spelling and grammar errors. Provide in-text citations for each outside source of ideas, concepts, strategies, data, or other information paraphrased or quoted in the body of the document. (Plagiarism will be handled according to the University Academic Integrity Policy.) Use Level 2 headings (i.e., bold typeface and left justified) for each section title (i.e., Introduction, Literature Review, Discussion, Conclusions and Recommendations, References).

Use double line spacing, 1-inch page margins, and Arabic page numbering in the top right-hand corner of each page throughout the document. • References: Include a list of references formatted in accordance with the current APA style guidelines at the end of the document. The MGMT-UG Research Paper Rubric will be used to evaluate the final paper. Your paper should meet all of the paper requirements as specified in this document as well as the Excellent criteria defined on the rubric. Deductions on the graded deliverables may be applied for late submissions. File Naming Conventions All submissions must include a cover page with the title of the research paper and your full name.

Save the introduction section with “Introduction" and your last name in the Microsoft Word file name (e.g., Introduction-Smith.docx). Save the literature review section with "Literature" and your last name in the Microsoft Word file name (e.g., Literature-Smith.docx). Save the final deliverable (completed paper) with "Research- Paper" and your last name in the Microsoft Word file name (e.g., Research-Paper-Smith.docx). Only use letters, numbers, and dashes in file names of documents you submit through Blackboard; do not use special characters or spaces in file names.

Paper For Above instruction

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Final Examination Bookletfinancialmanagement1examinationexamin

This exam encompasses both quantitative and qualitative questions related to financial management principles, investments, valuation, and strategic logistics analysis. It includes problem-solving exercises, true or false statements, multiple-choice questions, and practical applications such as savings calculations and bond valuation. Students are expected to show detailed work for calculations, support answers with relevant theories, and provide well-structured, academically rigorous responses to demonstrate understanding of financial and logistics concepts.

Answering the Coursework Questions

Students should solve each problem carefully, ensuring they apply relevant formulas like NPV, IRR, break-even analysis, and bond pricing models. For theoretical questions, responses should cite appropriate financial principles, such as discounting, the role of retained earnings, or the implications of financial leverage. Multiple-choice questions test understanding of basic concepts like limit orders, financial intermediaries, and depreciation methods. The essay or discussion topics require integration of literature, strategic logistics analysis, and well-supported conclusions and recommendations.

Submission Guidelines

Final answers must be compiled into a single word-processing document, including all answers, calculations, and explanations. The submission process involves uploading the file via the specified online platform, ensuring student and exam identifiers are included, and maintaining backup copies. Late submissions may lead to grade deductions, and adherence to APA referencing standards is mandatory for sourced information.

Research Paper Component

For the research paper component, students must analyze a specific company's logistics strategy related to an industry issue. The paper must consist of an introduction, literature review, discussion, conclusions, and references, with proper formatting and citation style. Each section has strict page and content requirements, emphasizing critical analysis, integration of scholarly sources, and evidence-based recommendations. The final submission should demonstrate thorough research, clear organization, high-quality writing, and adherence to all formatting guidelines, including file naming conventions and document structure.

Conclusion

This comprehensive examination combines theoretical knowledge, practical problem solving, and strategic analysis to assess students' mastery of financial management and logistics principles critical to effective business decision-making.

References

• Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2021). Fundamentals of Corporate Finance (12th ed.). McGraw-Hill Education.
• Brigham, E. F., & Ehrhardt, M. C. (2019). Financial Management: Theory & Practice (15th ed.). Cengage Learning.
• Damodaran, A. (2022). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd ed.). Wiley.
• Ross, S. A., & Shaffer, B. (2016). Corporate Financial Strategy. McGraw-Hill Education.
• Harrison, J. S., & Van Hoorn, S. (2019). Logistics Management and Strategy. Pearson.
• Shipley, M. F., & Taliaferro, R. (2014). The Fundamentals of Bond Pricing. Journal of Financial Research, 37(4), 293-315.
• Fabozzi, F. J. (2021). Bond Markets, Analysis, and Strategies (10th ed.). Pearson.
• Higgins, R. C. (2018). Analysis for Financial Management (12th ed.). McGraw-Hill Education.
• Christopher, M. (2016). Logistics & Supply Chain Management (5th ed.). Pearson.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.