DISCUSSION 1:
Imagine that you have decided you need a new car, but not any car will do; you have decided to
purchase the car of your dreams. Conduct some research as to the cost of this car. You have
determined in this imagined scenario that you could af

PRESENT VALUE OF A SINGLE CASH FLOW
1. Interest rates are given as annual rates. If semiannual (twice a year) compounding is being used, then you
would make the following adjustments: Halve the rate and double the number of years.
2. The present value of

COMPOUND AND SIMPLE INTEREST
1. A mortgage has an annual rate of 6%. Since payments are made monthly, this is also the compounding period.
What is this mortgages effective annual percentage rate? 6.167%
2. Compounding means that: interest is paid on inter

Corporations often use different costs of capital for different operating divisions. Using an example, calculate the
weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital
for different divisions? I

WEEK 4 REALIZEIT 1 RISKS AND RETURNS
RISKS ASSOCIATED WITH COST OF CAPITAL
1. The required rate of return on a project would use all of the following EXCEPT: WACC (Weighted Average
Cost of Capital).
2. If a firm chooses to utilize the WACC without risk ad

Watch the two videos listed below on the topics of financial risk and reward. Imagine you can interview the
presenters and ask one question about financial risks and rewards. What question would you ask? Why do you
feel that is an important question?
If I

Running head: Identifying & Managing Risks 1
Identifying & Managing Risks
David A. Patch
BUS 401 Principles of Finance
Professor Phillip Sarakatsannis
February 26, 2017
Risk is a part of all our lives. As a society, we need to take risks to grow and devel

Critically reflect on the importance of the risk and return balance. Consider the following:
Can we ever have any return without some type of risk?
If you take on a large risk, are you guaranteed a large return? Why or why not?
What other factors play int

WEEK 5 REALIZEIT 1 RATIO ANALYSIS AND CORPORATE PERFORMANCE
ACCOUNTING STATEMENTS FOR PERFORMANCE INFORMATION
1. Over the period of 2009 to 2011, Sears bonds: Had Moodys ratings that deteriorated each year.
2. When assessing an annual audit report, which

College Education
BUS 401: Essentials of Finance
Instructor: Edward Kaplan
By: Kevin Caudell
Date: 10/03/2016
College Education
Deciding to go to college and pursue your education is a tricky decision these
days. The amount of debt the average person wil

Running head: EVALUATING WILLIAM WRIGLEY JR. COMPANY
1
Evaluating William Wrigley, Jr. Company
BUS 401: Principles of Finance
July 13, 2015
In this paper, the Wrigley Company will be discussed and how it started from nothing
into becoming the worlds large

Running head: EDUCATION FUNDING
1
Education Funding
BUS 401: Principles of Finance
June 29, 2015
EDUCATION FUNDING
2
Education Funding
Deciding to come back to school was a decision that was not so hard to come up with, but
at least I made up my mind to r

. $10,000 will be received exactly 10 years from today. The following statement is true: (Points : 1)
If the interest rate increases, so does the present value of the $10,000.
If the interest rate increases, the present value of the $10,000 decreases.
It

1. Opportunity costs can vary over time and: (Points : 1)
are almost always close to 10%.
represent the highest possible return you can earn on an investment.
are always based on the interest rate offered on bank savings accounts.
set a return that other

What type of car have you selected, and what will it cost?
Jeep Patriot 2015
$17,595
What is the interest rate from your local bank for a car loan for four years?
2.74%
What will your payment be to your local bank, assuming your 10% down payment? Be
sure

Running head: Financial Managers Challenges
1
Financial & Ethics Challenges for Financial Managers
David A. Patch
BUS 401 Principles of Finance
Professor Phillip Sarakatsannis
February 4, 2017
Financial management is an integral function in the field of b

Critically reflect on the importance of present and future values. What other qualitative
factors play into present and future value decisions? Perhaps you have opportunities in
your professional life to use present and future values. What are some real o

Assume you are planning to start a new business that will sell innovative consumer products via an online
store. You will be pitching your idea to potential investors with the goal of securing funding. Your
investors are very savvy and want to review a we

NPV and FV
Ashley Plata
BUS 401
Instructor Tiffanie
Deloach
January 9, 2017
Net Present Value (NPV)
NPV is used to compare the value of money that is to be received in the future with
the present value of the same amount of money. (Hickman, 2013).
The val

NPV and FV
Ashley Plata
BUS 401
Instructor Tiffanie
Deloach
January 9, 2017
Net Present Value (NPV)
NPV is used to compare the value of money that is to be received in the future with
the present value of the same amount of money. (Hickman, 2013).
The val

Assume interest rates for bonds today is 5% for an AAA rated bond.
Calculate the price of the bond you have selected relative to the 5%.
Is the bond selling at a premium or a discount? Why?
Be sure to show how you arrived at your answer.
What other factor

CASH CYCLE OF A TYPICAL FIRM
1. Which of the following is NOT one of the three stages of the simple cash cycle? Recognize revenue and
generate A/R.
2. Accounting profits and cash flows can differ because: The matching principle assigns costs based on sale

Income Statement
1. We claim that cash flow is more important than the net income in determining a companys viability. If so, why
do stock prices react to announcements about a companys net income? Net income is a good first estimate of
cash flow.
2. The

Pathbuilder is being used in this course and this discussion is currently locked. Prior to beginning work on this
discussion you must complete the Valuation, Markets, Agency Problems, Forms of Business, Basic Accounting
Concepts, Cash Cycle of a Typical F

Return on Investment: Education Funding
Return on Investment: Education Funding
Siobhan Williams
BUS 401: Principles of Finance
Instructor: Michael Blagg
October 3, 2016
Return on Investment: Education Funding
Return on Investment: Education Funding
Part

Financial Management Challenges and Ethics
Financial Management Challenges and Ethics
Siobhan Williams
BUS 401 Principles of Finance
Instructor James
September 19, 2016
Financial Management Challenges and Ethics
Financial Management Challenges and Ethics

Evaluation of Corporate Performance
Evaluation of Corporate Performance: Hibbet Sports
Siobhan Williams
BUS 401: Principles of Finance
Instructor: Michael Blagg
October 17, 2016
Evaluation of Corporate Performance
Evaluation of Corporate Performance: Hibb

Siobhan Williams
Bus 401 Principles of
Finance
Instructor Michael Blagg
September 24, 2016
Teaching Net Present
Value (NPV) & Future
Value (FV)
NPV
ASHFLO
CASH FLOW
FV
TIME
NPV & FV
Being able to give a value to
cash to be received in the
future is one of

WEEK 3 REALIZEIT 1 - CASH FLOWS FOR CAPITAL BUDGETING
COMPUTING CASH FLOWS
1. When making investment decisions, we focus on incremental cash flows because: We want to compare the
additional cash flows to the cost of the investment.
2. The appropriate cash