FIN 317 Complete Class

FIN 317 Complete Class Click Link Below To Buy: http://hwcampus.com/shop/fin-317/fin-317-complete-class/ Or Visit www.hwcampus.com FIN 317 Complete Class FIN 317 Week 2 Assignment 1 – Business Venture You are stepping into the world of becoming an entrepreneur. For this assignment, and the next three (3), pick an industry and a business you would like to own. This business must require the purchase of new or used equipment as an essential part of running the business (e.g., machine tooling, commercial stove top, dry-cleaning equipment, or commercial printing equipment). Write a one (1) page paper in which you: 1. Describe the industry and the type of business you plan to start. Provide specific details, such as the location, type of customers, and closest or main competition. 2. State why this type of business interests you. 3. Indicate why you believe this business could be successful. Provide support for your rationale. FIN 317 Week 4 Assignment 2 – The Basics of a Start‐Up This assignment investigates the financial needs of your business venture from Assignment 1. Write a three to four (3-4) page paper in which you: 1. Outline the financial start-up needs for this business. Consider such items as cash, equipment, space lease or purchase, raw materials, labor costs, etc. Provide a rationale for your estimates. (This is only a preliminary list. As you progress in the course, this outline will be fine-tuned.) 2. Once you have estimated the start-up needs for this business, determine the best financing options to obtain the needed capital and how you would approach securing this type of financing. Justify your selection. FIN 317 Week 7 Assignment 3 – More of the Basics and Beyond Using the same business you started in Assignment 1, you will continue to build a financial plan for the business. Write a four to five (4-5) page paper in which you: 1. Prepare a pro forma balance sheet for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your balance sheet. 2. Prepare a pro forma income statement for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your income statement. 3. Prepare a pro forma cash budget for the first twelve (12) months of your business. Include the assumptions that you have made when creating the budget. Justify your budget. FIN 317 Week 10 Assignment 4 – Financing an Expansion After twelve (12) years, your business is wildly successful with multiple locations throughout the region. You are now ready to think really big. You want to purchase a huge competitor. (Note: You determine whether the competitor is a privately or publicly held company.) To expand, you will need additional capital from the debt or equity market, or both. Write a five to seven (5-7) page paper in which you: 1. Use one (1) of the valuation techniques identified in Chapters 10 and 11 to calculate the value of the competitor you wish to purchase. Note: You will have to make assumptions; however, your assumptions need to be rationally supported. 2. Analyze the various financial tools available to you to determine the tools that will be most helpful in assessing whether your company can afford to purchase the competitor. Support your response. Imagine you can indeed afford to purchase the competitor; however, you will need an additional $100 million. 3. Examine the options available to you to finance the competitor through the debt market, recommending the best alternative as a result of your analysis. Provide support for your recommendation. FIN 317 Week 5 Midterm Exam True-False Questions 1. Entrepreneurs provide the financing to individuals who think, reason, and act to convert ideas into commercial opportunities and create opportunities. 2. Entrepreneurship is the process of changing ideas into commercial opportunities and creating value. 3. An entrepreneur is an individual who thinks, reasons, and acts to convert ideas into commercial opportunities and to create value. 4. Mark Twain once said, “I was always able to see an opportunity before it became one.” 5. Small businesses, those with less than 500 employees, represent over 99 percent of all employers, and account for about one-half of the gross domestic product in theUnited States. 6. Small and growing enterprises are critical to the U.S. economy; small firms provide 20 to 30 percent of net new jobs. 7. Small high-technology firms are responsible for twice as many product innovations per employee and obtain more patents per sales dollar than large high-technology firms. 8. Phillips and Kirchhoff, using Dun & Bradstreet data, found that 24 percent of new firms were still in existence after two years of operation. 9. Nearly half of business failures are due to economic factors such as inadequate sales, insufficient profits, and industry weakness. 10. Although the risks associated with starting a new entrepreneurial venture are large, there is always room for one more success. 11. Studies by Phillips and Kirchhoff, and by Headd, found that about 38%-40% of new firms survived six years of operation. 12. One study of Inc. magazine’s 500 high-growth firms suggests that about 88 percent of founders feel their firms’ successes are due to extraordinary ideas, while the remaining 12 percent feel their firms’ successes are due to exceptional execution of ordinary ideas. 13. “Fads” are large societal, demographic, or technological trends or changes that are slow in forming but once in place continue for many years. 14. “Fads” are not predictable, have short lives, and do not involve macro changes. 15. Three major megatrends discussed in Chapter 1 include: societal trends or changes, demographic trends or changes, and technological trends or changes. 16. In 1982, Harry Dent identified several major or megatrends shapingU.S.society and the world. 17. The so-called “baby boom” generation applies to people born in theUnited Statesduring the 1946-1964 time period. 18. Perhaps the most important invention shuttling us from an industrial society to an information society is the computer chip. 19. Environmental commerce, or e-commerce, involves the use of electronic means to conduct business online. 20. The Office of Advocacy of the U.S. Small Business Administration documents that “employer firm births” have approached 600,000 annually in recent years. 21. Reasonable estimates place nonemployer (e.g., single person or small family) business started each year at less than 100,000. 22. Bill Gates once said: “I was seldom able to see an opportunity, until it ceased to be one.” 23. A study by Phillips and Kirchhoff using Dun & Bradstreet data found that about three-fourths of new firms were still in existence after two years of operation. 24. Studies by Phillips and Kirchhoff, and by Headd, found that one-half of new firms or new employers were still in existence after four years of operation. 25. Nine principles of entrepreneurial finance are identified and explored in this entrepreneurial finance textbook, 26. The “time value of money” is an important component of the rent one pays for using someone else’s financial capital. 27. A venture’s financial objective is to survive. 28. Private financial markets are a place where standardized contracts or securities are traded on organized security exchanges with restrictions on how they can be transferred. 29. Free cash flow is the net income forecast to be available to the venture’s owners over time. 30. Free cash flows are adjusted for risk and the time value of money when used to calculate the value of a venture. More Questions Included… FIN 317 Week 11 Final Exam Part 1,2 True-False Questions 1. The accounting emphasis on accrued revenue and expenses and depreciation is the same emphasis as that of finance managers. 2. Traditional accounting does not focus on the implicit cost of equity that is the required capital gains to complement dividends. However, evaluation methods exist to determine this value by financial managers. 3. Formal historical accounting procedures include explicit records of debt (interest and principal) and dividend capital costs. 4. Public financial markets are markets for the creation, sale and trade of illiquid securities having less standardized negotiated features. 5. A venture’s “riskiness” in terms of poor performance or failure is usually very high during the maturity stage of its life cycle. 6. A venture’s “riskiness” in terms of poor performance or failure is usually high to moderate during the rapid-growth stage of its life cycle. 7. First-round financing during a venture’s survival stage comes primarily from venture capitalists and investment banks. 8. Startup financing usually comes from entrepreneurs, business angels, and investment bankers. 9. Commercial banks provide liquidity-stage financing for ventures in the rapid-growth stage of their life cycles. 10. A venture’s “riskiness” in terms of the likelihood of poor performance or failure decreases as it moves from its development stage through to its rapid-growth stage. 11. A nominal interest rate is an observed or stated interest rate. 12. The “real interest rate” (RR) is the interest one would face in the absence of inflation, risk, illiquidity, and any other factors determining the appropriate interest rate. 13. The risk-free interest rate is the interest rate on debt that is virtually free of inflation risk. 14. Inflation premium is the rising prices not offset by increasing quality of goods being purchased. 15. “Default-risk” is the risk that a borrower will not pay the interest and/or the principal on a loan. 16. The “prime rate” is the interest rate charged by banks to their highest default risk business customers. 17. Bond ratings reflect the inflation risk of a firm’s bonds. 18. The relationship between real interest rates and time to maturity when default risk is constant is called the term structure of interest rates. 19. The graph of the term structure of interest rates, which plots interest rates to time to maturity is called the yield curve. 20. Liquidity premiums reflect the risk associated with firms that possess few liquid assets. 21. Subordinated debt is secured by a venture’s assets, while senior debt has an inferior claim to a venture’s assets. 22. Early-stage ventures tend to have large amounts of senior debt relative to more mature ventures. 23. Investment risk is the chance or probability of financial loss on one’s venture investment, and can be assumed by debt, equity, and founding investors. 24. A venture with a higher expected return relative to other ventures will necessarily have a higher standard deviation or returns. 25. Historically, large-company stocks have averaged higher long-term returns than small-company stocks 26. The coefficient of variation measures the standard deviation of a venture’s return relative to its expected return. 27. Closely held corporations are those companies whose stock is traded over-the-counter. 28. Typically, the stocks of closely held corporations aren’t publicly traded. 29. Organized exchanges have physical locations where trading takes place, while the over-the-counter market is comprised of a network of brokers and dealers that interact electronically. 30. Market cap is determined by multiplying a firm’s current stock price by the number of shares outstanding. . 31. The excess average return of long-term government bonds over common stock is called the market risk premium. 32. The weighted average cost of capital is simply the blended, or weighted cost of raising equity and debt capital. All the Question are Included…