FIN 575 Final Exam UOP Students hand over best Fin 575 final exam, Fin 575 final exam answers free, Fin 575 final exam solved papers, Fin 575 final exam assignments and many related study material of Fin 575 final exam on our UOP Students Examination portal. So UOP Students is the largest tutorial store of Fin 575 final exam in USA. FIN 575 Final Exam (Latest Version) 1. During the project initiation, a project charter is created. The project charter should include which of the following? Project managers expenses Analysis of budget Selection of the senior project manager Projects high-level deliverables 2.A project's budget should be based on a company’s strategy and financial goals profitability financial goals and equity debt load and equity 3.Earned value management is a technique used to integrate projects resources scope, schedule, and resources schedule, costs, and benefits costs and profits
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4. Bill’s Billiards has total assets of $8 million and a total asset turnover of 2.9 times. If the return on assets is 11%, what is Bill's profit margin? 11% 4.10% 2.50% 3.79% 5. What are the acceptance criteria for NPV? If the NPV is less that $0, accept the project. If the NPV is greater than $0, accept the project. If the IRR is equal to 0%, reject the project. If the NPV is equal to the discounted payback, accept the project. 6. The risk response plan answers what question? What can be done if risk occurs? What is the backup plan? What are project costs? There is no need to plan for risk seldom occurs in a project. How risk is to be managed 7. For the most recent year, Cal’s Cats had sales of $380,000, cost of goods sold of $93,000, depreciation expense of $47,000, and additions to retained earnings of $61,420. The firm had $52,000 in interest expense, and 34% tax rate. What were the times interest earned ratio? 2.2 5.8 4.61
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2.8 8. Bob’s Garages has sales of $41 million, total assets of $32 million, and total debt of $11 million. If the profit margin is 12% what is the return on equity (ROE)? 14% 12% 51% 23.40% 9. What are the components of project planning that need monitoring? Resource procurement and quality Project cost and risk Project cost, risk, resource procurement and quality Quality and control 10. During project planning, the project team creates a work breakdown structure that details work tasks that must be completed. The work breakdown structure should include a schedule of when every task will start and be completed schedule of project staff meetings set of management tasks budget analysis 11. The R. M. Senchack Corporation earned an operating profit margin of 6% based on sales of $11 million and total assets of $6 million last year. What was Senchack’s total asset turnover ratio? 1
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0.54 5.4 1.8 12. Why is the communication plan a crucial factor in project success? Ensures the timely generation, collection, storage, and disposition of project information Facilitates upper management communication with the workers Reduces rumors in the organization Communicates the economic value of the project to management 13. A company’s assets are financed with debt equity equity or debt equity and debt 14. Part of financial planning for projects involves the understanding of the inflows and outflows of cash that will be created by the project. What tool can be used to track these cash flows? A NPV flow sheet Profitability work sheet. Project cash flow worksheet Cash flow table 15. Stokes, Inc. has net working capital of $7,900, current liabilities of $5,220, and inventory of $2,000. What is the quick ratio.
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1.89 1.13 1.21 2.1 16. What ratio measures a firm’s degree of indebtedness? Debt ratio Quick ratio Fixed coverage ratio Times interest earned ratio 17. Which one of these terms is a type of debt financing? Stock repurchases plans Collateral Trade credit Bearer bonds 18. The sum of the percentage of equity and debt multiplied by their respective cost is called weighted average cost of capital capital asset pricing model market value added economic value added. 19. Profitability ratios all have what same figure in the numerator? Book value per 5
Net income Price per share Total assets 20. Terry’s Trash removal has a total debt ratio of 0.45. What is the firm’s debt-toequity ratio? 1.27 0.41 0.82 1.82 21. An investment in a project should be undertaken only if the expected return is greater than the NPV WACC payback method economic value added 22. Brenda Smith, Inc. had a gross profit margin (gross profits ÷ sales) of 25% and sales of $9.75 million last year. Seventy-five percent of the firm’s sales are on credit and the remainder are cash sales. Smith’s current assets equal $1,550,000, its current liabilities equal $300,000, and it has $150,000 in cash plus marketable securities. If Smith’s accounts receivable are $562,500, what is its average collection period? 25 days 32 days 28 days 14 days 6
23. You are considering a project with an initial cash outlay of $160,000 and expected free cash flows of $40,000 at the end of each year for 6 years. The required rate of return for this project is 10%. What is the project’s payback period? 4 years 4.5 years 6 years 5 years 24. Project managers manage project cost by monitoring inventory costs monitoring opportunity costs ensuring the work is progressing as planned ensuring retail costs are controlled 25. What is the primary weakness commonly associated with the use of the payback method to evaluate a proposed investment? This approach fails to take into account the time factor in the time value of money. The payback method uses the discounted cash flow process. The payback method is able to recognize cash flows that occur after the payback period. The payback method is not appropriate for evaluating small projects. 26. Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $1,950,000, and the project would generate free cash flows of $450,000 per year for 6 years. The appropriate required rate of return is 9%. Calculate the net present value and the internal rate of return. 7
NPV=$66,098, IRR=10.5 NPV=$72,097, IRR=9.5 NPV=$68,663, IRR=10.2 NPV=$69,368, IRR=10 27. Cost normally falls into the domain of managerial accounting and has 4 essential proposes. Select the answer that is an essential function of cost. Used to calculate earned value cost Used to calculate executive stock options Used to calculate inventory costs Used for planning future activities or budgets 28. Select the answer that is an example of a cost classification? Credit cost Fixed cost Retail cost Inventory cost 29. What are the four secondary processes in project control? Schedule control, change control, risk control, and quality assurance control Value control, Inventory control, schedule control and quality control Organizational control, cost control, inventory control, and risk control Stakeholder control, organization control, risk control, and change control 30.Stokes, Inc. has net working capital of $7,900, current liabilities of $5,220, and inventory of $2,000. What is the current ratio? 2.1 8
0.77 1.89 1.51
Week 2
FIN 575 Week 2 Individual Assignment Project Plan Outline FIN 575 Week 2 Project Plan Outline Review Case Study: Pontrelli Recycling, Inc. in Project Management Accounting, Ch. 7. Prepare an outline of a project plan based on the case study. Describe the seven primary planning activities. Evaluate project execution, efficiency, and alignment with the company’s financial strategy. Illustrate how project control can help mitigate risks for Pontrelli.
Week 3 FIN 575 Week 3 Individual Assignment Project Proposal FIN 575 Week 3 Project Proposal Write no more than a 450- to 1,350-word proposal which applies the methods for calculating a project’s viability. Select one of the following organizations: British Petroleum (BP) Ford Motor Co. Applied Materials 9
Review the organization’s annual report by researching your chosen organization. Write a proposal advising the selected organization on obtaining funding and managing a project budget, to purchase equipment to increase worker safety. The initial investment is $25M and the yearly cash inflows are as follows: Year 2 – $5M Year 3 – $10M Year 4 – $15M Year 5 – $12M Assume all cash flows are at the beginning of the period and a discount rate of 10%. Include the following information in your project proposal: Define business needs in an overview of the project, including high-level deliverables to solve the problem. Describe the net present value (NPV), internal rate of return (IRR), profitability index, and payback methodologies for calculating the projects viability. Examine the strengths and weakness of each methodology. Calculate NPV, IRR, profitability index, and payback method. Explain the rationale for accepting or rejecting the project based on its financial viability. Format your proposal consistent with APA guidelines.
Week 4
FIN 575 Week 4 Learning Team Assignment Financial Ratio Analysis Paper FIN 575 Week 4 Financial Ratio Analysis Paper Select one of the organizations listed in Week Three. For this assignment you must use information provided directly by the selected company using either the company's published annual report, or the financial data in the most recent 10-K 10
report that may be downloaded from the SEC's EDGAR website (https://www.sec.gov/edgar/searchedgar/companysearch.html). Do NOT use third party websites such as Yahoo, Bloomberg, or any other investment advisor site to obtain this data. Write a 1,750- to 2,100-word paper discussing the financial condition of the organization based on the following financial ratio calculations. Include your calculation for each of these: Profitability ratios gross margin operating margin net margin return on assets return on equity Liquidity ratios quick ratio current ratio working capital times interest earned ratio Activity ratios average collection period inventory turnover fixed assets turnover days in inventory
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Solvency ratios debt to equity ratio equity ratio debt ratio Summarize and define the key financial ratios for the organization. You will need to calculate these ratios and use them to determine the organization’s financial condition and answer the following questions. How much has the company borrowed? Is the debt likely to cause financial distress? How liquid is the organization? Is cash readily available? How efficiently is the organization using its assets? Are there signs of inefficient use? How profitable is the organization? Calculate the ROE for the organization you selected and then break down your answer into its component parts using the DuPont method. Explain how the DuPont method can help us understand where a company is having financial troubles. INCLUDE after your References the income statement and the balance sheet that are used to make the calculations. Format your paper consistent with APA guidelines.
Week 5 FIN 575 Week 5 Individual Assignment Project Cost Assignment FIN 575 Week 5 Project Cost Assignment For this assignment, choose from the following options: 
Option 1: Project Cost Presentation 12
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Option 2: Project Cost Video
Read the instructions in Project Cost Assignment Options and select one option to complete the assignment.
Week 6 FIN 575 Week 6 Learning Team Assignment Project Plan Overview FIN 575 Week 6 Project Plan Overview Read the Case Study: Pontrelli Recycling, Inc. in Ch. 7 of the Project Management and Accounting text Prepare no more than a 2,800-word Project Plan Overview of the Pontrelli case. Assume the high level cost estimate for the project is $8.8 million. The focus of this assignment is to develop a plan to finance the $8.8M Pontrelli project. Include the following: What are the strengths and weaknesses of debt and equity financing? Discuss possible sources of debt financing. Propose a strategy for Pontrelli to obtain project financing. Your submission must include one financing proposal that will be a mixture of debt and equity financing, and you must also include an alternative project financing proposal that can be used if the financial decision maker(s) were to not accept your first proposal. Compare and contrast EVA and MVA. Define WACC. How is WACC calculated? What are its strengths and weaknesses? Why is understanding WACC important? Calculate project viability, using the profitability index. Propose an alternate capital structure for Pontrelli. (This will be used if the financial decision maker rejects your first proposal.) Develop an alternate project budget. (This will be used if the financial decision maker rejects your first proposal.) What are the constraints? 13
Create an alternate plan to manage the project budget. (This will be used if the financial decision maker rejects your first proposal.) Using Exhibit 7.8 as a template.
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