FIN 350 Fundamentals of Business Finance Full Course

Module 3 DQ1
Is it possible for a firm to have a positive profit and yet have a negative cash flow? Describe a scenario under which
this might occur? Where does the money from profits go in such a case?
Module 3 DQ2
If you were to examine the cash budgets of almost any organization, you would find distinct seasonal patterns of cash
inflows and outflows These patterns cause months during the year when almost every business is flush with cash,
and other months in which things are extremely tight Select an organization in which you are (were) employed, and
describe the seasons of the year when this firm was flush with cash and the seasons when this firm was typically on a
tight budget Why did these times occur?
Grand canyon Fin350 Week 4 Module 4 DQ1 & DQ 2
Module 4 DQ 1
One of the basic financial principles is that the value of any asset (whether it be a stock, a bond, or a firm as a whole)
is the present value of that asset’s future cash flows As you learned in this chapter, finding present values requires
determining a discount rate Assume you want to buy a business, and you want to find the present value of its future
cash flows Name at least one variable you should consider in determining the correct discount rate to use and explain
its role in discount rate determination If possible, try to identify a variable that has not yet been mentioned by your
classmates
Module DQ 2
Look at the Focus on Ethics box (“How Fair Is Check Into Cash”) in Chapter 5 of the textbook These, businesses
quote an interest rate of 15% to loan customers (most of whom are fairly unsophisticated) and yet the EAR of the
loan is close to 400% Explain the wide discrepancy between these rates What do you believe is the correct regulatory
response to these types of lenders?
Grand canyon Fin350 Week 5 Module 5 DQ1 &DQ 2
Module 5 DQ 2
Several stock valuation models were described in the chapter, including zero-growth, constant growth, variable
growth, free cash flow, book value, and P/E multiple models Which of these do you believe would generate the most
accurate value estimates for most firms? Explain your choice
Module DQ 1
There is an inverse relationship between interest rate changes and changes in the market price of outstanding bonds
Explain the logic behind this principle Given this relationship, do you believe it is currently a good time to buy bonds?
Why or why not?
Grand canyon Fin350 Week 6 Module 6 DQ1 &DQ 2
Module 6 DQ1
Several stock valuation models were described in the chapter, including zero-growth, constant growth, variable
growth, free cash flow, book value, and P/E multiple models Which of these do you believe would generate the most
accurate value estimates for most firms? Explain your choice