Select 5 of the following 10 questions (20% each). Each question requires a minimum of 8 complete sentences (a minimum of 2 paragraphs). Your grade depends on the quality and completeness of each answer. Students must work independently and provide their own answers in their own words. Facts and figures should be cited..

Select 5 of the following 10 questions (20% each). Each question requires a minimum of 8 complete sentences (a minimum of 2 paragraphs). Your grade depends on the quality and completeness of each answer. Students must work independently and provide their own answers in their own words. Facts and figures should be cited..

(1) Provide a brief example of net present value, as it is presented in your text. Then, briefly explain how net present value helps explain a firms financial performance. Within the context of net present value, what role does the IRR have in the evaluation process? How would these evaluations influence a firms ability to issue new stock, or bonds?

(2) Provide two distinct examples of calculating capital costs as it relates to capital budgeting. List three key considerations a firm must make in determining its cost of capital? Apply these to each of the 5 investments markets.

(3) Identify four key factors that help process weighted averaging. Provide three examples when weighted averaging is used to help predict financial performance.

(4) What were the origins of the U.S. mortgage crisis? Explain the financial motivations and political circumstances that led up to the collapse and long-term stagnation in the real estate market as discussed in class.

(5) How does technology influence a firms ability to raise capital and in the formation of its investment strategies? Compare the differences with a low tech firm.

(6) What circumstances make depreciation valuable to a firm? Explain the role that depreciation has in managing a firms costs. Provide three examples when it is advantageous to use depreciation. Last, provide three circumstances when depreciation is not necessarily best for a firm.

(7) Briefly explain how the Beta coefficient is used to assess risk. Provide and explain an example of a low risk firm and a high risk firm. Last, identify three factors that contribute to higher beta coefficients.

(8) How can firms use computer simulation to improve their productivity and profitability? Give three examples of how this would be applied for stock analysis. Identify a software program as an example to cite for your answer.

(9) How has the Affordable Care Act hindered investments and employers from hiring more people? Explain and provide example of how the law has discouraged private sector investment. What changes could be done to revitalize private sector investment?

(10) How has online retail activity challenged traditional retail markets? How might this affect the future of American consumerism? How would this affect investor behavior in this market segment?

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