Finance For Everyone: Value Coursera Quiz Answers

All Weeks Finance For Everyone: Value Coursera Quiz Answers

In Value, you will explore the most powerful generator of value in the world – ideas. Ideas are the engines of productivity, both in the private and public sectors. You will learn about the universal frameworks that determine how ideas and money interact, leading to the allocation of financial resources. We will identify components of cash flow for any project, business or venture as the most essential ingredients of value.

We also assess the investment techniques used to give life to some ideas while killing others. This course will help you understand pricing, diversification, uncertainty and even behavioural approaches to dealing with risk. Using Nobel Prize-winning insights, you will learn how to measure the size of the risk premium and build valuation models.

We’ll even connect evidence-based science with common-sense analysis to give you better tools for understanding why values are what they are, and for positioning yourself more effectively to participate in financial markets. You will be immersed in case based learning to integrate some of the powerful frameworks introduced in Value.

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Finance For Everyone: Value Coursera Quiz Answers

Week 1

Quiz 1: F4E: Value Introductory Survey

Q1. Why did you choose to participate in Finance for Everyone: Value?

What do you think?

Q2. What do you hope to be able to do by the end of this course?

What do you think?

Q3. Have you ever assessed the value of an idea or investment?

  • Yes
  • No
  • Uncertain

Q4. Have you taken Finance for Everyone: Decisions?

  • Yes, and I completed it
  • Yes, but only partially
  • No

Q5. Have you taken Finance for Everyone: Markets?

  • Yes, and I completed it
  • Yes, but only partially
  • No

Q6. Do you plan to go through all courses of the Finance for Everyone Specialization?

  • Yes
  • No
  • Uncertain at this time

Quiz 2: Investment Techniques

Q1. Which one of the following statements is false regarding investment techniques?

  • The Payback method uses arbitrary cut-off criteria to make accept/reject decisions
  • The Internal Rate of return is a rate that forces the NPV to equal zero
  • A positive NPV suggests accepting the project
  • The ordinary payback period method takes into account the time value of money
  • The Accounting rate of return is an unsophisticated evaluation method

Q2. A project has a discount rate and an internal rate
of return of 5% with a five-year life.
Which if the following must be true?

  • PI (profitability index) = 1
  • NPV = $0
  • Payback equal to 5 years
  • The present value of the future cash flows are greater than the initial investment
  • All of the above are correct
  • Both a and b are correct

Q3. If you spend $150,000 today and receive $30,000 annually in
Years 1 through 4, and $35,000 annually in Years 5 through 9, what is the
payback period for this investment?

  • Over 6 years
  • 5.23 years
  • 4.86 years
  • 4.00 years
  • Less than 4 years

Q4. You are considering investing $1000 in a
business that has the following cash flows and a discount rate equal to 10
percent.

What is the discounted payback?

  • About 4 years
  • About 3.1 years
  • About 2.6 years
  • About 2 years
  • Less than 2 years

Q5. Consider the same
information as you did for question 4. You are considering investing $1000 in a
business that has the following cash flows and a discount rate equal to 10
percent.

Q6. If you invest on average $10,000, and project profits of negative $2,000 in thefirst year, followed by positive $4,000 for years 2 and 3, what is your Average Accounting Rate of Return?

  • 30%
  • 33%
  • 40%
  • 50%
  • 60%

Quiz 3: Making a Difference 1

Q1. In this first week of Finance for Everyone: Value, we have begun to explore the idea of value, the ways in which value can be represented, and valuation techniques used to evaluate ideas.

Reflect on your learning and engagement thus far. What are the takeaway messages that have resonated with you? Are there local or global headlines that are newly grabbing your interest with your growing understanding of how ideas are valued, or how value is created or preserved? What are you eager to learn more about?

Regardless of your key insights, we hope you share them online. Post your key learnings, insights, and/or opinions to your learning portfolio or twitter (and make sure to use the hashtag #F4E in your tweets)! You are free to choose the subject of your learning portfolio blog post or tweet; this way, you can focus on topics that catch your interest the most.

Below, submit the link to the tweet or post you’ve written this week, and please go back to your Course Connections discussion post from this week and add it in there as well!

What do you think?

Week 2

Quiz 1: Cash Flow Assumptions

Q1. The most important variable that drives all cash flows is:

  • revenues
  • opportunity costs
  • working capital
  • accounts receivable
  • stocks

Q2. It is important to make cash flow assumptions explicit because:

  • They provide a rationale behind what will be included in quantifying cash flows
  • They provide a basis to explain or defend a cash flow analysis
  • They make the analysis more transparent
  • of the first two statements only.
  • of first three statements.

Q3. Which one of the following statements is true?

  • Sales on credit, or accounts receivable increase cash flow
  • Current liabilities, including a bank loan decrease cash flow
  • The salvage value generates cash from selling an existing asset today
  • Opportunity costs include assets owned by the firm that could be sold if a project is not undertaken
  • Bonds represent a source of operating cash flow

Q4. Which one of the following statements is true?

  • Accounting profit and cash flow are the same thing
  • All else equal, an increase in the tax rate, increases the value of depreciation tax-savings
  • Investments in net working capital are examples of sunk costs
  • Operating costs are part of opportunity costs
  • If the same amount of net working capital is recovered at the end of the project as was invested initially, than its impact on NPV is positive because the discount rate used is positive

Q5. Which of the following is not a good assumption to identify relevant cash flows?

  • A new long-term investment project should “stand on its own feet” and be viewed as a “mini firm”
  • Sunk costs and financial costs should not be included
  • Opportunity costs that can be attributed to the project should be included
  • Overhead costs that remain fixed should be allocated
  • Changes in working capital should be included

Q6. Which of the following statements are true?

I. To measure relevant project cash flows, the analyst take the difference between “doing” vs. “not doing” a project

II. Depreciation is a non-cash item, but it saves cash taxes

III. Use the average of historical cash flows from similar past projects instead of estimating future cash flows

IV. Include salvage (or terminal) values that recover the initial investment

  • I and II only
  • II and III only
  • I, II and IV only
  • I and IV only
  • All of the statements are true

Quiz 2: Cash Flow Components

Q1. Which of the following is not a relevant cash flow?

  • Initial investment
  • Working capital
  • Sunk costs
  • After-Tax Operating income
  • Depreciation tax savings

Q2. Which of the following will decrease cash flow?

  • Accounts receivable increase
  • Accounts payable increase
  • Depreciation expense increases
  • Tax rates decrease
  • Initial investment decreases

Q3. Which of the following will increase cash flow?

  • Working capital requirements decrease
  • Estimate of salvage value increases
  • Depreciation expenses increase
  • None of the above
  • All of the above

Q4. Green Compost Inc.’s current
operations will generate cash flows of $100,000 in year one, $115,000 in year
two, and $125,000 in year three. The firm
is considering scrapping operations with a new investment of $300,000 which will
instead generate cash flows of $250,000 per year for the next three years. The discount rate is 15 percent. What is the NPV of the new investment? Assume that there is no salvage value and no
tax considerations.

  • $14,704
  • $65,439
  • $256,108
  • $270,806
  • $340,000

Q5. A firm is considering purchasing a massive
3D printer to replace the existing one that cost the company $1 million five
years ago. The new printer will cost $1.8 million, with an expected salvage
value of $150,000 in 3 years. The old printer can be sold for of $200,000 today
and or sold for $10,000 in 3 years. What is the initial investment?

  • $1,000,000
  • $1,450,000
  • $1,600,000
  • $1,800,000
  • $2,800,000

Q6. Suppose you invest $105,000 today that will result in sales of 1000
units in year 1 and 1500 units in year 2. Sales price and variable costs are
$400 and $225 per unit respectively while fixed costs are $125,000 per
year. If depreciation is calculated straight-line
over three years ($105,000/3) and the tax rate is 34%, what is
the cash flow for the project in year 2?

  • $90,750
  • $102,650
  • $126,450
  • $137,500
  • $149,400

Quiz 3: Making a Difference 2

Q1. This second week of F4E: Value was all about cash flows, which are critical to all levels – individual, community, national, and international. We got into the nitty gritty of assumptions and components, and you began your first case experience with this Specialization!

Consider your evolving understanding and level of comfort with valuing an idea. Do you find your confidence in analyzing potential investments is growing? Have you begun to assess any of your own ideas, or ideas important to you? Do you feel more comfortable sharing your critique of ideas with others? Regardless, what are some ideas to help you and your fellow learners increase your confidence and understanding?

We hope you share your key insights online. Post your key learnings, insights, and/or opinions to your learning portfolio or twitter (and make sure to use the hashtag #F4E in your tweets)! You are free to choose the subject of your learning portfolio blog post or tweet; this way, you can focus on topics that catch your interest the most.

Below, submit the link to the tweet or post you’ve written this week, and please go back to your Course Connections discussion post from this week and add it in there as well!

What do you think?

Week 3

Quiz 1: Making a Difference 3

Q1. In this third week of Finance for Everyone: Value, we have looked at various topics to do with market perfection and market correction including the difference between theory and practice, and understanding risk and uncertainty.

As you continue to develop skills in assessing and analyzing the value of an idea, think about how you could apply these skills as you move forward in life. What future ideas, decisions, and situations do you foresee, and how will the skills gained during this course assist you when they occur? How can you use your developing analytical skills from F4E: Value to make a difference in your life, or in the lives of others? Overall, what concepts from Value do you wish to share with others on a local, national, or global scale?

Regardless of your key insights, we hope you share them online. Post your key learnings, insights, and/or opinions to your learning portfolio or twitter (and make sure to use the hashtag #F4E in your tweets)! You are free to choose the subject of your learning portfolio blog post or tweet; this way, you can focus on topics that catch your interest the most.

Below, submit the link to the tweet or post you’ve written this week, and please go back to your Course Connections discussion post from this week and add it in there as well!

What do you think?

Week 4

Quiz 1: Perfection & Correction Parts 1 & 2

Q1. All of the following are true about the efficient market hypothesis,
except:

  • market prices reflect all types of information
  • the weak, semi-strong and strong forms of the hypothesis are tested
  • there are minimal transactions costs and taxes
  • participants have free access to information
  • price is determined when supply meets demand

Q2. Which of the following is not implied by the efficient market hypothesis?

  • most participants assume that the predictions of the model are valid
  • most participants cannot outperform or beat the market
  • prices move in a random walk
  • in the long run, large companies have higher returns than small
    companies
  • more risk should be rewarded by more return

Q3. Most finance textbooks are likely to define risk as:

  • the variability of an expected outcome
  • the possibility of insufficient cash flows
  • the loss of principal
  • the devaluation of a currency
  • unpredictable events

Q4. A firm has a beta of 1.5. The risk free rate is 4% and the return on the market is 12%. The standard deviation is 14%.

According to the Capital Asset Pricing Model (CAPM), the stock should earn:

  • 4%
  • 8%
  • 12%
  • 16%
  • None of the above

Q5. Referring to the same information as in question 4:

Which of the following statements is not true?

  • The total risk of the stock is reflected in its standard deviation
  • The systematic or non-diversifiable risk is reflected in beta
  • The market risk premium is 8%
  • The firm’s risk premium is 12%
  • The market has a beta of 1.5

Q6. Which of the following statements does not reflect conventional wisdom with respect to risk analysis:

  • It’s very hard to time market exits and entries
  • The markets are over-valued and are due for a correction
  • The market rewards additional risk by providing additional return
  • Negatively correlated returns would result in diversification benefits
  • Efficient markets suggest that prices reflect existing information

Quiz 2: End of Course Feedback

Q1. We’d like to take this opportunity to say how much we have appreciated your participation in this course! We want to hear from you, no matter what your intentions were when signing up. The survey should take you no more than about 10 minutes. (please ignore any grades from this survey; Coursera requires non-zero grades for every question, but there are no wrong or right answers)

First, describe one thing you liked about the course: (You may, if you have time and would like to, describe more!)

What do you think?

Q2. Describe one suggested improvement – one you definitely want to see – so we can make the course better for our future learners. The more specific your advice, the better. (And again – if you have time and the inclination, describe more than one improvement)

Some questions you might consider are: how could we have better supported your learning? Were there barriers that prevented you from completing the course or a particular activity?

What do you think?

Q3. How did you find the level of difficulty of Finance for Everyone: Value?

  • Much easier than I expected
  • Easier than I expected
  • Just right
  • More difficult than I expected
  • Much more difficult than I expected

Q4. How did you find the pacing (speed) of the course?

  • Much faster than I expected
  • Faster than I expected
  • Just right
  • Slower than I expected
  • Much slower than I expected

Q5. We’ll now ask you to rate your satisfaction on a variety of course elements. What is your level of satisfaction with the Course Instructor?

  • Excellent
  • Good
  • Fair
  • Poor
  • N/A

Q6. What is your level of satisfaction with the Video Lectures?

  • Excellent
  • Good
  • Fair
  • Poor
  • N/A

Q7. What is your level of satisfaction with the Quizzes?

  • Excellent
  • Good
  • Fair
  • Poor
  • N/A

Q8. What is your level of satisfaction with the Course Connection Activities & Discussion Forums?

  • Excellent
  • Good
  • Fair
  • Poor
  • N/A

Q9. What is your level of satisfaction with the Making a Difference activities?

  • Excellent
  • Good
  • Fair
  • Poor
  • N/A

Q10. What is your level of satisfaction with the Mini-Case Challenge?

  • Excellent
  • Good
  • Fair
  • Poor
  • N/A

Q11. What is your level of satisfaction with the LearnSmart activities?

  • Excellent
  • Good
  • Fair
  • Poor
  • N/A

Q12. Do you have any additional comments regarding any of the above course elements, or about the course in general, that you’d like to provide?

What do you think?
Finance For Everyone: Value Course Review:

In our experience, we suggest you enroll in Finance For Everyone: Value courses and gain some new skills from Professionals completely free and we assure you will be worth it.

Finance For Everyone: Value course is available on Coursera for free, if you are stuck anywhere between a quiz or a graded assessment quiz, just visit Networking Funda to get Finance For Everyone: Value Coursera Quiz Answers.

Conclusion:

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This course is intended for audiences of all experiences who are interested in learning about new skills in a business context; there are no prerequisite courses.

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