DSST Principles of Finance case studies
DSST Principles of Finance · Put your knowledge to work in context.
Principles of Finance is one of the business titles in the DSST credit-by-examination catalog, listed by the program as a 3-credit baccalaureate exam. It is aimed at students who already handle introductory finance material and want college credit for it rather than seat time, including undergraduates filling a business requirement, adults returning to school, and service members using DSST testing to move faster toward a degree. The DSST Principles of Finance case studies are 5 cases and about 2,955 words.
1Northline Components: Growth, Capacity, and External Financing
Northline Components had sales of 18.0 million last year and expects 20% growth. Net income was 6% of sales, and the board has kept the dividend payout at 45%.
607 words, about 3 min2Dana Reyes: Lump Sum Versus a Fixed Pension Annuity
Dana Reyes, 58, is retiring from a utility and must choose between a lump sum of 320,000 paid immediately and a fixed annuity of 2,100 per month for 20 years, with the first payment one month from now. The annuity has no cost-of-living adjustment and no survivor benefit.
604 words, about 3 min3Ridgeway Distribution: Cash Conversion Cycle and Trade Credit
Ridgeway Distribution has annual sales of 24 million and cost of goods sold equal to 75% of sales. Inventory is 3.6 million, accounts receivable 4.2 million, and accounts payable 2.7 million.
617 words, about 3 min4Arden Mills: Callable Bonds and Preferred Stock Financing
Four years ago, Arden Mills issued 12-year, 6.5% semiannual-coupon bonds at a 1,000 par value. The bonds are callable three years from now at a call price of 1,030.
576 words, about 3 min5Larkspur Foods: Unequal-Life Packaging Machines
Larkspur Foods must choose between two packaging machines. Machine A costs 420,000, has a four-year life, produces after-tax operating cash inflows of 150,000 per year, and can be sold for 40,000 at the end of four years.
551 words, about 3 min