Problem #1
The average return is the sum of the returns, divided by the number of returns. The average return for each
stock was:
N
.25 .10 .20 .05 .1000 or 10.00%
X xi N
4
i1
We calculate the variance as:
N
2
2 xi x N 1
i 1
1
.25 .10 2 .10 .10 2 .

Case 5-1: [Pret a Manger] Study Questions
(1) Should Pret a Manger implement its twin shops roll out? Why or why not?
In order to achieve its expansion target of 15%, Pre a Manger could consider to roll
out twin shops with taking the following measures.
I

Kent Chemical
What do you think of the Sterling Partners recommendations?
Sterling Partners recommendations would be beneficial to Kent Chemicals as they
brought it team effort and cohesiveness in company.
What did Kent get for the $1.8 mil fee?
Kent got

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The three growth process of Lenovo experienced a "period of computing" (19841987); "Legend " period (1998-2002); "Lenovo " period (2003- present)
Lenovo Group was founded in 1984 by the Chinese Academy of Sciences calculated
by the investment of 200,00

1 From the beginning of 2000 until its peak in 2012, Apples stock price rose from
$28 to $702, an increase of over 25 times. What specific attributes of their operational
performance account for this stock performance?
Since Apple amass so much so quickel

FINA 3001 - Fundamentals of Finance
Lecture Notes Unit Three
Kaushalendra Kishore
Applying The Valuation Principle
The Time Value of Money
Time Value of Money
A dollar today is better than a dollar in the future.
Just as rent is a landlords compensation

FINA 3001 - Fundamentals of Finance
Lecture Notes Unit Five
Bond Valuation and Bond Markets
All Valuation Problems are the
Same
Establishing the value today of future cashflows is the
central problem of Finance.
Although we will often talk about a speci

FINA 3001 - Fundamentals of Finance
Lecture Notes Unit Seven
(Chapter 2)
Spring 2016
Accounting Review
Converting From Net Income to Cash Flow
Topics Covered
Fundamentals of the Accounting
System
The Impact of Accruals on Cash Flow
2
Accounting and Fina

FINA 3001 - Fundamentals of Finance
Lecture Notes Unit Two
Kaushalendra Kishore
The Valuation Principle
Cost Benefit Analysis
Most business decisions involve the evaluation of the
benefits generated compared the costs incurred
creating the benefits.
If

FINA 3001 - Fundamentals of Finance
Lecture Notes Unit Six
Net Present Value
Evaluating Capital Budgeting Projects
Capital Budgeting
We have spent the past four weeks using TVM
relationships to evaluate the NPV from cashflows
over time.
We will now use

FINA 3001 - Fundamentals of Finance
Lecture Notes Unit Four
Kaushalendra Kishore
Interest Rates, Inflation & The Economy
Periodic Interest Rates
Interest rates can be stated in periods other than
annual. These rates are often multiplied by the
number of

FINA 3001 - Fundamentals of Finance
Lecture Notes Set One
Fall 2015
Kaushalendra Kishore
The Financial Manager and the Firm
1
Introduction
Syllabus Review
Important Course Policies
Why Study Finance?
2
Suggested reading
Saving Capitalism from Capitalis

Solutions: FINA 3001 Section 005, 020
Quiz 1 (50 points)
Part I Multiple Choice (2 Points/Question, 10 Points in total)
Write down the answers in the following box
1
2
3
4
5
a
c
b
a
c
1. Which of the following is true with competitive markets?
a. Competit