Montclair State University
School of Business FINC 561
Course Syllabus Summer 2017
Section 21: Wed 6:30 p.m. - 9:40 p.m. Bus School 211 (May 22 Jun 29)
Section 22: Thur 6:30 p.m. - 9:40 p.m. Bus Schoo
Research Article Assignment
The quote below is from John Bogle (former Chairman of Vanguard Investments) and can also
be found on page 176 in the BKM text.
The most fundamental decision of investing i
FINC 561
Module 2 Assignment
1. Assuming a marginal federal, state and local tax rate of 30%, what is the tax
equivalent yield of a triple-tax-free municipal bond yielding 3%? What is the
interpretati
Case Study Assignment FNCE 561
You have been assigned to construct the optimal portfolio comprising two risky assets (Portfolios A & B) while
considering the clients risk tolerance. The attached sprea
Module 8 Assignment: The questions below relate to the readings. Please type all short answer
responses. Responses to questions requiring calculations should be typed or neatly handwritten.
1. What do
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Economists build models:
A.because theories cannot be related to the real world.
B.because they are more complex versions of reality.
C.in order to analyze every variable that could
1. What are agency problems? List three mechanisms that can mitigate agency
problems?
Agency problems are known to be issues or problems that happen when a manager
take part in activities or makes dec
Module 3 Assignment: The questions below relate to the readings and Module lectures.
Please type all short answer responses. Responses to questions requiring calculations
should be typed or neatly han
1. Assuming a marginal federal, state and local tax rate of 30%, what is the
tax equivalent yield of a triple-tax-free municipal bond yielding 3%? What is
the interpretation?
3% / (1-0.3) = 4.2857% T
Jamie Acevedo FINC 561-91
Chapter 6
1. What is the key difference between speculation and gambling?
Speculation is calculating risk and conducting research before entering a financial
transaction. A s
a. Your client is expected to ask why you are recommending the optimal complete
portfolio instead of the optimal portfolio even though the latter has a higher
expected return. How will you respond?
Ch
Module 2 Homework Assignment
1. Assuming a marginal federal, state and local tax rate of 30%, what is the tax equivalent yield
of a triple-tax-free municipal bond yielding 3%? What is the interpretati
FINC 560
Corporate Financial Decision Making
Module1a Introduction
Introduction to Ratio Analysis
Ratio analysis is used to
evaluate a firm's financial health
by detecting changes in ratios
that may i
Lori Vargas
Finc561
06 January 2018
Module 1 Assignment
1. What are agency problems? List three mechanisms that can mitigate agency
problems?
a. Agency problems is when management performs in their be
FINC 560
Corporate Financial Decision Making
Module 3a: Introduction and Bond Vocabulary
Bonds
Bond: a type of long-term debt
The buyer gets interest, and face
value at maturity.
The issuer gets cas
Module 2 Assignment: The questions below relate to the readings and Module lectures.
Please type all short answer responses. Responses to questions requiring calculations
should be typed or neatly han
Vargas 1
Lori Vargas
ECON 562_51
17 December 2017
The Effects of the Federal Funds Rate on Inflation and Unemployment
Effective Federal Funds Rate
6.00
5.00
4.00
3.00
2.00
1.00
2016-11-01
What are the weights the bond issue and loans contribute to the companys overall debt?
What is the after-tax weighted average cost of debt?
Using the CAPM, what is the required return on the companys
1. What are the 3 fundamental factors that determine the level of interest rates?
a. The Supply of funds from savers, primarily households.
b. The demand for funds from businesses to be used to financ
Lecture 1: Discounted Cash Flow Valuation
-Stock values depend in part on the timing of cash flows from an investment. A dollar expected soon is worth more
than a dollar expected in the distant future
Homework Assignment: Time Value of Money
1. An annuity stream of cash flow payments is a set of:
A. level cash flows occurring each time period for a fixed length of time.
B. level cash flows occurrin
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Decision Analysis
Decisions for Decision Theory Approach
1.
Set of possible future conditions exist
that will have a bearing on the results
of the decision
2.
A list of alternatives for manager to
cho
Evaluating Cash Flows Homework
Fall 2017
Dr. Ricci
1.
You are considering buying one of two machines. Using the payback period and the cash
flows below, which machine should you buy? Justify your answ
FINC 560
Corporate Financial Decision Making
Module 2a Introduction
Discounted Cash Flow Valuation: the Time Value of Money
Money has value over time because it can be invested to earn interest
As a r
FINC 560
Corporate Financial Decision Making
Module 5a: Capital Budgeting Part 1
Capital Budgeting
Capital Asset: an asset used in
the production of goods or
services.
Capital Budget: a plan for
expen
ThequotebelowfromJohnBogle(formerChairmanofVanguardInvestments)canalso
befoundonpage176intheBHBtext.Heemphasizestheimportanceofasset
allocationandreferencestheresults(e.g.94%)ofastudybyBrinson,Hood&
B
FINC 561 Investments for Managers
Module 6 & 7 Notes
CAPM
The CAPM was developed in the early 1960s and was an important milestone in
the development of modern portfolio theory (MPT). Its a simple fra
Arithmetic vs. Geometric Returns
You have an asset that has a return in year 1 (ry-1) = 25% and a return in year 2 (ry-2) = -25%
A. The arithmetic average return over the period is simply the sum of t
FINC 561 Investments for Managers
Review
We just completed Modules 1-3 which provides the foundation for remainder of the
course and covered a variety of concepts summarized below. If students are sti