Chapter 16
Dilutive Securities and
Earnings per Share
Dilutive Securities
Securities that are not common stock in form but that
enable their holders to obtain common stock upon
exercise or conversion.
Convertible bonds, convertible preferred stocks, warra
Chapter 17
Investments
Investment Accounting
Approaches
Why do companies make investments in other
companies?
To earn a high rate of return (interest, dividend, capital gains)
To exercise some control or influence over other companies
Accounting for inves
Chapter 15
Stockholders Equity
Variety of Ownership Interests
Common Stock
Represents the basic ownership interest
Residual claimer that bears the ultimate risks of loss
Neither dividends nor assets upon dissolution is guaranteed
Control the management
Pr
Session 2: Key Concepts
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
Outline
1. Whats a financial asset?
2. Primary and secondary markets
3. Finance vs. Accounting
4. Book values vs. market values
Whats a financial asset?
An ass
Mortgage Analysis
Chapter 6
Marginal Cost of Borrowing
Effective Cost of Two (or more) Loans
Refinancing
Market Value of a Loan
Effect of Below Market Financing on House Prices
Wraparound Loans
Buydown Loans
Mortgage Analysis
Marginal Cost of Borro
Alternative Mortgage Instruments
Introduction
Why Alternative Mortgage Instruments?
For a fixed rate, constant payment mortgage, the
contract rate of interest, CR, is:
CR = rf + + inf
Where rf = risk free rate
= risk premium
inf = expected inflation
With
REAL 4100-001
Real Estate Finance & Investments
Course Syllabus for Spring 2015
Lectures:
Wednesday 6:30pm-9:15pm
Koelbel Building, Room S127
Instructor:
Matt Godley
Office:
Real Estate Center KOBL S350B
Office Hours:
Wednesday 5:30pm-6:30pm
and by appoin
Session 4: Financial
Statements II
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
First, an announcement
I had a schedule mix-up.
The conference Im attending is the first week in March, not the
last week in February.
Therefore, no
Session 3: Financial
Statements I
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
Outline
1. Income statement
2. Balance sheet
3. Statement of cash flows
4. Free cash flow
DeterminantsofIntrinsicValue:CalculatingFCF
Salesrevenues
O
Session 1: Introduction and
Course Overview
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
First, a bit about who I am:
What I used to do all day
Hometown: Baltimore, MD
Education:
Brown University (2002): ScB Applied Math Econom
Session 6: Time Value of
Money II
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
Outline
Perpetuity
Growing Perpetuity
Annuity
Growing Annuity
Examples
Simplifications
Perpetuity
A constant stream of cash flows that lasts forever
Session 5: Time Value of
Money I
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
First, an announcement
Office hours moved to Thursday, 2:00 5:00 this week.
Email me if you need to meet and that time has a conflict. I will
have tim
Session 7: Bonds
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
Outline
Bonds and Bond Valuation
Interest rates and Bond Prices
Determinants of Bond Yields
Yield Curves
Bonds
A bond is a legally binding agreement between a borrowe
Session 8: Risk and Return I
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
Topics in Chapter
Basic return and risk concepts
Stand-alone risk
Portfolio (market) risk
2
What are investment
returns?
Investment returns measure the fi
Session 9: Risk and Return II
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
Topics in chapter
Risk and return: CAPM/SML
Market equilibrium and market efficiency
2
Can an investor holding one stock earn
a return commensurate with
Chapter 16 Appendix B
Comprehensive Earnings Per
Share Example
Balance Sheet of Webster Corp.
Let us first calculate basic EPS:
Not declared, but cumulative
$1,750,00 - 10% X
Basic EPS
0
2,500,000
=
500,00
0
=
1,500,00
0
500,00
0
=$3
Calculate diluted
EPS
Session 10: Stock Valuation
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
Topics in Chapter
Features of common stock
Valuing common stock
Dividend growth model
Free cash flow valuation model
Market multiples
2
Corporate Valuation
Session 9: Risk and Return II
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
Topics in chapter
Risk and return: CAPM/SML
Market equilibrium and market efficiency
2
Can an investor holding one stock earn
a return commensurate with
JackWiegand
February3,2014
BCOR3000
BusinessLaw:TestOne
ChapterOne:TheCourtsandAlternativeDisputeResolution
I.
II.
III.
WhatistheLaw?
a. LawConsistofenforceablerulesgoverningrelationshipsamong
individualsandbetweenindividualsandtheirsociety.
b. Enforceabl
EXAM3LectureReview
Chapter9:IntroductiontoContracts:ClassificationandTerminology
Whatisacontract?
o Asetofpromises
Whensignacontract,termsofcontractbecomelawbetweenallparties,private
law,legalobligationsandenforceable
o Anagreement
Plaintiffmustproveth
BLawExam2:Chapters4,9,10&11
Chapter4:TortsandCyberTorts
I.
Torts
a. Awrongfulact(otherthenabreachofcontract)thatresultsinharmor
injurytoanotherandleadstoacivilliability.
b. Businesstortwrongfulinterferencewithanothersbusinessrightsand
relationships.
c. Cy
BLawFinalExamStudyGuide
Chapter24:Employment,Immigration,andLaborLaw
EmploymentatWill
o Commonlawdoctrinethatallowseithertheemployeroremployeetoend
therelationshipatanytimeforanyreason
o ExceptionsbasedOnTheories
ContractTheory:cannotfireemployeeoutsidete
Session 5: Time Value of
Money I
FNCE 3010 Corporate Finance
Prof: Ed Van Wesep
Leeds School of Business
First, an announcement
Office hours moved to Thursday, 2:00 5:00 this week.
Email me if you need to meet and that time has a conflict. I will
have tim
