FIN 301
P3-3
Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also
has the following amounts in revenue and expense accounts.
Calculate
(a)
gross profits.
(b)
operating profits.
(c)
net profits before taxes.
(d)
net profits af
FIN 301
P9-10 or P9-16
Jameson Inc. reported earnings of $9,500,000 last year. From those earnings the company
paid a dividend of $3.00 on each of its 2,000,000 shares outstanding. The capital structure
of the company includes 30% debt, 20% preferred stoc
Interest rates
What we have done so far
Introductory stuff, basic finance POV,
corporations, accounting review
Compounding
Future value
Present value
Main formula and how to derive it
Various formulae
Practice problems
How to use TVM buttons on a
Time Value of Money
Chapter 3
What we have done so far
Introductory stuf
Reality is the cash
How we like our cash flows: More, Sooner, Safer
Present values measures reality
means: Two cash flows with the same present value are
equivalent
A corporation is
Welcome to FIN 301
http:/www.slate.com/articles/podcasts/gabfest/2014/12/the_hosts_of_the_slate_political_gabfest_take_on_tough_questions_in_the.html
Are you in the right place?
Course is FIN 301
Be sure you belong here!
For non-Whitman students
Your I
Finishing up Chapters
One and Two
Quiz results
Question #
1
2
3
4
5
6
a
b
c
% correct
23
70
2
74
85
2
8
89
12
12
71
75
12
76
7
80
63
5
27
28
77
12
6
13
What we have done so far
How course is organized
How to survive course
Quiz to see where were at
Ke
Chapter 10
A different approach to stock
valuation
What we have done so far
Accounting review, compounding, future
value, present value
How to use a finance calculator
Interest rates: APR, EAR, Real vs nominal
Stock and bond valuation
Investment crit
Chapter 7
Stock Valuation
What we have done so far
Accounting review, compounding, future
value, present value
Various formulae and practice problems
How to use TVM and cash-flow buttons on a
finance calculator
Interest rates: APR, EAR, Real vs nomina
Introduction and overview
(Chapter One)
What we have done so far
How course is organized
How to survive course
What we will cover this semester
Preliminaries: financial statements
Present value
Investment and Capital budgeting
Portfolio Theory, includin
Chapter 9
Fundamentals of Capital Budgeting
What we have done so far
Accounting review, compounding, future
value, present value, various formulae and
iterations on tht
How to use TVM and cash-flow buttons on a
finance calculator
Interest rates: APR, E
Chapter 8
Investment decision rules
What we have done so far
Accounting review, compounding, future
value, present value
Various formulae and practice problems
How to use TVM and cash-flow buttons on a
finance calculator
Interest rates: APR, EAR, Real
Chapter 6
Bonds
What we have done so far
Introductory stuff, accounting review,
compounding, future value, present value
Various formulae and practice problems
How to use TVM and cash-flow buttons on a
finance calculator
Interest rates:
APR vs period
12/15/2015
Test Three: Short Answer
Know which is likely to be better for estimating next periods return on an asset, the
arithmetic or the geometric average.
- Arithmetic average is better for forward looking; geometric is better for backward
looking
Kno
The test will consist of two types of questions: 1) short answers, listing, and the
like, 2) problems. Although I reserve the right to use any mix of the two I choose,
I expect questions of type 1) to count for about a third of your test grade and,
theref
Name: _
In-Class Assignment: Hedging Strategies Using Futures
1. Basis Risk in a Short Hedge (Example 3.3)
It is March 1. A U.S. company expects to receive 50 million Japanese at the end of July. The
September futures price for the yen is currently 1.2800
Ten Thousand Saints: Summary of Chapters 11-15
Chapter 11:
Jude, Johnny and Eliza drive Les' van back to Lintonburg and start living at
Harriet's house. The three are all now living a "straight edge" lifestyle. They
seem to have changed in other ways as w
Whats a balance sheet?
Whats a financial statement?
Give characteristics
Whats risk, whats beta
Whats a cash flow statement?
How are decisions made?
Bring financial calculator optional not going to have to calculate problems use for formulas
Review the br
1. What does it mean to maximize the value of a corporation?
Value itself can be defined as dealing with cash flow. Maximizing the value of a
corporation has to do with the cash flow within the firm. Specifically, increasing
cash flow and doing it sooner,
Finance 301 Quiz 2 Chapter 5-8
Ch5
74 - Dollar return to an investor, two categories income paid by the issuer of the
financial asset (stock or bond) / change in value of the asset in the financial market
(financial gains) over period of time
If debt inco
CHAPTER 15 Capital Structure: Basic Concepts
Multiple Choice Questions: I. DEFINITIONS
HOMEMADE LEVERAGE a 1. The use of personal borrowing to change the overall amount of financial leverage to which an individual is exposed is called: a. homemade leverag
Formula Sheet, Koppl, Final, Fall 2016
TIME VALUE OF MONEY
Future value of a cash flow
FVn C0 (1 r)n
FVn C0 (1 r)n C1 (1 r)n1 C2 (1 r)n2 . Cn1 (1 r)1 Cn
Present value of a cash flow
*
PV
FVn
(1 r)n
Present value of a perpetuity
Present value of a growing
TODAY: Bonds
Tues&Thurs:11:00-12:00
Wed: 2:00-3:00
and by appointment: fin301@syr.edu
SOM 120H
Tues. 3:00-4:30; Thursdays 10:30-12:00
and by appointment
(including taxes)
(including taxes)
Priceofacouponbond
1
1 FV
P CPN 1
n
r (1 r) (1 r) n
Yieldtoma
TODAY: Fundamentals of Capital Budgeting
Tues&Thurs:11:00-12:00
Wed: 2:00-3:00
and by appointment: fin301@syr.edu
SOM 120H
Tues. 3:00-4:30; Thursdays 10:30-12:00
and by appointment
(including taxes)
(including taxes)
Net Working Capital = Current Assets C
Formula Sheet, Koppl, Final, Spring 2017
TIME VALUE OF MONEY
Future value of a cash flow
FVn = C0 (1+ r)n
n
n1
FVn = C0 (1+ r) + C1 (1+ r) + C2 (1+ r)
Present value of a cash flow
PV =
n2
1
+. + Cn1 (1+ r) + Cn
FVn