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
Review for test #1
Koppl, FIN 301 Fall 2015
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
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
TODAY: Weighted Average Cost of Capital
Mon, Wed, Thurs: 2:00-3:00
and by appointment:
[email protected]
(including taxes)
rwacc reE% rpfd P% rd (1 T)D%
rwacc reE% rpfd P% rd (1 T)D%
rd (1 T c )
Div pfd
Prefered Dividend
Cost of Preferred Stock Capital =
Pre
Exam #1, FIN 301, Fall 2016, Koppl
PRINT YOUR NAME HERE: _
Instructions:
1. Put your name on the exam!
2. Answer all questions
3. Put each answer in the box
marked for that question or
sub-question.
4. For Part II, show your work in
the indicated
Exam #2, FIN 301, Fall 2016, Koppl
PRINT YOUR NAME HERE: _
Instructions:
1. Put your name on the exam!
2. Answer all questions
3. Put each answer in the box
marked for that question or
sub-question.
4. For Part II, show your work in
the indicated
Review for test #2, Koppl, FIN 301 Fall 2016
The test will cover my lectures since test #1 up to and including the
test review day plus chapters 6, 7, 8, and 9 of our text. It will consist
of two types of questions. Part I of the test will be multiple cho
Review for test #1, Koppl, FIN 301 Fall 2016
The test will cover my lectures up to and including the test review day plus chapters
3,4, and 5 of our text. It will consist of two types of questions. Part I of the test will
be multiple choice questions base
TODAY: Systematic risk and CAPM
Mon, Wed, Thurs: 2:00-3:00
and by appointment:
[email protected]
(including taxes)
Value of investment i
wi
Total value of portfolio
Compute
Portfolio weights for a portfolio of 200
shares of Apple at $200 per share and
1000
Review for final, Koppl, FIN 301 Spring 2017
The final will be cumulative. If it is to your advantage, I will drop both of the midterms and
count the final for 65% of your overall grade in the course. (Recall
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
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
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
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
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 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
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 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
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
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
Know what it means for a bond to trade at par, at discount, and at a premium.
The bond has a face value of $1,000. That means that when the debt finally
comes due, the creditor will get $1,000.
the bond makes interest payments along the way. These are c
Here is the data we
Date
Price
Nov 01 04
Nov 15 04
Feb 15 05
May 16 05
Aug 15 05
Oct 31 05
start with
Dividend
28.08
27.39
3.08
25.93
0.08
25.49
0.08
27.13
0.08
25.7
NOTE: that the first and last periods are partial quarter, the others quarters
And yet, a
TODAY: Fundamentals of Capital Budgeting
Tues&Thurs:11:00-12:00
Wed: 2:00-3:00
and by appointment: [email protected]
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
TODAY: Bonds
Tues&Thurs:11:00-12:00
Wed: 2:00-3:00
and by appointment: [email protected]
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
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