Exam 1 Study Guide
Monday, February 13, 2017
7:14 PM
Investment: the use of a current asset in pursuit of greater future assets
-Two types of related assets
-real assets: any input into economic productivity
-PPE: property, plant, equipment
-RE: real esta
Final Exam Study Guide
Monday, April 24, 2017
9:20 PM
Bond:Security that obligates issuer to make payments to holder over time
Face Value, Par Value: Payment to bondholder at maturity of bond
Coupon Rate: Bonds annual interest payment per dollar of par va
Exam 2 Study Guide
Monday, March 20, 2017
11:41 AM
Simple Portfolio: 2 Risky assets
-bond fund
-stock fund
CAL: risk free asset and risky asset
E(r) = w1r1 + w2r2
P
Stock Bond Stock E(r)
Bond E(r)
Variance
Stock
Variance
Bond
St Dev
Stock
St Dev
bond
.05
Ratios
Thursday, January 19, 2017
Ratio
2:22 PM
Formula
Indicates
Should be
How much company earns from each $ of
sales after paying for sold items
high
Operating margin
How much a company earns before
interest & taxes from each $ of sales
high
Net Profit
Exam 2 Study Guide
Friday, March 24, 2017
10:03 AM
Invest 500$ today, will receive 550$ in one year at 8% a year.
550/1.08 = 509.2593 today (PV)
NPV = 509.26-500 = 9.26 today
As long as NPV is positive, the decision increases the value of the firm
You hav
Final Exam Study Guide
Tuesday, April 25, 2017
2:56 PM
Market value of equity v+ market value of debt = market value of assets
Leverage: relative amount of debt on a balance sheet
Unlevered: firm that doesn't issue debt
Levered: some of a firm's financing
FINA 365 Equation Sheet
CHAPTER 2: Financial Statement Analysis
(2.1) Assets = Liabilities + Stockholders Equity
(2.2) Net Working Capital = Current Assets Current Liabilities
(2.3) Market-to-Book Ratio = (Market Value of Equity) / (Book Value of Equity)
Exam 1 Study Guide
Friday, February 10, 2017
9:56 PM
Four types of firms
Sole proprietorship
-no separation between firm and owner
-one owner
Partnership
All partners liable for firm's debt
More than one owner
Limited Liability Companies (LLC)
No general
NVIDIA Corp. [NVDA] has a Beta of 1.45 (according to Google Finance) and a standard deviation of
monthly returns of 9.6% since 2011. Bed Bath and Beyond [BBBY] has a Beta of 0.67 (according to
Google Finance) and a standard deviation of monthly returns of
Below are the monthly closing stock prices for Alphabet Inc [GOOG] and Facebook [FB] since
March 2014. Which company has had a higher holding period return over the entire period?
MONTH GOOG
FB
Feb-16
697.77 106.92
Jan-16
742.95 112.21
Dec-15
758.88 104.6
Below is some information about Nike Inc [NKE] taken from the Google Finance website.
According to the CAPM, what is their cost of equity (required rate of return on equity)? Assume the
market is expected to return 8% and risk free rate is 1%.
a. 5.13%
b.
Below are Krispy Kreme Doughnuts [KKD] adjusted closing stock prices for the months Oct-Feb.
What is the average monthly return for KKD over this period (rounded to one decimal place)? [Be
sure to get the chronology correct, that is Jan comes before Feb,
Chapter 1
9. Identify at least five different internal and external users of financial statements.
Internal users: Owners, managers, employees, directors, internal auditors;
External users: Current and potential equity investors, current and potential deb
Whatisamajordownsideofincorporating?
a Infinite Life
b Limited Liability
c Double Taxation
d
Theseparationofownershipandcontrolinacorporationgenerateswhichofthefollowing
problems?
a Agency problems
bLiquidity problems
cTriple taxation
dVolatility problems
Budget Project
Due Date - Wednesday - January 21, 2016
Assignment:
How much will be owed to the bank on June 30, 2016?
Prepare a monthly income statement and monthly balance sheet for the company FINA 470 for the first six month of 2016.
Also reconcile be
Austin Consolidated Industries - Product Line - FINA 470
2014
Income Statements:
Sales
Cost of goods sold:
Variable
Fixed
Total cost of good sold
Gross Profit
Selling and administrative expense
Corporate overhead cost
Interest expense
Net income before ta
1.
2.
3.
4.
5.
6.
7.
1,934,842
86,384
19.4%
36,959
336,985
20.52%
1,882,632
If you missed any of these
problems it is MANDATORY that
you go back and review and
understand both your mistake as
well as the correct solution. It will
surely be FATAL to proce
How to Bring Private Capital Back to
Mortgages
Print
Reprints
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inShare2
Thirdinaseries
Withhousingshowingsignsofrecovery,policymakersneedtogetseriousaboutaddressingthebiggestimpedimenttolongtermstabilityin
thissector,namelythefederalgovernment'srolei
The Wills Fauntleroy (2011) Honorary
Explanation
TI-84 Plus Tutorial
Part III
In the previous section we looked at the basic time
value of money keys and how to use them to calculate
present and future value of lump sums and regular
annuities. In this sec
Student Name: _*
Graded By : _
REV 2/23/15
Chapter 9
Homework Problems
Stapled ? (Y/N)
All Work on Form ? (Y/N)
Attached Spreadsheet ? (Y/N)
No. Correct (of 13):
_
_
_
_
* By putting my Student Name to the above I hereby certify that all
work, and all cop
All % answers are to be rounded to the closest basis point (i.e. 20.57 %). All $ answers rounded to the closest one dollar
(i.e. $ 4,687, 437). This will be the same for all future assignments.
CHAPTER 6 HOMEWORK
ASSIGNMENT
IBC-TYPE PROBLEMS
Each problem
Chapter 13 - Homework Problems
For all of the following you must show how you
derived your answers. You may use L-charts,
attached templates, formulas, calculator entries
etc., but without definite proof of formulation
you will receive NO CREDIT for the p
Student Name:
_*
Graded By : _
USC-466-Chapter7-Homework Problems
Rev 9/22/15
Problem 7-1
Stapled ? (Y/N)
All Work on Form ? (Y/N)
Attached Spreadsheet ? (Y/N)
No. Correct (of 14):
* By putting my Student Name to the above I hereby certify that
all work,