Chapter 1: Overview of the Financial Market;
1. What are differences between primary and secondary markets?
a. Primary markets are markets where users of funds raise cash by selling
securities to fund
Tra Pham
Dr. David Rakowski
FINA 3317-001
January 29, 2017
Lecture Note #4
In the illustrations of the present value of 1 in Part 1 we assumed that interest was
compounded on an annual basis. Now we'l
Tra Pham
FINA 3317-001
Dr. David Rakowski
March 10, 2017
Lecture Note #11
There are 4 types of securities:
Stock
Common Stock
Preferred Stock
Derivatives
Forwards
Futures
Options
Swaps
Funds, Receipts
1,
shares of stock
price
shares of stock
price
Total value
Stock A
Stock B
2,
stock A
Stock B
expected return
expected returnB
Total value
Expected return
95
53
120
29
8515
0.59
0.41
140
50
120
40
118
1,
dividend
constant rate
return on the stock
Current price?
Price in 3 years
15 year
stock values
1.9 per share
0.05 per year
0.12
28.5
32.99
59.25
1.75
0.04
0.11
26.00
29.25
52.67
0
3
18
Pt=(Dt)(1+g
Solutions to Problem Set 3
Assigned Problem 1
Whitson Co. is looking for ways to shorten its cash conversion cycle. It has annual sales of
$36,500,000, or $100,000 a day on a 365-day basis. The firm's
Name: _
FINA 6340
Midterm Exam (Chapters 14, 15, and 16)
To be submitted via Blackboard by the specified deadline
Instructions:
(1) Type your name in the space provided above.
(2) This exam is worth u
Name: _Elsa Nava_
FINA 6340
Midterm Exam (Chapters 14, 15, and 16)
To be submitted via Blackboard by the specified deadline
Instructions:
(1) Type your name in the space provided above.
(2) This exam
Solutions to Problem Set 1
Problem 1:
David Rose Inc. forecasts a capital budget of $500,000 next year with forecasted net income
of $400,000. The company wants to maintain a target capital structure
Pastelitos
Estado de Resultados del 5 al 16 de Abril del 2010
Ventas Netas
Costos de Ventas
Utilidad Bruta
Utilidad en Operacin
Gastos de Venta
Notas de Gasolina
Gastos de Administracion
Sueldos
Utili
Tra Pham
Dr. David Rakowski
FINA 3317-001
February 14, 2017
Lecture Note #4
Money markets: securities that mature less than one year. There are only fore debt securities,
not equities
Examples: loans
Tra Pham
FINA 3317-001
Dr. David Rakowski
March 10, 2017
Lecture Note #11
There are 4 types of securities:
Stock
Common Stock
Preferred Stock
Derivatives
Forwards
Futures
Options
Swaps
Funds, Receipts
January 17, 2017
Finance 3317
What is finance?
Finance is the process (system, set of rule, algorithm) by which funds (money, assets) are
allocated (re-allocated, transferred, distributed) from where/
1:
B
2:
D
3a:
3b:
3c:
Affirm
Affirm, Paypal, Yongqianbao, Dumiao
Capital One
4a:
4b:
4c:
4d:
American International Group Inc. (AIG)
MetLife Inc. (MET)
Prudential Financial Inc. (PRU)
General Electric
1a: Top 5 banks, by deposits
JP Morgan Chase Bank
Bank of America
Wells Fargo Bank
USAA Federal Savings Bank
Comerica Bank
Deposits
$ 151,394,000.00
$ 113,458,000.00
$ 71,855,000.00
$ 69,290,232.00
$
1. Over the past 5 years, you observed the following quoted rates on Treasury Bills, for face values of
$1,000 and 30 days to maturity. In excel, compute and graph the prices, bond equivalent rates, a
1a. What is the holding period return (HPR)?
1b. What is the geometric average monthly return (GAR)?
1c. What is the arithmetic average monthly return (AAR)?
1d. What is the standard deviation of the
1. A US Treasury STRIP with a face value of $1000 has 14 years to maturity. In excel, compute
and graph the yields for prices of $500 to $1000, in $50 increments. Use annual compounding
of interest.
P
Tra Pham
FINA 3317-001
Dr. David Rakowski
February 09, 2017
Lecture Note #6
When companies need to raise money, issuing bonds is one way to do it. A bond functions like a
loan between an investor and