Time Value of Money Review
TIME VALUE OF MONEY OVERVIEW
Time value of money is the MAIN idea of finance. It means that a dollar today and a dollar any
other day are not the same. Any of you who have had to work and then wait to get paid knows
what I mean
Financial Ratios Review
FINANCIAL RATIOS UNIT OVERVIEW
As you look at the financial statements, notice how they are related. Sales is a function of
assets, which is a function of debt and equity. Equity is a function of net income which comes
from sales.
Unit 1 Review
INTRODUCTION UNIT OVERVIEW
As you go through the first unit, notice that the focus of the material is on decision-making.
Finance is a very practical discipline. What is the point of knowing something if you dont know
how to use it? Further
Bonds & Stocks Review
BONDS & STOCKS UNIT OVERVIEW
Bonds and stocks is your introduction to investment assets. The mathematics of bonds is
basically applied time value of money. Stocks are the same but you use the formula.
With bonds, notice the importan
Unit 5 - Review
RISK VERSUS RETURN UNIT OVERVIEW
This unit is an overview of risk and return. We learn about beta, a measure of risk, and how to
calculate the growth rate (g). In the prior units, the interest rate or required return was given. In
this un
CHAPTER 5 (part 1)
Time Value of Money
Time lines (Section 5-1)
Single sum (Section 5-2, 5-3, 5-4, 5-5)
Semiannual and other compounding period (Section 515)
Effective interest rates (Section 5-16)
Annuity (Section 5-6, 5-7, 5-9, 5-10; we skip the section
CHAPTER 5 (part 2)
Time Value of Money
Time lines (Section 5-1)
Single sum (Section 5-2, 5-3, 5-4, 5-5)
Semiannual and other compounding period (Section 5-15)
Effective interest rates (Section 5-16)
Annuity (Section 5-6, 5-7, 5-9, 5-10; we skip the
sectio
CHAPTER 8
Risk and Rates of Return
The risk-return tradeoff (Section 8-1)
Investment return and risk-stand-alone (Section 82)
Risk in a portfolio context (Section 8-3a, b)
CAPM and SML (Section 8-3c the concept of beta
on p.275-277, Section 8-4)
8-1
The r
CHAPTER 7
Bonds and Their Valuation
Issuers of bonds (Section 7.1)
Key characteristics of bonds (Section 7.2,
skipping sinking funds, other features)
Bond valuation (Section 7.3)
Bond yields (Section 7.4, skipping yield to
call)
Interest rate risk: Change
CHAPTER 9
Stocks and Their Valuation
Characteristics of common stocks (Section 91, skipping the preemptive right)
Common stock valuation (Section 9-3:mainly
a review of Chapter 1; Section 9-4)
Constant growth stocks (Section 9-5)
P/E Multiple approach (Th
CHAPTER 6
Interest Rates
Determinants of interest rates
(Section 6.1-6.3)
Supply and demand
Inflation
Risk: default; liquidity; maturity
The term structure and yield curves
(Section 6.4 & Figure 6.6)
Interest rate
What is interest rate?
The _ lenders rece
Chapter 5 practice problems
Calculation problems
1. Suppose you have $1,000 and plan to purchase a 3-year certificate of deposit (CD) that
pays 5% interest, compounded annually. How much will you have when the CD matures?
2. How much would $1,000 due in 5
Chapter 7 review
1. Calculation
a. Bond price
b. YTM
c. Current yield
2. Conceptual
a. Bond terminology: coupon rate, YTM, current yield.
b. Par bond, discount bond, premium bond
c. Bond price and interest rate (YTM)
i. Current yield and interest rate: If
Chapter 9 review
1. Stock valuation
1) Dividend growth model
a. When can constant dividend growth model (P0= D1/(r-g) be used? g<0? g
is not constant? g>r? intend to hold the stock for a year (Question 9-4)?
b. Inputs of the dividend growth model
e.g., St
Chapter 8 Risk and return
1. Conceptual
a. Risk
b. Standard deviation as a measure of stand-alone risk
c. Risk-return tradeoff
d. Historical risk and return
e. Portfolio risk
i. Correlation of assets being positive or negative
f. Diversifiable risk vs. ma
Review Test Submission: Chapter 10 Review 2017SP SEM/.
1 of 3
My WTClass
Lessons
.
Chapter 10
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?attemp.
Community Groups
Resources
Student Services
Help
Review Test Submission: Chapter 10 Review
Review Test Submission: Chapter 21 Review 2017SP SEM/.
My WTClass
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?a.
Community Groups
Resources
Student Services
Help
Quick Links
H
Lessons
.
Chapter 21
Review Test Submission: Chapter 21 Revie
Review Test Submission: Ch
ter 15 Review
Question 1
[1]
can serve as a type benchmark against which to measure investment performance.
Specified Answer for: 1
[None Given]
Correct Answers for: 1
Evaluation Method
Correct Answer
Budgeting
Exact Match
Respo
Review Test Submission: Chapter 17 Review 2017SP SEM/.
My WTClass
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?a.
Community Groups
Resources
Student Services
Help
Quick Links
H
Lessons
.
Chapter 17
Review Test Submission: Chapter 17 Revie
Review Test Submission: Chapter 18 Review 2017SP SEM/.
My WTClass
Community Groups
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?a.
Resources
Student Services
Quick Links
H
Lessons
.
Chapter 18
Review Test Submission: Chapter 18 Review
Rev
Review Test Submission: Chapter 11 Review 2017SP SEM/.
1 of 3
My WTClass
Lessons
.
Chapter 11
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?attemp.
Community Groups
Resources
Student Services
Help
Review Test Submission: Chapter 11 Review
Review Test Submission: Chapter 12 Review 2017SP SEM/.
1 of 2
My WTClass
Lessons
.
Chapter 12
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?attemp.
Community Groups
Resources
Student Services
Help
Review Test Submission: Chapter 12 Review
Review Test Submission: Chapter 14 Review 2017SP SEM/.
1 of 2
My WTClass
Lessons
.
Chapter 14
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?attemp.
Community Groups
Resources
Student Services
Help
Review Test Submission: Chapter 14 Review
Review Test Submission: Chapter 20 Review 2017SP SEM/.
My WTClass
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?a.
Community Groups
Resources
Student Services
Help
Quick Links
H
Lessons
.
Chapter 20
Review Test Submission: Chapter 20 Revie
Review Test Submission: Chapter 13 Review 2017SP SEM/.
1 of 2
My WTClass
Lessons
.
Chapter 13
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?attemp.
Community Groups
Resources
Student Services
Help
Review Test Submission: Chapter 13 Review
Review Test Submission: Chapter 9 Review 2017SP SEM/.
1 of 2
My WTClass
Lessons
.
Chapter 9
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?attemp.
Community Groups
Resources
Student Services
Help
Review Test Submission: Chapter 9 Review
Rev
Review Test Submission: Chapter 19 Review 2017SP SEM/.
My WTClass
https:/wtclass.wtamu.edu/webapps/assessment/review/review.jsp?a.
Community Groups
Resources
Quick Links
H
Lessons
.
Chapter 19
Review Test Submission: Chapter 19 Review
Review Test Submissi
4/25/2017
Review Test Submission: Practice 6- Module 6 (optional) &ndash.
My WTClass
H
Lessons
WEEK 11
Community Groups
Resources
Help
Review Test Submission: Practice 6- Module 6 (optional)
Review Test Submission: Practice 6- Module 6 (optional)
Attempt