FINA350
Principles of Finance
Quiz 1
Name: _
Instruction:
1.
2.
3.
4.
You are allowed to use a calculator (not computer) during the quiz.
Sharing of calculators is prohibited.
You have 15 minutes to complete this quiz.
GOOD LUCK!
I _ have neither given n
FINA350
Principles of Finance
Quiz 4
Name: _
Instruction:
1.
2.
3.
4.
You are allowed to use a calculator (not computer) during the quiz.
Sharing of calculators is prohibited.
You have 15 minutes to complete this quiz.
GOOD LUCK!
I _ have neither given n
FINA350
Principles of Finance
Quiz 3
Name: _
Instruction:
1.
2.
3.
4.
You are allowed to use a calculator (not computer) during the quiz.
Sharing of calculators is prohibited.
You have 15 minutes to complete this quiz.
GOOD LUCK!
I _ have neither given n
FINA350
Principles of Finance
Quiz 2
Name: _
Instruction:
1.
2.
3.
4.
You are allowed to use a calculator (not computer) during the quiz.
Sharing of calculators is prohibited.
You have 15 minutes to complete this quiz.
GOOD LUCK!
I _ have neither given n
FINA350
Fall 2016
Principles of Finance
Exam 1
Name: _
Instruction:
1.
2.
3.
4.
5.
Please do NOT open the exam until you are told to start!
You are allowed to use a calculator (not computer) during the exam.
Sharing of calculators is prohibited.
You have
Principles of Finance
FINA 350

NPV and Other Investment Criteria
BMA Ch. 5 & 6

Instructor: Prof. Xun Bian
NPV rule
pmt, fv
pv
Cost of
investment
n
i
NPV=pv(C1)+pv(C2)+ pv(Cn)  Cost of
investment
Decision rule: Invest if NPV > 0.
How to apply the NPV
Principles of Finance
FINA 350
How to Calculate Present Value?
BMA Chapter 2
Instructor: Prof. Xun Bian
Present and Future Values
Value today =
?
Value today depends on cash flows (CFs) in the future
We cannot add CFs across time together, because
1. Tim
Principles of Finance
FINA 350

Introduction to Risk and Return
BMA Ch. 7

Instructor: Prof. Xun Bian
What is risk?
The chance that an investment will lose value.
Consider the following two investments:
Option 1:
C0
C1
Prob.
100
150
1
C1
Prob.
100
Principles of Finance
FINA 350
Valuing Bonds
BMA Ch3
Instructor: Prof. Xun Bian
What are bonds?
Bonds are publically traded longterm
loans.
Who can issue bonds?
Governments
Treasury notes/bonds (notes: 210 years; bonds 1030
years)
Municipal bond
Principles of Finance
FINA 350

The Value of Common Stocks
BMA Ch 4

Instructor: Prof. Xun Bian
The Value of Common Stocks
Purchase of
real assets
1. Debt (e.g. bond)
2. Equity (e.g. common stock)
Firm's
Financial
Financial
operations
manager
markets
Ho
Principles of Finance
FINA 350
Goals and Governance of the Firm
BMA Chapter 1
Instructor: Prof. Xun Bian
Overview
What is finance all about?
What are the basic challenges we try to overcome
in finance?
Preview of course content.
Overview
What are asse
EXCERISE PROBLEM FOR FINANCE 350EXAM
#3
GIVEN:
Jones Company has $1,000 par, 20 year, 8% annual coupon
interest bonds currently outstanding that are currently
priced at $1100 each. Joness preferred stock outstanding
is currently priced at $100 per share a
Finance 350
Problem Set #2 Short Answers
SHOW WORK TO RECEIVE CREDIT.
WHEN SOLVING BY FINANCIAL CALCULATOR , PROVIDE A TIME LINE
ALONG WITH RESPECTIVE KEYS AND VALUES ENTERED TO SOLVE
PROBLEM.
Chapter 6
61
(a) $30000
(b) 15%
(c) 11.4%
62
Alternative Pol
EXAM #3 NONQUANT REVIEW
PROFESSOR BACON
Relationship between interest rates and bonds
Bond selling at par, premium, or discount
Value = present value of future CFs
Weight component costs of capital according to optimal capital structure
Why cant debt fin
"
"General Glossary
"Stock Market Glossary
"Mutual Fund Glossary
"Bond Glossary
"Derivatives Glossary
"Tips and Suggestions
"Warning Tips
"Questions to Ask Before Investing in a Mutual Fund
GENERAL GLOSSARY
Bear An investor who believes that a stock or th
Finance Exam #1 Review
Professor Bacon
NonQuant Part I. Concepts tested in mul. Ch. Format
S
EE PAGES
1. Major effects on managers of Great Depression on 1930s
4
2. Significant changes in the US economic system in recent years
5
3. Primary goal of Financ
Finance 350 Final Exam Review
Quantitative Part I (8 questions and you may omit 1)7 questions at 10 points each
counts about 55% of test
1. Given a balance sheet and income statement, compute the following ratios: (Chapter
3 )No formulas provided
Current
Professor Bacon
Nonquant Exam # 2 Review
Working capital management
Current assets
Net working capital
Current Ratio
Matching principle, Aggressive Strategy, and Conservative Strategy for Working Capital
Management
Operating Cycle and Cash Conversion Cyc
Finance 350
Problem Set #2 Short Answers
SHOW WORK TO RECEIVE CREDIT.
WHEN SOLVING BY FINANCIAL CALCULATOR , PROVIDE A TIME LINE
ALONG WITH RESPECTIVE KEYS AND VALUES ENTERED TO SOLVE
PROBLEM.
Chapter 6
61
(a) $30000
(b) 15%
(c) 11.4%
62
Alternative Pol
EXAM #3 NONQUANT REVIEW
PROFESSOR BACON
Relationship between interest rates and bonds
Bond selling at par, premium, or discount
Value = present value of future CFs
Weight component costs of capital according to optimal capital structure
Why cant debt fin
EXCERISE PROBLEM FOR FINANCE 350EXAM
#3
GIVEN:
Jones Company has $1,000 par, 10 year, 7% annual coupon
interest bonds currently outstanding that are currently
priced at $900 each. Joness preferred stock outstanding is
currently priced at $100 per share an
Nonquant Exam # 2 Review
Working capital management
Current assets
Net working capital
Current Ratio
Matching principle, Aggressive Strategy, and Conservative Strategy for Working Capital
Management
Operating Cycle and Cash Conversion Cycle
Profitability
Finance Exam #1 Review
Professor Bacon
NonQuant Part I. Concepts tested in mul. Ch. Format
S
EE PAGES
1. Major effects on managers of Great Depression on 1930s
4
2. Significant changes in the US economic system in recent years
5
3. Primary goal of Financ
EXAM #3 NONQUANT REVIEW
PROFESSOR BACON
Relationship between interest rates and bonds
Bond selling at par, premium, or discount
Value = present value of future CFs
Weight component costs of capital according to optimal capital structure
Why cant debt fin