What You Need to Know for Midterm #2
1. Time Value of Money
You should be able to
Use a time line to show the timing of cash flows.
Understand the relationship between present value and future value.
Calculate the present value.
Calculate the future value
Econ 282: Tutorial #1 (Week 2)
1. Suppose you locate a two-year investment that pays 9 percent per year. If you invest $500,
how much will you have at the end of the two years? What is the total interest you earn?
How much of this is simple interest? How
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Econ 282
Tutorial #6
Week 11
Formulas:
1) Project cash flow = Project operating cash flow Project capital spending Change in net
working capital
2) Calculating operating cash flow (OCF):
i. The bottom-up approach:
Project net income = EBIT taxes
OCF = Net
Econ 282
Tutorial #1
Week 2
1. Suppose you locate a two-year investment that pays 9 percent per year. If you invest $500,
how much will you have at the end of the two years? What is the total interest you earn?
How much of this is simple interest? How muc
Junjie Liu Econ 282
Practice Multiple Choice
Introduction
1. Present value of $121,000 expected to be received one year from today at an interest rate
(discount rate) of 10% per year is:
a. $121,000
b. $100,000
c. $110,000
d. None of the above
2. One year
Junjie Liu Econ 282
Practice Multiple Choice
Introduction
1. Present value of $121,000 expected to be received one year from today at an interest rate
(discount rate) of 10% per year is:
a. $121,000
b. $100,000
c. $110,000
d. None of the above
2. One year
Junjie Liu Econ 282
Practice Multiple Choice
Introduction
1. Present value of $121,000 expected to be received one year from today at an interest rate
(discount rate) of 10% per year is:
a. $121,000
b. $100,000
C. $110,000
d. None of the above
2. One year
BC2401
Analysis
y & Management
g
of IT
Projects
Seminar 8: Communications &
Integration Management
Neerja
j Sethi
S hi
[email protected]
Todays Objectives
Communications Management
Integration Management
Change Control system
Project Closing
Communicatio
ECON 282 Economics of Risk Management and Firms
Net Present Value and Other Investment
Criteria
Junjie Liu Econ 282
1
Topics Covered
Net Present Value (NPV)
Payback Period
Discounted Payback Period
Average Accounting Return (AAR)
Internal Rate of Ret
BC2401: Analysis & Management of
IT Projects
Seminar 1: Course Overview &
Introduction to Project Management
Neerja Sethi
[email protected]
Getting to Know Each Other
Name
Program/Year (e.g. Bus2 (IT), BCG3)
Systems Development/Project Management
Experie
A Binomial random variable and its distribution
<DEF> A Bernoulli trial: A trial that has only two possible outcomes.
Examples:
1. Flip a fair coin once is a Bernoulli trial, since the resulting outcomes can only be a
head or a tail.
2. Flip a biased coin
Derivative
Derivative Interview
Interview
Project
Project
Bing Wang
Fanyu(Ted) Gao
+
+
+
+
+
+
WHO
Christina Atanasova
Associate Professor of Finance Christina Atanasov
a joined the Beedie School of Business in 2007. C
hristina holds a PhD in Finance fro
ECON 282 Economics of Risk Management and Firms
Portfolio Theory and Capital Asset
Pricing Model
Junjie Liu Econ 282
1
Topics Covered
Portfolio Theory
Security Market Line (SML)
Capital Asset Pricing Model (CAPM)
Arbitrage Pricing Theory (APT)
The Th
Chapter 13 Risk, Return, and Capital Budgeting
b. What are Filer's capital structure weights on a market value basis?
c. Which are more relevant. the book or market value weights? Why?
Calculating the Weighted Average Cost of Capital
13.11 In Problem 13.1
BUS 413
Advanced Corporate Finance
Lecture VIII
Capital Structure-MM theorem
Victor Song, Beedie School of Business
Summer 2016
Agenda today
1. Capital Structure Choices
2. Capital Structure in Perfect Capital Markets
3. Debt and Taxes
4. The Costs of Ban
Admin News
Finals date: 60% liked 12/18 (Registrar-set date) .
=> So, final will be 12/18.
Some of you had emergency reasons & wound not be able to make it => expect an email from me.
Quiz V next Tuesday
If absolutely cant come, please let me know
Will tr
Intrades
Intrades Shutdown:
Shutdown:
What's
What's the
the Difference
Difference
Between
Between Gambling
Gambling and
and
Trading?
Trading?
Bing Wang
Ted Gao
Jason Chow
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+
+
+
Warm-up
+
+
Some betting on the games?
+
+
+
+
Intrade The Company (1)
+
+
The
The Big
Big Long:
Long: Making
Making aa
Killing
Killing in
in Market
Market Everyon
Everyon
ee Left
Left for
for Dead
Dead
Bing Wang
Ted Gao
+
+
+
+
Organization
+
+
HBOS was formed by the merger of Halifax
Plc, Britains biggest mortgage lender, and
ECON 282 Economics of Risk Management and Firms
Stock Valuation
Junjie Liu Econ 282
1
Topics Covered
Stock vs. Bond
Common Stock Valuation
Some Special Cases
Components of the Required Return
Junjie Liu Econ 282
2
A Scenario
When the stock market clos
ECON 282 Economics of Risk Management and Firms
Making Investment Decisions
Junjie Liu Econ 282
1
Topics Covered
Applying the Net Present Value Rule
Example
Evaluating Cost-Cutting Proposals
Setting the Bid Price
Evaluating Equipment Options with Dif
ECON 282 Economics of Risk Management and Firms
Introduction: Time Value of Money
Junjie Liu Econ 282
1
Topics Covered
Time Value of Money
Present Value and Future Value
Net Present Value
Opportunity Cost of Capital
Net Present Value Rule and Rate of
Economics 282: The Economics of Risk Management and Firms
Practice Midterm #2
Total time: 1 hour 45 minutes
Name (LAST, First):
Preferred Name:
Student Number:
INSTRUCTIONS:
1. There will be no washroom breaks during the exam.
2. Possession of any electro
Econ 282
Tutorial #7
Week 12
Formulas:
2 2
2 2
2 2
2 2
Portfolio variance = 1 1 + 2 2 + 21 2 12 = 1 1 + 2 2 + 21 2 12 1 2
1. Suppose you bought an 8% coupon bond with face value of $1,000 one year ago for $960.
The bond sells for $940 now.
a. What was you