NUS Business School
FIN2004 Finance
Tutorial 5
#1:
Bond X is a premium bond making annual payments. The bond pays a 9 percent coupon, has a
YTM of 6 percent, and has 16 years to maturity. Bond Y is a discount bond making annual
payments. This bond pays a
FIN 2004
Finance
FIN2004 Past Midterm 1
INSTRUCTIONS: There are 30 Multiple-Choice Questions in this paper. Shade the
most appropriate answer for each question in the answer sheet provided. ANSWER
ALL QUESTIONS. Remember to shade your Matriculation number
NUS Business School
FIN2004 Finance
Tutorial 2
#1:
First City Bank pays 8 percent simple interest on its savings account balances, whereas Second
City Bank pays 8 percent interest compounded annually. If you made a $5,000 deposit in each
bank, how much mo
NUS Business School
FIN2004 Finance
Tutorial 7
#1: Suppose a project has conventional cash flows and a positive NPV. What do you know about
its payback? Its discounted payback? Its profitability index? Its IRR? Explain.
#2:
Youre trying to determine wheth
Tutorial 3 : Risk and Return I
Conducted by : Mr Chong Lock Kuah, CFA
0
Key Points
The average rate of return on a single risky asset from historical
data is :
n
R =
Rt
t=1
n
R1 + R2 +
=
+ Rn
n
The Geometric average return or geometric mean rate of ret
FIN 2004
Finance
FIN2004 Past Midterm 1
INSTRUCTIONS: There are 30 Multiple-Choice Questions in this paper. Shade the
most appropriate answer for each question in the answer sheet provided. ANSWER
ALL QUESTIONS. Remember to shade your Matriculation number
FIN2004 Midterm
FIN2004
MID-TERM
Semester II, 2011/2012
INSTRUCTIONS:
1.
This is a restricted open-book examination, consisting of 30 Multiple Choice Questions
on NINE printed pages. You are allowed to refer to a finance textbook, TWO A4sized sheets of pr
FNA2004
Midterm
FNA2004
MIDTERM
INSTRUCTIONS:
1. This is a complete open-book examination, consisting of 30 Multiple Choice
Questions. You are given 80 minutes to complete the examination.
2. Use a pencil to shade the most appropriate answer for each ques
FNA2004
Midterm
FNA2004
MIDTERM 2
INSTRUCTIONS: Circle the most appropriate answer for each question in the answer sheet.
Remember to write your matric. no. and shade the appropriate bubbles. Ignore the preceding
letters of your matric. no. when you are s
FIN 2004 Finance Tutorial 5 :
Bonds
Conducted by : Mr Chong Lock Kuah, CFA
1
Revisit some important concepts
A bond is a long-term contract under which a borrower (issuer) agrees to
make payments of interest and principal, on specific dates, to the holder
Tutorial 2 : Time Value of Money
Conducted by : Mr. Chong Lock Kuah, CFA
0
Key Points
The first step in time value analysis is to set up a time line, which will
help you to visualize what is happening in a particular problem
0
1
2
CF1
CF2
3
Year
I/YR
CF3
CHAPTER 15 RAISING CAPITAL
Answers to Concepts Review and Critical Thinking Questions 1.
A companys internally generated cash flow provides a source of equity financing. For a profitable company, outside equity may never be needed. Debt issues are larger
FIN2004 Tutorial 5
Conducted by LU Ruichang, October
Summary of Lecture 5
Bond s tructure
Coupon
Coupon
YTM
ra te
(diff? coupon ra te , e ffe ctive ra te )
Ma turity
Par
va lue
Summary of Lecture 5
Question 1
Bond X is a premium bond making
annual pa
FIN2004 Tutorial 6
Conducted by LU Ruichang, October
Summary of Lecture
La s t we e k, we ta lk a bout the pricing of the bond.
E s s e ntia lly, price =dis count of future ca s h flow
(coupon a nd pa r va lue ) (with a time limit). For
b ond, ca s h flow
FIN2004 Tutorial 7
Conducted by LU Ruichang, October
Summary of Lecture 8
Capital Budgeting 1
-Not all the market are in equilibrium.
Find out opportunity by the firm
-outflow and inflow are not on the same
time. (Time value of money!)
-Cost>Benefit (what
Tutorial 1 : Introduction & Overview of
Financial Management and Financial
Statement Analysis
Conducted by : Mr Chong Lock Kuah, CFA
0
#1:
Describe the key advantages associated with the corporate form
of organization.
The advantages of the corporate form
Please take note
The second quiz will be held on the 22 Oct 2012.
Topics include : Risk & Return II, Bonds, Common Stock and
Capital Budgeting I
There are 5 MCQs (time allowed : 20 minutes). You are allowed
to bring 2 sheets of A-4 size double sided Ch
FIN 2004 Finance Tutorial 6 :
Stock Valuation
Conducted by : Mr Chong Lock Kuah, CFA
1
Revisit Equity Valuation Methods
The intrinsic value of any investment is the present value of
the future cash flows that will accrue to the owner of the
investment ass
Tutorial 4 : Risk and Return II
Conducted by : Mr Chong Lock Kuah, CFA
The Markowitz Efficient Frontier
In the illustration below, the expected returns and standard deviations
of a large number of portfolios (opportunity sets) are plotted.
Expected
Return
FINANCE
FIN2004
Lecture 12: Options
0
In the Headlines:
The 10 Largest Trading Losses In History http:/newsfeed.time.com/2012/05/11/top-10biggest-trading-losses-in-history/slide/all/ March 11, 2012 (and Wikipedia). Excludes Hedge
Funds
Trader Name
Loss in
FINANCE
FIN2004
Lecture 5: Risk & Return Part 2
0
Last Lecture
1.
2.
3.
4.
5.
We should care about an assets return and risk characteristics.
Investors are risk-averse: For a given level of expected return,
investors prefer less risk to more risk.
There i
FINANCE
FIN2004
Lecture 7: Stock Valuation
0
Learning Objectives
Understand how stock prices depend on future dividends
and dividend growth
Be able to compute stock prices using the dividend
growth model
Be able to compute stock prices using the Corpor
FINANCE
FIN2004
Lecture 6: Bond Valuation
Valuation Generally
Recall in our first lecture, finance was described as a discipline
concerned with determining values and making optimal
decisions based on those values. In finance, optimal investment
decision
FINANCE
FIN2004
Lecture 9: Capital Budgeting 2
0
NPV Analysis: Best Decision Method
Last class we concluded that NPV was the best capital
budgeting decision method to apply. Recall that NPV involves
the evaluation of various capital investment proposals b
FINANCE
FIN2004
Lecture 4: Risk & Return Part1
0
Learning Objectives
Know how to calculate the actual and expected returns on
an investment
Know how to calculate the standard deviation, coefficient
of variation on an investment
Understand the historica
FINANCE
FIN2004
Lecture 10: Financial Planning & Forecasting
0
Managers Use Pro Forma Financial
Statements To:
1. Assess whether the firms anticipated performance is in
line with the firms own general targets and with
investors expectations.
2. Estimate t
FINANCE
FIN2004
Lecture 11: Working Capital Management
0
Introduction to Working Capital
Firms need cash to pay for all their day-to-day activities. They have
to pay wages, pay for raw materials, pay bills and so on. The money
available to them to do thi
FINANCE
FIN2004
Lecture 2: Financial Statement Analysis
Example: Accounting Fraud
Satyam Scandal Needs Fast Probe as Stocks Slide
by Subramaniam Sharma
Jan. 9, 2009 (Bloomberg) - India should act
quickly to shore up investor confidence after
an alleged a