INTRODUCTORY FINANCE - CONCEPTS IN VALUATION
Class Notes
BASIC ALGEBRA REVIEW
Important Rules for Power Functions
1) x a ( x c ) = x a + c
2) ( x a ) c = x ac
5) x ! a =
1
xa
x = x 1/ 2
7)
xa
a !c
6) c = x
x
8)
x = x 1/ a
9)
3) ( xz ) a = x a z a
a
c
x a
Chapter 14
Cost of Capital
Lecture Agenda
Required Return vs. Cost of Capital
Cost of Equity
Cost of Debt
Cost of Preferred Stock
Weighted Average Cost of Capital (WACC)
Divisional and Project Costs
Flotation Costs and the WACC
Required Return vs. Cost of
Chapter 13
Return, Risk, and the Security Market
Line
Lecture Agenda
Expected Returns and Variances
Portfolios
Announcements, Surprises, and Expected Returns
Systematic Risk and Unsystematic Risk
Diversification and Portfolio Risk
Systematic Risk and Beta
Chapter 12
Lessons From Capital Market History
Lecture Agenda
Returns
Capital Market History
Average Returns
Variability of Returns
Arithmetic and Geometric Average Returns
Returns #1 You purchased a bond for $600 and then received 2 coupon
payments of $3
Chapter 6
Discounted Cash Flow Valuation
Lecture Agenda
Future and Present Values of Multiple Cash Flows
Annuities and Perpetuities
Effective Annual Rates (EARs) and Annual Percentage Rates (APRs)
Loans
Practice Problems
Future and Present Values of Multi
Chapter 11
Project Analysis and Evaluation
Lecture Agenda
Evaluating NPV Estimates
Scenario Analysis
Sensitivity Analysis
Evaluating NPV Estimates
NPV analysis is based on estimates.
Forecasting risk looks at how sensitive an NPV is to changes in cash flo
Chapter 1
Introduction To Corporate Finance
Lecture Agenda
Financial Management Decisions
Forms of Business Organization
Goal of Financial Management
Agency Problem
Financial Markets and the Corporation
Financial Institutions
Financial Management Decision
Brock University
Basic Algebra Review
Professor: Mohamed A. Ayadi
FNCE 2P91: Corporate Finance I
Spring 2011
Power Rules
a
c
1) x ( x ) = x
a
2) ( x )
c
a +c
5) x
= x ac
a
a
3) ( xz ) = x z
a
=
1
xa
x = x 1/ 2
7)
xa
a c
6) c = x
x
8)
a
a
x = x 1/ a
x a =
GOODMAN SCHOOL OF BUSINESS, BROCK UNIVERSITY
Department of Finance, Operations, and Information Systems
06 FNCE 2P91 Corporate Finance I Fall 2016
Instructor Name
Clarke Melville
E-mail
[email protected]
or
[email protected]
Class Location and ti
DEPARTMENT OF FOIS
FACULTY OF BUSINESS
BROCK UNIVERSITY
SOLUTION MIDTERM EXAMINATIO
Course: FNCE 2P91
Date of Examination: June 3, 2006
Instructors: M. A. Ayadi and O. Ozocak
Question 1. (12 marks)
Circle the correct answer.
1. The process of planning and
Best Singers (BS), Inc., projects unit sales for a new opera tenor emulation implant as follows:
Year
Unit Sales
1
100,000
2
105,000
3
110,000
4
114,000
5
120,000
Production of the implants will require $600,000 in net working capital to start and additio
DEPARTMENT OF FOIS
FACULTY OF BUSINESS
BROCK UNIVERSITY
SOLUTIONFINAL EXAM
Course: FNCE 2P91
Date of Examination: July 4, 2006
Instructors: Ayadi and Ozocak
Question 1. (5 marks)
Choose only one of the 5 choices and clearly circle the letter in each quest
DEPARTMENT OF FOIS - FACULTY OF BUSINESS
BROCK UNIVERSITY
SOLUTION MIDTERM EXAMINATION
Course: FNCE 2P91 - Date of Examination: June 6, 2009
Instructors: M.A. Ayadi & O. Ozocak
Question 1. (8 marks)
Circle the correct answer.
1. The process of planning an
BROCK UNIVERSITY
FINANCE 2P91
Solution -Midterm Exam
OCTOBER 25, 2003
120 MINUTES. THERE ARE 9 PAGES IN TOTAL, PLEASE ENSURE THAT YOUR EXAM IS
COMPLETE. THERE ARE 100 MARKS IN TOTAL TO BE ALLOCATED, WORTH 30%
OF YOUR FINAL GRADE.
SECTION 1: 10 MULTIPLE CH
CHAPTER 6
DISCOUNTED CASH FLOW VALUATION
Learning Objectives
LO1
LO2
LO3
LO4
How to determine the future and present value of investments with multiple cash flows.
How loan payments are calculated and how to find the interest rate on a loan.
How loans are