CHAPTER13
RETURN, RISK, AND THE SECURITY MARKET LINE
Learning Objectives
LO1
LO2
LO3
LO4
The calculation for expected returns and standard deviation for individual securities and portfolios.
The principle of diversification and the role of correlation.
Sy
Project Evaluation
A company estimates 16,500 units of a new product could be sold annually
over the next 8 years at a price of $23,500 each. Variable cost per unit is
$19,700 and fixed costs total $31 million per year. Start-up costs include $80
million
CHAPTER 2
FINANCIAL STATEMENTS, TAXES, AND CASH FLOWS
Learning Objectives
LO1
LO2
LO3
LO4
LO5
The difference between accounting value (or book value) and market value.
The difference between accounting income and cash flow.
How to determine a firms cash f
CHAPTER 1
INTRODUCTION TO CORPORATE FINANCE
Learning Objectives
LO1
LO2
LO3
LO4
LO5
The basic types of financial management decisions and the role of the financial manager.
The financial implications of the different forms of business organization.
The go
CHAPTER 8
STOCK VALUATION
Learning Objectives
LO1 How stock prices depend on future dividends and dividend growth.
LO2 The characteristics of common and preferred stocks.
LO3 The different ways corporate directors are elected to office.
LO4: The stock mar
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
GOODMAN SCHOOL OF BUSINESS
BROCK UNIVERSITY
Department of Finance, Operations, and Information Systems (FOIS)
FNCE 2P91, Corporate Finance I
Winter 2014 Quiz #2
Name:
Student Number:
Section:
Answer all questions on the quiz paper and hand it in at the co
GOODMAN SCHOOL OF BUSINESS
BROCK UNIVERSITY
FNCE 2P91, Corporate Finance I
Fall 2013 Quiz #1
Name:
Student Number:
Section:
Answer all questions on the quiz paper and hand it in at the completion of the quiz. No aids other than
those specified are permitt
CHAPTER 7
INTEREST RATES AND BOND VALUATION
Learning Objectives
LO1 Important bond features and types of bonds.
LO2 Bond values and yields and why they fluctuate.
LO3 Bond ratings and what they mean.
LO4 How are bond prices quoted.
LO5 The impact of infla
CHAPTER 5
INTRODUCTION TO VALUATION: THE TIME VALUE
OF MONEY
Learning Objectives
LO1
LO2
LO3
LO4
How to determine the future value of an investment made today.
How to determine the present value of cash to be received at a future date.
How to find the ret
CHAPTER 9
NET PRESENT VALUE AND OTHER INVESTMENT
CRITERIA
Learning Objectives
LO1
LO2
LO3
LO4
LO5
LO6
LO7
How to compute the net present value and why it is the best decision criterion.
The payback rule and some of its shortcomings.
The discounted payback
Inputs
P0
F $1,000.00
C
t
YTM 1.00%
Instructions
Current price of the bond
Face value of the bond
Coupon payment
Number of coupon payments remaining
Unknown yield to maturity
Step 1: Enter the input variables provided in the question into blue shaded boxe
CHAPTER13
RETURN, RISK, AND THE SECURITY MARKET LINE
Learning Objectives
LO1
LO2
LO3
LO4
The calculation for expected returns and standard deviation for individual securities and portfolios.
The principle of diversification and the role of correlation.
Sy
CHAPTER 11
PROJECT ANALYSIS AND EVALUATION
Learning Objectives
LO1
LO2
LO3
LO4
LO5
How to perform and interpret a sensitivity analysis for a proposed investment.
How to perform and interpret a scenario analysis for a proposed investment.
How to determine
CHAPTER14
COST OF CAPITAL
Learning Objectives
LO1
LO2
LO3
LO4
LO5
How to determine a firms cost of equity capital.
How to determine a firms cost of debt.
How to determine a firms overall cost of capital.
How to correctly include flotation costs in capital
THIS SCRIPT WILL NOT BE DEPOSITED IN THE LIBRARY RESERVE
GOODMAN SCHOOL OF BUSINESS
BROCK UNIVERSITY
Department of Finance, Operations, and Information Systems (FOIS)
FNCE 2P91, Corporate Finance I
Winter 2014 Midterm Examination
March 1, 2014 (9:00a to 1
CHAPTER12
SOME LESSONS FROM CAPITAL
MARKET HISTORY
Learning Objectives
LO1
LO2
LO3
LO4
How to calculate the return on investment.
The historical returns on various important types of investments.
The historical risks on various important types of investme
CHAPTER 10
Making Capital Investment Decisions
Learning Objectives
LO1
LO2
LO3
LO4
LO5
LO6
LO7
LO8
How to determine relevant cash flows for a proposed project.
How to project cash flows and determine if a project is acceptable.
How to calculate operating
State
Probability
RA
RB
R
50.00%
-20.00%
30.00%
E
50.00%
70.00%
10.00%
wA
0.00%
wB
100.00%
CORRA,B
-1.0
A
B
E(R)
25.00%
20.0%
2
0.20250
0.01000
45.00%
10.00%
E(RR)
30.00%
E(RE)
10.00%
E(RP)
20.00%
P
2
P
0.01000
10.00%
CORRA,B:
P2
0.01000
P
10.00%
GOODMAN SCHOOL OF BUSINESS
BROCK UNIVERSITY
FNCE 2P91, Corporate Finance I
Fall 2013 Quiz #2
Name:
Student Number:
Section:
Answer all questions on the quiz paper and hand it in at the completion of the quiz. No aids other than
those specified are permitt
Midterm Review
Practice Problem #1 You want to be able to retire 25 years from now with
monthly retirement income of $12,000 for 30 years (first withdrawal will be
made 25 years and 1 month from now). You also want to purchase a boat in 15
years at an est
DEPARTMENT OF FOIS - FACULTY OF BUSINESS
SOLUTION MIDTERM EXAMINATION II
FNCE 2P91 - Spring 2012
Instructor: M. Ayadi
Question 1. (25 marks)
Please circle one of the four answers:
1. A stock pays a constant annual dividend and sells for $56.10 a share. If
Concepts in Valuation:
Time Value of Money
2015 - Mohamed A. Ayadi
Learning Objectives
Be able to compute the future and present values of an
investment
Be able to compute the future and present values of a
stream of cash flows (annuities and perpetuities
Interest Rates
2015 - Mohamed A. Ayadi
Lecture Outline
Interest Rates
Compounding
APR vs. EARs
2015 - Mohamed A. Ayadi
2
Simple Interest
Interest is only paid on the initial balance
Example: Invest $100 for two years, at 10% simple
interest
Interest in y
Introduction to Corporate
Finance
2015 - Mohamed A. Ayadi
Learning Objectives
Know the basic types of financial management
decisions and the role of the financial manager
Know the financial implications of the different forms
of business organization
Know
THIS SCRIPT WILL NOT BE DEPOSITED IN THE LIBRARY RESERVE
GOODMAN SCHOOL OF BUSINESS
BROCK UNIVERSITY
Department of Finance, Operations, and Information Systems (FOIS)
FNCE 2P91, Corporate Finance I
Fall 2015 Midterm Examination
October 31, 2015 (9:00a to
GOODMAN SCHOOL OF BUSINESS
BROCK UNIVERSITY
Department of Finance, Operations, and Information Systems (FOIS)
FNCE 2P91, Corporate Finance I
Fall 2015 Quiz #1
Name:
Student Number:
Section:
Answer all questions on the quiz paper and hand it in at the comp
GOODMAN SCHOOL OF BUSINESS
BROCK UNIVERSITY
Department of Finance, Operations, and Information Systems (FOIS)
FNCE 2P91, Corporate Finance I
Fall 2015 Quiz #1
Name:
Student Number:
Section:
Answer all questions on the quiz paper and hand it in at the comp