Assignments: Dividends
1.
2.
3.
EJH Company has a market capitalization of $1 billion and 20 million shares outstanding. It plans to distribute
$100 million through an open market repurchase. Assuming perfect capital markets:
a.
What will the price per sh
Assignments: Arbitrage and The Law of One Price
1.
Which of the following statements about the Law of One Price is incorrect?
A) If equivalent investment opportunities trade simultaneously in different competitive markets, then they
must trade for the sam
Assignments: NPV and Other Investment Criteria
1.
Your firm has identified three potential investment projects. The projects and their cash flows are shown here:
Suppose all cash flows are certain and the risk-free interest rate is 10%.
a. What is the NPV
Formulas That You May Use When Solving the Problems in Quiz I
Net Present Value: = = 0 +
1
(1+)
2
+ (1+)
2 + +
Net Present Value of an annuity of $X per year for n years with discount rate of r:
Net Present Value of perpetuity ($X per year with discount r
Formulas That You May Use When Solving the Problems in Quiz II
Payoff to Call Holder
( ) >
0
Payoff to Call Writer
( ) >
0
Payoff to Put Holder
0
( ) <
Payoff to Put Writer
0
( )
<
Put-call parity: = + ()
Binomial Pricing Formula
=
=
1
Outlying Observations:
Why pay attention?
Can cause us to misinterpret patterns in plots
Outliers can affect visual resolution of remaining data
in plots (forces observations into clusters)
Temporary removal of outliers, and/or
transformations can spre
Texts
Canvas
Evaluation
Objectives
Overview
Finance 6220: Course Introduction
Feng Zhang
Assistant Professor of Finance
David Eccles School of Business
University of Utah
Next Class
Texts
Canvas
Evaluation
Objectives
Overview
Next Class
Texts & Materials
2016/10/27
Quick Guide: Interpreting Simple Linear Model Output in R
Quick Guide: Interpreting Simple Linear
Model Output in R
Felipe Rego
October 2015
Linear regression models are a key part of the family of supervised learning models. In particular, lin
Introduction
NPV
Payback
PI
IRR
Summary
Introduction
NPV
Payback
PI
IRR
Summary
Objective:
NPV and Other Investment Criteria
At the end of this lecture, you should be able to evaluate a project
with a combination of the following techniques:
Feng Zhang
As
Exam 1 Study Guide FINAN 6050
There are two components to the exam: the first will be in class on paper (due 10/27 in
class) and the second a take-home analysis (submitted on Canvas by 6pm on 11/3). The
in-class portion will include interpreting output fr