Tues. Oct. 22. 2013.
Chapter 5 Intro to Risk & Return
Each financial security has different levels of expected return and risk
Expected return: the return that is expected to be earned each period on a given asset in the future
Tues. Oct. 8. 2013.
Chapter 8 Stocks
STOCK VALUATION AND MARKET EFFICIENCY
Assets are valued by computing the PV of their future cash flows
Equity contract: A contract between the firm and an investor that gives the investor a proportion of
Tues. Nov. 26. 2013.
Free Cash Flow
Free cash flow: amount of money that youd receive at the end of each year if you were the only
owner of a company that had no debt
If the company had debt, then free cash flow = amount of money youd recei
Tues. Nov. 19. 2013.
Chapter 2 Financial Statement & Ratio Analysis
Goal of the financial manager is to maximize shareholder wealth occurs at max. stock price
Stakeholders look at the firms financial statements for answers to their questions
Thurs. Sept. 26. 2013.
ST Financing Alternatives
ST capital needs are usually driven by cash flow imbalances cause by growth& cash conversion cycle
Cash conversion cycle: cash is needed to buy raw materials before cash is received from sale
Diversification Question Types
Market risk factor is a risk that influences only a small # of companies false
Both systematic and unsystematic portions of asset matter in determining expected return
Beta = 1.5 means the stock has 50% m
Tues. Sept 17-24. 2013.
Chapter 4 Annuities and Loans
FV of Streams of Payments
Chapter 3 examined the FV and PV of a single deposit or sum
We want to know the FV of a series of equal deposits over a period of time
You can find the future va
Tues Oct 1-8 2013.
Chapter 7 Interest Rates & Bonds
Fixed income securities: class of securities that pay a fixed income to the holder bonds
Bonds: loans from holder to issuer. Stipulates how and when the money will be paid back as well as
Thurs. Oct 24-31. 2013.
Chapter 6 Diversification
Diversification: giving something variety manages risk of a portfolio by including variety of assets
How Diversification Works: Portfolio Standard Deviation
False: a low-risk portfolio is con
Chapter 15.1 Management of Working Capital
Focus on ST assets and liabilities
ST current assets = cash, AR, inventory 15-50% of most firms assets
Thurs. Nov. 13. 2013.
Managing these can produce major savings
Goal: determine what managers c
B 383 Finance
Tues. Nov. 5-12. 2013
FUTURES & OPTIONS
Futures and options are derivative contracts.
Derivative = price of future/option is derived from the price (level) of an underlying asset (variable).
Derivatives are tools that companies use to redu