

To help your company succeed, you must be able to evaluate proposals and ideas related to anything and understand the ways that value
adding proposals can be funded
Providers supply cash now to us
Accelerated Depriciation
Total Sales
 Total variable costs
 total fixed costs
 Accel Depri expense
33%
= EBIT (op income)
 Taxes on op income
= Aftertax op income
+ Accel Derpi expense
= Net Cash
CFt
(1+r )t
Most projects with conventional cash flows start with a large initial investment and the PV of
the initial CF is itself
NPV = the sum of all cash flows
n
o
( CFt)t
 CF0
1+ r
CF0 is th
Returnoutcome of your investment
Risk free an investment that has the potential to provide only one outcome or return
Standard deviation measures total risks
o Only holding 1 stock go with standard
6. lhlnnum n An E
The unit! alumnn prom hunkE. the hensfer of capital emeng tierem ejtilstlnt lncbde hdiultluais,
small business, limits, mndal Hermetileries, eempanleeJ mutuai funds. and Euler mt pa
The Calculation of a Future Value
Next, lets rearrange the equation to isolate the present value (PV) term by dividing both sides of
the equation by the . Then, we'll simply rewrite the equation to
4. Introduction to the present value of money Aa Aa EL
Under the concepts of the time value of money, you can determine the current, or present, value of a cash receipt or
payment that will occur at s
2. Characteristics of bonds Aa Aa E
To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is
essential.
For example:
0 A bonds is generally $1,0
15. Factors that impact the yield curve Aa Aa E
There are three factors that can affect the shape of the Treasury yield curve (r*t, IPt, and MRPt) and five factors that
can affect the shape of the cor
Fin 4340
Fall 2015
Professor Wu
UT Tyler
Homework Set #4 Solution
1. C. NPV =  initial cost + present value of annuity of cash inflows = $89,000 +
($21,000/0.115) x (1 1/1.1157) = $8,377.74.
FC: Pre
Fin 4340
Fall 2015
Professor Wu
UT Tyler
Homework Set #4
Direction: Launch a new Word document and begin by putting your name and the date on the top
right hand corner of the first page. Then choose t
A firm created as a separate and distinct legal entity that may be owned by one or
more individuals or entities is called a
Public company
The potential conflict of interest between a firms owners and
Fin 4340
Fall 2015
Professor Wu
UT Tyler
Homework Set #3 Solution
1. E. Interest tax shield = interest expense x tax rate = $51,000 x 0.32 = $16,320.
2. E. Share price prior to repurchase = market val
Fin 4340
Fall 2015
Professor Wu
UT Tyler
Homework Set #5 Solution
1. A. To ensure all 1,000 shares are sold, shares must be sold to bidders A, B, C and D since
they wish to purchase 100, 100, 500 and
Brief Introduction to Finance
Why have a financial system?
It is to transfer funds from surplus spending units (SSUs) to
deficit spending units (DSUs).
SSUs and DSUs can be:
Households
Businesses
Fin 4340
Spring 2017
Professor Wu
UT Tyler
Homework Set #3
Direction: Launch a new Word document and begin by putting your name and the date on the top
right hand corner of the first page. Then indica
Fin 4340
Spring 2017
Professor Wu
UT Tyler
Homework Set #1 Solution
1. E. Amount after 5 years at 4.5% with semiannual compounding = $50,000 x
(1+0.045/2)10 = $62,460.17 and amount after 5 years at 5
Personal Selling Exam 1 Fall 2016
Name:_
Question 1: Given what you know about personal selling and the sales profession; argue for and against
the concept of the born salesperson.
Question 2: In upgr
Net Income
Company Information Data Table
Increase in accounts receivable
$
Increase in inventories
$
Operating income
$
Interest expense
$
Increase in accounts payable
$
Dividends
$
Increase in commo
Chapter 5 Notes
The Time Value of Money
Learning Objectives:
Explain the mechanics of compounding, and bringing the value of money back to the present.
Understand annuities
Determine the future or
Chapter 6 Notes
The Meaning and Measurement of Risk and Return
Learning Objectives:
Define and measure the expected rate of return and the riskiness of an individual investment.
Compare the historic
Key Equations
Current Ratio = Assets / Current Liabilities
AcidTest Ratio = (Cash + Accounts Receivable) / Current Liabilities
Days in Receivables = Accounts Receivable / Daily Credit Sales = Acco
Review for exam 2
Future value (single or multiple cash flows)
How to calculate future value?
How does the future value change corresponding to the changes in the variables in
the future value form
FIN 534 FINAL EXAM PART 1 & 2
PART 1
1. Which of the following statements is CORRECT?
Answer
If the underlying stock does not pay a dividend, it does not make good economic sense to
exercise a call op
3. Inflation in project analysis Aa Aa IE
It is often easy to overlook the impact of inflation on the net present value of the project. Not incorporating the
impact of inflation in determining the val
6. Sensitivity and scenario analysis
Different techniques of project risk analysis involve different input variables and assumptions.
The procedure in which one of the elements affecting the expected
8. Analysis of a replacement project A; A3 a
At times rms will need to decide if they want to continue to use their current equipment or replace the equipment with newer equipment.
The company will ne
6. Sensitivity and scenario analysis Aa Aa
Different techniques of project risk analysis involve different input variables and assumptions.
Suppose you are using the scenario analysis technique to eva