6. lhlnnum n An E
The unit! alumnn prom hunk-E. the hensfer of capital emeng tierem ejtilstlnt lncbde hdiultluais,
small business, limits, mndal Hermetileries, eempanleeJ mutuai funds. and Euler mt pachaets. In a
deuereped market emnomv. tapihl ees freely
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 put the
unknown variable, the PV term, on the left-hand
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 some specied time in the future, given a specied rate of
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 $1,000 and represents the amount borrowed from the
bonds rs
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 corporate yield curve (r*t, IPt, MRPt, DRPt, and LPG). The
Josue chamosa
Chapter 14,15 summaries
Chapter14:
Depository Institutions Deregulations and Monetary Control Act
(DIDMCA) of 1980 and Garn-St. Germain Depository Institutions Act (GSGDIA) of 1982
addressed the crisis
allowed interest-bearing transaction a
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: Present value of annuity of cash inflows is found as follo
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 the best answer for each of the following six
problems.
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 its managers is
referred to as an
Principal-agent conf
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 value of firm / number of shares outstanding
prior to repu
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 600 shares, respectively. This is true because if
price
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
Governments (local, state, federal)
SSUs have more i
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 indicate the letter of the best answer for each of the
follow
Fin 4340
Spring 2017
Professor Wu
UT Tyler
Homework Set #1 Solution
1. E. Amount after 5 years at 4.5% with semi-annual compounding = $50,000 x
(1+0.045/2)10 = $62,460.17 and amount after 5 years at 5% with semi-annual
compounding = $50,000 x (1+0.05/2)10
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 upgrading a potential lead to a potential prospect, 6 crite
Net Income
Company Information Data Table
Increase in accounts receivable
$
Increase in inventories
$
Operating income
$
Interest expense
$
Increase in accounts payable
$
Dividends
$
Increase in common stock
$
Increase in net fixed assets
$
Depreciation e
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 present value when there are non-annual compounding per
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 historical relationship between risk and rates of return in the
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 formula?
Be able to use financial calculator to find all t
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 option prior to its expiration date, even if this would y
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 value of the cash flows of the project can result in erron
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 value is changed to study its effect on the
expected va
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 need to do replacement analysis to determine which option
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 evaluate project risk. You would change
several input vari
9. Real options Aa Aa EL
Projects are also often embedded with different options that can help making decisions under uncertainty. There are
techniques used to evaluate these embedded options which are called real options. The models used to value these
o
Energy Economics and Finance
In this unit, we discuss some economic and finance concepts that are particularly
relevant to oil and gas industry.
Specifically, we will discuss concept of elasticity of demand, analyze energy firms
decision to supply oil a
What are Derivatives?
Definition: Security whose value derives from (depends on) values of other
securities/assets.
In this unit, we will discuss three types of derivatives: options, forwards and futures.
Others not discussed here: swaps or compound de
Oil and Gas Industry
This is a complex, multi-trillion dollar industry that is traditionally classified as follows:
Upstream- This refers to exploration and production of oil and gas.
Midstream- This refers to transportation and processing of oil and g