1.
net income =
ending essets=
payout ratio =
SH Equity=
liability =
account payable increase by
48400
501800
9.50%
296800
120200
9600
additions to equity =
Ending SH Equity =
ending total liability =
ending total liability and equity =
Net financing =
43
a)
Ive chosen the common stock category, which by 1998 6/30 accounted for $73bn. At the time, there had
been 4x6=24 weeks, which yields an average weekly issuance of:
73
3,04
24
$3.04bn per week, meaning that if WorldCom were to issue the full amount of
1. What is the current YTM om 5, 7 and 10 year Treasury? What do you notice about the yield
curve?
The yield to maturity on the aforementioned treasuries, are as follows:
5 year =8.29
7 year=8.31
10 year =8.28
Whats noticeable about the yield curve is, th
Chapter 1
09/01/2015
Corporations represent 85% of US business revenue
Financial manager goal is to maximize the value of business
Valuation Principle- shows how to make costs and benefits of a decision
comparable in order to weigh them properly
Four type
Chapter 2
09/13/2015
Firms Disclosure of Financial Information
o Financial statements- accounting reports issued by a firm quarterly
and/or annually that present past information and a snapshot of the
firms assets and the financing of those assets
o Annua
Cheese Cake Factory, Inc. (CAKE)
Complete the following tables with information from the Cheesecake Factory 10-K
for the fiscal year ended December 30, 2014 found in this folder:
Consolidated Balance Sheet ($000s)
Fiscal year end date:
Total Current Asset
Finance Final Study Guide
Chapter 1: Corporate Finance and the Financial Manager
Financial manager- plays a critical role inside any business enterprise
o Decides what products to launch
o How to develop products
o What profits to keep and how to return
Chapter 6
11/11/2015
Coupon bonds
Pay face value at maturity
Also make regular coupon interest payments
Two types of US Treasury coupon securities are currently traded in
financial markets
o Treasury notes
Original maturities from one to ten years
o T
Chapter 3
09/23/2015
Cost-benefit analysis
Quantifying costs and benefits
o Suppose a jewelry manufacturer has the opportunity to trade
200 ounces of silver and receive 10 ounces of gold today
o To compare the costs and benefits, we need to convert
o If
Chapter 4
09/30/2015
Competitive market
Time Value of Money and Interest Rates
The time value of money
o In general, a dollar today is worth more than a dollar in one
year
The difference in value between money today and money in the
future the time valu
Chapter 5
10/28/2015
Interest rate quotes and adjustments
Interest rates are the price of using money
Effective annual rate
Adjusting the discount rate to different time periods
o A discount rate of r for one period can be converted to an
equivalent di
Chapter 7
11/18/2015
Stock market reporting: stock quotes
Common stock
Ticker symbol
Preferred stock
Stock with preference over common stock with regards to
o Payment of dividends
o Proceeds from liquidation
Cumulative vs. non-cumulative preferred st
Problem 1-3
Please read the paper by Covas and Haan. The Cyclical Behavior of Debt and Equity Finance. The America
1.What is a research question?
2.What is the motivation of the paper?
3.What approaches do authors apply to explore debt and equity behaviou
FE Chapter 11: Project Analysis and Evaluation
Sensitivity Analysis investigation of what happens to NPV when only one
variable is changed
The greater the deviation from the original NPV or IRR, the more
sensitive the variable is
Scenario Analysis the de
FE 323 FINAL EXAM FORMULAS
Returns
Single Period Return1 =
2015
Div1 P1 P0
P0
P0
Annualized Return (4 quarters) =
(1 R1 )(1 R2 )(1 R3 )(1 R4 ) 1
Average Return (T years) =
Variance and standard deviation of Returns (R)
Note: T is # of periods
Standard Dev
FE 323 Final Study Guide
At the end of chapter 11, you should:
-know how to calculate total periodic return as the sum of the dividend yield and capital gain
yield
-know how to calculate annual return from quarterly returns
-know how to calculate the aver
FE 323 FINAL EXAM FORMULAS
Returns
Single Period Return1 =
2015
Div1 P1 P0
P0
P0
Annualized Return (4 quarters) = (1 R1 )(1 R2 )(1 R3 )(1 R4 ) 1
Average Return (T years) =
Variance and standard deviation of Returns (R)
Note: T is # of periods
Standard Dev
Great post Carmel. I left some comments below.
Artificial intelligence is everywhere. There are advantages and disadvantages in
artificial intelligence (AI). One of the main disadvantages is the cost involved in
AI. The cost incurred for developing, maint
Assignment 5
a
b.
Common stock holders have the capacity to elect directors for the company
Common stock holders can purchase additional stocks sold by the company
P D1 D 2 D3 . D
0
(1 rs )1 (1 rs ) 2 (1 rs ) 3
(1 rs )
Constant growth stocks are the stoc
Assignment 4
a.1.
T Bill does not depend on the state of the economy. T-Bills is considered risk-free because it is guaranteed by the
default. T-Bills are not guaranteed to have a the risk free rate. Risk fee rate equals real risk free rate + inflation. S
Assignment 3
a.
b.
Par Value
Coupon Rate
Years for the maturity
Called provisions
Defualt Risk
Issue Date
A call provision that gives the issuer the right to call the bonds for redemption. The call provision generally state
issuer must pay the bondholders
A.
Production Opportunities
Time Preference for consumption
Risk
Inflation
B.
Real risk free rate is
the rate that would exist on a riskless security in a world where no
inflation was ex
Nominal risk free rate is the real risk free rate (r*) plus the infl