Chapter 7 test
-Bonds are long-term debt obligations issued by corporations, the federal government, and state and local governments. Foreign
entities can also issue bonds in the U.S. to raise capital
Chapter 9 test
-The term proxy fight refers to a situation where one division of a firm attempts to take over operations currently under the control of
another division. False
-The preemptive right is
Bonds are long-term debt obligations issued by corporations, the federal government, and
state and local governments. Foreign entities can also issue bonds in the U.S. to raise
capital. True or false?
Bond A long-term debt instrument.
Call Provision A provision in a bond contract that gives the issuer the right to redeem the bonds
under specified terms prior to the normal maturity date.
Convertible
Determinants of Market Interest Rates
Business Finance - Chapter 6 notes from 3/5/12
I Quoted interest rates is equal to r.
The rate of interest on a security that is free of all risk; rRF is proxied
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Chapt er 6. Int erest Rat es
Interest rates can easily be observed. All it requires is reading the newspaper, watching television,
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Chapter 9
Actual (Realized)
Rate of Return,
The rate of return on a common stock actually received by stockholders in some past period.
greater or less than
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Capital Gains
Yield
Classified Stock
Cons
Chapter 8
Average Stock's Beta, bA
By definition, bA = 1 because an average-risk stock is one that
tends to move up and down in step with the general market.
Beta Coefficient, b
A metric that shows th
Chapter 7 key terms
Bond
A long-term debt instrument.
Call Provision
A provision in a bond contract that gives the issuer the right to redeem the bonds under specified
terms prior to the normal maturi
Model for Chapter 11, Basics of Capital Budgeting
12/12/08
On tab #1 we go through the main calculations done in the chapter. We recommend that you see our Excel
Tutorial if you don't understand some
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Chapter 9. Stocks and Their Valuation
This model is similar to the bond valuation models developed in Chapter 7 in that we employ discounted cash flow analysis to find the va
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Chapter 8. Risk and Rates of Return
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The higher a security's risk, the higher its required return. Risk can be thought of in two ways: (1) Stand-alone risk, where the secur
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Chapter 7. Bonds and Their Valuation
The value of any financial asset is the present value of the asset's expected future cash flows. The key
in
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Chapter 6. Interest Rates
THE DETERMINANTS OF INTEREST RATES (Section 6-3)
Interest rates can easily be observed. All it requires is reading the new
12-10-08
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Chapter 5. The Time Value of Money
This model is STRICTLY OPTIONAL. Neither students nor instructors need to go through it. However, if
someone wants to practice with Excel,
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Chapter 4. Analysis of Financial Statements
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This model is STRICTLY OPTIONAL. Neither students nor instructors need to go through it. However,
if s
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Chapter 3. Financial Statements, Cash Flows, and Taxes
This model is STRICTLY OPTIONAL. Neither students nor instructors need to go through it. However,
if someone wants to p