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. True
-The interest paid on a municipal bond, otherwis
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 the right of current stockholders to buy new shares in
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?
True
False
status: correct (1.0)
correct: true
your an
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 Bond A bond that is exchangeable at the option of the
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 by the T-bill rate or the Tbond rate. RRF includes an i
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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,
or surfing the internet. However, it is not so easy to see the factor
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
s
Capital Gains
Yield
Classified Stock
Constant Growth
(Gordon) Model
s
s
may be
or rs.
The capita
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 the extent to which a given stock's returns move up
and d
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 maturity date.
Convertible Bond A bond that is exchangeable a
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 of the Excel functions.
Table 11-1. Data on Projects S
09 Chapter model
12/12/08
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 value of a firm's stock.
COMMON STOCK VALUATION (Section
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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 security is considered in isolation, and (2) portfolio risk,
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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
inputs are (1) the expected cash flows and (2) the approp
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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 newspaper, watching television, or surfing the internet. H
12-10-08
05 Chapt er model
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, then the model can be useful. Also, on the tabs we sho
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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 someone wants to practice with Excel, then the model can
03 Chapter model
12/10/08
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 practice with Excel, then the model can be useful. Also,