SAMPLING
As an efficient method to obtain information about a population, one frequently needs to sample
from a population. There are many different probabilistic sampling methods. In addition to
random sampling, two other frequently used techniques are s
Derivative Homework Extra Problems
1. Suppose you enter into a six-month forward contract on a non-dividend-paying
stock when the stock price is $30 and the risk-free interest rate (with continuous
compounding) is 12% per annum. What is the theoretical fo
Derivative Homework Extra Problems
1. Suppose you enter into a six-month forward contract on a non-dividend-paying
stock when the stock price is $30 and the risk-free interest rate (with continuous
compounding) is 12% per annum. What is the theoretical fo
Lecture 4: Making Capital Investment Decisions
Market Value vs. Book Value
o Book Value: the name of an asset reflected on the companys financial statements
why is book value not = market value
book value is determined by non-market driven accounting pr
January 14, 2016
Lecture 1
Bonds: A bond is just a promissory note where the bond issuer agrees to pay the holder, or lender a specified
amount of interest each year, as well as repaying the original principal. Note that the principal amount on the
bond i
Lecture 3: Net present Value & Other Investment Rules
Capital Budgeting Decision Analysis:
o Purpose: allocating the firms resources (its capital) to different projects (deciding how to spend the left
side of the balance sheet) this is called the capital
Lecture 2
Historical Returns:
o We know how to discount the cash flows using the cost of capital to be able to present value the cash
flows
o We now focus on calculating the required rate of return
o Historical perspective is useful
Intuition:
The great
Chapter 16&17: Capital Structure
Leverage:
o Leverage obviously increases the risk of the payouts to shareholders
o Should the value of the levered firm be different from the value of the unlevered firm?
o M&M (1958) proved otherwise, given a few assumpti
FINC 3105
Study Guide for Test 2
From Handout 5
You should be able to calculate:
the holding period return.
the expected cash flow.
the expected rate of return for an individual security.
the expected rate of return for an portfolio.
the risk premium.
bet
Profit= sales-expenses
Net sales= gross sales- R.A.
COGS= #units sold x cost per unit
End inv.= Beg inv. + purchases COGS
Gross P= Net sales COGS
Annual dep ex= ( Org. cost- salvage value)/est use life
Earnin per share= net income/ # shares outstanding
Ma
FIN 361: Advanced Managerial Finance
Professor: Wendell Licon
W.P. Carey School of Business
Arizona State University
Course Outline: Spring 2016 - 12114
Class Time and Location:
Th: 6:00 8:45 PM, BAC 311
Office:
BAC 583
Telephone:
480-965-3258
Email:
wend