Cost of
Capital
CHAPTER 13
Things to know about weighted
average cost of capital,
WACC(Ch 13).
1.
Determine the inputs of the firms cost of capital.
2.
Measure cost of debt, preferred and common stock.
3.
Compute a firms market weighted average cost of ca
Systematic
Risk
CHAPTER 12
Things to know about
systematic risk (Ch 12).
1.
Calculate the expected return and volatility (standard deviation) of a
portfolio.
2.
Explain in your own words the relationship between systematic risk
and the market portfolio.
3
Stock Valuation: A
Second Look
Chapter 10
What you need to know
about stock valuation,
a/k/a Ch 10.
1.
Calculate the value of a stock as the present value of the companys
free cash flows and by applying relative valuation models.
2.
Explain in your own wo
CAPITAL
BUDGETING
Chapter 8
WHAT YOU SHOULD
KNOW ABOUT CHAPTER
8.
1. Calculate net present value (NPV), internal rate of return
(IRR), modified IRR, payback period.
2. Make investment decisions using all decision rules.
3. Explain in your own words how to
CORPORATE FINANCE AND
THE FINANCIAL MANAGER
Chapter 1
IMPORTANT
INFORMATION IN
CHAPTER 1
1. Explain in your own words the role and reason for
the role of all corporate management.
2. Explain why management serves stockholders not
stakeholders and the ethi
Risk and Return In
Capital Markets
Chapter 11
about risk and return, a/k/a
Ch 11.
1. Differentiate between high
risk securities and low risk
securities.
2. Compute the average
return and volatility of
returns from a set of
historical asset prices.
3. Exp
FUNDAMENTALS OF
CAPITAL BUDGETING
Chapter 9
WHAT YOU NEED TO
KNOW ABOUT CH 9.
1. Identify, calculate and forecast net incremental cash
flows from an investment/project.
2. Recognize common pitfalls that arise in identifying a
projects incremental free cas
Answer all questions. Each question is worth one point.
1. James Surowiecki s book claims that _
(a) under the right circumstances, groups are remarkably intelligent, and are often
smarter than the smartest people in them
(b) stock prices typically exhibi
FINANCIAL
MODELING AND
PRO FORMA
Chapter 18
IMPORTANT
INFORMATION IN CH 18.
1. Explain in your own words the goals of long-term financial planning.
2. Create pro forma income statements and balance sheets using the
percent of sales method.
Note: Were igno