KENNESAW STATE UNIVERSITY
Finance 3100 - Principles of Finance
Section 09 (CRN 13603)
Syllabus Spring 2017
SCHEDULE:
LOCATION:
INSTRUCTOR:
PHONE:
EMAIL:
OFFICE:
OFFICE HOURS:
Tuesday & Thursday 5:00pm6:15pm
Burruss Building 368
Yannick Post
470-578-6999
y
1
Principles of Finance FIN
3100
Chapter 1 Financial Management
Yannick Post
May not be used without permission
2
Agenda
Define finance and financial management.
Discuss the three main categories of financial management.
Distinguish between the four ma
1
Principles of Finance FIN
3100
Chapter 3 - The Time Value of Money
Part 1
Yannick Post
May not be used without permission
2
Agenda
Understand why we measure value.
Understand the time value of money.
Learn how time value of money concepts can be app
Resume Template: Teaching Document
Kathy Hallmark, Career Services
Note: Resume Template available as Word doc: http:/careers.kennesaw.edu/business/
under Important Resources
NAME
www.linkedin.com/in/yourname/
Street Address (dont abbreviate St. or Dr.)
(
Reginald is about to lease an apartment for 12 months. The landlord wants him to make the lease
payments at the start of the month. The monthly payments are $1,300 per month. The landlord says he
will allow Reg to prepay the rent for the entire lease with
Problem:
A car loan for $9,845.00 requires monthly payments of $245.00 for 4 years. What is the implied
discounting rate (per period) for this loan? What is the APR? What is the EAR?
* A loan is an annuity most often (by default) an ordinary annuity since
Ordinary annuity since it is at the end of the period
What investment per quarter does Patrick need to make at the end of each quarter into his savings account over the
coming 7 qu
bP. Coehmct:1('~-; [
p J]
Keyed to
Microsoft
0
0J[DJ[EJJ0J[EJJ[JJ(J]0][D
[EJJ
[DJ
[EJJ
~A1
@]
HI! I'M FONDA MONEY, AND
INSIDE THIS GUIDE I GET
ANSWERS TO THE 25 MOST
IMPORTANT QUESTIONS
FOR SUCCESSFUL
FINANCIAL PLANNING.
I 35353535
GENERAL BOOKSTORE
NO RE
Test 1
1.
How long would it take a one-time deposit of $500 to grow to $1500 if you could earn 5%?
Solving for n (single deposit)
ln
n=
2.
ln ( 1+r )
n=
+1 )
( FVPmtr )+1 = ln ( 1500
100
=11.5
ln ( 1+r )
ln ( 1.05 )
What is the present value of $1000 rece
Test 2
1.
If a stock just paid a $2 dividend that will grow annually at 5% until the firm ceases operations in 40 years
and investors want a 15% return, what would be its current price?
price 0=
[ 0(1+ g ) ]
rg
[ ( )]
n
1+ g
1
1+r
[ ( )]
21+0.05
1+.05
=
Test 3
1.
1
What is the EAR when a $200 investment improves to $1000 after 20 years?
1
EAR=( 1+ HPR ) n 1
1
EAR=( 1+4 ) 20 1=0.0833
2.
3.
What is the HPR in the preceding problem?
HPR=
end price+distributions
1
beginning price
HPR=
1000
1=4=400
200
What a
Unit 2 FIN 3100
Exam Review
Define and understand the term APR by its relationship to EAR, use of the rate and its relationship to the legal
mandates (Truth in Savings Law)
APR (annual percentage rate) is what is earned yearly by investing or charged for
FIN 3100
Fall 2016
Dr. Amine Khayati
Chapter 6 Review questions
Bonds and Bond Valuation
1- Face value and par value are synonymous terms.
a- true
b- false
2- To determine the value of a bond at a particular point in time we use the yield to
maturity, whi
FIN 3100
Fall 2016
Dr. Amine Khayati
Chapter 9 Review questions
Capital Budgeting Decision Models
1- A project with a net present value of zero implies that the project:
a- does not payback its initial cash outlay
b- has an initial cost of zero
c- has cas
FIN 3100
Fall 2016
Dr. Amine Khayati
Chapter 7 Lecture Notes
Stocks and Stock Valuation
I- Characteristics and Features of common and preferred stocks:
Common stock features:
- A common stock is a stock that has no special preference either in paying divi
FIN 3100
Fall 2016
Dr. Amine Khayati
Chapter 10 Review questions
Cash Flow Estimation
1- The incremental cash flow for a project can be defined as the firms cash flows if the
project is undertaken minus the firm cash flows if the project is not undertaken
Market interest rates and bond prices are:
Which one of the following terms refers to a bond's rate of return that is required by
the market place?
When a bond's yield to maturity is less than the bond's coupon rate, the bond:
1)
A 6.5 percent coupon bond
Question 1
A bond has a face value of $1,000, a market price of $1,112, and
pays $45 in interest every six months.
A bond has a face value of $1,000, a market price of $1,112, and pays $45 in
interest every six months.
What is the coupon rate?
1) 4.05 per
Morris Industries would like to purchase some new equipment costing $1.56 million.
This purchase is
scheduled for 3 years from today. The company earns 3.8 percent compounded
monthly on its savings. How
much does the company need to save at the end of eac
Question 1
Which one of the following is the rate of return an investor earns on
a bond before adjusting for inflation?
Which one of the following is the rate of return an investor earns on a bond before
adjusting for inflation?
1) Nominal rate
2) Real ra
Which one of the following is a primary market transaction?
1) Kate, the president of Logistics, Inc., sells some of her shares in the
firm on the NYSE.
1) Kate, the president of Logistics, Inc., sells some of her shares in the firm on
the NYSE.
1) Kate,
Question 1
Cash flow to creditors is defined as:
Cash flow to creditors is defined as:
1) interest paid minus net new borrowing.
2) interest paid
plus net new borrowing.
1) interest paid minus net new borrowing.
2) interest paid plus net
new borrowing.
1)
CH 13 Risk/Return
Uncertainty is the absence of knowledge of the actual outcome of an event before it happens.
Risk a measure of the uncertainty in a set of potential outcomes for an event in which there is
a chance of some loss.
Financial markets allow c
Print CH 11 Slides:
2, 4, 8, 13, 16
Examples for Capstone Project (Hit Excel Icon)
o Slide 3: New Project
o Slide 5: Sensitivity Analysis
Total Cost (TC) = Fixed Cost (FC) + Variable Cost (VC)*Q
NI = (Sales VC FC D)*(1-T) = 0
o Q(P) Q(VC) FC D = 0
o Q(P V
FIN 3100
Chapter 8 In-Class Exercises
1.Using the following returns, calculate:
a. The average return.
b. The variance.
c. The standard deviation.
Remember that:
Variance is the average squared difference between the actual return and
the average return.
FIN 3100
Chapter 7 In-Class Exercises
1. A firm pays a constant annual dividend of $1.60 per share on its
common stock. How much are you willing to pay for one share of this
stock if you want to earn an 11% rate of return?
2. A firm pays a constant annual