Slide 1: Lecture 3 Bond-Pricing and YTM
Welcome to Lecture 3: Bond-pricing and yield-to-maturity.
Slide 2: Two parts to this lecture
This lecture is divided into two parts: part one is a discussion of
Slide 1: Lecture 4 Stock pricing with Dividend Growth Model
Welcome to Lecture 4: Stock pricing with the dividend growth model.
Slide 2: Five possible cases
In this lecture, we will go over five possi
Slide #1: Lecture 9 Capital Budgeting: Projects with Different Lives
Welcome to Lecture 9: Capital budgeting projects with different lives.
Slide #2: Topics covered
In this lecture, we will cover the
Slide #1: Lecture 5 NPV Calculation
Hello everyone. Welcome to Lecture 5: Net Present Value (NPV) calculation.
Slide #2: Topics covered in this lecture
We will cover 6 topics in this lecture:
1. Ident
Slide #1: Lecture 8 Probability Index calculation
Hello everyone. Welcome to Lecture 8: Profitability Index calculation.
Slide #2: Topics covered
These are the 7 topics that we will discuss in this le
Slide 1: Lecture 1 - Du Pont Identity
Welcome to Lecture 1 on the Du Pont Identity.
Slide 2: Financial ratios
What is a Du Pont Identity? Basically, Du Pont Identity is a way for us to look at the
dif
Slide #1: Lecture 10 Portfolio Expected Return, Variance, and
Standard Deviation
Welcome to Lecture 10: The calculation of portfolio expected return, portfolio
variance, and portfolio standard deviati
Slide #1: Lecture 6 Internal rate of return (IRR) Calculation
Welcome to Lecture 6: Internal rate of return (IRR) calculation.
Slide #2: Topics covered
We will cover the following 7 topics in this lec
Slide #1: Lecture 7 Mechanics of PV(CCATS) calculation
Welcome to Lecture 7: the mechanics of PV(CCATS) calculation.
Slide #2: Definition of PV(CCATS)
What is PV(CCATS)? It stands for the present valu
Unit3:EquilibriuminCapitalMarkets
Lesson8:MarketEfficiency,BehaviouralFinance,TechnicalAnalysis,andEmpirical
Evidence
ReadingAssignmentandLearningObjectives
Read Chapters 9, 10, and 11 in the textbook
Unit3:EquilibriuminCapitalMarkets
Lesson7:CAPM,IndexModels,andArbitrageTheory
ReadingAssignmentandLearningObjectives
Read Chapters 7 and 8 in the textbook.
After completing Lesson 7, you will be able
Lesson6:OptimalRiskyPortfolios
ReadingAssignmentandLearningObjectives
Read Chapter 6 (including Appendix 6A) in the textbook.
After completing Lesson 6, you will be able to
1.
discuss how diversificat
Lesson3:TradingonSecuritiesMarkets
ReadingAssignmentandLearningObjectives
Read chapter 3 in the textbook including the appendix 3A
After completing Lesson 3, you will be able to
1.
describe the differ
Unit4:FixedIncomeSecurities
Lesson10:TheTermStructureofInterestRates
ReadingAssignmentandLearningObjectives
Read Chapter 13 in the textbook.
After completing Lesson 10, you will be able to
1.
describe
Unit4:FixedIncomeSecurities
Lesson9:BondPricesandYields
ReadingAssignmentandLearningObjectives
Read Chapter 12 in the textbook.
After completing Lesson 9, you will be able to
1.
define the following t
Lesson4:ReturnandRisk:AnalyzingtheHistoricalRecord
ReadingAssignmentandLearningObjectives
Read Chapter 4 (including Appendix 4A) in the textbook.
Review Appendix A: Quantitative Review in the Online L
Lesson2:FinancialMarketsandInstruments
ReadingAssignmentandLearningObjectives
Read Chapter 2 in the textbook.
After completing Lesson 2, you will be able to
1.
explain the difference between money mar
Unit1:IntroductiontoInvestments
Lesson1:TheInvestmentEnvironment
ReadingAssignmentandLearningObjectives
Read Chapter 1 in the textbook.
After completing Lesson 1, you will be able to
1.
outline some i
Lesson 5: Risk Aversion and Capital Allocation to Risky Assets
Reading Assignment and Learning Objectives
Read Chapter 5 (including Appendix 5A) in the textbook.
After completing Lesson 5, you will be
Lesson 7- Chapter 9: Net Present Value and Other Investment Criteria
1) What are the three important conditions that we must consider when evaluating the
investment rule to use in a capital budgeting
Chapter 7: Bond Valuation
1) What does the face value of a bond mean? (pg 221)
a) Coupon = Stated interest payment made on a bond
b) Face Value (Par Value) = Principle amount of a bond, that is repaid
Chapter 5: Introduction to Valuation: The Time Value of Money
1) What does it mean when we take the future value of a cash flow occurring today or at
time 0?
a) A dollar in hand today is worth more th
Chapter 4: Long-Term Financial Planning and Corporate Growth
1) What is the percentage of sales approach, what is it used for, and what is the main estimate used
in this approach?
a) Percentage of Sal
Lesson 8: Chapter 10 Making Capital Investment Decisions
1) What are incremental cash flows to a project, and why are they important to capital
investment decisions?
a) Incremental Cash Flows = The di
Chapter 1
1. What three questions does corporate finance seek to answer?
1.1. What long-term investments should you take on?
1.2. Where will you get the long-term financing to pay for your investments
Chapter 8: Stock Valuation
1) Why is it more difficult to price stocks than bonds? (pg 264)
a) There are 3 reasons why is it more difficult to value stocks than bonds:
i) Promised cash flows are not k
Chapter 6: Discounted Cash Flow Valuation
1) What is a timeline, and how can it be used to figure out the present value and future
value of cash flows?
a) A timeline is a horizontal straight line divi
FNCE 401 Introduction to Investments
Unit 2: Lesson Four Portfolio Theory
Read: Chapter 4, 5 & 6. Unit 2 Notes. Appendix 5A & 6A.
Lesson Four: Objectives:
1. Explain how the following factors influenc