Lecture 1: The Corporate Financial Manager
The Role of a Financial Manager
Valuations and Investment Decisions
o Capital Budgeting
Required Rate of Return
Free Cash Flows and Real Options
Dividend Decisions
o Dividend Policy
How much?
What form?
Fi
\chaptercfw_Linear Methods for Regression
\begincfw_exer
Show that the $F$ statistic for dropping a single coefficient from a model is
equal to the square of the corresponding $z$-score.
\endcfw_exer
\begincfw_proof
Recall that the $F$ statistic is define
\chaptercfw_Linear Methods for Classification
\begincfw_exer
Show how to solve the generalised eigenvalue problem $\max a^T B a$ subject
to $a^T W a = 1$ by transforming it to a standard eigenvalue problem.
\endcfw_exer
\begincfw_proof
By Lagrange multipl
\chaptercfw_Overview of Supervised Learning
\begincfw_exer
Suppose that each of $K$-classes has an associated target $t_k$, which is a
vector of all zeroes, except a one in the $k$-th position. Show that
classifying the largest element of $\hat y$ amounts
\chaptercfw_Basis Expansions and Regularization
\begincfw_exer
Show that the truncated power basis functions in (5.3) represent a basis for
a cubic spline with the two knots as indicated.
\endcfw_exer
\begincfw_exer
Suppose that $B_cfw_i, M(x)$ is an orde
Lecture 11: Asymmetric Information
Asymmetric Information
Asymmetric information
A situation in which parties have different information.
For example, when managers have superior information to investors regarding the firms
future cash flows.
Assume a
Lecture 10: Financial Distress and Bankruptcy
The Capital-Structure Question with Financial Distress
The value of a firm is defined to be the sum of the value of the firms debt and the firms
equity:
o V =D + E
Is there oneratio of debt-to-equity that ma
Lecture 9 : The Effect of Taxes
The Interest Tax Deduction
Corporations pay taxes on their profits after interest payments are deducted. Thus,
interest expense reduces the amount of corporate taxes.
This creates an incentive to use debt.
Consider Safew
Lecture 8: Capital Structure
The Capital-Structure Question
As we discussed earlier, the valueof a firm is defined to be the sum of the value of the
firms debt and the firms equity:
o Value =Debt + Equity
The questions we ask now are:Is there aratio of
Lecture 7: The Capital Asset Pricing Model
The Idea Behind the CAPM
The critical idea behind the capital asset pricing model (the CAPM) is that the returns to
financial securities, like stocks and bonds, are driving by the factors, the movements in
the m
Lecture 6: Cash Flows
The Effect of Depreciation On Cash Flows
When evaluating a project we want to know when we actually paid for a piece of capital.
o We use capital expenditures to account for the cash outflow from the purchase
when it actually occurs
Lecture 5: Depreciation of Capital Expenditures
Differentiate between Capitalizing and Immediate Expensing
An expenditure is an asset if the firm:
o has acquired rights to future use as the result of a past transaction, and can
measure or quantify the fu
Lecture 4: The Income Statement
Income Statement
Sometimes called the statement of profit and loss
Provides information on profitability the terms net income, earnings, and profit are used
interchangeably
Is represented by the Basic Income Equation:
o
Lecture 3 Asset and Liability Recognition
Balance Sheet Measurement
There are two conceptual bases to measure the monetary amounts on thebalance sheet:
o The historical amount reflects the acquisition cost of assets or the amount of funds
originally obta
Lecture 2: Introduction to Financial Accounting
What Is Financial Accounting?
Resource allocation decisions of investors and creditors depend on reliable and relevant
information about firms financial positions, profitability, and risk.
Financial report
A GUIDE AND SOLUTION MANUAL TO THE ELEMENTS OF STATISTICAL
LEARNING
by
JAMES CHUANBING MA
Under the direction of WILLIAM MCCORMICK
ABSTRACT
This Masters thesis will provide R code and graphs that reproduce some of the figures in
the book Elements of Stati