FINANCE 100 Section 001002
A. Craig MacKinlay Fall 2016
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Office Hours for Tuesday (Dec. 13) to Monday (Dec. 19):
(all TA hours will be at Desk C in the TA room)
Day Time TA
Dec. 14 Wednesday 3 pm – 4:30 pm Aastha Jain
Dec. 15 Thursday 9 am – 10:30 am Matt Lessor
Dec. 15 Thursday 2 pm – 3:30 pm Emily He
Dec. 16 Friday 2 pm – 3:30 pm Jaclyn Chu
Dec. 19 Monday 10 am – 11:30 am Jason Zhang
MacKinlay 3:45 pm – 5 pm Tuesday Dec. 13 SHDH 3255
MacKinlay 4 pm – 5 pm Friday Dec. 16 SHDH 3255
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Review Session:
Friday December 16 at 9am  Room SHDH 351
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Final Exam Details:
Date: Monday December 19 at 6:00 pm
Permitted at exam: calculator
notes on onehalf page (8.5 inch x 5.5 inch) one side only
Final Exam Rooms (6 pm  8 pm):
Section 001 (10:30 am class)
JMHH G06  all students
Section 002 (12:00 pm class)
JMHH G06  Last Name: AC
JMHH F85  Last Name: DL
JMHH F95  Last Name: MZ
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Important Dates for Fall 2016:
Midterm Exam I: Thursday, September 29  in class
Midterm Exam II: Thursday, November 3  in class
Final Exam: Monday, December 19, 2016  6:00 pm to 8:00 pm
Sample Exams (password required)
Readings:
McKinsey Article on IRR (optional reading)
Practice Capital Budgeting Problem
Statistics Review (For riskreturn analysis)
EAC Practice Problem (Solution for in class extension)
Capital Budgeting Handout (Dec. 1 and 6)
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Assignments:
Assignment 1  Each student must hand in her/his own solution.
However, you are allowed to work with a classmate
solving this case.
Due date: Thursday, October 27, 2016
This cover page must be used when handing in your
assignment.
(Solution is available in sample exams folder.)
Assignment 2  Each student must hand in her/his own solution.
However, you are allowed to work with a classmate
solving this assignment.
Due date: Thursday, December 1, 2016
This cover page must be used when handing in your
assignment.
Data file: f100data2016.xlsx
Below are suggested problems from the course text (RWJJ 11th edition).
However, one need not limit themselves to these problems  most
of the endofchapter problems in the "Questions and Problems" section are appropriate.
Chapter 4  Discounted Cash Flow Valuation  3, 4, 6, 12, 13, 15,
26, 27, 28, 30, 34, 41, 52, 56, 57, and 67.
Chapter 8  Interest Rates and Bond Valuations  3, 4, 14, 15, 16,
17, and 19. Note that the textbook bond problems
with semiannual payments give the YTM as an
annual rate compounded semiannually (r_{a,2}).
Chapter 9  Stock Valuation  1, 9, 13, 14, 15, 22, and 24.
End of material for Midterm I
Chapter 5  Net Present Value and Other Investment Rules 
1, 5, 6, 8, 11, 13, 14, 17, 23, and 28.
Chapter 6  Making Capital Investment Decisions  1, 3, 4, 5,
12, 15, 19, 25, and 38a.
Chapter 10  Risk and Return  1, 2, 4, 7, 12, 17, and 20.
Chapter 11  Return and Risk  2, 3, 5, 6, 9, 10, 12, 16, 24, 26,
30, 31, and 34.
End of material for Midterm II
Chapter 13  Risk, Cost of Capital, and Capital Budgeting 
1, 3, 5, 10, and 12.
Chapter 14  Efficient Capital Markets and Behavioral Challenges
 concept questions  2, 3, 5, 6, 9, and 11
 questions and problems  2, 3, and 4.
Chapter 16  Capital Structure: Basic Concepts  1, 2, 16,
18, and 22.
Chapter 17  Capital Structure: Limits to the Use of Debt
 1, 6, and 8.
Chapter 18  Valuation and Capital Budgeting for the Levered Firm
 2, 3, 4, 8, and 10.
Chapter 19  Dividends and Other Payouts  11, 13, 15, and 18.
Final Exam Material: The questions on the final exam will
draw on the content of class lectures. Background reading is in
chapters 13, 14, 16, 17, 18, and 19.
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Teaching Assistants Office Hours (begin Tuesday September 6)

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