|
|
FINANCE 100 Sections 001, 002, and 003
A. Craig MacKinlay Fall 2008
__________________________________________________________________________________
Important Dates:
Midterm Exam I: To be announced
Midterm Exam II: Wednesday, November 5, 2008 - 6:00 pm to 8:00 pm
Final Exam: Friday, December 13, 2008 - 6:00pm - 8:00pm (To take this
course you must be able to take the final at this time.)
Handouts: (2007)
Practice Capital Budgeting Problem
(Practice Problem to be discussed in class on 10/18)
Statistics Review (For risk-return analysis)
Capital Structure related WSJ article
Vioxx (Assign 2 #9) WSJ stories - article 1 article 2
Suggested Problems: (2007)
Below are suggested problems from the course text. However, one need
not limit themselves to these problems -- most of the end-of-chapter
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 68.
Chapter 5 - How to Value Bonds and Stocks - 2, 3, 10, 11, 14, 16,
17, 22, 25, 34, 36, and 40. Note that the
textbook bond problems with semi-annual
payments give the YTM as an
annual rate compounded semi-annually (ra,2).
Chapter 5 Appendix (linked below) - Forward Rates -
1, 2, 3, and 4.
End of material for Midterm I
Chapter 6 - Net Present Value and Other Investment Rules -
1, 5, 8, 10, 13, 15, 16, 19, and 26.
(Optional Problem Set 2 also has problems)
Chapter 7 - Making Capital Investment Decisions - 1, 3, 4, 5*,
12, 16, 20, 38, and 40a. (*Solution has typo -
second last line on page should have the taxable
gain multiplied by 0.65 to make it after tax.)
(Optional Problem Set 2 also has problems)
Chapter 9 - Risk and Return - 1, 2, 7, 13, 17, 22, and 24.
(Optional Problem Set 3 also has problems)
Chapter 10 - Return and Risk - 2, 3, 5, 6, 10, 11, 13, 17, 25, 27,
31, 32, and 35.
(Optional Problem Set 3 also has problems)
End of material for Midterm II
Chapter 12 - Risk, Cost of Capital, and Capital Budgeting -
1, 5, 10, and 13.
(Optional Problem Set 4 also has problems)
Chapter 13 - Corporate Financing Decisions and Efficient
Capital Markets - concept questions - 5, 9,
and 11 - questions and problems - 2 and 3.
(Optional Problem Set 5 also has problems)
Chapter 15 - Capital Structure: Basic Concepts - 1, 2, 16,
18, and 22.
(Optional Problem Set 6 also has problems)
Chapter 16 - Capital Structure: Limits tothe Use of Debt
- 1, 6, and 8.
(Optional Problem Set 6 also has problems)
Chapter 17 - Valuation and Capital Budgeting for the Levered Firm
- 1, 2, 4, 8, and 10.
(Optional Problem Set 6 also has problems)
Chapter 18 - Dividends and Other Payouts - 15, 17, and 19.
(Optional Problem Set 6 also has problems)
Final Exam Material: The content of class lectures is the most
important material. Background reading is in
chapters 12, 13, 15, 16, 17, and 18.
Below are suggested problems from the old (7th) edition of the course text.
Chapter 4 - Net Present Value - 4.7, 4.12, 4.15, 4.19, 4.23, 4.26,
4.30, 4.35, 4.42, 4.46, 4.50, 4.54
Chapter 5 - Valuation of Stocks and Bonds - 5.1, 5.4, 5.7, 5.10, 5.13,
5.18, 5.20, 5.26, 5.29, 5.34, 5A.1, 5A.3
End of material for Midterm I
Chapter 6 - Some Alternative Investment Rules - 6.2, 6.3, 6.7, 6.8,
6.10, 6.13, 6.15, 6.18, 6.19, 6.27
(Optional Problem Set 2 also has problems)
Chapter 7 - NPV and Capital Budgeting - 7.1, 7.6, 7.7, 7.10, 7.11,
7.21, 7.23, 7.31, 7.36, 7.41
(Optional Problem Set 2 also has problems)
Chapter 9 - Capital Market Theory - 9.1, 9.2, 9.5, 9.11, 9.17, 9.19
(Optional Problem Set 3 also has problems)
Chapter 10 - Risk and Return - 10.3, 10.4, 10.5, 10.7 (σMAC=8%, σI=20%),
10.12, 10.19, 10.24, 10.27, 10.29, 10.30,
10.38, 10.39, 10.40
(Optional Problem Set 3 also has problems)
End of material for Midterm II
Chapter 12 - Risk, Cost of Capital, and Capital Budgeting - 12.1, 12.11, 12.15
(Optional Problem Set 4 also has problems)
Chapter 13 - Efficient Capital Markets - 13.2, 13.6, 13.8, 13.13, 13.20,
13.21, 13.22, 13.23
(Optional Problem Set 5 also has problems)
Chapter 15 - Capital Structure - Basic Concepts - 15.1, 15.3, 15.6, 15.13,
15.16
(Optional Problem Set 6 also has problems)
Chapter 16 - Capital Structure: Limits to the Use of Debt - 16.2, 16.3,
16.8, 16.13
(Optional Problem Set 6 also has problems)
Chapter 17 - Valuation and Capital Budgeting for the Levered Firm
- 17.1, 17.3, 17.4, 17.5, 17.8, 17.9
(Optional Problem Set 6 also has problems)
Chapter 18 - Dividends and Other Payouts - Chapter 18 Solutions
- 18.3, 18.8, 18.18
(Optional Problem Set 6 also has problems)
Final Exam Material: The content of class lectures is the most
important material. Background reading is in
chapters 12, 13, 15, 16, 17, and 18.
| TA Office Hours Schedule |
 |
Contact Information | |
| Office: SHDH 3255 (Finance Suite) | Email Professor MacKinlay |
|
Teaching Assistants | |
| to be announced | ||
Corporate Finance (RWJ) Textbook Appendices:
Problem Sets (optional):
More Problems:
Below are problems with solutions from an early edition of Corporate Finance.
You may find these useful if you want even more problems.
|
|
(c) 2007. All Rights Reserved |