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FINANCE 100  Section 001-002

A. Craig MacKinlay                                                                                   Fall 2014

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Assignments I and II are available for pick up. The assignments are in the gray file cabinets to

the right of the Finance Department entrance. Section 001 is in the top drawer and Section 002

is in the second drawer.

Final exams can be picked up in January. Pick up times will be posted at the beginning of

next term. Any grade related questions will be addressed after the pick up dates. The solution

for the final exam is posted in the sample exams folder.

Grades will be submitted the week of December 15.

 

Office Hours for Wednesday and Thursday (December 10-11):

Day                        Time                                      TA                          Desk
Wednesday       2 pm – 3 pm                       Vinay Raj                    C
Wednesday       3 pm – 4 pm                       Alec Ren                     C  
Thursday          12 pm – 1 pm                      Kevin Huang              C
Thursday          1:30 pm – 2:30 pm            Halley Goodman         C
Thursday          4 pm – 5 pm                       MacKinlay 3255 SHDH 

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Final Exam Details:

Date: Friday December 12 at 6:00 pm

 

Permitted at exam:  -calculator

      -notes on one-half 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: A-L

JMHH F85 -- Last Name: M-Z

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Syllabus

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Important Dates for Fall 2014:

Midterm Exam I:    Thursday, October 2, 2014 - in class

Midterm Exam II:    Thursday, November 6, 2014 - in class

Final Exam:   Friday, December 12, 2014 - 6:00 pm to 8:00 pm

 

 

Sample Exams (password required)

 

Readings:

Term Structure Appendix

 

Interest Rate Exercises (not to be handed in)

   Solutions

 

 Common Stock Valuation

  Solution

Practice Capital Budgeting Problem

 Solution

Statistics Review (For risk-return analysis)

 

Example of Direct Costs of Financial Distress

Discussion of Indirect Costs of Financial Distress

         

Capital Budgeting Handout (Dec. 2)

 

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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 30, 2014

     This cover page must be used when handing in your

      assignment.

   Assignment 1:    solution

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 4, 2014

    This cover page must be used when handing in your

      assignment.

    Data file:    f100-data-2012.xls

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Suggested Problems: 

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.

 

Problems for 10th edition of text

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 semi-annual payments give the YTM as an

                            annual rate compounded semi-annually (ra,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 content of class lectures is the most

                              important material.  Background reading is in

                                            chapters 13, 14, 16, 17, 18, and 19.

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Teaching Assistants Office Hours (begin Tuesday September 8)

 

 

 

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