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FINANCE 100  Section 001-002

A. Craig MacKinlay                                                                                   Fall 2017

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Office hours Thanksgiving week:

With Thanksgiving and the univeristy schedule change, TA office hours for the week of November 20 are

cancelled. My office hours will be moved forward and held on Tuesday from 2:30 pm until 3:30 pm.

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Syllabus

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Important Dates for Fall 2017:

Midterm Exam I:    Thursday, September 28 - in class

Midterm Exam II:    Thursday, November 2 - in class

Final Exam:   Thursday, December 14 - 6 pm to 8 pm

 

Sample Exams (password required)

 

Readings:

Term Structure Appendix

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 Common Stock Valuation

  Solution

McKinsey Article on IRR (optional reading)

 

Practice Capital Budgeting Problem

 Solution

 

Statistics Review (For risk-return analysis)

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Suggested Problems: 

Below are suggested problems from the course text (RWJJ 11th edition). 

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 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.

 

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Teaching Assistants Office Hours (begin Tuesday September 5)

 

 

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