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FINANCE 100 Sections 001, 002, and 003
A. Craig MacKinlay Fall 2011
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Final Exam Pick Up:
Final exams can be picked up from my office Friday January 13 between 11:30 am
and 12 pm or on Wednesday January 18 between 3 pm and 3:30 pm or
on Thursday January 19 between 1:15 pm and 1:45 pm.
Final Exam Solution and Grades:
The solution for the final exam is now posted in the sample
exam folder and grades are submitted. Exams can be picked
up at the start of next term (a pick up time will be posted)
and any grade concerns can be considered then. Enjoy
your holiday break.
Final Exam Review Session II:
Tuesday December 13 at 10:30 am in SHDH 351.
Final Exam Review Session:
Monday December 12 at 10:30 am in LLAB 10.
Final Exam Time:
Wednesday December 14 at 6:00 pm
Final Exam Rooms:
Section 1 (10:30 am) ............LLAB 10...........all students
Section 2 (12:00 pm).............LLAB 10...........last name A - D
Section 2 (12:00 pm).............JMHH F85.........last name E - M
Section 2 (12:00 pm).............JMHH F95.........last name N - Z
Section 3 (1:30 pm)...............TOWN 100........last name A - R
Section 3 (1:30 pm)...............JMHH G55.........last name S - Z
Final Exam Office Hours:
Day Time Location
*****
Assignments I and II can be picked up from the left file cabinet in the
Finance Department (2300 SHDH) across from the TA cubicles.
Capital budgeting handout is posted.
Suggested problems for the remainder of the course are posted.
Solution for midterm 2 posted in sample exams folder.
Past final exams and solutions posted in sample exams folder.
Important Dates for Fall 2011:
Midterm Exam I: Wednesday, October 5, 2011 - 6:00 pm to 7:30 pm
Midterm Exam II: Wednesday, November 9, 2011 - 6:00 pm to 8:00 pm
Final Exam: Wednesday, December 14, 2011 - 6:00 pm to 8:00 pm
Sample Exams (password required)
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, November 3, 2011
This cover page must be used when handing in your
assignment.
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, 2011
This cover page must be used when handing in your
assignment.
Data file: f100-data-2011.xlsx
Data file: f100-data-2011.xls
Readings:
Sample Treasury Quotes from WSJ - Bills
Sample Treasury Quotes from WSJ - Bonds and Notes
Sample US Treasury Quotes from WSJ - Strips
Handouts:
Interest Rate Exercise (not to be handed in)
McKinsey Article on IRR (optional reading)
Practice Capital Budgeting Problem
Statistics Review (For risk-return analysis)
Example of Direct Costs of Financial Distress
Discussion of Indirect Costs of Financial Distress
Capital Budgeting Handout (Dec. 3)
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.
Chapter 4 - Discounted Cash Flow Valuation - 3, 4, 6, 12, 13, 15, 26,
27, 28, 30, 34, 41, 52, 56, 57, and 68.
Chapter 8 - Interest Rates and Bond Valuations - 2, 3, 13, 14, 15,
16, and 18. 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, 11, 13, 14, 21, and 23.
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, 10, 11, 13, 17, 25, 27,
31, 32, and 35.
End of material for Midterm II
Chapter 13 - Risk, Cost of Capital, and Capital Budgeting -
1, 5, 7, 12, and 14.
Chapter 14 - Efficient Capital Markets and Behavioral Challenges
- concept questions - 2, 3, 5, 6, 9, and 11
- questions and problems - 2 and 3.
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.
*****
Below are suggested problems from the old (8th) edition of the course text.
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 - 1, 2, 3, 10, and 11.
Note that the textbook problems with semi-
annual payments give the YTM as an
annual rate compounded semi-annually (ra,2).
Chapter 5 - How to Value Bonds and Stocks - 14, 16, 17, 22,
25, 34, 36, and 40.
End of material for Midterm I
Chapter 6 - Net Present Value and Other Investment Rules -
1, 5, 8, 10, 13, 15, 16, 19, 26, and 30.
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
(not 0.35).)
Chapter 9 - Risk and Return - 1, 2, 7, 13, 17, 22, and 24.
Chapter 10 - Return and Risk - 2, 3, 5, 6, 10, 11, 13, 17, 25, 27,
31, 32, and 35.
End of material for Midterm II
Chapter 12 - Risk, Cost of Capital, and Capital Budgeting -
1, 5, 10, and 13.
Chapter 13 - Corporate Financing Decisions and Efficient
Capital Markets - concept questions - 5, 9,
and 11 - questions and problems - 2 and 3.
Chapter 15 - Capital Structure: Basic Concepts - 1, 2, 16,
18, and 22.
Chapter 16 - Capital Structure: Limits to the Use of Debt
- 1, 6, and 8.
Chapter 17 - Valuation and Capital Budgeting for the Levered Firm
- 1, 2, 4, 8, and 10.
Chapter 18 - Dividends and Other Payouts - 15, 17, 19, and 22.
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.
*****
Contact Information
Professor MacKinlay acmack@wharton.upenn.edu
Office - 3255 SHDH Office Hours - Tuesdays 3:45 to 5:00 or by appointment
Teaching Assistants
Eddie Elizondo eelizo@wharton.upenn.edu
Michael Foster mfost@wharton.upenn.edu
Seth Pippin spippin@wharton.upenn.edu
Michael Scoby mscoby@wharton.upenn.edu
Rae Tao raetao@wharton.upenn.edu
Dhruv Toshniwal dhruvt@wharton.upenn.edu
Nora Turek nturek@wharton.upenn.edu
Andy Yang yang1@wharton.upenn.edu
Tianjie "Jesse" Zhou tzhou@wharton.upenn.edu
Teaching Assistants' Office Hours
Day Time TA Cubicle
All Teaching Assistant office hours are held in the TA cubicles located in SH-DH 2300 to the right of the main desk of the Finance Department.
| TA Office Hours Schedule (pdf) |
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