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FINANCE 100 Sections 001, 002, and 003
A. Craig MacKinlay Fall 2009
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Extra Office Hour: John Thomas will hold an office hour on Friday November 20
to answer questions about Assignment 2. The hour will be from 3 to 4 in the Finance
Department - Desk A.
Reminder: Assignment 2 is due Tuesday, November 24, 2009.
If you are unable to attend class on Tuesday November 24, you can hand in
assignment 2 at the front desk of the Finance Department (2300 SHDH) on
Friday or Monday.
Solution for Midterm II is posted in sample exams folder.
Important Dates:
Midterm Exam I: Monday, October 12, 2009 - 6:00 pm to 7:30 pm
Midterm Exam II: Wednesday, November 11, 2009 - 6:00 pm to 8:00 pm
Final Exam: Wednesday, December 16, 2009 - 3:00 pm to 5:00 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: Tuesday, November 3, 2009
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: Tuesday, November 24, 2009
This cover page must be used when handing in your
assignment.
Data file: f100-data-2009.xls
S&P Technology Sector ETF fact sheet: igm.pdf
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)
Efficient Market Theory and the Financial Crisis
This is an article from the WSJ (October 27, 2009) by Jeremy Siegel related to Efficient Markets.
Example of Direct Costs of Financial Distress
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 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
(not 0.35).)
(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)
*****
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)
*****
Contact Information
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| Office: SHDH 3255 (Finance Suite) | Email Professor MacKinlay |
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Teaching Assistants | |
| Britt Danneman | danneman@wharton.upenn.edu | |
| Dillon Forrest | zforrest@wharton.upenn.edu | |
| Halley Goodman | halleymg@wharton.upenn.edu | |
| Wang Liao | wliao@wharton.upenn.edu | |
| Allen Liu | liuallen@wharton.upenn.edu | |
| Yuv Chandra Pathuri | ypathuri@wharton.upenn.edu | |
| John Thomas | jvthomas@wharton.upenn.edu |
Teaching Assistants' Office Hours
Day Time TA Cubicle
Monday 12 pm – 1pm Britt Danneman B
1 pm – 2 pm Dillon Forrest B
3 pm – 4 pm Yuv Chandra Pathuri B
5 pm – 6 pm Wang Liao D
Tuesday 11 am – 12 pm Halley Goodman A
12 pm – 1 pm Allen Liu A
2 pm – 3pm John Thomas A
3 pm – 4 pm Wang Liao C
Wednesday 12 pm – 1 pm Britt Danneman B
1 pm – 2 pm Dillon Forrest B
2 pm – 3 pm Halley Goodman B
3 pm – 4 pm Yuv Chandra Pathuri B
Thursday 12 pm – 1 pm Allen Liu A
3 pm – 4 pm John Thomas C
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) |
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.
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