___________________________________________________________________________________________________________________________

FINANCE 100  Section 001-002

A. Craig MacKinlay                                                                                   Fall 2015

__________________________________________________________________________________

*****

Syllabus

********

Final exams can be picked up from my office (3255 SHDH) on Wednesday January 20 between 3:30 pm and 4:30 pm.

Grade boundaries: >= 86 --> A; >=71 --> B

Solution to 2015 final exam is posted in the sample exams folder.

********

Office Hours for Thursday (Dec. 10) to Wednesday (Dec. 16):

Day                        Time                                      TA                     Desk
Thursday          4 pm – 5 pm                      Halley Goodman        C
Monday            2 pm – 3 pm                      Jordyn Jones             B
Tuesday            1:30 pm – 2:30 pm            Alec Ren                   A  
Wednesday       2 pm – 3 pm                   William Bannister        B
Wednesday       3 pm – 4 pm                      Riddhima Goel          C

   
MacKinlay       3:45 pm – 5 pm      Tuesday Dec. 15       SHDH 3255

MacKinlay       4 pm – 5 pm           Wednesday Dec. 16   SHDH 3255

*****

Final Exam Details:

Date: Thursday December 17 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 G60 -- Last Name: A-L

JMHH G65 -- Last Name: M-Z

Section 002 (12:00 pm class)

JMHH F95 -- Last Name: A-M

JMHH F90 -- Last Name: N-Z

*****

Important Dates for Fall 2015:

Midterm Exam I:    Thursday, October 1, 2015 - in class

Midterm Exam II:    Thursday, November 5, 2015 - in class

Final Exam:   Thursday, December 17, 2015 - 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)

         

Capital Budgeting Handout (Dec. 1 and 3)

 

*****

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 29, 2015

     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, November 19, 2015

    This cover page must be used when handing in your

      assignment.

    Data file:    f100-data-2015.xlsx

   Assignment 2:    solution

*****

Suggested Problems: 

Below are suggested problems from the course text (RWJ 10th 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.

 

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.

*****

                                                               

Teaching Assistants Office Hours (begin Tuesday September 8)

 

 

(c) 2015. All Rights Reserved