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# Fundamentals of Finance - PowerPoint PPT Presentation

Fundamentals of Finance. Exam #2 Preview. Oct 29, 2012. What to Study. Power Point Slides Self test questions Past quizzes Homework problems Review questions. Review questions. Ch 7, p. 186 1, 2, 3, 8, 9, 10 Ch 8, p. 228 1, 3, 4, 5, 6, 8, 9 Ch 9, p. 261 2, 3, 4, 7, 8 .

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### Fundamentals of Finance

Exam #2 Preview

Oct 29, 2012

• Power Point Slides

• Self test questions

• Past quizzes

• Homework problems

• Review questions

• Ch 7, p. 186 1, 2, 3, 8, 9, 10

• Ch 8, p. 228 1, 3, 4, 5, 6, 8, 9

• Ch 9, p. 261 2, 3, 4, 7, 8

• Ch 7, p. 185 1, 2, 3, 6, 7

• Ch 8, p. 227 All

• Ch 9, p. 261 All

• Expected value (Mean) = u = E(VxP)

• Standard Deviation = square root of sum of P(V-u)2

• Coefficient of variation

(Standard Deviation / Mean)

• CAPM = K = Krf + B(Km – Krf)

• FV = n, i/y, pv, pmt=0,

• PV = n, i/y, pmt=0, fv

• FVa = n, i/y, pv=0, pmt

• PVa = n, i/y, pmt, fv=0

• FVad = n, i/y, pv=0, pmt, (1 + k)

• PVad = n, i/y, pmt, fv=0, (1 + k)

• PVp = Div/K

• ATKd = Kd(1 – T)

• Kps = Div/Net Price

• Kre = (D1/Price) + g (growth rate)

D1 = Do x (1 + g)

• Kcs(new) = (D1/Price – Float.) + g

• WACC = WTd x ATKd + WTp x Kps + WTcs x Kcs

• Breakpoint = Available debt or equity before cost of capital increases / Percent of debt or equity to total capital

• Scantron #882 – E

• Number 2 pencil (no pens)

• Financial Calculator

• No cell phones, lap tops

• Chapter 9 homework

• More tranquilizers/No roids

• List of formulas from the 3 chapters,

plus the math formulas

(see formula slides)

• Space on the exam for your calculations (no scratch paper allowed)

• Multiple choice – 21 (1.25 points each)

• Problems – 4 (4 parts each, 1.5 points each part)

• Multiple choice will include many calculations

• Fri 10/26 9:00 – 11:00

• Mon 10/29 9:00 – 11:00