Locke – 2nd Treatise * State of Nature – All men are originally in a state of nature. A man in this original state is bound by the laws of nature‚ but he is otherwise able to live‚ act‚ and dispose of his possessions as he sees fit. More important‚ human beings‚ free from the arbitrary laws of other men‚ have an obligation to protect the interests of each other‚ since they are all equally children of God. They also have an obligation to punish those who go against God’s will and attempt to
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Chapter 2 -CAPM: how risk affects return -Expected Return (on investment): mean value of its probability distribution of returns; greater the probability return will be below expected‚ greater the stand-alone risk -Risk Averse: he/she must be compensated for holding risky assets -Asset has 2 risk types: Diversifiable risk can be eliminated by diversification; market risk cannot be eliminated -Market risk measured by standard deviation of returns on portfolio consisting of all stocks -Relevant
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MAF302 Corporate Finance Study Guide Important Instruction This study guide provides you of an overview for each of the topic taught in this unit. These overviews however are not sufficient to learn all the materials in each of the topic. I therefore would suggest you to follow the materials in lecture notes and workshops. It is also essential to read and consult the corresponding text book chapters to develop your concept and knowledge in this unit. You will also find some references
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Study Guide – Final Exam Managerial Finance – Spring 2012 Chapters 1- 4 (5%) * Know goal of the financial manager * Define agency problem * Describe the four areas of Ratio Analysis (liquidity‚ activity‚ solvency‚ and profitability) and their purpose‚ know information that gives ratios value and meaning. Chapter 5 (15%) * Time Value of Money: PV‚ PMT of loan‚ FV of annuity‚ growth rate and mixed stream of cash flows Chapter 6-8 (46%) * Expected return‚ Standard deviation
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FI-555 International Finance Mid-Term Exam Guide Below is an outline of what is included in your test. Class notes‚ exercises and discussion along with homework problems should be enough. Reading book chapters will provide additional info if you feel you need it. 1. Globalization and the Multinational Firm • What’s special about international finance o Foreign Exchange Risk ▪ The risk that foreign currency profits may evaporate in dollar terms due to unanticipated
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Finance Study Guide These provide a forum in which demanders of funds raise funds by issuing new financial instruments‚ such as stocks and bonds. primary markets In the U.S.‚ these financial institutions arrange most primary market transactions for businesses. investment banks Once firms issue financial instruments in primary markets‚ these same stocks and bonds are then traded in which of these? secondary markets These feature debt securities or instruments with maturities
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Study Guide for Final Exam – fin 301 (WC) calculation of price of bonds calculation of YTM for bonds calculation of yield to call for bonds calculation of current yield/capital gains yield for bonds calculation of coupon interest rate/PMT for bonds effect of change in interest rates on price of bonds Bond sensitivities/Bond theorems calculation of capital gains yield calculation of expected total return using expected dividends‚ stock price and growth rate calculation
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INTERNAL/ EXTERNAL Semester One‚ 2011 Unit Code and Title ECF5220 Principles of Finance STANDARD PAPER Duration Reading time Working time Total time 5 minutes 3 hours 3 hours 5 minutes Attempt Marks Any four (4) out of five (5) questions All questions carry equal marks. This will total to 100 marks and will be scaled to produce a mark consistent with 60% weighting in the unit assessment. Closed Book exam – textbook‚ reference books‚ notes‚ and tutorial solutions are not permitted
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Valuation- “projected financial performance into values.” Involves projecting/ making budgets. Value of an Asset = Value of Cash Flow (CF) it Will Generate (not profits) CF=1/(1+r)^1 value is based on three things- Current Cash Flow‚ Expected growth (used with to estimate future cash flow)‚ Riskiness of expected future cash flow (discount rate).Net Present Value- Value CFs using project discount rate based on risk Investment Decision-which real assets the firm should acquire.Choose positive and
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Chapter 14 Cost of Capital Multiple Choice Questions 1. A group of individuals got together and purchased all of the outstanding shares of common stock of DL Smith‚ Inc. What is the return that these individuals require on this investment called? A. dividend yield B. cost of equity C. capital gains yield D. cost of capital E. income return 2. Textile Mills borrows money at a rate of 13.5 percent. This interest rate is referred to as the: A. compound rate. B. current yield. C. cost of debt
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