HFT 4464 Final Exam Review Final Exam is
- Slides: 15
HFT 4464 Final Exam Review
Final Exam is Cumulative • Chapter 1 through Chapter 10 • 50 Multiple Choice Questions – Vocabulary oriented (16) – Problems (34)
Vocabulary • Advantages/disadvantages of a corporation • Three factors that determine value of future • • dividends Bond ratings Stock trading – Primary / Secondary market Debenture Common stock features
Vocabulary • • Correlation of coefficient Diversification How to read a bond quotation Issuance costs Mortgage bonds Debentures – Senior, junior, subordinated, unsubordinated Which have seniority – Bonds – Preferred stock – Common stock
Calculations • Holding period return • Bond market value / yield to maturity • Weighted average cost of capital • Present / future values – lump sum & annuity • Net cash flow on sold asset • Stock value based on dividend growth rates
Calculations • • • Payback period Discounted payback Net Present Value Profitability index IRR Ratios – ADR – REVPAR
Chapter 5 • Time value of money – Future value of a lump sum investment • Table p. 91 – Present value of a lump sum payment • Table p. 93 – Future value of a series of payments made • Table p. 96 – Present value of a series of payments received • Table p. 102
Chapter 6 • Yield to maturity of a bond (calculation) • Value of preferred stock – V = D/I – Other formats
Chapter 6 • Bond Market Rate vs. Coupon Rate – Market Rate > Coupon Rate • Bond Value is ? Par value – Market Rate = Coupon Rate • Bond Value is ? Par Value – Market Rate < Coupon Rate • Bond Value is ? Par Value
Chapter 8 • Cost of Capital – Cost of debt – Cost of preferred stock – Cost of external equity – Weighted Average Cost of Capital
Chapter 9 • Capital Budgeting • Calculate Net Cash Flows for a project
Chapter 10 • Capital Budgeting – Payback period – Discounted payback period – Net present value – Profitability index – Internal rate of return
No need to review: • Standard deviation • Variance • Beta • MIRR • Ratios other than REVPAR & ADR
Best Resources to Study • Quizzes • Previous Exams • Chapter Power point Slides • Chapter worksheets
Summary • Scantron required !!! • Bring a calculator !!! (And maybe a spare? ) • Pencils • Tables will be provided • Scratch paper provided • Exam time: – Tuesday 12/10/13 at 4: 00 pm to 6: 50 pm