Midterm%20Review/Analysis

1
Midterm Review/Analysis

• October 26, 2006

2
Midterm Statistics
MC LA Total
Average 14.5 29 72.5
Maximum 20 38 95
Minimum 5 12 27
Std Dev 3.2 5.8 14.7
Median 15 31 75
3
Interpretation

• Many students are doing very well, especially
  given your tough schedule
• Some students can do much better, given the
  potential of this class
• It is not too late
• Use your groups and each other to help, since
  discussion is useful in fixing new concepts, and
  I am available

4
Strengths and Weaknesses

• Good understanding of the use of information like
  NASD Bond Info and relevance of book versus
  market values
• Some students are weak in applying and
  interpreting present value and bond price
  formulas
• Few understood how to calculate the tax on the
  sale of the machine in the long-answer question
  correctly

5
Accounting and Finance

• It is important for the success of your career to
  bring in a broad range of views and techniques,
  otherwise you will be viewed as inflexible
• Finance is the business discipline most closely
  associated with accounting and audits
• Context is important bean counting is not
  cooking chile, but thats what beans are for

6
E.G.Patricia Woertz, CEO, ADM

• Fortune magazines 4 most powerful woman in
  business
• Started with Ernst and Young, moved to Gulf Oil
• Her career changing experience in 1984Woertz
  was assignedwith handlingdivestitures as well
  as other sales needed to pay down debt. It was a
  kind of turning point in my career, she says.
  I learned about MA and how to value assets and
  work with investment bankers.
• You cannot anticipate which aspect of your USC
  education will be important to your career in the
  future

October 16, 2006 issue, p. 170
7
Final Examination

• 1/3 of questions from midterm topics
• 2/3 coverage of last half of course
• Open book and open note, emphasis on applications
  and interpretation
• Material in last half of course is more
  theoretical (two Nobel prizes in economics were
  awarded for the finance theories we study).
• New ideas need time to sink in, so plan your
  reading and problem sessions accordingly