HFT 4464

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HFT 4464

• Final Exam Review

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Final Exam is Cumulative

• Chapter 1 through Chapter 10
• 50 Multiple Choice Questions
• Vocabulary oriented (16)
• Problems (34)

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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

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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

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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

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Calculations

• Payback period
• Discounted payback
• Net Present Value
• Profitability index
• IRR
• Ratios
• ADR
• REVPAR

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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

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Chapter 6

• Yield to maturity of a bond (calculation)
• Value of preferred stock
• V D/I
• Other formats

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Chapter 6

• Bond Market Rate vs. Coupon Rate
• Market Rate gt Coupon Rate
• Bond Value is ? Par value
• Market Rate Coupon Rate
• Bond Value is ? Par Value
• Market Rate lt Coupon Rate
• Bond Value is ? Par Value

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Chapter 8

• Cost of Capital
• Cost of debt
• Cost of preferred stock
• Cost of external equity
• Weighted Average Cost of Capital

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Chapter 9

• Capital Budgeting
• Calculate Net Cash Flows for a project

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Chapter 10

• Capital Budgeting
• Payback period
• Discounted payback period
• Net present value
• Profitability index
• Internal rate of return

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No need to review

• Standard deviation
• Variance
• Beta
• MIRR
• Ratios other than REVPAR ADR

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Summary

• Scantron required !!!
• Bring a calculator !!! (And maybe a spare?)
• Pencils
• Scratch paper provided
• Bring your book for the tables!
• Exam time
• Tuesday 12/7/10 at 400 pm to 650 pm