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HFT 4464 Final Exam Review.

Published byEdith Dean Modified over 6 years ago

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Presentation on theme: "HFT 4464 Final Exam Review."— Presentation transcript:

1 HFT 4464 Final Exam Review

2 Final Exam is Cumulative
Chapter 1 through Chapter 10 50 Multiple Choice Questions Vocabulary oriented (16) Problems (34)

3 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

4 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

5 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

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

7 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

8 Chapter 6 Yield to maturity of a bond (calculation)
Value of preferred stock V = D/I Other formats

9 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

10 Chapter 8 Cost of Capital Cost of debt Cost of preferred stock
Cost of external equity Weighted Average Cost of Capital

11 Chapter 9 Capital Budgeting Calculate Net Cash Flows for a project

12 Chapter 10 Capital Budgeting Payback period Discounted payback period
Net present value Profitability index Internal rate of return

13 No need to review: Standard deviation Variance Beta MIRR
Ratios other than REVPAR & ADR

14 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 4:00 pm to 6:50 pm

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