1. HFT 4464 Exam 1 Review

2. Chapter 1 Advantages/Disadvantages of Organizational Structures Advantages/Disadvantages of Organizational Structures Sole proprietorshipSole proprietorship PartnershipPartnership CorporationCorporation Definition of Financial Management Definition of Financial Management Factors that determine future dividends Factors that determine future dividends What is an agency relationship? What is an agency relationship?

3. Chapter 2 Where does stock trading occur? Where does stock trading occur? Primary marketPrimary market Secondary marketSecondary market Holding period return (Calculation) Holding period return (Calculation) The various financial statements The various financial statements How to read a bond quotation How to read a bond quotation Advantages/disadvantages Advantages/disadvantages BondsBonds Preferred stockPreferred stock Common stockCommon stock

4. Chapter 3 Calculation of EPS & P/E Ratio Calculation of EPS & P/E Ratio Classes of ratios Classes of ratios Ratio calculations Ratio calculations Dividend YieldDividend Yield You will be responsible for memorizing the following ratios:You will be responsible for memorizing the following ratios: ADR (Average Rate) ADR (Average Rate) REVPAR REVPAR Cost of goods sold Cost of goods sold Current Ratio Current Ratio Quick Ratio Quick Ratio Profit Margin Profit Margin Occupancy Percentage Occupancy Percentage

5. Chapter 4 Risk & Hedging Risk & Hedging Diversification Diversification Correlation Coefficient Correlation Coefficient Calculations: Calculations: Expected returnExpected return Return varianceReturn variance Standard deviationStandard deviation Formula sheet will be given with examFormula sheet will be given with exam

6. Overall Bring a calculator !!!! Bring a calculator !!!! No cell phones or PDA’s. You will be asked to put them away if used.No cell phones or PDA’s. You will be asked to put them away if used. Bring pencils !!! Bring pencils !!! Scantron will not read penScantron will not read pen Scantron form 2052 (Brown) required Scantron form 2052 (Brown) required