Fin 3050 Final Study Guide
Final Exam – 3050 - 2011
For the final, and drawing upon past experience, most students do well on computational problems tied to multiple choice, or multiple choice. In 20 years of teaching, I have also discovered that students struggle on conceptual problems, bringing together two (2) to three (3) concepts, in one problem, which is an introduction to life. If I were taking the exam I would first make sure I knew exactly what the question was asking, because during tutoring seldom do I find a student doing this, which should be basic. I find too many students are looking for a formula while reading the question. In fact last year, during tutoring, a student asked 4 times for the formula while I was reading the question, which was “given these conditions what is the face value of the bond.” (hopefully we all know it is $1,000)
The final will have 24 questions. There will be 15 multiple choice worth 4 points each, 10 fill-ins worth 3 points each, and two (2) fill-in worth 5 points each. As always, I will probably give credit for work attempted. You will also be entitled to use one 8 by 11 page of notes, front and back.
If I were studying for this exam, I would among other things, make sure I knew the following topics: FORMULAS AND DEFINITIONS!!!!!!!
Options – calls and puts,
Equity/Bond valuation, T-Bills, T-Notes.
Muni – bonds.
CAPM
Variance, standard deviation
APR/EAR
Capital Structure, financial, real assets
HPR, PV, FV,
Constant growth DDM, valuation, plowback, payout, growth
For the final, and drawing upon past experience, most students do well on computational problems tied to multiple choice, or multiple choice. In 20 years of teaching, I have also discovered that students struggle on conceptual problems, bringing together two (2) to three (3) concepts, in one problem, which is an introduction to life. If I were taking the exam I would first make sure I knew exactly what the question was asking, because during tutoring seldom do I find a student doing this, which should be basic. I find too many students are looking for a formula while reading the question. In fact last year, during tutoring, a student asked 4 times for the formula while I was reading the question, which was “given these conditions what is the face value of the bond.” (hopefully we all know it is $1,000)
The final will have 24 questions. There will be 15 multiple choice worth 4 points each, 10 fill-ins worth 3 points each, and two (2) fill-in worth 5 points each. As always, I will probably give credit for work attempted. You will also be entitled to use one 8 by 11 page of notes, front and back.
If I were studying for this exam, I would among other things, make sure I knew the following topics: FORMULAS AND DEFINITIONS!!!!!!!
Options – calls and puts,
Equity/Bond valuation, T-Bills, T-Notes.
Muni – bonds.
CAPM
Variance, standard deviation
APR/EAR
Capital Structure, financial, real assets
HPR, PV, FV,
Constant growth DDM, valuation, plowback, payout, growth