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Finance study guide sheet

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Finance study guide sheet
Study Guide for Final Exam – fin 301 (WC)

calculation of price of bonds

calculation of YTM for bonds

calculation of yield to call for bonds

calculation of current yield/capital gains yield for bonds

calculation of coupon interest rate/PMT for bonds

effect of change in interest rates on price of bonds

Bond sensitivities/Bond theorems

calculation of capital gains yield

calculation of expected total return using expected dividends, stock price and growth rate

calculation of stock price using expected total return, expected dividends/current dividends, and growth rate

calculation of growth rate using stock price, expected total return, expected dividends/current dividends.

calculation of expected stock price using expected total return, expected dividends/current dividends, and growth rate

calculation of expected dividends using stock price expected total return, and growth rate

calculation of preferred stock price, rate of return for preferred stock given other variables (including flotation cost)

calculation of cost of equity from retained earnings using CAPM APPROACH

calculation of weighted average cost of capital (WACC)

calculation of component cost of debt in WACC

calculation of cost of equity from retained earnings using dcf apporach

calculation of cost of equity by selling new common stock using dcf apporach

Calculation of NPV, IRR, MIRR, and Payback period

selection of mutually exclusive/independent projects using capital budgeting metrics (NPV, IRR, MIRR, Payback)

DIVIDEND POLICY, DIVIDEND IRRELEVANCE THEORY, DIVIDENDS VERSUS CAPITAL GAINS, SIGNALING HYPOTHESIS, CLIENTELE EFFECT, RESIDUAL DIVIDEND MODEL, drip.

calculation of stock price after stock split

Note: You can use expected total return and required return synonymously unless otherwise stated explicitly.

Disclaimer: This is just a guideline about the focus areas for studying for the final. This is not a

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