SolvayBusinessSchool
Finance Vietnam 2004A.Farber
How to prepare for the exam?
The final exam will consist of 5 main questions each subdivided into 4 questions. The time allowed for the exam is 3 hours. You will receive with the exams a sheet with the main formulas presented in class and also tables (similar to those at the end of the book) with discount factors and annuity factors. Questions for the exams will drawn from question in the various problem sets that I prepared for this course and from end-of-chapters Questions and Problems in the Ross, Westerfield, Jaffe book.
Beside my class note, you should study the following parts of the book:
Chap 4.4: Net Present Value : Simplifications
Chap 5: How to Value Bonds and Stocks
Chap 25.5 (4th ed. 24.5)Duration Hedging
Chap 7.3 Inflation and Capital Budgeting
Chap 9: Capital Market Theory: An Overview
Chap 10: Return and Risk: The Capital-Asset-Pricing Model
Chap 12: Risk, Cost of Capital and Capital Budgeting
Chap 13: Corporate-Financing-Decisions and Efficient Capital Markets (13.1 to 13.3)
Chap 22: Options and Corporate Finance: Basic Concepts
Present value
Perpetuity: 6th ed.4.19, 4.22
Growing perpetuity: 6th ed.4.24, 4.25, 4.26
Bonds
Problem sets: SeaBank
Bond valuation: 6th ed.5.1, 5.7
Duration: 6th ed.25.13, 25.17, 25.18, 25.15, 25.20
Stocks valuation
Problem sets: Electraviet
DDM: 6th ed.5.17 to 5.21
Growth opportunities: 6th ed.5.25, 5.26, 5.30, 5.31
Investment decisions
No inflation: 6th ed. 7.3, 7.7
With inflation: 6th ed. 7.13, 7.14
Risk and Return
Problem sets: Aunt Dao, Asian Balanced Fund, Tran Nam
Return calculation6th ed. 9.1, 9.2
Risk premium: 6th ed.9.6, 9.9
Mean and standard deviation 6th ed. 9.10, 9.11, 9.12
Normal distribution 6th ed.9.19
Expected Return, Variance and Covariance 6th ed. 10.1, 10.2, 10.3
Portfolios 6th ed.10.5, 10.6
Beta calculation: 6th 12.2, 12.5 (use Excel)
CAPM6th ed.10.24, 10.25, 10.26, 10.27
Cost of capital with debt
(For the questions in this chapter, ignore taxes)
Financial leverage and beta and WACC: 6th ed.12.3, 12.12
Options
Problem sets: Hong Kong Telecom
Basic concepts: 6th ed.22.6, 22.7
Using options: 6th ed. 22.08
Put-call-parity: 6th ed.22.10
Binomial model: 6th ed. 22.17, 21.18
Risky debt: 6th ed.21.26, 21.27