The general equation for a simple present value.
(After click, write on board.)
What is PV = FV / (1 + r)^t.
100
This is what investors are thinking of when company executives mention "cost of capital."
What is required return.
100
Price per share MW agreed to pay for JOSB.
What is $65.
100
$1,000
What is face value or par value.
100
Many students are probably already doing this for April 17-May 1, aware that one benefit is no final exam.
What is setting aside time to focus on the Financial Management Challenge and balance F300 work with Little 500 activities.
200
Future value of $500 (now) invested at 7% interest for three years.
What is $612.52.
200
An expression of CAPM.
(After click, write on board.)
What is ke = rf + (rm - rf)beta.
200
Current betas of MW and JOSB.
What are 1.38 (MW) and 0.94 (JOSB).
200
According to Yahoo! Finance, the current risk-free rate on a 10-year Treasury note.
What is about 2.7%.
200
April 15.
What is the date for Examination 2.
300
An instrument that involves a constant annual payment.
What is an annuity.
300
Oh, say about 9%.
What is a fine number to use for rm, the long-term return on equity.
300
Zuck apparently places this value on instant messages.
What is $19 billion offer to buy WhatsApp.
300
Status of a bond price when coupon rate is greater than the yield.
What is a premium.
300
Keanu Reeves.
Who is a really bad actor.
(But not the worst. See Michael Pare in The Philadelphia Experiment, circa 1984.)
400
Present value of this stream of annual cash flows (starting at the end of Year 1) with a 10% discount rate: $1,000, $1,500, $750.
(After click, set this up and solve on the board, with help from team members.)
What is $909.90 + $1,239.67 + $563.49 = $2,713.06
400
Ke when 10-year Treasuries are yielding 3% and beta is 1.5.
What is Ke = rf + (rm - rf)beta = .03 + (.09 - .03)1.5 = .12, or 12%.
400
Uncertainty about regulatory approval probably dampens some of the excitement about this marriage.
What is the merger of Comcast (CMCSA) and Time Warner Cable (TWC).
400
Price when annual coupon = $65, yield = 6.5%, maturity in 13 years.
What is $1,000.
400
You'll focus some time developing these because they often are a key source of advantage in the professional workforce.
What are soft skills like collaborating with others, communicating effectively, producing clean, easily readable documents.
500
Balance you would have if you could earn an average annual return on equity investing of 7%, and had the discipline to invest only $200 per month for the next 40 years.
What is FV of $200 per month for 480 months earning (.07/12 =) 0.58% = $524,962.68.
500
This happens when the company has no dividends, no beta, and maybe even several years of no profits.
What is do an IPO and bring humongous wealth to founders, a la Twitter.
500
These two huge retail celebrities have never felt good, looked good, or performed well (good) together, despite wedding gifts of appliances, tools, and Martha Stewart.
What are Sears and Kmart, which are both owned by Sears Holdings.
500
Price when annual coupon = $50, yield = 6.2%, maturity in 7 years.
What is $932.68.
500
List of real companies, the financial statements for which were used for analysis in F300.
(After click, write on board.)
What is... Walmart, John Deere, Kohl's, Target, Amazon, Finish Line, JC Penney, Microsoft