1 / 7

HFT 4464

HFT 4464. Exam 3 Review. This Exam Covers the Following Topics. Chapter 8: Cost of Capital Chapter 9: Capital Budgeting Chapter 10: Capital Budgeting Methods 30 Multiple Choice Questions Total 12 are vocabulary oriented. Chapter 8. Solve problems for Cost of Capital Cost of Debt

ivan-cunningham
Télécharger la présentation

HFT 4464

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. HFT 4464 Exam 3 Review

  2. This Exam Covers the Following Topics • Chapter 8: Cost of Capital • Chapter 9: Capital Budgeting • Chapter 10: Capital Budgeting Methods • 30 Multiple Choice Questions Total • 12 are vocabulary oriented

  3. Chapter 8 • Solve problems for Cost of Capital • Cost of Debt • After Tax Cost of Debt • Cost of Preferred Stock • Cost of Internal Equity • Cost of External Equity • Weighted Average Cost of Capital • See Worksheet Problem & quiz from Ch. 8

  4. Chapter 9 • Calculate Net Investment for a Project • Calculate Net Cash Flows for a Project • Similar to Chapter 9 homework • Know difference in opportunity & sunk costs

  5. Chapter 10 • Capital Budgeting Problems for the Following Methods • Payback period • Discounted payback period • Net present value • Profitability index • Internal rate of return • Modified internal rate of return • Refer to handout sample problem

  6. Vocabulary • Independent versus mutually exclusive decision • Definition of opportunity cost • What are net cash flows? • Definition of payback period • Net present value & scale differences • Issuance costs • Purposes for considering a capital project • Marginal cost of capital • What is terminal value in the MIRR formula?

  7. Other Notes: • You must provide your own Scantron • Brown form • You must provide your own calculator • Formula sheet will be provided • Bring your book for tables • Scratch paper will be provided • Questions?

More Related