Math 369 Financial Mathematics II

(Applied Mathematics of Corporate Finance)

Spring 2007

Instructor – James G. Bridgeman

Course grades have been posted to the registrar’s system

#4b: 6.9% and 93.1%  #5a: correct as given, but something like 79

1

80

was also graded “correct” because of incomplete class presentation

#1 ambiguous as given; if you argued that WACC is insufficient to give market cap rate then you got full credit for answering “no”

To enroll in this course you must also enroll in Math 401, sec. 02 for one credit.  This makes a total of 4 credits for the course

Mid-term exam will be in class on March 14.  It will include all assigned material through the end of chapter 6, plus derivatives material covered through Feb. 28.

You should be thinking about a term-paper topic.  Pick a section of the book not on the syllabus to explore, or a section on the syllabus to explore more deeply than the text did.  Although the paper will not be due until April 30 I will ask you to tell me your topic by March 30, and will hold you to that topic unless you give me a good reason to switch.  For those who did not pick their own topic by March 30, the assigned topic is at the following link:

project/paper topic

Cumulative assignments (Final)(most recent assignment at top)

Read Chapter 9 for background only

Do exercises 16.1, 16.5, 16.6, 16.7, 16.8 and 16.10

Study sections 16A-D and 16G

Do exercises 15.12-15.15, 15.17-15.18, and 15.20-15.21

Do exercises 15.1-15.9 and 15.11

Study sections 15E-J and read sections 15K-L for background

Study section 14C, and sections 15A-D

Do exercises 10.1, 10.2, 10.5, 10.6, 10.8, 11.1, 11.3, 11.4, 11.8, and 11.9

Study Chapter 11 sections A, D, E, F and G; read sections B, C, and H for background only

Study Chapter 10 sections A, C, E, and F; read sections B, D, and G for background only

Prepare for 3-14 Mid-term.  It will be open-book and open-notes so be familiar with where material is in the text and your notes.

Hand in problems given in class on 2-26 (due 2-28, or accepted until 3-2 under my office door or in mailbox)

Do exercises 6.2-6.18, 6.21

Study Chapter 6

Do exercises 5.3-5.7, 5.9-5.11, and 5.13-5.14; make sure you understand exercise 5.8 (but no need to prove)

Study Chapter 5 and Chapter 7, sections B and F

Read for background Chapter 3 and Chapter 4

Do exercises 14.1 thru 14.5

Study Chapter 14, section B

Do exercises 2.1 thru 2.11.

Study Chapter 2, sections C thru H and Chapter 14, section A.

Read for background Chapter 1 and Chapter 2, sections A and B

Study the financial statement analysis handout, do all Quiz questions, Practice Qu. 4,7,8,9,10 and Challenge Qu. 1

(the quiz solutions are in the handout; the PQ and CQ solutions are here.)