Math 5621 (369) Financial Mathematics II

(Applied Mathematics of Corporate Finance)

 

Spring 2009

Instructor James G. Bridgeman

instructor's web site

syllabus for the course

 

Here is the final exam. Here are the final exam solutions and solution spreadsheet.

 

Papers are due to me no later than 5PM Monday May 4 (faculty mailbox, under my office door, or electronically).

 

Grading Worksheet Course grades are posted on peoplesoft.

 

Opportunity Cost of Capital

 

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

Study sections 9A through 9I

Study sections 7G, H, and I and read 7J and 7K for background

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

Study sections 16A-D and 16G

Do exercises 15.9, 15.11-15.15, 15.17-15.18, and 15.20-15.21

Study Sections 15I-J and read for background 15K-L

Do exercises 15.1-15.8

Study Section 14C and Sections 15A-15H

Do exercises 11.1, 11.3, 11.4, 11.8, and 11.9

Study Chapter 11 sections A, D, E, F and G (read the other sections for background only)

Do exercises 10.1, 10.2, 10.5, 10.6, 10.8

Study Chapter 10, sections A, C, E, and F (read the other sections for background only)

Email me, or hand me in class, your topic for your term paper.

Write out (and hand in on 3-16) the interpretation of the earnings yield, the price/earnings ratio and the market capitalization rate in terms of the PVGO when depreciation differs from the investment amount necessary to maintain current capacity.

Do exercises 10.1, 10.2, 10.5, 10.6, 10.8

Study Chapter 10, sections A, C, E, and F (read the other sections for background only)

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

Read chapters 3 and 4 only for background

Study section 7F

Do exercises 14.1 thru 14.5

Study Chapter 14, section B keep connections with financial analysis statement handout, chapter 2 and chapter 14A in mind.

Study Chapter 14, section A keep connections with chapter 2 in mind

Study Chapter 7, sections A-E

Do exercises 2.1 thru 2.11

Study Opportunity Cost of Capital (download it just above)

Study Chapter 2, sections C thru H

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.)