FIN 301 Class Web Page, Fall '13
Instructor:
Maggie Foley
Jacksonville
University
The Syllabus (section 01 as an
example)
Reference website: https://www.jufinance.com/fin500 (has
excel functions and sample questions, but harder than this course)
Weekly SCHEDULE, LINKS, FILES and Questions
Week 
Coverage, HW, Supplements 
Required 
WSJ Papers Reference (Note: if you could not open the link, google the paper)

Videos (optional) 

Week 1 
Chapter
5 HW solution Chapter
5 HW Solution excel 
Credit card firms go with the ‘0”. Question: Your owe $5,000 to a credit card. This old card charges 18% of interest rate. There is a chance to transfer your debt to a new card with 0% interest rate for the first year and 8% of interest rate after that. But the transfer is going to cost you about 3% of the total balance. Is it a good offer? 
Fall of Lehman Brother part i http://www.youtube.com/watch?v=aPOtQkSiCk8 Fall of Lehman Brother part ii http://www.youtube.com/watch?v=l0N_FX0kUMI&feature=relmfu Fall of Lehman Brother part iii http://www.youtube.com/watch?v=YmZd3vVoPgY&feature=relmfu Fall of Lehman Brother part iv http://www.youtube.com/watch?v=FcO_dQCJ3HA&feature=relmfu Fall of Lehman Brother part v http://www.youtube.com/watch?v=L4gqzRePtes Fall of Lehman Brother part vi http://www.youtube.com/watch?v=Ms_tnEe4wFk&feature=relmfu 

Chapter
6 in class exercise part i Chapter 6 in class exercise part ii Chapter
6 risk return portfolio correlation CAPM example (with portfolio return, correlation, and standard
deviation) Steps: 1. Go to finance.yahoo.com and look for
AAPL (apple) in search window. 2. On the left panel, look for historical
prices. Click it. 3. Change the date to incorporate a five
year period and use the monthly price. 4. Download the worksheet with prices to
Excel 5. Keep the date and the adj close column. Adj close is
the closing price adjusted for dividend. 6. Calculate the monthly return. Return =
(P2P1)/P1. 7. Calculate the average of the monthly
return and the standard deviation of the monthly return. 8. Calculate the risk return ratio which
equals to standard deviation / return. 9. Repeat the above and get the monthly
return for GE, WMT, GOOG, Exxon, and Ford. 10. Set up an equally weighted portfolio
with two stocks, such as GOOG and WMT. Calculate the average return of this
two stock portfolio. Calculate the coefficient using CORREL
function. Calculate portfolio’s return. Rp= 50% * Return of GOOG + 50%*return of WMT. σ_{p}^{2}_{ }=
50%^{2}*σ_{WMT}^{2} + 50%^{2}*σ_{goog}^{2}+
2*50%*50%*Correlation * σ_{WMT}*σ_{goog}_{ } (not required) 11. Repeat the above to calculate the
correlation and return of the two stocks’ portfolio: (GOOG, GE), (GOOG, AAPL), (GOOG, EXXON),
(GOOG, Ford). 12. Compare the correlation and returns
among the five portfolios. 13. conclude
about how to pick stocks to reduce risk while maintaining the return (refer
to the graph). 14. Calculate beta, using slope function
in excel. Beta of Apple = slope(apple return, S&P500 return) 
Diversify
Your Portfolio With International Stocks
Have
'Alternative' Investments Lost Their Diversification Value?
A
'Bucket List' for Better Diversification

Laugh And
Learn About Personal Finance  InvestorED.ca
Funny Moneyman Credit Card
Game Show


Prior Exam No answer chapter 5 Prior Exam with Answers
Chapter 5 Prior Exam No answer chapter 6 Prior exam with
answers Chapter 6 – detailed answers Chapter 5 HW solution Chapter 5 HW
solution excel Chapter 6 HW solution Chapter 6HW
solution excel First Mid Term Part I –
Chapter 5 Study Guide Multiple Choice (12*2.5=30)
Short answer question (10*2=20) – Similar to on of the questions in the prior exams Extra Credit (2*3=6 points) First
Mid Term Part II – Chapter Six Study
Guide Multiple Choices
(2.5*15=37.5)
510 CAPM and SML questions, such
as slope, intercept, market return, risk free rate, etc. 11. Systematic risk vs.
unsystematic risk 12. Calculation of holding
period return 13. Concept of diversification. 14. SML and CAPM concept question 15. Diversification, risk and
return concept question Short
Answer Question (12.5*1) Extra
Credit (5 points) 

First Mid Term chapter 5 on Monday First Mid Term chapter 6 on Wednesday 

Videos – Financial market and institutions Capital Market vs. Money Market Mutual Fund, Retail Banking, Investment Banking, Venture Capital University: management
investment Co. Understanding the role of a
corporate and investment bank in financing the economy 
Facebook above $40 for first time since IPO
Twitter's
IPO Plan: Don't Do What Facebook Did

The Crooked E – The Unshredded Truth about Enron (2003) http://www.youtube.com/watch?v=aO0ZWsSBtco http://www.youtube.com/watch?v=3KpUfpioZ_4 Revenge of the Bridesmaids
http://www.youtube.com/watch?v=DE0xTw3Qb8 Mysterious Island (PART 1)
(2013,USA)
http://www.youtube.com/watch?v=FKgmp8Ty1jQ Mysterious island (part II)
(2013)


IPO articles Nasdaq IPO news (updated daily) Interest Rate – Fishers’ Effect 1. What is nominal rate? 2. What is inflation? 3. What is real rate? Which rate
is more important Chapter
3 PPT Chapter
3 In class exercise documents All
companies, foreign and domestic, are required to file registration statements,
periodic reports, and other forms electronically through EDGAR. EDGAR
online http://www.sec.gov/edgar.shtml Steps: 1. Go to EDGAR online 2. Search AAPL 3. Search financial statement of AAPL in 2012,
2011, 2010, and 2009. 

Chapter 3 HW questions (due next Monday) Chapter 3 HW solution 

Chapter 4 how to
master analyzing financial statement Stock screening tools FINVIZ.com http://finviz.com/screener.ashx We will
focus on several ratios: P/E
(price per share/earning per share) P/B (market
price per share / book value per share) PEG (PE
ratio / growth rate. PEG<1, undervalued stock) EPS
(earning per share) EPS
growth (EPS growth rate) ROA
(Return on Asset = NI/TA) ROE
(return on equity = NI/TE) Current
ratio (liquidity measure. = CA/CL) Quick
ratio (liquidity measure. = (CAInventory)/CL) Debt/Equity
(Leverage measure. = TD/TE) Gross
margin (profit measure. = EBITDA/sales, or = Gross margin/sales) Operating
margin (profit measure. = EBIT/sales, or = operating income/sales) Net
profit margin (profit measure. = NI/sales) Payout
ratio (= dividend / NI, measures distribution to shareholders). HW: Calculate all ratios above of WalMart except PEG, EPS growth rate, using the most
recent financial statement of WMT (due on Friday). Prior mid
term reference questions set one and set two Prior Mid
Term Reference answers 
The Billion Dollar SecretThe Zacks Rank Guide to Trading Success


Second Mid Term (chapter 3, 4, one day exam on Monday) Second Mid Term Exam Study Guide Multiple
Choice (20*4=80) 1.
What is the amount of the inventory, given
other balance sheet information. 2.
What is the amount
of the total equity, given other balance sheet information.
3.
What is the amount
of tax paid, based on income statement. 4. What is the retained earning, based on income statement. 5.
What is the changes in net working capital from 2008 to 2009? 6.
What was change in
cash flow in investment 7.
What is the net
change in cash flow in operation 8.
What is the net change in cash flow in
financing 9.
Definition of
use of cash and source of cash. 10.
How much is the
tax rate, based on income statement. 11.
How much is the
quick ratio? 12.
How much is the
debt ratio? 13.
How much is the
P/E ratio? 14.
What is the
return on asset? 15.
What is the total asset / tot 16.
asset equity ratio? 17. Definition of financial statement 18. How much is
operating income? 19. How much is net
income? 20. How many shares of stock are outstanding, based on income
statement. 21. Balance sheet question. Short
Answer questions: (20 points) Report the cash flow statement based on the financial
statement Chapter 7 Bond pricing (PPT) How Bonds Work (video) FINRA – Bond market information http://finramarkets.morningstar.com/BondCenter/Default.jsp Summary of bond
pricing excel functions To calculate bond price (annual coupon bond): Price=abs(pv(yield to maturity, years left to maturity, coupon rate*1000, 1000) To calculate yield to maturity (annual coupon
bond):: Yield to maturity = rate(years left to maturity, coupon rate *1000, price, 1000) To calculate bond price (semiannual coupon bond): Price=abs(pv(yield to maturity/2, years left to maturity*2, coupon rate*1000/2, 1000) To calculate yield to maturity (semiannual coupon bond): Yield to maturity = rate(years left to maturity*2, coupon rate *1000/2, price, 1000)*2 HW of bond pricing (due on next
Wednesday): Page 246, study problems 72, 74, 78, 712, 715, 716, 717, 719, 722 
Ukraine's
Troubles Hit Bonds
Two
Fed Officials Stay Put on Bond Buys
Bond
Yields Fall in U.S., U.K., Germany
Goldman Revamping BondTrading Network

Introduction to bond
investing (video) Treasury Bond Auction and Market
information 


Stock
market data on Wall Street Today's Stock Market
Activity

Stock Market Beginners
Learn How to Trade Stock
Jim Cramer Tells You How to
Trade Like a Professional


Chapter 7 HW Solution
Word File
Excel File Chapter 8 HW Solution
Word File
Excel File 

Third Mid Term Exam Study Guide Multiple
Choices (22.5*4=90) Issuer Callable Coupon _rate Maturity Moody
Rating Price Yield GE
Yes
5% 07/15/2015 A 95.38 _____ Use the above information to answer the following
questions (17)
Answer the questions 1215 using the
following information.
Questions 1719 are based on the following information.
20. Understand how to pick undervalued stock using PEG ratio.
Short Answer (10*1=10) Given bond price, yield,
coupon rate and calculate years to maturity Extra Credit (3 points) Uneven dividend given, calculate stock price 

Chapter
9 and 10 in class exercise 
ECB Time Line of
Financial Crisis http://www.ecb.int/ecb/html/crisis.en.html The great Euro crisis
2012 

Monday Chapter 10 Happy Holiday 

Monday: Chapter 10 (Multi IRR Question ( CF0=1600, CF1=10000,
CF2=11000, CF3=2000)) Wednesday: Review Final Exam Study Guide Multiple Choices (19*4.5=85.5) 1. Choose two mutually
exclusive projects: rule, concept 2. Calculate NPV 3. Calculate payback period 4. Calculate IRR 5. Calculate profitable index 6. Two mutually exclusive
projects. Calculate and choose one. 7. Two mutually exclusive
projects. Calculate crossover rate. 8. Two mutually exclusive
projects. Calculate and choose one. 9. Two mutually exclusive
projects. Calculate and choose one. 10. Find after tax cost of debt 11. Find cost of equity 12. What is weight of debt (hint: weight of debt = total debt / total asset)? 13. What is weight of equity (hint: weight of equity = total equity / total asset)? 14. What is WACC? 15. What is the
after tax cost of debt if the tax rate is 40 percent? 18. Concept of WACC 19. Concept of WACC Short answer questions(14.5 points) Understand npv profile and can draw the profile. What about two projects in the same profile? Extra Credit (5 points) Find both of the IRRs for the nonnormal cash
flows. 

Comprehensive Final (optional) Comprehensive Final Answers 