FIN301 Class Web Page, Fall ' 20
Instructor: Maggie Foley
Jacksonville University
Business
Finance Online, an interactive learning tool for the Corporate Finance
Student http://www.zenwealth.com/BusinessFinanceOnline/index.htm
Weekly SCHEDULE, LINKS, FILES and Questions
Chapter 
Coverage, HW, Supplements 
Required 
References


Chapter
1, 2 
Discussion: How to pick stocks (finviz.com) Daily earning announcement: http://www.zacks.com/earnings/earningscalendar IPO schedule: http://www.marketwatch.com/tools/ipocalendar FYI: MarketWatch Stock
Game written by Maelyn O’Connor (Thanks, Maelyn) Chapter 1: Introduction Flow
of funds describes the financial assets flowing from various sectors through
financial intermediaries for the purpose of buying physical or financial
assets. *** Household, nonfinancial business, and our government Financial
institutions facilitate exchanges of funds and financial products. ***
Building blocks of a financial system. Passing and transforming funds and
risks during transactions. ***
Buy and sell, receive and deliver, and create and underwrite financial
products. ***
The transferring of funds and risk is thus created. Capital utilization for
individual and for the whole economy is thus enhanced. Chapter 2 Introduction of Financial Market 1.
What
are the six parts of the financial markets
Money: · To pay for purchases and store wealth (fiat money, fiat currency) Financial Instruments: · To transfer resources from savers to investors and to transfer risk to those best equipped to bear it. Financial
Markets: · Buy and sell financial instruments · Channel funds from savers to investors, thereby promoting economic efficiency · Affect personal wealth and behavior of business firms. Example? Financial Institutions. · Provide access to financial markets, collect information & provide services · Financial Intermediary: Helps get funds from savers to investors Central Banks · Monitor financial Institutions and stabilize the economy Regulatory Agencies · To provide oversight for financial system. 2.
What
are the five core principals of finance
Introduction
to Capital Markets  ION Open Courseware (Video) How the stock market works (video) No homework
for chapters 1, 2 


Chapter 5 Time value of Money The
time value of money  German Nande (video)
Tutoring of
Time Value of Money calculation in Excel （video） Chapter
5 Homework (due with first mid term) 1.
You
deposit $5,000 in a saving account at 10% compounded annually. How much is
your first year interest? How much is your second year interest? (500, 550) 2.
What
is the future value of $5,000 invested for 3 years at 10% compounded
annually? ( 6,655) 3.
You
just bought a TV for $518.4 on credit card. You plan to pay back of $50 a
month for this credit card debt. The credit card charges you 12% of interest
rate on the monthly basis. So how long does it take to pay back your credit
card debt? (11 months) 4.
You
are going to deposit certain amount in the next four years. Your saving
account offers 5% of annual interest rate. First year: $800 Second year: $900 Third year: $1000 Fourth year: $1200. How much you can withdraw four years later? (4168.35) 5.
You
are going to deposit certain amount in the next four years. Your saving
account offers 5% of annual interest rate. First year: $800 Second year: $900 Third year: $1000 Fourth year: $1200. How much is the lump sum value as of today (NPV)? (3429.31) 6.
Ten
years ago, you invested $1,000. Today it is worth $2,000. What rate of interest
did you earn? (7.18%) 7.
At
5 percent interest, how long would it take to triple your
money? (22.52) 8.
What
is the effective annual rate if a bank charges you 12 percent compounded
monthly? (12.68%) 9.
Your
father invested a lump sum 16 years ago at 8% interest for your education.
Today, that account worth $50,000.00. How much did your father deposit 16
years ago? ($14594.50) 10.
You
are borrowing $300,000 to buy a house. The terms of the mortgage call for
monthly payments for 30 years at 3% interest. What is the amount of each
payment? ($1264.81) 11.
You
deposit $200 at the beginning of each month into your saving account
every month. After two years (24 deposits total), your account value is
$6,000. Assuming monthly compounding, what is your monthly rate that the bank
provides? (1.74%) 12.
You want to buy a fancy car. For this goal,
you plan to save $5,500 per year, beginning immediately. You will make 4 deposits in an account that
pays 8% interest. Under these assumptions,
how much will you have 4 years from today? ($26,766) 13.
Citi
card is giving you a good deal. You can transfer your balance from your
current credit card to Citi new card with $50 balance transfer fee. The new
card charges at 5% a year. But your old card charges at 12% a year. Your
balance in your old card is $5,000. If you can afford to pay back to the
credit card of $250 a month. How much quicker does it take you to pay back
your debt with the new card? (Hint: for the new card, your debt = 5000+50=5050;
Assume monthly compounding by credit card companies). (1.28 months) 14. Your girlfriend just won the Florida
lottery. She has the choice of
$40,000,000 today or a 20year annuity of $2,850,000, with the first payment
coming one year from today. If the mutual fund of hers provides 4% of return
each year for the next 20 years, which payment option is more attractive to
her? ($40million) 15. The Thailand Co. is considering the
purchase of some new equipment. The quote consists of a quarterly payment of
$4,740 for 10 years at 6.5 percent interest. What is the purchase price of
the equipment? ($138,617.88) 16. The condominium at the beach that you
want to buy costs $249,500. You plan to make a cash down payment of 20
percent and finance the balance over 10 years at 6.75 percent. What will be
the amount of your monthly mortgage payment? ($2,291.89) 17. Today, you are purchasing a 15year, 8
percent annuity at a cost of $70,000. The annuity will pay annual payments.
What is the amount of each payment? ($8,178.07) 18. Shannon wants to have $10,000 in an
investment account three years from now. The account will pay 0.4 percent
interest per month. If Shannon saves money every month, starting one month
from now, how much will she have to save each month? ($258.81) 19. Trevor's Tires is offering a set of 4
premium tires on sale for $450. The credit terms are 24 months at $20 per
month. What is the interest rate on this offer? (6.27 percent) 20. Top Quality Investments will pay you
$2,000 a year for 25 years in exchange for $19,000 today. What interest rate
are you earning on this annuity? (9.42 percent) 21. You have just won the lottery! You can
receive $10,000 a year for 8 years or $57,000 as a lump sum payment today.
What is the interest rate on the annuity? (8.22 percent) 22. Around Town Movers recently purchased a
new truck costing $97,000. The firm financed this purchase at 8.25 percent
interest with monthly payments of $2,379.45. How many years will it take the
firm to pay off this debt? (4.0 years) 23. Expansion, Inc. acquired an additional
business unit for $310,000. The seller agreed to accept annual payments of
$67,000 at an interest rate of 6.5 percent. How many years will it take
Expansion, Inc. to pay for this purchase? (5.68 years) 24. You want to retire early so you know you
must start saving money. Thus, you have decided to save $4,500 a year,
starting at age 25. You plan to retire as soon as you can accumulate
$500,000. If you can earn an average of 11 percent on your savings, how old
will you be when you retire? (49.74 years) 25. You just received a credit offer in an
email. The company is offering you $6,000 at 12.8 percent interest. The
monthly payment is only $110. If you accept this offer, how long will it take
you to pay off the loan? (82.17 months) 26. Fred was persuaded to open a credit card
account and now owes $5,150 on this card. Fred is not charging any additional
purchases because he wants to get this debt paid in full. The card has an APR
of 15.1 percent. How much longer will it take Fred to pay off this balance if
he makes monthly payments of $70 rather than $85? (93.04 months) 27. Bridget plans to save $150 a month,
starting today, for ten years. Jordan plans to save $175 a month for ten
years, starting one month from today. Both Bridget and Jordan expect to earn
an average return of 8 percent on their savings. At the end of the ten years,
Jordan will have approximately _____ more than Bridget. ($4,391) 28. What is the future value of weekly
payments of $25 for six years at 10 percent? ($10,673.90) 29. At the end of this month, Bryan will
start saving $80 a month for retirement through his company's retirement
plan. His employer will contribute an additional $.25 for every $1.00 that
Bryan saves. If he is employed by this firm for 25 more years and earns an
average of 11 percent on his retirement savings, how much will Bryan have in
his retirement account 25 years from now? ($157,613.33) 30. Sky Investments offers an annuity due
with semiannual payments for 10 years at 7 percent interest. The annuity
costs $90,000 today. What is the amount of each annuity payment? ($6,118.35) 31.
Mr. Jones just won a lottery prize that
will pay him $5,000 a year for thirty years. He will receive the first
payment today. If Mr. Jones can earn 5.5 percent on his money, what are his
winnings worth to him today? ($76,665.51) 
Summary of math and excel equations Math
Equations FV
= PV *(1+r)^n PV
= FV / ((1+r)^n) N
= ln(FV/PV) / ln(1+r) Rate
= (FV/PV)^{1/n} 1 Annuity:
N = ln(FV/C*r+1)/(ln(1+r)) Or
N = ln(1/(1(PV/C)*r)))/ (ln(1+r)) EAR
= (1+APR/m)^m1 APR
= (1+EAR)^(1/m)*m Excel
Formulas To get FV, use FV function. =abs(fv(rate, nper,
pmt, pv)) To get PV, use PV
function = abs(pv(rate, nper,
pmt, fv)) To get r, use rate
function =
rate(nper, pmt, pv, fv) To get number of years,
use nper function = nper(rate, pmt, pv,
fv) To
get annuity payment, use PMT function = pmt(rate, nper, pv,
fv) To
get Effective rate (EAR), use Effect function =
effect(nominal_rate, npery) To
get annual percentage rate (APR), use nominal function =
nominal(effective rate, npery) NPV NFV calculator(FYI, might be
helpful) Time Value of Money
Calculator 

Chapter 3 Financial Statement Analysis Experts Explain: Financial Statements (well
explained, video) *************
Introduction *************** Let’s
compare Nike with GoPro based on 10K (www.nasdaq.com) Nike Income
Statement (values in 000's)
Nike Balance
Sheet (values in 000's)
Nike Cash
Flow Statement (values in 000's)
