FINAL EXAM MARCH 14TH AND 15TH, PICK TIME TO START

Would you be interested in another Finance exam? It will be the same format as the last exam with a 4 hour time limit. The exam will be open at any time on March 14th and 15th. Just give me the exact time you would like to start. See description below. Please show ALL work. You may use Excel or anything else.

Exam Information

The final exam is scheduled for Week 5. It opens at the beginning of Day 6 and closes at the end of Day 7 (March 14th and March 15th). This means you have a two-day window within which you can take the exam. The final exam tests materials covered after the midterm although you may need some of the techniques (e.g., general TVM solution techniques) from before the midterm for some of the questions. Specifically, the exam covers the following chapters: Chapter 7 (35 points, some conceptual but mostly calculations: bond characteristics, bond returns, bond pricing, YTM, current yield, capital gains yield); Chapter 9 (30 points, mostly calculations: common stock characteristics, preferred stock characteristics, common stock valuation using the discounted dividend model); Chapters 11 & 12 (45 points, mostly calculations: relevant/irrelevant cash flows, capital budgeting modeling, NPV/IRR); Chapter 13 (25 points, mostly conceptual: operating risk, financial risk, operating leverage, financial leverage, optimal capital structure, trade-off theory); and Chapter 15 (25 points, mostly calculations: evaluate alternatives for financing working capital).

As with the midterm, the final exam is structured differently than the Aplia homework assignments. Aplia questions are intended to test your understanding of basic financial concepts and calculations. They are not intended to prepare you for the exam, although a mastery of the concepts and calculations tested in them would be helpful. Questions on the exam are a little more involving than those on the assignments. A very good way to prepare for the exam is to practice the questions and problems at the end of each chapter in the textbook. Solutions to these problems are posted on Blackboard.

You have three hours to complete the final exam but must do so in one sitting. Again, the time allowance does not reflect the difficulty of the exam. In other words, you should not require 3 hours to complete the exam. You are allowed 3 hours to account for the extra time needed to type answers and possibly prepare spreadsheets.

You may find it easier to complete the capital budgeting modeling question in Excel or any other spreadsheet software. If you use a spreadsheet for this or any other problem, please submit your spreadsheet via the drop box.