Assignments all due August 1

All homework is due by Monday, August 1st.  I should be around most of the time over the next week, so feel free to call or email.

Attached is the individual assignment as well.

Good luck with the rest of the program!

Estimating WACC in practice

Check out the paper posted on the U: drive called "Estimating WACC in Practice".  Most of the paper discusses the challenges of estimating the cost of equity.

Exam scores sent

For those who sent me a confirmation email, I've mailed all grades from the first exam.  If you have further questions, let me know.

If you didn't receive your grade, it's likely because you didn't send me an email granting me permission (yes, in addition to signing the sheet.  Sorry to be so "legal".)  If you want to know your score, send me an email from the account that you signed up for on the first weekend.

Material on the second exam

The second exam is not explicitly cumulative, but of course some material assumes that you have learned prior stuff (e.g., you can't calculate operating capital unless you feel comfortable with financial statements).  The format of the exam will be similar to the first, but there will likely be more written answer and less multiple choice.  I certainly would not be surprising anyone by saying that you should feel comfortable with capital budgeting techniques and cash flow estimation.

• Chapter 2 - taxation and financial measures (NOPAT, operating capital, etc.)
• Chapter 12 - forecasting
• Chapter 10 - capital budgeting techniques (NPV, IRR, etc. - but no profitability index)
• Chapter 11 - estimating cash flows, but no risk analysis

Though I don't think most people will need it, you will be allowed 2 hours to complete the exam.  You can have a page of notes, your calculator / phone app / excel, and a writing instrument.  Also, please bring some additional paper for written answer questions.

I will not be available this Friday, but will be here all next week.  Let me know if you would like to talk or would like to stop by.

Forecasting assignment - data

A spreadsheet with all the numbers.

Material on the first exam

Since we jumped around a bit last weekend, I wanted to be explicit about what will be on the first exam on July 8th. The following is fair game for exam questions.

• All of chapter 1
• Chapter 2 to page 55- the structure of financial statements and accounting conventions as seen in the videos
• http://fil440.blogspot.com/2010/09/structure-of-financial-statements-two.html
• http://fil440.blogspot.com/2010/09/accounting-conventions-two-part-video.html
• All of chapter 3 - financial statement analysis
• All of chapter 4 - time value of money
• Most of chapter 5 - but especially valuation and finding the YTM. But NOT yield to call, yield curve/term structure stuff.
• All of chapters 6 and 7

I'd say that is more than plenty.   You will have 2 hours to complete the exam, but I expect it won't take most of you that long.  Feel free to use the full 2 hours.  Don't forget your opportunity for a 8.5" x 11" notes page - you can write on both sides.

Have a Happy Fourth of July!

Ratio problem set - spreadsheet

Here is the financial statements for the group problem set on ratios