FINC850 - EMBA - Winter 2011

Jay Coughenour, coughenj@lerner.udel.edu

Course Syllabus

Power Point Slides:

Jan7 Time-Value of Cash Flows

Jan15 NPVs, IRRs, and EACs

Jan22 Bond and Stock Valuation - Quiz 1

Feb5 Portfolio Theory and the CAPM

Feb12 Capital Budgeting with Risk

Feb19 Forwards, Futures, & Options - Test 1  (Practice Test and Solutions)

Mar5 Finish Feb19 note set

Mar12 FRAs and Swaps

Mar19 - Test 2  (Practice Questions and Solutions)

Current Events:

Jan7 WSJ - 12/10/10 - Companies Keep Tight Grip on Cash;

        FMC Corp - Quarterly Data

        Wiki - Share Repurchases

        Why do US firms hold so much more cash than they used to? by  Bates, Kahle, Stulz, 2008.

 

Jan15 WSJ - 1/14/11 - Pack mentality grips hedge funds

         Hedge funds from Wikipedia

         Hedge fund return correlations from Andrew Lo, "Congressional Testimony: Hedge Funds... and Crisis of 2007-2008"
 

Jan 22   WSJ - 1/22/2011 - New Google CEO

            WSJ - 1/22/2011 - Schmidt to sell $300+ million of Google shares

            WSJ - 1/22/2011 - Schlumberger Booms

            WSJ Earnings Graphics

 

Feb5  NYT - 2/1/2011 - The paradox of corporate taxes

        Bloomberg - How Google avoids taxes

        Barrons - 2/3/2011 - Rising commodities put profits through the wringer

        WSJ Commodities Page

 

Feb12  WSJ - 2/8/2011 - Health Care Investment: The Hidden Crisis  (uses P/E ratios!)

          SeekingAlpha.com

          Merrill Lynch Beta Book (via Rutgers)

 

Feb19    WSJ - 2/16/2011 - Is your job endangered?

            Bloomberg - 2/18/2011 - Buffett Says Pricing Power Beats Good Management When Evaluating Companies

 

Mar5

         WSJ - Feb12 2011 - Cotton prices reach all time high

         AP - Feb14 2011 - Clothing prices to rise 10 pct starting in spring

         CBS Marketwatch - Mar4 - Oil futures hit $104 per barrel

         The Real and Financial Implications of Corporate Hedging - Campello et al (2011) forthcoming in JF

        Graph of Nearest to Deliver Oil futures contract: Mar4

       

 

 

Mar12  Fortune - Mar4 2011 - From Guns & Roses to Money Manager

          USAToday - Mar7 2011 - Starbucks at 40

 

Mar 19  WSJ - Mar 17 2011 - Commodities rise as fears moderate over Japan

 

Spreadsheets:

Valuing Cash Flows

Jan7 in class exercises (time value of money)

Jan15 in class exercises (NPV, IRR, payback)

Jan23 in class exercises (stocks pg 43)

Feb5 Portfolio Selection and Risk Pricing

Feb19 Binomial and Black-Scholes option pricing

Mar5 Basic option strategies

Practice Problems:

Chapter 4 (single cash flows): 2-8, 10-11, 15-17, 20, 25, 75, 76  Excel Solutions 

Chapter 4 (multiple cash flows): 12-14, 19, 31, 34, 38, 45, 50, 61, 65 Excel Solutions 

Chapter 5: 1, 3, 5, 6, 10, 11, 16, 18, 23, 24  Excel Solutions

Chapter 6: 1, 3, 7, 10, 12-14, 25, 30-32  Excel Solutions

Chapter 8: 1-6, and 24 Excel Solutions

Chapter 9: 1-5, 7, 14, 16, 28 Excel Solutions

Chapter 11: 1-10, 27, 29 Excel Solutions  12-14, 17-20, 24 Excel Solutions

Chapter 13: 1, 4-5, 7-8, 10-11, 14  Excel Solutions

Mar5 Derivatives in-class practice

Risk Management Chapter 2 (7 problems): 1, 3, 5, 6, 9, 13, and 14.

Risk Management Chapter 3 (7 problems): 3-6, 12-14.

Risk Management Chapter 4 (7 problems): 1, 3, 5-8, and 10.  Excel Solutions Chapters 2-4

Risk Management Chapter 7 (4 problems): 1-3, and 8.

Risk Management Chapter 8 (5 problems): 1-4, and 7.  Excel Solutions Chapters 7-8

Risk Management Readings:

McD Chapter 2 - Feb19

McD Chapter 3 - Feb19

McD Chapter 4 - Mar5

McD Chapter 7 - Mar5

McD Chapter 8 - Mar12              

Other Readings

(often only loosely or completely unrelated to class topics):

WSJ - 12/6/2010 - Dear Salutation

CNBC - 1/31/2011 - Why is Wall Street so addicted to prestige colleges?

ESPN - This is just too sad...

WSJ - 3/5/2011 - The statistical madness of office pools

Reuters - 3/11/2011 - Anti-trust lawsuit against DuPont