BA 303 Final Exam Review by OXElpPCK


									                                  BA 303 Final Exam Review

Review Materials
   1. This sheet
   2. Spreadsheets
   3. Homework
   4. Midterms
   5. Summary and Conclusions (for each chapter)

Formula Sheet
Prepare a formula sheet to use on the final – one 8 ½” by 11” sheet, both sides, with anything you
would like, written or typed.

Topics – Top 10 list
   1. Breakeven Analysis (Ch 10)
   2. WACC (Ch 10)
   3. Calculating Project Free Cash Flow (Ch 9)
   4. Calculating Project Value based on Free Cash Flow (Ch 9)
   5. NPV (Ch 8)
   6. IRR (Ch 8)
   7. Payback/Discounted Payback (Ch 8)
   8. Stock Valuation – Non-constant growth model (Ch 5)
   9. Bond Valuation (Ch 4)
   10. Portfolio risk and return (Ch 7)

Key Formulas/Concepts (you might want to include these on your Formula Sheet)
Chapter II
   o Net Income
   o Operating Cash Flow
   o Working Capital
   o Capital Expenditures
   o Free Cash Flow
   o Du Pont Identity (and the four ratios that compose it)

Chapter III
   o Present Value
   o Present Value of Annuity
   o Future Value
   o Future Value of Annuity
   o Present Value of Perpetuity
   o For each, solve for PV, FV, payment, rate, time, different umber of periods/year

Chapter XVIII
   o Sustainable Growth Formula
   o Calculate a Proforma based on the % of Sales Method
   o External Funds Needed – Concept and Formula

Chapter IV
   o Bond types and features
   o   Bond markets – the relationship between bonds and interest rates
   o   Bond Valuation (price, yield to maturity, maturity, multiple periods per year)

Chapter V
   o Stock Valuation based on the Constant Divided Model
   o Stock Valuation based on the Constant Dividend Growth Model
   o Stock Valuation based on the Non-Constant Dividend Growth Model
   o Preferred Stock Valuation (perpetuity)
   o Value the Enterprise Based on Free Cash Flow

Chapter VI
   o Asset Classes
   o Dividend Yield (Dividend Return)
   o Capital Gain Yield (Capital Gain Return)
   o Total Yield (Total Return)
   o Average Return
   o Standard Deviation as a Measure of Risk
   o Calculation of Standard Deviation from Historic Returns

Chapter VII
   o Expected (future) Return
   o Portfolio Average Return
   o Portfolio Standard Deviation
   o Security Market Line
   o Expected Return on an Asset
   o Expected Return on a Portfolio
   o Portfolio Beta

Chapter VIII
   o Payback
   o Discounted Payback
   o IRR
   o NPV

Chapter IX
   o MACRS Depreciation/Book Value Calculation
   o Calculation of Project Free Cash Flow
   o Cash Flow on Sale of a Fixed Asset

Chapter X
   o Operating Leverage
   o Financial Leverage
   o Cost of Equity
   o Cost of Debt
   o WACC

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