FRL 300 Test Guide

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For those who do not have Microsoft Word (I didn't), you could not print out or view the Test 1 Guide posted on Professor Ghazanfari's website (WebCT).

Here it is:

Test 1 Guide FRL 300

Test 1 will be based on chapters 1, 5 and 6. The test will be for a total of 80 points. There will be twenty 2-point questions on concept and definitions and eith 5-point problems. Here is the description of the types of question and problems.

1. Concepts and definitions based on the three chapters and class discussion.
2. Numerical problems related to the following:

• Finding present value, future value, interest rate, and number of periods using lump sum, annuity, and uneven cash flows.
• Finding amount of annuity.
• Finding the number of annuity cash flows.
• Compounding interest morethatn one time per year and continuous compounding.
• Finding effective annual rate.
• Annuity due and deferred annuity cases.
• Present value of perpetuity.

Note: Please bring one scantron. You can bring your financial calculator, a photocopy of the appendix in your text containing formulas, and a copy of the time value of money tables. No handwritten notes or scratch paper would be allowed.

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FRL (Finance, Real Estate, Law) 300 Test Guide 2

Test 2 will be based on chapters 7 and 8 plus one numerical problem from chapter 6. The test will be for a total of 80 points. There will be twenty 2-point questions on concepts and definitions and eight 5-point problems. Here is a description of the types of question and problems.

1. Concepts and definitions based on the two chapters and class discussions.
2. Numerical problems related to the following:

a. Loan amortization.
b. Value of bond, with both annual and semi-annual coupon
c. Bond yield to maturity, current yield, and capital gain.
d. Real and nominal interest rates.
e. Value of preferred stocks.
f. Value of common stocks, the case of constant dividends growth .
g. Value of common stocks, the case of multiple dividend growth rates.
h. Common stock total yield, dividend yield, and capital gain.

Note: Please bring one scantron. You can bring your financial calculator, a photocopy of the appendix in you text containing formulas, and a copy of the time value of money tables. No handwritten notes or scratch paper would be allowed.

[Admin]

FRL (Finance, Real Estate, Law) 300 Test Guide 3

Test 3 (final exam) will be for 120 points plus 20 bonus points. Eighty points will be based on the materials covered since Test 2, that is, chapters 2, 3, and 4. For these 80 points, there will be twenty 2-point questions on concepts and definitions and eight 5-point problems. Here is a description of the types of question and problems for these 80 points.

1. Concepts and definitions based on the three chapters and class discussions.
2. Numerical problems related to the following:

a) Corporate and personal tax liability.
b) Cash flows from asset, operating cash flows, net capital spending, and change in net working capital.
c) Cash flows to creditors and cash flows to stockholders.
d) Sources and uses of funds and statement of cash flows.
e) Ratios and ratio combinations.
f) Du Pont identity.
g) Pro forma financial statements.
h) External funds needed.
i) Internal growth rate and sustainable growth rate.

Forty points will be composed of problems from the chapters covered prior to Test 2 (chapters 5, 6, 7, 8, and 9). Please see Teat 1 Guide and Test 2 Guide for the list of the types of problems. The 20 bonus points will be concept and definition questions from chapters 5, 6, 7, 8, and 9.

Note: Please bring one scantron. You can bring your financial calculator, a photocopy of the appendix in you text containing formulas, and a copy of the time value of money tables. No handwritten notes or scratch paper will be allowed.