Introduction to Finance
Dr. George Blazenko
Caution — In accordance with the
Academic Honesty Policy (T10.02), academic dishonesty in any form will not be
tolerated. Prohibited acts include, but
are not limited to, the following: making use of any books, papers, electronic
devices or memoranda, other than those authorized by examiners. speaking or communicating with other students who are
writing examinations. copying from the work of other candidates or purposely
exposing written papers to the view of other candidates. Cell phones must be
turned off during examinations. Invigilators will have an electronic device
that identifies when a cell phone is on. You may not use your cell-phone for
monitoring time or as a calculator during an exam. So, bring a watch! Having a
cell phone on during an examination is grounds for academic discipline.
Lecture
Recordings
For lecture recordings prior to the Midterm use the
hyperlinks “Day” or “Evening” as appropriate. For March 17 and March 19
lectures on Chapter 7 (recorded in EDU7618 to an empty lecture theatre) use the
hyperlink “Day.” Lecture recordings after March 19 (Chapter 8, 9, and 10) will
be recorded with my document camera on my desktop in my office. There will be
usually two hyperlinks for each lecture: approximately 50 minutes each so that
the video files do not become overwhelmingly large. Chronologically, the most
recent lecture at the top and older as you proceed downward on this website. I
have dated these lectures with the date that in normal circumstances these
lectures would have taken place. Apologize in advance for any quality problems.
I cannot claim to be an expert in video recording.
April 9: Lecture and Video Canceled (Good Luck on the
Final!)
April
7: Chapter 9 Part III, Inflation and Business Investment Analysis
April
7: Chapter 9, Part II, Business Investment Analysis, Cases Where You Must Use
IRR with Caution
April
7: Chapter 9, Part I, Business Investment Analysis for a Non-Typical Business
Investment
April
2: Chapter 10, Business Investment Analysis, Part II
April
2: Chapter 10, Business Investment Analysis, Part I
March
31: Chapter 8, Equity Financing Part III (Private Equity Financing)
March
31: Chapter 8, Equity Financing Part II (Rights Offer)
March
31: Chapter 8, Equity Financing Part I (General Cash Offer)
March
26: Chapter 8, Constant Growth DDM, Part III
March
26: Chapter 8, Constant Growth DDM, Part II
March
24: Chapter 8, Constant Growth DDM, Part I
March
24: Chapter 8, Part I, DDM & Preferred Shares
Day
Lecture Recordings (EDU7618)
Evening
Lecture Recordings (B9201)
NET
INCOME VERSUS TAXABLE INCOME
CORPORATE
INCOME TAX RATES 2019
Links to
Textbook
Chapter
2: Financial Statements in Financial Analysis
Chapter
4: Corporate Financial Planning
Chapter
5: Taxation and Investment Returns
Chapter
6: The Math of Finance
Chapter
7: Fixed Income and Debt
Chapter
8: Equities and Markets
Chapter
9: Business Investment
Chapter
10: Corporate Performance Evaluation
Chapter
11: Returns for Risky Financial Assets
Quiz 1
Solution Keys
Summary Statistics
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DAY |
EVE |
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AVG/10 |
8.85 |
8.45 |
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STD
DEV |
2.31 |
2.43 |
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MEDIAN/10 |
10 |
9.5 |
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#10s |
87/134 |
61/125 |
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Midterm: Solution Keys
If you did not do as well as you might
have liked on the midterm, we always look for students who do better on the
final compared to the midterm and adjust final grades using my judgment.
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DAY |
EVE |
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AVG/60 |
45.5 |
44.3 |
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STD
DEV |
13.6 |
13.3 |
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MEDIAN/60 |
49 |
48 |
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#60s |
13 of 133 |
8 of 124 |
Final Exam Files
Spring
2020 Final Exam Version 1
Solution
Key for Spring 2020 Final Exam Version 1
Input
Numbers and Numeric Answers Q1 to Q40 (EXCEL)
Tentative
ASSIGNMENTS
(subject
to change but no change after one week prior to due date)
Assignment
1 (Due Thursday Jan 23 by 9:30pm)
Assignment 2 (Due Thursday Jan 30 by 9:30pm)
Assignment
3 (Due Thursday Feb 6 by 9:30pm)
Assignment
4 (Due Thursday Feb 13 by 9:30pm)
Assignment
5 (Due Thursday Feb 27 by 9:30pm)
Assignment
6 (Due Thursday Mar 5 by 9:30pm)
Assignment
7 (Due Thursday Mar 19 by 9:30pm)
Assignment
8 (Due Thursday Mar 26 by 9:30pm m)
Assignment
9 (Due Thursday Apr 2 by 9:30pm)
Assignment
10 (Due Thursday Apr 9 by 9:30pm)
Assignment
11 (Due Thursday Apr 16 by 9:30pm)
Assignment 11 is optional. If you missed one of the first 10 assignments,
you can make up the loss by handing in assignment 11. If you already have 10
assignment marks from the first 10 assignments you cannot get more that 10/10
by handing in assignment 11.
Quiz and Exam
Samples
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Quiz 1 Samples (Chap 1 & 2) |
Quiz 2 Samples (Chap. 6) |
Midterm Samples (Ch.1,2,3,4,5,6) |
Final Exam Samples (Chs. 1,2,3,6,7,8,9,10) |
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Extra Office Hours
for Final Exam
Kevin: Saturday,
Apr 11, 8:30am-1:30pm
Adam: Thursday, Apr
16, 4:30pm-7:30pm
Kevin: Saturday,
Apr 18, 8:30am-12:30pm
Jiawei: Monday, Apr
20, 9am-12am
Sadaf: Wednesday,
Apr 22, 1pm-4pm
Final Exam Info
The Final Exam covers
chapter 1, 2, 3, 6 (all of chapter
6 that we studied), 7, 8, a portion of chapter
9, and a portion of chapter 10. More specifically, read for the final
exam in chapter 9, sections 9.1 to 9.4, 9.5, 9.5.1,
9.5.2, 9.6, 9.7 inclusive. In chapter 10, read sections 10.1, 10.2, 10.3, 10.4.
You will need a financial
calculator on the final exam!
Your final exam is online, 7pm – 10pm PDT (Vancouver time), April 23,
2020. The examination period is three hours: there will be no extensions.
Shortly before the exam start-time, you will receive an email from me to your
@sfu.ca email address. This email will be part of a mass email that I send to
all students. The exam questions will be attached as a PDF file. If you have
difficulty opening the PDF file, try a new browser. If you still have
difficulties, send me an e-mail and I will try to address the issue. Before the
final exam, I will have sent several practice mass emails. If you have not
received any of these, then I may have mis-recorded
your email address and you should contact me immediately.
You will receive exam questions with the above described email, but you
will submit answers through CANVAS. Once you sign-in to CANVAS, on the
“Dashboard” select “BUS 312 D100/ E100.” Click on “Quizzes.”
Click on “Final Exam” to open the module for entering your exam answers. Each
question from Question 1 to Question 40 has its own dialog box into which you
will enter your answers, respectively. You have access to this file now (before
the final exam) to practice these steps. Prior to the final exam, in any of
your practice sessions, make sure that when you leave CANVAS that you do not
leave any residual answers in any of the question dialog boxes. Otherwise,
eventually, we might mark answers to questions that you have not yet seen. When
you have the Final Exam file open, CANVAS saves your responses every few seconds.
I understand, although I have not seen it, that when the exam nears its end,
CANVAS will send you a warning message to “Submit Quiz.” Apparently, at the end
of the exam, if you have not clicked “Submit Quiz,” CANVAS will automatically
do it, after which, you cannot change any of your answers. During your
practicing or even during the final exam, I would not click on “Submit Quiz”
prior to completing the exam. After clicking “Submit Quiz” I do not know if you
can go back and change any of your question answers. If this automatic “Submit
Quiz” fails to work for whatever reason and you continue to work on the exam
after the allotted time, then I will deduct grades for late submission.
The examination is composed of 40
short-answer quantitative questions. There are no qualitative questions.
Each of the 40 questions can and should be answered independently of any other
question. Each question has equal weight in grading. Questions 1 through 40
will be identified as Question 1 through Question 40 in CANVAS, respectively.
While the dialog box for any question will accept anything you submit, we will mark only the final numeric response. Submit no
other materials for grading. There are *no* part marks for any question on the
exam. We will mark no intermediate steps but only the final numeric answer,
which we will mark as right or wrong. In all cases, give the most economically
reasonable answer with the information given. Because the markers will view
your dialog box during marking, there is some latitude for minor answer
differences based on your rounding of intermediate steps. Remember to use at
least 5 decimal places for rates (intermediate calculations and final answer)
and you can round to the cent (penny) for most dollar amounts. For very large
dollar amounts, like, in the millions, I may ask you to round to the dollar.
For each question, I will identify the rounding protocol for you.
I prepared a final
exam for you around the time of the midterm with a format similar to the sample
final exams you can find on the course website. Since that format is unsuitable
for an online final, I broke the questions into component parts and made the
component parts the 40 questions of the current final exam. Despite the common
origin of many of the questions, recall that each of the 40 questions on the
current exam can and should be answered independently. Nonetheless, because the
current final exam has as its origin an exam of similar format to the sample
final exams, these samples remain an invaluable study tool for you.
While most of you are academically and professionally ethical, I would
be foolhardy to have that expectation for *all* students. I will employ
numerous methods to prevent cheating, including monitoring and recording IP
addresses when you sign-in to CANVAS. If I receive multiple CANVAS final exams
from the same IP address, I will mark none of them. So, while you must be
careful about your health and physical safety, you also must do the final exam
at a distance from each and all of your classmates. I leave it to you to ensure
that your IP address is unique. Some planning on your part is required. If, for
example, you live in residence, then you almost surely share an IP address with
classmates who also live in residence. In this case, you might need to find a
new location to do the final exam. Don’t ask me questions about IP addresses, I am not a qualified IT professional. The exam is
designed to be time constrained for *all* students. In this way, no student
will have time to aid fellow students using electronic means.
SURREY-BUS312 Fall 2019
POWERPOINT FILES
(Not Current
Semester! Thanx to Andrew Flostrand)
Sample LECTURE NOTES
(not current semester!!!!)
Chapter
1
Chapter 6:
Calculations
in the Math of Finance #1
Calculations
in the Math of Finance #2
Calculations
in the Math of Finance #3
Calculations
in the Math of Finance #4
Calculations
in the Math of Finance #5
Calculations
in the Math of Finance #6
Calculations
in the Math of Finance #7
Calculations
in the Math of Finance #8
Calculations
in the Math of Finance #9
Calculations in the Math of Finance #10
Calculations
in the Math of Finance #11 PV of a Growing Annuity
Calculations
in the Math of Finance #12 FV if a Growing Annuity
Calculations
in the Math of Finance #13 Canadian Mortgages
Cases Where it is Relatively Simple to Calculate an IRR
Assignment
6 Q3 Annualized HPRR for an Investment
Assignment
6 Q4 Prototypical Retirement Planning Problem
Chapter 8