КАБІНЕТ МІНІСТРІВ УКРАЇНИ
НАЦІОНАЛЬНИЙ УНІВЕРСИТЕТ БІОРЕСУРСІВ ТА
ПРИРОДОКОРИСТУВАННЯ УКРАЇНИ
ЕКОНОМІЧНИЙ ФАКУЛЬТЕТ
Кафедра фінансів
“ЗАТВЕРДЖУЮ”
Декан економічного факультету
________________ Ш.І. Ібатуллін
“____” ________________ 2009 р.
НАВЧАЛЬНО-МЕТОДИЧНИЙ КОМПЛЕКС
дисципліни
“FINANCES”
ОКР «Магістр»
зі спеціальності 8.000007 Адміністративний менеджмент
КИЇВ-2009
ЗМІСТ
1.
Робоча програма навчальної дисципліни
3
2.
Програма навчальної дисципліни
6
3.
Протокол погодження робочої програми навчальної дисципліни з
дисциплінами спеціальності
14
4.
Структурно-логічна схема вивчення навчальної дисципліни
15
5.
Календарний тематичний план викладання дисципліни
16
6.
Критерії оцінки знань студентів
17
7.
Індивідуальні завдання для самостійної роботи студентів
18
8.
Пакети тестових завдань для визначення рівня знань студентів
20
9.
Конспекти лекцій
26
10.
Навчально-методична література з дисципліни
29
11.
Методичні вказівки та завдання для студентів заочної форми
навчання (не передбачено)
2
КАБІНЕТ МІНІСТРІВ УКРАЇНИ
НАЦІОНАЛЬНИЙ УНІВЕРСИТЕТ БІОРЕСУРСІВ ТА
ПРИРОДОКОРИСТУВАННЯ УКРАЇНИ
ЕКОНОМІЧНИЙ ФАКУЛЬТЕТ
Кафедра фінансів
“ЗАТВЕРДЖУЮ”
Декан економічного факультету
______________ Ш.І. Ібатуллін
“____” ________________ 2009 р.
РОБОЧА ПРОГРАМА
навчальної дисципліни
“FINANCES”
ОКР «Магістр»
зі спеціальності 8.000007 Адміністративний менеджмент
КИЇВ-2009
3
Робочу програму навчальної дисципліни „FINANCES” складено асистентом
кафедри фінансів Яремчук М. В. на основі освітньо-професійної програми
підготовки магістрів напрямку 0502 «Менеджмент»
Робочу програму навчальної дисципліни „FINANCES” розглянуто та схвалено на
засіданні кафедри фінансів 10 червня 2010 року протокол № 11
Завідувач кафедри фінансів,
доктор економічних наук, професор
Мартиненко В. П.
Робочу програму навчальної дисципліни „FINANCES” розглянуто та
схвалено на засіданні науково-методичної ради економічного факультету від
15.06. 2010 р., протокол №4
Голова науково-методичної ради,
доктор економічних наук, доцент
О.А. Ковтун
Укладач: Яремчук Марія Валеріївна, асистент кафедри фінансів
(прізвище, ім’я, по батькові, науковий ступінь, вчене звання, посада)
4
ПОЯСНЮВАЛЬНА ЗАПИСКА
1.Місце і роль дисципліни в системі підготовки фахівців
In simple terms, finance is concerned with decisions about money, or more
appropriately cash flows. Finance decisions deal with how money is raised and used
by businesses, governments, and individuals. Because the economy—both national
and worldwide—consists of customers, employees, and investors, sound financial
management contributes to the well-being of both individuals and the general
population.
This Program proposes the list of recommended topics for the course “Finances” and
also problems for practical studies.
2. Мета та завдання вивчення дисципліни
The objectives of the cource are:
 Introduction of the principles and major concepts of finances;
 Studying of the main types of financial operations and financial markets;
 Mastering practical scills of performing financial calculations and analysis.
3.Вимоги та критерії щодо оцінки знань з дисципліни
After studying the course student must:
1.
Know:
The definitions and theoretical basis of finances and financial markets.
2. Perform:
Basic financial calculations and analysis
4. Форми та методи контролю знань з дисципліни
Контроль знань з дисципліни здійснюється згідно з «Положенням НАУ про
проміжну атестацію студентів Національного аграрного університету» від 28
липня 2004 року та «Положенням про екзамени та заліки у Національному
аграрному університеті» від 22 листопада 2004 року.
Формами контролю знань студентів є поточний контроль, проміжна атестація
та підсумковий контроль.
Поточний контроль здійснюється під час проведення семінарських занять і
має на меті перевірку рівня підготовки студента у вивченні поточного матеріалу.
Поточний контроль може здійснюватись шляхом усного та письмового
опитування, розв’язку тестових завдань, підготовки доповідей та рефератів,
виконання контрольних робіт студентами.
Проміжна атестація для студентів очної форми навчання має на меті
визначити сукупність знань студента з дисципліни по завершенню певного етапу
вивчення дисципліни і проводиться у формі контрольних завдань та тестування
по кількох темах у вигляді модулів.
Підсумковий контроль проводиться в кінці семестру для визначення обсягу
знань студента по закінченню курсу і здійснюється у формі іспиту.
5
СТУКТУРА ПРОГРАМИ НАВЧАЛЬНОЇ ДИСЦИПЛІНИ
“FINANCES”
Курс:
(підготовка бакалаврів)
Форма навчання:
(очна (денна))
Кількість кредитів: 3
Змістових модулів: 3
Загальна кількість
годин: 72
Тижневих годин: 1,5
Напрям,
спеціальність,
освітньокваліфікаційний
рівень
Адміністративний
менеджмент
8.000007
магістр
Характеристика
навчальної
дисципліни
Нормативна
Рік підготовки: 2.
Семестр: 3.
Аудиторна робота:
•12 годин лекційні заняття
•24 годин семінарські
заняття
Самостійна робота
студента
36 годин
Вид підсумкового
контролю:
іспит
6
МОДУЛЬНА СТРУКТУРА НАВЧАЛЬНОЇ ДИСЦИПЛІНИ
“FINANCES”
Змістовий модуль
№
з/п
1
2
Назва
«Basics of Financеs»
«Private Finances»
Тема
№
з/п
1.1.
1.2.
1.3.
2.1.
2.2.
2.3.
2.4
3.1.
3
«Financial Markets»
3.2.
3.3.
3.4
Назва
AN OVERVIEW OF FINANCES
THE COST OF MONEY (INTEREST
RATES)
VALUATION CONCEPTS
RISK AND RATES OF RETURN
MONEY MARKETS
CONSUMER FINANCE OPERATIONS
FINANCIAL ASSETS
(INSTRUMENTS)
MONETARY THEORY AND POLICY
(GOVERNMENT AND FINANCES)
COMMERCIAL BANK OPERATIONS
MUTUAL FUND OPERATIONS
THRIFT OPERATIONS
7
ЗМІСТ НАВЧАЛЬНОЇ ДИСЦИПЛІНИ
„FINANCES”
ТЕОРЕТИЧНІ ЗАНЯТТЯ
ЗМІСТОВИЙ МОДУЛЬ І.
«Basics of Financеs»
ТЕМА 1. AN OVERVIEW OF FINANCES
The main questions of overview lection are: What are Finances?
The levels of Finances, Functions, Objectives
Financial Decisions
ТЕМА 2. THE COST OF MONEY (INTEREST RATES)
Role of the financial markets
Interest rates as indicator of the cost of money
Basic concepts associated with interest rates
Factors that affect rates and methods for forecasting them
ТЕМА 3. VALUATION CONCEPTS
TVM concepts and their usage
TVM techniques to explain how the values of assets are determined
Valuation process
The factors that affect a firm’s value
ЗМІСТОВИЙ МОДУЛЬ ІІ.
«Private Finances»
ТЕМА 4. RISK AND RATES OF RETURN
Risk and its relation to investments
Procedures used to measure risk
The relationship between risk and return
Diversifiable risk
Nondiversifiable risk
ТЕМА 5. MONEY MARKETS
Definition and role of the Money Markets
The types of investors at the Money Markets
The transactions at the Money Markets
ТЕМА 6. CONSUMER FINANCE OPERATIONS
The role of individuals in finances
Doing business as individual
Investment and financing opportunities
ТЕМА 7. FINANCIAL ASSETS (INSTRUMENTS)
8
Concept of financial markets
Financial instruments that are traded in these markets
Difference between real assets and financial assets
Assets valuation
ЗМІСТОВИЙ МОДУЛЬ ІІІ.
«Financial Markets»
ТЕМА 8. MONETARY THEORY AND POLICY (GOVERNMENT AND
FINANCES)
The main functions of State finances
The role and aims of state finances
Instruments of the regulation of financial market
ТЕМА 9. COMMERCIAL BANK OPERATIONS
Commercial banks and their functioning
Saving operations
Loaning operations
Banking system of Ukraine
ТЕМА 10. MUTUAL FUND OPERATIONS
Mutual funds and their functioning
Mutual funds operations
Mutual funds in Ukraine
ТЕМА 11. THRIFT OPERATIONS
Thrift operations and their features
Thrift operations in Ukraine
Perspektives and problems of the development of the thrift market
ТЕМИ СЕМІНАРСЬКИХ ЗАНЯТЬ
„FINANCES”
ЗМІСТОВИЙ МОДУЛЬ І.
«Basics of Financеs»
Theme 1
1. How has the study of finances management changed since the beginning of the twentieth
century?
2. Why is it important for business students to study finances?
3. How can knowledge of financial decision making by corporate financial managers help
you make personal financial decisions?
4. Under what circumstances do you think the government will impose greater regulations
on financial markets and businesses?
5. When does the government tend to favor deregulation and take a more laissez-faire
attitude toward business?
9
Theme 2
1. Explain why the return associated with an investment includes both the income paid by
the issuer and the change in value associated with the investment.
2. Suppose interest rates on residential mortgages of equal risk were 8 percent in California
and 10 percent in New York. Could this differential persist? What forces might tend to
equalize rates? Would differentials in borrowing costs for businesses of equal risk located
in California and New York be more or less likely to exist than differentials in residential
mortgage rates? Would differentials in the cost of money for New York and California
firms be more likely to exist if the firms being compared were very large or very small?
What are the implications of the trend for financial institutions to become large mega
banking organizations and to engage in nationwide branching?
3. Which fluctuate more, long-term or short-term interest rates? Why?
Theme 3
1. Describe how you determine the value of an asset, whether it is a real asset or a
financial asset.
2. Two investors are evaluating IBM’s stock for possible purchase. They agree on the
expected value of D1 and on the expected future dividend growth rate. They also agree on
the riskiness of the stock. One investor normally holds stocks for two years, and the other
normally holds stocks for 10 years. On the basis of the type of analysis presented in this
chapter, they should both be willing to pay the same price for IBM’s stock. True or false?
Explain.
3. A bond that pays interest forever and has no maturity date is a perpetual bond. In what
respect is a perpetual bond similar to a zero growth common stock, and to a share of
preferred stock?
4. The rate of return that you would earn if you bought a bond and held it to its maturity
date is called the bond’s yield to maturity (YTM). If interest rates in the economy rise after
a bond has been issued, what will happen to the bond’s price and to its YTM? Does the
length of time to maturity affect the extent to which a given change in interest rates will
affect the bond’s price?
ЗМІСТОВИЙ МОДУЛЬ ІІ.
«Financial Management of Assets»
Theme 4
1. The probability distribution of a less risky expected return is more peaked than that of a
riskier return. What shape would the probability distribution have for
(a) completely certain returns and
(b) completely uncertain returns?
2. Security A has an expected return of 7 percent, a standard deviation of expected returns
of 35 percent, a correlation coefficient of 20.3 with the market, and a beta coefficient of
20.5. Security B has an expected return of 12 percent, a standard deviation of returns of 10
percent, a correlation coefficient of 0.7 with the market, and a beta coefficient of 1.0.
Which security is riskier? Why?
Theme 5
1. Explain how the Treasury uses the primary market to obtain adequate funding.
10
2. How can investors using the primary T-bill market be assured that their bid will be
accepted?
3. Why do large corporations typically make competitive bids rather than noncompetitive
bids for T-bills?
4. Describe the activity in the secondary T-bill market. How can this degree of activity
benefit investors in T-bills?
5. Who issues commercial paper?
Theme 6
1. Is the cost of funds obtained by finance companies very sensitive to market interest rate
movements? Explain.
2. How are small and medium-sized finance companies able to issue commercial paper? 3.
Why do some well-known finance companies directly place their commercial paper?
4. Explain why some finance companies are associated with automobile manufacturers.
Why do some of these finance companies offer below-marketrates on loans?
5. Describe the major uses of funds by finance companies.
6. Explain how finance companies benefit from offering consumers a credit card.
7. Explain how finance companies provide financing through leasing.
8. What was the historical difference between consumer finance companies and sales
finance companies?
Theme 7
1. What effect do you think each of the following items should have on the interest rate that
a firm must pay on a new issue of long-term debt? Indicate whether each factor would tend
to raise, lower, or have an indeterminate effect on the interest rate, and then explain why.
a. The firm uses bonds rather than a term loan.
b. The firm uses debentures rather than first mortgage bonds.
c. The firm makes its bonds convertible into common stock.
2. Should preferred stock be classified as debt or equity? Does it matter if the classification
is being made by the firm’s
(a) management,
(b) creditors,
(c) equity investors?
3. Define each of the following terms:
a. Term loan; bond
b. Mortgage bond
c. Debenture; subordinated debenture
d. Convertible bond; income bond; putable bond; indexed (purchasing power) bond
e. Indenture; restrictive covenant
f. Trustee
g. Call provision; sinking fund
ЗМІСТОВИЙ МОДУЛЬ ІІІ.
«Financial Management of Capital»
Theme 8
1. Briefly summarize the pure Keynesian philosophy and identify the key variable
11
considered.
2. Briefly summarize the Monetarist approach.
3. Why might the Fed have difficulty in controlling the economy in the manner desired? Be
specific.
4. What is the recognition lag? Explain why it occurs.
5. When does the implementation lag occur?
6. Assume that the Fed’s primary goal is to cure inflation. How can it use open market
operations to achieve its goal? What is a possible adverse effect of this action by the Fed
(even if it achieves its goal)?
7. Why do financial market participants closely monitor money supply movements?
Theme 9
1. What are four major sources of funds for banks?
2. How does a money market deposit account differ from other bank sources of funds?
3. How does the yield on a repurchase agreement diff er from a loan in the federal funds
market? Why?
4. Describe the process of borrowing at the discount w indow. What rate is charged, and
who sets it?
5. Why do banks invest in securities, even though loans typically generate a higher return?
6. Explain the most common uses of funds for commercial banks, and describe typical offbalance sheet activities for commercial banks
Theme 10
1. How do open-end mutual funds differ from closed end mutual funds?
2. Explain why mutual funds are attractive to small investors.
3. Explain the difference between load and no-load mutual funds.
4. How can mutual funds generate returns for their shareholders?
5. Support or refute the following statement: Investors can avoid all types of risk by
purchasing a mutual fund that contains only Treasury bonds.
6. Describe the ideal mutual fund for investors who wish to generate tax-free income and
also maintain a low degree of interest rate risk.
7. Explain how changing foreign currency values can affect the performance of
international mutual funds.
Theme 11
1. How did the creation of money market deposit accounts (MMDAs) influence SIs’ overall
cost of funds?
2. Why was the 1981 change allowing SIs across the nation to offer NOW accounts
considered so important?
3. Discuss the entrance of SIs into consumer and commercial lending. What are the
potential risks and rewards of this strategy?
4. Describe the liquidity and credit risk of SIs and discuss how each is managed.
5. What is an adjustable-rate mortgage? Discuss potential advantages such mortgages offer
an SI.
12
ОРІЄНТОВНА СТРУКТУРА ЗАЛІКОВОГО КРЕДИТУ КУРСУ
Очна форма навчання (денна форма)
ОКР «Магістр» спеціальність «Фінанси»
№
Назва теми
Всього
Кількість годин
п/п
лекції семінарські
самостійна
робота
Модуль 1. «Basics of Financеs»
1.
AN OVERVIEW OF FINANCES
8
2
2
4
2.
THE COST OF MONEY (INTEREST RATES)
7
1
3
4
3.
VALUATION CONCEPTS
7
1
3
4
Всього по модулю (24 год. – 1 кр. ECTS)
24
4
8
12
Модуль 2. «Private Finances»
4.
RISK AND RATES OF RETURN
6
1
2
3
5.
MONEY MARKETS
6
1
2
3
6.
CONSUMER FINANCE OPERATIONS
6
1
2
3
7.
FINANCIAL ASSETS (INSTRUMENTS)
6
1
2
3
Всього по модулю (24 год. – 1 кр. ECTS)
24
4
8
12
Модуль 3. «Financial Markets»
8.
MONETARY THEORY AND POLICY (GOVERNMENT AND
6
1
2
3
FINANCES)
9.
COMMERCIAL BANK OPERATIONS
6
1
2
3
10.
MUTUAL FUND OPERATIONS
6
1
2
3
11.
THRIFT OPERATIONS
6
1
2
3
Всього по модулю (24 год. – 1 кр. ECTS)
24
4
8
12
Всього годин
72
12
24
36
13
ПРОТОКОЛ ПОГОДЖЕННЯ
робочої програми навчальної дисципліни
„FINANCES”
з дисциплінами спеціальності
Дисципліна та її
розділи, що
передують
вивченню даної
дисципліни
ПІБ, науковий ступінь
та вчене звання НПП,
що забезпечує
попередню дисципліну
Менеджмент
Підпис
Наступна
дисципліна та її
розділи, які
використовують
матеріали даної
дисципліни
Фінанси
підприємств
Гроші і кредит
Фінансовий
менеджмент
Бухгалтерський
облік
Інвестування
Голова науково-методичної ради
економічного факультету
ПІБ, науковий ступінь
та вчене звання НПП,
що забезпечує
наступну дисципліну
Підпис
Ш. І. Ібатуллін
14
СТРУКТУРНО-ЛОГІЧНА СХЕМА
вивчення дисципліни
„FINANCES”
Попередні дисципліни та їх розділи, що використовуються в даній дисципліні
Менеджмент
Гроші і кредит
Бухгалтерський
облік
Дисципліна „FINANCES”
Наступні дисципліни та їх розділи, що використовують матеріали даної дисципліни
Фінанси
підприємств
Фінансовий
менеджмент
Інвестування
15
НАЦІОНАЛЬНИЙ УНІВЕРСИТЕТ БІОРЕСУРСІВ ТА ПРИРОДОКОРИСТУВАННЯ
УКРАЇНИ
ННІ Бізнесу
Кафедра фінансів
05.01.03
КАЛЕНДАРНИЙ ТЕМАТИЧНИЙ ПЛАН
дисципліни „FINANCES”
для підготовки магістрів напряму 0502 „Менеджмент”
із спеціальності спеціальності 8.000007 Адміністративний менеджмент
очна (денна) форма навчання
на І семестр 2009-20010 навчального року
„ЗАТВЕРДЖУЮ”
Декан економічного факультету
____________ Ш.І.Ібатуллін
„____” ________________ 2009 р.
Курс
_1_
Лекцій
_12 год.
Семінарські занять
_24 год.
Самостійна робота студентів _36 год.
Всього
_72__ год.
Кредитів
_3
Поточний
контроль знань
ВИДИ ТА ЗМІСТ ЗАНЯТЬ
Тиждень
Лекції
1, 2
3, 4
5, 6
7, 8
9, 10
11, 12
год.
Семінарські
год.
Самостійна робота
год.
заняття
Семінар
4
Підготовка до семінару
6
Семінар
4
Підготовка до семінару Підготовка до 1-го 6
Контроль
модуля (письмова контрольна робота, тестові
засвоєння 1-го
завдання)
модуля
Література
№ модуля Бали
ТЕМА 1. AN OVERVIEW OF FINANCES
ТЕМА 2. THE COST OF MONEY (INTEREST RATES)
ТЕМА 3. VALUATION CONCEPTS ТЕМА
2
2
4. RISK AND RATES OF RETURN ТЕМА 5. Money
Markets
ТЕМА 6. CONSUMER FINANCE OPERATIONS ТЕМА 7.
FINANCIAL ASSETS (INSTRUMENTS)
2
Семінар
4
Підготовка до семінару
2
4
Підготовка до семінару Підготовка до
контролю щодо засвоєння 2-го модуля
(письмова робота та тести)
ТЕМА 8. MONETARY THEORY AND POLICY
(GOVERNMENT
AND
FINANCES)
ТЕМА
9.
COMMERCIAL BANK OPERATIONS
ТЕМА 10. MUTUAL FUND OPERATIONS
ТЕМА 11. THRIFT OPERATIONS
2
Семінар
Контроль
засвоєння 2-го
модуля
Семінар
Семінар
Контроль
засвоєння 3-го
модуля
4 Підготовка до контролю щодо засвоєння 3-го 6
Підручник,
модуля (письмова контрольна робота, тести)
методичні вказівки
ННП, що викладає дисципліну ______________
(підпис)
2
4
Прізвище, ініціали
Підготовка до семінару
Підручник
Підручник
1
1
6
Підручник,
методичні вказівки
6
Підручник,
методичні вказівки
6
Підручник,
методичні вказівки
1
2
2
2
Завідувач кафедри фінансів __________________
(підпис)
Результати перевірки календарно-тематичного плану ______________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
16
КРИТЕРІЇ ОЦІНКИ ЗНАНЬ СТУДЕНТІВ
Критерії оцінки виконання навчальних завдань є одним з основних способів
перевірки знань, умінь і навичок студентів з дисципліни “FINANCES”. При оцінці
завдань за основу слід брати повноту і правильність їх виконання. Необхідно
враховувати такі вміння і навички студентів:
 диференціювати, інтегрувати та уніфікувати отримані знання;
 викладати матеріал логічно й послідовно;
 користуватися додатковою літературою.
Рейтингові оцінки зі змістових модулів
Термін
навчання
(тижні)
1-4
5-10
11-16
Всього
Номер
змістового
модуля
1
2
3
3
Навчальне
навантаження,
год.
24
24
24
72
Кредити
ECTS
1
1
1
3
Рейтингова оцінка змістового модуля
Мінімальна
60
60
60
60
Розрахункова
100
100
100
100
Rдис = Rнр = 0,3Rат
Rнр = (0,7 (R1зм×1 + R2зм×1)) : 2 + Rдр - Rштр
Співвідношення між національними та ECTS оцінками і рейтингом із
дисципліни
Оцінка
національна
1
Відмінно
Оцінка
ECTS
2
А
Добре
В
С
Задовільно
D
E
Незадовільно
FX
F
Визначення ECTS
3
ВІДМІННО – відмінне
виконання лише з незначною
кількістю помилок
ДУЖЕ ДОБРЕ – вище
середнього рівня з кількома
помилками
ДОБРЕ – в загальному
правильна робота з певною
кількістю грубих помилок
ЗАДОВІЛЬНО – непогано, але зі
значною кількістю недоліків
ДОСТАТНЬО – виконання
задовольняє мінімальні критерії
НЕЗАДОВІЛЬНО – потрібно
працювати перед тим, як
отримати залік (позитивну
оцінку)
НЕЗАДОВІЛЬНО – необхідна
серйозна подальша робота
Рейтинг з дисципліни, бали
4
90-100
82-89
75-81
66-74
60-65
35-59
01-39
17
ІНДИВІДУАЛЬНІ ЗАВДАННЯ
ДЛЯ САМОСТІЙНОЇ РОБОТИ СТУДЕНТІВ
SELF-TEST PROBLEMS
Theme 2
1. A bond issued by Zephyr Balloons currently has a market price equal to $1,080. The
bond pays $120 interest annually.
a. If you buy the bond and its price does not change during the year, what is the total dollar
return that you would earn if you sell the bond at the end of the year? Compute the yield
for the year.
b. If the price of the bond increases to $1,100 during the year, what is the total dollar return
that you would earn if you sell the bond at the end of the year? Compute the yield for the
year.
c. If the price of the bond decreases to $1,000 during the year, what is the total dollar return
that you would earn if you sell the bond at the end of the year? Compute the yield for the
year.
Theme 3
1. Suppose Ford Motor Company sold an issue of bonds with a 10-year maturity, a $1,000
par value, a 10 percent coupon rate, and semiannual interest payments.
a. Two years after the bonds were issued, the going rate of interest on bonds such as these
fell to 6 percent. At what price would the bonds sell?
b. Suppose that, two years after the initial offering, the going interest rate had risen to 12
percent. At what price would the bonds sell?
Theme 4
1. Suppose you won the Florida lottery and were offered a choice of either $500,000 in
cash or a gamble in which you would get $1 million if a head were flipped but zero if a tail
came up.
a. What is the expected value of the gamble?
b. Would you take the sure $500,000 or the gamble?
c. If you choose the sure $500,000, are you a risk averter or a risk seeker?
2. Suppose you hold a diversified portfolio consisting of a $7,500 investment in each of 20
different common stocks. The portfolio beta is equal to 1.12. You have decided to sell one
of the stocks in your portfolio with a beta equal to 1.0 for $7,500 and to use the proceeds to
buy another stock for your portfolio. Assume that the new stock’s beta is equal to 1.75.
Calculate your portfolio’s new beta.
Theme 5
1. Nancy Cotton bought 400 shares of NeTalk for $15 per share. One year later, Nancy sold
the stock for $21 per share, just after she received a $0.90 cash dividend from the company.
a. What is the total dollar return earned by Nancy for the year?
b. What is the rate of return earned by Nancy? c. Separate the rate of return computed in
part (b) into the dividend yield and the capital gain. In other words, compute the dividend
yield and the capital gain that Nancy earned by holding NeTalk for one year.
18
2. Janis Rafferty purchased 100 shares of Gold Depot common stock at the beginning of
January for $25. Janis received a $1.25 dividend payment from the company at the end of
December. At that time, the stock was selling for $27.50 per share.
a. Compute the dollar return earned by Janis during the year.
b. Compute the rate of return earned by Janis.
c. What was the dividend yield and the capital gain generated by Gold Depot during the
year?
d. Compute the rate of return that Janis would have earned if she had purchased 500 shares
instead of 100 shares of Gold Depot stock at the beginning of the year
Theme 6
1. The earnings, dividends, and stock price of Talukdar Technologies, Inc., are expected to
grow at a rate of 7 percent per year in the future. Talukdar’s common stock sells for $23
per share, its last dividend was $2.00, and the company will pay a dividend of $2.14 at the
end of the current year.
a. Using the discounted cash flow approach, what is this company’s cost of retained
earnings?
b. If the firm’s beta is 1.6, the risk-free rate is 9 percent, and the average return on the
market is 13 percent, what will be the firm’s cost of equity using the CAPM approach?
c. If the firm’s bonds earn a return of 12 percent, what will ks be, as calculated using the
bond-yield-plus-risk-premium approach? (Hint: Use the midpoint of the risk premium
range discussed in the text.)
d. Based on the results of parts (a) through (c), what would you estimate Talukdar’s cost of
retained earnings to be?
Theme 7
1. The Swift Company is planning to finance an expansion. The principal executives of the
company agree that an industrial company such as theirs should finance growth by issuing
common stock rather than by taking on additional debt. Because they believe that the
current price of Swift’s common stock does not reflect its true worth, however, they have
decided to sell convertible bonds. Each convertible bond has a face value equal to $1,000
and can be converted into 25 shares of common stock.
a. What would be the minimum price of the stock that would make it beneficial for
bondholders to convert their bonds? Ignore the effects of taxes or other costs.
b. What would be the benefits of including a call provision with these bonds?
Theme 8
1. In 2007 the Sirmans Company paid dividends totaling $3,600,000 on net income of
$10.8 million. The year 2007 was a normal one for the company, and for the past 10 years,
earnings have grown at a constant rate of 10 percent. In 2008, earnings are expected to
jump to $14.4 million, and the firm expects to have profitable investment opportunities of
$8.4 million. It is predicted that Sirmans will not be able to maintain the 2008 level of
earnings growth—the high 2008 earnings level is attributable to an exceptionally profitable
new product line introduced that year—and the company will return to its previous 10
percent growth rate. Sirmans’s target debt/assets ratio is 40 percent.
a. Calculate Sirmans’s total dividends for 2008 if it follows each of the following policies:
(1) Its 2008 dividend payment is set to force dividends to grow at the long-run growth rate
in earnings. (2) It continues the 2007 dividend payout ratio.
19
b. Which of the preceding policies would you recommend? Restrict your choices to the
ones listed, but justify your answer.
c. Assume that investors expect Sirmans to pay total dividends of $9,000,000 in 2008 and
to have the dividend grow at 10 percent after 2008. The total market value of the stock is
$180 million. What is the company’s cost of equity?
Theme 9
1. Complete the balance sheet and sales information in the table that follows for Isberg
Industries using the following financial data:Debt ratio: 50%, Quick ratio: 0.803, Total
assets turnover: 1.53, Days sales outstanding: 36 days, Gross profit margin on sales: (Sales
2 Cost of goods sold)/Sales 5 25%, Inventory turnover ratio: 53, Sales $300,000, Longterm debt $ 60,000, Total liabilities and equity $ 97,500
2. Hindelang Corporation has $1,312,500 in current assets and $525,000 in current
liabilities. Its initial inventory level is $375,000, and it will raise funds through additional
notes payable and use them to increase inventory. How much can Hindelang’s short-term
debt (notes payable) increase without pushing its current ratio below 2.0? What will be the
firm’s quick ratio after Hindelang has raised the maximum amount of short-term funds?
3. Coastal Packaging’s ROE last year was only 3 percent, but its management has
developed a new operating plan designed to improve things. The new plan calls for a total
debt ratio of 60 percent, which will result in interest charges of $300 per year.Management
projects an EBIT of $1,000 on sales of $10,000, and it expects to have a total assets
turnover ratio of 2.0. Under these conditions, the average tax rate will be 30 percent. If the
changes are made, what return on equity will Coastal earn? What is the ROA?
Theme 10
1. The Weaver Watch Company manufactures a line of ladies’ watches that is sold through
discount houses. Each watch is sold for $25; the fixed costs are $140,000 for 30,000
watches or less; variable costs are $15 per watch.
a. What is the firm’s gain or loss at sales of 8,000 watches? Of 18,000 watches?
b. What is the breakeven point? Illustrate your answer with a graph.
c. What is Weaver’s degree of operating leverage at sales of 8,000 units? Of 18,000 units?
ПРИКЛАДИ ТИПОВИХ ТЕСТОВИХ ЗАВДАНЬ ДЛЯ ВИЗНАЧЕННЯ РІВНЯ
ЗНАНЬ СТУДЕНТІВ
Theme 1
1.
A bank pays 6% interest per year, compounded quarterly. How much will $100
grow to after two years?
a. $112.36
b. $112.55
c. $112.65
d. $112.75
2. The two principal components of total risk are
a. business risk and market risk.
b. diversifiable risk and market risk.
c. purchasing power and interest rate risk.
d. foreign exchange risk and market risk.
20
3. Direct trading between institutions is the _____ market.
a. primary
b. secondary
c. third
d. fourth
Theme 2
1. An electronic system often used for institutional trading is
a. NMS.
b. Instinet.
c. OTC.
d. Nasdaq.
2. The _____ was once known as, and is still sometimes called, the curb exchange.
a. NYSE
b. AMEX
c. CBOE
d. CBOT
3. _____ is the electronic system enabling NYSE member firms to send orders directly
to specialists on the floor.
a. SuperDot
b. Instinet
c. NMS
d. Open Outcry
4. What is the internal rate of return on an initial outlay is $10,000 that generates cash
flows of $2,000 at the end of year one, $5,000 at the end of year 2, and $8000 at the end
of year 3?
a.
15% b. 10% c. 23% d. 19% e. 16%
5. Which of the following is false with respect to the discounted payback period
method?
a. It ignores the time value of money.
b. It is based off an arbitrary cutoff period.
c. It ignores the riskiness of cash flows.
d. It values distant cash flows and current cash flows as equivalent.
e. It ignores payoff after the cutoff date.
Theme 3
1. The _____ originally involved purchasing International Postal Reply Coupons in one
country and redeeming them in another.
a. Crash of 1929
b. New Deal
c. Ponzi scheme
d. Harlem Railway scandal
2. To find details about a specific bond, one would refer to a legal document known as
the
a. debenture.
21
b. trust certificate.
c. financial newspaper.
d. indenture.
3. A city wishing to build a new toll bridge across a river would most likely issue a(n)
a. mortgage.
b. assessment bond.
c. revenue bond.
d. sinking fund.
4. Which is correct?
a. A long forward contract is very similar to a short forward contract.
b. A call option creates an obligation to the buyer of the contract.
c. Derivatives are very volatile
d. Buying a put can be considered a bet that the market is going up.
e. More than one of the above is true.
5. Alice Pharr is 30 years old. She wants to set aside the same amount of money each
year. She plans on retiring in 30 years. She plans on living until she is 100 years old and
believes she will earn 8% per year. How much must she set aside to be able to withdraw
$120,000 a year throughout her retirement? (assume she plans on dying penniless, and
ignore taxes)
a. 15,671 b. 12,959 c. 21,098 d. $16,000 e. 14.107
Theme 4
1. Interest only, sinking fund, and balloon are
a. types of repayment.
b. types of maturities.
c. investment strategies.
d. types of stock.
2. A $1,000 par bond with a closing price of 107 in the financial press has a dollar price
of
a. $107.00.
b. $1,070.00.
c. $1,700.00.
d. $10,700.
3. A popular two-sided, one-page document on a specific company is the
a. Stock Guide.
b. Stock Report.
c. Earning Forecaster.
d. Bond Survey.
4. Which of the following has not been a current event story in recent weeks?
a. The Fed has raised interest rates and the economy appears to be slowing.
b. The Mafia has been linked to fraudulent trading.
c. A US judge has ordered the breakup of Microsoft.
d. The NYSE and Nasdaq have agreed to work together to have 24 hour a day trading in
the US.
e. US Airways and United have been in merger talks.
Theme 5
22
1. A person owns $10,000 face value of XYZ bonds. These bonds have a conversion
price of $45. The bond owner may exchange them for _____ shares of stock.
a. 22.222
b. 45.000
c. 222.222
d. 450.00
2. For risk reduction purposes, correlations that are _____ are most desirable.
a. positive
b. negative
c. zero
d. near 0.50
3. Which of the following is most correct?
a. Options are usually exercised early.
b. Options are never exercised early.
c. Valuable options are usually sold, rather than exercised.
d. The option writer decides when and if to exercise.
4. What is the intrinsic value of a call option on a stock if the following facts are true
and it is expiration in 3 minutes?
Strike Price = 40 Stock price = 45 Rf= 8%
a. 4.42 b. 0 c. –100% d. $5.00 e. -$5
Theme 6
1. Writing deep-in-the-money options to buy or sell stock is called
a. index arbitrage.
b. improving on the market.
c. double dipping.
d. a capture the dividend strategy.
2. Five years ago, the DCA Corporation issued 20-year bonds with a coupon rate of
12%. If the investors’ required rate of return (IRR) on these bonds is currently 9%, the
bonds will be priced:
a. below par. b. above par. c. above and below par. d. at par. e. as a perpetuity.
3. Which of the following is FALSE concerning capital budgeting techniques?
a. The payback method ignores the time value of money.
b. The Net Present Value method is the preferred method for investment decisions.
c. The Internal Rate of Return method is best for mutually exclusive projects.
d. The profitability index is frequently used in the presence of rationing.
e. The payback method places no emphasis on cash flows after the cutoff period.
4. What the Net Present Value (NPV) of the investment?
a. 14.44 b. -6.36 c. 6.44 d. 10 e. none of the above
Theme 7
1. Suppose the following information is true:
ABC stock price=$37.00 HIJ stock price =$36.50 DEF $39.00
None of the stocks pay dividends. All quotes are ASK prices.
2. June call options with a strike price of 40 are quoted at:
ABC $3.25 HIJ $4.00 DEF $2.75
3. Assuming perfect markets, which of the stocks has the highest volatility?
23
a. ABC
b. HIJ
c. DEF
d. It is impossible to tell from this information
e. ABC and DEF each have the same variance
4. Consider a project with the following cash flows and assume that the correct discount
rate is 10%.
cost c1 c2 c3 c4 c5
8 2 3 4 5 6
Theme 8
1. All of the following are justifiable economic motivations for acquisitions by publicly
held firms EXCEPT:
a. Undervaluation due to poor management
b. Unrealized tax losses
c. Diversifying into new unrelated businesses
d. Achieving production economies of scale
e. Marketing synergies
2. Which of the following is false?
a. The definition and measurement of the market portfolio is a controversial topic.
b. Several anomalies have led people to question the validity of the CAPM.
c. The small-firm effect suggests that over the past 70 years, small firms have on
average outperformed CAPM estimates.
d .CAPM assumes that all investors hold diversified portfolios.
e. Fama and French in their 1992 paper conclude that beta is the only measure of risk
that is needed to predict future returns.
3. What is the implied discount rate of a perpetuity that pays $5 and has a present value
of $60? (Choose the closest answer)
a. 12% b. 20% c. 8.33% d. 10.30% e. 5.22%
4. The "Rule of 72" says that if you earn 6% per year, your money will double in ___
years.
a. 12 b. 6 c. 8
d. 9
e. 10
Theme 9
1. Consider a project that has an initial investment and positive future cash flows. As the
cost of capital is decreased ____________.
a. IRR increases while NPV remains constant.
b. IRR and NPV both decrease.
c. IRR increases while NPV remains the same.
d. IRR remains the same, while NPV increases.
e. IRR decreases and NPV remains constant.
2. Consider the following information
Stock
beta
Number of shares
price
Hot Dog Hut
1.1
500
8
24
Taco Tent
2.1
600
12
Freddy’s Fajitas
.6
400
4
The risk free rate is 5% and the expected return on the market is 15%.
3. What is the expected return on your portfolio?
a. 15% b. 23% c. 8.9% d. 18% e. None of the above
4. Suppose you want to raise $1,000,000. How many zero coupon bonds would you
have to sell if investors require an 8% return and the bonds will mature in 10 years?
a. 2,159 b. 1,756 c. 463 d. 655 e. none of the above
Theme 10
1. What is the price of a stock who JUST PAID a 2.00 dividend if the company’s beta is
1.2 and they are expected to grow at 3% if the expected market return is 12% and the
risk free rate is 5%?
a. $19.80 b. $23.45 c. $16.15 d. $21.34 e. none of the above.
2. What is the price of a zero coupon bond that matures in 5 years if the required return
is 6%?
a. $1000 b. $747 c. $816 d. $656 e. none of the above
3. Which of the following is true?
a. Inflation leads to lower bond prices
b. Rising interest rates tend to slow the economy.
c. Maximizing Shareholder wealth is the goal of the corporation.
d. Investors in corporations have limited liability.
e. all of the above
4. You invested $1,000 ten years ago in Mamsco Industries stock. If your MAMSCO
stock is worth $1,629 today, what is your implied rate of return?
a. 9.2% b. 10.0% c. 3.5% d. 8.2% e. 5.0%
Theme 11
1. The buyer of a ___________ has the obligation to purchase an asset at a specified
price on some future date with gains and losses recognized daily.
a. put option
b. call option
c. forward contract
d. futures contract
e. swap contract
2. Pearsall Sails is financed entirely by common stock which is priced to offer a 15
percent expected return. If the company repurchases 25 percent of the common stock
and substitutes an equal value of debt yielding 6 percent, what is the expected return on
the common stock after the refinancing? (assume no taxes)
a. 12.75 percent.
b. 13.50 percent.
c. 18.00 percent.
d. 17.00 percent
e. None of the above.
3. In event study methodology, which of the following is true?
25
a. the event data is called day 0, regardless of when it occurs
b. market adjustments are made to correct for market wide movements.
c. a slow period of reaction is suggestive on less than perfect semi-strong form
efficiency
d. CAR stands for Cumulative Abnormal Returns
e. all of the above
4. Which of the following is false with regards to using the WACC in capital budgeting
decisions?
a. Each project should be evaluated using a discount rate that is appropriate for its
riskiness.
b. The WACC is calculated by multiplying the weights of the firm’s various securities
by the cost of that security and then adding up the products.
c. It will cause the firm no problems if the project in question has the same average
riskiness as the firms other assets.
d. It may cause the firm to reject high risk positive NPV projects.
e. It will likely cause the firm to pass up low risk positive NPV investments.
КОНСПЕКТ ЛЕКЦІЙ
ТЕМА 1. AN OVERVIEW OF FINANCES
In simple terms, finance is concerned with decisions about money, or more
appropriately cash flows. Finance decisions deal with how money is raised and used by
businesses, governments, and individuals. We will show you that to make rational
financial decisions you must understand three general, yet reasonable, concepts:
(1) everything else equal, more value is preferred to less; (2) everything else equal, the
sooner funds are received, the more valuable they are; and (3) less risky assets are more
valuable (preferred to) than riskier assets.
We will show that a firm that practices sound financial management can provide
better products to its customers at lower prices, pay higher salaries to its employees, and
still provide greater returns to investors who put up the funds needed to form and
operate the business. Because the economy—both national and worldwide—consists of
customers, employees, and investors, sound financial management contributes to the
well-being of both individuals and the general population. We will also show you how
the concepts presented in this book can be applied to make informed decisions relating
to personal finance.
This lection provides an overview of finance. After you finish it, you should have a
reasonably good idea of how finance knowledge is used in the business world. You
should also have a better understanding of some of the forces that will affect finance in
the future.
ТЕМА 2. THE COST OF MONEY (INTEREST RATES)
We stated that the primary role of the financial markets is to help bring together
borrowers and lenders by facilitating the flow of funds from those who have surplus
26
funds (investors) to those who need funds in excess of their current incomes
(borrowers).1 In a free economy such as that of the United States, the excess funds of
lenders are allocated to borrowers in the financial markets through a pricing system that
is based on the supply of, and demand for, funds. This system is represented by interest
rates, or the cost of money, such that those borrowers who are willing to pay the rates
that prevail in the financial markets are able to use funds provided by others. This
chapter describes the basic concepts associated with interest rates, including factors that
affect rates and methods for forecasting them
ТЕМА 3. VALUATION CONCEPTS
The TVM concepts are used by managers and investors to determine the worth of
any asset whose value is derived from future cash flows, including such assets as real
estate, factories, machinery, oil wells, coal mines, stocks, and bonds. In this lection, we
will use TVM techniques to explain how the values of assets are determined. The
material presented here is important to investors who want to determine the values of
their investments. Knowledge of valuation is equally important to financial managers,
because all important corporate decisions should be analyzed in terms of how they will
affect the firm’s value. Thus, it is critical that we understand the valuation process,
because it allows us to determine what affects the value of the firm. In this lection, we
begin presenting the concepts that will help you understand the factors that affect a
firm’s value
ТЕМА 4. RISK AND RATES OF RETURN
In this lection we define the term risk more precisely in terms of how it relates to
investments, we examine procedures used to measure risk, and we discuss the
relationship between risk and return. Both investors and financial managers should
understand these concepts and use them when considering investment decisions,
whether the decisions concern financial assets or real assets. We will demonstrate that
each investment—each stock, bond, or physical asset—is associated with two types of
risk: diversifiable risk and nondiversifiable risk. The sum of these two components is
the investment’s total risk. Diversifiable risk is not important to rational, informed
investors, because they will eliminate its effects by diversifying it away. The really
significant risk is nondiversifiable risk; this risk is bad in the sense that you cannot
eliminate it, and if you invest in anything other than riskless assets, such as short-term
Treasury bills, you will be exposed to it. In the balance of the lection we will describe
these risk concepts and consider how risk enters into the investment decision-making
process
ТЕМА 5: MONEY MARKETS
Money markets are used to facilitate the transfer of short-term funds from individuals,
corporations, or governments with excess funds to those with deficient funds. Even
investors who focus on long-term securities tend to maintain some money market
securities for liquidity. The specific objectives of this chapter are to: provide a
background on the most popular money market securities, explain how money markets
are used by institutional investors, explain the valuation and risk of money market
securities, and explain how money markets have become globally integrated.
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ТЕМА 6: CONSUMER FINANCE OPERATIONS
Finance companies provide short- and intermediate-term credit to consumers and small
businesses. Although other financial institutions provide this service, only finance
companies specialize in it. Many finance companies operate with a single office, while
others have hundreds of offices across the country and even in foreign countries.
Consumer finance operations can be conducted by an independent finance company or a
unit (subsidiary) of a financial conglomerate. The specific objectives of this lection are
to: identify the main sources and uses of finance company funds, describe how finance
companies are exposed to various forms of risk, identify the factors that determine the
values of finance companies, and explain how finance companies interact with other
financial institutions.
ТЕМА 7. FINANCIAL ASSETS (INSTRUMENTS)
Lection introduces the concept of financial markets, which is where financial instruments
such as stocks and bonds are traded, and explains how these markets operate. Before
delving into the topic of financial markets, however, we describe some of the instruments
that are traded in these markets. Some of the financial assets that are described in this
chapter probably are familiar to you—for example, corporate stocks, government bonds,
money market funds, and certificates of deposit; others might be new to you—for example,
convertible bonds, futures, and swaps. Many more financial assets exist than we can
describe here; we will describe some of the more popular instruments.
Before describing individual financial assets, we must differentiate between real assets
and financial assets, the two general categories into which we classify assets in the business
world. Although any asset generally is regarded as something that provides value to its
owner, a significant difference exists between how value is provided by a real asset and by
a financial asset. A real asset sometimes is called a physical asset because it typically is a
tangible (that is, physically observable) item, such as a computer, a building, or an
inventory item. On the other hand, a financial asset is intangible, because it represents an
expectation, or promise, that future cash flows will be paid to the owner of such an asset.
ТЕМА 8: MONETARY THEORY AND POLICY (GOVERNMENT AND
FINANCES)
The lection discusses the Fed and how it controls the money supply, describes the wellknown theories about monetary policy, explain the tradeoffs involved in monetary
policy, describe how financial market participants monitor and forecast the Fed’s
policies, and explains how monetary and fiscal policies are related. The specific
objectives of this lection are: How does the Fed’s monetary policy affect economic
conditions? Describe the economic tradeoff faced by the Fed in achieving its economic
goals. What is a criticism of a loose-money policy? When does the Fed use a loosemoney policy, and when does it use a tight-money policy?
ТЕМА 9: COMMERCIAL BANK OPERATIONS
Measured by total assets, commercial banks are the most important financial
intermediary. The specific objectives of this lektion are to: describe the most common
sources of funds for commercial banks, explain the most common uses of funds for
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commercial banks, and describe typical off-balance sheet activities
ТЕМА 10: MUTUAL FUND OPERATIONS
A mutual fund is an investment company that sells shares and uses the proceeds to
manage a portfolio of securities. Like mutual funds, commercial banks and stock owned
savings institutions sell shares, yet proceeds received by mutual funds are used in a
different way. The specific objectives of this chapter are to: explain how characteristics
vary among mutual funds, describe the various types of stock and bond mutual funds,
and describe the characteristics of money market funds.
ТЕМА 11: THRIFT OPERATIONS
The term thrift institution (or savings institution) is normally used to refer to a
depository institution that specializes in mortgage lending. Some thrift operations are
independent financial institutions, while others are units (subsidiaries) of financial
conglomerates. The specific objectives of this chapter are to: identify the key sources
and uses of funds for savings institutions, describe the exposure of savings institutions
to various types of risk, explain the valuation of a savings institutions, and describe the
savings institution crisis and the actions taken to resolve the crisis
НАВЧАЛЬНО-МЕТОДИЧНА ЛІТЕРАТУРА З ДИСЦИПЛІНИ
1. Бернстайн Л.А. Анализ финансовой отчетности: теория, практика и
интерпретация / Скачкова О.В. и др. (пер. англ). – М.: Финансы и статистика,
2006. – 624 с.
2. Василик О.Д. Теорія фінансів. – К.: НІОС. – 2001. – 416 с.
3. Герчикова И.Н. Менеджмент. – М.: ЮНИТИ, 1997. – 501 с.
4. Коласс Бернар. Управление финансовой деятельностью предприятия.
Проблемы, концепции, методы. – М.: Финансы, ЮНИТИ, 2000. – 576с.
5. Нікбахт Е., Гроппеллі А. Фінанси. К.: Вік; Глобус, 1992. – 383 с.
6. Финансы/ Дробозина Л.А., Поляк Г. Б., Константинова Ю.Н. и др. – М.:
Финансы, ЮНИТИ,1999. – 527 с.
7. Финансы / Родионова В.М., Вавилов ю.Я., Гочаренко Л.И. и др. – М.:
Финансы и статистика, 1995. – 432с.
8. Brigham/Houston. Blueprints for Brigham/Houston's Fundamentals of Financial
Management, 10th
9. Brigham/Houston. Study Guide for Brigham/Houston's Fundamentals of Financial
Management, 10th
10. Mayo. Basic Finance: An Introduction to Financial Institutions, Investments and
Management
11. Besley/Brigham. Principles of Finance
12. Burton/Nesiba/Lombra. An Introduction to Financial Markets and Institutions
13. Madura. Financial Markets and Institutions
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