Using Hamada's Equation to lever and Unlever Beta to use in computing cost of equity in CAPM to compute the cost of capital; this is especially important if you have an industry beta but the firm or project will use a different debt-equity ratio than that of the industry

Views: 4302
Elinda Kiss

calculation of the realized return on a stock
compound realized return
historical returns
dividend yield
capital gains yield

Views: 3273
Elinda Kiss

using the MACRS method to calculate depreciation; how does that change the free cash flows and NPV vs. using the Straight Line method of depreciation

Views: 3277
Elinda Kiss

how to calculate coupon rate on a bond
examples using excel and financial calculator

Views: 20046
Elinda Kiss

Bond default risk; bond credit ratings; determinants of credit ratings; yield spreads of corporate and municipal bonds over Treasuries

Views: 1854
Elinda Kiss

calculation of cost of debt (after taxes), cost of common equity and using them in the WACC equation

Views: 993
Elinda Kiss

what are the cash flows that are relevant to the capital budgeting decision?

Views: 1073
Elinda Kiss

Future Value of an Annuity -- calculation in excel
Future Value of an Ordinary Annuity

Views: 1106
Elinda Kiss

what are the relevant cash flows for a project?
what are the operating cash flows
What are the free cash flows?
How do you treat end of project life cash flows?

Views: 2180
Elinda Kiss

what are the determinants of interest rates? What influences interest rate levels?

Views: 1508
Elinda Kiss

Sensitivity analysis measures the effect of changes in one variable on the project’s NPV.

Views: 889
Elinda Kiss

calculation of Standard Deviation and Variance by hand and by using functions in Excel; distinction of standard deviation of a sample and standard deviation of a population

Views: 1276
Elinda Kiss

Time Value of Money; calculation of Number of Periods

Views: 428
Elinda Kiss

how to calculate Yield to Maturity of a Coupon paying bond
How to calculate Yield to Call of a Coupon paying bond that is callable

Views: 4086
Elinda Kiss

Correlation between two or more stocks

Views: 326
Elinda Kiss

Calculation of the NPV of a proposed project
How do project cash flows change if there is inflation? What is the impact of inflation on project NPV?

Views: 10375
Elinda Kiss

Bank Balance Sheet
cash
securities
loans
deposits
borrowing
Fed Funds Purchased
Fed Funds Sold

Views: 45
Elinda Kiss

we have calculated cost of capital for a firm, but we need to also calculate the cost of capital for a project if the project is in a new line of business which is different from the industry in which the firm had been operating

Views: 200
Elinda Kiss

calculation of a bank's duration gap with more than one asset and more than one liability. calculation of duration of the assets of a bank. calculation of the duration of the liabilities.
impact of a relative change in interest rates on the market value of the equity.

Views: 6667
Elinda Kiss

if sell an asset before it is fully depreciated, how does that affect project's end of life cash flows and free cash flows?

Views: 417
Elinda Kiss

determining the prediction interval for a return calculation when the returns are normally distributed

Views: 406
Elinda Kiss

contrasting independent risk and common (Systematic) risk
firm specific risk vs. risk that affect all stock in the market

Views: 373
Elinda Kiss

Deposit Insurance
BMGT445
BUFN772
Robert H Smith School of Business
Risk-based deposit insurance
FDIC

Views: 19
Elinda Kiss

how do we calculate free cash flow
what are operating cash flows
how is net working capital treated in the capital budgeting analysis? what is net working capital?

Views: 1895
Elinda Kiss

Price risk is the concern that rising yield (interest rate) will cause the value of a bond to fall. The longer duration bond (longer maturity and lower coupon rate) will have more price risk than the shorter duration bond.
Reinvestment rate risk is the concern that yield will fall, and future CFs will have to be reinvested at lower rates.

Views: 798
Elinda Kiss

when compound interest more frequently than once a year, the future value is higher; look at the effect of compounding interest daily

Views: 725
Elinda Kiss

Capital Budgeting, using straight line depreciation to compute NPV and IRR

Views: 1389
Elinda Kiss

WACCs for real companies
Enterprise value
Market Risk Premium

Views: 284
Elinda Kiss

when combine stocks in a portfolio, can diversify away the unique firm specific risk and be left with systematic, common market risk

Views: 374
Elinda Kiss

Market risk and the Market Portfolio BMGT345

Views: 254
Elinda Kiss

Systematic Risk, Portfolio Return, Beta, CAPM, portfolio weights, index funds, VFINX, portfolio beta

Views: 112
Elinda Kiss

Diversification
Model Allocation Portfolios
Risk and Return
Risk Tolerance

Views: 148
Elinda Kiss

Present Value of Stream of Uneven Cash Flows
NPV function
PV
BMGT345

Views: 28
Elinda Kiss

Risks, banks, financial institutions, interest rate risk, refinancing risk, reinvestment risk, market risk, credit risk, technology risk, operational risk, , off-balance sheet risk, sovereign risk, liquidity risk, insolvency risk, risk of changing regula

Views: 33
Elinda Kiss

Municipal bond; return after taxes; tax exempt bond

Views: 856
Elinda Kiss

Discounted Free Cash Flow model connection to capital budgeting
Free cash flow is the sum of the free cash flows from the firm’s current and future investments, so enterprise value is the sum of the present value of existing projects and the NPV of future new ones. NPV of any investment represents its contribution to the firm’s enterprise value.

Views: 549
Elinda Kiss

Interest Rates; Yield Curve; Wall Street Journal Markets Data Bond Rates page

Views: 577
Elinda Kiss

introduction to EMBA 758i Corporate Finance, Professor Kiss and other finance professors in the Online EMBA program at University of Maryland, Robert H Smith School of Business

Views: 48
Elinda Kiss

Duration
Duration Definition
Duration Calculation
Modified Duration

Views: 67
Elinda Kiss

how calculate payment on amortizing loan; how calculate amount of principal to be paid still; how calculate interest portion of loan

Views: 307
Elinda Kiss

calculation of Present Value, Future Value, Number of Periods, Payment, Rate, and Net Present Value on a Series of Cash flows, using excel

Views: 391
Elinda Kiss

present value of a single future payment and present value of an ordinary annuity calculation in excel

Views: 165
Elinda Kiss

key features of bonds
bond terminology
A bond is A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond.

Views: 267
Elinda Kiss

Basel III
leverage ratio
capital ratio
counter cyclical buffer
liquidity coverage ratio

Views: 266
Elinda Kiss