Dr. P.V. Viswanath



Economics/Finance on the Web
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Frequently Asked Questions, Spring 2011

Toulon/EBS: Managerial Finance


Q. What do I have to study for the Midterm and what will it look like?
A. The midterm will cover Chapters 1 and 29 on Corporate Governance; chapters 2, 3 and 4 from Berk and DeMarzo and Chap 2 from Bodie, Merton and Cleeton (see Blackboard)

  • Questions from the assigned chapters similar to those at the end of the chapters 2, 3 and 4 only; this will count for 70% of the exam.
  • One unit with short-answer queries from a previously given list of questions, from the topics of Financial Markets and Institutions and Corporate Governance only; this will count for 20 percent of the exam
  • There will be a brief media article on the exam itself -- not a take-home question. This will be on corporate governance and will count for 10% of the exam

Q. What will the final exam cover?
Ans. The midterm will be on the material from Chaps Chapters 4, 5, 7, 8, 9, 10 of Berk and DeMarzo.

  • Questions from the assigned chapters similar to those at the end of the chapters.
  • One unit with short-answer queries from a previously given list of questions (on Arbitrage and Time Value of Money, Forecasting Cashflows in Capital Budgeting, Capital Markets, Stock Pricing, Bond pricing).
  • One media article question (on Capital Markets, Stock Pricing or Bond Pricing).

Q. Are the exams open book or closed book?
Ans. The midterm and the final exams are closed book; however, you can bring in one 8.5x11 sheet, which can contain only formulas. I am very strict about this. You may write on both sides of the paper.  However, you may not staple several sheets of paper together.  Going through your notes probably cannot make up for the lack of a proper understanding of the material. If you have anything proscribed on your sheet, I will take away the sheet altogether and I may penalize you, as well.

The short quizzes, if any, will be closed book; you may not bring in any sheets either.

Q. Can I use a calculator during the exams?
Ans: Yes, you may use a calculator during the exams. However, for every problem, you will have to write out the formula that you are using both in symbolic form, as well as with the numbers filled in. If you have done this, you don't have to show your computations. You can simply copy your numerical answer from your calculator. However, if you have not provided the formula in the answer, you may receive no points at all!

Q. Can I do extra work to improve my grade?
Ans. Sorry. I believe that in order to be fair, I have to give every student the same opportunity to do extra work. Obviously, this is not feasible.  However, on occasion I will allow you to resubmit an assignment for grade improvement.

Q. What can I do to check my understanding of the material and to prepare for the exams?

  • You can do the problems from the end of each chapter. The answers to many problems can be found on MyFinanceLab.
  • You can try to answer the questions at the end of media articles.
  • You can read current newspaper and magazine articles on relevant topics and make up your own questions and articles.
  • You can make an appointment to come and talk to me.

Q. What do I have to study from each chapter?
Ans. In each chapter, you should know the definitions and the meanings of key terms, and be able to put them into context. You should also look at the end-of-chapter problems.



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