
Q. What do I have to study
for the Midterm?
A. Chapters 2, 3 and 4.
One, definitions from chapters 1, 2, 3, 6 (I am not going
to ask definition questions on Chapter 7).
Two, critical thinking questions from chapters 1, 2, 3, 6 (I am not going
to ask critical thinking questions on Chapter 7)
Three: problems similar to endofchapter problems from chapters 3 (problems
2643), 5 (problems 2956), 6 (problems 114, 15, 16, 17, 18, 21) and
7 (problems 1318 and 20).
Q. What will
the format of the midterm be?
A. One media article with questions related to chapters 2, 3 or 4. There
will be quantitative questions from chapters 3 and 4. Finally, there will
be short questions from all three chapters.
Give us a sample midterm.
A. Look at older exams from MBA 664, as well as MBA 632.
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. 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.
The short quizzes are closed book; you may not bring in any sheets
either.
Q. What do I have to study for the final exam
and what will be its format?
A. Here's what the exam will be like:
Points Assignment 
Subject Matter 
20% 
from the list of questions at http://webpage.pace.edu/pviswanath/class/632/notes/terms.html (the first set of questions under each topic  not the quantitative and conceptual questions) 
15% 
shortanswer questions on Capital Structure, EMH and CAPM 
20% 
A Media article with associated questions on one of the following topics  Capital Markets, Stock Pricing, Bond Pricing and Forecasting Cashflows 
45% 
Approximately four quantitative questions from the following groups:

 Computing expected return, standard deviationn of return, variance of return
 Computing 95% confiidence intervals

 Using the FCF model to comppute the value of the equity of a firm.
 Computing stock price given some combination of information about dividends, ROE, reinvestment rates, etc.

 Problems exploiting the relationship between bond price, coupon rate and YTM.
 Problems testing your understandding of coupon bonds as portfolios of zerocoupon bonds.

 Computing WACC, computing betas for leveraged firms

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?
Ans.
 You can do the problems from the end of each chapter. The answers
can be found on the Web (see Blackboard).
 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.
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 endofchapter problems.

