BUS130 Comprehensive EXAM Notes

Description

BUS130 Full exam notes include: Financial Decisions Valuation Basis for financial management Simple Interest Compound Interest Nominal and effective interest rates Annuity Perpetuity Ordinary annuity Interest rate changes Annuity due Deferred annuity Uneven income stream General annuity Principle and interest loans Intrinsic value Value Bond valuation Preference Share Valuation Dividend Valuation No current dividends Alternative approach Rate of return (yield) Descriptive statistics Inferential statistics Process for examining data (DCOVA) Sample Types Random sample Systematic sample Stratified sample Cluster sample Nonprobability sampling Data Sources Measures of central tendency Measures of variation Distribution shape Interquartile Range Five number summary Basic Probability Normal distribution Covariance (cov(X,Y)) Coefficient of correlation (r) Regression analysis Coefficient of determination Assumptions of regression () Residual analysis Measuring autocorrelation: Durbin-Watson statistic Important Facts about finance Transaction Costs Asymmetric information (insufficient info about other party) Lemons problem - adverse selection influencing financial structure Lemons problem in securities market Tools to help solve adverse selection problems Principal-agent problem Tools to solve principal-agent problem Moral hazard influence on financial structure in debt markets Tools to solve moral hazard in debt contracts Asymmetric information in transition and developing countries Credit markets and adverse selection Moral hazard in credit markets (use the fair rate of interest of the least risky project) Venture capital firms