FIN 302 Midterm: Finance 302 Exam 1 Study Guide

• School: University of Miami
• Department: Finance Business Administration
• Course: FIN 302
• Professor: Peterson Rodger

Document Summary

Exam format: 2 pieces of paper (front and back, 9 questions, 1. 875 hours (112. 5 min, formula sheet, calculator, hard, grade is curved. Exam 1 problem types: margin call, interest rate of a perpetuity, retirement account (fv, rate of return on margin, bonds (ear, weird # of days (find ear, pv of an annuity, balloon payments. Partial credit --> show command of problem / intermediate steps (show work and be neat) Formula or calculator (must show keystrokes) (n = x, i/y = ) (for conversions as well) Must come up with a number answer for it. Ex: say you bought 300 shares of stick at per share with a 60% initial margin. The maintenance margin on this account is 30%. How low can the stock price fall before you get a margin call: . 14. N = number of payment periods: always reset to zero b/c calculator saves last number used. I/y = the interest rate per period (year)