Final Exam

I will send details about the Final Exam about one week before the exam opens.  My expectation is that about 30% of the exam will be concept questions.   The remaining 70% will be calculations.  Of the calculations you will have three big, multi-step problems.  Each of the multi-step problems will be worth between 8-15 points. One multi-step will be a Chapter 16 question using either M&M no-tax theory or M&M with-corporate tax theory of Capital Structure, where you compute the inputs to and WACC of a hypothetical company.  Another multi-step will be a Chapter 17 Dividend Policy question about the payout amount using various payout methods.  The last multi-step will be a three part problem from Chapter 10/23 where you compute the value of a growth or abandonment option as a difference in NPVs.  There will be about 6 other problems involving calculations.   The concept questions will probably be multiple choice, averaging one question per chapter. After using about 35 points for the three multi-step problems, this leaves about 65 points for the other questions and problems.