Suggestions for the Midterm Exam

There will probably be 45 multiple choice questions (worth a total 135 points) plus problem sets worth a total 15 points. The time limit on the exam is 75 minutes. I suggest reviewing Chapters 1-6 and 11-13 in Financial Analysis, plus homework problems, PowerPoint slides, Group Projects 1 & 2, and class discussion to prepare for the exam. Be sure & bring a Scantron (Form 882-ES), calculator & pencil.  There will be a major emphasis on Chapters 4 & 6, especially basic calculations and how to interpret the calculations.

The chapter quizzes on the Wiley site are good review questions for this exam. See also Example Questions on my web page. (The specific coverage and content differs from these old exam questions.

Multiple Choice: under Example Questions: Group 1 questions #11-22, 24, 26-29; Group 2 questions # 1-4, 6-15 cover the same basic materials as the first module.

Workout Problems:  Under Example Questions 2, look at "Other Questions": Group A; Group B I & III (some of the questions we have not gone over & will not be on the midterm).

A makeup exam will be available if you have an excused absence.  However, the format will be different and include both workout problems and short-answer essays.

Examples:

The corporate overview includes:

a. analysis of the industry and business strategy of the company

b. common-size statement, financial ratios, and forecasts

c. detailed accounting analysis

d. a summary of all analytical components

e. all of the above

Du Pont's 1999 net income was (in millions) $7,690; 1999 sales were $26,918. Du Pont's year-end 1999 total assets were $40,777 and 1999 beginning of the year total assets were $38,536. Du Pont's total asset turnover was:

a. 19.4%

b. 66.0%

c. 67.9%

d. 147.3%

    e. Some other amount

Quizzes

I will give occasional 5 point quizzes throughout the semester on specific chapters that we are covering. These are designed to cover the basic material covered that day plus other information from that chapter. I will drop the lowest quiz grade. If a person misses a quiz with an excused absence, he or she can replace a quiz with a short essay (usually 3-5 pages) on a topic related to the class. (See me in advance if you want to use this option.)

Suggestions for the Final

The format will be similar to the midterm: 70 multiple-choice questions (3 points each). The time limit is 2 hours.  The coverage will be the last module. The exam is on earnings magic, rather than the information from the financial analysis book.

I expect to focus primarily on those items we spent the most time on—Slides, Problems, Financial Analysis Project 3, class projects, etc. Note that anything in the book or covered in class is fair game for the final. There will be some questions specifically on the food companies analyzed (I’ll provide all the necessary information).

The earlier test and quizzes should be helpful. See also DEM example questions, other example questions, and Financial Analysis quiz questions on Wiley site (Chapters 7-10)

Final Exams: Section 501 (TTh 12:45): Wednesday, Dec. 10, 8-10 a.m.

Section 501 (TTh 2:20): Tuesday, Dec. 9, 1-3 p.m.

Be sure to bring a Scantron (Form 882-ES), calculator & pencil.