Math 5621 (369) Financial Mathematics II

(Applied Mathematics of Corporate Finance)


Fall 2009

Instructor – James G. Bridgeman

instructor's web site

syllabus for the course


You should be starting to think about a term-paper topic.  Pick a section of the book not on the syllabus to explore, or a section on the syllabus to explore more deeply than does the text.  Although the paper will not be due until December 14 I will ask you to tell me your topic by October 26 and to submit an outline by Nov. 20.  I will hold you to that topic and that outline unless you give me a very good reason to switch.


Final Exam  Final Exam Solutions  Solutions Spreadsheet  Solutions Figures

Grading Worksheet  Final grades have been posted on the Registrar’s website.

Opportunity Cost of Capital

Be sure to submit the outline for you paper by Nov. 20 (email or hard copy into my mailbox or under my door..).

Cumulative assignments (most recent assignment at top)


Study sections 9A through 9I

Study sections 7G, H, and I and read 7J and 7K for background

Do exercises 16.1, 16.5, 16.6, 16.7, 16.8 and 16.10

Study sections 16A-D and 16G

Do exercises 15.1-15.9, 15.11-15.15, 15.17-15.18, and 15.20-15.21

Read for background 15K-L

Study Section 14C and Sections 15A-15J

Study ch. 13B and do exercises 13.1-13.5

Read ch. 12 and 13A and 13C for background

Do exercises 11.1, 11.3, 11.4, 11.8, and 11.9

Study Chapter 11 sections A, D, E, F and G (read the other sections for background only)

Do exercises 10.1, 10.2, 10.5, 10.6, 10.8

Study Chapter 10, sections A, C, E, and F (read the other sections for background only)

Do exercises 6.2-6.18, 6.21

Study Chapter 6

Do exercises 5.3-5.7, 5.9-5.11, and 5.13-5.14; make sure you understand exercise 5.8 (but no need to prove)

Study Chapter 5 

Read chapters 3 and 4 only for background

Do exercises 14.1 thru 14.5

Study Chapter 14, section B … keep connections with financial analysis statement handout, chapter 2 and chapter 14A in mind.

Study Chapter 7, sections A-E

Study Chapter 14, section A … keep connections with chapter 2 in mind

Do exercises 2.1 thru 2.11

Study Opportunity Cost of Capital (download it just above)

Study Chapter 2, sections C thru H

Read for background Chapter 1 and Chapter 2, sections A and B

Study the financial statement analysis handout, do all Quiz questions, Practice Qu. 4,7,8,9,10 and Challenge Qu. 1

(the quiz solutions are in the handout; the PQ and CQ solutions are here.)