Math 5621 (369) Financial Mathematics II

(Applied Mathematics of Corporate Finance)


Spring 2010

Instructor – James G. Bridgeman

instructor's web site

syllabus for the course  

Final exam solutions       solution worksheet


Grading Worksheet    Course grades are posted on the registrar’s website


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 May 3 I will ask you to tell me your topic by March 15 and to submit an outline by April 12.  I will hold you to that topic and that outline unless you give me a very good reason to switch.

Opportunity Cost of Capital

Cumulative assignments (most recent assignment at top)


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.)