FIN3013

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FIN3013

• Lab 1

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Lab Overview

• Lab provides students an opportunity to work
  closely with a lab instructor to practice and
  review problems and concepts introduced in the
  larger Principles of Business Finance classroom
• Lab is 20 of FIN3013 Grade

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Lab Components

• Attendance (25)
• Homework (25)
• Quizzes (25)
• Company Paper (25)

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Lab Policies

• No late homework will be accepted
• No make-up quizzes will be given
• One quiz grade, one homework grade, and one
  attendance grade will be dropped at the end of
  the semester

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Assignment 1

• Goals for this assignment
• Gather historical price data
• Gather historical SP500 data
• Use excel to manipulate gathered data
• Plot a graph
• Write a professional memo reporting results

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Assignment 1

• Choose a company from list provided
• Gather stock price data for the company
• http//finance.yahoo.com
• January 1, 1999-December 31, 2005

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Assignment 1Gathering Stock Price Data

• http//finance.yahoo.com
• Put in tick symbol for your company and press
  go
• Options on left-hand side of screen
• Look under quotes
• Choose historical prices

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Assignment 1Gathering Stock Price Data
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Assignment 1 Gathering Stock Price Data

• Options for time period and frequency
• Monthly data
• January 1, 1999-December 2005
• Push get prices button
• Download data
• download to spreadsheet at the bottom of the
  price table
• Select this option to bring information into an
  excel file.

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Assignment 1Gathering Stock Price Data
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Assignment 1Gathering Stock Price Data
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Assignment 1Gathering SP500 Data

• We want to compare our stock price with the
  market overall
• Use the SP500 as benchmark
• Gather information for SP500
• Use same procedure
• Ticker symbol GSPC

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Assignment 1Manipulate Data

• Data is now in Excel file
• Should have 84 monthly prices for your stock and
  84 monthly closes for SP500
• We will use adjusted close
• Be aware of the datesYou want earliest date
  (January 1999) first

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Assignment 1Plot Graph

• Date on the X axis
• Price of your stock on the primary Y axis
• Value of the SP500 on the secondary Y axis
• Make sure that your graph is properly labeled and
  is easy for the reader to understand.

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Assignment 1Write Memo--Content

• Memo should give reader a brief description of
  graph
• Provide at least one observation/insight from
  your graph
• Observations vary greatly depending on company
• Some things you may want to consider are
• Has the movement of your stock price varied
  greatly from that of the SP500?
• Has the price of your stock increased (or
  decreased) significantly over the past five
  years?
• How volatile has your stock price been,
  especially compared to the SP500?

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Assignment 1Write Memo--Format

• Pointers are given on the lab website
• Memo Format gives pointers on format
• Sample Memo for Lab 1 shows how your memo
  should look
• Be sure to proofread
• Writingclear, concise, easy to follow
• Free of spelling and grammatical errors
• Grade based on presentation as well as content

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Assignment 1

• Assignment 1 is due
• at next weeks lab meeting.