# 公司金融选择题.doc

Chapter 11、Determining the mix of debt and equity to be used to finance a firm is which type of a decision?A) capital budgetingB) working capitalC) capital structure2、Which one of the following statements concerning partnerships is correct?A) All partners enjoy limited liability if they create a general partnership of equal shares.B) A limited partner actively participates in running the partnership on a daily basis.C) A general partnership terminates whenever one general partner decides to sell her share of the business.D) A general partnership has an unlimited life while a limited partnership has a limited life.3、Which one of the following statements concerning corporations is correct?A) The rules describing how a corporation regulates its own existence are set forth in the bylaws.B) The procedures to be followed for electing corporate directors are included in the articles of incorporation.C) Corporate income is taxed only when the corporate earnings are distributed to shareholders.D) A corporation is the easiest form of business entity to create.4、The goal of financial management is to maximize the current:A) net income per share.B) dividends per share.C) total assets.D) market value per share.5、Which one of the following statements concerning the financial markets is correct?A) Shareholders exchange shares with each other in the primary market.B) The New York Stock Exchange is an auction market.C) Dealer markets have a physical trading floor.D) Stocks traded in auction markets are said to trade over-the-counter.6、Which one of the following provides limited liability for all of its owners?A) sole proprietorshipB) partnership with only general partnersC) partnership with both general and limited partnersD) corporation7、Which one of the following represents a potential agency problem?A) adherence to the Sarbanes-Oxley Act in 2002B) hiring a manager and compensating her with shares of company stockC) paying a management bonus based on the number of employees managedD) paying all company earnings out to shareholders in the form of dividends8、Firms that “went dark“ following the enactment of the Sarbanes-Oxley Act in 2002:A) must still comply with all the terms of that act.B) did not meet the requirements of the act and were involuntarily delisted by the SEC.C) generally did so to avoid the high cost of compliance.D) now trade on NASDAQ where previously the firm s shares were traded on the NYSE.9、Which one of the following is found in the corporate bylaws?A) intended life of the corporationB) the state of residenceC) the number of shares that can be issuedD) the procedures for electing the directors10、Which one of the following statements concerning financial markets is correct?A) The NYSE has the most stringent listing requirements of any U.S. exchange.B) All dealer markets require a physical trading floor.C) Corporations initially sell shares of stock in the secondary market, which is an auction market.D) All private sales of stock must first be registered with the SEC.Chapter 21、Use these financial statements to answer 1~8 questions.What is the amount of the change in net working capital?A) -$800B) $100C) $16,700D) $8,9002、What is the net capital spending for 2011?A) $700B) $7,100C) $8,500D) $2,4003、What is the total amount of shareholders equity for 2011?A) $20,000B) $14,000C) $11,400D) $25,4004、What are the earnings per share for 2011 if the par value per share is $1?A) $0.11B) $0.15C) $0.08D) $0.065、How much was paid out to shareholders in the form of dividends during 2011?A) $1,600B) $5,100C) $1,700D) $5,2006、What is the amount of the operating cash flow?A) -$2,100B) $1,600C) $11,900D) $8,7007、What is the cash flow from assets?A) $3,800B) $4,200C) $4,900D) $5,1008、What is the cash flow to creditors?A) $2,500B) -$100C) $5,100D) $6009、Which one of the following assets is most liquid?A) inventoryB) equipmentC) landD) accounts receivable10、A firm has $2,100 in net income, a tax rate of 35 percent, and interest expense of $700. What is EBIT?A) $3,535B) $4,100C) $6,700D) $3,931Chapter 31、Use the following financial statements to answer 1~10 questions.What is the total debt ratio?A) 0.65B) 0.47C) 0.52D) 0.612、How many days on average does it take the firm to sell its inventory?A) 77.19 daysB) 84.59 daysC) 103.95 daysD) 96.07 days3、What is the cash coverage ratio?A) 4.08B) 5.92C) 8.41D) 7.474、What is the profit margin?A) 6.67%B) 7.08%C) 7.29%D) 7.47%5、What is the price-sales ratio if the price per share is $8 and the par value per share is $1?A) 1.48B) 1.91C) 2.11D) 2.366、What is the total asset turnover?A) 1.06B) 1.15C) 1.21D) 0.877、If the long-term debt had a balance of $50,800 last year, then long-term debt is a _____ of cash this year.A) sourceB) use8、If the accounts receivable account had a balance of $12,500 last year, then the accounts receivable is a _____ of cash this year.A) sourceB) use9、What is the price-earnings ratio if the par value per share is $1 and the market price per share is $7.50?A) 18.01B) 25.34C) 22.16D) 19.9710、What is the common-size ratio of the net fixed assets?A) 0.56B) 0.48C) 0.62D) 0.67Chapter 41、Use the following financial statements to answer 1~5 questions.Assume this firm is operating at 84 percent of capacity. What is the capital intensity ratio at full capacity sales?A) 0.62B) 0.91C) 0.79D) 0.842、Assume this firm has a constant dividend payout ratio and a constant debt-equity ratio. What is the maximum growth rate the firm can achieve without any external equity financing? Assume the firm is currently operating at full capacity.A) 27.7%B) 25.4%C) 28.2%D) 31.0%3、Assume this firm is currently operating at 96 percent capacity. What is the required increase in fixed assets if sales are projected to increase by 12 percent?A) $2,006B) $4,929C) $3,294D) $1,5074、Assume this firm has a constant dividend payout ratio and a projected sales increase of 3 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need?A) -$2,511B) $4,263C) $1,919D) -$5,5925、Assume the profit margin and dividend payout ratio are expected to remain constant. Sales are expected to increase by 6 percent next year. What is the projected total retained earnings at the end of next year?A) $27,122B) $28,832C) $30,333D) $34,6256、The plowback ratio is best defined as:A) the profit margin minus the dividend payout ratio.B) annual dividends paid divided by net income.C) the change in retained earnings from one year to the next.D) one minus the dividend payout ratio.7、The internal rate of growth assumes which one of the following?A) 100 percent retention ratioB) constant debt-equity ratioC) additional debt financing but not equity financingD) no new external financing of any kind8、You want to compile pro forma statements for your business. Which one of the following account values should you estimate first?A) cashB) salesC) taxesD) external financing need9、The capital intensity ratio should be computed based on which one of the following sales figures?A) current year salesB) pro forma year salesC) full-capacity salesD) average of current year and pro forma year sales10、A negative external financing need indicates that the firm:A) will need to issue both debt and equity if it wants to achieve its desired level of growth.B) can grow at the expected rate without obtaining any additional external financing.C) will need to decrease in size during the pro forma period.D) will be unable to achieve its maximum rate of growth during the pro forma period.Chapter 51、Gloria wants to have $20,000 in her investment account ten years from now. Currently, she has nothing saved. How much would she have to deposit today to reach her goal if this is the only amount she invests? She expects to earn 8.5 percent, compounded annually. How much must she deposit today?A) $11,520.74B) $9,684.28C) $8,845.71D) $14,705.882、Four years ago, your baseball card collection was worth $1,200. You have not added any cards to the collection over the past four years, but the collection has still increased in value. Today, it is worth $1,500. What rate of return are you earning on this collection?A) 5.74 percentB) 6.23 percentC) 4.98 percentD) 5.25 percent3、Amy invested $1,500 in a stock that has returned 12 percent, compounded annually. Today, that investment is worth $3,600. How long has Amy owned this stock?A) 5.92 yearsB) 6.54 yearsC) 7.18 yearsD) 7.73 years4、When your parents got married 38 years ago, they purchased a house for $31,900. They have taken good care of the house but have not invested any more money into it. Today, their house is valued at $149,900. What rate of return have your parents earned on their home?A) 3.92 percentB) 4.16 percentC) 4.58 percentD) 5.39 percent5、Which one of the following statements is correct, assuming all else is constant?A) The discount rate increases as the present value increases.B) The future value decreases as the present value increases.C) The time period increases as the interest rate increases.D) The present value increases as the discount rate decreases.6、You invested $5,000 at 6 percent simple interest for five years. How much total interest will you earn over these five years?A) $300.00B) $742.97C) $1,500.00D) $1,691.137、Scott and Todd are twins. Scott invests $50 a month for ten years starting on his 20th birthday. Todd invests $50 a month for ten years starting on his 25th birthday. Both Scott and Todd earn 7 percent. Which one of the following statements is correct based on this information? Assume they never withdraw any money from their accounts.A) Both Scott and Todd will have the same amount saved when they turn 60 if the 7 percent is simple interest.B) Scott and Todd will earn the same amount of interest during the year of their 40th birthday if the 7 percent is simple interest.C) Todd will have more money saved than Scott when they are 70 years old if the 7 percent is compounded annually.D) Scott and Todd will earn the same amount of interest during the year of their 50th birthday if the 7 percent is compounded annually.8、Flo deposited $5,000 into her retirement account today. How much money will she have 40 years from now if this is the only deposit she makes and she earns an average of 13 percent, compounded annually?A) $597,264B) $648,306C) $663,908D) $671,9099、You have been offered a business opportunity that will pay you $57,000 in six years if you invest $25,000 today. What is the expected rate of return on this investment?A) 14.72 percentB) 15.36 percentC) 15.78 percentD) 16.22 percent10、According to the Rule of 72, how long will it take you to double your money if you can earn a 6 percent rate of return?A) 6 yearsB) 7.2 yearsC) 9 yearsD) 12 yearsChapter 61、What is the interest rate per period multiplied by the number of periods per year called?A) effective annual yieldB) compounded effective yieldC) periodic rateD) annual percentage rate2、Your employer has offered to contribute $50 a week to your retirement savings account. Assume you work for this employer for another 15 years and earn an average return of 8.5 percent, compounded weekly, on your savings. What is this offer worth to you today?A) $39,000B) $42,315C) $22,032D) $81,3093、This morning, you purchased some stereo equipment costing $2,659. You charged this purchase on your credit card. This card charges 16.9 percent interest, compounded monthly. How long will it take you to pay off this purchase if this is the only charge on your credit card and you make monthly payments of $40?A) 15.13 yearsB) 12.95 yearsC) 14.82 yearsD) 16.40 years4、Every month for the past eight years you have invested $50 in a mutual fund. Today, your account is valued at $6,419. What rate of return have you been earning on this investment?A) 7.03 percentB) 5.86 percentC) 6.29 percentD) 6.54 percent5、You just purchased a home and agreed to a mortgage payment of $1,264 a month for 30 years at 7.5 percent interest, compounded monthly. How much interest will you pay over the life of this mortgage assuming that you make all payments as agreed?A) $181,267B) $274,266C) $387,280D) $455,0406、You are going to receive $6,000 at the end of each quarter for the next five years. What is the net present value of these payments at a discount rate of 7 percent, compounded quarterly?A) $63,564B) $100,517C) $102,276D) $103,0127、What is the effective annual rate of 10.75 percent compounded continuously?A) 11.04 percentB) 11.19 percentC) 11.30 percentD) 11.35 percent8、A preferred stock pays annual dividends of $1.80 per share. What is this stock worth to you today if you desire a 14.5 percent return on this investment?A) $11.87B) $12.41C) $25.98D) $26.109、A project will produce cash flows of $2,400, $2,800, and $4,100 a year for the next three years, respectively. What is the net value of these cash flows today if the applicable discount rate is 12 percent?A) $7,778.80B) $8,056.16C) $7,293.30D) $8,303.5710、Sue plans to save $100 at the beginning of each month for the next five years. Scott plans to save $100 at the end of each month for the next five years. Assume that both Sue and Scott earn 4.5 percent on their savings. Which one of the following statements is correct given this information?A) Sue will have $6,721.68 at the end of the five years.B) Sue will have $25.17 more in her account than Scott will have in his account at the end of the five years.C) Scott will have $8.67 more in his account than Sue will have in her account after the first three years.D) Both Sue and Scott will have the same amount of money in their accounts after five years.Chapter 71、Christine earned 7.5 percent on her investments last year. Her real rate of return was 4.6 percent. What was the inflation rate for the year?A) 2.62 percentB) 2.77 percentC) 3.06 percentD) 3.49 percent2、A zero coupon bond has a yield to maturity of 9.26 percent and 8 years until it fully matures. What is the current price of this bond if the face value is $1,000? Assume semiannual compounding.A) $458.80B) $471.20C) $484.73D) $503.723、Which one of the following bonds has the most interest rate risk?A) 6%, 20 yearB) 6%, 10 yearC) 0%, 10 yearD) 0%, 20 year4、Of the following ratings, which one is the lowest investment-quality bond rating by Standard IRR = 12.28 percentB) yes; IRR = 11.79 percentC) no; IRR = 12.28 percentD) no; IRR = 11.79 percent3、Should the proposed project be accepted based on its payback period? Why or why not?A) yes; PB = 2.49 yearsB) yes; PB = 2.51 yearsC) no; PB = 2.49 yearsD) no; PB = 2.51 years4、What is the profitability index of the proposed project?A) 0.97B) 0.99C) 1.01D) 1.035、The Even Cut Co. is considering opening a new plant to produce lawn mowers. The initial cost of the project is $6 million. This cost will be depreciated straight-line to a zero book value over the 15-year life of the project. The net income of the project is expected to be $137,000 a year for the first four years and $538,000 for years