公司理财选择.doc

。第一章1.An most important job of the financial manager is to _.A. raise fundsB. prepare financial statementsC. create valueD. pay dividends2.Debt and equity securities are _ on the value of the firm.A. contingent claimsB. a burdenC. an enhancementD. fixed claims3.The decision regarding which fixed assets to buy is called the _ decision.A. financingB. working capitalC. capital structureD. capital budgeting4.A business owned by a single person is a _.A. sole proprietorshipB. partnershipC. small companyD. independent contractor5.Corporations have advantages over proprietorships and partnerships because of the _.A. tax free statusB. separation of ownership from managementC. unlimited liabilityD. reduced reporting requirements6.The primary goal of the corporation is maximization of _.A. profitsB. sales growthC. goodwillD. shareholder wealth7.Because management goals may conflict with shareholder goals, _ are said to exist.A. synergiesB. agency problemsC. growth opportunitiesD. contingent claims8.The New York Stock Exchange is an example of a secondary market which functions as a(n) _ market.A. over-the-counterB. dealerC. continuousD. auction9.When a security is first offered to the public, it is said to be trading in the _ market. Later, it trades in the _ market.A. primary; secondaryB. secondary; primaryC. over-the-counter; auctionD. dealer; auction答案：1、C 2、A 3、D 4、A 5、B 6、D 7、B 8、D 9、A第二章1.The Apricot Company in 2010 had notes payable of $1,200, accounts payable of $2,400, and long-term debt of $3,000. The corresponding entries for 2011 are $1,600, $2,000, and $2,800. For assets, Apricot had in 2010 $800 in cash, $400 in marketable securities, and $1,800 of inventory. The corresponding entries for 2011 are $500, $300, and $2,000. Accounts receivable at the end of 2010 were $900 and $800 at the end of 2011. Apricots net plant and equipment was $6,000 in 2010 and $8,000 in 2011. Construct Apricot Companys balance sheet for 2010 and 2011. What is total owners equity for 2011?A. $3,300B. $5,200C. $8,400D. $11,6002.Continuing the previous problem, Apricot Company had sales of $1,000 during 2011 cost of goods sold was $400, depreciation was $100, and paid $160 of interest. The tax rate is 35% and all taxes are paid currently. What is Apricots net income for the year?A. $119B. $340C. $325D. $2213.Continuing the previous problem, during 2011 Apricot sold $2,400 worth of stock and used the entire proceeds to buy fixed assets. There was no new long-term borrowing, and dividends of $120 were paid. Based on this information and the financial statements in the two previous problems construct the firms statement of financial cash flow. What is the cash flow of the firm?A. $(1,319)B. $621C. $321D. $(1,919)4.In 2011 Adventure Technology had net sales of $3,200, cost of goods sold of $2,048, depreciation expense of $77, interest expense of $74, net income of $275, and paid dividends of $110. The firms balance sheet is shown below. For 2011, what is the quick ratio?Adventure Technology Balance SheetDecember 31 ($ thousands) AssetsLiabilities and Owners Equity2010201120102011Cash and mktbl sec$60$49Accts payable$350$384Accts receivable406448Notes payable138108Inventory600640Accruals3030Total current assets$1,066$1,137Total current liabilities$518$522Long-term debt838813Total liabilities$1,356$1,335Fixed assetsCommon stock150150Gross fixed assets1,1301,280Paid in capital200200Less accumulated depreciation307384Accumulated retained earnings183348Net fixed assets$823$896Total owners equity$533$698Total assets$1,889$2,033Total liabilities and owners equity$1,889$2,033A. 0.90B. 0.95C. 2.06D. 2.185.Continuing the previous problem, what is Adventure Technologys inventory turnover for 2011?A. 3.30B. 5.16C. 5.00D. 3.206.Continuing the previous problem, what is Adventure Technologys debt ratio for 2011?A. 0.40B. 0.26C. 0.66D. 0.427.Continuing the previous problem, what is Adventure Technologys return on equity for 2011?A. 0.45B. 0.18C. 0.39D. 0.148.Continuing with Adventure Technology, create a 2011 statement of cash flow. What is the cash flow from operating activities?A. $304B. $352C. $236D. $2759.Continuing with Adventure Technologys 2011 statement of cash flow. What is the cash flow from investing activities?A. $150B. $(73)C. $73D. $(150)10.Continuing with Adventure Technologys 2011 statement of cash flow. What is the cash flow from financing activities?A. $(11)B. $(110)C. $(165)D. $(55)答案：1、B 2、D 3、A 4、B 5、A 6、C 7、A 8、A 9、D 10、C第十章1.The expected return on a portfolio is computed as a _ of the individual security expected returns. A. arithmetic averageB. weighted averageC. geometric averageD. simple average2.The standard deviation of a portfolio is almost always less than a weighted average of the standard deviations of the individual securities; this effect is known as _.A. coinsuranceB. diversificationC. systematic riskD. hedging3.The slope of the SML is equal to the _.A. market risk premiumB. risk free rateC. betaD. market return4.To an individual forming a diversified portfolio, only _ risk is important.A. total riskB. diversifiable riskC. firm specificD. systematic5.Calculate the covariance and correlation between the returns for assets X and Y using the following historical returns?ReturnsYearXY12345.15.04-.09.08.09.18-.03-.10.12.05A. 0.006144; 0.9190B. 0.037020; 0.7352C. 0.009255; 0.9190D. 0.919000; 0.00926.An individual plans to invest in Stock A and Stock B. The expected returns are 12% and 18% for Stocks A and B, respectively. The standard deviations are 6% and 12% for Stocks A and B. The correlation between A and B is .15. Find the expected return and the standard deviation of a portfolio with 80% of the investors funds in Stock A.A. 13.2%; 0.32%B. 9.6%; 4.8%C. 13.2%; 7.2%D. 13.2%; 5.68%7.Suppose that the investor decides to form a portfolio consisting of three assets as follows: 10% invested in Stock A, 30% invested in Stock B, and 60% invested in a risk free asset that has a return of 6%. Stock A returns 12% and stock B returns 18%. What is the expected return for this portfolio? A. 10.2%B. 12.0%C. 6.6%D. 12.6%8.If we form a portfolio that is invested 60% in Fast Semiconductor stock that has a beta of 2.25 and 40% in the risk-free asset, what will be the beta for the portfolio?A. 2.25B. 0.00C. 1.35D. 1.759.Fenway Corporation common stock has a beta of 1.5. A security analyst forecasts an expected return of 15% over the next year. The market risk premium is 8% and the risk free rate is 4%. In a CAPM framework, does the analyst believe that Fenway common stock is fairly priced?A. Stock is fairly priced.B. CAPM predicts 16%, stock is undervalued.C. CAPM predicts 16%, stock is overvalued.D. Stock is undervalued because return exceeds market risk premium.10.A stock has a beta of .45 and a standard deviation of 30%. The market portfolio has a standard deviation of 20%. What is the correlation between returns on the stock and returns on the market portfolio?A. 0.30B. 0.09C. 0.14D. 0.06第十一章1.Security prices sometimes change following announcements, while other times, they do not. This is because an announcement has two parts: the _ component and the _ component. A. firm specific; systematicB. newsworthy; legalisticC. beta; errorD. expected; unexpected2.A new discovery that affects only a single company, or a small group of companies, is an example of _ risk.A. systematicB. unsystematicC. betaD. market3.Risks that affect all companies to some degree are called _ risks.A. systematicB. unsystematicC. firm specificD. idiosyncratic4.If security returns are written as:R = E(R) + GDP (FGDP) + I(FI) + ,then FGDP is the _.A. expected change in GDPB. market risk premium for GDPC. unexpected change in GDPD. forecast level of GDP5.If security returns are written as:R = E(R) + GNP (FGNP) + I(FI) + ,then the expected value of FGNP is _.A. last years GDPB. zeroC. growth rate in GDPD. one6.A factor model which has an index such as the S&P 500 as the only factor is often called a _.A. basic modelB. CAPMC. multifactor modelD. market model7.Expected return depends only on _.A. market risk premiumB. the market modelC. systematic riskD. unsystematic risk8.You are working with a two-factor model that is based on the growth rate in GDP and interest rates. For Georgio Corporation, a major producer of zucchini, the GDP beta is 2 and the interest rate beta is .65. The expected return on Georgio stock is 16%, the expected growth in GDP is 2%, and interest rates are expected to be 8%. One year later, GDP growth turns out to have been 4%, and interest rates, 7%. Also, the company experienced a 3% increase in share value as the result of a patented cost-saving technology. What additional return is created by the systematic risk of Georgio stock? A. 4.00%B. 3.35%C. 0.00%D. 6.65%9.Continuing the previous problem, what is the actual return on the Georgio stock?A. 3.35%B. 6.65%C. 16.0%D. 22.35%10.The following one factor model is appropriate to describe stock returns to the Glacier Corporation. The factor is the change in gross domestic product (GDP). Glaciers beta equals 1.5, and its expected return is 18%.RG = E(RG) + GF + GLast year, Glaciers stock return was only 7%, while the change in GDP was 2.0%. During the year Glacier unexpectedly announced that its dynamic CEO was killed in a mountain climbing accident, which caused a 8% decline in its stock price. What expected change in GDP was incorporated in Glaciers stock price at the start of last year?A. 4.0%B. 2.0%C. 0.0%D. 3.0%答案：1、D 2、B 3、A 4、C 5、B 6、D 7、C 8、B 9、D 10、A第十二章1.The appropriate discount rate for capital budgeting projects with risky cash flows is the _ for financial assets with risk level comparable to that of the project under consideration. A. market returnB. expected returnC. excess returnD. risk free rate2.A securitys _ is equal to the slope of the characteristic line relating the securitys expected return with that of the market.A. betaB. required returnC. leverageD. covariance3.If the projects risk is different from that of the firm as a whole, the appropriate value for beta is the beta for the _, not the beta for the _.A. firm; projectB. firms equity; firms debtC. project; firmD. project; market4.A firm financed entirely with equity is said to be subject to _, while the stockholders of a levered firm are also subject to _.A. financial risk; business riskB. systematic risk; idiosyncratic riskC. business risk; interest rate riskD. business risk; financial risk5.Helper Industries has an asset beta of 1.20 and wants to know what its equity beta will be at different debt ratios. Assume that the firm can issue risk free debt at 6%, the market risk premium is 8%, and that there are no taxes. Calculate the firms equity beta and cost of equity at debt ratio of 50%.A. 2.40; 25.20%B. 2.40; 8.40%C. 1.20; 8.40%D. 1.20; 15.60%6.The Hoosic Company has $285 million of risk free debt outstanding at the same time its common stock is worth $665 million. Analysis indicates that the firms equity has a beta of 1.25. Ignore taxes. What is the firms asset beta?A. 0.536B. 1.786C. 0.875D. 1.2507.Now suppose that Hoosic pays corporate taxes at a 35% rate. Assume that the before tax cost of debt is still 6%, and that the cost of equity is now 14.95%. What is Hoosics weighted average cost of capital (WACC)?A. 12.26%B. 14.95%C. 13.00%D. 11.64%8.Hoosic has an investment project which will expand the size of its existing business. The project costs $275,000 and will generate an after tax cash flow of $34,905 per year forever. Hoosic intends on keeping its debt ratio constant. What is the net present value of this project?A. $25,000B. $300,000C. -$6,500D. $268,5009.The Horrid Corporation has an equity beta of 1.20 and a debt beta of 0.15. The firms market value debt-to-equity ratio is 2/5. The tax rate is zero. What is the firms asset beta?A. 0.78B. 1.05C. 0.90D. 1.2010.Continuing with the previous problem, if Horrid Corporation changes its debt ratio (B/V) to 2/5, what will be its new equity beta?A. 1.05B. 1.40C. 0.90D. 1.20答案：1、B 2、A 3、C 4、D 5、A 6、C 7、D 8、A 9、C 10、B第十三章1.A market in which prices reflect available information is called an _. A. auction marketB. over the counter market C. inefficient marketD. efficient market2.If markets are efficient, then investors should receive a _ rate of return.A. positiveB. normalC. flatD. nonzero3.If the past history of stock prices is not useful in earning abnormal returns, then the market is at least _ efficient.A. weak formB. semistrong formC. strong formD. minimally4.If publicly available information is not useful in earning abnormal returns, then the market is at least _ efficient.A. weak formB. semistrong formC. strong formD. minimally5.Stock price changes have very low serial correlations. This fact is consistent with the _ form of the efficient markets hypothesis.A. weakB. semistrongC. strongD. revised6.The difference between a securitys actual return in a given period and the return on a market index is called the _ for that period.A. normal returnB. minimally acceptable returnC. abnormal returnD. fair return7.If stock price changes are independent and come from the same probability distribution, then stock price changes are said to follow a _.A. straight lineB. binomial processC. random walkD. normal distribution8.An examination of the behavior of security returns following an announcement of new information is called an _.A. investigative reportB. event studyC. analysis of varianceD. outlier analysis9.If managers have private information about the value of their firms stock, then they may try to sell stock when it is _. As a result, announcements of new stock sales may lead to stock price _.A. overvalued; decreasesB. overvalued; increasesC. undervalued; decreasesD. undervalued; increases10.If managers are able to time security issues, they would issue equity when they believe that their stock is _, and repurchase stock when they believe that the stock is _.A. undervalued; overvaluedB. undervalued; undervaluedC. overvalued; undervaluedD. overvalued; overvalued答案：1、D 2、B 3、A 4、B 5、A 6、C 7、C 8、B 9、A 10、C第十五章1.The mixture of debt and equity that a company chooses to employ is called its _ . A. debt ratioB. financial planC. capital structureD. dividend policy2.The amount by which the value of a levered firm exceeds the value of an unlevered firm with the same assets is equal to the _.A. present value of its interest tax shieldB. value of its debtC. value of growth opportunitiesD. present value of its interest payments3.With corporate taxes and no bankruptcy costs, the overall cost of capital _ as the debt/equity ratio increases.A. increasesB. decreasesC. remains constantD. none of the above4.The Monongahela Valley Manufacturing Company has $750 debt outstanding with pretax cost of 6% and its common stock has a value of $1,250. The required return on equity is 14.34%. The firm faces a corporate tax rate of 35%. What is Monongahelas equivalent unlevered cost of equity?A. 14.34%B. 10.42%C. 12.00%D. 6.00%5.Continuing the previous problem, what is Monongahelas EBIT?A. $179.25B. $224.25C. $345.00D. $320.776.Monongahela Valley Manufacturing is recapitalizing by issuing $250 in debt and using the proceeds to buy back stock. After the recapitalization, what is the firms new value?A. $1,750.00B. $2,087.50C. $2,250.00D. $2,000.007.Continuing the previous problem, after the recapitalization, what is Monongahelas WACC?A. 12.00%B. 10.42%C. 9.99%D. 15.59%8.Myoptic Optical is a levered no-growth firm with $1,400,000 debt outstanding. Firm value is $2,277,500. The firms owner is currently contemplating whether to reduce its debt ratio to a more reasonable 40%. The firm will do so by issuing stock and retiring an equal amount of debt. The unlevered cost of equity is 16%, and the cost of debt is 6%. The firm currently has 35,100 shares outstanding and the firms tax rate is 35%. What is Myoptic Opticals current cost of levered equity?A. 26.37%B. 12.56%C. 16.00%D. 31.95%9.Continuing the previous problem, what will be the new value of Myoptic Optical after the recapitalization to a 40% debt ratio (B/V) is announced?A. $2,277,500B. $1,366,500C. $2,078,488D. $2,000,00010.Continuing the previous problem, what will be Myoptic Opticals new cost of levered equity after the recapitalization?A. 18.60%B. 20.33%C. 16.00%D. 26.37%答案：1、C 2、A 3、B 4、C 5、D 6、B 7、C 8、A 9、C 10、B第十六章1.The indirect costs of financial distress are paid by _.A. bondholdersB. creditorsC. managersD. stockholders2.One way to reduce the costs of financial distress is the inclusion of _