2013年6月CFA+Level+I+重点习题集+Corporate+Finance.pdf

Leading Global Wealth Management Practice PAGE 1 Copyright 2013 WMICHINA All Rights Reserved Corporate Finance 1 A large corporation accepts a project which generates no revenue and has a negative net present value The project most likely is classified in which of the following categories A Replacement project B New product or service C Regulatory or environmental project 2 Which of the following is least likely classified as an opportunity cost A The cash savings related to adopting a new production process B The cash flows generated by an old machine that is to be replaced C The market value of vacant land to be used for a distribution center 3 A company that sells ice cream is evaluating an expansion of its production facilities to also produce frozen yogurt A marketing study has concluded that producing frozen yogurt would increase the company s ice cream sales because of an increase in brand awareness What impact will the cash flows from the expected increase in ice cream sales most likely have on the NPV of the yogurt project A Increase B Decrease C No effect 4 A company is considering building a distribution center on undeveloped land that it acquired more than ten years ago at a cost of 400 000 The company estimates the cost of putting in utilities sewers roads and other such costs of preparing the land for the distribution center at 200 000 Alternatively the undeveloped land could be sold today to another company for 600 000 In evaluating this capital project the investment outlay associated with the use of the land by the distribution center will most likely be A 400 000 B 600 000 C 800 000 5 A project has the following annual cash flows Year 0 Year 1 Year 2 Year 3 606 061 2 151 515 2 542 424 1 000 000 Which discount rate most likely provides a positive net present value A 15 B 18 C 21 6 A project has the following annual cash flows Year 0 Year 1 Year 2 Year 3 Year 4 Leading Global Wealth Management Practice PAGE 2 Copyright 2013 WMICHINA All Rights Reserved 75 000 21 600 23 328 37 791 40 815 With a discount rate of 8 percent the discounted payback period in years is closest to A 2 8 B 3 2 C 4 0 7 A company is planning a new issue of 100 par preferred stock with a 12 percent dividend The preferred stock can be sold for 95 per share and the company must pay flotation costs of 5 percent of the market price Assuming a marginal tax rate of 40 percent the after tax cost of the preferred stock is closest to A 8 0 B 12 6 C 13 3 8 A firm s estimated costs of debt preferred stock and common stock are 12 percent 17 percent and 20 percent respectively Assuming equal funding from each source and a 40 percent tax rate the weighted average cost of capital is closest to A 9 8 B 13 9 C 14 37 9 A twenty year 1 000 fixed rate non callable bond with 8 annual coupons currently sells for 1 105 94 Assuming a 30 marginal tax rate and an additional risk premium for equity relative to debt of 5 the cost of equity using the bond yield plus risk premium approach is closest to A 9 9 B 12 0 C 13 0 10 A company has an equity beta of 1 4 and is 60 funded with debt Assuming a tax rate of 35 the company s asset beta is closest to A 0 71 B 0 98 C 1 01 11 An analyst gathers the following information about the cost and availability of raising various amounts of new debt and equity capital for a company Amount of new debt in millions Cost of debt after tax Amount of new equity in millions Cost of equity 4 0 4 0 4 5 5 0 5 0 13 15 The company s target capital structure is 60 percent equity and 40 percent debt If the company raises 9 5 million in new financing the marginal cost of capital is closest to Leading Global Wealth Management Practice PAGE 3 Copyright 2013 WMICHINA All Rights Reserved A 9 8 B 10 6 C 11 0 12 The following information is available for a firm Revenue 800 000 Variable Cost 400 000 Fixed Cost 200 000 Operating Income 200 000 Interest 60 000 Net Income 140 000 The firm s degree of total leverage DTL is closest to A 1 43 B 2 00 C 2 86 13 If the degree of financial leverage DFL is 1 00 the operating breakeven point compared to the breakeven point is most likely A lower B higher C the same 14 A company decides to repurchase 5 million of its outstanding 20 million shares with debt funding After the repurchase the company s after tax earnings decline by 20 The new earnings per share EPS is most likely A equal to the pre repurchase EPS B less than the pre repurchase EPS C greater than the pre repurchase EPS 15 The following information is available for a firm Number of shares outstanding 4 million Tax rate 40 Cost of debt pretax 10 Current stock price 20 00 Net income 6 million A plan to repurchase 10 million worth of shares using debt will most likely cause the earnings per share to A increase B decrease C remain unchanged 16 Assuming current assets and current liabilities remain a constant proportion of sales 30 percent and 20 percent respectively as sales grow 5 percent annually through time the current ratio will most likely Leading Global Wealth Management Practice PAGE 4 Copyright 2013 WMICHINA All Rights Reserved A increase B decrease C remain unchanged 17 Other factors held constant the reduction of a company s average accounts payables due to suppliers offering less trade credit will most likely A reduce the operating cycle B increase the operating cycle C not affect the operating cycle 18 An analyst gathered the following information about a company 2001 2008 Sales 128 4 million 220 0 million Return on equity ROE 10 percent 10 percent Net profit margin NPM 6 percent 7 percent Number of shares outstanding 5 million 6 million The analyst expects sales in 2009 to grow at the historical compound annual growth rate from the year 2001 to 2008 For the year 2009 the net profit margin and the number of shares outstanding are expected to remain unchanged from the year 2008 The company s earnings per share EPS for the year 2009 is closest to A 2 77 B 2 83 C 3 96 19 Which is most likely considered a pull on liquidity A Obsolete inventory B Reduction in a line of credit C Increased difficulty in collecting receivables 20 A publicly listed company has a 12 person Board of Directors whose composition is as follows the Chairman who is the past president of the company and was named Chairman on his retirement date four years ago five members of senior management including the current president and six outside directors Each member is elected for a two year term and one half of the positions stand for election every year The three members of the Audit Committee are all outside directors and have relevant financial experience The Remuneration Committee is composed of the Chairman and two outside directors Which of the following actions would provide the greatest improvement in the corporate governance of this company A The Chairman of the Board should be an independent director B All members of the Board of Directors should stand for election every year C The company s Vice President of Finance should be a member of the audit committee 21 Which one of the f