《公司理财》选择题题库

1、CONTROLLER公司理财选择题题库Multiple Choice Questions:Chapter 1cost analysis.capital budgeting.capital structure.c1. The person generally directlyresponsible for overseeing the tax management, cost accounting, financial accounting, and information system functions is the:treasurer.director.controller.chairma

2、n of the board.chief executive officer.TREASURERa2. The person generally directlyresponsible for overseeing the cash and credit functions, financial planning, and capital expenditures is the:treasurer.director.controller.chairman of the board.chief operations officer.CAPITAL BUDGETING3. The process

3、of planning and managing a firms investments is working capital management.financial depreciation.agency cost analysis.capital budgeting.capital structure.CAPITAL STRUCTURECAPITAL STRUCTURE4. The mixture of debt and equity used by firmtofinanceitsoperationsiscalled:working capital management.financi

4、al depreciation.WORKING CAPITAL MANAGEMENT5. The management of a firms assets and liabilities is called:working capital management.debt management.equity management.capital budgeting.capital structure.SOLE PROPRIETORSHIPSOLE PROPRIETORSHIP6. Abusinessownedbyasingleindividualcalled a:corporation.sole

5、 proprietorship.general partnership.limited partnership.limited liability company.GENERAL PARTNERSHIP7. A business formed by two or more individuals who each have unlimited liabilityforbusinessdebtsiscalledcorporation.sole proprietorship.general partnership.limited partnership.limited liability comp

6、any.CORPORATIONa9. A business created as a distinct legal entitycomposedofoneormoreindividuals or entities is called a:corporation.sole proprietorship.general partnership.limited partnership.unlimited liability company.LIMITED LIABILITY COMPANY12. A business entity operated and taxedapartnership,but

7、withlimitedliability for the owners, is called a:limited liability company.general partnership.limited proprietorship.sole proprietorship.corporation.FINANCIAL MANAGEMENT GOALFINANCIAL MANAGEMENT GOAL13. The primary goal of financial management is to:maximize current dividends per share the existing

8、 stock.maximize the current value per share the existing stock.avoid financial distress.minimize operational costs and maximize firm efficiency.maintain steady growth in both sales net earnings.CHAPTER 4Discounted Cash Flow ValuationANNUITYa1. Anannuitystreamofcashflowpaymentsa set of:level cash flo

9、ws occurring each period for a fixed length of time.level cash flows occurring each period forever.increasingcashflowsoccurringeachperiod for a fixed length of time.increasingcashflowsoccurringeachperiod forever.arbitrary cash flows occurring each period for no more than 10 years.ANNUITIES DUEe2. An

10、nuities where the payments occur at the endofeachtimeperiodarecalled, whereasrefer to annuity streams with payments occurring at the beginning of each time period.ordinary annuities; early annuitieslate annuities; straight annuitiesstraight annuities; late annuitiesannuities due; ordinary annuitieso

11、rdinary annuities; annuities duePERPETUITYc3. Anannuitystreamwherethepaymentsforever is called a(n):annuity due.indemnity.perpetuity.amortized cash flow stream.amortization table.STATED INTEREST RATESa4. The interest rate expressed in terms of the interest payment made each period called therate.sta

12、ted annual interestcompound annual interesteffective annual interestperiodic interestdaily interestEFFECTIVE ANNUAL RATEEFFECTIVE ANNUAL RATEc5. The interest rate expressed as if itcompounded once per year is called the rate.stated interestcompound interesteffective annualperiodic interestdaily inte

13、restANNUAL PERCENTAGE RATEb6. The interest rate charged per period multiplied by the number of periods year is called therate.effective annualannual percentageperiodic interestcompound interestdaily interestCHAPTER 5Interest Rate and Bond Valuationcoupon.face value.maturity.yield to maturity.coupon

14、rate.YIELD TO MATURITYYIELD TO MATURITYd4. The rate of return required by investors in the market for owning a bond the:coupon.face value.maturity.yield to maturity.coupon rate.COUPON1. The stated interest payment, in dollars, made on a bond each period is called bonds:coupon.face value.maturity.yie

15、ld to maturity.coupon rate.FACE VALUE2. The principal amount of a bond that repaid at the end of the loan term is called the bonds:coupon.face value.maturity.yield to maturity.coupon rate.MATURITY3. The specified date on which the principal amount of a bond is repaid is called bonds:COUPON RATEe5. T

16、heannualcouponofabonddividedbyface value is called the bonds:coupon.face value.maturity.yield to maturity.coupon rate.PAR BONDS6. A bond with a face value of $1,000 that sells for $1,000 in the market is abond.par valuediscountpremiumzero couponfloating rateDISCOUNT BONDS7. A bond with a face value

17、of $1,000 that sells for less than $1,000 in the is called abond.pardiscountpremiumzero couponfloating ratePREMIUM BONDSPREMIUM BONDS8. A bond with a face value of $1,000 that sells for more than $1,000 in the is called abond.pardiscountpremiumzero couponfloating rateCHAPTER 6Stock ValuationGROWING

18、PERPETUITY1. An asset characterized by cash flowsincrease at a constant rate forever is called a:growing perpetuity.growing mon annuity.perpetuity due.preferred stock.DIVIDEND GROWTH MODEL2. The stock valuation model thatdetermines the current stock price by dividing the nextannualdividendamountbyth

19、eexcess of the discount rate less the dividend growth rate is called themodel.zero growthdividend growthcapital pricingearnings capitalizationdiscounted DIVIDEND YIELD3. Next years annual dividend divided the current stock price is called the:yield to maturity.total yield.dividend yield.capital gain

20、s yield.earnings yield.CAPITAL GAINS YIELDCAPITAL GAINS YIELD4. The rate at which a stocks price is expectedtoappreciate(ordepreciate)called theyield.currenttotaldividendcapital gainsearningsPREFERRED STOCK5. A form of equity which receives preferential treatment in the payment dividends is calledst

21、ock.dual classcumulativedeferredpreferredcommonPREFERRED STOCK6. Ais a form of equity security has a stated liquidating value.bonddebentureproxycommon stockpreferred stockDifficulty level: MediumCOMMON STOCKe7. A form of equity which receives no preferential treatment in either the payment of divide

22、nds or in bankruptcy distributions is calledstock.dual classcumulativedeferredpreferredcommonDIVIDENDSc12. Payments made by a corporation to its shareholders,intheformofeitherstock or payments in kind, are called:retained income.dividends.redistributions.infused equity.PRIMARY MARKETe13. The market

23、in which new securities are originallysoldtoinvestorsiscalled market.dealerauctionover-the-countersecondaryprimarySECONDARY MARKETd14. The market in which previously issued securities are traded among investors called themarket.dealerauctionover-the-countersecondaryprimaryCHAPTER 10Risk and Return L

24、essons from Market HistoryRISK PREMIUM1. The excess return required from a risky assetoverthatrequiredfromarisk-free asset is called the:risk premium.geometric premium.excess return.average return.variance.VARIANCE2. The average squared difference between the actual return and the average is called

25、the:volatility return.variance.standard deviation.risk premium.excess return.STANDARD DEVIATION3. The standard deviation for a set ofreturns can be calculated as the:positive square root of the return.average squared difference between actual return and the average return.positive square root of the

26、 variance.average return divided by N minus where N is the number of returns.variance GEOMETRIC AVERAGE RETURN5. The average compound return earned per year over a multi-year period is theaverage return.arithmeticstandardvariantgeometricrealDifficulty level:MediumARITHMETIC AVERAGE RETURNa 6. The re

27、turn earned in an average year over a multi-year period is called the average return.arithmeticstandardvariantgeometricRISK PREMIUMc7. The excess return you earn by movinga relatively risk-free investment to a risky investment is called the:geometric average return.inflation premium.risk premium.tim

28、e premium.arithmetic average return.TOTAL RETURNe8. The capital gains yield plus the dividend yield on a security is called the:variance of returns.geometric return.average period return.current yield.total return.CHAPTER 11CHAPTER 11Return and Risk: The Capital Asset Pricing Model(CAPM)A portfolio

29、is:PORTFOLIOSA portfolio is:1.agroupofassets,suchasstocksandheldasacollectiveunitbyaninvestor.a.the expected return on a risky asset.a.the expected return on a collection risky assets.thevarianceofreturnsforariskyasset.the standard deviation of returns for collection of risky assets.PORTFOLIO WEIGHT

30、S2. The percentage of a portfolios total value invested in a particular asset called that assets:portfolio return.portfolio weight.portfolio risk.rate of return.investment value.SYSTEMATIC RISKSYSTEMATIC RISK3. Riskthataffectsalargenumberofeach to a greater or lesser degree, is calledrisk.idiosyncra

31、ticdiversifiablesystematicasset-specifictotalUNSYSTEMATIC RISK4. Risk that affects at most a small of assets is calledrisk.portfolioundiversifiablemarketunsystematictotalSYSTEMATIC RISK PRINCIPLEb6. Thetells us that the expected return on a risky asset depends only that assets nondiversifiable risk.

32、Efficient Markets Hypothesis (EMH)systematic risk principleOpen Markets TheoremLaw of One Priceprinciple of diversificationBETA COEFFICIENTa7. The amount of systematic risk present aparticularriskyasset,relativetothe systematic risk present in an average risky asset, is called the particular assets:

33、beta coefficient.reward-to-risk ratio.total risk.diversifiable risk.Treynor index.SECURITY MARKET LINESECURITY MARKET LINEd8. The linear relation between an assets expected return and its beta coefficient is the:reward-to-risk ratio.portfolio weight.portfolio risk.security market line.market risk pr

34、emium.expected capital gains yield for stock.expectedcapitalgainsyieldforthefirm.portfolio beta for the firm.weighted average cost of capital (WACC).CAPM2.If the CAPM is used to estimate the of equity capital, the expected excess market return is equal to thereturn on the stock minus the risk-free r

35、ate.difference between the return on market and the risk-free rate.beta times the market risk premium.beta times the risk-free rate.market rate of CHARACTERISTIC LINE3.Thebestfitlineofpairwiseplotofreturns of the security against the market index returns is called theSecurity Market Line.Capital Mar

36、ket Line.characteristic line.risk line.None of the above.CHAPTER 14Capital Structure: Basic ConceptsMM PROPOSITION Ib2. ThepropositionthatthevalueofthefirmCHAPTER 12Risk, Cost of Capital, and Capital BudgetingWACCe1. The weighted average of the firms costs of equity, preferred stock, and after tax d

37、ebt the:reward to risk ratio for the firm.is independentofitscapitalstructurecalled:the capital asset pricing model.MM Proposition I.MM Proposition II.the law of one price.the efficient markets hypothesis.MM PROPOSITION IIc3. Thepropositionthatthecostofequitya positive linear function of capital str

38、ucture is called:the capital asset pricing model.INDIRECT BANKRUPTCY COSTSc2. The costs of avoiding a bankruptcyby a financially distressed firm areMM Proposition I.MM Proposition II.the law of one price.the efficient markets hypothesis.Difficulty level:MediumINTEREST TAX SHIELDa4. The tax savings o

39、f the firm derived fromclassified asflotationdirect bankruptcyindirect bankruptcyfinancial solvencycapital structurecosts.FINANCIAL DISTRESS COSTSthe deductibility of interest expense is called the:FINANCIAL DISTRESS COSTSe3. The explicit and implicit costs associated with corporate default interest

40、 tax shield.depreciable basis.financing umbrella.current yield.tax-loss carryforward savings.CAPITAL STRUCTURE DEFINITIONd8.The firms capital structure refers tothe way a firm invests its assets.referred to as theflotationdefault betadirect bankruptcyindirect bankruptcyfinancial distressBANKRUPTCYco

41、sts firm.the amount of capital in the firm.the amount of dividends a firm pays.themixofdebtandequityusedtothe firms assets.how much cash the firm holds.CHAPTER 15Capital Structure: Limits to the Use of Debt DIRECT BANKRUPTCY COSTSc1. The explicit costs, such as the legal expenses, associated with co

42、rporate default are classified asflotationbeta conversiondirect bankruptcyindirect bankruptcyunleveredb6. The legal proceeding for liquidating or reorganizing a firm operating in is called a:tender xy fight.ACCOUNTING INSOLVENCYd8. Afirmthathasnegativenetworthisto be:experiencing a business failure.

43、in legal bankruptcy.experiencing technicalinsolvency.experiencing accountinginsolvency.in Chapter 11 bankruptcy reorganization.CAPITAL STRUCTURE10. Thevalueofafirmismaximizedwhenthe:cost of equity is maximized. btax rate is zero.levered cost of capital is maximized.weighted average cost of capital minimized.debt-equity ratio is minimized.CAPITAL STRUCTURE11. The optimal capital structure has achieved when the:debt-equity ratio is equal to 1.weightofequityisequaltotheweightdebt.cost of equity is maximized given p