《公司理财》选择题题库

PAGEPAGE7公司理财选择题题库MultipleChoiceQuestions：CONTROLLER

Chapter1

soleproprietorship.generalpartnership。limitedpartnership.e。limitedliabilitycompany.c 1. Thepersongenerallydirectlyresponsibleoverseeingthetaxmanagement，costaccounting，financialaccounting,andinformationsystemfunctionsistreasurer。director。ccontrollerd. chairmanofthee。chiefexecutiveofficer.TREASURERa 2。Thepersongenerallydirectlyresponsibleforoverseeingthecashandcreditfinancialplanning,andcapitalexpendituresthe:treasurerbdirector。c。controller.d。chairmanoftheboard.e. chiefoperationsofficer.CAPITALBUDGETINGd 3. Theprocessofplanningandmanagingafirm’slong—terminvestmentsiscalled：a。workingcapitalmanagement。b。financialdepreciation。c。agencycostanalysis。d。capitalbudgeting.e. capitalstructure。

GENERALPARTNERSHIPc7.Abusinessformedbytwoormoreindividualswhoeachhaveunlimitedliabilityforbusinessdebtsiscalledcorporation。bsoleproprietorship。c。generalpartnershipd. limitedpartnership。e。limitedliabilitycompany.CORPORATIONa 9。Abusinesscreatedasadistinctlegalentitycomposedofoneormoreindividualsorentitiesiscalleda。corporation.b. soleproprietorship.c。generalpartnershipd。limitedpartnership.e. unlimitedliabilitycompany.LIMITEDLIABILITYCOMPANYa 12. Abusinessentityoperatedandtaxedlikeapartnership，butwithlimitedliabilityforowners，iscalleda。limitedliabilitycompany.b。generalpartnership。c. limitedproprietorshipdsoleproprietorship。e. corporation。FINANCIALFINANCIALMANAGEMENTGOALCAPITALSTRUCTUREe 4. Themixtureofdebtandequityusedbyafirmfinanceitsoperationsiscalled:CAPITALSTRUCTUREworkingcapitalmanagement。financialc。costanalysis.d。capitalbudgeting.e. capitalstructure。WORKINGCAPITALMANAGEMENT5. Themanagementofafirm’sassetsandliabilitiesisworkingcapitalmanagementb。debtmanagement。equitymanagement.capitalbudgeting.e。capitalstructure.SOLEPROPRIETORSHIPSOLEPROPRIETORSHIP6。Abusinessownedbyasingleindividualcalleda:a。corporation.

b 13。Theprimarygoaloffinancialmanagementisa。maximizecurrentdividendspershareoftheexistingstock。b。maximizethecurrentvaluepershareoftheexistingstock。c。avoidfinancialdistress。d. minimizeoperationalcostsandmaximizeefficiency。e。maintainsteadygrowthinbothsalesandnetearnings。CHAPTER4DiscountedCashFlowValuationANNUITYa 1. Anannuitystreamofcashflowpaymentsissetof：a。levelcashflowsoccurringeachtimeperiodforafixedlengthoftime。b。levelcashflowsoccurringeachtimeperiodforever.increasingcashflowsoccurringeachtimeforafixedlengthof。increasingcashflowsoccurringeachtimeforever.e。arbitrarycashflowsoccurringeachtimeperiodfornomorethan10years.ANNUITIESDUEe 2。Annuitieswherethepaymentsoccurattheofeachtimeperiodarecalled ,whereas refertoannuitystreamswithpaymentsoccurringatthebeginningofeachtimeordinaryannuities;earlyannuitiesb。lateannuities;straightannuitiesc。straightannuities；lateannuitiesd。annuitiesdue；ordinaryannuitiese. ordinaryannuities;annuitiesduePERPETUITYc 3. Anannuitystreamwherethepaymentsforeveriscalleda。annuitydue.indemnity.c。perpetuity。d。amortizedcashflowstream.e。amortizationtable.STATEDINTERESTRATESa 4. Theinterestrateexpressedintermsoftheinterestpaymentmadeeachperiodiscalled poundannualinteresteffectiveannualinterestd。periodicintereste。dailyinterestEFFECTIVEANNUALRATEEFFECTIVEANNUALRATEc 5. Theinterestrateexpressedasifitwerecompoundedonceperyeariscalledthe poundinteresteffectiveannualperiodicinterestdailyinterestANNUALPERCENTAGERATEb 6。Theinterestratechargedperperiodmultipliedbythenumberofperiodsperyeariscalledthe rate.a。effectiveannualb. poundintereste. dailyinterestCHAPTER5InterestRateandBondValuation

COUPON1。Thestatedinterestindollars,madeonabondeachperiodiscalledthebond’s:a。coupon。facevalue。maturity。d。yieldtomaturity.e。couponrate。FACEVALUE2. Theprincipalamountofabondthatisrepaidattheendoftheloantermiscalledthebond’s：a。coupon。b。facevalue.c. maturity.d。yieldtomaturity.e.couponrate。MATURITY3。Thespecifieddateonwhichtheprincipalamountofabondisrepaidiscalledthecoupon.facevalue.cmaturityyieldtomaturity.couponrate。YIELDTOMATURITYYIELDTOMATURITY4. Therateofreturnrequiredbyinvestorsinmarketforowningabondiscalledthe:coupon.facevalue.d。yieldtomaturity.e. couponrate。COUPONRATE5. Theannualcouponofabonddividedbyitsfacevalueiscalledthebond’s:a。coupon.b。facevalue。c。maturity。d. yieldtomaturity.e。couponrate.PARBONDS6. Abondwithafacevalueof$1,000thatsellsfor＄1,000inthemarketiscalleda 。parvaluediscountc。d. zeroe。floatingrateDISCOUNTBONDS7. Abondwithafacevalueof＄1，000thatforlessthan＄1，000inthemarketiscalleda bond.pardiscountc。d. zeroe。floatingratePREMIUMBONDSPREMIUMBONDS8。Abondwithafacevalueof$1,000thatsellsformorethan＄1，000inthemarketiscalleda bond.parb。discountc。premiumd。zerocoupone. floatingrateCHAPTER6StockValuationGROWINGPERPETUITY1。Amon。perpetuity。preferredstock。DIVIDENDGROWTHMODEL2。Thestockvaluationmodelthatdeterminesthecurrentstockpricebydividingthenextdividendamountbytheexcessofthediscountratelessthedividendgrowthrateiscalledthe model.zerogrowthdividendgrowthcapitalpricingearningscapitalizationdiscounteddividendDIVIDENDYIELD3. Nextyear'sannualdividenddividedbycurrentstockpriceiscalledthe:a。yieldtomaturity。totalyield.dividendyield.d。capitalgainsyield。e。earningsyield.CAPITALGAINSCAPITALGAINSYIELD5。Aformofequitywhichreceivespreferentialtreatmentinthepaymentofdividendsiscalled stock。dualclassb。cumulativec。deferredd。preferrede. commonPREFERREDSTOCK6。A monstocke。preferredstockDifficultylevel: MediumCOMMONSTOCKe 7. Aformofequitywhichreceivesnotreatmentineitherthepaymentofdividendsorinbankruptcydistributionsiscalled stock。dualclasscumulativedeferredpreferredcommonDIVIDENDSc 12。Paymentsmadebyacorporationtoitsshareholders,intheformofeitherorpaymentsinkind,income.c. dividends。d。redistributions。e. infusedequity.PRIMARYMARKETe 13。Themarketinwhichnewsecuritiesareoriginallysoldtoinvestorsiscalledthe market。dealerb。c。over-the-counterd. secondarye。primaryd 4. Therateatwhichastock’spriceisexpectedtoappreciate（ordepreciate)iscalledthe yield.a。btotalc. dividendd。capitale。earningsPREFERREDSTOCK

SECONDARYMARKETd 14. Themarketinwhichpreviouslyissuedsecuritiesaretradedamonginvestorsiscalledthe market。a。dealerb。over-the-countersecondaryprimaryCHAPTER10RiskandReturnLessonsfromMarketHistoryRISKPREMIUM1. Theexcessreturnrequiredfromariskyoverthatrequiredfromaassetiscalledthe：a。riskpremium.b。geometricpremium.c。excessreturn.d. averagereturnevariance。VARIANCE2。Theaveragesquareddifferencebetweentheactualreturnandtheaveragereturniscalledthe：a。volatilityreturn。b。variance。c. standarddeviationdriskpremium。e. excessreturn。STANDARDDEVIATION3。Thestandarddeviationforasetofstockreturnscanbecalculatedasa。positivesquarerootoftheaveragereturn。b. averagesquareddifferencebetweenthereturnandtheaveragereturn.c。positivesquarerootofthevariance。averagereturndividedbyNminusNisthenumberof。variancesquared。GEOMETRICAVERAGERETURN5.Theaveragecompoundreturnearnedperoveramulti—yearperiodiscalledtheaveragereturn.a。arithmeticb。standardc. variantd。geometrice。realDifficultyMediumARITHMETICAVERAGERETURNa 6. Thereturnearnedinanaverageyearoveramulti-yearperiodiscalledthe averagereturn.b。standardvariantgeometricrealRISKPREMIUMc 7. Theexcessreturnyouearnbymovingfromrelativelyrisk-freeinvestmenttoariskyinvestmentiscalledgeometricaveragereturn.

inflation。riskpremium。d。timee。arithmeticaveragereturn。TOTALRETURNe 8。Thecapitalgainsyieldplusthedividendonasecurityiscalledthe:varianceofreturns。geometricreturn.c。averageperiodreturn。current。totalreturn。CHAPTER11ReturnandRisk:TheCapitalAssetPricingModel（CAPM）PORTFOLIOS1。Aportfolioa。agroupofassets,suchasstocksandbonds,heldasacollectiveunitbyan。b。theexpectedreturnonariskyasset.c。theexpectedreturnonacollectionofriskyassets.d。thevarianceofreturnsforariskyasset。e。thestandarddeviationofreturnsforacollectionofriskyassets。PORTFOLIOWEIGHTS2.Thepercentageofaportfolio’stotalinvestedinaparticularassetiscalledthatasset’s：a。portfolioreturn。portfolio。portfoliod。rateofreturn.e. investment。SYSTEMATICRISKSYSTEMATICRISK3.Riskthataffectsalargenumberofeachtoagreaterorlesserdegree,iscalled a。idiosyncraticdiversifiablesystematicd。asset—specifice. totalUNSYSTEMATICRISK4. Riskthataffectsatmostasmallnumberassetsiscalled 。a。portfoliob。undiversifiablec。marketd. e。totalSYSTEMATICRISKPRINCIPLEb 6。The tellsusthattheexpectedreturnonariskyassetdependsonlyonthatasset’s

characteristic。riskline。Noneofthe。

CHAPTER14nondiversifiablerisk.EfficientMarketsHypothesis(EMH)systematicriskprinciplec。OpenMarketsTheoremd。LawofOnePricee.principleofdiversificationBETACOEFFICIENTa 7. Theamountofsystematicriskpresentinparticularriskyrelativetothesystematicriskpresentinanaverageriskyasset，iscalledtheparticularasset’s:betacoefficient。b。reward-to-riskratio。totalrisk.diversifiablee。Treynorindex.SECURITYMARKETLINESECURITYMARKETLINE8. Thelinearrelationbetweenanasset'sexpectedreturnanditsbetacoefficientisa。reward-to—riskratio。portfolio。portfolio。securitymarketline.marketriskpremium.CHAPTER12Risk，CostofCapital,andCapitalBudgetingWACC1. Theweightedaverageofthefirm’scostsofequity,preferredstock,andaftertaxdebtisthe:rewardtoriskratioforthefirm.b。expectedcapitalgainsyieldforthestock。c。expectedcapitalgainsyieldforthefirm。d。portfoliobetaforthefirm。e。weightedaveragecostofcapital（WACC）。CAPM2。IftheCAPMisusedtoestimatethecostofequitycapital,theexpectedexcessmarketreturnisequaltothereturnonthestockminustherate.b。differencebetweenthereturnonthemarketandtherisk-freerate.c。betatimesthemarketriskpremium。betatimestherisk-free。marketrateof。CHARACTERISTICLINE3。ThebestfitlineofpairwiseplotofthereturnsofthesecurityagainstthemarketindexreturnsiscalledtheSecurityMarket。CapitalMarket。

CapitalStructure：BasicConceptsMMPROPOSITIONI2. Thepropositionthatthevalueofthefirmisindependentofitscapitalstructureiscalled:a。thecapitalassetpricingmodel。b。MMPropositionI。MMPropositionII.thelawofoneprice.e。theefficientmarketshypothesis.MMPROPOSITIONII3. Thepropositionthatthecostofequityisapositivelinearfunctionofcapitalstructurecalled：thecapitalassetpricingb。MMPropositionI.MMProposition。thelawofone。theefficientmarketshypothesis.DifficultyMediumINTERESTTAXSHIELDa 4。Thetaxsavingsofthefirmderivedfromthedeductibilityofinterestexpenseiscalledinteresttax。depreciablebasis.c。financingumbrella。d。currentyield。e. tax—losscarryforwardsavings.CAPITALSTRUCTUREDEFINITIONd 8. Thefirm'scapitalstructurerefersa。thewayafirminvestsits。b。theamountofcapitalinthefirm.c。theamountofdividendsafirmpays。themixofdebtandequityusedtofinancethefirm’sassets。howmuchcashthefirm。CHAPTER15CapitalStructure:LimitstotheUseofDebtDIRECTBANKRUPTCYCOSTSc 1. Theexplicitsuchasthelegalexpenses，associatedwithcorporatedefaultareclassifiedas 。flotationbetaconversionc。directbankruptcyindirectbankruptcyunleveredINDIRECTBANKRUPTCYCOSTSc 2. Thecostsofavoidingabankruptcyfilingbyfinanciallydistressedfirmareclassifiedas costs.a。flotationdirectbankruptcyindirectbankruptcyfinancialsolvencye。capitalstructure

capital.I. DIVIDENDS

CHAPTER16CHAPTER16DividendandOtherPayoutsFINANCIALDISTRESSCOSTSFINANCIALDISTRESSCOSTSe3.Theexplicitandimplicitcostsassociatedcorporatedefaultarereferredtoasthecostsofa。a。flotationb. defaultbetac。directbankruptcyindirectbankruptcyfinancialdistressBANKRUPTCYb 6。Thelegalproceedingforliquidatingorreorganizingafirmoperatingindefaultisa:tenderoffer.bbankruptcycmerger.d。takeover。e. proxyfight.ACCOUNTINGINSOLVENCYd 8. Afirmthathasnegativenetworthissaidbe：experiencingabusinessb。inlegalbankruptcy.experiencingtechnical。experiencingaccounting。inChapter11bankruptcyreorganization.CAPITALSTRUCTURE10. Thevalueofafirmismaximizedwhena。costofequityis。b taxrateis。c. leveredcostofcapitalismaximized.d。weightedaveragecostofcapitalisminimized.e。debt—equityratioisminimized.CAPITALSTRUCTURE11. Theoptimalcapitalstructurehasbeenachievedwhenthe:debt-equityratioisequalto。b。weightofequityisequaltotheweightof