CFA特许金融分析师-CFA二级-基础巩固（参考）-CorporateIssuers

CFA特许金融分析师-CFA二级-基础巩固（参考）-CorporateIssuers共享题干题MaríaHernándezisasell-sideanalystcoveringtheelec（江南博哥）tronicsindustryinSpain.Oneofthecompaniesshefollows,SGElectronics,S.A.,hasrecentlyannouncedplanstobeginproducingandsellinganewseriesofvideocameras.Hernándezestimatesthatthisprojectwillincreasethevalueofthecompanyand,consequently,sheplansonchangingherresearchopiniononthecompanyfroma“hold”toa“buy.”Herinitialfinancialpredictionsfortheprojectare:●Fixedcapitalequipmentoutlayis€2,750,000.●Atthebeginningoftheproject,arequiredincreaseincurrentassetsof€200,000andarequiredincreaseincurrentliabilitiesof€125,000.●Straight-linedepreciationtozerooverafive-yearlife.●Projectlifeoffiveyears.●Incrementalannualunitsalesof3,000ataunitpriceof€600.●Annualfixedcashexpensesof€125,000;variablecashexpensesof€125perunit.●Thecapitalequipmentisexpectedtobesoldfor€450,000attheendofYear5.Attheendoftheproject,thenetworkingcapitalinvestmentwillberecovered.●Taxrateof40percent.●Basedonthecapitalassetpricingmodel,therequiredrateofreturnis12percent.Hernándezestimatestheexpectednetpresentvalue(NPV)oftheprojecttobe€975,538andtheinternalrateofreturn(IRR)tobe24.6percent.Shealsoperformsasensitivityanalysisbychangingtheinputvariableassumptionsusedinherinitialanalysis.WhenreviewingHernández'swork,hersupervisor,ArturoCosta,notesthatshedidnotincludechangesinthedepreciationmethod,initialfixedcapitaloutlay,orinflationassumptionsinhersensitivityanalysis.Asaresult,Costaasksthefollowingquestions:Question1“Whatwouldbetheeffectontheproject'sNPViftheinitialfixedcapitalequipmentoutlayincreasedfrom€2,750,000to€3,000,000,everythingelseheldconstant?”Question2“Howwouldahigherthanexpectedinflationrateaffectthevalueoftherealtaxsavingsfromdepreciationandthevalueoftherealafter-taxinterestexpense,everythingelseheldconstant?”Question3“Youareusingarequiredrateofreturnof12percentwhenthecompany'sweightedaveragecostofcapital(WACC)is10percent.Whyareyouusingarequiredrateofreturnfortheprojectgreaterthanthecompany'sWACC?”Beforeendingthemeeting,CostatellsHernández:“Lastyearthecompanyproducedaprototypeatacostof€500,000.Nowmanagementishavingdoubtsaboutthemarketappealoftheproductinitscurrentdesign,andsotheyareconsideringdelayingthestartoftheprojectforayear,untiltheprototypecanbeshowntoindustryexperts.”[单选题]1.UsingHernández'sinitialfinancialpredictions,theestimatedannualafter-taxoperatingcashflowisclosestto:A.€780,000.B.€1,000,000.C.€1,075,000.正确答案：B参考解析：UsingequationCF=(S–C)×(1–T)T×D,thenumbersare:Sales=P×Q=€600×3,000=€1,800,000Costs=Variablecost×QFixedcosts=(125×3,000)€125,000=500,000Depreciationexpense=€2,750,000÷5=€550,000CF=(1,800,000–500,000)×(1–0.40)(550,000×0.40)=780,000220,000=€1,000,000.●Fixedcapitalequipmentoutlayis€2,750,000.●Atthebeginningoftheproject,arequiredincreaseincurrentassetsof€200,000andarequiredincreaseincurrentliabilitiesof€125,000.●Straight-linedepreciationtozerooverafive-yearlife.●Projectlifeoffiveyears.●Incrementalannualunitsalesof3,000ataunitpriceof€600.●Annualfixedcashexpensesof€125,000;variablecashexpensesof€125perunit.●Thecapitalequipmentisexpectedtobesoldfor€450,000attheendofYear5.Attheendoftheproject,thenetworkingcapitalinvestmentwillberecovered.●Taxrateof40percent.●Basedonthecapitalassetpricingmodel,therequiredrateofreturnis12percent.Hernándezestimatestheexpectednetpresentvalue(NPV)oftheprojecttobe€975,538andtheinternalrateofreturn(IRR)tobe24.6percent.Shealsoperformsasensitivityanalysisbychangingtheinputvariableassumptionsusedinherinitialanalysis.WhenreviewingHernández'swork,hersupervisor,ArturoCosta,notesthatshedidnotincludechangesinthedepreciationmethod,initialfixedcapitaloutlay,orinflationassumptionsinhersensitivityanalysis.Asaresult,Costaasksthefollowingquestions:Question1“Whatwouldbetheeffectontheproject'sNPViftheinitialfixedcapitalequipmentoutlayincreasedfrom€2,750,000to€3,000,000,everythingelseheldconstant?”Question2“Howwouldahigherthanexpectedinflationrateaffectthevalueoftherealtaxsavingsfromdepreciationandthevalueoftherealafter-taxinterestexpense,everythingelseheldconstant?”Question3“Youareusingarequiredrateofreturnof12percentwhenthecompany'sweightedaveragecostofcapital(WACC)is10percent.Whyareyouusingarequiredrateofreturnfortheprojectgreaterthanthecompany'sWACC?”Beforeendingthemeeting,CostatellsHernández:“Lastyearthecompanyproducedaprototypeatacostof€500,000.Nowmanagementishavingdoubtsaboutthemarketappealoftheproductinitscurrentdesign,andsotheyareconsideringdelayingthestartoftheprojectforayear,untiltheprototypecanbeshowntoindustryexperts.”[单选题]2.UsingHernández'sinitialfinancialpredictions,theestimatedterminalyearafter-taxnon-operatingcashflowisclosestto:A.€195,000.B.€270,000.C.€345,000.正确答案：C参考解析：Theterminalyearnon-operatingcashflowincludestheafter-taxsalvagevalueandtherecoveryofnetworkingcapital=€450,000×(1–0.40)+€75,000=€345,000.(Note:Terminalyearrecoveryofnetworkingcapitalinvestment=Decreaseincurrentassets–Decreaseincurrentliabilities=€200,000–€125,000=€75,000.)●Fixedcapitalequipmentoutlayis€2,750,000.●Atthebeginningoftheproject,arequiredincreaseincurrentassetsof€200,000andarequiredincreaseincurrentliabilitiesof€125,000.●Straight-linedepreciationtozerooverafive-yearlife.●Projectlifeoffiveyears.●Incrementalannualunitsalesof3,000ataunitpriceof€600.●Annualfixedcashexpensesof€125,000;variablecashexpensesof€125perunit.●Thecapitalequipmentisexpectedtobesoldfor€450,000attheendofYear5.Attheendoftheproject,thenetworkingcapitalinvestmentwillberecovered.●Taxrateof40percent.●Basedonthecapitalassetpricingmodel,therequiredrateofreturnis12percent.Hernándezestimatestheexpectednetpresentvalue(NPV)oftheprojecttobe€975,538andtheinternalrateofreturn(IRR)tobe24.6percent.Shealsoperformsasensitivityanalysisbychangingtheinputvariableassumptionsusedinherinitialanalysis.WhenreviewingHernández'swork,hersupervisor,ArturoCosta,notesthatshedidnotincludechangesinthedepreciationmethod,initialfixedcapitaloutlay,orinflationassumptionsinhersensitivityanalysis.Asaresult,Costaasksthefollowingquestions:Question1“Whatwouldbetheeffectontheproject'sNPViftheinitialfixedcapitalequipmentoutlayincreasedfrom€2,750,000to€3,000,000,everythingelseheldconstant?”Question2“Howwouldahigherthanexpectedinflationrateaffectthevalueoftherealtaxsavingsfromdepreciationandthevalueoftherealafter-taxinterestexpense,everythingelseheldconstant?”Question3“Youareusingarequiredrateofreturnof12percentwhenthecompany'sweightedaveragecostofcapital(WACC)is10percent.Whyareyouusingarequiredrateofreturnfortheprojectgreaterthanthecompany'sWACC?”Beforeendingthemeeting,CostatellsHernández:“Lastyearthecompanyproducedaprototypeatacostof€500,000.Nowmanagementishavingdoubtsaboutthemarketappealoftheproductinitscurrentdesign,andsotheyareconsideringdelayingthestartoftheprojectforayear,untiltheprototypecanbeshowntoindustryexperts.”[单选题]3.Hernández'sbestresponsetoCosta'sfirstquestionisthattheproject'sNPVwoulddecreasebyanamountclosestto:A.€142,000.B.€178,000.C.€250,000.正确答案：B参考解析：●Fixedcapitalequipmentoutlayis€2,750,000.●Atthebeginningoftheproject,arequiredincreaseincurrentassetsof€200,000andarequiredincreaseincurrentliabilitiesof€125,000.●Straight-linedepreciationtozerooverafive-yearlife.●Projectlifeoffiveyears.●Incrementalannualunitsalesof3,000ataunitpriceof€600.●Annualfixedcashexpensesof€125,000;variablecashexpensesof€125perunit.●Thecapitalequipmentisexpectedtobesoldfor€450,000attheendofYear5.Attheendoftheproject,thenetworkingcapitalinvestmentwillberecovered.●Taxrateof40percent.●Basedonthecapitalassetpricingmodel,therequiredrateofreturnis12percent.Hernándezestimatestheexpectednetpresentvalue(NPV)oftheprojecttobe€975,538andtheinternalrateofreturn(IRR)tobe24.6percent.Shealsoperformsasensitivityanalysisbychangingtheinputvariableassumptionsusedinherinitialanalysis.WhenreviewingHernández'swork,hersupervisor,ArturoCosta,notesthatshedidnotincludechangesinthedepreciationmethod,initialfixedcapitaloutlay,orinflationassumptionsinhersensitivityanalysis.Asaresult,Costaasksthefollowingquestions:Question1“Whatwouldbetheeffectontheproject'sNPViftheinitialfixedcapitalequipmentoutlayincreasedfrom€2,750,000to€3,000,000,everythingelseheldconstant?”Question2“Howwouldahigherthanexpectedinflationrateaffectthevalueoftherealtaxsavingsfromdepreciationandthevalueoftherealafter-taxinterestexpense,everythingelseheldconstant?”Question3“Youareusingarequiredrateofreturnof12percentwhenthecompany'sweightedaveragecostofcapital(WACC)is10percent.Whyareyouusingarequiredrateofreturnfortheprojectgreaterthanthecompany'sWACC?”Beforeendingthemeeting,CostatellsHernández:“Lastyearthecompanyproducedaprototypeatacostof€500,000.Nowmanagementishavingdoubtsaboutthemarketappealoftheproductinitscurrentdesign,andsotheyareconsideringdelayingthestartoftheprojectforayear,untiltheprototypecanbeshowntoindustryexperts.”[单选题]4.Hernández'sbestresponsetoCosta'ssecondquestionisthat:A.realtaxsavingsfromdepreciationandrealinterestexpensewouldbelower.B.realtaxsavingsfromdepreciationwouldbehigherandrealinterestexpensewouldbelower.C.realtaxsavingsfromdepreciationwouldbelowerandrealinterestexpensewouldbehigher.正确答案：A参考解析：Higherthanexpectedinflationincreasesthecorporation'srealtaxesbecauseitreducesthevalueofthedepreciationtaxshelter;italsodecreasestherealinterestexpensebecausepaymentstobondholdersinrealtermsarelowerthanexpected.●Fixedcapitalequipmentoutlayis€2,750,000.●Atthebeginningoftheproject,arequiredincreaseincurrentassetsof€200,000andarequiredincreaseincurrentliabilitiesof€125,000.●Straight-linedepreciationtozerooverafive-yearlife.●Projectlifeoffiveyears.●Incrementalannualunitsalesof3,000ataunitpriceof€600.●Annualfixedcashexpensesof€125,000;variablecashexpensesof€125perunit.●Thecapitalequipmentisexpectedtobesoldfor€450,000attheendofYear5.Attheendoftheproject,thenetworkingcapitalinvestmentwillberecovered.●Taxrateof40percent.●Basedonthecapitalassetpricingmodel,therequiredrateofreturnis12percent.Hernándezestimatestheexpectednetpresentvalue(NPV)oftheprojecttobe€975,538andtheinternalrateofreturn(IRR)tobe24.6percent.Shealsoperformsasensitivityanalysisbychangingtheinputvariableassumptionsusedinherinitialanalysis.WhenreviewingHernández'swork,hersupervisor,ArturoCosta,notesthatshedidnotincludechangesinthedepreciationmethod,initialfixedcapitaloutlay,orinflationassumptionsinhersensitivityanalysis.Asaresult,Costaasksthefollowingquestions:Question1“Whatwouldbetheeffectontheproject'sNPViftheinitialfixedcapitalequipmentoutlayincreasedfrom€2,750,000to€3,000,000,everythingelseheldconstant?”Question2“Howwouldahigherthanexpectedinflationrateaffectthevalueoftherealtaxsavingsfromdepreciationandthevalueoftherealafter-taxinterestexpense,everythingelseheldconstant?”Question3“Youareusingarequiredrateofreturnof12percentwhenthecompany'sweightedaveragecostofcapital(WACC)is10percent.Whyareyouusingarequiredrateofreturnfortheprojectgreaterthanthecompany'sWACC?”Beforeendingthemeeting,CostatellsHernández:“Lastyearthecompanyproducedaprototypeatacostof€500,000.Nowmanagementishavingdoubtsaboutthemarketappealoftheproductinitscurrentdesign,andsotheyareconsideringdelayingthestartoftheprojectforayear,untiltheprototypecanbeshowntoindustryexperts.”[单选题]5.Hernández'sbestresponsetoCosta'sthirdquestionis:“Because:A.theprojectwillplotabovethesecuritymarketline.”B.theproject'sbetaisgreaterthanthecompany'sbeta.”C.theproject'sIRRisgreaterthantherequiredrateofreturn.”正确答案：B参考解析：Whenaprojectismoreorlessriskythanthecompany,projectbetaandnotWACCshouldbeusedtoestablishtherequiredrateofreturnforthecapitalproject.Inthiscase,therequiredrateofreturnisgreaterthantheWACC,whichmeanstheprojectbeta(risk)isgreaterthanthecompany'sbeta.●Fixedcapitalequipmentoutlayis€2,750,000.●Atthebeginningoftheproject,arequiredincreaseincurrentassetsof€200,000andarequiredincreaseincurrentliabilitiesof€125,000.●Straight-linedepreciationtozerooverafive-yearlife.●Projectlifeoffiveyears.●Incrementalannualunitsalesof3,000ataunitpriceof€600.●Annualfixedcashexpensesof€125,000;variablecashexpensesof€125perunit.●Thecapitalequipmentisexpectedtobesoldfor€450,000attheendofYear5.Attheendoftheproject,thenetworkingcapitalinvestmentwillberecovered.●Taxrateof40percent.●Basedonthecapitalassetpricingmodel,therequiredrateofreturnis12percent.Hernándezestimatestheexpectednetpresentvalue(NPV)oftheprojecttobe€975,538andtheinternalrateofreturn(IRR)tobe24.6percent.Shealsoperformsasensitivityanalysisbychangingtheinputvariableassumptionsusedinherinitialanalysis.WhenreviewingHernández'swork,hersupervisor,ArturoCosta,notesthatshedidnotincludechangesinthedepreciationmethod,initialfixedcapitaloutlay,orinflationassumptionsinhersensitivityanalysis.Asaresult,Costaasksthefollowingquestions:Question1“Whatwouldbetheeffectontheproject'sNPViftheinitialfixedcapitalequipmentoutlayincreasedfrom€2,750,000to€3,000,000,everythingelseheldconstant?”Question2“Howwouldahigherthanexpectedinflationrateaffectthevalueoftherealtaxsavingsfromdepreciationandthevalueoftherealafter-taxinterestexpense,everythingelseheldconstant?”Question3“Youareusingarequiredrateofreturnof12percentwhenthecompany'sweightedaveragecostofcapital(WACC)is10percent.Whyareyouusingarequiredrateofreturnfortheprojectgreaterthanthecompany'sWACC?”Beforeendingthemeeting,CostatellsHernández:“Lastyearthecompanyproducedaprototypeatacostof€500,000.Nowmanagementishavingdoubtsaboutthemarketappealoftheproductinitscurrentdesign,andsotheyareconsideringdelayingthestartoftheprojectforayear,untiltheprototypecanbeshowntoindustryexperts.”[单选题]6.ShouldCosta'send-of-meetingcommentsresultinchangestoHernández'scapitalbudgetinganalysis?A.No.B.Yes,butonlytoincorporatethepossibledelay.C.Yes,toincorporateboththepossibledelayandthecostofproducingtheprototype.正确答案：B参考解析：Timingoptions(e.g.,delayinvesting)shouldbeincludedintheNPVanalysis,butsunkcostsshouldnot.LindsayWhite,CFA,isananalystwithafirminLondon,England.SheisresponsibleforcoveringfivecompaniesintheConsumerStaplesindustry.Whitebelievesthedomesticandglobaleconomieswillgrowslightlybelowaverageoverthenexttwoyears,butsheisalsoconcernedaboutthepossibilityofamildrecessiontakinghold.Shehasbeenaskedtoreviewthecompaniesthatshecovers,andshehascollectedinformationaboutthem,presentedinExhibit1.Whitehasestimatedthatearningsbeforeinterestandtaxes(EBIT)willremainconstantforallfivecompaniesfortheforeseeablefuture.CurrencyisintermsoftheBritishpound(￡).Themarginalcorporatetaxrateis30%forallfivecompanies.Basedonconversationswithmanagementofthefivecompanies,aswellasonherownindependentresearchandanalysis,Whitenotesthefollowing:Aquarius:●haslowerbondingcoststhandoesBema.●hasahigherpercentageoftangibleassetstototalassetsthandoesBema.●hasahigherdegreeofoperatingleveragethandoesBema.Garth:●investssignificantlylessinresearchanddevelopmentthandoesHolte.●hasamorehighlydevelopedcorporategovernancesystemthandoesHolte.●hasmorebusinessriskthandoesHolte.Inaddition,WhitehasreachedvariousconclusionsregardingannouncementsbyBema,Garth,andVega:AnnouncementBemahasannouncedthatitwillissuedebtandusetheproceedstorepurchaseshares.Asaresultofthisdebt-financedsharerepurchaseprogram,Bemaindicatesthatitsdebt/equityratiowillincreaseto0.6anditsbefore-taxcostofdebtwillbe6%.ConclusionAsaresultoftheannouncedprogram,Bema'stotalmarketvalueshoulddecreaserelativetoAquarius's.AnnouncementGarthhasannouncedthatitplanstoabandonthepriorpolicyofall-equityfinancingbytheissuanceof￡1millionindebtinordertobuybackanequivalentamountofequity.Garth'sbefore-taxcostofdebtis6%.ConclusionThischangeincapitalstructureisreasonable,butGarthshouldtakecaresubsequentlytomaintainalowerD/EratiothanHolte.AnnouncementVegahasannouncedthatitintendstoraisecapitalnextyear,butisunsureoftheappropriatemethodofraisingcapital.ConclusionWhitehasconcludedthatVegashouldapplythepeckingordertheorytodeterminetheappropriatemethodofraisingcapital.[单选题]7.BasedontheModiglianiandMiller(MM)propositionswithcorporatetaxes,Aquarius'sWACCisclosestto:A.3.38%.B.7.87%.C.11.25%.正确答案：B参考解析：●haslowerbondingcoststhandoesBema.●hasahigherpercentageoftangibleassetstototalassetsthandoesBema.●hasahigherdegreeofoperatingleveragethandoesBema.Garth:●investssignificantlylessinresearchanddevelopmentthandoesHolte.●hasamorehighlydevelopedcorporategovernancesystemthandoesHolte.●hasmorebusinessriskthandoesHolte.Inaddition,WhitehasreachedvariousconclusionsregardingannouncementsbyBema,Garth,andVega:AnnouncementBemahasannouncedthatitwillissuedebtandusetheproceedstorepurchaseshares.Asaresultofthisdebt-financedsharerepurchaseprogram,Bemaindicatesthatitsdebt/equityratiowillincreaseto0.6anditsbefore-taxcostofdebtwillbe6%.ConclusionAsaresultoftheannouncedprogram,Bema'stotalmarketvalueshoulddecreaserelativetoAquarius's.AnnouncementGarthhasannouncedthatitplanstoabandonthepriorpolicyofall-equityfinancingbytheissuanceof￡1millionindebtinordertobuybackanequivalentamountofequity.Garth'sbefore-taxcostofdebtis6%.ConclusionThischangeincapitalstructureisreasonable,butGarthshouldtakecaresubsequentlytomaintainalowerD/EratiothanHolte.AnnouncementVegahasannouncedthatitintendstoraisecapitalnextyear,butisunsureoftheappropriatemethodofraisingcapital.ConclusionWhitehasconcludedthatVegashouldapplythepeckingordertheorytodeterminetheappropriatemethodofraisingcapital.[单选题]8.BasedonMMpropositionswithcorporatetaxes,whatisBema'sweightedaveragecostofcapitalafterthecompletionofitsannounceddebt-financedsharerepurchaseprogram?A.6.52%.B.7.83%.C.8.88%.正确答案：C参考解析：●haslowerbondingcoststhandoesBema.●hasahigherpercentageoftangibleassetstototalassetsthandoesBema.●hasahigherdegreeofoperatingleveragethandoesBema.Garth:●investssignificantlylessinresearchanddevelopmentthandoesHolte.●hasamorehighlydevelopedcorporategovernancesystemthandoesHolte.●hasmorebusinessriskthandoesHolte.Inaddition,WhitehasreachedvariousconclusionsregardingannouncementsbyBema,Garth,andVega:AnnouncementBemahasannouncedthatitwillissuedebtandusetheproceedstorepurchaseshares.Asaresultofthisdebt-financedsharerepurchaseprogram,Bemaindicatesthatitsdebt/equityratiowillincreaseto0.6anditsbefore-taxcostofdebtwillbe6%.ConclusionAsaresultoftheannouncedprogram,Bema'stotalmarketvalueshoulddecreaserelativetoAquarius's.AnnouncementGarthhasannouncedthatitplanstoabandonthepriorpolicyofall-equityfinancingbytheissuanceof￡1millionindebtinordertobuybackanequivalentamountofequity.Garth'sbefore-taxcostofdebtis6%.ConclusionThischangeincapitalstructureisreasonable,butGarthshouldtakecaresubsequentlytomaintainalowerD/EratiothanHolte.AnnouncementVegahasannouncedthatitintendstoraisecapitalnextyear,butisunsureoftheappropriatemethodofraisingcapital.ConclusionWhitehasconcludedthatVegashouldapplythepeckingordertheorytodeterminetheappropriatemethodofraisingcapital.[单选题]9.BasedonExhibit1andWhite'snotes,whichofthefollowingisleastconsistentwithWhite'sconclusionregardingBema'sannouncement?A.Bema'sbondingcostswillbehigherthanAquarius's.B.BemawillhavealowerdegreeofoperatingleveragethandoesAquarius.C.BemawillhavealowerpercentageoftangibleassetstototalassetsthandoesAquarius.正确答案：B参考解析：IfBema'sdegreeofoperatingleveragedeclinesrelativetothatofAquarius,Bema'sbusinessriskwillalsodeclinerelativetoAquarius.Allelsebeingequal,thisdeclinewouldbeexpectedtoincreaseBema'smarketvaluerelativetoAquarius;e.g.,bydecreasingBema'scostofequity.●haslowerbondingcoststhandoesBema.●hasahigherpercentageoftangibleassetstototalassetsthandoesBema.●hasahigherdegreeofoperatingleveragethandoesBema.Garth:●investssignificantlylessinresearchanddevelopmentthandoesHolte.●hasamorehighlydevelopedcorporategovernancesystemthandoesHolte.●hasmorebusinessriskthandoesHolte.Inaddition,WhitehasreachedvariousconclusionsregardingannouncementsbyBema,Garth,andVega:AnnouncementBemahasannouncedthatitwillissuedebtandusetheproceedstorepurchaseshares.Asaresultofthisdebt-financedsharerepurchaseprogram,Bemaindicatesthatitsdebt/equityratiowillincreaseto0.6anditsbefore-taxcostofdebtwillbe6%.ConclusionAsaresultoftheannouncedprogram,Bema'stotalmarketvalueshoulddecreaserelativetoAquarius's.AnnouncementGarthhasannouncedthatitplanstoabandonthepriorpolicyofall-equityfinancingbytheissuanceof￡1millionindebtinordertobuybackanequivalentamountofequity.Garth'sbefore-taxcostofdebtis6%.ConclusionThischangeincapitalstructureisreasonable,butGarthshouldtakecaresubsequentlytomaintainalowerD/EratiothanHolte.AnnouncementVegahasannouncedthatitintendstoraisecapitalnextyear,butisunsureoftheappropriatemethodofraisingcapital.ConclusionWhitehasconcludedthatVegashouldapplythepeckingordertheorytodeterminetheappropriatemethodofraisingcapital.[单选题]10.BasedontheMMpropositionswithcorporatetaxes,Garth'scostofequityafterthedebtissuanceisclosestto:A.10.00%.B.10.85%.C.11.33%.正确答案：C参考解析：●haslowerbondingcoststhandoesBema.●hasahigherpercentageoftangibleassetstototalassetsthandoesBema.●hasahigherdegreeofoperatingleveragethandoesBema.Garth:●investssignificantlylessinresearchanddevelopmentthandoesHolte.●hasamorehighlydevelopedcorporategovernancesystemthandoesHolte.●hasmorebusinessriskthandoesHolte.Inaddition,WhitehasreachedvariousconclusionsregardingannouncementsbyBema,Garth,andVega:AnnouncementBemahasannouncedthatitwillissuedebtandusetheproceedstorepurchaseshares.Asaresultofthisdebt-financedsharerepurchaseprogram,Bemaindicatesthatitsdebt/equityratiowillincreaseto0.6anditsbefore-taxcostofdebtwillbe6%.ConclusionAsaresultoftheannouncedprogram,Bema'stotalmarketvalueshoulddecreaserelativetoAquarius's.AnnouncementGarthhasannouncedthatitplanstoabandonthepriorpolicyofall-equityfinancingbytheissuanceof￡1millionindebtinordertobuybackanequivalentamountofequity.Garth'sbefore-taxcostofdebtis6%.ConclusionThischangeincapitalstructureisreasonable,butGarthshouldtakecaresubsequentlytomaintainalowerD/EratiothanHolte.AnnouncementVegahasannouncedthatitintendstoraisecapitalnextyear,butisunsureoftheappropriatemethodofraisingcapital.ConclusionWhitehasconcludedthatVegashouldapplythepeckingordertheorytodeterminetheappropriatemethodofraisingcapital.[单选题]11.BasedonExhibit1andWhite'snotes,whichofthefollowingismostconsistentwithWhite'sconclusionregardingGarth'sannouncement?A.GarthhasmorebusinessriskthandoesHolte.B.GarthinvestssignificantlylessinresearchanddevelopmentthandoesHolte.C.GarthhasamorehighlydevelopedcorporategovernancesystemthandoesHolte.正确答案：A参考解析：ThestatementimpliesthatGarthpossessesalowerabilitytoassumedebtthandoesHolte,allelsebeingequal.●haslowerbondingcoststhandoesBema.●hasahigherpercentageoftangibleassetstototalassetsthandoesBema.●hasahigherdegreeofoperatingleveragethandoesBema.Garth:●investssignificantlylessinresearchanddevelopmentthandoesHolte.●hasamorehighlydevelopedcorporategovernancesystemthandoesHolte.●hasmorebusinessriskthandoesHolte.Inaddition,WhitehasreachedvariousconclusionsregardingannouncementsbyBema,Garth,andVega:AnnouncementBemahasannouncedthatitwillissuedebtandusetheproceedstorepurchaseshares.Asaresultofthisdebt-financedsharerepurchaseprogram,Bemaindicatesthatitsdebt/equityratiowillincreaseto0.6anditsbefore-taxcostofdebtwillbe6%.ConclusionAsaresultoftheannouncedprogram,Bema'stotalmarketvalueshoulddecreaserelativetoAquarius's.AnnouncementGarthhasannouncedthatitplanstoabandonthepriorpolic