Capital Budgeting and Risk
罗斯公司理财英文练习题附带答案第九章十一月整理
罗斯公司理财英文练习题附带答案第九章十一月整理CHAPTER 111CHAPTER 9Risk Analysis, Real Options, and Capital BudgetingMultiple Choe Questions:I. DEFINITIONSSCENARIO ANALYSISb 1. An analysis of what hens to the estimate of the present value when you eamine a number of different likely situations is calledanalysis. a. forecastingb. scenarioc. sensitivityd. simulatione. break-evenDiffulty level: EasySENSITIVITY ANALYSISc 2. An analysis of what hens to the estimate of present value when only one variable is changed is calledanalysis. a. forecastingb. scenarioc. sensitivityd. simulatione. break-evenDiffulty level: EasySIMULATION ANALYSISd 3. An analysis whh bines scenario analysis withsensitivity analysis is calledanalysis. a. forecastingb. scenarioc. sensitivityd. simulatione. break-evenDiffulty level: EasyBREAK-EVEN ANALYSISe 4. An analysis of the relationship between the sales volume and various measures of profitability is calledanalysis. a. forecastingb. scenarioc. sensitivityd. simulatione. break-evenDiffulty level: EasyVARIABLE COSTSa 5. Variable costs:a. change in direct relationship to the quantity of output produced.b. are constant in the short-run regardless of the quantity of output produced.c. reflect the change in a variable when one more unit of output is produced. d. are subtracted from fied costs to pute the contribution marn.e. form the basis that isused to determine the degree of operating leverage employed by a firm.Diffulty level: EasyFIED COSTSb 6. Fied costs:a. change as the quantity of output produced changes.b.are constant over the short-run regardless of the quantity of output produced. c. reflect the change in a variable when one more unit of output is produced. d. are subtracted from sales to pute the contribution marn. e. can be ignored in scenario analysis since they are constant over the life of a project. Diffulty level: Easy ACCOUNTING BREAK-EVENc 7. The sales level that results in a project’s ine eactly equaling zero is called thebreak-even. a. operationalb. leveragedc. accountingd. cashe. present valueDiffulty level: EasyPRESENT VALUE BREAK-EVENe 8. The sales level that results in a project’s present value eactly equaling zero is called thebreak-even. a. operationalb. leveragedc. accountingd. cashe. present valueDiffulty level: EasyII. CONCEPTSSCENARIO ANALYSISb 9. Conducting scenario analysis helps managers see the:a. impact of an individual variable on the oute of a project.b. potential range of outes from a proposed project.c.changes in long-term debt over the course of a proposed project.d. possible range of market pres for their stock over the life of a project.e. allocation distribution of funds for capital projects under conditions of hard rationing. Diffulty level: Easy SENSITIVITY ANALYSISb 10. Sensitivity analysis helps you determine the:a. range of possible outes ven possible ranges for every variable.b. degree to whh the present value reacts to changes in a single variable.c. present value ven the best and the worst possible situations.d. degree to whh a project is reliant upon the fied costs.e. level of variable costs in relation to the fied costs of a project. Diffulty level: EasySENSITIVITY ANALYSISc 11. As the degree of sensitivity of a project to a single variable rises, the:a. lower the forecasting risk of the project.b.smaller the range of possible outes ven a pre-defined range of values for theinput. c. more attention management should place on accurately forecasting the future value ofthat variable. d. lower the maimum potential value of the project. e. lower the maimum potential loss of the project.Diffulty level: MediumSENSITIVITY ANALYSISc 12. Sensitivity analysis is conducted by:a. holding all variables at their base level and channg the required rate of returnassigned to a project. b. channg the value of two variables to determine their interdependency. c. channg the value of a single variable and puting the resulting change in thecurrent value of a project. d. assigning either the best or the worst possible value to each variable and paring theresults to those achieved by the base case. e. managers after a project has been implemented to determine how each variable relates to the level of output realized. Diffulty level: MediumSENSITIVITY ANALYSISd 13. To ascertain whether the accuracy of the variable cost estimate for a project will havemuch effect on the final oute of the project, you should probably conductanalysis. a. leverageb. scenarioc. break-evend. sensitivitye. cash flowDiffulty level: EasySIMULATIONd 14. Simulation analysis is based on assigning aand analyzing the results. a. narrow range of values to a single variableb. narrow range of values to multiple variables simultaneouslyc. wide range of values to a single variabled. wide range of values to multiple variables simultaneouslye. single value to each of the variablesDiffulty level: MediumSIMULATIONe 15. The type of analysis that is most dependent upon the use of a puter isanalysis. a. scenariob. break-evenc. sensitivityd. degree of operating leveragee. simulationDiffulty level: EasyVARIABLE COSTSd 16. Whh one of the follog is most likely a variable cost?a. offe rentb. property taesc. property insuranced. direct labor costse. management salariesDiffulty level: EasyVARIABLE COSTSa 17. Whh of the follog statements concerning variable costs is (are) correct?I. Variable costs minus fied costs equal marnalII. Variable costs are equal to zero when production is equal to zero. III. An increase in variable costs increases the operating cash flow. a. II onlyb. III onlyc. I and III onlyd. II and III onlye. I and II onlyDiffulty level: MediumVARIABLE COSTSa 18. All else constant, as the variable cost per unit increases, the:a. contribution marn decreases.b. sensitivity to fied costs decreases.c. degree of operating leverage decreases.d.operating cash flow increases. e. profit increases.Diffulty level: MediumFIED COSTSc 19. Fied costs:I. II. must be paid even if production is halted. III.are generally affected by the amount of fied assets owned by a firm. IV. per unit remain constant over a ven range of production output. a. I and III onlyb. II and IV onlyc. I, II, and III onlyd. I, II, and IV onlye. I, II, III, and IVDiffulty level: MediumCONTRIBUTION MARNc 20. The contribution marn must increase as:a. both the sales pre and variable cost per unit increase.b. the fied cost per unit declines.c. the gap between the sales pre and the variable cost per unit widens.d. sales pre per unit declines.e. the sales pre minus the fied cost per unit increases. Diffulty level: MediumACCOUNTING BREAK-EVENa 21. Whh of the follog statements are correct concerning the accounting break-evenpoint?I. The ine is equal to zero at the accounting break-even point.II. The present value is equal to zero at the accounting break-even point. III. The quantity sold at the accounting break-even point is equal to the total fied costs plus depreciation divided by the contribution marn. IV. The quantity sold at the accounting break-even point is equal to the total fied costs divided by the contribution marn. a. I and III onlyb. I and IV onlyc. II and III onlyd. II and IV onlye. I, II, and IV onlyDiffulty level: MediumACCOUNTING BREAK-EVENb 22. All else constant, the accounting break-even level of sales will decrease when the:a. fied costs increase.b. depreciation epense decreases.c. contribution marn decreases.d. variable costs per unit increase. e. selling pre per unit decreases. Diffulty level: MediumPRESENT VALUE BREAK-EVENd 23. The point where a project produces a rate of return equal to the required return isknown as the:a. point of zero operating leverage.b. internal break-even point.c. accounting break-even point.d. present value break-even point.e. internal break-even point. Diffulty level: EasyPRESENT VALUE BREAK-EVENb 24. Whh of the follog statements are correct concerning the present value break-evenpoint of a project?I. The present value of the cash inflows equals the amount of the initial investment. II. The payback period of the project is equal to the life of the project. III. The operating cash flow is at alevel that produces a present value of zero. IV. The project never pays back on a discounted basis. a. I and II onlyb. I and III onlyc. II and IV onlyd. III and IV onlye. I, III, and IV onlyDiffulty level: MediumINVESTMENT TIMING DECISIONb 25. The investment timing decision relates to:a. how long the cash flows last once a project is implemented.b. the decision as to when a project should be started.c.how frequently the cash flows of a project occur. d. how frequently the interest on the debt incurred to finance a project ispounded. e. the decision to either finance a project over time or pay out the initial cost in cash. Diffulty level: Medium OPTION TO WAITe 26. The timing option that ves the option to wait:I. may be of minimal value if the project relates to a rapidly chaII. is partially dependent upon the discount rate lied to the project being evaluated. III. is defined as the situation where operations are shut down for a period of time. IV. has a value equal to the present value of the project if it is started today versus the present value if it is started at some later date. a. I and III onlyb. II and IV onlyc. I and II onlyd. II, III, and IV onlye. I, II, and IV onlyDiffulty level: ChallengeOPTION TO EPANDb 27. Last month you introduced a new product to the market.Consumer demand has beenoverwhelming and ears that strong demand will eist over the long-term.ven thissituation, management should consider the option to:a. suspend.b. epand.c. abandon.d.contract. e. withdraw. Diffulty level: EasyOPTION TO EPANDc 28. Including the option to epand in your project analysis will tend to:a. etend the duration of a project but not affect theproject’s present value. b. increase the cash flows of a project but decrease the project’s present value. c. increase the present value of a project. d. decrease the present value of a project. e. have no effect on either a project’s cash flows orits present value. Diffulty level: MediumSENSITIVITY AND SENARIO ANALYSISd 29. Theoretally, the NPV is the most ropriate method to determine the acceptability of a project. A false sense of security can be overwhelm the decision-maker when the procedure is lied properly and the positive NPV results are accepted blindly. Sensitivity and scenario analysis aid in the process bya. channg the underlying assumptions on whh the decision is based.b. highlights the areas where more and better data are needed.c. providing a pture of how an event can affect the calculations.d. All of the above. e. None of the above.Diffulty level: MediumDECSION TREEa 30. In order to make a decision with a decision treea. one starts farthest out in time to make the first decision.b. one must ben at time 0.c. any path can be taken to get to the end. d. any path can be taken to get back to the benning.e. None of the above. Diffulty level: MediumDECISION TREEc 31. In a decision tree, the NPV to make the yes/no decision is dependent ona. only the cash flows from successful path.b. on the path where the probabilities add up to one.c. all cash flows andprobabilities. d. only the cash flows and probabilities of the successful path. e. None of the above. Diffulty level: Medium DECISION TREEe 32. In a decision tree, caution should be used in analysis becausea. early stage decisions are probably riskier and should not likely use the same discount rate.b. if a negative NPV is actually occurring, management should opt out of the project and minimize their loss.c. decision trees are only used for planning, not actuallydaily management. d. Both A and C. e. Both A and B.Diffulty level: MediumSENSITIVITY ANALYSISd 33. Sensitivity analysis evaluates the NPV with respect toa. changes in the underlying assumptions.b. one variable channg while holding the others constant.c. different econom conditions.d. All of the above. e. None of the above.Diffulty level: MediumSENSITIVITY ANALYSISd 34. Sensitivity analysis provides information ona. whether the NPV should be trusted, it may provide a false sense of security if all NPVs are positive.b. the need for additional information as it tests each variable in isolation.c.the degree of diffulty in channg multiple variables together.d. Both A and B.e. Both A and C. Diffulty level: MediumFIED COSTSb 35. Fied production costs area. directly related to labor costs.b. measured as cost per unit of time.c. measured as cost per unit of output.d.dependent on the amount of goods or serves produced. e. None of the above. Diffulty level: MediumVARIABLE COSTSd 36. Variable costsa. change as the quantity of output changes.b. are zero when production is zero.c. are eemplified by direct labor and raw materials.d. All of the above. e. None of the above.Diffulty level: EasySENSITIVITY ANALYSISb 37. An investigation of the degree to whh NPV depends on assumptions made about any singular crital variable is called a(n)a. operating analysis.b. sensitivity analysis.c.marnal benefit analysis. d. decision tree analysis. e.None of the above. Diffulty level: EasySENSITIVITY AND SCENARIOS ANALYSISb 38. Scenario analysis is different than sensitivity analysisa. as no econom forecasts are changed.b. as several variables are changed together.c. because scenario analysis deals with actual data versus sensitivity analysis whh deals with a forecast.d. because it is short and simple. e. because it is #;by the seat of the pants#; technique. Diffulty level: Medium EQUIVALENT ANNUAL COSTc 39. In the present-value break-even the EAC is used toa. determine the opportunity cost of investment.b.allocate depreciation over the life of the project. c.allocate the initial investment at its opportunity cost over the life of the project. d. determine the contribution marn to fied costs. e. None of the above. Diffulty level: Medium BREAK-EVENb 40. The present value break-even point is superior to the accounting break-even point becausea. present value break-even is more plated to calculate.b.present value break-even covers the econom opportunity costs of the investment. c. present value break-even is the same as sensitivity analysis. d. present value break-even covers the fied costs of production, whh the accounting break-even does not. e.present value break-even covers the variable costs of production, whh the accounting break-even does not. Diffulty level: Easy ABANDONMENTd 41. The potential decision to abandon a project has option value becausea. abandonment can occur at any future point in time.b.a project may be worth more dead than alive. c. management is not locked into a negative oute. d. All of the above. e. None of the above. Diffulty level: EasyTYPES OF BREAK-EVEN ANALYSISd 42. Whh of the follog are types of break-even analysis?a. present value break-evenb. accounting profit break-evenc. market value break-evend. Both A and B.e. Both A and C. Diffulty level: EasyMONTE CARLO SIMULATIONc 43. The roach that further attempts to model real word uncertainty by analyzing projects the way one might analyze gambling stratees is calleda. gamblers roach.b. blackjack roach.c. Monte Carlo simulation.d. scenario analysis.e. sensitivity analysis.Diffulty level: MediumMONTE CARLOc 44. Monte Carlo simulation isa. the most widely used by eecutives.b. a very simple formula.c. provides a more plete analysis that sensitivity or scenario.d. the oldest capital budgeting technique. e. None of the above. Diffulty level: EasyOPTIONS IN CAPITAL BUDGETINGd 45. Whh of the follog are hidden options in capital budgeting?a. option to epand.b. timing option.c. option to abandon.d. All of the above. e. None of the above.Diffulty level: EasyIII. PROBLEMSUse this information to answer questions 46 through 50.The Adept Co.is analyzing a proposed project.The pany epects to sell 2,500units, ve or take 10 percent.The epected variable cost per unit is $8 and the epected fied costs are $12,500.Cost estimates are considered accurate within a plus or minus 5 percent range.The depreciation epense is $4,000.The sale pre is estimated at $16 a unit, ve or take 2 percent.The pany bases their sensitivity analysis on the epected case scenario.SCENARIO ANALYSISd 46. What is the sales revenue under the optimist case scenario?a. $40,000b. $43,120c. $44,000d. $44,880e. $48,400Diffulty level: MediumSCENARIO ANALYSISd 47. What is the contribution marn under the epected case scenario?a. $2.67b. $3.00c. $7.92d. $8.00e. $8.72Diffulty level: MediumSCENARIO ANALYSISc 48. What is the amount of the fied cost per unit under the pessimist case scenario?a. $4.55b. $5.00c. $5.83d. $6.02e. $6.55Diffulty level: MediumSENSITIVITY ANALYSISb 49. The pany is conducting a sensitivity analysis on the sales pre using a salespre estimate of $ing this value, the earnings before interest and taes will be:a. $4,000b. $6,000c. $8,500d. $10,000e. $18,500Diffulty level: MediumSENSITIVITY ANALYSISb 50. The pany conducts a sensitivity analysis using a variable cost of $9.The totalvariable cost estimate will be:a. $21,375b. $22,500c. $23,625d. $24,125e. $24,750Diffulty level: MediumUse this information to answer questions 51 through 55.The Can-Do Co.is analyzing a proposed project.The pany epects to sell 12,000units, ve or take 4 percent.The epected variable cost per unit is $7 and the epected fied cost is $36,000.The fied and variable cost estimates are considered accurate within a plus or minus 6 percent range.The depreciation epense is $30,000.The ta rate is 34 percent.The sale pre is estimated at $14 a unit, ve or take 5 percent.The pany basestheir sensitivity analysis on the epected case scenario.SCENARIO ANALYSISa 51. What is the earnings before interest and taes under the epected case scenario?a. $18,000b. $24,000c. $36,000d. $48,000e. $54,000Diffulty level: MediumSCENARIO ANALYSISc 52. What is the earnings before interest and taes under anoptimist case scenario?a. $22,694.40b. $24,854.40c. $37,497.60d. $52,694.40e. $67,947.60Diffulty level: ChallengeSCENARIO ANALYSISb 53. What is the earnings before interest and taes under the pessimist case scenario?a. -$566.02b. -$422.40c. -$278.78d. $3,554.50e. $5,385.60Diffulty level: ChallengeSENSITIVITY ANALYSISd 54. What is the operating cash flow for a sensitivity analysis using total fied costs of$32,000?a. $14,520b. $16,520c. $22,000d. $44,520e. $52,000Diffulty level: MediumSENSITIVITY ANALYSISd 55. What is the contribution marn for a sensitivity analysis using a variable cost per unit of $8?a. $3b. $4c. $5d. $6e. $7Diffulty level:。
Capital Budgeting and risk
Coefficient of Variation
– equal to standard deviation / expected value – larger the coefficient of variation greater the risk
6c-11
Issues to Consider in Multinational Capital Budgeting
• A variety of factors may affect the capital budgeting analysis : 1. Exchange rate fluctuations
3. Financing arrangement
– Many foreign projects are partially financed by foreign subsidiaries.
6c-12
Issues to Consider in Multinational Capital Budgeting
Year
1 2 3 4 5
Investment B (10% discount rate)
$1,500 2,000 2,500 5,000 5,000 x x x x x 0.909 0.826 0.751 0.683 0.621 = $1,364 = 1,652 = 1,878 = 3,415 = 3,105 $11,414
Although both projects are acceptable, if they are mutually exclusive, only B would be undertaken.
财务管理英文第十三版
Corporate Capital Gains / Losses
Currently, capital gains are taxed at ordinary income tax rates for corporations, or a maximum 35%.
The Capital Budgeting Process
Generate investment proposals consistent with the firm’s strategic objectives.
Estimate after-tax incremental operating cash flows for the investment projects.
c) - (+) Taxes (tax savings) due to asset sale or disposal of “new” assets
d) + (-) Decreased (increased) level of “net” working capital
e) = Terminal year incremental net cash flow
Depreciation and the MACRS Method
Everything else equal, the greater the depreciation charges, the lower the taxes paid by the firm.
企业财务管理基础知识英文版
The income statement includes items such as operating income, operating costs, taxes and surcharges, period expenses, operating profit, and total profit. Through these data, the profitability and operating efficiency of the enterprise can be understood.
Fundamentals of Enterprise Financial Management
CATALOGUE
目录
Overview of Enterprise Financial ManagementFinancial statements and analysisCapital budgeting and investment decision makingFundraising and Capital Structure ManagementWorking capital management
Financial ratio analysis: By calculating various financial ratios, such as current ratio, quick ratio, inventory turnover ratio, accounts receivable turnover ratio, etc., evaluate a company's debt paying ability, operating ability, and profitability.
大一财务管理的英语知识点
大一财务管理的英语知识点一、Introduction to Financial ManagementFinancial management is a crucial aspect of business operations, involving the planning, organizing, controlling, and monitoring of financial resources. It plays a vital role in determining the financial health of a company and maximizing its value for shareholders. To excel in the field of financial management, it is essential to have a strong understanding of key concepts and principles in English. In this article, we will explore some important English knowledge points related to financial management for first-year college students.二、Financial StatementsFinancial statements are essential tools used by managers, investors, and creditors to analyze a company's performance and financial position. There are three main types of financial statements: the balance sheet, income statement, and cash flow statement.1. Balance SheetThe balance sheet provides a snapshot of a company's financial position at a specific point in time. It consists of three key components: assets, liabilities, and equity. Assets represent what the company owns,liabilities represent what the company owes, and equity represents the shareholders' ownership in the company.2. Income StatementThe income statement, also known as the profit and loss statement, shows a company's revenues, expenses, and net income (or loss) over a specific period. It helps assess a company's profitability and overall performance.3. Cash Flow StatementThe cash flow statement tracks the inflows and outflows of cash within a company during a given period. It provides information about the company's operating, investing, and financing activities and helps evaluate its liquidity and ability to generate cash.三、Financial RatiosFinancial ratios are useful tools for analyzing a company's financial performance and comparing it to industry standards. Here are some commonly used financial ratios:1. Liquidity RatiosLiquidity ratios measure a company's ability to meet short-term obligations. Examples include the current ratio (current assets divided by current liabilities) and the quick ratio (quick assets divided by current liabilities).2. Solvency RatiosSolvency ratios assess a company's long-term financial stability and its ability to meet long-term obligations. The debt-to-equity ratio (total debt divided by total equity) and the interest coverage ratio (earnings before interest and taxes divided by interest expense) are examples of solvency ratios.3. Profitability RatiosProfitability ratios measure a company's ability to generate profits relative to its assets, equity, or sales. Common examples include return on assets (net income divided by average total assets) and return on equity (net income divided by average total equity).四、Capital BudgetingCapital budgeting refers to the process of evaluating and selecting long-term investment projects. It involves estimating the future cash flows associated with each investment opportunity and determining itsviability. Several methods are used in capital budgeting, including net present value (NPV), internal rate of return (IRR), and payback period analysis.1. Net Present Value (NPV)NPV measures the profitability of an investment by comparing the present value of expected cash inflows to the present value of cash outflows. A positive NPV indicates that the investment is expected to generate a return higher than the cost of capital.2. Internal Rate of Return (IRR)IRR is the discount rate at which the present value of cash inflows equals the present value of cash outflows. It represents the expected rate of return for the investment and is used to rank different investment projects.3. Payback Period AnalysisPayback period analysis calculates the length of time required for an investment to recover its initial cost. It is a simple method that helps assess the risk and liquidity of an investment.五、Risk ManagementRisk management involves identifying, assessing, and mitigating potential risks that may impact a company's financial performance. It is crucial for financial managers to understand different types of risks and implement strategies to manage them effectively.1. Market RiskMarket risk refers to the uncertainty associated with changes in market conditions, such as interest rates, exchange rates, and stock prices. Hedging techniques, diversification, and financial derivatives are commonly used to manage market risk.2. Credit RiskCredit risk arises from the possibility of default by borrowers or counterparties. Credit analysis, credit ratings, and risk diversification are common strategies employed to manage credit risk.3. Operational RiskOperational risk relates to risks arising from internal processes, systems, and human error. Implementing robust internal controls, conducting regular audits, and maintaining proper insurance coverage are essential to manage operational risk.六、ConclusionAs first-year college students studying financial management, it is essential to grasp the fundamental knowledge and concepts in English. This article has provided an overview of key knowledge points in financial management, including financial statements, financial ratios, capital budgeting, and risk management. By developing a solid understanding of these topics, students can lay a strong foundation for their future studies and career in the field of finance.。
capital budgeting名词解释
capital budgeting名词解释
资本预算（Capital Budgeting）是指在一定时期内，企业根据所处环境和
自身经营状况，对所需的资本支出进行规划、预算和安排的过程。
这个过程涉及到对各种投资项目进行评估、选择和优先级排序，以确定哪些项目能够为企业带来最大的经济利益。
资本预算的主要目的是为了确定企业的投资方向和规模，以实现企业的长期发展战略和目标。
资本预算的内容通常包括以下几个方面：
1. 投资项目的收集和整理：企业需要对各种可能的项目进行收集和整理，了解每个项目的投资规模、预期收益、风险等基本情况。
2. 投资项目的评估和选择：企业需要对各个项目进行评估，确定其可行性、经济性和优先级，并选择最优的项目进行投资。
3. 投资计划的制定和实施：企业需要制定具体的投资计划，包括投资的时间、规模、方式等，并按照计划进行实施。
4. 投资效益的监测和评估：企业需要对投资的效益进行监测和评估，及时发现并解决存在的问题，确保投资的效益最大化。
在资本预算过程中，企业需要综合考虑各种因素，如市场需求、技术进步、竞争环境等，以制定出科学、合理、可行的资本预算方案。
同时，企业还需
要根据实际情况不断调整和优化资本预算方案，以实现资本的有效配置和利用。
公司理财(罗斯)第1章(英文
03 Valuation Basis
The concept and significance of valuation
要点一
Definition
Valuation is the process of estimating the worth of an asset or a company, typically through the use of financial metrics and analysis.
The Time Value of Money
Capital Budgeting
PBP Solution
0
-40 K (-b)
Cumulative Inflows
6b-15
1
10 K
10 K
2
12 K
22 K
3 (a
) 15 K 37 K (c)
4
10 K (d)
47 K
5
7K
54 K
PBP
=a+(b-c)/d = 3 + (40 - 37) / 10 = 3 + (3) / 10 = 3.3 Years
Ignore sunk costs Include opportunity costs Include project-driven changes in working capital net of spontaneous changes in current liabilities Include effects of inflation
6b-5
Capital Budgeting Process
• Generates investment proposals consistent with the firm’s strategic objectives. • Estimates after-tax incremental operating cash flows for the investment projects. • Evaluates project incremental cash flows. • Selects projects based on a valuemaximising acceptance criterion. • Reevaluates implemented investment projects continually and performs postaudits for completed projects.
《财务管理基础第13版》相关章节答案
. © Pearson Education Limited 2008
Chapter 1: The Role of Financial Management
ANSWERS TO QUESTIONS
1. With an objective of maximizing shareholder wealth, capital will tend to be allocated to the most productive investment opportunities on a risk-adjusted return basis. Other decisions will also be made to maximize efficiency. If all firms do this, productivity will be heightened and the economy will realize higher real growth. There will be a greater level of overall economic want satisfaction. Presumably people overall will benefit, but this depends in part on the redistribution of income and wealth via taxation and social programs. In other words, the economic pie will grow larger and everybody should be better off if there is no reslicing. With reslicing, it is possible some people will be worse off, but that is the result of a governmental change in redistribution. It is not due to the objective function of corporations.
Contemporary Financial Management 10th现代财务管理英文版全套习题
Contemporary Financial Management 10th现代财务管理英文版全套习题ContentsChapter 1 The Role and Objective of Financial Management 1 Chapter 2 The Domestic and International Financial Marketplace 13 Appendix 2A Taxes 26Chapter 3 Evaluation of Financial Performance 31Chapter 4 Financial Planning and Forecasting 51Chapter 5 The Time Value of Money 66Appendix 5A Continuous Compounding and Discounting 95 Chapter 6 Analysis of Risk and Return 99Chapter 7 Fixed Income Securities: Characteristics and Valuation 127 Chapter 8 Common Stock: Characteristics, Valuation, and Issuance 153 Chapter 9 Capital Budgeting and Cash Flow Analysis 179 Chapter 10 Capital Budgeting: Decision Criteria and Real Option Considerations 202 Appendix 10A Mutually Exclusive Investments Having Unequal Lives 221 Chapter 11 Capital Budgeting and Risk 228Chapter 12 The Cost of Capital 246Chapter 13 Capital Structure Concepts 270Chapter 14 Capital Structure Management in Practice 285 Chapter 15 Dividend Policy 306Chapter 16 Working Capital Policy and Short-Term Financing 327 Chapter 17 The Management of Cash and Marketable Securities 344 Chapter18 Management of Accounts Receivable and Inventories 360 Chapter 19 Lease and Intermediate-Term Financing 376 Chapter 20 Financing with Derivatives 388Appendix 20B Bond Refunding Analysis 404Chapter 21 Risk Management 408Chapter 22 International Financial Management 415Chapter 23 Corporate Restructuring 425Chapter 1The Role and Objective of Financial ManagementMULTIPLE CHOICE1. The primary objective of the firm is:a. Shareholder wealth maximizationb. Social responsibilityc. Long run survivald. Profit maximizationANS: A OBJ: TYPE: Fact TOP: A Foundation Concept2. The limitations of the profit maximization goal include:a. It lacks a time dimension (i.e., it is static)b. It fails to consider riskc. The definition of profit is ambiguousd. All the above are limitationsANS: D OBJ: TYPE: FactTOP: Maximization of shareholder wealth: Managerial strategies3. The shareholder wealth maximization goal states that management should seek tomaximize the _______ of the expected future returns to the owners of the firm.a. Future valueb. Compound valuec. Percentage valued. Present valueANS: D OBJ: TYPE: Fact TOP: A Foundation Concept4. Shareholder returns can take the form ofa. Periodic dividend paymentsb. Proceeds from the sale of the stockc. Periodic interest paymentsd. Periodic dividend payments and proceeds from the sale of the stockANS: D OBJ: TYPE: Fact TOP: A Foundation Concept5. Shareholder wealth is measured by the ________ of the shareholders' common stockholdings.a. Book valueb. Market valuec. Historic valued. Compound valueANS: B OBJ: TYPE: Fact TOP: A Foundation Concept6. The objective of maximizing shareholder wealth, as measured by the market value of thefirm's stocka. does not consider the timing of the benefits receivedb. provides a way to consider the risk of the returns being offeredc. benefits only certain stockholdersd. neither considers the timing of the benefits received norbenefits only certainstockholdersANS: B OBJ: TYPE: Fact TOP: A Foundation Concept7. The two most important disciplines on which financial management relies area. accounting and productionb. accounting and marketingc. economics and marketingd. accounting and economicsANS: D OBJ: TYPE: Fact TOP: Financial management and other disciplines8. The most widely accepted objective of the firm is toa. minimize riskb. maximize profitsc. maximize shareholder wealthd. maximize earnings per shareANS: C OBJ: TYPE: Fact TOP: A Foundation Concept9. The ______ the risk of receiving future cash flows, the ______ will be the present valueof those cash flows.a. greater, greaterb. greater, lowerc. lower, lowerd. lower, greaterANS: B OBJ: TYPE: Fact TOP: Risk10. A major advantage of using the maximization of shareholder wealth as the primary goalof the firm is that this goal considersa. the timing and the risk of the expected benefits to be receivedb. the investor's consumption utilityc. the value of closely held partnershipsd. all the aboveANS: A OBJ: TYPE: Fact TOP: A Foundation Concept11. The primary reason for the divergence between the shareholder wealth maximization goaland the actual goals pursued by management has been attributed toa. separation of social responsibility and stakeholders' concernsb. separation of ownership and controlc. separation of personal welfare and long-run profit goalsd. the granting of "golden parachute" contractsANS: B OBJ: TYPE: Fact TOP: Divergent objectives12. Giving top management _______ is one method that ensures managers will act in theinterest of shareholders in merger decisions.a. "golden parachute" contractsb. excellent payc. executive perksd. job securityANS: A OBJ: TYPE: Fact TOP: Divergent objectives13. _____ arise from the divergent objectives between owners and managers.a. Shareholder relationshipsb. Stakeholder problemsc. Creditor problemsd. Agency problemsANS: D OBJ: TYPE: Fact TOP: Agency problems14. Agency costs include all of the following except:a. expenditures to monitor management's actionsb. providing stock as part of management's compensationc. flotation costsd. bonding expendituresANS: C OBJ: TYPE: Fact TOP: Stockholders and managers15. A potential agency conflict can arise between stockholders and creditors because ownersmaya. increase the risk of a firm's investmentsb. decrease the amount of debt outstandingc. decrease the risk of a firm's investmentsd. increase the firm's net worthANS: A OBJ: TYPE: Fact TOP: Stockholders and creditors16. When KKR acquired RJR Nabisco, the ______ in the debt ratio, resulted in a(n) ______in the value of the firm's outstanding bonds.a. decrease, increaseb. increase, increasec. decrease, declined. increase, declineANS: D OBJ: TYPE: Fact TOP: Stockholders and creditors17. Agency problems may give rise to costs that ______ the market value of firms.a. increaseb. decreasec. do not affectd. are not important toANS: B OBJ: TYPE: Fact TOP: Stockholders and managers18. All of the following are problems with the microeconomic profit maximization modelexcept:a. the absence of a time dimensionb. offers financial managers insights to a wide range of problemsc. does not consider the risk of alternative decisionsd. the problem of defining profitsANS: B OBJ: TYPE: FactTOP: Maximization of shareholder wealth: Managerial strategies19. ________ are largely outside of the direct control of managers.a. investment strategiesb. economic environment factorsc. major policy decisionsd. dividend policiesANS: B OBJ: TYPE: Fact TOP: Managerial actions to influence value20. The success of a firm is linked to its stakeholders. This group includes:a. community neighborsb. suppliersc. employeesd. all the aboveANS: D OBJ: TYPE: Fact TOP: Social responsibility concerns21. Techniques identified by John Casey that managers could keep in mind when addressingthe ethical dimensions of a business problem include all of the following except:a. collect all the facts bearing on the problemb. clarify the parameters of the problemc. involve all parties with a financial interest in the outcomed. seek equity for those who may be affectedANS: C OBJ: TYPE: FactTOP: Ethical issues: the practice of financial management22. Many small business owners are _________ diversified with respect to their personalwealth.a. poorlyb. highlyc. welld. 90%ANS: A OBJ: TYPE: FactTOP: Entrepreneurial finance issues: Shareholder wealth maximizat23. __________ deals with economic decisions of individuals, households, and firms.a. Economic accountingb. Microeconomicsc. Blue Chip econometricsd. MacroeconomicsANS: B OBJ: TYPE: Fact TOP: Economics24. Financial management draws heavily on the following related disciplines:a. accountingb. macroeconomicsc. microeconomicsd. all of the aboveANS: D OBJ: TYPE: Fact TOP: Financial management and other disciplines25. The chief financial officer (CFO) normally has responsibilityfor all the following except:a. advertising strategyb. managing interest rate riskc. trading foreign currenciesd. accounting functionsANS: A OBJ: TYPE: Fact TOP: Organization of the financial management function26. The controller normally has responsibility for all _______ related activities, while thetreasurer is normally concerned with ________.a. acquisition, data processingb. tax, cost accountingc. tax, financial accountingd. accounting, expenditure of fundsANS: D OBJ: TYPE: Fact TOP: Organization of the financial management function27. According to the shareholder wealth maximization goal, management should seek tomaximize the __________ of the __________ to owners.a. present value; expected pretax cash flowsb. future value; expected pretax cash flowsc. present value; expected future returnsd. future value; expected future returnsANS: C OBJ: TYPE: Fact TOP: A foundation concept28. Shareholder wealth is measured by the __________.a. book value of the shareholders' common stock holdingsb. market value of the shareholders' common stock holdingsc. book value of the company's assetsd. market value of the company's assetsANS: B OBJ: TYPE: Fact TOP: Determinants of value29. Among the most important agency relationships in the context of finance is (are) therelationship(s) between __________.a. stockholders and creditorsb. management and workersc. stockholders and creditors, and management and workersd. management and creditorsANS: A OBJ: TYPE: Fact TOP: Agency problems30. Protective covenants in a company's bond indentures are used in agency relationshipsinvolving __________.a. stockholders and managersb. stockholders and creditorsc. management and workersd. management and creditorsANS: B OBJ: TYPE: Fact TOP: Stockholders and creditors31. The chief financial officer (CFO) of a corporation normally reports to the_______________________ of the company.a. chairman of the board of directorsb. chief operating officerc. controllerd. chief executive officerANS: D OBJ: TYPE: Fact TOP: Organization of the financial management function32. The ___________ has a goal of serving as a bridge between academic study of financeand the application of financial principles by financial managers.a. Financial Executives Instituteb. Financial Management Associationc. American Finance Associationd. Institution of Financial AnalystsANS: B OBJ: TYPE: Fact TOP: Professional finance affiliation33. All of the following economic environment factors affect stock prices except:a. investment strategiesb. competitionc. tax ratesd. currency exchange ratesANS: A OBJ: TYPE: Fact TOP: Managerial actions to influence value34. The major factors that determine the market value of a company's shares of stock includethe __________ .a. risk of its cash flowsb. timing of its cash flowsc. book value of its assetsd. risk of its cash flows and the timing of its cash flowsANS: D OBJ: TYPE: Fact TOP: Determinants of value35. There is often a divergence between the shareholder wealth maximization goal and theactual goals pursued by management. The primary reason for this is __________.a. geographical dispersion of shareholdersb. separation of ownership and controlc. age differences between managers and shareholdersd. that both have their own agendasANS: B OBJ: TYPE: Fact TOP: Divergent objectives36. The existence of divergent objectives between owners and managers is one example of aclass of problems arising from __________.a. social responsibility concernsb. age differences between managers and ownersc. agency relationshipsd. union-management relationsANS: C OBJ: TYPE: Fact TOP: Agency problems37. The activities of the treasurer include all of the following except:a. financial planningb. tax preparationc. credit analysisd. pension fund managementANS: B OBJ: TYPE: Fact TOP: Organization of the financial management function38. The most important managerial objective is to:a. make MC=MRb. maximize profitsc. minimize agency costsd. none of the aboveANS: D OBJ: TYPE: Fact TOP: A foundation concept39. _______ are important because the financial health of a firm depends on the firm beingable to generate sufficient cash to pay its creditors, employees, suppliers, and owners.a. cash salesb. cash flowsc. cash profitsd. net profitsANS: B OBJ: TYPE: Fact TOP: A foundation concept40. One method of decreasing the cash outflows of a firm is toa. decrease depreciationb. increase capital expendituresc. decrease dividendsd. increase debt repaymentANS: C OBJ: TYPE: Fact TOP: Cash flow41. If a firm shows an accounting net income, thena. it will not have a cash flow problemb. it will not have a problem obtaining a bank loanc. it will be able to repay all current liabilities on timed. none of the aboveANS: D OBJ: TYPE: Fact TOP: Cash flow42. Cash flow concepts are _____ but generally accepted accounting principles are ______ inthe determination of a firm's net income.a. unambiguous, ambiguousb. ambiguous, unambiguousc. ambiguous, also ambiguousd. unambiguous, straightforwardANS: A OBJ: TYPE: Fact TOP: Importance of cash flow43. Accounting-based measures of performance include all the following excepta. return on equityb. cash flowc. return on assetsd. market shareANS: B OBJ: TYPE: Fact TOP: Cash flows and shareholder wealth44. Accounting-based measures of performance _____ subject to short-term manipulation bymanagers; cash flows ______ subject to short-term manipulation.a. are, are notb. are not, arec. are, are alsod. are not, also are notANS: A OBJ: TYPE: Fact TOP: Cash flows and shareholder wealth45. The net present value rule provides appropriate guidance for financial decision makerswhen costs are incurred immediately buta. future cash flows are not known with certaintyb. marginal costs are equal to marginal revenuec. result in a stream of benefits over several future time periodsd. marginal costs are greater then marginal revenueANS: C OBJ: TYPE: Fact TOP: Net present value rule46. Corporate officers normally include all the following except:a. Secretaryb. Chief operating officerc. Treasurerd. Financial analystANS: D OBJ: TYPE: Fact TOP: Corporate organization47. The difference between a firm's annual after-tax operating profit and its total annual costof capital is known as:a. earned incomeb. Economic Value Addedc. Managerial Value Addedd. operating incomeANS: B OBJ: TYPE: Fact TOP: Divergent objectives48. ____ equals the number of shares outstanding times the market price per share.a. Book valueb. Stakeholders wealthc. Total shareholder wealthd. Economic valueANS: C OBJ: TYPE: Fact TOP: A Foundation Concept49. Which of the following companies requires that its top officers own common stock in thecompany that is at least equal to their annual salary.a. Ford Motor Companyb. Tucson Electric Power Companyc. Panhandle Easternd. Anheuser-BuschANS: A OBJ: TYPE: Fact TOP: Divergent Objectives50. The net present value of an investment made by a firm represents the contribution of thatinvestment to the ____ of the firm.a. book valueb. profitc. valued. cash flowANS: C OBJ: TYPE: Fact TOP: Net present value rule51. A major advantage of the corporate form of business over both sole proprietorships andpartnerships is thea. limited liabilityb. reduction in taxesc. ease of formationd. ability to maintain ownershipANS: A OBJ: TYPE: Fact TOP: Corporation52. Which of the following is not an advantage that the corporate form of business has overeither the sole proprietorship or partnership?a. ability to raise capitalb. ease of changing ownershipc. limited liabilityd. elimination of double taxesANS: D OBJ: TYPE: Fact TOP: Corporation53. A major disadvantage of a sole proprietorship is the fact thata. it is expensive to establishb. the owner has unlimited personal liabilityc. it is easy to finance growthd. the owner pays taxes on all the incomeANS: B OBJ: TYPE: Fact TOP: Sole proprietorship54. In a limited partnership, the limited partners may limit their:a. tax liabilityb. liabilityc. tax write-offd. ability to attract new productsANS: B OBJ: TYPE: Fact TOP: Partnership55. Corporate securities represent claims against thea. corporate officers of the firmb. agents of the corporationc. liabilities and net worth of the firmd. assets and future earnings of the firmANS: D OBJ: TYPE: Fact TOP: Corporate securities56. _________ is (are) referred to as a residual form of ownershipin a corporation.a. Common stockb. Preferred stockc. Bondsd. DividendsANS: A OBJ: TYPE: Fact TOP: Corporate securities57. The advantages of the corporate form of organization over both sole proprietorships andpartnerships include ________.a. limited liabilityb. permanencyc. limited liability and permanencyd. lower tax ratesANS: C OBJ: TYPE: Fact TOP: Corporation58. Although this type of business generates less than 6% of the total U.S. business revenue,_____ make up approximately 75% of all businesses.a. general partnershipsb. corporationsc. limited partnershipsd. sole-proprietorshipsANS: D OBJ: TYPE: Fact TOP: Sole proprietorship59. Which of the following is not an advantage of the corporate form of businessorganization:a. unlimited lifeb. unlimited liabilityc. flexibility in ownership changed. ability to raise capitalANS: B OBJ: TYPE: Fact TOP: Corporation60. There are problems with using the “profit maximization” criterion. Which of thefollowing is/are correct?I. Profit maximization has an ambiguous definition of “maximizing profits”.II. Profit maximization fails to consider risk.a. I onlyb. II onlyc. Both I and IId. Neither I nor IIANS: C OBJ: TYPE: Fact TOP: Foundation concept61. Which of the following statements is/are correct?I. Shareholders elect the Chairman of the BoardII. The board of directors has no control over whether or not dividends will be paid.a. I onlyb. II onlyc. Both I and IId. Neither I nor IIANS: D OBJ: TYPE: Fact TOP: Corporate organization62. There are three major factors that determine the market value ofa company’s share ofstock. All of the following are factors EXCEPT:a. Cash flowsb. Sales generatedc. Timing of cash flowsd. Risk taken to generate cash flowsANS: B OBJ: TYPE: Fact TOP: Determinants of value63. Which of the following is an economic principle used in finance?a. Full utilization of data processingb. Marginal analysis where marginal costs are set equal to marginal revenues.c. Accrual basis of recognizing revenues and expensesd. Target capital structureANS: B OBJ: TYPE: Fact TOP: Financial management and otherdisciplines64. The definition of the marginal analysis principle is that financial decisions are made andactions are takena. within the global economic viewpoint.b. with regard to governmental laws and cultural effectiveness.c. when the added benefits exceed the added costs.d. based on the impact of public opinion.ANS: C OBJ: TYPE: FactTOP: Maximization of shareholder wealth: Managerial strategies65. There are three forms of business organization. Which of the following has unlimitedliability?I. CorporationII. General partnershipa. I onlyb. II onlyc. Both I and IId. Neither I nor IIANS: B OBJ: TYPE: Fact TOP: PartnershipESSAY1. Explain the chain of command in a corporation.ANS:The stockholders, who own a pro-rata share of the company, elect the board of directors. The board makes broad decisions affecting the direction of the company, leaving the day-to-day decisions to the corporate officers, who are elected by the board. Corporate officers are: the chairman of the board, the chief executive officer, the chief operating officer, chief financial officer, president, vice-president(s), treasurer and secretary.OBJ: TYPE: Fact TOP: Corporate organization2. There are five compe titive forces that influence an industry’s structure.ANS:1. The threat of new entrants.2. The threat of substitute products3. The bargaining power of buyers4. The bargaining power of suppliers5. The rivalry among current competitorsOBJ: TYPE: Fact TOP: Managerial actions to influence value3. What are the shortcomings in the profit maximization objective asa managerial strategy?ANS:1. Profit maximization lacks a time dimension.2. There are many definitions of profit for a firm. There is much latitude permitted inrecognizing and accounting for costs and revenues.3. There is a question as to which profit is to be maximized: total profit, rate of profit orEPS.4. There is no direct way to consider the risk associated with alternative decisions.OBJ: TYPE: Fact TOP: Maximization of shareholder wealth: Managerial strategiesChapter 2The Domestic and International Financial MarketplaceMULTIPLE CHOICE1. The difference between merchandise exports and imports is known as the __________.a. transaction exposureb. difference in purchasing powerc. merchandise trade balanced. import/export reserveANS: C OBJ: TYPE: Fact TOP: The global economy2. A multinational firm __________.a. has direct investments in manufacturing facilities in more than one countryb. exports finished goods for sale in another countryc. imports raw materials from another countryd. has a manufacturing representative in another countryANS: A OBJ: TYPE: Fact TOP: The global economy3. The interest rate at which banks in the Eurocurrency market lend to each other is knownas the __________ .a. Eurocurrency currency rate (ECR)b. London interbank offer ratec. exchange rated. interest rate parityANS: B OBJ: TYPE: Fact TOP: The Eurocurrency market4. If Japanese yen are deposited in a bank in Paris, the deposits would be called __________a. Eurofrancsb. European Currency Unitc. Eurobondd. EuroyenANS: D OBJ: TYPE: Fact TOP: The Eurocurrency market5. An exchange rate quoted as $1.47 per British pound is known as a __________ quote.a. hedgeb. directc. futuresd. indirectANS: B OBJ: TYPE: Fact TOP: Direct and indirect quotes6. If the spot rate for Swiss francs is $0.6658/franc and the 180-day forward rate is $0.6637,the market is indicating that the Swiss franc is expected toa. strengthen relative to the dollarb. weaken relative to the ECUc. lose value relative to the dollar over the next 6 monthsd. gain value relative to the dollar over the next 6 monthsANS: C OBJ: TYPE: Fact TOP: Forward rates7. Which of the following is not a correct statement about foreign currency futures?a. futures contracts have a standardized maturity dateb. futures contracts are an exchange-traded agreementc. futures contracts are not liquidd. futures contracts are "marked to market" dailyANS: C OBJ: TYPE: Fact TOP: Foreign currency futures8. The most important foreign currency futures market in the United States is the__________.a. Chicago Board of Tradeb. New York Mercantile Exchangec. Commodity Exchanged. Chicago Mercantile ExchangeANS: D OBJ: TYPE: Fact TOP: Foreign currency futures9. The buyer of a foreign currency call option has the __________ a fixed amount of aforeign currency.a. right to sellb. right but not the obligation to buyc. obligation to buy, only at expiration,d. obligation to buyANS: B OBJ: TYPE: Fact TOP: Foreign currency options10. Eurodollars are U.S. dollars that have been deposited ina. foreign banksb. foreign branches of U.S. banksc. foreign subsidiariesd. foreign banks and foreign branches of U.S. banksANS: D OBJ: TYPE: Fact TOP: The Eurocurrency market11. If the exchange rate from U.S. dollars to Canadian dollars is $0.80/Canadian dollar, thenthe exchange rate from Canadian dollars to U.S. dollars isa. 0.80 Canadian $/US dollarb. $1.25 Canadian $/US dollarc. $1.20 Canadian $/US dollard. $8.00 Canadian $/US dollarANS: B OBJ: TYPE: Fact TOP: Direct and indirect quotes12. If the exchange rate from U.S. dollars to Swiss francs is $0.20/franc, then the exchangerate from francs to dollars isa. 0.20 francs/dollarb. 0.80 francs/dollarc. 5.0 francs/dollard. 2.0 francs/dollarANS: C OBJ: TYPE: Fact TOP: Foreign currencies and exchange rates13. If the spot rate (in U.S. dollars) for Japanese Yen is 0.00703 and the 180 day forward rateis 0.00717, then the Yen is trading at a(n) ______.a. expected gainb. premiumc. reciprocald. discountANS: B OBJ: TYPE: Fact TOP: Foreign currencies and exchange rates14. If the forward (direct quote) exchange rate is lower than the spot rate, then the currency issaid to be trading at a ______.a. forward premiumb. forward gainc. forward discountd. forward lossANS: C OBJ: TYPE: Fact TOP: Foreign currencies and exchange rates15. Financial middlemen includea. securities brokersb. securities dealersc. investment bankersd. all of the aboveANS: D OBJ: TYPE: Fact TOP: An overview of the U.S. financialsystem16. The following are listed security exchanges in the United Sates:a. New York Stock Exchangeb. Pacific Exchangec. Cincinnati Exchanged. All the above are listed exchangesANS: D OBJ: TYPE: Fact TOP: Listed security exchanges17. The Standard and Poor's 500 Stock Price Index is a ____ index.a. price weightedb. market value weightedc. price averaged. none of these answers is correctANS: B OBJ: TYPE: Fact TOP: Stock Market Indexes18. Securities not listed on exchanges are said to be tradeda. on the AMEXb. as composite transactionsc. over the counterd. on the regional exchangesANS: C OBJ: TYPE: Fact TOP: Security exchanges and stock market indexes19. Financial intermediaries includea. securities brokersb. commercial banksc. securities dealersd. all of the aboveANS: B OBJ: TYPE: Fact TOP: An overview of the U.S. financial system20. _______ markets deal in long-term securities having maturities greater than one year.a. Creditb. Moneyc. Commodity futuresd. CapitalANS: D OBJ: TYPE: Fact TOP: Money and capital markets21. ______ markets deal in short-term securities having maturitiesof one year or less.a. Creditb. Moneyc. Capitald. Capital and creditANS: B OBJ: TYPE: Fact TOP: Money and capital markets22. Which of the following (if any) are not financial intermediaries?a. commercial bankb. thrift institutionc. securities brokerd. all are financial intermediariesANS: C OBJ: TYPE: Fact TOP: An overview of the U.S. financial system23. In the ________ market, the firm receives the proceeds from the sale of its securities.a. over-the-counterb. secondaryc. fully integratedd. primaryANS: D OBJ: TYPE: Fact TOP: Primary and secondary markets24. A savings and loan association is an example of which type of financial intermediary?。
mba财务管理参考题目方向
mba财务管理参考题目方向英文回答：1. Financial Statement Analysis.Vertical and horizontal analysis.Common-size financial statements.Trend analysis.DuPont analysis.Ratio analysis.2. Working Capital Management.Cash conversion cycle.Inventory management.Accounts receivable management. Accounts payable management.3. Capital Budgeting.Net present value (NPV)。
Internal rate of return (IRR)。
Payback period.Profitability index.4. Risk Management.Financial risk.Operational risk.Market risk.5. Investment Analysis.Bond valuation.Stock valuation.Portfolio management.6. Financial Planning and Forecasting. Financial planning process.Forecasting techniques.Sensitivity analysis.7. Management Accounting.Cost accounting.Budgeting.Performance measurement.Transfer pricing.8. Corporate Finance.Capital structure.Dividend policy.Mergers and acquisitions.9. Financial Ethics.Fiduciary duty.Conflicts of interest.insider trading.10. International Financial Management.Foreign exchange risk.Currency hedging.International investment.中文回答：1. 财务报表分析。
公司理财罗斯英文原书第九版第十三章
2. The market risk premium, R M
Cov( Ri , RM ) σ i , M 2 3. The company beta, βi Var ( RM ) σM
13-5
RF
Example
Suppose the stock of Stansfield Enterprises, a publisher of PowerPoint presentations, has a beta of 2.5. The firm is 100% equity financed. Assume a risk-free rate of 5% and a market risk premium of 10%. What is the appropriate discount rate for an expansion of this firm?
13.5 Determinants of Beta 13.6 Dividend Discount Model 13.7 Cost of Capital for Divisions and Projects 13.8 Cost of Fixed Income Securities 13.9 The Weighted Average Cost of Capital 13.10 Flotation Costs and the Weighted Average Cost of Capital
13-4
The Cost of Equity Capital
From the firm’s perspective, the expected return is the Cost of Equity Capital:
资本预算的基本原理
0
1
2
3
01
02
$100
$100
现金流量的三要素
现金流量的大小(资金数
额)
方向(资金流入或流出)
作用点(资金的发生时点)
$100
4
5
03
$130
$100
在项目投资决策中使用的现金流量表， 是用于全面反映某投资项目在其未来项 目计算期内每年的现金流入量和现金流 出量的具体构成内容，以及净现金流量 水平的分析报表。
如果银行以8000/（1+8%）=101852
2
3 NPV=1852
3
贷款利率与项目风险无关，它只反映现存公司的财务状况。 是否接受这一贷款，将面临两种选择：是用于10%的期 望回报率，还是用于风险等价的15%回报率的股票。
如果公司能以8%借入去购买风险等价提供15%回报率的 话，那么用它投资10%就是不明智的。
真的值得投资吗？贴现率的作用
如果风险与股票市场的风险12%是相同的， ○ 400,000/(1+12%)=357,143 ○ NPV=7,143
01
回报率=利润/投资额
02
=(400000-350000)/350000=14.3%
假定未来的收益40万元是 确定的，也即是无风险的
今天的一元比明天的一元 更值钱。
第4章 资本预算 的基本原理
单/击/此/处/添/加/副/标/题/内/容
规划企业用于固定资产的资本支出，又称资本 支出预算。资本预算是企业选择长期资本资产 投资的过程。
特点：资金量大、周期长、风险大、时效性强
资本预算Capital Budgeting 长期投资决策 Long-term Investment decision
Ch 8 风险分析与资本预算练习题-solution
Ch 8 Risk analysis Real Option and Capital Budgeting1.Forecasting risk is defined as the possibility that:A. some proposed projects will be rejected.B. some proposed projects will be temporarily delayed.C. Incorrect decisions will be made due to erroneous cash flowprojections.D. some projects will be mutually exclusive.E. tax rates could change over the life of a project.2. An analysis of the change in a project's NPV when a single variable is changed is called _____ analysis.A. forecastingB. scenarioC. sensitivityD. simulationE. break-even3. Operating leverage is the degree of dependence a firm places on its:A. variable costsB. fixed costsC. salesD. operating cash flowsE. net working capital4. Forecasting risk emphasizes the point that the correctness of any decision to accept or reject a project is highly dependent upon the:A. method of analysis used to make the decision.B. initial cash outflowC. ability to recoup any investment in net working capital.D. accuracy of the projected cash flows.E. length of the project5. Steve, the sales manager for TL Products, wants to sponsor a one-week "Customer Appreciation Sale" where the firm offers to sell additional units of a product at the lowest price possible without negatively affecting the firm's profits. Which one of the following represents the price that should be charged for the additional units during this sale?A. average variable costB. average total costC. average total revenueD. marginal revenueE. marginal cost6. Which of the following values will be equal to zero when a firm is producing the accounting break-even level of output?I. operating cash flowII. internal rate of returnIII. net incomeIV. payback periodA. I onlyB. III onlyC. II and III onlyD. I and IV onlyE. I,II, and III only.7. Webster Iron Works started a new project last year. As it turns out, the project has been operating at its accounting break-even level of output and is now expected to continue at that level over its lifetime. Given this, you know that the project:A. will never pay back.B. has a zero net present valueC. is operating at a higher level than if it were operating at its cash break-evenD. is operating at a higher level than if it were operating at its financialbreak-even levelE. is lowering the total net income of the firm8. A project has a payback period that exactly equals the project's life. The project is operating at:A. its maximum capacityB. the financial break-even pointC. the cash break-even pointD. the accounting break-even pointE. a zero level of output9. Which of the following statements are identified with financial break-even point?I. The present value of the cash inflows exactly offsets the initial cash outflow. II. The payback period is equal to the life of the project.III. The NPV is zero.IV. The discounted payback period equals the life of the project.A. I and II onlyB. I and III onlyC. II and IV onlyD. I, II, and III onlyE. I, III, and IV only10. Which one of the following characteristics best describes a project that hasa low degree of operating leverage?A. high variable costs relative to the fixed costsB. relatively high initial cash outlayC. an OCF that is highly sensitive to the sales quantityD. high level of forecasting riskE. a high depreciation expense11. What is forecasting risk and why is it important to the analysis of capital expenditure projects? What methods can be used to reduce this risk?Answer: Forecasting risk is the possibility that errors in projected cash flows will lead to incorrect decisions. Projects are generally accepted when they have positive NPVs and rejected when they have negative NPVs. If the cash inflows of a project are overestimated, the NPV will be overstated potentially resulting in an incorrect acceptance of the project. On the other hand, if cash inflows are underestimated, a good project might be erroneously rejected. To offset some of this risk, managers should employ sensitivity and scenario analysis as well as break-even analysis to better understand the potential outcomes associated with the project.12. What are the key features of the accounting, cash, and financialbreak-even points?13. What is operating leverage and why is it important in the analysis of capital expenditure projects?Answer: Operating leverage is the degree to which a project relies on its fixed costs. The more capital intensive a project, the higher the project's DOL. The higher the DOL, the greater the percentage change in the project's operating cash flows relative to a one percent change in the project's sales quantity. As long as sales are increasing, leverage works fine. However, when sales decline, leverage magnifies the related percentage decline in OCF. Thus,capital intensive firms are more susceptible to forecasting risk.。
Fundamental Accounting Principles (25)
Payback = 3.5 years
P1
9
25-P2: Accounting Rate of Return
10
Accounting Rate of Return
Two Ways to Calculate Average Annual Investment
When comparing investments with similar lives and risk, a company will prefer the investment with the higher accounting rate of return.
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$3,000 $4,000 $4,100 $5,000
P1
6
Computing Payback Period with Uneven Cash Flows
FasTrac wants to install a machine that costs $16,000 and has an 8year useful life with zero salvage value. Annual net cash flows are:
To get the payback period when we have unequal annual net cash flows, we must add the cash flows each year until the total equals the cost of the investment.
资本计量高级方法 整体流程
资本计量高级方法整体流程Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the firm's goal of maximizing shareholder wealth. 资本预算是评估和选择与公司旨在最大化股东财富目标一致的长期投资的过程。
It is a critical decision-making process that requires careful analysis and consideration of various factors such as cash flow, risk, and strategic fit. 这是一个关键的决策过程，需要对现金流量、风险和战略匹配等各种因素进行仔细分析和考虑。
One advanced method for capital budgeting is the use of real options analysis. 实物期权分析是资本预算的一种高级方法。
Real options analysis extends traditional discounted cash flow techniques by taking into account the flexibility inherent in investment decisions. 实物期权分析通过考虑投资决策中固有的灵活性，扩展了传统的折现现金流技术。
This method recognizes that managers have the option to expand, abandon, or delay an investment depending on how market conditions unfold. 这种方法认识到经理人有权利根据市场状况的演变情况来扩张、放弃或延迟投资。
财务专业简介英语作文范文
财务专业简介英语作文范文Title: An Overview of Financial ManagementIntroduction:Financial management plays a crucial role in today's business world. It involves various activities, such as planning, organizing, directing, and controlling financial resources to achieve organizational objectives. This paper aims to provide an overview of the field of financial management, including its importance, key concepts, and career prospects.Chapter 1: Importance of Financial ManagementFinancial management is essential for organizations as it enables them to make informed decisions about their financial resources. It helps in allocating funds efficiently, minimizing risks, and maximizing profits. Financial management also plays a vital role in ensuring business sustainability and growth. By analyzing financial statements, conducting cost-benefit analysis, and managing cash flow, organizations can make sound financial decisions and achieve their strategic goals.Chapter 2: Key Concepts in Financial Management2.1 Financial Planning: Financial planning involves preparing a comprehensive budget and long-term financial goals, considering factors like sales forecast and capital requirements. It ensures that organizations have a clear roadmap for financial success.2.2 Capital Budgeting: Capital budgeting focuses on evaluating and selecting investment opportunities that will generate a positive return on investment. Techniques like Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period assist in thedecision-making process.2.3 Financial Analysis: Financial analysis involves examining financial statements to assess the financial health of an organization. It includes ratio analysis, trend analysis, and benchmarking to measure profitability, liquidity, solvency, and efficiency.2.4 Risk Management: Risk management aims to identify and mitigate financial risks, such as market volatility, credit risk, and interest rate risk. Strategies like hedging and diversification help organizations manage uncertainties effectively.Chapter 3: Career Prospects in Financial ManagementWith the increasing complexity of business operations and the growing importance of financial management, there are numerous career opportunities in this field. Some potential job roles include financial analyst, investment banker, financial planner, risk manager, and corporate treasurer. These professionals are in high demand across various industries, including banking, insurance, consulting, and manufacturing. A strong foundation in financial management, combined with analytical skills and business acumen, can lead to lucrative careers with excellent growth prospects. Conclusion:Financial management is a vital discipline that organizations must embrace to achieve financial success and sustainability. It involves key concepts such as financial planning, capital budgeting, financial analysis, and risk management. By understanding and applying these concepts, organizations can make informed decisions and maximize their financial resources. Moreover, the field offers numerous career prospects for individuals who possessthe necessary skills and knowledge. Overall, financial management is an indispensable field that drives the growth and profitability of organizations worldwide.当我继续思考相关主题时，我突然想到了社交媒体对人际关系和社会行为的影响。
财政管理英语作文
财政管理英语作文Financial management is a multifaceted discipline that encompasses a range of strategies, techniques, and principles aimed at optimizing the utilization and allocation of financial resources. It plays a pivotal role in both personal and corporate spheres, influencing decision-making processes, ensuring long-term sustainability, and facilitating the attainment of financial objectives. At the individual level, sound financial management practices are essential for achieving financial security and well-being. This involves creating a budget, tracking income and expenses, saving for the future, and managing debt effectively. By carefully monitoring cash flow, individuals can identify areas where they can reduce expenditures, increase savings, and make informed investment decisions. Furthermore, understanding concepts like compounding interest, diversification, and risk management empowers individuals to make prudent financial choices that align with their goals and risk tolerance. In the corporate world, financial management assumes an even greater significance. Companies must effectively manage their finances to ensure profitability, growth, and long-term viability. This encompasses a wide range of activities, including financial planning and forecasting, capital budgeting, working capital management, and risk management. By developing accurate financial forecasts, businesses can anticipate future revenue streams, estimate expenses, and make informed decisions regarding investments, expansions, and other strategic initiatives. Moreover, sound working capital management ensures that companies have sufficient liquidity to meet their short-term obligations, while effective risk management strategies mitigate potential financial losses. A crucial aspect of financial management is capital budgeting, which involves evaluating and selecting long-term investments that are expected to generate future cash flows. This process requires careful analysis of potential projects, considering factors such as initial investment costs, projected returns, discount rates, and risk assessments. By employing appropriate capital budgeting techniques, businesses can prioritize projects with the highest potential returns and align their investments with their overall strategic objectives. Another critical element of financial management is risk management. Businesses operate in an inherently uncertain environment, and a myriad of factorscan impact their financial performance, including economic downturns, competition, changes in consumer preferences, and natural disasters. Effective risk management strategies involve identifying potential risks, assessing their likelihood and potential impact, and developing mitigation plans. This may includediversification of investments, hedging strategies, insurance coverage, and contingency planning. In conclusion, financial management is an indispensable aspect of both personal and corporate success. By adhering to sound financial principles, individuals and businesses can optimize their financial resources, mitigate risks, and achieve their financial goals. Whether it involves creating a personal budget, managing a company's cash flow, or making strategic investment decisions, financial management plays a vital role in navigating the complexities of the financial landscape and ensuring long-term financial stability.。
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Market return (%)
9-8
Measuring Betas
Hewlett-Packard return (%) Hewlett Packard Beta Price data - Jan 93 - Dec 97 R2 = .35 B = 1.69
Slope determined from 60 months of prices and plotting the line of best fit.
Market return (%)
9-11ห้องสมุดไป่ตู้
Measuring Betas
A T & T Beta Price data - Jan 88 - Dec 92 R2 = .28 B = 0.90 A T & T (%)
Slope determined from 60 months of prices and plotting the line of best fit.
Market return (%)
9-9
Measuring Betas
A T & T Beta Price data - Jan 78 - Dec 82 A T & T (%) R2 = .28 B = 0.21
Slope determined from 60 months of prices and plotting the line of best fit.
Market return (%)
9-10
Measuring Betas
A T & T Beta Price data - Jan 83 - Dec 87 R2 = .23 B = 0.64 A T & T (%)
Slope determined from 60 months of prices and plotting the line of best fit.
The SML shows the relationship between return and risk. CAPM uses Beta as a proxy for risk. Beta is the slope of the SML, using CAPM terminology. Other methods can be employed to determine the slope of the SML and thus Beta. Regression analysis can be used to find Beta.
A company’s cost of capital can be compared to the CAPM required return.
SML
Required
return 13
Company Cost of Capital
5.5
0
1.26
Project Beta
9-4
Measuring Betas
9-2
Company Cost of Capital
A
firm’s value can be stated as the sum of the value of its various assets.
Firm value PV(AB) PV(A) PV(B)
9-3
Company Cost of Capital
9-5
Measuring Betas
Hewlett Packard Beta
Price data - Jan 78 - Dec 82 R2 = .53 B = 1.35 Hewlett-Packard return (%)
Slope determined from 60 months of prices and plotting the line of best fit.
Market return (%)
9-6
Measuring Betas
Hewlett-Packard return (%) Hewlett Packard Beta Price data - Jan 83 - Dec 87 R2 = .49 B = 1.33
Slope determined from 60 months of prices and plotting the line of best fit.
Market return (%)
9-7
Measuring Betas
Hewlett-Packard return (%) Hewlett Packard Beta Price data - Jan 88 - Dec 92 R2 = .45 B = 1.70
Slope determined from 60 months of prices and plotting the line of best fit.
Market return (%)
9-12
Measuring Betas
A T & T Beta Price data - Jan 93 - Dec 97 R2 = ..17 B = .90 A T & T (%)
Slope determined from 60 months of prices and plotting the line of best fit.
Market return (%)
9-13
Beta Stability
RISK CLASS 10 (High betas) 9 8 7 6
% IN SAME CLASS 5 YEARS LATER
35 18 16 13 14
% WITHIN ONE CLASS 5 YEARS LATER
Lecture 9 Capital Budgeting and Risk
Managerial Finance FINA 6335 Ronald F. Singer
Topics Covered
Measuring
Betas Capital Structure and COC Discount Rates for Intl. Projects Estimating Discount Rates Risk and DCF