财务管理英文版第一章
财务管理基础英文版选择题
第一章1 CORRECTWhich of the following are microeconomic variables that help define and explain the discipline of finance? DA) risk and returnB) capital structureC) inflationD) all of the aboveFeedback: All of the above are relevant in explaining finance.2 CORRECTOne primary macroeconomic variable that helps define and explain the discipline of finance? CA) capital structureB) inflationC) technologyD) riskFeedback: Technology is very important in explaining the field of finance.3 CORRECTThe money markets deal with _________. BA) securities with a life of more than one yearB) short-term securitiesC) securities such as common stockD) none of the aboveFeedback: The money markets are concerned with short-term securities, those with a life less than one year.4 CORRECTThe ability of a firm to convert an asset to cash is called ___A_________.A) liquidityB) solvencyC) returnD) marketabilityFeedback: Liquidity also means how close an asset is to cash.5 CORRECTEarly in the history of finance, an important issue was: AA) liquidityB) technologyC) capital structureD) financing optionsFeedback: Maintaining liquidity was a major concern historically.6 INCORRECTThe __________C_________ is the most common form of business organization in the U.S.A) corporationB) partnershipC) sole proprietorshipD) none of the aboveFeedback: There are more sole proprietorships than any other form of business organization.7 CORRECTThe _________C___________ has more sales in dollars than any other form of business organization.A) sole proprietorshipB) partnershipC) corporationD) none of the aboveFeedback: The corporation is the most important in terms of dollars.8 CORRECTOne major disadvantage of the sole proprietorship is _____B___________.A) simplicity of decision-makingB) unlimited liabilityC) low operational costsD) none of the aboveFeedback: The owners of a sole proprietorship are personally liable.9 CORRECTThe appropriate firm goal in a capitalist society is ______B__________.A) profit maximizationB) shareholder wealth maximizationC) social responsibilityD) none of the aboveFeedback: The goal is to maximize the wealth of shareholders.10 CORRECTThe agency problem will occur in a business firm if the goals of ______C______ and shareholders do not agree.A) investorsB) the publicC) managementD) none of the above第二章Feedback: The goals of management may be different from those of shareholders.The accounting statements that a firm is required to file include all but one of these. BA) Balance SheetB) Statement of Accounts ReceivableC) Income StatementD) Statement of Cash FlowsFeedback: The required statements include the income statement, balance sheet and statement of changes in cash flows. The statement of changes in owners equity (or retained earnings) is also required by Generally Accepted Accounting Principles but is not covered in this text.2 CORRECTThe _______A________ shows the firm's operating results over a period of time.A) Income StatementB) Statement of Cash FlowsC) Balance SheetD) None of the aboveFeedback: The Income Statement represents a moving picture of a firm's revenues and expenses.3 CORRECTAll of the following except one are tax-deductible expenses. CA) interest expenseB) depreciationC) common stock dividendsD) income taxesFeedback: Common stock dividends are not tax deductible to a firm.4 CORRECTAll of the following are non-operating expenses except ______B_______.A) interest expenseB) cost of goods soldC) preferred stock dividendsD) taxesFeedback: The cost of goods sold is an operating expense.5 CORRECTBondholders receive _____C________ from the business firm.A) preferred dividend paymentsB) common stock paymentsC) interest paymentsD) royaltiesFeedback: Bondholders are typically paid interest semi-annually.6 CORRECTThe ratio of net income to common shares outstanding is called _____B_________.A) price/earnings ratioB) earnings per shareC) dividends per shareD) none of the aboveFeedback: This is called the earnings per share (EPS).7 CORRECTUsually, firms with high price/earnings ratios are _____A_______ firms.A) growthB) decliningC) matureD) none of the aboveFeedback: A high p/e ratio indicates a firm with strong growth prospects8 CORRECTOne of the limitations of the _____C_______ is that it is based on historical costs.A) income statementB) statement of cash flowsC) balance sheetD) none of the aboveFeedback: The balance sheet uses historical costs.9 INCORRECTA source of funds is a: DA) decrease in a current assetB) decrease in a current liabilityC) increase in a current liabilityD) a and c aboveFeedback: A decrease in current assets is equivalent to an increase in current liabilities.10 INCORRECTShort-term financing for a business firm includes: BA) bondsB) accounts payableC) stockholder's equityD) mortgagesFeedback: The other three answers represent long-term financing.第三章Trend analysis allows a firm to compare its performance to: DA) other firms in the industryB) other time periods within the firmC) other industriesD) all of the aboveFeedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare afirm’s performan ce against competitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.2Ratio analysis allows a firm to compare its performance to: DA) other firms in the industryB) other time periods within the firmC) other industriesD) all of the aboveFeedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a firm’s performance against competitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.3Usually, a firm's suppliers are most interested in its ___D_____ ratios.A) profitabilityB) debtC) asset utilizationD) liquidityFeedback: The suppliers are most interested in getting paid, as shown by the liquidity of the firm.4 CORRECT__________D_____ would be most interested in a firm's debt utilization ratios.A) bondholdersB) stockholdersC) short-term creditorsD) Both A and BFeedback: Debt is indicated by a firm issuing bonds but is also a function of the debt to equity relationship or the degree of financial leverage. Both bond holders and stockholders are interested in this relationship although frof opposing viewpoints.5 CORRECTThe _______C______ ratio indicates the return firm shareholders are earning.A) return on assetsB) return on investmentC) return on equityD) net profit marginFeedback: The shareholders represent equity, or ownership in the firm.6 CORRECTWhich of the following is an example of a profitability ratio? CA) Quick ratioB) Average collection periodC) Return on equityD) Times interest earnedFeedback: This is the only profitability ratio that is listed. All profitability ratios have net income in the denominator.7Total asset turnover will indicate if there is a problem with the ___C______ ratio.A) debt to assetsB) times interest earnedC) fixed asset turnoverD) currentFeedback: Fixed asset turnover is part of total asset turnover.8 CORRECTAll of the following are asset utilization ratios except: DA) average collection periodB) inventory turnoverC) receivables turnoverD) return on assetsFeedback: Return on assets is a profitability ratio. Any ratio with net income in the denominator is a profitability ratio.9 CORRECTIf a firm's debt ratio is 55%, this means ____C__ of the firm's assets are financed by equity financing.A) 55%B) 50%C) 45%D) not enough information to answer questionFeedback: The equity portion plus the debt portion must add up to 100%.10 CORRECTAll of the following can present problems for ratio analysis except: DA) inflationB) inventory accounting methodsC) disinflationD) all of the aboveFeedback: These all may cause problems.第四章Planning for future growth is called: CA) capital budgetingB) working capital managementC) financial forecastingD) none of the aboveFeedback: This involves looking ahead to the future.2 INCORRECTWhich one of the following is NOT a tool of financial forecasting? BA) cash budgetB) capital budgetC) pro forma balance sheetD) pro forma income statementFeedback: The other three are all tools used by an analyst.3 CORRECTThe first step in developing a pro forma income statement is to: AA) build a sales forecastB) determine the production scheduleC) determine cost of goods soldD) none of the aboveFeedback: A sales forecast begins the process.4 INCORRECTPro forma statements are _B______ statements.A) actualB) projectedC) a previous year'sD) none of the aboveFeedback: Pro forma statements are based on estimates or projections.5 INCORRECTAll of the following compose cost of goods sold except ______D__________.A) raw materialB) laborC) overheadD) all of the above are part of cost of goods soldFeedback: The cost of good sold involves all three of these items.6 INCORRECTFinancial managers use the ______B_______ to plan for monthly financing needs.A) capital budgetB) cash budgetC) pro forma income statementD) none of the aboveFeedback: The cash budget allows for planning cash needs.7 INCORRECTThe payments that a firm collects from its customers are called _______C________.A) cash disbursementsB) cash outflowsC) cash receiptsD) none of the aboveFeedback: Cash receipts represent cash coming into the firm.8 INCORRECTExamples of cash disbursements are all but _________B________.A) payment for materials purchasedB) collection of accounts receivableC) payment of dividendsD) payment of taxesFeedback: The collection of accounts receivable is an example of a cash receipt, not a cash disbursement.9 CORRECTIn developing the pro forma balance sheet, we get common stock from __________A_______.A) the firm's previous balance sheetB) the firm's cash budgetC) the firm's income statementD) none of the aboveFeedback: Common stock appears on the balance sheet.10 INCORRECTThe percent of sales method of financial forecasting shows us the relationship between________D___ and financing needs.A) changes in the level of liabilitiesB) changes in the level of assetsC) changes in debtD) changes in the level of salesFeedback: It compares the relationship between balance sheet items and sales.第五章An example of a semi-variable cost is: DA) rentB) raw materialC) depreciationD) utilitiesFeedback: The other three represent fixed or variable costs.2 CORRECT_________A____ is the point at which firm profit is equal to zero.A) breakevenB) operating breakevenC) financial leverageD) combined breakevenFeedback: This is the point where the firm's revenues equal its expenses.3 INCORRECTIn breakeven analysis, if fixed costs rise, then the breakeven point will _____B_____.A) fallB) riseC) stay the sameD) none of the aboveFeedback: This implies that a larger quantity will have to be sold in order to break even.4 INCORRECTIn the breakeven formula, Price - Variable Cost is called the___C__________.A) breakeven pointB) leverageC) contribution marginD) none of the aboveFeedback: This implies that a larger quantity will have to be sold in order to cover the additional fixed costs and still break even.5 INCORRECTWhich of the following types of firms may operate with high operating leverage? BA) a doctor's officeB) an auto manufacturing facilityC) a mental health clinicD) none of the above would have high operating leverageFeedback: This implies a high break-even point and high operating expenses.6 INCORRECTThe __________C__________ is the percentage change in operating income that results from a percentage change in sales.A) degree of financial leverageB) breakeven pointC) degree of operating leverageD) degree of combined leverageFeedback: This is called the degree of operating leverage (DOL).7 CORRECTIf interest expenses for a firm rise, we know that firm has taken on more ______A________.A) financial leverageB) operating leverageC) fixed assetsD) none of the aboveFeedback: Financial leverage refers to interest expense on debt.8 INCORRECTThe ________B________ is the percentage change in earnings per share that results from a percentage change in operating income.A) degree of combined leverageB) degree of financial leverageC) breakeven pointD) degree of operating leverageFeedback: This is known as the degree of financial leverage (DFL).9 INCORRECTCombined leverage is the percentage change in relationship between sales and ______C______.A) operating incomeB) operating leverageC) earnings per shareD) breakeven pointFeedback: This combines operating leverage and financial leverage.10 INCORRECTA highly leveraged firm is ____B______ risky than its peers.A) lessB) moreC) the sameD) none of the aboveFeedback: Leverage is equivalent to risk, because it implies a higher level of fixed costs.第六章Working capital management involves the financing and management of the __C_____ assets of the firm.A) fixedB) totalC) currentD) none of the aboveFeedback: Working capital management deals with the financing and management of currentassets.2 INCORRECTAn asset sold at the end of a specified time period is called a ______B_______ asset.A) temporary currentB) self-liquidatingC) currentD) permanent currentFeedback: A self-liquidating asset is one that will be sold after a certain amount of time.3 CORRECTFixed assets are usually financed with _______A______ funds.A) long-termB) short-termC) permanentD) none of the aboveFeedback: Fixed assets are by definition long-term assets.4 INCORRECT_________B_____ is usually used to finance self-liquidating assets.A) Long-term financingB) Short-term financingC) Permanent financingD) none of the aboveFeedback: These are short-term or temporary assets.5 INCORRECTShort-term interest rates, in a normal economy, are generally ____C____ than long-term rates.A) higherB) the sameC) lowerD) none of the aboveFeedback: Long-term interest rates are normally higher than short-term interest rates to compensate for uncertainty or risk.6 INCORRECTThe expectations hypothesis says that _____B____ interest rates are a function of _______ interest rates.A) short-term; long-termB) long-term; short-termC) short-term; short-termD) none of the aboveFeedback: This theory says that long-term interest rates reflect the average of short-term expected rates.7 INCORRECTInsurance companies would tend to invest in ______C____ securities.A) short-termB) intermediate termC) long-termD) not enough information to answerFeedback: An insurance company would prefer long-term securities because they are more conservative or safer.8 INCORRECTThe _________D_____ theory says that investors must be paid a premium to hold long-term securities.A) expectations hypothesisB) time value theoryC) segmentationD) liquidity premiumFeedback: This is the liquidity premium.9 INCORRECTShort-term financing plans with high liquidity have: BA) high return and high riskB) moderate return and moderate riskC) low profit and low riskD) none of the aboveFeedback: This is known as a "middle-of-the-road" approach.10 INCORRECTLong-term financing plans with low liquidity have: BA) high return and high riskB) moderate return and moderate riskC) low return and low riskD) none of the aboveFeedback: This is also known as a "middle-of-the-road" approach.第七章The transaction motive for holding cash is for BA) a safety cushionB) daily operating requirementsC) compensating balance requirementsD) none of the aboveFeedback: This is money for everyday transactions.2 CORRECTWhich of the following motives for holding cash is required by the bank before loaning money? AA) compensating balance motiveB) transactions motiveC) precautionary motiveD) none of the aboveFeedback: This can be considered a form of collateral.3 INCORRECTThe difference between the cash balance on the firm's books and the balance shown on the bank's books is called: BA) the compensating balanceB) floatC) a safety cushionD) none of the aboveFeedback: Float implies that it takes time for checks to clear.4 CORRECTElectronic funds transfer has _____A_____ the use of float.A) reducedB) increasedC) had no effect onD) none of the aboveFeedback: Electronic funds transfer (EFT) has moved cash more quickly and reduced float.5 INCORRECTThe most utilized marketable security by most firms is the: DA) Treasury bondB) Agency securityC) Certificate of DepositD) Treasury billFeedback: Treasury bills (T-Bills) are very safe, popular investments.6 INCORRECTOf the following marketable securities, which are guaranteed by the Federal government? DA) agency securitiesB) negotiable certificates of depositC) banker's acceptancesD) none of the aboveFeedback: None of these are backed by the government.7 INCORRECTThe 5 C's of credit include: DA) conditionsB) collateralC) characterD) all of the aboveFeedback: The other two C's of credit are capacity and capital.8 INCORRECT BThe use of safety stock by a firm will:A) reduce inventory costsB) increase inventory costsC) have no effect on inventory costsD) none of the aboveFeedback: Safety stock is extra inventory a firm keeps in case of unforseen circumstances.9 INCORRECTAll of these factors are used in credit policy administration except: CA) credit standardsB) terms of tradeC) dollar amount of receivablesD) collection policyFeedback: The other three choices are the primary policy variables to consider.10 CORRECTFirms aim to hold ___A___ cash balances since cash is a non-interest earning asset.A) lowB) averageC) highD) none of the aboveFeedback: A firm does not want to keep too much cash on hand because it will lose interest (by not keeping the money in a bank).第八章The largest provider of short-term credit for a business is: BA) banking organizationsB) suppliers to the firmC) commercial paperD) EurodollarsFeedback: This is also known as trade credit.2 INCORRECTThe number of days until the firm is past due to a supplier is called the: CA) discount periodB) term to creditC) payment periodD) none of the aboveFeedback: The payment period is the number of days a firm has to pay its bill.3 INCORRECTIf a firm is given trade credit terms of 2/10, net 30, then the cost of the firm failing to take the discount is: CA) 2%B) 30%C) 36.72%D) 10%Feedback: This is calculated using formula 8-1 in this chapter.4 CORRECTThe interest rate given by a bank to its most creditworthy customers is the: AA) prime rateB) LIBOR rateC) federal funds rateD) discount rateFeedback: This is the "best" interest rate charged to people with excellent credit.5 INCORRECTWhich of the following types of bank loans generally have the highest effective rate of interest? DA) simple interest loanB) discount interest loanC) loan with a compensating balanceD) installment loanFeedback: Installment loans tend to be the most expensive.6 INCORRECTIf a firm needs to borrow $100,000, at 8% interest, to finance working capital needs and a 20% compensating is required, then the firm should borrow ____C______.A) $100,000B) $80,000C) $125,000D) $108,000Feedback: The formula to calculate this is: amount needed/(1-c), where c = the compensating balance percentage.7 CORRECTIf a bank offers a firm a simple interest loan of $1000 for 120 days at a cost of $60 interest, what is the effective rate of interest on the loan? AA) 18.00%B) 6.00%C) 20.00%D) none of the aboveFeedback: This is calculated by using formula 8-2 in this chapter.8 INCORRECTIf a company raises money to finance short-term needs by selling its accounts receivable to another party, this is called ___________. CA) pledgingB) warehousingC) factoringD) none of the aboveFeedback: Factoring means selling the accounts receivable outright.9 INCORRECTThe most restrictive policy for using inventory as collateral for short-term borrowing is called: BA) blanket inventory lienB) warehousing inventoryC) trust receiptD) factoringFeedback: This is a complex method of inventory financing wherein the lender takes control of the inventory.10 CORRECTA type of accounts receivable financing where a firm uses its receivables as collateral is called: AA) pledgingB) securitizationC) factoringD) warehousingFeedback: Pledging means using accounts receivable as collateral.第九章Both the future and present value of a sum of money are based on: CA) interest rateB) number of time periodsC) both a and bD) none of the aboveFeedback: These two factors are used in time value of money calculations.2 INCORRECTAn annuity is ___________________. CA) more than one paymentB) a series of unequal but consecutive paymentsC) a series of equal and consecutive paymentsD) a series of equal and non-consecutive paymentsFeedback: An annuity is a stream of equal payments to be received in the future.3 CORRECTIf you have $1000 and you plan to save it for 4 years with an interest rate of 10%, what is the future value of your savings? AA) $1464.00B) $1000.00C) $1331.00D) cannot be determinedFeedback: This is calculated by using formua 9-1 in this chapter.4 INCORRECTTime value of money is an important finance concept because: DA) it takes risk into accountB) it takes time into accountC) it takes compound interest into accountD) all of the aboveFeedback: Time value of money incorporates all of these concepts.5 INCORRECTThe present value of a dollar to be received in the future is: CA) more than a dollarB) equal to a dollarC) less than a dollarD) none of the aboveFeedback: The reason is because you can earn interest on the money.6 CORRECTThe future value of a dollar that you invest today is: AA) more than a dollarB) equal to a dollarC) less than a dollarD) none of the aboveFeedback: Again, the reason is because the money can earn interest.7 INCORRECTThe future value of an annuity is: CA) less than each annuity paymentB) equal to each annuity paymentC) more than each annuity paymentD) none of the aboveFeedback: The reason has to do with compound interest (or interest earning more interest).8 INCORRECTThe concepts of present value and future value are:DA) directly related to each otherB) not related to each otherC) proportionately related to each otherD) inversely related to each otherFeedback: They are essentially opposite sides of a coin.9 INCORRECTIf you win the lottery and you choose to have your proceeds distributed to you over atwenty-year time period, with the first payment coming to you one year from today, which calculation would you use to calculate the worth of those proceeds to you today? DA) future value of a lump sumB) future value of an annuityC) present value of a lump sumD) present value of an annuityFeedback: This is shown by formula 9-4 in this chapter. But this is not a typical situation. Most lotteries (let’s say $1 Million over 20 years), will pay you the first payment today and $50,000 each year for the next 19 years. This is actually an “annuity due” which is not covered in this text. Y ou’d have to calculate the present value of the annuity for 19 years and add the initial $50,000 you received today.10 CORRECTYou have $1000 you want to save. If four different banks offer four different compounding methods for interest, which method should you choose to maximize your $1000? AA) compounded dailyB) compounded quarterlyC) compounded semi-annuallyD) compounded annuallyFeedback: The more often interest is compounded the faster it will grow because you will begin to earn interest on the interest sooner.第十章In valuing a financial asset, you use these variables: DA) present value of future cash flowsB) discount rateC) required rate of returnD) all of the aboveFeedback: All of these are needed in order to value an asset.2 CORRECTThe principal amount of a bond at issue is called: AA) par valueB) coupon valueC) present value of an annuityD) present value of a lump sumFeedback: This is also known as the face value or stated value.3 INCORRECT BIf a bond's value rises above its par value during its life, interest rates have:A) gone upB) gone downC) stayed the sameD) there is no correlation with interest ratesFeedback: There is an inverse relationship between bond prices and interest rates (or yields).4 INCORRECTThe basic "rent" that you are charged when you borrow money is called: CA) inflation premiumB) risk premiumC) real rate of returnD) none of the aboveFeedback: This is known as the opportunity cost in economics.5 INCORRECTAs time to maturity draws near, a bond's value approaches: BA) zeroB) parC) the coupon paymentD) none of the aboveFeedback: The bond price gets closer to its face value the closer it is to maturity (see figure 10-2 in this chapter).6 INCORRECTOne characteristic of preferred stock is that:DA) it has no maturity dateB) it is a hybrid security with characteristics of both common stock and debtC) it pays a fixed dividend paymentD) all of the aboveFeedback: Preferred stock is described by all of the above characteristics.7 CORRECTCommon stock that has no growth in dividends is valued as if it were: AA) preferred stockB) a bondC) an optionD) none of the aboveFeedback: It is treated the same as preferred stock.8 INCORRECT。
财务管理CHAPTER1(可编辑修改word版)
II. CONCEPTSCHAPTER 1 Introduction to Corporate FinanceFINANCIAL MANAGEMENTd21. Which of the following questions are addressed by financial m anagers?I.How long will it take to produce a product?II.How long should customers be given to pay for their credit purchases?III.Should the firm borrow more money?IV.Should the firm build a new factory?a.I and IV onlyb.II and III onlyc.I, II, and III onlyd.II, III, and IV onlye.I, II, III, and IVORGANIZATIONAL STRUCTUREe22. The treasurer and the controller of a corporation generally report to t he:a.board of directors.b.chairman of the board.c.chief executive officer.d.president.e.vice president of finance.ORGANIZATIONAL STRUCTUREb 23. Which one of the following statements is correct concerning the organizationalstructure of a corporation?a.The vice president of finance reports to the chairman of the board.b.The chief executive officer reports to the board of directors.c.The controller reports to the president.d.The treasurer reports to the chief executive officer.e.The chief operations officer reports to the vice president of production.CAPITAL BUDGETINGb 24. Which one of the following is a capital budgeting d ecision?a.determining how much debt should be borrowed from a particular lenderb.deciding whether or not to open a new storec.deciding when to repay a long-term debtd.determining how much inventory to keep on hande.determining how much money should be kept in the checking accountCAPITAL BUDGETINGe 25. When considering a capital budgeting project the financial manager should consider:a.only the size of the project.b.only the timing of the project cash flows.c.only the risk of the project cash flows.d.only the size and timing of the project cash flows.e.the size, timing, and risk of the project cash flows.CAPITAL STRUCTUREa 26. Capital structure decisions include consideration of t he:I.amount of long-term debt to assume.II.cost of acquiring funds.III.current assets and liabilities. working capital.a.I and II onlyb.II and III onlyc.IIIand IV onlyd.I, II, and IV onlye.I, III, and IV onlyCAPITAL STRUCTUREe 27. The decision of which lender to use and which type of long-term loan is best for aproject is part of:a.working capital management.b.the net working capital decision.c.capital budgeting.d. a controller’s duties.e.the capital structure decision.WORKING CAPITAL MANAGEMENTe 28. Working capital management includes decisions concerning which of the following?I.accounts payableII.long-term debtIII.accounts receivableIV.inventorya.I and II onlyb.I and III onlyc.II and IV onlyd.I, II, and III onlye.I, III, and IV onlyWORKING CAPITAL MANAGEMENTe 29. Working capital m anagement:a.ensures that sufficient equipment is available to produce the amount of product desiredon a daily basis.b.ensures that long-term debt is acquired at the lowest possible cost.c.ensures that dividends are paid to all stockholders on an annual basis.d.balances the amount of company debt to the amount of available equity.e.is concerned with having sufficient funds to operate the business on a daily basis.SOLE PROPRIETORSHIPd 30. Which one of the following statements concerning a sole proprietorship is correct?a. A sole proprietorship is the least common form of business ownership.b.The profits of a sole proprietorship are taxed twice.c.The owners of a sole proprietorship share profits as established by the partnershipagreement.d.The owner of a sole proprietorship may be forced to sell his/her personal assets to paycompany debts.e. A sole proprietorship is often structured as a limited liability company.SOLE PROPRIETORSHIPa 31. Which one of the following statements concerning a sole proprietorship is correct?a.The life of the firm is limited to the life span of the owner.b.The owner can generally raise large sums of capital quite easily.c.The ownership of the firm is easy to transfer to another individual.d.The company must pay separate taxes from those paid by the owner.e.The legal costs to form a sole proprietorship are quite substantial.PARTNERSHIPe 32. Which one of the following best describes the primary advantage of being a limitedpartner rather than a general partner?a.entitlement to a larger portion of the partnership’s incomeb.ability to manage the day-to-day affairs of the businessc.no potential financial lossd.greater management responsibilitye.liability for firm debts limited to the capital investedPARTNERSHIPb33. A general p artner:a.has less legal liability than a limited partner.b.has more management responsibility than a limited partner.c.faces double taxation whereas a limited partner does not.d.cannot lose more than the amount of his/her equity investment.e.is the term applied only to corporations which invest in partnerships.PARTNERSHIPc34. A p artnership:a.is taxed the same as a corporation.b.agreement defines whether the business income will be taxed like a partnership ora corporation.c.terminates at the death of any general partner.d.has less of an ability to raise capital than a proprietorship.e.allows for easy transfer of interest from one general partner to another.PARTNERSHIPd35. Which of the following are disadvantages of a p artnership?I.limited life of the firmII.personal liability for firm debtIII.greater ability to raise capital than a sole proprietorshipck of ability to transfer partnership interesta.I and II onlyb.IIIand IV onlyc.II and III onlyd.I, II, and IV onlye.I, III, and IV onlyCORPORATIONe36. Which of the following are advantages of the corporate form of business ownership?I.limited liability for firm debtII.double taxationIII.ability to raise capitalIV.unlimited firm lifea.I and II onlyb.IIIand IV onlyc.I, II, and III onlyd.II, III, and IV onlye.I, III, and IV onlyCORPORATIONa37. Which one of the following statements is correct concerning c orporations?a.The largest firms are usually corporations.b.The majority of firms are corporations.c.The stockholders are usually the managers of a corporation.d.The ability of a corporation to raise capital is quite limited.e.The income of a corporation is taxed as personal income of the stockholders.BUSINESS TYPESb38. Which one of the following statements is c orrect?a.Both partnerships and corporations incur double taxation.b.Both sole proprietorships and partnerships are taxed in a similar fashion.c.Partnerships are the most complicated type of business to form.d.Both partnerships and corporations have bylaws.e.All types of business formations have limited lives.ARTICLES OF INCORPORATIONc39. The articles of i ncorporation:a.can be used to remove company management.b.are amended annually by the company stockholders.c.set forth the number of shares of stock that can be issued.d.set forth the rules by which the corporation regulates its existence.e.can set forth the conditions under which the firm can avoid double taxation.BYLAWSd40. The b ylaws:a.establish the name of the corporation.b.are rules which apply only to limited liability companies.c.set forth the purpose of the firm.d.mandate the procedure for electing corporate directors.e.set forth the procedure by which the stockholders elect the senior managers of the firm.LIMITED LIABILITY COMPANYc 41. The owners of a limited liability company p refer:a.being taxed like a corporation.b.having liability exposure similar to that of a sole proprietor.c.being taxed personally on all business income.d.having liability exposure similar to that of a general partner.e.being taxed like a corporation with liability like a partnership.CORPORATIONc42. Which one of the following business types is best suited to raising large amounts of capital?a.sole proprietorshipb.limited liability companyc.corporationd.general partnershipe.limited partnershipCORPORATIONd43. Which type of business organization has all the respective rights and privileges of a legal person?a.sole proprietorshipb.general partnershipc.limited partnershipd.corporatione.limited liability companyGOAL OF FINANC IAL MANAGEMENTc44. Financial managers should strive to maximize the current value per share of the existing stock because:a.doing so guarantees the company will grow in size at the maximum possible rate.b.doing so increases the salaries of all the employees.c.the current stockholders are the owners of the corporation.d.doing so means the firm is growing in size faster than its competitors.e.the managers often receive shares of stock as part of their compensation.GOAL OF FINANCIAL MANAGEMENTd45. The decisions made by financial managers should all be ones which increase the:a.size of the firm.b.growth rate of the firm.c.marketability of the managers.d.market value of the existing owners’ equity.e.financial distress of the firm.AGENCY PROBLEMc 46. Which one of the following actions by a financial manager creates an agency problem?a.refusing to borrow money when doing so will create losses for the firmb.refusing to lower selling prices if doing so will reduce the net profitsc.agreeing to expand the company at the expense of stockholders’ valued.agreeing to pay bonuses based on the market value of the company stocke.increasing current costs in order to increase the market value of the stockholders’equityAGENCY PROBLEMe 47. Which of the following help convince managers to work in the best interest of thestockholders?pensation based on the value of the stockII.stock option plansIII.threat of a company takeoverIV.threat of a proxy fighta.I and II onlyb.IIIand IV onlyc.I, II, and III onlyd.I, III, and IV onlye.I, II, III, and IVAGENCY PROBLEMd 48. Which form of business structure faces the greatest agency problems?a.sole proprietorshipb.general partnershipc.limited partnershipd.corporatione.limited liability companyAGENCYCOSTc 49. Which of the following are agency c osts?I.forgoing an investment opportunity which would add to the market value of theowner’s equityII.paying a dividend to each of the existing shareholdersIII.purchasing new equipment which increases the value of each share of stockIV.hiring outside auditors to verify the accuracy of the company financial statementsa.II and III onlyb.I and III onlyc.I and IV onlyd.II and IV onlye.I, II, and IV onlySTAKEHOLDERSa50. Which one of the following parties is considered a stakeholder of a firm?a.employeeb.short-term creditorc.long-term creditord.preferred stockholdermon stockholderCASH FLOWSb51. Which of the following represent cash outflows from a f irm?I.issuance of securitiesII.payment of dividendsIII.new loan proceedsIV.payment of government taxesa.I and III onlyb.II and IV onlyc.I and IV onlyd.I, II, and IV onlye.II, III, and IV onlyPRIMARY MARKETb 52. Which one of the following is a primary market t ransaction?a. a dealer selling shares of stock to an individual investorb. a dealer buying newly issued shares of stock from a corporationc.an individual investor selling shares of stock to another individuald. a bank selling shares of a medical firm to an individuale. a sole proprietor buying shares of stock from an individual investorAUCTION MARKETb 53. Which of the following statements concerning auction markets is (are)c orrect?I.NASDAQ is an auction market.II.The NYSE is an auction market.III.All trades involve a dealer in an auction market.IV.An auction market is called an over-the-counter market.a.I onlyb.II onlyc.I and III onlyd.II and III onlye.II and IV onlySTOCK EXCHANGEd 54. Which one of the following statements concerning stock exchanges is correct?a.The NYSE has more listed stocks than NASDAQ.b.The NYSE is a dealer market.c.The exchange with the strictest listing requirements is NASDAQ.d.Some large companies are listed on NASDAQ.e.Most debt securities are traded on the NYSE.DEALER MARKETSc 55. Dealer m arkets:a.are reserved strictly for trading debt securities.b.only exist outside of the United States.c.are called over-the-counter markets.d.include the American Exchange and the Pacific Stock Exchange.e.list only the securities of the largest firms.NYSEa 56. Which one of the following statements is correct concerning the NYSE?a. A firm is expected to have a market value for its publicly held shares of at least$100 million to be listed on the NYSE.b.The NYSE is the largest dealer market for listed securities in the United States.c.The NYSE accounts for only 50 percent of the shares traded in the auction markets.d.Any corporation desiring to be listed on the NYSE can do so.e.The NYSE is an over-the-counter exchange functioning as both a primary and asecondary market.NASDAQd 57. Which of the following statements concerning NASDAQ are c orrect?I.Most smaller firms are listed on NASDAQ rather than on the NYSE.II.NASDAQ is an electronic market.III.NASDAQ is an auction market.IV.NASDAQ is an OTC market.a.I and II onlyb.I and III onlyc.II and IV onlyd.I, II, and IV onlye.I, II, III, and IV。
财务管理英文课件1
3.
4. 5. 6. 7.
II. What is Business finance? 1. Career Opportunities in Finance
• Money and capital markets • Investments • Business Finance or Financial management
3. Responsibility of the Financial Staff
• Maximize stock value by:
– Forecasting and planning – Investment and financing decisions – Coordination and control – Transactions in the financial markets – Managing risk – Dividend policy & distribution decisions
Useful Websites：
• • • • • • • • • • • • • •
Course Outline
1.Course Pre-requisite: Financial Accounting or equivalent. 2.Course objectives:
This course is designed for the student, not only the finance major, but also accounting major. We will cover a lot of ground. We will begin with a general overview and then go into more detail on several concepts, financial instruments, and techniques used in financial decision making. The chief objectives of the course are: 1. To introduce you to the world of finance. Anyone involved with the management of a business needs to have at least some minimal knowledge of business finance. 2. To introduce you to basic financial concepts such as the time value of money, asset valuation, and risk and return. My hope is that by the end of the class you will have a basic grasp of finance principles and that you go beyond just memorizing a number of facts and formulas. Doing so will enable you to better understand current events in Finance and will provide a solid framework for any subsequent courses you may take in Finance. Hopefully, by the end of the semester you will want to take additional classes in Finance! The structure of this class makes your individual study and preparation outside class extremely important. The lecture material will focus on the major points introduced in the text. Reading the assigned chapters and having some familiarity with them before class will greatly assist your understanding of the lecture. After the lecture, you should study your notes and work relevant problems that I will assign you.
财务管理英文课件
Early 20th century:
Concentrated on reporting to outsiders.
Early 21st century:
Insiders managing and controlling
the firm’s financial operations.
Copyright © 2003 Pearson Education Australia Pty Limited
• Interest in these topics grew and in turn spurred interest in security analysis, portfolio theory and caopyright © 2003 Pearson Education Australia Pty Limited
Slide: 1 - 7
Chief accountant is also called financial controller, whose responsibilities include financial reporting to outsiders as well as cost and managerial accounting and financial analysis on behalf of the firm’s managers.
Copyright © 2003 Pearson Education Australia Pty Limited
Slide: 1 - 5
• Capital budgeting became a major topic in finance.
• This led to an increased interest in related topics, most notably firm valuation.
财务管理英文课件
Copyright © 2003 Pearson Education Australia Pty Limited
Slide: 1 - 5
• Capital budgeting became a major topic in finance.
• This led to an increased interest in related topics, most notably firm valuation.
The more risk the firm is willing to assume, the higher the expected return from a given course of action.
Copyright © 2003 Pearson Education Australia Pty Limited
chapter 1 & 3 Scope and environment of
financial management
Copyright © 2003 Pearson Education Australia Pty Limited
Slide: 1 - 1
Development of Financial Management
Copyright © 2003 Pearson Education Australia Pty Limited
Slide: 1 - 10
Shareholder wealth maximisation?
Same as:
1. Maximising firm value 2. Maximising share values
Slide: 1 - 16
Risk and Returns
第一章财务管理导论Corporate Finance Financial Management
3
什么是财务管理?
财务管理解决下述三个问题 :
1.
2.
3.
投资决策：公司应该投资于什么样的长期资产?— —涉及到资本预算 融资决策：公司如何筹资，以支付投资支出所需 要的资金?——涉及到资本结构 营运资本管理：公司应该如何管理它在经营中的 现金流量（ cash flow ）?——涉及到净营运资 本决策
10
融资决策
公司应如何为长期投资筹集所需的长期资金? 这些长期资金将利用股东权益方式还是通过 借入资金方式筹集? 这属于企业的长期筹资决策。 资本结构（ Capital Structure）决策
11
融资决策
公司价值（The value of the firm ）可以被看做一个圆饼. 财务经理的目标是增加圆饼 的大小 资本结构（Capital Structure）决策可以视做 怎样去最佳地分割圆饼 70% 25% 50% 30% 股 Debt Debt权 负债 75% 50% Equity
由于对圆饼的分割（资本结构）将直接影响 到圆饼 大小（公司价值），因此资本结构决 策就非常重要
12
营运资本管理决策
企业应如何管理日常的财务活动，即企业应 如何取得短期资金以及是否要进行赊销?等等 这属于企业由流动资产和流动负债组成的营 运资金管理决策。 净营运资本=流动资产 - 流动负债
净营运资本（Net Working Capital）决策
虽然有限台伙企业的形式在石油天然气租赁和房地产等行业较为普遍但它对于许多其他经营活动并不很适合50有限合伙制企业区别有限合伙人limitedpartnership普通合伙人generalpartnership出资金额大部分95小部分5经营控制权对企业债务的责任仅仅以出资额为限承担有限责任以个人财产承担无限责任专业技术总体上承担无限责任和难以维持持续经营等不利因素使一些规模非常大的企业很难以合伙企业的组织形式进行运作
英文财务管理(1)
英文财务管理(1)
Course content
The final section of book consist of five chapters that deal with financial forecasting, derivatives and risk management, multinational financial management, hybrid financing vehicles, and mergers(财务预测， 衍生工具和风险管理，跨国财务管理，混合融资 工具以及合并)。
企业、公司:（firm business enterprise company corporation venture）
英文财务管理(1)
Organization of the Financial Management Function: Figure 1-1
Board of Directors
President(CEO)
英文财务管理(1)
Chapter 1 Goals and Governance of the Firm Topics Covered： w Investment and Financing Decisions w What is a Corporation? w Who Is The Financial Manager? w Goals of the Corporation w Careers in Finance
财务管理专业英语unit 课件
Wisdom
Money begets(or breeds or gets)money. ——Anonymous
Boundless risk must pay for boundless gain. ——William Momis
Mini case
Dell Computer manufactures, sells, and services personal computers. The company markets directly to its customers and builds computers after receiving a customer order. This build-to-order model enables Dell to have much smaller investment in working capital than its competitors. Dell has grown quickly and has been able to finance that growth internally by its efficient use of working capital and its profitabillity.
• Read the mini case and think: 1. What’s the Dell’s Sales philosophy? 2. Find the specialized vocabulary of
financial management?
Dell 销售理念
按照客户要求制造计算机，并向客 户直接发货，使戴尔公司能够最有效和 明确地了解客户需求，继而迅速做出回 应。这个直接的商业模式消除了中间商， 这样就减少了不必要的成本和时间，让 戴尔公司更好地理解客户的需要。
财务管理英文版166页PPT文档
Basket Wonders Statement of Earnings (in thousands) for Year Ending December 31, 2019a
Ⅰ.Primary Types of Financial Statements
Balance Sheet
A summary of a firm’s financial position on a given date that shows total assets = total liabilities + owners’ equity.
Examples of External Uses of Statement Analysis
Trade Creditors -- Focus on the liquidity of the firm. Bondholders -- Focus on the long-term cash flow of
Basket Wonders Balance Sheet (thousands) Dec. 31, 2019a
Cash and C.E.
$
a. How the firm stands on
90 Acct. Rec.c
a specific date.
394 Inventories
b. What BW owned.
16
Other Accrued Liab. d 100
Current Liab. e $ 500
Long-Term Debt f
530
Shareholders’ Equity
Com. Stock ($1 par) g
200
Add Pd in Capital g
财务管理第一章双语
财务管理第一章双语在当今复杂多变的商业世界中，财务管理无疑是企业运营的核心之一。
无论是大型跨国公司还是小型创业企业，有效的财务管理都是实现可持续发展和盈利的关键。
这一章，我们将以双语的形式来探索财务管理的一些基础概念和重要原则。
首先，让我们来明确一下什么是财务管理（Financial Management）。
简单来说，财务管理就是对企业资金的筹集、使用、分配等活动进行规划、控制和决策的过程。
它的目标是实现企业价值最大化，这意味着要在保证企业财务稳健的同时，尽可能地提高资金的使用效率和盈利能力。
资金的筹集（Financing）是财务管理的首要环节。
企业可以通过多种途径获取资金，比如发行股票（Issuing Stocks）、债券（Bonds），或者从银行贷款（Bank Loans）。
每种筹资方式都有其特点和成本。
股票筹资可以为企业带来永久性的资金，但可能会稀释原有股东的控制权；债券筹资需要按时支付利息和本金，但成本相对较低；银行贷款则通常审批流程较快，但利息和还款条件可能较为苛刻。
在选择筹资方式时，企业需要综合考虑自身的财务状况、市场环境和发展战略。
资金的使用（Use of Funds）也是至关重要的。
企业需要将筹集到的资金合理地分配到不同的项目和业务中，以获取最大的回报。
这就涉及到投资决策（Investment Decisions）。
投资可以分为长期投资（LongTerm Investments）和短期投资（ShortTerm Investments）。
长期投资如购置固定资产、开展新的业务项目等，需要进行深入的可行性研究和风险评估；短期投资如购买短期理财产品、进行应收账款保理等，则更注重资金的流动性和收益性平衡。
在资金的分配（Distribution of Funds）方面，企业需要决定如何将盈利分配给股东和用于企业的再发展。
常见的分配方式有现金股利（Cash Dividends）和股票股利（Stock Dividends）。
英文财务管理[1]
![英文财务管理[1]](https://img.taocdn.com/s3/m/2f8ca46ebb68a98271fefad0.png)
PPT文档演模板
英文财务管理[1]
Chapter 1 Goals and Governance of the Firm
Topics Covered： w Investment and Financing Decisions w What is a Corporation? w Who Is The Financial Manager? w Goals of the Corporation w Careers in Finance
fairly typical picture of the role of finance within a corporation.
企业、公司:（firm business enterprise company corporation venture）
PPT文档演模板
英文财务管理[1]
Organization of the Financial Management Function: Figure 1-1
balance sheet).
w What is the best type of financing? w What is the best financing mix? w What is the best dividend policy? w How will the funds be physically acquired?
w The top financial manager within a firm is usually the Chief Financial Officer (CFO)
Treasurer – oversees cash management, credit management, capital expenditures and financial planning ( planning its capital structure, for selling stocks and bonds to raise capital, for overseeing the corporate pension plan, and for managing risk)
财务管理专业英语第一章
1.2.1 Investment Decisions 1.2.1投资决策
Long-term investment decisiongs involve determining the type and amount of assets that the firm 长期投资决策 涉及确定公司希望持有的资产的类型和数量。 wants to hold. That is, investing concerns allocating or using funds. The financial manager makes 这就是说，投资包括配置或使用资金。 财务经理
The article translation 文章翻译
one another. Inverstment decisions typically affect financing decisions and vice versa. For example, 投资决策通常影响筹资决策，反之亦然。 例如， a decision to build a new plant or to buy new equipment requires other decisions on how to obtain the 新建厂房或购买新设备的决策要考虑如何获得项目需要的资金 funds needed to finance the project and to manage the asset once acquired. 和购买之后如何管理资产。
The article translation 文章翻译
Is the existing capital structure the right one ? 现有的资本结构是否正确？ How ang where should the firm raise money ? 公司怎样以及从哪里筹集资金？ Should the firm use funds raised through its revenues ? 公司是否应该通过收入筹集资金？ Should the firm raise money from outside the business ? 公司是否应通过业务以外筹集资金？ If the firm seeks external financing, should it bring in other oweners or borrow the money ? 如果公司寻求外部筹资，它应该增加所有者还是借钱？ The financial manager can obtain the needed funds for its investmrnts and operations either 财务经理可以从内部或外部得到其投资和运营所需的资金。 internally or externally.
MBA财务管理,第一章,作业答案
Chapter 1: The Fundamentals of Managerial EconomicsAnswers to Questions and Problems1.Producer-producer rivalry best illustrates this situation. Here, Southwest is aproducer attempting to steal customers away from other producers in the form oflower prices.2.The maximum you would be willing to pay for this asset is the present value, which is3. a. Net benefits are N(Q) = 20 + 24Q– 4Q2. benefits when Q = 1 are N(1) = 20 + 24 – 4 = 40 and when Q = 5 they are N(5)= 20 + 24(5) – 4(5)2 = 40.c.Marginal net benefits are MNB(Q) = 24 – 8Q.d.Marginal net benefits when 1Q they==Q are MNB(1) = 24 – 8(1) = 16 and when 5 are MNB(5) = 24 – 8(5) = -16.e.Setting MNB(Q) = 24 – 8Q = 0 and solving for Q, we see that net benefits aremaximized when Q = 3.f.When net benefits are maximized at Q = 3, marginal net benefits are zero. That is,MNB(3) = 24 – 8(3) = 0.4. a. The value of the firm before it pays out current dividends is.b. The value of the firm immediately after paying the dividend is.5.The present value of the perpetual stream of cash flows. This is given by6.The completed table looks like this: benefits are maximized at Q = 107.b.Marginal cost is slightly smaller than marginal benefit (MC = 130 and MB = 140).This is due to the discrete nature of the control variable.7. a. The net present value of attending school is the present value of the benefits derivedfrom attending school (including the stream of higher earnings and the value to you of the work environment and prestige that your education provides), minus theopportunity cost of attending school. As noted in the text, the opportunity cost ofattending school is generally greater than the cost of books and tuition. It is rationalfor an individual to enroll in graduate when his or her net present value is greater than zero.b.Since this decreases the opportunity cost of getting an M.B.A., one would expectmore students to apply for admission into M.B.A. Programs.8. a. Her accounting profits are $170,000. These are computed as the difference betweenrevenues ($200,000) and explicit costs ($30,000).b.By working as a painter, Jaynet gives up the $110,000 she could have earned underher next best alternative. This implicit cost of $110,000 is in addition to the $30,000 in explicit costs. Since her economic costs are $140,000, her economic profits are$200,000 - $140,000 = $60,000.9. a. Total benefit when Q = 2 is B(2) = 20(2) – 2 × 22 = 32. When Q = 10, B(10) = 20(10)– 2 × 102 = 0.b.Marginal benefit when Q = 2 is MB(2) = 20 – 4(2) = 12.When Q = 10, it is MB(10)= 20 – 4(10) = -20.c.The level of Q that maximizes total benefits satisfies MB(Q) = 20 – 4Q = 0, so Q = 5.d.Total cost when Q = 2 is C(2) = 4 + 2 × 22 = 12. When Q = 10 C(Q) = 4 + 2 × 102 =204.e.Marginal cost when Q = 2 is MC(Q) = 4(2) = 8. When Q = 10 MC(Q) = 4(10) = 40.f.The level of Q that minimizes total cost is MC(Q) = 4Q = 0, or Q = 0. benefits are maximized when MNB(Q) = MB(Q) = MC(Q) = 0, or 20 – 4Q– 4Q= 0. Some algebra leads to Q = 20/8 = 2.5 as the level of output that maximizes netbenefits.10.a. The present value of the stream of accounting profits isb.The present value of the stream of economic profits is11.First, recall the equation for the value of a firm: . Next, solve thisequation for g to obtain . Substituting in the known values implies agrowth rate of or 5 percent. This would seem to be areasonable rate of growth: 0.05 < 0.09 (g < i).12.Effectively, this question boils down to the question of whether it is a goodinvestment to spend an extra $200 on a refrigerator that will save you $45 at the endof each year for five years. The net present value of this investment is.You should buy the standard model, since doing so saves you $10.44 in present value terms.13.Under a flat hourly wage, employees have little incentive to work hard as workinghard will not directly benefit them. This adversely affects the firm, since its profitswill be lower than the $25,000 per store that is obtainable each day when employees perform at their peak. Under the proposed pay structure, employees have a strongincentive to increase effort, and this will benefit the firm. In particular, under thefixed hourly wage, an employee receives $160 per day whether he or she works hard or not. Under the new pay structure, an employee receives $330 per day if the storeachieves its maximum possible daily profit and only $80 if the store’s daily profit iszero. This provides employees an incentive to work hard and to exert peer pressure on employees who might otherwise goof off. By providing employees an incentive toearn extra money by working hard, both the firm and the employees will benefit. 14.a. Accounting costs equal $145,000 per year in overhead and operating expenses. Herimplicit cost is the $75,000 salary that must be given up to start the new business. Her opportunity cost includes both implicit and explicit costs: $145,000 + $75,000 =$220,000.b.To earn positive accounting profits, the revenues per year should greater than$145,000. To earn positive economic profits, the revenues per year must be greaterthan $220,000.15.First, note that the $200 million spent to date is irrelevant. It is a sunk cost that will belost regardless of the decision. The relevant question is whether the incrementalbenefits (the present value of the profits generated from the drug) exceed theincremental costs (the $60 million needed to keep the project alive). Since these costs and benefits span time, it is appropriate to compute the net present value. Here, thenet present value of DA S’s R&D initiative isSince this is positive, DAS should spend the $60 million. Doing so adds over$100,000 to the firm’s value.16.Disagree. In particular, the optimal strategy is the high advertising strategy. To seethis, note that the present value of the profits from each advertising strategy are asfollows:Since the high advertising results in profit stream with the greatest present value, it is the best option.17.a. Since the profits grow faster than the interest rate, the value of the firm would beinfinite. This illustrates a limitation of using these simple formulas to estimate thevalue of a firm when the assumed growth rate is greater than the interest rate.b. billion.c. billion.d. billion.18.If she invests $2,500 in pre-tax money each year in a traditional IRA, at the end of 4years the taxable value of her traditional IRA will beShe gets to keep only 81 percent of this (her tax rate is 19 percent), so her spendable income when she withdraws her funds at the end of 4 years is (0.81)($11,876.85) =$9,620.25.In contrast, if she has $2,500 in pre-tax income to devote to investing in an IRA, she can only invest $2,025 in a Roth IRA each year (the remaining $475 must be paid to Uncle Sam). Since she doesn’t have to pay taxes on her earnings, the value of herRoth IRA account at the end of 4 years represents her spendable income uponretirement if she uses a Roth IRA. This amount is.Notice that, ignoring set-up fees, the Roth and traditional IRAs result in exactly thesame after-tax income at retirement. Therefore, she should adopt the plan with thelowest set-up fees. In this case, this means choosing the Roth IRA, thus avoiding the $50 set-up fee charged for the traditional IRA. In other words, the net present value of her after-tax retirement funds if she chooses a Roth IRA,, is $50 higher than under a traditional IRA.19.Yes. To see this, first note that your direct and indirect costs are the same regardlessof whether you adopt the project and therefore are irrelevant to your decision. Incontrast, note that your revenues increase by $13,369,300 if you adopt the project.This change in revenues stemming from the adoption from the ad campaignrepresents your incremental revenues. To earn these additional revenues, however,you must spend an additional $2,860,050 in TV airtime and $1,141,870 for additional ad development labor. The sum of these costs – $4,001,920 – represents the explicitincremental cost of the new advertising campaign. In addition to these explicit costs, we must add $8,000,000 in implicit costs – the profits lost from foreign operations.Thus, based on the economically correct measure of costs – opportunity costs – theincremental cost of the new campaign is $12,001,920. Since these incremental costsare less than the incremental revenues of $13,369,300, you should proceed with thenew advertising campaign. Going forward with the plan would increase the firm’sbottom line by $1,367,380. Expressed differently, the extra accounting profits earned in the U. S. would offset the accounting profits lost from foreign operations.20.Under the projected 2% annual growth rate, analysts would view the acquisitionunfavorably since < $625.00 (in millions).However, with an annual growth rate of 4% the acquisition is justified since> $625.00 (in millions).21.Producer-producer rivalry exists between U.S.-based shrimp producers (representedby the Southern Shrimp Alliance) and foreign shrimp producers. A consumer-producer rivalry exists between the members of the American Seafood DistributorsAssociation and the U.S.-based shrimp producers (represented by the SouthernShrimp Alliance). Sustainability of profits in the U.S. shrimp market is questionable given the current circumstances. There are few low-cost alternatives to shrimp. Since Brazil’s shrimp exports i ncreased from 400 tons to more than 58,000 tons in just afew years indicates that it is relatively easy to enter the shrimp-farming industry. One result is that quantity of shrimp exported to the U.S. has dramatically increased,putting downward pressure on price. Both shrimp consumers, represented byAmerican Seafood Distributor’s Association, and shrimp producers, represented bythe Southern Shrimp Alliance in the U.S. and by the governments of other countries, are well organized. The sustainability of profits in the U.S. market for shrimp will be determined by the relative success of buyers and sellers of shrimp at convincing theU.S. government of the merits for the 300 percent tariff request on shrimp enteringthe U.S.22.Online price comparison sites are generally markets of intense producer-producerrivalry. Using the five forces framework, one would expect that profits in thisindustry would be low. Given that there are many sellers, products are identicalacross sellers, and that the main basis for competition is price, the industry rivalrywould be very high and prices would be expected to be close to cost. Furthermore,barriers to entry are low, so that any profits would be competed away by new firmsentering the market. Also, consumers have a variety of substitutes available, both for the products and the retail outlets from which they purchase. For these reasons,economic profits would likely be close to zero for The Local Electronics Shop.23.While the incentive plan has been effective in increasing the sales for the dealership,it has not increased profitability. This is because the manager, who must approve all sales, gets paid a commission regardless of whether the sale is profitable for thedealership or not; she has an incentive to increase sales, not profits. A better incentive system would pay the manager a commission based on the amount of the profit oneach sale. Doing this would give the sales manager an incentive to sell more cars and maintain high profit margins. In this way, the incentives of the manager are betteraligned with the incentives of the dealership’s owners. Many car dealerships pay the manager 20-30% of the gross profit, the difference between the selling price and the cost to the dealership.。
财务管理专业英语第一单元
Decision
Working Capital Management Decisions
(How should the firm manage its short-term assets and liabilities?)
Long-term investment decisions
• In what lines of business should the firm engage? • Should the firm acquire other companies? • What sorts of property, plant, and equipment should the firm hold? • Should the firm modernize or sell an old production facility? • Should the firm introduce a more efficient distribution system than the current one?
8. Volatility 不稳定性 Interest rates and financial market volatility would remain high due to the market uncertainty. 市场前景不明朗，亦会令利率持续高起，金融市场波动。 9.balance sheet 资产负债表 income (profit) statement 利润表 cash flow statement 现金流量表 10.capital budgeting 资本预算 capital structure 资本结构 working capital management 营运资本管理 Capital Budgeting and Long-term Financing management 资本预算及远期财务管理
财务管理1(全英文)
6
Outline of Chapter 1
3. The dramatic increase in the use of computers for the analysis of financial decisions.
1
Outline of Chapter 1
problem firms faced was obtaining capital for expansion. B. The depression of the 1930s shifted the focus of finance to bankruptcy, reorganization, corporate liquidity, and governmental regulation of securities markets. The emphasis changed from expansion to survival.
8
Outline of Chapter 1
A. Management’s primary goal is to maximize the wealth of the firm’s stockholders.
B.This goal translates into maximizing the price of the firm’s common stock.This is not the same as maximizing net income or earnings per share.
财务管理基础英文版选择题
第一章1 CORRECTWhich of the following are microeconomic variables that help define and explain the discipline of finance? DA) risk and returnB) capital structureC) inflationD) all of the aboveFeedback: All of the above are relevant in explaining finance.2 CORRECTOne primary macroeconomic variable that helps define and explain the discipline of finance? CA) capital structureB) inflationC) technologyD) riskFeedback: Technology is very important in explaining the field of finance.3 CORRECTThe money markets deal with _________. BA) securities with a life of more than one yearB) short-term securitiesC) securities such as common stockD) none of the aboveFeedback: The money markets are concerned with short-term securities, those with a life less than one year.4 CORRECTThe ability of a firm to convert an asset to cash is called ___A_________.A) liquidityB) solvencyC) returnD) marketabilityFeedback: Liquidity also means how close an asset is to cash.5 CORRECTEarly in the history of finance, an important issue was: AA) liquidityB) technologyC) capital structureD) financing optionsFeedback: Maintaining liquidity was a major concern historically.6 INCORRECTThe __________C_________ is the most common form of business organization in the U.S.A) corporationB) partnershipC) sole proprietorshipD) none of the aboveFeedback: There are more sole proprietorships than any other form of business organization.7 CORRECTThe _________C___________ has more sales in dollars than any other form of business organization.A) sole proprietorshipB) partnershipC) corporationD) none of the aboveFeedback: The corporation is the most important in terms of dollars.8 CORRECTOne major disadvantage of the sole proprietorship is _____B___________.A) simplicity of decision-makingB) unlimited liabilityC) low operational costsD) none of the aboveFeedback: The owners of a sole proprietorship are personally liable.9 CORRECTThe appropriate firm goal in a capitalist society is ______B__________.A) profit maximizationB) shareholder wealth maximizationC) social responsibilityD) none of the aboveFeedback: The goal is to maximize the wealth of shareholders.10 CORRECTThe agency problem will occur in a business firm if the goals of ______C______ and shareholders do not agree.A) investorsB) the publicC) managementD) none of the above第二章Feedback: The goals of management may be different from those of shareholders.The accounting statements that a firm is required to file include all but one of these. BA) Balance SheetB) Statement of Accounts ReceivableC) Income StatementD) Statement of Cash FlowsFeedback: The required statements include the income statement, balance sheet and statement of changes in cash flows. The statement of changes in owners equity (or retained earnings) is also required by Generally Accepted Accounting Principles but is not covered in this text.2 CORRECTThe _______A________ shows the firm's operating results over a period of time.A) Income StatementB) Statement of Cash FlowsC) Balance SheetD) None of the aboveFeedback: The Income Statement represents a moving picture of a firm's revenues and expenses.3 CORRECTAll of the following except one are tax-deductible expenses. CA) interest expenseB) depreciationC) common stock dividendsD) income taxesFeedback: Common stock dividends are not tax deductible to a firm.4 CORRECTAll of the following are non-operating expenses except ______B_______.A) interest expenseB) cost of goods soldC) preferred stock dividendsD) taxesFeedback: The cost of goods sold is an operating expense.5 CORRECTBondholders receive _____C________ from the business firm.A) preferred dividend paymentsB) common stock paymentsC) interest paymentsD) royaltiesFeedback: Bondholders are typically paid interest semi-annually.6 CORRECTThe ratio of net income to common shares outstanding is called _____B_________.A) price/earnings ratioB) earnings per shareC) dividends per shareD) none of the aboveFeedback: This is called the earnings per share (EPS).7 CORRECTUsually, firms with high price/earnings ratios are _____A_______ firms.A) growthB) decliningC) matureD) none of the aboveFeedback: A high p/e ratio indicates a firm with strong growth prospects8 CORRECTOne of the limitations of the _____C_______ is that it is based on historical costs.A) income statementB) statement of cash flowsC) balance sheetD) none of the aboveFeedback: The balance sheet uses historical costs.9 INCORRECTA source of funds is a: DA) decrease in a current assetB) decrease in a current liabilityC) increase in a current liabilityD) a and c aboveFeedback: A decrease in current assets is equivalent to an increase in current liabilities.10 INCORRECTShort-term financing for a business firm includes: BA) bondsB) accounts payableC) stockholder's equityD) mortgagesFeedback: The other three answers represent long-term financing.第三章Trend analysis allows a firm to compare its performance to: DA) other firms in the industryB) other time periods within the firmC) other industriesD) all of the aboveFeedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a firm’s performance against competitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.2Ratio analysis allows a firm to compare its performance to: DA) other firms in the industryB) other time periods within the firmC) other industriesD) all of the aboveFeedback: Trend analysis gives an analyst a long-term perspective. As a security analyst and a portfolio manager with Oppenheimer Capital, Dick Glasebrook spoke to a Senior Finance Managers’ Meeting at the Boeing Company on May 4, 1999. He said it is one thing to compare a firm’s performance against competitors within the same industry. But investors are not limited to specific industries. In fact, investors seek to diversify their investments across many different industries. So management should also compare performance to any well run company--both in and outside of their industry.3Usually, a firm's suppliers are most interested in its ___D_____ ratios.A) profitabilityB) debtC) asset utilizationD) liquidityFeedback: The suppliers are most interested in getting paid, as shown by the liquidity of thefirm.4 CORRECT__________D_____ would be most interested in a firm's debt utilization ratios.A) bondholdersB) stockholdersC) short-term creditorsD) Both A and BFeedback: Debt is indicated by a firm issuing bonds but is also a function of the debt to equity relationship or the degree of financial leverage. Both bond holders and stockholders are interested in this relationship although frof opposing viewpoints.5 CORRECTThe _______C______ ratio indicates the return firm shareholders are earning.A) return on assetsB) return on investmentC) return on equityD) net profit marginFeedback: The shareholders represent equity, or ownership in the firm.6 CORRECTWhich of the following is an example of a profitability ratio? CA) Quick ratioB) Average collection periodC) Return on equityD) Times interest earnedFeedback: This is the only profitability ratio that is listed. All profitability ratios have net income in the denominator.7Total asset turnover will indicate if there is a problem with the ___C______ ratio.A) debt to assetsB) times interest earnedC) fixed asset turnoverD) currentFeedback: Fixed asset turnover is part of total asset turnover.8 CORRECTAll of the following are asset utilization ratios except: DA) average collection periodB) inventory turnoverC) receivables turnoverD) return on assetsFeedback: Return on assets is a profitability ratio. Any ratio with net income in the denominator is a profitability ratio.9 CORRECTIf a firm's debt ratio is 55%, this means ____C__ of the firm's assets are financed by equity financing.A) 55%B) 50%C) 45%D) not enough information to answer questionFeedback: The equity portion plus the debt portion must add up to 100%.10 CORRECTAll of the following can present problems for ratio analysis except: DA) inflationB) inventory accounting methodsC) disinflationD) all of the aboveFeedback: These all may cause problems.第四章Planning for future growth is called: CA) capital budgetingB) working capital managementC) financial forecastingD) none of the aboveFeedback: This involves looking ahead to the future.2 INCORRECTWhich one of the following is NOT a tool of financial forecasting? BA) cash budgetB) capital budgetC) pro forma balance sheetD) pro forma income statementFeedback: The other three are all tools used by an analyst.3 CORRECTThe first step in developing a pro forma income statement is to: AA) build a sales forecastB) determine the production scheduleC) determine cost of goods soldD) none of the aboveFeedback: A sales forecast begins the process.4 INCORRECTPro forma statements are _B______ statements.A) actualB) projectedC) a previous year'sD) none of the aboveFeedback: Pro forma statements are based on estimates or projections.5 INCORRECTAll of the following compose cost of goods sold except ______D__________.A) raw materialB) laborC) overheadD) all of the above are part of cost of goods soldFeedback: The cost of good sold involves all three of these items.6 INCORRECTFinancial managers use the ______B_______ to plan for monthly financing needs.A) capital budgetB) cash budgetC) pro forma income statementD) none of the aboveFeedback: The cash budget allows for planning cash needs.7 INCORRECTThe payments that a firm collects from its customers are called _______C________.A) cash disbursementsB) cash outflowsC) cash receiptsD) none of the aboveFeedback: Cash receipts represent cash coming into the firm.8 INCORRECTExamples of cash disbursements are all but _________B________.A) payment for materials purchasedB) collection of accounts receivableC) payment of dividendsD) payment of taxesFeedback: The collection of accounts receivable is an example of a cash receipt, not a cash disbursement.9 CORRECTIn developing the pro forma balance sheet, we get common stock from__________A_______.A) the firm's previous balance sheetB) the firm's cash budgetC) the firm's income statementD) none of the aboveFeedback: Common stock appears on the balance sheet.10 INCORRECTThe percent of sales method of financial forecasting shows us the relationship between________D___ and financing needs.A) changes in the level of liabilitiesB) changes in the level of assetsC) changes in debtD) changes in the level of salesFeedback: It compares the relationship between balance sheet items and sales.第五章An example of a semi-variable cost is: DA) rentB) raw materialC) depreciationD) utilitiesFeedback: The other three represent fixed or variable costs.2 CORRECT_________A____ is the point at which firm profit is equal to zero.A) breakevenB) operating breakevenC) financial leverageD) combined breakevenFeedback: This is the point where the firm's revenues equal its expenses.3 INCORRECTIn breakeven analysis, if fixed costs rise, then the breakeven point will _____B_____.A) fallB) riseC) stay the sameD) none of the aboveFeedback: This implies that a larger quantity will have to be sold in order to break even.4 INCORRECTIn the breakeven formula, Price - Variable Cost is called the___C__________.A) breakeven pointB) leverageC) contribution marginD) none of the aboveFeedback: This implies that a larger quantity will have to be sold in order to cover the additional fixed costs and still break even.5 INCORRECTWhich of the following types of firms may operate with high operating leverage? BA) a doctor's officeB) an auto manufacturing facilityC) a mental health clinicD) none of the above would have high operating leverageFeedback: This implies a high break-even point and high operating expenses.6 INCORRECTThe __________C__________ is the percentage change in operating income that results from a percentage change in sales.A) degree of financial leverageB) breakeven pointC) degree of operating leverageD) degree of combined leverageFeedback: This is called the degree of operating leverage (DOL).7 CORRECTIf interest expenses for a firm rise, we know that firm has taken on more ______A________.A) financial leverageB) operating leverageC) fixed assetsD) none of the aboveFeedback: Financial leverage refers to interest expense on debt.8 INCORRECTThe ________B________ is the percentage change in earnings per share that results from a percentage change in operating income.A) degree of combined leverageB) degree of financial leverageC) breakeven pointD) degree of operating leverageFeedback: This is known as the degree of financial leverage (DFL).9 INCORRECTCombined leverage is the percentage change in relationship between sales and______C______.A) operating incomeB) operating leverageC) earnings per shareD) breakeven pointFeedback: This combines operating leverage and financial leverage.10 INCORRECTA highly leveraged firm is ____B______ risky than its peers.A) lessB) moreC) the sameD) none of the aboveFeedback: Leverage is equivalent to risk, because it implies a higher level of fixed costs.第六章Working capital management involves the financing and management of the __C_____ assets of the firm.A) fixedB) totalC) currentD) none of the aboveFeedback: Working capital management deals with the financing and management of current assets.2 INCORRECTAn asset sold at the end of a specified time period is called a ______B_______ asset.A) temporary currentB) self-liquidatingC) currentD) permanent currentFeedback: A self-liquidating asset is one that will be sold after a certain amount of time.3 CORRECTFixed assets are usually financed with _______A______ funds.A) long-termB) short-termC) permanentD) none of the aboveFeedback: Fixed assets are by definition long-term assets.4 INCORRECT_________B_____ is usually used to finance self-liquidating assets.A) Long-term financingB) Short-term financingC) Permanent financingD) none of the aboveFeedback: These are short-term or temporary assets.5 INCORRECTShort-term interest rates, in a normal economy, are generally ____C____ than long-term rates.A) higherB) the sameC) lowerD) none of the aboveFeedback: Long-term interest rates are normally higher than short-term interest rates to compensate for uncertainty or risk.6 INCORRECTThe expectations hypothesis says that _____B____ interest rates are a function of _______ interest rates.A) short-term; long-termB) long-term; short-termC) short-term; short-termD) none of the aboveFeedback: This theory says that long-term interest rates reflect the average of short-term expected rates.7 INCORRECTInsurance companies would tend to invest in ______C____ securities.A) short-termB) intermediate termC) long-termD) not enough information to answerFeedback: An insurance company would prefer long-term securities because they are more conservative or safer.8 INCORRECTThe _________D_____ theory says that investors must be paid a premium to hold long-term securities.A) expectations hypothesisB) time value theoryC) segmentationD) liquidity premiumFeedback: This is the liquidity premium.9 INCORRECTShort-term financing plans with high liquidity have: BA) high return and high riskB) moderate return and moderate riskC) low profit and low riskD) none of the aboveFeedback: This is known as a "middle-of-the-road" approach.10 INCORRECTLong-term financing plans with low liquidity have: BA) high return and high riskB) moderate return and moderate riskC) low return and low riskD) none of the aboveFeedback: This is also known as a "middle-of-the-road" approach.第七章The transaction motive for holding cash is for BA) a safety cushionB) daily operating requirementsC) compensating balance requirementsD) none of the aboveFeedback: This is money for everyday transactions.2 CORRECTWhich of the following motives for holding cash is required by the bank before loaning money? AA) compensating balance motiveB) transactions motiveC) precautionary motiveD) none of the aboveFeedback: This can be considered a form of collateral.3 INCORRECTThe difference between the cash balance on the firm's books and the balance shown on the bank's books is called: BA) the compensating balanceB) floatC) a safety cushionD) none of the aboveFeedback: Float implies that it takes time for checks to clear.4 CORRECTElectronic funds transfer has _____A_____ the use of float.A) reducedB) increasedC) had no effect onD) none of the aboveFeedback: Electronic funds transfer (EFT) has moved cash more quickly and reduced float.5 INCORRECTThe most utilized marketable security by most firms is the: DA) Treasury bondB) Agency securityC) Certificate of DepositD) Treasury billFeedback: Treasury bills (T-Bills) are very safe, popular investments.6 INCORRECTOf the following marketable securities, which are guaranteed by the Federal government? DA) agency securitiesB) negotiable certificates of depositC) banker's acceptancesD) none of the aboveFeedback: None of these are backed by the government.7 INCORRECTThe 5 C's of credit include: DA) conditionsB) collateralC) characterD) all of the aboveFeedback: The other two C's of credit are capacity and capital.8 INCORRECT BThe use of safety stock by a firm will:A) reduce inventory costsB) increase inventory costsC) have no effect on inventory costsD) none of the aboveFeedback: Safety stock is extra inventory a firm keeps in case of unforseen circumstances.9 INCORRECTAll of these factors are used in credit policy administration except: CA) credit standardsB) terms of tradeC) dollar amount of receivablesD) collection policyFeedback: The other three choices are the primary policy variables to consider.10 CORRECTFirms aim to hold ___A___ cash balances since cash is a non-interest earning asset.A) lowB) averageC) highD) none of the aboveFeedback: A firm does not want to keep too much cash on hand because it will lose interest (by not keeping the money in a bank).第八章The largest provider of short-term credit for a business is: BA) banking organizationsB) suppliers to the firmC) commercial paperD) EurodollarsFeedback: This is also known as trade credit.2 INCORRECTThe number of days until the firm is past due to a supplier is called the: CA) discount periodB) term to creditC) payment periodD) none of the aboveFeedback: The payment period is the number of days a firm has to pay its bill.3 INCORRECTIf a firm is given trade credit terms of 2/10, net 30, then the cost of the firm failing to take the discount is: CA) 2%B) 30%C) 36.72%D) 10%Feedback: This is calculated using formula 8-1 in this chapter.4 CORRECTThe interest rate given by a bank to its most creditworthy customers is the: AA) prime rateB) LIBOR rateC) federal funds rateD) discount rateFeedback: This is the "best" interest rate charged to people with excellent credit.5 INCORRECTWhich of the following types of bank loans generally have the highest effective rate of interest? DA) simple interest loanB) discount interest loanC) loan with a compensating balanceD) installment loanFeedback: Installment loans tend to be the most expensive.6 INCORRECTIf a firm needs to borrow $100,000, at 8% interest, to finance working capital needs and a 20% compensating is required, then the firm should borrow ____C______.A) $100,000B) $80,000C) $125,000D) $108,000Feedback: The formula to calculate this is: amount needed/(1-c), where c = the compensating balance percentage.7 CORRECTIf a bank offers a firm a simple interest loan of $1000 for 120 days at a cost of $60 interest, what is the effective rate of interest on the loan? AA) 18.00%B) 6.00%C) 20.00%D) none of the aboveFeedback: This is calculated by using formula 8-2 in this chapter.8 INCORRECTIf a company raises money to finance short-term needs by selling its accounts receivable to another party, this is called ___________. CA) pledgingB) warehousingC) factoringD) none of the aboveFeedback: Factoring means selling the accounts receivable outright.9 INCORRECTThe most restrictive policy for using inventory as collateral for short-term borrowing is called: BA) blanket inventory lienB) warehousing inventoryC) trust receiptD) factoringFeedback: This is a complex method of inventory financing wherein the lender takes control of the inventory.10 CORRECTA type of accounts receivable financing where a firm uses its receivables as collateral is called: AA) pledgingB) securitizationC) factoringD) warehousingFeedback: Pledging means using accounts receivable as collateral.第九章Both the future and present value of a sum of money are based on: CA) interest rateB) number of time periodsC) both a and bD) none of the aboveFeedback: These two factors are used in time value of money calculations.2 INCORRECTAn annuity is ___________________. CA) more than one paymentB) a series of unequal but consecutive paymentsC) a series of equal and consecutive paymentsD) a series of equal and non-consecutive paymentsFeedback: An annuity is a stream of equal payments to be received in the future.3 CORRECTIf you have $1000 and you plan to save it for 4 years with an interest rate of 10%, what is the future value of your savings? AA) $1464.00B) $1000.00C) $1331.00D) cannot be determinedFeedback: This is calculated by using formua 9-1 in this chapter.4 INCORRECTTime value of money is an important finance concept because: DA) it takes risk into accountB) it takes time into accountC) it takes compound interest into accountD) all of the aboveFeedback: Time value of money incorporates all of these concepts.5 INCORRECTThe present value of a dollar to be received in the future is: CA) more than a dollarB) equal to a dollarC) less than a dollarD) none of the aboveFeedback: The reason is because you can earn interest on the money.6 CORRECTThe future value of a dollar that you invest today is: AA) more than a dollarB) equal to a dollarC) less than a dollarD) none of the aboveFeedback: Again, the reason is because the money can earn interest.7 INCORRECTThe future value of an annuity is: CA) less than each annuity paymentB) equal to each annuity paymentC) more than each annuity paymentD) none of the aboveFeedback: The reason has to do with compound interest (or interest earning more interest).8 INCORRECTThe concepts of present value and future value are:DA) directly related to each otherB) not related to each otherC) proportionately related to each otherD) inversely related to each otherFeedback: They are essentially opposite sides of a coin.9 INCORRECTIf you win the lottery and you choose to have your proceeds distributed to you over a twenty-year time period, with the first payment coming to you one year from today, which calculation would you use to calculate the worth of those proceeds to you today? DA) future value of a lump sumB) future value of an annuityC) present value of a lump sumD) present value of an annuityFeedback: This is shown by formula 9-4 in this chapter. But this is not a typical situation. Most lotteries (let’s say $1 Million over 20 years), will pay you the first payment today and $50,000 each year for the next 19 years. This is actually an “annuity due” which is notcovered in this text. You’d have to calculate the present value of the annuity for 19 years and add the initial $50,000 you received today.10 CORRECTYou have $1000 you want to save. If four different banks offer four different compounding methods for interest, which method should you choose to maximize your $1000? AA) compounded dailyB) compounded quarterlyC) compounded semi-annuallyD) compounded annuallyFeedback: The more often interest is compounded the faster it will grow because you will begin to earn interest on the interest sooner.第十章In valuing a financial asset, you use these variables: DA) present value of future cash flowsB) discount rateC) required rate of returnD) all of the aboveFeedback: All of these are needed in order to value an asset.2 CORRECTThe principal amount of a bond at issue is called: AA) par valueB) coupon valueC) present value of an annuityD) present value of a lump sumFeedback: This is also known as the face value or stated value.3 INCORRECT BIf a bond's value rises above its par value during its life, interest rates have:A) gone upB) gone downC) stayed the sameD) there is no correlation with interest ratesFeedback: There is an inverse relationship between bond prices and interest rates (or yields).4 INCORRECTThe basic "rent" that you are charged when you borrow money is called: CA) inflation premiumB) risk premiumC) real rate of returnD) none of the aboveFeedback: This is known as the opportunity cost in economics.5 INCORRECTAs time to maturity draws near, a bond's value approaches: BA) zeroB) parC) the coupon paymentD) none of the aboveFeedback: The bond price gets closer to its face value the closer it is to maturity (see figure 10-2 in this chapter).6 INCORRECTOne characteristic of preferred stock is that:DA) it has no maturity dateB) it is a hybrid security with characteristics of both common stock and debtC) it pays a fixed dividend paymentD) all of the aboveFeedback: Preferred stock is described by all of the above characteristics.7 CORRECTCommon stock that has no growth in dividends is valued as if it were: AA) preferred stockB) a bondC) an optionD) none of the aboveFeedback: It is treated the same as preferred stock.8 INCORRECTA high price/earnings ratio usually indicates that a firm is a: BA) value stockB) growth stockC) convertible securityD) constant securityFeedback: A high p/e ratio indicates a stock that is growing and has positive future expectations.9 INCORRECTA low price/earnings ratio usually means that a firm: C。
财务管理ppt英文课件chapter-1.ppt
Part I: Part II: Part III: Part IV: Part V: Part VI:
Part VII:
Introduction to Financial Management Valuation Tools of Financial Analysis and Planning Working Capital Management Investment in Capital Assets The Cost of Capital , Capital Structure, and Dividend Policy Intermediate and Long-term Financing
Copyright 2001 Prentice-Hall, Inc.
12
Fundamentals of Financial Management, 11/e by Van Horne and Wachowicz.
Slides prepared by Wu Xiaolan
Profit Maximization
3
Fundamentals of Financial Management, 11/e by Van Horne and Wachowicz.
Slides prepared by Wu Xiaolan
Chapter 1
The Role of Financial Management
Copyright 2001 Prentice-Hall, Inc.
5
Fundamentals of Financial Management, 11/e by Van Horne and Wachowicz.
Slides prepared by Wu Xiaolan
财务管理chapter 1 introduction
▪Cash—not profits– is king.
现金流的时点
现金流的风险
1.2 企业组织形式及优缺点
Business
Sally’s Grocery
Proprietorship
Law Offices
Partnership
Corporation
Forms of other organizations
Treasurer 财务经理
Controller 会计经理
企业组织结构图
董事长
总经理
生产副经理
资本预算 现金管理 信用管理 股利支付 财务分析和 规划 等等
财务副经理
财务主任
会计主任
其他副经理
财务会计 成本会计 税务会计 对外报告
等等
财务的学科地位
►财务(Finance)与会计(Accounting)的区别 ：
kRF = represents the rate of interest on Treasury securities.
Determinants of interest rates
k = k* + IP + DP + LP + MP
k= k* = IP = DP = LP = MP =
required return on a debt security real risk-free rate of interest inflation premium default risk premium liquidity premium maturity risk premium
▪ 企业的资产应该拿哪些钱来购买？ ▪ 应当用负债还是所有者权益？
►营运资本管理-Working capital management
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T1.2 The Four Basic Areas of Finance
The Four Basic Areas of Finance
Corporate Finance
Investments
Financial Institutions
International Finance
Irwin/McGraw-Hill
Organizational Forms Sole Proprietorship Partnership
General Partnership / Limited Partnership
Corporation
Limited Liability Company
Legal Considerations
copyright © 2002 McGraw-Hill Ryerson, Ltd.
T1.2 The Four Basic Areas of Finance - Corporate Finance
Corporate Finance
Long-term investments
Capital Budgeting
CLICK MOUSE OR HIT SPACEBAR TO ADVANCE
Irwin/McGraw-Hill
copyright © 2002 McGraw-Hill Ryerson,Ltd.
Outline of the Text
Part I: Part II: Part III: Part IV: Part V: Part VI: Part VII: Part VIII: Part IX: Overview of Corporate Finance Financial Statements and Long-Term Financial Planning Valuation of Future Cash Flows Capital Budgeting Risk and Return Cost of Capital and Long-Term Financial Policy Short-Term Financial Planning and Management Topics in Corporate Finance Derivative Securities and Corporate Finance
T1.3 A Simplified Organizational Chart (Figure 1.1)
Irwin/McGraw-Hill
copyright © 2002 McGraw-Hill Ryerson, Ltd
Slide 9
T1.4 Forms of Business Organization
Slide 10
T1.5 International Corporations (Table 1.1) Company
Bayerische Moterenwerke AG
Type of Company Translated
Corporation
Country of Origin
Germany
In Original Language
Agency costs
Direct agency costs Indirect agency costs Mechanisms to ensure Managers are acting in
Public limited company Limited Naamloze Vennootschap Societa per Azioni
Limited liability co.
Public limited co. Corporation Joint stock co. Joint stock co.
Irwin/McGraw-Hill
copyright © 2002 McGraw-Hill Ryerson, Ltd.
Table of Contents (continued)
Chapter 15 Chapter 16 Chapter 17 Chapter 18 Raising Capital Financial Leverage and Capital Structure Policy Dividends and Dividend Policy Short-Term Finance and Planning
copyright © 2002 McGraw-Hill Ryerson, Ltd.
T1.1 Chapter Outline
Chapter 1
Introduction to Corporate Finance Chapter Organization
1.1 Corporate Finance and the Financial Manager 1.2 Forms of Business Organization
How do owners’ roles differ across organizational forms?
Economic Considerations
Why are corporations generally larger than other forms of business?
Irwin/McGraw-Hill copyright © 2002 McGraw-Hill Ryerson, Ltd
1.7 Trends in Financial Markets and Financial Management 1.8 Outline of the Text
1.9 Summary and Conclusions
Irwin/McGraw-Hill
copyright © 2002 McGraw-Hill Ryerson, Ltd.
Chapter 24 Chapter 25
பைடு நூலகம்
Mergers and Acquisitions
Risk Management: An Introduction to Financial Engineering Options and Corporate Securities
Irwin/McGraw-Hill
Irwin/McGraw-Hill
copyright © 2002 McGraw-Hill Ryerson, Ltd.
T1.1 Chapter Outline
Chapter 1
Introduction to Corporate Finance Chapter Organization (cont’d)
Long-term financing
Capital Structure
Short-term financing
Working Capital Management
Risk management
Derivative securities
Irwin/McGraw-Hill
copyright © 2002 McGraw-Hill Ryerson, Ltd.
Volvo AB
Peugot SA Irwin/McGraw-Hill
Sweden
France
Aktiebolag
Societe Anonyme
Joint stock co.
Joint stock co.
Slide 11
copyright © 2002 McGraw-Hill Ryerson, Ltd
Chapter 19
Chapter 20 Chapter 21 Chapter 22
Cash and Liquidity Management
Credit and Inventory Management International Corporate Finance Leasing
Chapter 23
T1.6 The Goal of Financial Management
The Goal of Financial Management
What are firm decision-makers hired to do?
“General Motors is not in the business of making automobiles. General Motors is in the business of making money.” --Alfred P. Sloan
Irwin/McGraw-Hill
copyright © 2002 McGraw-Hill Ryerson, Ltd.
Table of Contents
Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Introduction to Corporate Finance Financial Statements, Taxes, and Cash Flow Working with Financial Statements Long-Term Financial Planning and Corporate Growth Introduction to Valuation: The Time Value of Money Discounted Cash Flow Valuation Interest Rates and Bond Valuation Stock Valuation Net Present Value and Other Investment Criteria Making Capital Investment Decisions Project Analysis and Evaluation Some Lessons from Capital Market History Return, Risk, and the Security Market Line Cost of Capital