公司理财选择1

d 15. Agency costs refer to:a. the total dividends paid to stockholders over the lifetime of a firm.b. the costs that result from default and bankruptcy of a firm.c. corporate income subject to double taxation.d. the costs of any conflicts of interest between stockholders and management.e. the total interest paid to creditors over the lifetime of the firm.d 5. A(n) ____ asset is one which can be quickly converted into cash without significantloss in value.a. currentb. fixedc. intangibled. liquide. long-termc 21. Which one of the following accounts is generally the most liquid?a. inventoryb.buildingc.accounts receivabled.equipmente.patentBOOK V ALUEb 25. Book value:a. is equivalent to market value for firms with fixed assets.b.is based on historical cost.c.generally tends to exceed market value when fixed assets are included.d.is more of a financial than an accounting valuation.e.is adjusted to market value whenever the market value exceeds the stated bookvalue.a 26. When making financial decisions related to assets, you should:a.always consider market values.b.place more emphasis on book values than on market values.c.rely primarily on the value of assets as shown on the balance sheet.d.place primary emphasis on historical costs.e.only consider market values if they are less than book values.c 36. The cash flow to creditors includes the cash:a.received by the firm when payments are paid to suppliers.b.outflow of the firm when new debt is acquired.c. outflow when interest is paid on outstanding debt.d. inflow when accounts payable decreases.e. received when long-term debt is paid off.b 38. Which equality is the basis for the balance sheet?a. Fixed Assets = Stockholder's Equity + Current Assetsb. Assets = Liabilities + Stockholder's Equityc. Assets = Current Long-Term Debt + Retained Earningsd. Fixed Assets = Liabilities + Stockholder's Equitye. None of the above.b 45. Which of the following is not included in the computation of operating cash flow?a. Earnings before interest and taxesb. Interest paidc. Depreciationd. Current taxese. All of the above are included.BOOK V ALUEc 54. Martha’s Enterprises spent $2,400 to purchase equipment three years ago. Thisequipment is currently valued at $1,800 on today’s balanc e sheet but could actuallybe sold for $2,000. Net working capital is $200 and long-term debt is $800. What isthe book value of shareholders’ equity?a.$200b.$800c.$1,200d.$1,400e. The answer cannot be determined from the information provided. CORPORATIONa 9. A business created as a distinct legal entity composed of one or more individuals orentities is called a:a. corporation.b. sole proprietorship.c. general partnership.d. limited partnership.e. unlimited liability company.CORPORATIONe 36. 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. III and IV onlyc. I, II, and III onlyd. II, III, and IV onlye. I, III, and IV onlyCORPORATIONa 37. Which one of the following statements is correct concerning corporations?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 stockholdersFACE V ALUEb 2. The principal amount of a bond that is repaid at the end of the loan term is calledthe bond’s:a. coupon.b. face value.c. maturity.d. yield to maturity.e. coupon rate.MATURITYc 3. The specified date on which the principal amount of a bond is repaid is called thebond’s:a. coupon.b. face value.c. maturity.d. yield to maturity.YIELD TO MATURITYd 4. The rate of return required by investors in the market for owning a bond is calledthe:a. coupon.b. face value.c. maturity.d. yield to maturity.e. coupon rate.e. coupon rate.COUPON RATEe 5. The annual coupon of a bond divided by its face value is called the bond’s:a. coupon.b. face value.c. maturity.d. yield to maturity.e. coupon rate.ZERO COUPON BONDSe 22. A bond that makes no coupon payments and is initially priced at a deep discount iscalled a _____ bond.a. Treasuryb. municipalc. floating-rated. junke. zero couponCURRENT YIELDb 27. The annual coupon payment of a bond divided by its market price is called the:a. coupon rate.b. current yield.c. yield to maturity.d. bid-ask spread.e. capital gains yield.YIELD TO MATURITY AND CURRENT YIELDe 48. All else constant, as the market price of a bond increases the current yield _____ and the yield to maturity _____a. increases; increases.b. increases; decreases.c. remains constant; increases.d. decreases; increases.e. decreases; decreases.ZERO COUPON BONDSe 61. A zero coupon bond:a. is sold at a large premium.b. has a price equal to the future value of the face amount given a specified rate ofreturn.c. can only be issued by the U.S. Treasury.d. has less interest rate risk than a comparable coupon bond.e. has implicit interest which is calculated by amortizing the loan.ZERO COUPON BONDSb 62. The total interest paid on a zero-coupon bond is equal to:a. zero.b. the face value minus the issue price.c. the face value minus the market price on the maturity date.d. $1,000 minus the face value.e. $1,000 minus the par value.YIELD TO MATURITYe 66. The yield to maturity isa. the rate that equates the price of the bond with the discounted cash flows.b. the expected rate to be earned if held to maturity.c. the rate that is used to determine the market price of the bond.d. equal to the current yield for bonds priced at par.e. All of the above.FACE V ALUEe 70. Face value isa. always higher than current price.b. always lower than current price.c. the same as the current price.d. the coupon amount.e. None of the above.YIELD TO MATURITYc 74. If its yield to maturity is less than its coupon rate, a bond will sell at a _____, andincreases in market interest rates will _____.a. discount; decrease this discount.b. discount; increase this discount.c. premium; decrease this premium.d. premium; increase this premium.e. None of the above.BOND V ALUATIONc 82. Consider a bond which pays 7% semiannually and has 8 years to maturity. Themarket requires an interest rate of 8% on bonds of this risk. What is this bond'sprice?a. $ 942.50b. $ 911.52c. $ 941.74d. $1,064.81e. None of the above.ZERO COUPON BONDa 83. The value of a 20 year zero-coupon bond when the market required rate of returnof 9% (semiannual) is ____ .a. $171.93b. $178.43c. $318.38d. $414.64e. None of the above.YIELD TO MATURITYc 84. The bonds issued by Jensen & Son bear a 6 % coupon, payable semiannually. Thebond matures in 8 years and has a $1,000 face value. Currently, the bond sells at par.What is the yield to maturity?a. 5.87 %b. 5.97 %c. 6.00 %d. 6.09 %e. 6.17 %PRICE OF COUPON BONDa 87. Wine and Roses, Inc. offers a 7 % coupon bond with semiannual payments and ayield to maturity of 7.73 %. The bonds mature in 9 years. What is the market priceof a $1,000 face value bond?a. $953.28b. $953.88c. $1,108.16d. $1,401.26e. $1,401.86NET PRESENT V ALUEd 17. If a project has a net present value equal to zero, then:I. the present value of the cash inflows exceeds the initial cost of the project.II. the project produces a rate of return that just equals the rate required to accept the project.III. the project is expected to produce only the minimally required cash inflows.IV. any delay in receiving the projected cash inflows will cause the project to have a negative net present value.a. II and III onlyb. II and IV onlyc. I, II, and IV onlyd. II, III, and IV onlye. I, II, and III onlyc 51. The average accounting return is determined by:a. dividing the yearly cash flows by the investment.b. dividing the average cash flows by the investment.c. dividing the average net income by the average investment.d. dividing the average net income by the initial investment.e. dividing the net income by the cash flow.d 54. The shortcoming(s) of the average accounting return (AAR) method is (are):a. the use of net income instead of cash flows.b. the pattern of income flows has no impact on the AAR.c. there is no clear-cut decision rule.d. All of the above.e. None of the above.A VERAGE ACCOUNTING RETURNd 89. A project has average net income of $2,100 a year over its 4-year life. The initial cost of the project is $65,000 which will be depreciated using straight-line depreciation to a book value of zero over the life of the project. The firm wants to earn a minimal average accounting return of 8.5 percent. The firm should _____ the project based on the AAR of _____a. accept; 6.46 percent.b. accept; 9.69 percent.c. accept; 12.92 percent.d. reject; 6.46 percent.e. reject; 12.92 percent.NET PRESENT V ALUEa 45. Which of the following does not characterize NPV?a. NPV does not incorporate risk into the analysis.b. NPV incorporates all relevant information.c. NPV uses all of the project's cash flows.d. NPV discounts all future cash flows.e. Using NPV will lead to decisions that maximize shareholder wealth.USE OF DEBTc 4. The use of debt is calleda. operating leverage.b. production leverage.c. financial leverage.d. total asset turnover risk.e. business riska 6. The W ACC is used to _______ the expected cash flows when the firm has____________ .a. discount; debt and equity in the capital structureb. discount; short term financing on the balance sheetc. increase; debt and equity in the capital structured. decrease; short term financing on the balance sheete. None of the above.BETAd 11. The beta of a security provides ana. estimate of the market risk premium.b. estimate of the slope of the Capital Market Line.c. estimate of the slope of the Security Market Line.d. estimate of the systematic risk of the security.e. None of the above.b 18. Beta is useful in the calculation of thea. company's variance.b. company's discount rate.c. company's standard deviation.d. unsystematic risk.e. company's market rate.。