财务管理专业英语unit7
英语精读Unit 7 -unit 10
Unit 7 FinanceTranslation of the Text理财1理财活动是个人或组织(实体)为管理他们的财务而应用的一系列技巧,尤其是管理收入与支出的差额以及投资的风险｡2如果一个实体的收入大于支出,那么它就可以将盈余的收入出借或投资｡相反,如果一个实体的收入小于支出,那么它可以通过借款､出售权益要求权､削减开支或增加收入来增加资金｡贷方可以找到借方,即金融中介,如银行,或在证券市场购买股票或债券｡贷方获得利息,借方付的利息比贷方要高,这样金融中介就能赚取差价｡3银行汇集了众多借方和贷方的活动｡银行获得贷方的存款并付利息给贷方｡银行再将这些存款借给借方｡银行使规模不同的借方和贷方能够协调他们的活动｡因此,银行是现金流的补偿者——在空间上,银行允许不同的贷方和借方会面;在时间上,每个借款者,从理论上来说,最终都会还清借款｡4一个具体公司理财的例子就是一家公司向机构投资者,如投资银行,销售股票,该机构投资者再向公众销售｡股票所有者拥有该公司的部分所有权｡如果某公司总共有100股股票,你买了一股,那么你就拥有该公司1/100的所有权｡你拥有资产负债表上资产和债务净差额的1/100｡当然,作为股票的交换,公司获得现金用以拓展生意,这一过程叫做“股权融资”｡股权融资与债券销售(或其他形式的债务融资)的结合叫做公司的资本结构｡5理财用于个人(个人理财)､政府(政府理财)､企业(公司理财)等,同时也被各类组织,如学校和非营利组织所使用｡一般而言,上述的每个活动都是在考虑到机构设置的情况下,通过使用恰当的理财工具而实现目的｡6理财是公司管理的一个重要方面｡没有恰当的财务计划,一家新的企业甚至无法开始,更不用说成功了｡因为钱是惟一最强有力的流动资产,所以不论是对个人来说还是对组织来说,管理好钱对确保一个无忧的未来是非常必要的｡Keys1 Reading1. The activity of finance is the application of a set of techniques that individuals and organizations (entities) use to manage their financial affairs, particularly the differences between income and expenditure and the risks of their investments.2. The entity can raise capital by borrowing or selling equity claims, decreasing its expenses, or increasing its income.3. A bank aggregates the activities of many borrowers and lenders.4. The company’s capital str ucture is the mixture of equity financing with the sale of bonds or any other debt financing.5. Without proper financial planning, a new enterprise cannot even start, let alone be successful.2 Comprehension1. F2. F3. T4. T5. F6. T7. T3 V ocabularyPart 11. C2. E3. G4. B5. F6. A7. I8. J9. D10. HPart 21. debt2. balance3. liability4. deposit5. expenditure6. bond7. equity8. balance sheetPart 31. C2. A3. C4. D5. D6. A7. B8. C4 TranslationPart 11. 权益要求权9. 资产负债表2. 金融中介10. 股权融资3. 证券市场11. 债务融资4. 货币流12. 资本结构5. 机构投资者13. 非盈利机构6. 投资银行14. 机构设置7. 部分所有权15. 流动资产8. 净差额Part 2股票是在股票交易所上市和交易的,股票交易所是一家公司或互助组织,专门为股票及证券的买卖双方提供交易设施｡美国的股票市场包括所有在纽约证券交易所､纳斯达克和美国证券交易所上市的证券交易,也包括在地区交易所上市的证券,例如柜台电子报价系统和粉纸市场｡股票市场是公司融资的最重要来源之一｡它允许公司上市或为扩大规模而获得更多资金｡Terms1. NYSE纽约证券交易所(New York Stock Exchange)是全球公认组织结构最健全､设备最完善､管理及上市要求最严格的市场,至今已有二百多年的历史｡于纽约证券市场上市的公司包括全球最大型的企业,例如中国电信等中国大型国有企业｡很多世界500强(Fortune 500) 企业,选择了在纽约证交所挂牌上市｡2. NASDAQ纳斯达克,全称是National Association of Securities Dealers Automated Quotation——美国全国证券交易商协会自动报价系统｡它创立于1971年,是世界上第一个电子化证券市场,是全球创业板市场的成功典范,也是中国企业家最熟悉和关注的市场,规模仅次于纽约证券交易所｡纳斯达克股市分为全国板(National Market)和小板(Small Cap)｡上市的企业多是具有高成长潜力的大中型公司,而不只是科技股｡3. AMEX全美证券交易所(American Stock Exchange)坐落于纽约的华尔街附近,现为美国第三大股票交易所,运行成熟､规范,股票和衍生证券交易突出,其上市标准比纽约交易所要低一些,在此股市上市的公司偏重在中､小企业及传统行业,也有很多国外公司｡一般在全美证券交易所上市的股票价格偏低,而且交易量也较小｡4. OTCBBOTCBB全称是Over the Counter Bulletin Board——柜台电子报价系统,是直接受纳斯达克股市监管的市场｡柜台交易市场对对挂牌企业的要求较为宽松,并且不向挂牌公司收取任何费用,主要服务于成长期的中小企业｡5. Pink Sheet粉纸市场,又称粉单市场,是比柜台交易市场更低一级的报价系统,属于法人机构The Pink Sheet LLC｡粉纸市场挂牌的公司不需有注册会计师的审计财务报告,挂牌的条件也较宽松,而粉纸市场的股票流通性也相应较低｡5 Supplementary Reading1. finance2. funds3. bonds4. market5. repay6. resell7. interest8. loansText BTranslation of the Text怎样避免经济问题1每个人在一生中都会遇到经济问题｡这种经济问题也许是由个人或家人的疾病､失业､或超支消费所引起的,无论是哪种原因,经济问题都是很难解决的｡然而,这种危机通常是可以避免的｡您的经济情况也并不一定会变得越来越糟｡2您是否考虑过做预算?控制个人经济情况的第一步是要对您的收入和支出做一真实的评估｡先列出您所有的收入来源;然后,记下您的“固定”支出——即每月都要支付的相同数目——如抵押贷款或租金､汽车费用､保险费等｡下一步,列出用于其他各种开支,如消遣､娱乐和买衣服等活动的金额｡3记下您的所有支出,就连那些微不足道的开支也不要忽略｡这可以帮助您了解自己的消费方式,找出哪些开支是必要的,并将其他开支按优先次序排列出来｡这种做法的目的是为了确保您有能力支付基本开支:住房､饮食､医疗､保险和教育等｡公共图书馆和书店都有关于预算和资金管理技巧方面的书籍｡另外,计算机软件程序也是很好的工具,可以帮助制定预算,平衡您的收支,为您指定省钱和偿还债务的计划｡4您是否考虑过申请债务合并贷款?您每月是否都要偿还信用卡､购物卡和贷款的大量欠款?为什么不把它们合并起来,通过使用合并贷款来采取更优惠､更方便的还款方式?合并贷款可以让您重新开始,将您所有的贷款合并为一项——让您还款更方便,而且在很多情况下可以降低利率｡5精心管理的“债务合并贷款”有以下几种优点:减少您每月的支出6您也许会发现,债务合并贷款需要支付的利息要比您目前使用的信用卡､透支款项､购物卡等所要支付的总利息少｡所有收取更低利息的贷款方式都可以大幅度减少您的债务｡使您的还款更加简单7如果您因为忘记支付账单而陷入麻烦,那么选择债务合并贷款就意味着您每月只需要还款一次｡许多贷款方都可以接受直接扣款,所以这就免去了邮寄支票的麻烦｡提高您的信用等级8如果您发现您的信用记录让您很难申请贷款,那么债务合并贷款可以帮助您逐渐建立良好的信用等级｡只要每月按时还款,您的信用记录就会很快改善｡经过一定时间,您的信用记录上的欠款将会消失,于是,您就可以申请更便宜的贷款｡9债务合并贷款利率会因情况而异｡每月所要支付的钱数也会根据借贷数额和期限有所不同｡10英国债务合并贷款是以房产作为抵押的低利率贷款｡债务合并贷款可以允许借贷的资金范围是5000到75000英镑,在某些情况下您可以借贷相当于您总资产值125%的金额｡这既可以减少您要付的利息金额又可以降低每月的还款额,让您的生活重新步入正轨｡11债务合并贷款还可以让您的闲置资金(或资产)解放出来用于偿还您的购物卡和其他债务｡Terms1. Store Card零售商合作的联名信用卡,因为这一海外称为store card的产品是它最具优势的业务｡store card最早起源于沃尔玛等大零售商为吸引常客而发行的店内积分卡,并含有信用功能,但只能在其连锁网点使用｡2. Direct DebitDirect debit is a payment method that allows an organization to instruct their bank to collect varying amounts directly from customers’ accounts.There are generally two ways to set up a direct debit: one method requires the customer to instruct his or her bank to honor debit notes from the organization, the other one just requires the customer to give an authorization to the organization making the collections. The availability of these methods varies among countries and banks.3. Credit RatingAn assessment of the credit worthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of liabilities.Credit is important since individuals and corporations with poor credit will have difficulty finding financing, and will most likely have to pay more due to the risk of default.Keys1 ComprehensionPart 11. C2. B3. D4. A5. BPart 22 V ocabularyPart 11. crisis2. overcome3.spare4. mortgage5. repayments6. arrears7. cheque8. Direct debit9. Fixed10. overdraftPart21. assess2. recreational3. considerable4. repaid5. significant6. overwhelmed7. financial8. combinationPart 3premium1. C 2. Bmortgage1. B2. Aterm 1. C2. B 3. A3 TranslationPart 11. 金融危机8. 月付款2. 财务状况9. 直接扣账,直接付款3. 保险费10. 信用等级4. 消费模式11. 信用历史纪录5. 债务合并贷款12. 财产价值6. 支票簿13. 闲置资金,游资7. (零售店)联名信用卡Part 21. The country now faces an economic crisis.2. Fixed wages and lack of promotion act as a disincentive to employees.3. Most people opt for buying their own homes rather than renting them.4. Both their assessments of production costs were hopelessly inaccurate.5. I’ve t ried Cantonese, Hunan and Sichuan food and they differ quite considerably.Real Life PracticePart 11. All Fidelity funds are no load;historically higher yields than CDs or regular bank savings accounts;tax benefits: Some may provide state and federal tax exempt income;liquidity: Buy or sell at any time.2. Performance data shown represents past performance and is no guarantee of future results.3. The fund seeks to provide as high a level of current income, exempt from federal income taxes, as is consistent with liquidity and stability of principal.4. The fund normally invests in municipal money market securities, with at least 80% of its assets invested in municipal securities whose interest is exempt from federal income tax. The fund will normally not invest in municipal securities whose interest is subject to federal income tax or the federal alternative minimum tax. The fund invests in compliance with industry standard requirements for money market funds for the quality, maturity, and diversification of investments. The fund potentially invests more than 25% of total assets in municipal securities that finance similar types of projects.5. The municipal market is volatile and can be significantly affected by adverse tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Interest rate increases can cause the price of a money market security to decrease. Entities located in foreign countries can be affected by adverse political, regulatory, market, or economic developments in those countries. A decline in the credit quality of an issuer or the provider of credit support or a maturity shortening structure for a security can cause the price of a money market security to decrease. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.6. $5,0007. Expense Cap is a limit that Fidelity has placed on the level of the expenses borne by the fund. The cap is voluntary and indicates the maximum level of expenses (with certain exceptions) that the fund would be paying at that time. The Expense Cap may be terminated or revised at any time, which may lower the fund’s yield or return.Practical WritingPart 1a.9b.5c.4d.2e.7f.1g.15h.10i.3j.13k.6l.12m.11n.14 o.8Part 21. dramatically2. abruptly3. suddenly4. moderately5. slightly6. rapidly7. gradually8. steadily9. drastically10. constantlyPart 3a. atb. byc. from; tod. of; betweenUnit 8GlobalizationText ATranslation of the Text世界贸易组织世界贸易组织成立于1995年1月,是一个国际组织,目标是通过成员国(目前有140多个成员国)间的多边贸易体制在世界范围内建立经济的和平与稳定,并寻求通过消除进口关税及开放市场来推动自由贸易｡为了实现这一目标,世贸组织管理贸易协定,监督国际贸易政策,并作为贸易谈判的论坛,同时为四个主要目标而努力——通过普遍降低关税实现自由贸易,为了统一贸易流程而在所有成员国实施相同规则,通过降低补贴刺激竞争,以及保证所有成员国都获得相同的贸易优惠｡世贸组织还为发展中国家提供技术援助和培训｡2世贸组织协议涵盖知识产权､货物及服务,还监督成员国采取行动降低海关关税和其他贸易壁垒｡世贸组织通过要求成员国公布他们实施的贸易法规和措施以增加贸易政策的透明度｡3世贸组织是从一个临时性的合法协议——关税与贸易总协定发展而来的｡关贸总协定是1948年在古巴的哈瓦那起草的,目的是在二战后鼓励自由贸易｡最初有23个国家签订了关贸总协定｡455年后,超过90%的世界贸易都受世贸组织贸易法规的管辖,拥护者称经济的发展证明了世贸组织的成功｡世贸组织的指导原则5世贸组织实现成员国平等待遇的一个途径就是给予每个成员国“最惠国”待遇;当一个成员国授予另一个国家贸易特权,这一特权必须延伸到所有其他成员国｡另一个原则是“国家待遇”,意思是各国要平等对待外国进口商品和本土产品｡6贸易协议要所有成员国共同签署,没有国家有否决权｡协议由协商一致的原则决定是否通过,但在协商无法达成一致的情况下,世贸协议也允许大多数投票通过｡7世贸组织与很多其他多边组织的不同之处在于,世贸组织依赖于协商一致而不是大多数投票,并且给予各国平等待遇｡在世界银行和国际货币基金组织里,每个国家的选票份额是根据该国在国际经济体系内的地位而决定的｡8虽然世贸组织的达成协商一致的方法意味着贸易法规可以被很快地采纳,但批评者指出,这也将权力赋予了那些有足够的资源用于条约谈判的富国｡Terms1. Free TradeTrade between countries which takes place completely free of restrictions. Such trade allows specialization in member states of free trade areas, and lowers costs because, together with competition, the markets are increased. Within a free trade area there are no barriers, such as tariffs and quotas. However, there is not necessarily a common policy on trade with countries outside the free trade area.2. SubsidyA benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.Politics play an important part in subsidization. In general, the left is more in favor of having subsidized industries, while the right feels that industry should stand on its own without public funds.There are many forms of subsidies given out by the government, including welfare payments, housing loans, student loans and farm subsidies. For example, if a domestic industry, like farming, is struggling to survive in a highly competitive international industry with low prices, a government may give cash subsidies to farms so that they can sell at the low market price but still achieve financial gain.If a subsidy is given out, the government is said to subsidize that group/industry.3.Trade BarrierA trade barrier is a general term that describes any government policy or regulation that restricts international trade.Trade barriers are usually protectionist; that is, they are erected to protect domestic producers who would not be able to compete successfully with foreign producers in a free market or in free trade.4. Most Favored Nation StatusA method of establishing equality of trading opportunity among states by guaranteeing that if one country is given better trade terms by another, then all other states must get the same terms.In the twentieth century, the history of world trade is dominated by the move from protective tariffs to free trade. International agreements have permitted most of the world’s nations to export their products without facing discriminatory duties. A key concept in the liberalization of trade is most favored nation (MFN) status.MFN status is a method of preventing discriminatory treatment among members of an international trading organization. MFN status provides trade equality among partners by ensuring that an importing country will not discriminate against another country’s goods in favor of those from a third. Once the importing country grants any type of concession to the third party country, this concession must be given to all other countries.5. National TreatmentA concept of international law that declares if a state provides certain rights and privileges to its own citizens, it also should provide equivalent rights and privileges to foreigners who are currently in the country. This concept of equality can be found in bilateral tax treaties and also in most World Trade Organization agreements.6. World BankThe World Bank (the Bank) is a part of the World Bank Group (WBG), is a bank that makes loans to developing countries for development programs with the stated goal of reducing poverty. The World Bank differs from the World Bank Group in that the former only comprises the International Bank for Reconstruction and Development and the International Development Association, while the latter incorporates these entities in addition to three others.The World Bank’s activities are focused on the reduction of global poverty, focusing on the achievement of the Millennium Development Goals (MDGs), goals calling for the elimination of poverty and the implementation of sustainable development. The constituent parts of the Bank, theIBRD and the IDA, achieve their aims through the provision of low or no interest loans and grants to countries with little or no access to international credit markets. The Bank is a market based non profit organization, using its high credit rating to make up for the low interest rate of loans. 7. International Monetary FundThe International Monetary Fund (IMF) is an organization of 185 countries dedicated to promoting global monetary cooperation and the health and stability of the international monetary system.The IMF plays three major roles in the global monetary system. The Fund surveys and monitors economic and financial developments, lends funds to countries with balance of payment difficulties, and provides technical assistance and training for countries requesting it.keys1 Reading1. To create economic peace and stability in the world through a multilateral system among member states and seeking to promote free trade by opening markets through the elimination of import tariffs.2. Currently there are slightly more than 140 members.3. The WTO grew out of a provisional legal agreement, the General Agreement on Tariffs and Trade (GATT).4. To encourage free trade in the wake of World War II.5. When a member country grants a trade privilege to another nation, the privilege must be extended to all other member countries.2 Comprehension1.C2.A3.B4.D5.C6.A3 V ocabularyPart 11. C2. A3. H4. F5. B6. I7. D8. J9. G10. EPart 21. privileges2. concession3. Regarding4. veto5. multilateral6. oversee7. adopt8. administered9. forum10. representationPart 31. C2. B3. D4. A5. C6. B4 TranslationPart 11. 世界贸易组织2. 成员国3. 自由贸易4. 进口关税5. 贸易协定6. 国际贸易政策7. 知识产权8. 贸易壁垒9. 最惠国待遇10. 贸易特权11. 国民待遇12. 否决权13. 世界银行14. 国际货币基金组织15. 国际经济系统Part 2答案见课文的译文5 Supplementary Reading1. body2. from3. freely4. member5. international6. consensus7. resolve8. barrier9. against10. negotiationsText BTranslation of the Text全球化的发展加强了处于不同发展水平的国家间的相互依赖｡下文是美国总统乔治·W·布什在2006年来亚洲访问时的演讲稿｡阅读这篇演讲稿,了解其对全球化和国际合作的看法｡[QX)]布什概述国际合作的领域1早上好!本周,我将访问新加坡､印度尼西亚和越南,在那里我还将参加亚太经济合作组织举行的年度首脑会议｡在这次访问中,我为亚洲地区的人们带来以下消息:美国仍会立足于与亚洲的合作,因为我们共同的利益都取决于在亚洲这个世界重要地区扩大自由､增加机会｡2亚洲对于美国来说是非常重要的,因为我国的繁荣取决于与亚洲地区进行的不断发展的经贸往来｡如今,美国跨太平洋进行的贸易往来要比跨大西洋的还要多,我们应继续在这些地区开发新市场,提供美国商品和服务｡3我的立场非常明确:只要交易平台是公平合理的,美国的农民､小型企业和工人就可以与任何人竞争,所以,美国将继续追求与各个地区及世贸组织中的所有国家进行自由平等的贸易｡我们通过为美国产品和服务开发新市场,就可以在国外为我们的产品引来新客户,为我们国内的工人和企业带来新的就业和其他机会｡4亚洲对于美国来说非常重要的另一原因是我们都面临着跨越国界的像能源和疾病这样的新挑战｡我们不断发展的经济过分依赖石油,我们共同追求着可以负担得起的,可靠的新能源｡所以,我们在这个地区与我们的伙伴共同合作来发展新的能源技术,如洁净煤､乙醇､生物柴油和氢燃料电池等,以减少我们对石油的依赖程度｡5在该地区,我们还与伙伴们合作,来应对疾病带来的威胁｡例如,我们如果不能迅速发现并阻止禽流感,就可能导致大量死亡,并给我们的社会带来严重的损失｡所以,我们共享信息,适时做出明智的准备计划,以确保我们能够控制禽流感的传播,并为疾病的流行做好应对准备｡通过合作来应对这些问题和其他挑战,我们就可以在亚洲建立更有美好的社会,为美国建立关系密切的合作伙伴｡6亚洲对美国非常重要的最后一个原因是我们的安全面临着同样的威胁｡该地区的人们非常理解恐怖分子的威胁,因为他们曾被恐怖分子当作袭击的对象｡继911之后,恐怖分子袭击了巴厘岛的一家夜总会､雅加达的酒店,在马尼拉海湾停靠的一艘满载游客的渡船､俄罗斯一所满是小学生的学校､澳大利亚驻印尼大使馆,以及其他许多目标｡犯下这些罪行的杀人犯都是一个明确的集中的意识形态的追随者,他们憎恨自由并反对宽容｡7在我们当今世界中最大的危险是,这些恐怖分子能够获得大规模杀伤性武器,并用使用它们来勒索自由国家,或进行大范围的屠杀｡这对我们整个文明都是一种威胁,我们与亚洲伙伴共同努力来打击恐怖活动｡8从长远来看,保证安全的最佳途径是扩大自由｡历史告诉我们,自由的社会是和平的社会,所以,美国将自由和民主作为抵抗镇压和激进主义的最好选择｡通过与亚太地区的同盟合作,我们将捍卫我们的自由,面对新世纪的挑战,并为我们的子孙后代建立一个更加乐观､和平和繁荣的未来｡TermsAsia Pacific Economic CooperationTrade group established in 1989 in response to the growing interdependence of Asia Pacific economies and the advent of regional economic blocs (such as the European Union and the North American Free Trade Area) in other parts of the world. APEC works to raise living standards and education levels through sustainable economic growth and to foster a sense of community and an appreciation of shared interests among Asia Pacific countries. At the end of the 1990s APEC’s membership included its 12 founding members —Australia, Brunei, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and the United States — as well as Chile, China (including Hong Kong), Mexico, Papua New Guinea, Peru, Russia, and Vietnam; Taiwan also participates as “Chinese Taipei.” The Pacific Economic Cooperation Council, the South Pacific Forum, and the secretariat of the Association of Southeast Asian Nations maintain observer status. The APEC group represents about 40% of the world’s population, 40% of global trade, and 50% of the world’s gross national product.Keys1 ComprehensionPart 11. The prosperity in America depends on trade with Asia’s growing economies.2. As long as the playing field is level, America’s farmers, small businesses, and workers can compete with anyone, so America will continue to pursue free and fair trade at every level with individual countries across the whole regions and through the World Trade Organization.3. Asia and America should work together to develop new energy technologies that will make us less dependent on oil, including clean coal and ethanol, biodiesel and hydrogen fuel cells.4. Avian flu has the potential to claim many lives and inflict terrible damage on our societies if it breaks out. People should share information and put wise preparedness plans in place to help ensure that we can contain the spread of avian flu and be ready if a pandemic ever occurs.5. Since September the 11th, the terrorists have attacked a nightclub in Bali, a hotel in Jakarta, a ferry packed with passengers in Manila Bay, a school full of children in Russia, Australia’s embassy in Indonesia and many other targets.6. Terrorists could get their hands on weapons of mass destruction and use them to blackmail free nations or kill on an unimaginable scale.7. In the long run, the surest path to security is the expansion of freedom.Part 2Main idea:the expansion of freedom and opportunityFour Issues that President Bush addresses:1. tradefree and fair trade at every level;the World Trade Organization.2. energyclean coal and ethanol, bio diesel and hydrogen fuel cells.3. Avian flucontain the spread of Avian flu and be ready if a pandemic ever occurs4. terrorist threata risk to our entire civilizationProspects:defend our free way of life, confront the challenges of a new century, and build a more hopeful, peaceful, and prosperous future for our children and grandchildren.2 V ocabularyPart 11. inflicted2. summit3. transcended4. pursue5. committed6. outlined7. ally8. tolerance9. violence10. rejectedPart 21. to2. on3. to4. of5. on6. in7. to8. to9. on10. on3 TranslationPart 11. I committed an error in handling the business.2. The war inflicted heavy losses on the country.3. Western nations imposed tough sanctions on the country.4. Training is offered at every level in the department.5. The rapid spread of the disease is alarming the medical authorities.Part 2答案见课文的译文Practical WritingPart 11. investing in China2. business relationship3. foreign sole investment firms4. targeted sectors5. domestic and abroad areas6. highway construction7. domestic market demand8. most favorable polices9. investment projects 10. investigation and business tourPart 2SampleDear Sirs,We have your name and address through the introduction of Mr. A.G. TopWorth of Swanson & Bros., of Hamburg, who is one of our old clients. We wish to inform you that we specialize in exporting chinaware and shall be pleased to enter into business relations with you.If our above desire coincides with yours, please let us know and also keep us informed of your specific enquiries so that we can send our illustrated catalogue and price list for your reference without delay.In the meantime, we shall appreciate it very much if you will furnish us with the name of your bank prior to the conclusion of an initial transaction between us.We are looking forward to receiving your first enquiry.Yours sincerelyUnit 9 Intercultural CommunicationTranslation of the Text跨文化交流策略1有效地与来自不同文化的人交流是非常具有挑战性的｡文化决定了人的思维方式——观察､聆听､理解这个世界的方式｡因此,同一个词对来自不同文化的人来说可能意味着不同的东西,即使他们讲的是同一种语言｡当语言不同,交流中必须使用翻译的时候,产生误解的可能性就更大了｡2有效的文化交流的关键是知识｡首先,人们必须了解跨文化交流的潜在问题,并有意识地努力克服这些问题｡其次,有必要假设一个人的努力不会总是成功的,并随时恰当地调整个人的行为｡3例如,人们应该总是假定文化差异很有可能导致交流问题,并在出现问题的时候,乐于以耐心和宽容之心对待,而不是采取敌对和攻击的态度｡在跨文化交谈过程中,人们应该慢一些､小心地谈话,而不应该迅速得出结论认为你明白对方的想法和话语｡4跨文化交流专家威廉·尤里对激烈冲突的建议是:停下来､聆听､思考,也就是他所形容的当情况变得紧张的时候,要“到阳台上去”｡这句话的意思是暂时停止争吵,各退一步,然后在采取下一个行动之前反思一下这是怎么回事｡5这种方法在跨文化交流中也很有帮助｡当事情看起来越来越糟的时候,停下来或慢下来思考｡这是怎么回事?有没有可能我误解了他们说的话或他们误解了我?通常,误解是问题的根源｡6积极聆听可以用来检查是否出现误解——通过重复自己认为别人是什么意思,他就可以确定他是否准确地理解了交流的内容｡但是,如果不同的语言或文化群体之间的用词不同,那么即使是积极聆听也会无法注意到误解的产生｡7通常,熟悉双方文化的中间人在跨文化交流情况下会有所帮助｡8他们既可以翻译谈话的内容,也可以翻译谈话的方式｡例如,语气很强的语言在一种文化里是适合的,而在另一种文化里是不适合的,如果听话者的文化比较习惯于委婉的语言,那么中间人在翻译时,就可以将这种强语气翻译得缓和一些｡他们还可以调整讲话和做事的时机｡有些文化中谈话喜欢直入主题;有些喜欢先闲聊几句以便于与对方建立和谐的关系｡如果对主要问题的讨论来得太快了,需要先“热身”的一方就会觉得不舒服｡一个了解这一点的中间人或调解人就可以解释这个问题,然后对谈话程序做出适当调整｡9但是有时候中间人也有可能使交流变得更加困难｡如果中间人与争论一方来自同一文化或国家,与另一方却不同,这就显得他具有偏见｡就算中间人并没有有意地持有偏见,通常他也会更加倾向于支持或理解与他来自同一文化的人,就是因为他能够更好地理解他们｡但是,当中间人来自于第三种文化,跨文化交流产生误解的可能性会更大｡在这种情况下,额外讨论一些进行讨论的过程和方式会比较可取,在对话或谈判过程中每一步也要额外花些时间来进行确定和进一步确定｡Keys1 Reading1. Because cultures provide people with ways of thinking —ways of seeing, hearing, and interpreting the world. Thus the same words can mean different things to people from different cultures, even when they talk the “same” language.2. To stop, listen, and think. This means withdraw from the situation, step back, and reflect on what is going on before you act.3. Active listening can sometimes be used to check this out — by repeating what one thinks he or she heard, one can confirm that one understands the communication accurately.4. They can translate both the substance and the manner of what is said. They can also adjust the timing of what is said and done.5. This gives the appearance of bias.2 Comprehension。
会计英语Unit 7 Owner’s Equity
2．The debt the shareholder should be responsible for will
be no more than the money he has put in. This is called the limited personal liabilities. 每个出资者以他们的出 资额为限对公司债务承担责任。 这被称作“有限责任 制”。
然而与所有者权益相比债权人的索偿权在法律上具有优先地位在所有者权益之前首先得以兑现所以所有者权益上实际反应的只是一个剩余数
会计英语Unit 7 Owner’s Equity
Learning Objectives
The main purpose of this unit is to give you more knowledge about owner’s equity. After learning this unit, you should be able to:
Owner’s equity represents the claims of owners to the business’ assets. However, for the creditors’ claims have legal priorities over the owner’s claim, the
1. Identify the three forms of business organizations.
2. Describe what the partnership is.
3. Outline the advantages of corporations.
4. Explain why the form of corporation is becoming more and more popular.
财务管理CHAPTER7(可编辑修改word版)
II. CONCEPTSCHAPTER 7 Interest Rates and Bond ValuationBOND FEATURESd36. A bond with a 7 percent coupon that pays interest semi-annually and is priced at par will have a market price of and interest payments in the amount ofeach.a. $1,007; $70b. $1,070; $35c. $1,070; $70d. $1,000; $35e. $1,000; $70BOND PRICES AND YIELDSe37. All else constant, a bond will sell at when the yield to maturity is the coupon rate.a. a premium; higher thanb. a premium; equal toc.at par; higher thand.at par; less thane. a discount; higher thanBOND PRICES AND YIELDSd 38. All else constant, a coupon bond that is selling at a premium, must have:a. a coupon rate that is equal to the yield to maturity.b. a market price that is less than par value.c.semi-annual interest payments.d. a yield to maturity that is less than the coupon rate.e. a coupon rate that is less than the yield to maturity.BOND PRICESc 39. The market price of a bond is equal to the present value of t he:a.face value minus the present value of the annuity payments.b.annuity payments plus the future value of the face amount.c.face value plus the present value of the annuity payments.d.face value plus the future value of the annuity payments.e.annuity payments minus the face value of the bond.BOND PRICESa 40. As the yield to maturity increases, t he:a.amount the investor is willing to pay to buy a bond decreases.b.longer the time to maturity.c.lower the coupon rate desired by that investor.d.higher the price the investor offers to buy a bond.e.lower the rate of return desired by the investor.SEMIANNNUAL BONDSe 41. American Fortunes is preparing a bond offering with an 8 percent coupon rate. Thebonds will be repaid in 10 years. The company plans to issue the bonds at par valueand pay interest semiannually. Given this, which of the following statements arecorrect?I.The initial selling price of each bond will be $1,000.II.After the bonds have been outstanding for 1 year, you should use 9 as the number of compounding periods when calculating the market value of the bond.III.Each interest payment per bond will be $40.IV.The yield to maturity when the bonds are first issued is 8 percent.a.I and II onlyb.II and III onlyc.II, III, and IV onlyd.I, II, and III onlye.I, III, and IV onlySEMIANNUAL BONDS AND EFFECTIVE ANNUAL RATEd 42. The newly issued bonds of the Wynslow Corp. offer a 6 percent coupon withsemiannual interest payments. The bonds are currently priced at par value. Theeffective annual rate provided by these bonds must be:a.equal to 3 percent.b.greater than 3 percent but less than 4 percent.c.equal to 6 percent.d.greater than 6 percent but less than 7 percent.e.equal to 12 percent.INTEREST RATE RISKd43. Which one of the following statements is correct concerning interest rate risk as it relates to bonds, all else equal?a.The shorter the time to maturity, the greater the interest rate risk.b.The higher the coupon rate, the greater the interest rate risk.c.For a bond selling at par value, there is no interest rate risk.d.The greater the number of semiannual interest payments, the greater the interestrate risk.e.The lower the amount of each interest payment, the lower the interest rate risk.INTEREST RATE RISKe44. Which one of the following bonds has the greatest interest rate r isk?a.5-year; 9 percent couponb.5-year; 7 percent couponc.7-year; 7 percent coupond.9-year; 9 percent coupone.9-year; 7 percent couponINTEREST RATE RISKb45. Interest r ate risk as the time to maturity increases.a.increases at an increasing rateb.increases at a decreasing ratec.increases at a constant rated.decreases at an increasing ratee.decreases at a decreasing rateINTEREST RATE RISKc46. You own a bond that has a 7 percent coupon and matures in 12 years. You purchasedthis bond at par value when it was originally issued. If the current market rate for thistype and quality of bond is 7.5 percent, then you would expect:a.the bond issuer to increase the amount of each interest payment on these bonds.b.the yield to maturity to remain constant due to the fixed coupon rate.c.to realize a capital loss if you sold the bond at the market price today.d.today’s market price to exceed the face value of the bond.e.the current yield today to be less than 7 percent.INTEREST RATE RISKc 47. You expect interest rates to decline and wish to capitalize on the anticipated changes inbond prices. To realize your maximum gain, all else constant, you should purchase bonds.a.short-term; low couponb.short-term; high couponc.long-term; zero coupond.long-term; low coupone.long-term; high couponYIELD TO MATURITY AND CURRENT YIELDe 48. All else constant, as the market price of a bond increases the current yieldandthe yield to maturitya.increases; increases.b.increases; decreases.c.remains constant; increases.d.decreases; increases.e.decreases; decreases.BOND FEATURESd 49. Which of the following statements concerning bond features is (are) c orrect?I.Bondholders generally have voting power in a corporation.II. Bond interest is tax-deductible as a business expense.III. The repayment of the bond principle is tax-deductible.IV. Failure to pay either the interest payments or the bond principle as agreed can cause afirm to go into bankruptcy.a. II onlyb. I and II onlyc. III and IV onlyd. II and IV onlye. II, III, and IV onlyBOND INDENTUREd50. Which of the following items are generally included in a bond i ndenture?I.call provisionsII.security descriptionIII.current yieldIV.protective covenantsa.I and II onlyb.II and IV onlyc.II, III, and IV onlyd.I, II, and IV onlye.I, II, III, and IVBOND CLASSIFICATIONSe51. Which one of the following statements is correct concerning bond classifications?a. A debenture is a long-term bond secured by the fixed assets of a firm.b. A mortgage security is a bond issued solely by a home builder.c. A note is a bond which has an original maturity date longer than 10 years.d. A subordinated bond receives preferential treatment over all other bonds in abankruptcy.e. A callable bond can be repurchased by the issuer prior to the initial maturity date.CALLABLE BONDSb52. Callable bonds g enerally:a.allow the bondholder to decide when the bond is to be called.b.are associated with sinking funds.c.permit the issuer to repurchase the bonds at a discount.d.are called within the first couple of years after issuance.e.are required to have a deferred call provision if they have a “make-whole” callprovision.PROTECTIVE COVENANTSc53. Which of the following is a (are) positive covenant(s) that might be found in a bond indenture?I.The company shall maintain a current ratio of 1.5 or better.II.The company must limit the amount of dividends it pays according to the stated formula.III.The company cannot lease any major assets without approval by the lender. IV.The company must maintain the loan collateral in good working order.a.I onlyb.I and II onlyc.I and IV onlyd.II and IV onlye.I, II, and IV onlyPROTECTIVE COVENANTSe 54. Protective c ovenants:a.are primarily designed to protect the issuing corporation from unreasonable demandsof bondholders.b.are consistent for all bonds issued by a corporation within the United States.c.are limited to stating actions which a firm must take.d.only apply to bonds that have a deferred call provision.e.are primarily designed to protect bondholders from future actions of the bond issuer.BOND RATINGSb 55. Which one of the following statements concerning bond ratings isc orrect?a.Standard and Poor’s and Value Line are the primary bond rating agencies.b.Bond ratings are solely an assessment of the creditworthiness of the bond issuer.c.Investment grade bonds include only those bonds receiving one of the highest threebond ratings.d.Bond ratings evaluate the expected price volatility of a bond issue.e.All bonds receive the same rating classification from all rating agencies.BOND RATINGSd 56. A “fallen angel” is a bond t hat:a.lowered its annual interest payment.b.has moved from being a long-term obligation to being a short-term obligation.c.has moved from having a yield to maturity in excess of the coupon rate to having ayield to maturity that is less than the coupon rate.d.has moved from being an investment-grade bond to being a junk bond.e.is rated as Ba by one rating agency and rated as BB by another rating agency.TREASURY BONDSa 57. Bonds issued by the ernment:I.are considered to be free of default risk.II.are considered to be free of interest rate risk.III.provide totally tax-free income.IV.pay interest that is exempt from federal income taxes.a.I onlyb.I and III onlyc.I and IV onlyd.II and III onlye.II and IV onlyTREASURY BONDSd 58. Treasury bonds a re:a.those bonds issued by any governmental agency in the U.S.b.issued only on the first day of each fiscal year by the U.S. Department of Treasury.c.preferred by high-income individuals because they offer the best tax benefits.d.generally issued as coupon bonds.e.totally risk-free.MUNICIPAL BONDSa 59. Municipalb onds:a.offer income tax advantages to individuals.b.generally pay a higher rate of return than corporate bonds.c.are those bonds issued only by local municipalities, such as a city or a borough.d.are rarely callable.e.pay interest that is always exempt from both federal and state income taxes.TAXABLE VERSUS MUNICIPAL BONDSd60. The break-even tax rate between a taxable corporate bond yielding 7 percent and a comparable nontaxable municipal bond yielding 5 percent can be expressed as:a. .07 ÷ (1 - t*) = .05.b. .05 ÷ (1 - t*) = .07.c. .07 + (1 - t*) = .05.d. .07 ⨯ (1 - t*) = .05.e. .05 ⨯ (1 - t*) = .07.ZERO COUPON BONDSe61. A zero coupon b ond:a.is sold at a largepremium.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 t o: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.FLOATING-RATE BONDSd 63. The collar of a floating-rate bond refers to the minimum and maximum:a.call periods.b.maturity dates.c.market prices.d.coupon rates.e.yields to maturity.FLOATING-RATE BONDSd 64. Which of the following are common characteristics of floating-rate b onds?I.adjustable coupon ratesII.adjustable maturity datesIII.put provisionIV.coupon capa.I and II onlyb.II and III onlyc.I, II, and IV onlyd.I, III, and IV onlye.I, II, III, and IVFLOATING RATE BONDSc 65. A corporation is more prone to issue floating-rate bonds when they expect futureinterest rates to over the life of the bond.a.remain constantb.increase briefly and then decline slightlyc.continually declined.decline briefly and then increase significantlye.continually increaseCATASTROPHE BONDSe 66. “Cat” bonds are primarily designed to h elp:a.cities recover from economic recessions.b.corporations recover from overseas competition.c.the federal government cope with huge deficits.d.animal food producers raise capital to compete internationally.e.insurance companies recover from natural disasters.TYPES OF BONDS AND INVESTOR PREFERENCESc 67. Investors generally tend to b uy:a.Treasury bonds for their high yields.b.municipal bonds for their high yields.c.convertible bonds for their potential price appreciation.d.corporate bonds for their liquidity.e.Treasury bonds for their preferential tax treatment.TYPES OF BONDSb68. A convertible bond is a bond that can b e:a.exchanged for cash at prescribed points in time.b.exchanged for a stated number of shares of common stock of the bond issuer.c.modified from a fixed coupon bond into a floating coupon bond at prescribed points intime.d.submitted to the issuer for redemption at the discretion of the bondholder.e.submitted for payment any time the economy converts into a recessionary period.PUT PROVISIONc69. A put provision in a bond indenture a llows:a. a bond issuer to recall the bond after a specified period of time at a price that exceedsthe face amount.b. a bondholder to force the issuer to increase the coupon rate if inflation increases bymore than a specified amount.c.the bondholder to force the issuer to buy back the bond at a specified price prior tomaturity.d.the issuer to convert a coupon bond into a zero coupon bond at their discretion.e.the issuer to suspend interest payments for any year in which the interest expenseexceeds the net income of the firm.BOND TRADINGb 70. If you want to sell a bond issued by a smaller corporation, y ou:a.can always do so quite easily by trading it on the New York Stock Exchange.b.may encounter difficulties in executing the trade.c.can usually do so quite efficiently due to the high liquidity of the bond market.d.can do so quite quickly due to the high volume of trading in the bond markets.e.will most likely trade in an auction market, such as the New York Stock Exchange.BASIS POINTa 71. One basis point is equal t o:a..01 percent.b..10 percent.c. 1.0 percent.d.10 percent.e.100 percent.CORPORATE BOND QUOTEc 72. The “EST SPREAD” shown in The Wall Street Journal listing of corporate bondsrepresents the estimated:a.yield to maturity.b.difference between the current yield and the yield to maturity.c.difference between the bond’s yield and the yield of a particular Treasury issue.d.range of yields to maturity provided by the bond over its life to date.e.difference between the yield to call and the yield to maturity.TREASURY BOND QUOTEe 73. A Treasury bond that is quoted at 100:07 is s elling:a.at 7 percent over the face amount.b.at a 7 percent discount.c.at a 7 percent premium.d.at par and pays a 7 percent coupon.e.for about $2.19 over face value.TREASURY BONDSb 74. As of 2004, the longest maturity Treasury security currently being issued is the:a.5-year note.b.10-year note.c.15-year bond.d.20-year bond.e.30-year bond.BID VERSUS ASKED PRICESa 75. A Treasury bond has an asked quote of 100:12 and a bid quote of 100:11. One bond:a.can be purchased at a price of $1,003.75.b.can be sold at a price of $1,003.75.c.has a spread of 10 basis points.d.has a yield to maturity that lies between 11 and 12 percent.e.can be sold to a dealer at a price of $1,001.10.CLEAN VERSUS DIRTY PRICESc 76. Today, August 13, you want to buy a bond with a quoted price of 101.5. The bondpays interest on February 1 and August 1. The price you will pay to purchase thisbond is equal to the:a.clean price.b.muddy price.c.dirty price.d.par value price.e.bid price.REAL RATE OF RETURNd 77. The increase you realize in buying power as a result of owning a bond is referred to asthe rate of return.a. inflatedb. realizedc. nominald. reale. risk-freeFISHER EFFECTe 78. The Fisher formula is expressed as: a.1 + r = (1 + R) ÷ (1 + h).b. 1 + r = (1 + R) ⨯ (1 + h).c. 1 + h = (1 + r) ÷ (1 + R).d. 1 + R = (1 + r) ÷ (1 + h).e. 1 + R = (1 + r) (1 + h).FISHER EFFECTd 79. The Fisher Effect primarily emphasizes the effects of risk on an investor’s rateof return.a.defaultb.marketc.interest rated.inflatione.maturityTERM STRUCTURE OF INTEREST RATESa 80. The term structure of interest rates reflects t he:a.pure time value of money for various lengths of time.b.actual risk premium being paid for corporate bonds of varying maturities.c.pure inflation adjustment applied to bonds of various maturities.d.interest rate risk premium applicable to bonds of varying maturities.e.nominal interest rates applicable to coupon bonds of varying maturities.TERM STRUCTURE OF INTEREST RATESd 81. Which of the following statements are correct concerning the term structure of interestrates?I.The outlook for future inflation influences the shape of the term structure of interestrates.II.The term structure of interest rates includes only the real rate of return and the inflation premium.III.The interest rate risk premium is included in the term structure of interest rates.IV.The term structure of interest rates can be downsloping.a.I and II onlyb.II and IV onlyc.III and IV onlyd.I, III, and IV onlye.I, II, and IV onlyCORPORATE VERSUS TREASURY BONDSc 82. Two of the primary differences between a corporate bond and a Treasury bond withidenticalmaturity dates are related to:a.interest rate risk and time value of money.b.time value of money and inflation.c.taxes and potential default.d.taxes and inflation.e.inflation and interest rate risk.III.PROBLEMSYIELD TO MATURITYc 83. The bonds issued by Jensen & Son bear a 6 percent coupon, payable semiannually.The bond matures in 8 years and has a $1,000 face value. Currently, the bond sellsat par. What is the yield to maturity?a. 5.87 percentb. 5.97 percentc. 6.00 percentd. 6.09 percente. 6.17 percentYIELD TO MATURITYa 84. A General Co. bond has an 8 percent coupon and pays interest annually. The facevalue is $1,000 and the current market price is $1,020.50. The bond matures in 20years. What is the yield to maturity?a.7.79 percentb.7.82 percentc.8.00 percentd.8.04 percente.8.12 percentYIELD TO MATURITYd 85. Winston Enterprises has a 15-year bond issue outstanding that pays a 9 percentcoupon. The bond is currently priced at $894.60 and has a par value of $1,000.Interest is paid semiannually. What is the yield to maturity?a.8.67 percentb.10.13 percentc.10.16 percentd.10.40 percente.10.45 percentPRICE OF COUPON BONDa 86. Wine and Roses, Inc. offers a 7 percent coupon bond with semiannual paymentsand a yield to maturity of 7.73 percent. The bonds mature in 9 years. What is themarket price of a $1,000 face value bond?a. $953.28b. $953.88c. $1,108.16d. $1,401.26e. $1,401.86PRICE OF COUPON BONDc87. Party Time, Inc. has a 6 percent coupon bond that matures in 11 years. The bond pays interest semiannually. What is the market price of a $1,000 face value bond ifthe yield to maturity is 12.9 percent?a. $434.59b. $580.86c. $600.34d. $605.92e. $947.87PRICE OF COUPON BONDd88. Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yieldto m aturity is 5.85 percent and the maturity date is 9 years. What is the market price of a $1,000 face value bond?a. $742.66b. $868.67c. $869.67d. $1,078.73e. $1,079.59TIME TO MATURITY OF COUPON BONDa89. The Lo Sun Corporation offers a 6 percent bond with a current market price of $875.05. The yield to maturity is 7.34 percent. The face value is $1,000. Interest ispaid semiannually. How many years is it until this bond matures?a.16 yearsb.18 yearsc.24 yearsd.30 yearse.36 yearsTIME TO MATURITY OF COUPON BONDb90. High Noon Sun, Inc. has a 5 percent, semiannual coupon bond with a current marketprice of $988.52. The bond has a par value of $1,000 and a yield to maturity of 5.29percent. How many years is it until this bond matures?a. 4.0 yearsb. 4.5 yearsc. 6.5 yearsd.8.0 yearse.9.0 yearsPRICE OF ZERO COUPONa91. Your firm offers a 10-year, zero coupon bond. The yield to maturity is 8.8 percent.What is the current market price of a $1,000 face value bond?a. $430.24b. $473.26c. $835.56d. $919.12e. $1,088.00PRICE OF ZERO COUPON BONDb92. Ted’s Co.offers a zero coupon bond with an 11.3 percent yield to maturity. The bondmaturesin 16 years. What is the current price of a $1,000 face value bond?a. $178.78b. $180.33c. $188.36d. $190.09e. $192.18TIME TO MATURITY OF ZERO COUPON BONDc93. The zero coupon bonds of Markco, Inc. have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.87 percent. How many years is it untilthis bond matures?a.7 yearsb.10 yearsc.14 yearsd.18 yearse.21 yearsINTEREST RATE RISKb 94. A 12-year, 5 percent coupon bond pays interest annually. The bond has a face value of$1,000. What is the change in the price of this bond if the market yield rises to 6percent from the current yield of 4.5 percent?a.11.11 percent decreaseb.12.38 percent decreasec.12.38 percent increased.14.13 percent decreasee.14.13 percent increaseINTEREST RATE RISKd 95. Jackson Central has a 6-year, 8 percent annual coupon bond with a $1,000 par value.Earls Enterprises has a 12-year, 8 percent annual coupon bond with a $1,000 parvalue. Both bonds currently have a yield to maturity of 6 percent. Which of thefollowing statements are correct if the market yield increases to 7 percent?a.Both bonds would decrease in value by 4.61 percent.b.The Earls bond will increase in value by $88.25.c.The Jackson bond will increase in value by 4.61 percent.d.The Earls bond will decrease in value by 7.56 percent.e.The Earls bond will decrease in value by $50.68.CURRENT YIELDa 96. D’Angelo’s bonds have a face value of $1,000 and a current market price of $1010.The bonds have a 7 percent coupon rate. What is the current yield on these bonds?a. 6.93 percentb. 6.97 percentc.7.00 percentd.7.03 percente.7.07 percentCURRENT YIELDd 97. Mitzi’s, II. Bonds offer a 6 percent coupon at a current market price of $989. Thebonds have a face value of $1,000 and a call price of $1,020. What is the currentyield on these bonds?a. 5.88 percentb. 5.97 percentc. 6.00 percentd. 6.07 percente. 6.12 percentCALL PREMIUMc 98. The bonds offered by Leo’s Pumps are callable in 3 years at a quoted price of 101.What is the amount of the call premium on a $1,000 par value bond?a. $3.33b. $5.00c. $10.00d. $13.33e. $100.00CORPORATE BOND QUOTEc 99. A corporate bond is quoted at a current price of 102.767. What is the market price of abond with a $1,000 face value?a. $1,000.28b. $1,002.77c. $1,027.67d. $1,102.77e. $1,276.70ZERO COUPON BOND QUOTEc 100. A $1,000 face value zero coupon bond is quoted at a price of 43.30. What is theamount you would pay to purchase this bond?a. $43.30b. $430.30c. $433.00d. $956.70e. $1,043.30TREASURY BOND QUOTEb101. A Treasury bond is quoted at a price of 106:13. What is the market price of this bond if the face value is $1,000?a. $106.13b. $1,064.06c. $1,106.13d. $1,106.41e. $1,106.64TREASURY BOND QUOTE AND COUPON RATEc102. A Treasury bond is quoted at a price of 101:00 with a current yield of 5.94 percent.What is the coupon rate?a. 5.88 percentb. 5.94 percentc. 6.00 percentd. 6.06 percente. 6.88 percentCORPORATE QUOTE AND CURRENT YIELDe 103. A corporate bond is quoted at a price of 98.625 with a 7.875 coupon. The bondpays interest semiannually. What is the current yield on one of these bonds?a.7.50 percentb.7.76 percentc.7.88 percentd.7.97 percente.7.98 percentTREASURY QUOTE AND CURRENT YIELDa 104. A Treasury bond is quoted at a price of 103:23 with a 4.625 coupon. The bond paysinterest semiannually. What is the current yield on one of these bonds?a. 4.46 percentb. 4.54 percentc. 4.63 percentd. 4.68 percente. 4.74 percentBID-ASK SPREADc 105. A Treasury bond is quoted as 101:18 asked and 101:16 bid. What is the bid-askspread in dollars on a $1,000 face value bond?a. $.02b. $.20c. $.625d. $2.00e. $6.25EFFECTIVE ANNUAL RATES AND INTEREST PAYMENTSa 106. The semiannual, ten-year bonds of Adep, Inc. are selling at par and have aneffective annual yield of 4.295 percent. What is the amount of each interestpayment on a $1,000 Adep bond?a. $21.25b. $21.48c. $21.50d. $42.50e. $42.95FISHER EFFECTc 107. A bond that pays interest annually yields a 7.25 percent rate of return. The inflationrate for the same period is 3.5 percent. What is the real rate of return on this bond?a. 3.50 percentb. 3.57 percentc. 3.62 percentd. 3.72 percente. 3.75 percentFISHER EFFECTb 108. The bonds of Frank’s Welding, Inc. pay an 8 percent coupon, have a 7.98 percentyield to maturity and have a face value of $1,000. The current rate of inflation is 2.5percent. What is the real rate of return on these bonds?a. 5.32 percentb. 5.35 percentc. 5.37 percentd. 5.42 percente. 5.48 percentFISHER EFFECTd 109. The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 3.6percent. The current rate of inflation is 2.5 percent. What is the nominal rate ofreturn on these bonds?a. 6.10 percentb. 6.13 percentc. 6.16 percentd. 6.19 percente. 6.22 percentFISHER EFFECTa 110. The nominal rate of return on the bonds of Stu’s Boats is 8.75 percent. The real rateof return is 3.4 percent. What is the rate of inflation?a. 5.17 percentb. 5.28 percentc. 5.35 percentd. 5.43 percente. 5.49 percentZERO COUPON BOND AND IMPLICIT INTERESTc 111. A zero coupon bond with a face value of $1,000 is issued with an initial price of$463.34. The bond matures in 25 years. What is the implicit interest, in dollars, forthe first year of the bond’s life?a. $9.08b. $12.56c. $14.48d. $21.47e. $31.25ZERO COUPON BOND PRICINGc 112. The MerryWeather Firm wants to raise $10 million to expand their business. Toaccomplish this, they plan to sell 30-year, $1,000 face value zero-coupon bonds.The bonds will be priced to yield 6 percent. What is the minimum number of bondsthey must sell to raise the $10 million they need?a. 47,411b. 52,667c. 57,435d. 60,000e. 117,435IV.ESSAYSTREASURY YIELD CURVE113.Draw a graph of a typical Treasury yield curve and discuss why it usually takes that shape.The student should draw a graph similar to the Treasury yield curve found in the text.Factors impacting the shape of the yield curve are the risk free rate, the inflationpremium and the interest rate risk premium.BOND YIELD PREMIUMS114.Explain why some bond investors are subject to liquidity risk, default risk, and/or taxability risk. How do each of these risks affect the yield of a bond?Liquidity problems exist in thinly traded bonds making some bonds difficult to sell at their actual value. Default risk is the likelihood the corporation will default on its bond obligations. Taxability risk reflects the fact that some bonds are taxed disadvantageously compared to others. If any of these risks exist, investors will require compensation by demanding a high yield.CROSSOVER BONDS115.Explain what a crossover bond is and the risks and expected rewards for investors when they purchase such bonds.A crossover bond is one that is rated investment grade by one rating agency and belowinvestment grade by another. Since the ratings agencies disagree, investors mustessentially take a position as to which one is correct. Given the added likelihood ofdefault, investors should expect to earn a risk premium over investment grade bondswhen purchasing crossovers.INTEREST RATE RISK。
会计英语第七单元课件
2 This flow of data is the same in either a manual or a computerized accounting systems. 3 small companies: may not be necessary 4 work sheet is a useful device for understanding the flow of the accounting data from the unadjusted trial balance to the financial statements.
250
250
50 43400
50 9755 16960 33645
50 26440
Income statement : Cr. $16960 – Dr. $9755 = $7205 (net income) Balance sheet: Dr. $33645 – Cr. $26440 = $7205 $7205 + $26440 = $33645 (net income increases OE)
4000
16340 4275 250 500
1600
985
15Supplies 800 expense 16 Misc. 455 Expense 17 Total 42600 42600 18Insuranc e expense 19 Rent revenue
1240
100
120
20Wages payable 21Depreciation expense 22Accumulated Depreciation Total
Unit Seven Accounting Cycle
财务管理专业英语PPT课件
2020/2/21
山东轻工业学院商学院
9
1）Account、Accounting & Accountant
Accountant：会计师、会计人员 Certified Public Accountant 注册会计师（CPA）
2020/2/21
山东轻工业学院商学院
10
2）Assets、Liabilities & Owner’s Equity
2020/2/21
山东轻工业学院商学院
16
Cash
$50,000 Current liabilities (4)
Accounts receivable 50,000 Long-term debt
(5)
Inventory
(1)
Shareholders’ equity (6)
Plant and equipment
10% Total assets turnover = 2 times Sales = $2 million Debt ratio = 50%
9. Capital Structure 资本结构
10. Dividend Policy 股利政策
11. Working Capital Management 营运资本管理
2020/2/21
山东轻工业学院商学院
5
一、Contents—内容
12. International Financial Management 国际财务管理
会计科目；账户
2020/2/21
山东轻工业学院商学院
8
1）Account、Accounting & Accountant
Accounting：会计、会计学 Financial Accounting and Managerial Accounting are two major specialized fields in Accounting. 财务会计和管理会计是会 计的两个主要的专门领域。 Accounting elements 会计要素
高教社2023张玉英财务管理(第七版)教学课件unit7
丁
置存货币资金的原因及成本
最佳货币资金持有量的确定
货币资金的日常管理
企业在某一段时期内需用的货币资金已事先筹措得到，
并以短期有价证券的形式存放在证券公司内
存货分析模式
的假设
企业对货币资金的需求是均匀、稳定、可知的，可通
过分批抛售有价证券取得
短期有价证券利率稳定、可知
每次将有价证券变现的交易成本可知
商业信用
短期借款
短期融资券
放弃现金折扣的机会成本
现金折扣率×
=
（−现金折扣率）×（信用期−折扣期）
商业信用
短期借款
买方
企业
选择
何种
信用
的决
策
短期融资券
商业信用
短期借款
短期融资券
商业信用
短期借款
短期融资券
商业信用
短期借款
短期融资券
商业信用
短期借款
筹资方式
短期融资券
特点
商业信用
短期借款
存货与存货成本
存货的控制方法
存货与存货成本
存货的控制方法
TC＝K×A+P× +C1×
存货与存货成本
存货的控制方法
存货与存货成本
存货的控制方法
存货与存货成本
存货的控制方法
存货与存货成本
存货的控制方法
存货与存货成本
存货的控制方法
存货与存货成本
存货的控制方法
存货与存货成本
存货的控制方法
置存货币资金的原因及成本
最佳货币资金持有量的确定
存货模式下的相关成本
概念
货币资金的日常管理
二者关系
《财政金融英语综合教程》Unit 7
到目前为止；迄今为止 需要做 目标市场 以……为目标；计划 想出
14
Useful sentences
1. I’ve come again to renew our sole agency agreement for another 2 years. 这次我来是想把我们之间的独家代理协议延长两年。
2. We shall be pleased to talk the matter over with you. 我们很高兴和你们详细讨论这件事情。
plilfaeciensaulraarngceeorder
大量订货
13
Useful words and phrases
sinosfuarrance [ɪn‘ʃʊər(ə)ns] inneseudretod [ɪn'ʃʊəd] target market apiomlicayt [‘pɒləsɪ] cpormopeeurtpywith [‘prɒpətɪ]
n. 产品 vt.& vi. 考虑 n. 提供 vi. 出现，显现 n. 质量，品质
9
Useful words and phrases
sinuspuprlaienrce [ɪn[‘sʃəʊ'əprl(aəɪ)ən(sr])] idnisucoruednt [ɪn'ʃʊ[ə'ddɪ]skaʊnt] maximum ['mæksɪməm] proelipcayration[‘pɒlə[ˌspɪ]repə'reɪʃn] cparmoppearitgyn [‘p[rkɒæpmət'ɪp] eɪn] proemceieudm [‘pr[prə'siːd]
adv. 确切地；一定地 n. 预算；预算费 vt. 决定；解决 n. 基础；根据 n. 简报，简要情况
财务管理专业英语u
13.Week form 弱式 semi-strong 半强式 strong form 强式 Week form——assets prices reflect all historical price information. Semi-strong ——assets prices reflect all historical price information and all publicly available information. Strong form——assets prices reflect all historical price information, all publicly available information, and all private information ( including information only known to insiders, such as company directors).
Words study
3.Expected return 期望收益 Expected return refers to the expected change in the value of an asset over a given (future) time period. Since we cannot know the future, we have to make a guess as to what to “expect”, based on what has happened to returns in the past. 4.Radom variable 随机变量 5.Probability 概率 The uncertainty of future outcomes is usually expressed in terms of probability and plotted in a probability distribution which can be expressed as an equation called the probability distribution function.
国际财务管理Eun7e Ch 007 PPT
Performance Bond Money
• Each day’s losses are subtracted from theห้องสมุดไป่ตู้investor’s account.
that it specifies that a certain currency will be exchanged for another at a specified time in the future at prices specified today.
• A futures contract is different from a forward
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved. 7-2
Futures Contracts: Preliminaries
• A futures contract is like a forward contract in
Futures and Options on Foreign Exchange
Chapter 7
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.
Chapter Outline
• Futures Contracts: Preliminaries • Currency Futures Markets • Basic Currency Futures Relationships • Options Contracts: Preliminaries • Currency Options Markets • Currency Futures Options • Basic Option Pricing Relationships at Expiry • American Option Pricing Relationships • European Option Pricing Relationships • Binomial Option Pricing Model • European Option Pricing Model • Empirical Tests of Currency Option Models
《会计专业英语》Chapter 7 Revenues Expenses and Profits
Revenues Expenses and Profits
▪ 7.1 Revenues
▪ 7.2 Expenses
▪ 7.3 Profits
2
7.1 Revenues
7.1.1 Definition
➢ Revenueervices rendered during a given
these transactions.
9
➢ To illustrate, assume that on August 25, 2018, ABC Wine Company’s entries to
record credit for returned goods involved (1) an increase in Sales Returns and
to Sunshine Company for $2 000, offering terms of 2/10, n/30. The sales
revenue is recorded at the full invoice price, as shown below:
Aug.
13
Accounts Receivable
• (2) Companies recognize revenue from service provided, when services have
been performed and are billable.
• (3) Companies recognize revenue from permitting others to use their assets,
at the date of sale.
5
7.1.3 Recording Sales of Merchandise
会计英语课件 Unit 7 Liabilities
the services, So the cash of $20,000 was not the real revenue.
Only when Simple Company performed the services, a new
journal entry would be made in the following:
below:
Dr. Income taxes expense
$1,000
Cr.Income taxes payable
$1,000
Assets =
Liabilities
Accounts payable
$10,000
Assets =
Liabilities
+
Owner’s equity
Rev.
_
Exp.
=
Net Inc.
Cash Flow
10,000 = 10,000 +
_
=
10,000
OA
Read 7.1.2 and answer: 1 When are notes payable issued? 2 Is there a mistake in the entries? How to correct them?
Dr. Unearned revenue
$20,000
Cr. Revenue
$20,000
Assets =
Liabilities
+
Owner’s equity
Rev.
_
Exp.
= Net Inc.
Cash Flow
=
(20,000)
+
20,000 20,00 _
新编会计英语UNIT 7
Section V
Back
Section I Section II
U7 Accounting Cycle
Sentences
sequence n. 顺序; [数] 数列，序列; 连续; 片断插曲;
vt. 使按顺序排列，安排顺序; [生化] 确定…的顺序，确定…的化学结构序列; e.g.The chronological sequence gives the book an element of structure.
拉里断定自己别无选择，只能当保罗的话是真的。
financial adj. 金融的; 财务的; 财政的; 有钱的
e.g. The company is in financial difficulties.
back
公司目前财政困难。
Section I Section II Section III Section IV Section V
U7 Accounting Cycle
Sentences
indicate vt. 表明，标示，指示; 象征，暗示，预示; [医] 显示需要做…的治疗
e.g. A survey of retired people has indicated that most are independent and enjoying life. 对退休人员的调查表明，大部分人都自食其力，享受生活。
时间顺序让这本书有了一定的结构。
Section III Section IV
procedure n. 程序，手续; 工序，过程，步骤; 诉讼程序，（议会的）议事程
序; 〈罕〉进行;
e.g. A biopsy is usually a minor surgical procedure. 活组织检查通常是一个很小的外科手术。
财务管理 HAPTER 7
CHAPTER 7Interest Rates and Bond Valuation II. CONCEPTSBOND FEATURESd 36. A bond with a 7 percent coupon that pays interest semi-annually and is priced at parwill have a market price of _____ and interest payments in the amount of _____each.a. $1,007; $70b. $1,070; $35c. $1,070; $70d. $1,000; $35e. $1,000; $70BOND PRICES AND YIELDSe 37. All else constant, a bond will sell at _____ when the yield to maturity is _____ thecoupon rate.a. a premium; higher thanb. a premium; equal toc. at par; higher thand. at par; less thane. a discount; higher thanBOND PRICES AND YIELDSd 38. All else constant, a coupon bond that is selling at a premium, must have:a. a coupon rate that is equal to the yield to maturity.b. a market price that is less than par value.c. semi-annual interest payments.d. a yield to maturity that is less than the coupon rate.e. a coupon rate that is less than the yield to maturity.BOND PRICESc 39. The market price of a bond is equal to the present value of the:a. face value minus the present value of the annuity payments.b. annuity payments plus the future value of the face amount.c. face value plus the present value of the annuity payments.d. face value plus the future value of the annuity payments.e. annuity payments minus the face value of the bond.BOND PRICESa 40. As the yield to maturity increases, the:a. amount the investor is willing to pay to buy a bond decreases.b. longer the time to maturity.c. lower the coupon rate desired by that investor.d. higher the price the investor offers to buy a bond.e. lower the rate of return desired by the investor.SEMIANNNUAL BONDSe 41. American Fortunes is preparing a bond offering with an 8 percent coupon rate. Thebonds will be repaid in 10 years. The company plans to issue the bonds at par valueand pay interest semiannually. Given this, which of the following statements arecorrect?I. The initial selling price of each bond will be $1,000.II. A fter the bonds have been outstanding for 1 year, you should use 9 as the number of compounding periods when calculating the market value of the bond.III. Each interest payment per bond will be $40.IV. The yield to maturity when the bonds are first issued is 8 percent.a. I and II onlyb. II and III onlyc. II, III, and IV onlyd. I, II, and III onlye. I, III, and IV onlySEMIANNUAL BONDS AND EFFECTIVE ANNUAL RATEd 42. The newly issued bonds of the Wynslow Corp. offer a 6 percent coupon withsemiannual interest payments. The bonds are currently priced at par value. Theeffective annual rate provided by these bonds must be:a. equal to 3 percent.b. greater than 3 percent but less than 4 percent.c. equal to 6 percent.d. greater than 6 percent but less than 7 percent.e. equal to 12 percent.INTEREST RATE RISKd 43. Which one of the following statements is correct concerning interest rate risk as itrelates to bonds, all else equal?a. The shorter the time to maturity, the greater the interest rate risk.b. The higher the coupon rate, the greater the interest rate risk.c. For a bond selling at par value, there is no interest rate risk.d. The greater the number of semiannual interest payments, the greater the interestrate risk.e. The lower the amount of each interest payment, the lower the interest rate risk.INTEREST RATE RISKe 44. Which one of the following bonds has the greatest interest rate risk?a. 5-year; 9 percent couponb. 5-year; 7 percent couponc. 7-year; 7 percent coupond. 9-year; 9 percent coupone. 9-year; 7 percent couponINTEREST RATE RISKb 45. Interest rate risk _____ as the time to maturity increases.a. increases at an increasing rateb. increases at a decreasing ratec. increases at a constant rated. decreases at an increasing ratee. decreases at a decreasing rateINTEREST RATE RISKc 46. You own a bond that has a 7 percent coupon and matures in 12 years. You purchasedthis bond at par value when it was originally issued. If the current market rate for thistype and quality of bond is 7.5 percent, then you would expect:a. the bond issuer to increase the amount of each interest payment on these bonds.b. the yield to maturity to remain constant due to the fixed coupon rate.c. to realize a capital loss if you sold the bond at the market price today.d. today’s market price to exceed the face value of the bond.e. the current yield today to be less than 7 percent.INTEREST RATE RISKc 47. You expect interest rates to decline and wish to capitalize on the anticipated changes inbond prices. To realize your maximum gain, all else constant, you should purchase_____ bonds.a. short-term; low couponb. short-term; high couponc. long-term; zero coupond. long-term; low coupone. long-term; high couponYIELD TO MATURITY AND CURRENT YIELDe 48. All else constant, as the market price of a bond increases the current yield _____ andthe yield to maturity _____a. increases; increases.b. increases; decreases.c. remains constant; increases.d. decreases; increases.e. decreases; decreases.BOND FEATURESd 49. Which of the following statements concerning bond features is (are) correct?I. Bondholders generally have voting power in a corporation.II. Bond interest is tax-deductible as a business expense.III. The repayment of the bond principle is tax-deductible.IV. Failure to pay either the interest payments or the bond principle as agreed can cause afirm to go into bankruptcy.a. II onlyb. I and II onlyc. III and IV onlyd. II and IV onlye. II, III, and IV onlyBOND INDENTUREd 50. Which of the following items are generally included in a bond indenture?I. call provisionsII. security descriptionIII. current yieldIV. protective covenantsa. I and II onlyb. II and IV onlyc. II, III, and IV onlyd. I, II, and IV onlye. I, II, III, and IVBOND CLASSIFICATIONSe 51. Which one of the following statements is correct concerning bond classifications?a. A debenture is a long-term bond secured by the fixed assets of a firm.b. A mortgage security is a bond issued solely by a home builder.c. A note is a bond which has an original maturity date longer than 10 years.d. A subordinated bond receives preferential treatment over all other bonds in abankruptcy.e. A callable bond can be repurchased by the issuer prior to the initial maturity date.CALLABLE BONDSb 52. Callable bonds generally:a. allow the bondholder to decide when the bond is to be called.b. are associated with sinking funds.c. permit the issuer to repurchase the bonds at a discount.d. are called within the first couple of years after issuance.e. are required to have a deferred call provision if they have a “make-whole” callprovision.PROTECTIVE COVENANTSc 53. Which of the following is a (are) positive covenant(s) that might be found in a bondindenture?I. The company shall maintain a current ratio of 1.5 or better.II. The company must limit the amount of dividends it pays according to the stated formula.III. The company cannot lease any major assets without approval by the lender. IV. The company must maintain the loan collateral in good working order.a. I onlyb. I and II onlyc. I and IV onlyd. II and IV onlye. I, II, and IV onlyPROTECTIVE COVENANTSe 54. Protective covenants:a. are primarily designed to protect the issuing corporation from unreasonable demandsof bondholders.b. are consistent for all bonds issued by a corporation within the United States.c. are limited to stating actions which a firm must take.d. only apply to bonds that have a deferred call provision.e. are primarily designed to protect bondholders from future actions of the bond issuer.BOND RATINGSb 55. Which one of the following statements concerning bond ratings is correct?a. Standard and Poor’s and Value Lin e are the primary bond rating agencies.b. Bond ratings are solely an assessment of the creditworthiness of the bond issuer.c. Investment grade bonds include only those bonds receiving one of the highest threebond ratings.d. Bond ratings evaluate the expected price volatility of a bond issue.e. All bonds receive the same rating classification from all rating agencies.BOND RATINGSd 56. A “fallen angel” is a bond that:a. lowered its annual interest payment.b. has moved from being a long-term obligation to being a short-term obligation.c. has moved from having a yield to maturity in excess of the coupon rate to having ayield to maturity that is less than the coupon rate.d. has moved from being an investment-grade bond to being a junk bond.e. is rated as Ba by one rating agency and rated as BB by another rating agency.TREASURY BONDSa 57.Bonds issued by the ernment:I. are considered to be free of default risk.II. are considered to be free of interest rate risk.III. provide totally tax-free income.IV. pay interest that is exempt from federal income taxes.a. I onlyb. I and III onlyc. I and IV onlyd. II and III onlye. II and IV onlyTREASURY BONDSd 58. Treasury bonds are:a. those bonds issued by any governmental agency in the U.S.b. issued only on the first day of each fiscal year by the U.S. Department of Treasury.c. preferred by high-income individuals because they offer the best tax benefits.d. generally issued as coupon bonds.e. totally risk-free.MUNICIPAL BONDSa 59. Municipal bonds:a. offer income tax advantages to individuals.b. generally pay a higher rate of return than corporate bonds.c. are those bonds issued only by local municipalities, such as a city or a borough.d. are rarely callable.e. pay interest that is always exempt from both federal and state income taxes.TAXABLE VERSUS MUNICIPAL BONDSd 60. The break-even tax rate between a taxable corporate bond yielding 7 percent and acomparable nontaxable municipal bond yielding 5 percent can be expressed as:a. .07 ÷ (1 - t*) = .05.b. .05 ÷ (1 - t*) = .07.c. .07 + (1 - t*) = .05.d. .07 ⨯ (1 - t*) = .05.e. .05 ⨯ (1 - t*) = .07.ZERO COUPON BONDSe 61. A zero coupon bond:a. is sold at a largepremium.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.FLOATING-RATE BONDSd 63. The collar of a floating-rate bond refers to the minimum and maximum:a. call periods.b. maturity dates.c. market prices.d. coupon rates.e. yields to maturity.FLOATING-RATE BONDSd 64. Which of the following are common characteristics of floating-rate bonds?I. adjustable coupon ratesII. adjustable maturity datesIII. put provisionIV. coupon capa. I and II onlyb. II and III onlyc. I, II, and IV onlyd. I, III, and IV onlye. I, II, III, and IVFLOATING RATE BONDSc 65. A corporation is more prone to issue floating-rate bonds when they expect futureinterest rates to _____ over the life of the bond.a. remain constantb. increase briefly and then decline slightlyc. continually declined. decline briefly and then increase significantlye. continually increaseCATASTROPHE BONDSe 66. “Cat” bonds are primarily designed to help:a. cities recover from economic recessions.b. corporations recover from overseas competition.c. the federal government cope with huge deficits.d. animal food producers raise capital to compete internationally.e. insurance companies recover from natural disasters.TYPES OF BONDS AND INVESTOR PREFERENCESc 67. Investors generally tend to buy:a. Treasury bonds for their high yields.b. municipal bonds for their high yields.c. convertible bonds for their potential price appreciation.d. corporate bonds for their liquidity.e. Treasury bonds for their preferential tax treatment.TYPES OF BONDSb 68. A convertible bond is a bond that can be:a. exchanged for cash at prescribed points in time.b. exchanged for a stated number of shares of common stock of the bond issuer.c. modified from a fixed coupon bond into a floating coupon bond at prescribed points intime.d. submitted to the issuer for redemption at the discretion of the bondholder.e. submitted for payment any time the economy converts into a recessionary period.PUT PROVISIONc 69. A put provision in a bond indenture allows:a. a bond issuer to recall the bond after a specified period of time at a price that exceedsthe face amount.b. a bondholder to force the issuer to increase the coupon rate if inflation increases bymore than a specified amount.c. the bondholder to force the issuer to buy back the bond at a specified price prior tomaturity.d. the issuer to convert a coupon bond into a zero coupon bond at their discretion.e. t he issuer to suspend interest payments for any year in which the interest expenseexceeds the net income of the firm.BOND TRADINGb 70. If you want to sell a bond issued by a smaller corporation, you:a. can always do so quite easily by trading it on the New York Stock Exchange.b. may encounter difficulties in executing the trade.c. can usually do so quite efficiently due to the high liquidity of the bond market.d. can do so quite quickly due to the high volume of trading in the bond markets.e. will most likely trade in an auction market, such as the New York Stock Exchange.BASIS POINTa 71. One basis point is equal to:a. .01 percent.b. .10 percent.c. 1.0 percent.d. 10 percent.e. 100 percent.CORPORATE BOND QUOTEc 72. The “EST SPREAD” shown in The Wall Street Journal listing of corporate bondsrepresents the estimated:a. yield to maturity.b. difference between the current yield and the yield to maturity.c. difference between the bond’s yield and the yield of a particular Treasury issue.d. range of yields to maturity provided by the bond over its life to date.e. difference between the yield to call and the yield to maturity.TREASURY BOND QUOTEe 73. A Treasury bond that is quoted at 100:07 is selling:a. at 7 percent over the face amount.b. at a 7 percent discount.c. at a 7 percent premium.d. at par and pays a 7 percent coupon.e. for about $2.19 over face value.TREASURY BONDSb 74. As of 2004, the longest maturity Treasury security currently being issued is the:a. 5-year note.b. 10-year note.c. 15-year bond.d. 20-year bond.e. 30-year bond.BID VERSUS ASKED PRICESa 75. A Treasury bond has an asked quote of 100:12 and a bid quote of 100:11. One bond:a. can be purchased at a price of $1,003.75.b. can be sold at a price of $1,003.75.c. has a spread of 10 basis points.d. has a yield to maturity that lies between 11 and 12 percent.e. can be sold to a dealer at a price of $1,001.10.CLEAN VERSUS DIRTY PRICESc 76. Today, August 13, you want to buy a bond with a quoted price of 101.5. The bondpays interest on February 1 and August 1. The price you will pay to purchase thisbond is equal to the:a. clean price.b. muddy price.c. dirty price.d. par value price.e. bid price.REAL RATE OF RETURNd 77. The increase you realize in buying power as a result of owning a bond is referred to asthe _____ rate of return.a. inflatedb. realizedc. nominald. reale. risk-freeFISHER EFFECTe 78. The Fisher formula is expressed as:a. 1 + r = (1 + R) ÷ (1 + h).b. 1 + r = (1 + R) ⨯ (1 + h).c. 1 + h = (1 + r) ÷ (1 + R).d. 1 + R = (1 + r) ÷ (1 + h).e. 1 + R = (1 + r) (1 + h).FISHER EFFECTd 79. The Fisher Effect primarily emphasizes the effects of _____ risk on an investor’s rateof return.a. defaultb. marketc. interest rated. inflatione. maturityTERM STRUCTURE OF INTEREST RATESa 80. The term structure of interest rates reflects the:a. pure time value of money for various lengths of time.b. actual risk premium being paid for corporate bonds of varying maturities.c. pure inflation adjustment applied to bonds of various maturities.d. interest rate risk premium applicable to bonds of varying maturities.e. nominal interest rates applicable to coupon bonds of varying maturities.TERM STRUCTURE OF INTEREST RATESd 81. Which of the following statements are correct concerning the term structure of interestrates?I. The outlook for future inflation influences the shape of the term structure of interestrates.II. The term structure of interest rates includes only the real rate of return and the inflation premium.III. The interest rate risk premium is included in the term structure of interest rates.IV. The term structure of interest rates can be downsloping.a. I and II onlyb. II and IV onlyc. III and IV onlyd. I, III, and IV onlye. I, II, and IV onlyCORPORATE VERSUS TREASURY BONDSc 82. Two of the primary differences between a corporate bond and a Treasury bond withidenticalmaturity dates are related to:a. interest rate risk and time value of money.b. time value of money and inflation.c. taxes and potential default.d. taxes and inflation.e. inflation and interest rate risk.III. PROBLEMSYIELD TO MATURITYc 83. The bonds issued by Jensen & Son bear a 6 percent coupon, payable semiannually.The bond matures in 8 years and has a $1,000 face value. Currently, the bond sellsat par. What is the yield to maturity?a. 5.87 percentb. 5.97 percentc. 6.00 percentd. 6.09 percente. 6.17 percentYIELD TO MATURITYa 84. A General Co. bond has an 8 percent coupon and pays interest annually. The facevalue is $1,000 and the current market price is $1,020.50. The bond matures in 20years. What is the yield to maturity?a. 7.79 percentb. 7.82 percentc. 8.00 percentd. 8.04 percente. 8.12 percentYIELD TO MATURITYd 85. Winston Enterprises has a 15-year bond issue outstanding that pays a 9 percentcoupon. The bond is currently priced at $894.60 and has a par value of $1,000.Interest is paid semiannually. What is the yield to maturity?a. 8.67 percentb. 10.13 percentc. 10.16 percentd. 10.40 percente. 10.45 percentPRICE OF COUPON BONDa 86. Wine and Roses, Inc. offers a 7 percent coupon bond with semiannual paymentsand a yield to maturity of 7.73 percent. The bonds mature in 9 years. What is themarket price of a $1,000 face value bond?a. $953.28b. $953.88c. $1,108.16d. $1,401.26e. $1,401.86PRICE OF COUPON BONDc 87. Party Time, Inc. has a 6 percent coupon bond that matures in 11 years. The bondpays interest semiannually. What is the market price of a $1,000 face value bond ifthe yield to maturity is 12.9 percent?a. $434.59b. $580.86c. $600.34d. $605.92e. $947.87PRICE OF COUPON BONDd 88. Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the maturity date is 9 years. What is the market price of a$1,000 face value bond?a. $742.66b. $868.67c. $869.67d. $1,078.73e. $1,079.59TIME TO MATURITY OF COUPON BONDa 89. The Lo Sun Corporation offers a 6 percent bond with a current market price of$875.05. The yield to maturity is 7.34 percent. The face value is $1,000. Interest ispaid semiannually. How many years is it until this bond matures?a. 16 yearsb. 18 yearsc. 24 yearsd. 30 yearse. 36 yearsTIME TO MATURITY OF COUPON BONDb 90. High Noon Sun, Inc. has a 5 percent, semiannual coupon bond with a current marketprice of $988.52. The bond has a par value of $1,000 and a yield to maturity of 5.29percent. How many years is it until this bond matures?a. 4.0 yearsb. 4.5 yearsc. 6.5 yearsd. 8.0 yearse. 9.0 yearsPRICE OF ZERO COUPONa 91. Your firm offers a 10-year, zero coupon bond. The yield to maturity is 8.8 percent.What is the current market price of a $1,000 face value bond?a. $430.24b. $473.26c. $835.56d. $919.12e. $1,088.00PRICE OF ZERO COUPON BONDb 92. Ted’s Co.offers a zero coupon bond with an 11.3 percent yield to maturity. The bondmaturesin 16 years. What is the current price of a $1,000 face value bond?a. $178.78b. $180.33c. $188.36d. $190.09e. $192.18TIME TO MATURITY OF ZERO COUPON BONDc 93. The zero coupon bonds of Markco, Inc. have a market price of $394.47, a facevalue of $1,000, and a yield to maturity of 6.87 percent. How many years is it untilthis bond matures?a. 7 yearsb. 10 yearsc. 14 yearsd. 18 yearse. 21 yearsINTEREST RATE RISKb 94. A 12-year, 5 percent coupon bond pays interest annually. The bond has a face value of$1,000. What is the change in the price of this bond if the market yield rises to 6percent from the current yield of 4.5 percent?a. 11.11 percent decreaseb. 12.38 percent decreasec. 12.38 percent increased. 14.13 percent decreasee. 14.13 percent increaseINTEREST RATE RISKd 95. Jackson Central has a 6-year, 8 percent annual coupon bond with a $1,000 parvalue. Earls Enterprises has a 12-year, 8 percent annual coupon bond with a $1,000par value. Both bonds currently have a yield to maturity of 6 percent. Which of thefollowing statements are correct if the market yield increases to 7 percent?a. Both bonds would decrease in value by 4.61 percent.b. The Earls bond will increase in value by $88.25.c. The Jackson bond will increase in value by 4.61 percent.d. The Earls bond will decrease in value by 7.56 percent.e. The Earls bond will decrease in value by $50.68.CURRENT YIELDa 96. D’Angelo’s bonds have a face value of $1,000 and a current market price of $1010.The bonds have a 7 percent coupon rate. What is the current yield on these bonds?a. 6.93 percentb. 6.97 percentc. 7.00 percentd. 7.03 percente. 7.07 percentCURRENT YIELDd 97. Mitzi’s, II. Bonds offer a 6 percent coupon at a current market price of $989. Thebonds have a face value of $1,000 and a call price of $1,020. What is the currentyield on these bonds?a. 5.88 percentb. 5.97 percentc. 6.00 percentd. 6.07 percente. 6.12 percentCALL PREMIUMc 98. The bonds offered by Leo’s Pumps are callable in 3 years at a quoted price of 101.What is the amount of the call premium on a $1,000 par value bond?a. $3.33b. $5.00c. $10.00d. $13.33e. $100.00CORPORATE BOND QUOTEc 99. A corporate bond is quoted at a current price of 102.767. What is the market price of abond with a $1,000 face value?a. $1,000.28b. $1,002.77c. $1,027.67d. $1,102.77e. $1,276.70ZERO COUPON BOND QUOTEc 100. A $1,000 face value zero coupon bond is quoted at a price of 43.30. What is theamount you would pay to purchase this bond?a. $43.30b. $430.30c. $433.00d. $956.70e. $1,043.30TREASURY BOND QUOTEb 101. A Treasury bond is quoted at a price of 106:13. What is the market price of thisbond if the face value is $1,000?a. $106.13b. $1,064.06c. $1,106.13d. $1,106.41e. $1,106.64TREASURY BOND QUOTE AND COUPON RATEc 102. A Treasury bond is quoted at a price of 101:00 with a current yield of 5.94 percent.What is the coupon rate?a. 5.88 percentb. 5.94 percentc. 6.00 percentd. 6.06 percente. 6.88 percentCORPORATE QUOTE AND CURRENT YIELDe 103. A corporate bond is quoted at a price of 98.625 with a 7.875 coupon. The bondpays interest semiannually. What is the current yield on one of these bonds?a. 7.50 percentb. 7.76 percentc. 7.88 percentd. 7.97 percente. 7.98 percentTREASURY QUOTE AND CURRENT YIELDa 104.A Treasury bond is quoted at a price of 103:23 with a 4.625 coupon. The bond paysinterest semiannually. What is the current yield on one of these bonds?a. 4.46 percentb. 4.54 percentc. 4.63 percentd. 4.68 percente. 4.74 percentBID-ASK SPREADc 105. A Treasury bond is quoted as 101:18 asked and 101:16 bid. What is the bid-askspread in dollars on a $1,000 face value bond?a. $.02b. $.20c. $.625d. $2.00e. $6.25EFFECTIVE ANNUAL RATES AND INTEREST PAYMENTSa 106. The semiannual, ten-year bonds of Adep, Inc. are selling at par and have aneffective annual yield of 4.295 percent. What is the amount of each interestpayment on a $1,000 Adep bond?a. $21.25b. $21.48c. $21.50d. $42.50e. $42.95FISHER EFFECTc 107. A bond that pays interest annually yields a 7.25 percent rate of return. The inflationrate for the same period is 3.5 percent. What is the real rate of return on this bond?a. 3.50 percentb. 3.57 percentc. 3.62 percentd. 3.72 percente. 3.75 percentFISHER EFFECTb 108. The bonds of Frank’s Welding, Inc. pay an 8 percent coupon, have a 7.98 percentyield to maturity and have a face value of $1,000. The current rate of inflation is 2.5percent. What is the real rate of return on these bonds?a. 5.32 percentb. 5.35 percentc. 5.37 percentd. 5.42 percente. 5.48 percentFISHER EFFECTd 109. The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 3.6percent. The current rate of inflation is 2.5 percent. What is the nominal rate ofreturn on these bonds?a. 6.10 percentb. 6.13 percentc. 6.16 percentd. 6.19 percente. 6.22 percentFISHER EFFECTa 110. The nominal rate of return on the bonds of Stu’s Boats is 8.75 percent. The real rateof return is 3.4 percent. What is the rate of inflation?a. 5.17 percentb. 5.28 percentc. 5.35 percentd. 5.43 percente. 5.49 percentZERO COUPON BOND AND IMPLICIT INTERESTc 111. A zero coupon bond with a face value of $1,000 is issued with an initial price of$463.34. The bond matures in 25 years. What is the implicit interest, in dollars, forthe first year of the bond’s life?a. $9.08b. $12.56c. $14.48d. $21.47e. $31.25ZERO COUPON BOND PRICINGc 112. The MerryWeather Firm wants to raise $10 million to expand their business. Toaccomplish this, they plan to sell 30-year, $1,000 face value zero-coupon bonds.The bonds will be priced to yield 6 percent. What is the minimum number of bondsthey must sell to raise the $10 million they need?a. 47,411b. 52,667c. 57,435d. 60,000e. 117,435IV. ESSAYSTREASURY YIELD CURVE113. Draw a graph of a typical Treasury yield curve and discuss why it usually takes that shape.The student should draw a graph similar to the Treasury yield curve found in the text.Factors impacting the shape of the yield curve are the risk free rate, the inflationpremium and the interest rate risk premium.BOND YIELD PREMIUMS114. Explain why some bond investors are subject to liquidity risk, default risk, and/or taxability risk. How do each of these risks affect the yield of a bond?Liquidity problems exist in thinly traded bonds making some bonds difficult to sell at their actual value. Default risk is the likelihood the corporation will default on its bond obligations. Taxability risk reflects the fact that some bonds are taxed disadvantageously compared to others. If any of these risks exist, investors will require compensation by demanding a high yield.CROSSOVER BONDS115. Explain what a crossover bond is and the risks and expected rewards for investors when they purchase such bonds.A crossover bond is one that is rated investment grade by one rating agency and belowinvestment grade by another. Since the ratings agencies disagree, investors mustessentially take a position as to which one is correct. Given the added likelihood ofdefault, investors should expect to earn a risk premium over investment grade bondswhen purchasing crossovers.INTEREST RATE RISK。
财务管理基础 第七章 课后题答案 斯坦利.B.布洛克
ChProblems1. City Farm Insurance has collection centers across the country to speed up collections. Thecompany also makes its disbursements from remote disbursement centers. The collection time has been reduced by two days and disbursement time increased by one day because of these policies. Excess funds are being invested in short-term instruments yielding12 percent per annum.a. If City Farm has $5 million per day in collections and $3 million per day indisbursements, how many dollars has the cash management system freed up?b. How much can City Farm earn in dollars per year on short-term investments madepossible by the freed-up cash?7-1. Solution:City Farm Insurancea. $5,000,000 daily collections× 2.0 days speed up = $10,000,000 additional collections$3,000,000 daily disbursements× 1.0 days slow down = $ 3,000,000 delayed disbursements$13,000,000 freed-up fundsb. $13,000,000 freed-up funds12% interest rate$1,560,000 interest on freed-up cash2. Nicholas Birdcage Company of Hollywood ships cages throughout the country. Nicholashas determined that through the establishment of local collection centers around thecountry, he can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to him that he can defer hispayments on his accounts by one-half day without affecting suppliers. The bank has aremote disbursement center in Florida.a. If the company has $4 million per day in collections and $2 million per day indisbursements, how many dollars will the cash management system free up?b. If the company can earn 9 percent per annum on freed-up funds, how much will theincome be?c. If the annual cost of the new system is $700,000, should it be implemented?7-2. Solution:Nicholas Birdcage Company of Hollywooda. $4,000,000 daily collections× 1.5 days speed up = $6,000,000 additional collections$2,000,000 daily disbursements× .5 days slow down = $1,000,000 delayed disbursements$7,000,000 freed-up fundsb. $7,000,000 freed-up funds9% interest rate$630,000 interest on freed-up cashc. No. The annual income of $630,000 is $70,000 less than theannual cost of $700,000 for the new system.3. Megahurtz International Car Rentals has rent-a-car outlets throughout the world. It alsokeeps funds for transactions purposes in many foreign countries. Assume in 2003, it held 100,000 reals in Brazil worth 35,000 dollars. It drew 12 percent interest, but the Brazilian real declined 20 percent against the dollar.a. What is the value of its holdings, based on U.S. dollars, at year-end (Hint: multiply$35,000 times 1.12 and then multiply the resulting value by 80 percent.)b. What is the value of its holdings, based on U.S. dollars, at year-end if it drew9 percent interest and the real went up by 10 percent against the dollar?7-3. Solution:Megahurtz International Car Rentala. $35,000 × 1.12 = $39,200$39,200 × 80% = $31,360 dollar value of real holdingsb. $35,000 × 1.09 = $38,150$38,150 × 110% = $41,965 dollar value of real holdings4. Thompson Wood Products has credit sales of $2,160,000 and accounts receivableof $288,000. Compute the value of the average collection period.7-4. Solution:Thompson Wood ProductsAccounts Receivable Average collection period Average daily credit sales$288,000$2,160,000/360$288,00048days $6,000====5. Lone Star Petroleum Co. has annual credit sales of $2,880,000 and accounts receivableof $272,000. Compute the value of the average collection period.7-5. Solution:Lone Star Petroleum Co.Accounts Receivable Average collection period Average daily credit sales$272,000$2,288,000/360$272,0008,00034days ====6. Knight Roundtable Co. has annual credit sales of $1,080,000 and an average collectionperiod of 32 days in 2008. Assume a 360-day year. What is the company ’s averageaccounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period.7-6. Solution:Knight Roundtable Co.$1,080,000annual credit sales $3,000credit sales a day 360days per year=$3,000 average 32 average $96,000 average accounts daily credit sales collection period receivable balance=⨯7.Darla ’s Cosmetics has annual credit sales of $1,440,000 and an average collection period of 45 days in 2008. Assume a 360-day year.What is the company ’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. 7-7. Solution:Darla ’s Cosmetic Company$1,440,000 annual credit sales/360 = $4,000 per day credit sales $4,000 credit sales × 45 average collection period = $180,000average accounts receivable balance8. In Problem 7, if accounts receivable change to $200,000 in the year 2009, while credit salesare $1,800,000, should we assume the firm has a more or a less lenient credit policy? 7-8. Solution:Darla ’s Cosmetics (Continued)To determine if there is a more lenient credit policy, compute the average collection period.Accounts ReceivableAverage collection period Average daily credit sales$200,000$1,800,000/360$200,00040 days $5,000====Since the firm has a shorter average collection period, it appears that the firm does not have a more lenient credit policy.9. Hubbell Electronic Wiring Company has an average collection period of 35 days. Theaccounts receivable balance is $105,000. What is the value of its credit sales?7-9. Solution:Hubbell Electronic Wiring CompanyAccounts receivable Average collection period Average daily credit sales$105,00035 days credit sales 360$105,000Credit sales/36035 daysCredit sales/360$3,000 credit sales per dayCredit sales $3,==⎛⎫ ⎪⎝⎭===000360$1,080,000⨯=10. Marv ’s Women ’s Wear has the following schedule for aging of accounts receivable.Age of Receivables, April 30, 2004(1)(2) (3) (4)Month of SalesAge of Account Amounts Percent of Amount Due April .................................0–30 $ 88,000 ____ March ...............................31–60 44,000 ____ February ...........................61–90 33,000 ____ January .............................91–120 55,000 ____ Total receivables ...........$220,000 100%a . Fill in column (4) for each month.b . If the firm had $960,000 in credit sales over the four-month period, compute the average collection period. Average daily sales should be based on a 120-day period.c . If the firm likes to see its bills collected in 30 days, should it be satisfied with the average collection period?d . Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied? e . What additional information does the aging schedule bring to the company that theaverage collection period may not show?7-10. Solution:Marv’s Women’s WearAge of Receivables, April 30, 2004a.(1)(2)(3)(4)Month of SalesAge ofAccount AmountsPercent ofAmount DueApril 0-30 $ 88,000 40% March 31-60 44,000 20% February 61-90 33,000 15% January 91-120 55,000 25% Total receivables $220,000 100%b.Accounts receivable Average Collection PeriodAverage daily credit sales$220,000$960,000/120$220,000$8,00027.5 days====c. Yes, the average collection of 27.5 days is less than 30 days.d. No. The aging schedule provides additional insight that 60percent of the accounts receivable are over 30 days old.e. It goes beyond showing how many days of credit salesaccounts receivables represent, to indicate the distribution of accounts receivable between various time frames.11. Nowlin Pipe & Steel has projected sales of 72,000 pipes this year, an ordering cost of$6 per order, and carrying costs of $2.40 per pipe.a . What is the economic ordering quantity?b . How many orders will be placed during the year?c . What will the average inventory be?7-11. Solution:Nowlin Pipe and Steel Companya. EOQ 600 units =====b. 72,000 units/600 units = 120 ordersc. EOQ/2 = 600/2 = 300 units (average inventory)12. Howe Corporation is trying to improve its inventory control system and has installed anonline computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of $4 per order, and carrying costs of $1.008 per unit.a . What is the economic ordering quantity?b . How many orders will be placed during the year?c . What will the average inventory be?d . What is the total cost of inventory expected to be?7-12. Solution:Howe Corp.a. EOQ 1,000 units ===b. 126,000 units/1,000 units = 126 orders7-12. (Continued)c. EOQ/2 = 1,000/2 = 500 units (average inventory)d. 126 orders × $4 ordering cost= $ 504 500 units × $1.008 carrying cost per unit = 504 Total costs = $1,00813. (See Problem 12 for basic data.) In the second year, Howe Corporation finds it can reduceordering costs to $1 per order but that carrying costs will stay the same at $1.008 per unit. a . Recompute a, b, c , and d in Problem 12 for the second year.b . Now compare years one and two and explain what happened.7-13. Solution:Howe Corp. (Continued)a. EOQ 500 units =====126,000 units/500 units = 252 ordersEOQ/2 = 500/2 = 250 units (average inventory)252 orders × $1 ordering cost= $252 250 units × $1.008 carrying cost per unit = 252 Total costs = $504b. The number of units ordered declines 50%, while the numberof orders doubles. The average inventory and total costs both decline by one-half. Notice that the total cost did not decline in equal percentage to the decline in ordering costs. This isbecause the change in EOQ and other variables (½) isproportional to the square root of the change in orderingcosts (¼).14. Higgins Athletic Wear has expected sales of 22,500 units a year, carrying costs of $1.50per unit, and an ordering cost of $3 per order.a. What is the economic order quantity?b. What will be the average inventory? The total carrying cost?c. Assume an additional 30 units of inventory will be required as safety stock. What willthe new average inventory be? What will the new total carrying cost be?7-14. Solution:Higgins Athletic Weara. EOQ==300 units===b. EOQ/2 = 300/2 = 150 units (average inventory)150 units × $1.50 carrying cost/unit = $225 total carrying costc.EOQAverage inventory Safety Stock230030150301802=+=+=+= 180 inventory × $1.50 carrying cost per year = $270 total carrying cost15. Dimaggio Sports Equipment, Inc., is considering a switch to level production. Costefficiencies would occur under level production, and aftertax costs would decline by$35,000, but inventory would increase by $400,000. Dimaggio would have to finance the extra inventory at a cost of 10.5 percent.a. Should the company go ahead and switch to level production?b. How low would interest rates need to fall before level production would be feasible? 7-15. Solution:Dimaggio Sports Equipment, Inc.a. Inventory increases by $400,000× interest expense 10.5%Increased costs $ 42,000Less: Savings 35,000Loss ($ 7,000)Don’t switch to level production. Increased ROI is less thanthe interest cost of more inventory.b. If interest rates fall to 8.75% or less, the switch would befeasible.$35,000 Savings8.75%$400,000 increased inventory16. Johnson Electronics is considering extending trade credit to some customers previouslyconsidered poor risks. Sales will increase by $100,000 if credit is extended to these new customers. Of the new accounts receivable generated, 10 percent will prove to beuncollectible. Additional collection costs will be 3 percent of sales, and production and selling costs will be 79 percent of sales. The firm is in the 40 percent tax bracket.a. Compute the incremental income after taxes.b. What will Johnson’s incremental return on sales be if these new credit customers areaccepted?c. If the receivable turnover ratio is 6 to 1, and no other asset buildup is needed to servethe new customers, what will Johnson’s incremental return on new averageinvestment be?7-16. Solution:Johnson Electronicsa. Additional sales .................................................... $100,000Accounts uncollectible (10% of new sales) ......... – 10,000Annual incremental revenue ................................ $ 90,000Collection costs (3% of new sales) ...................... – 3,000Production and selling costs (79% of new sales) .– 79,000Annual income before taxes ................................. $ 8,000Taxes (40%) ......................................................... – 3,200Incremental income after taxes ............................ $ 4,800b.Incremental income Incremental return on salesIncremental sales$4,800/$100,000 4.8%===c. Receivable turnover = Sales/Receivable turnover = 6xReceivables = Sales/Receivable turnover= $100,000/6= $16,666.67Incremental return on new average investment =$4,800/$16,666.67 = 28.80%17. Collins Office Supplies is considering a more liberal credit policy to increase sales, butexpects that 9 percent of the new accounts will be uncollectible. Collection costs are5 percent of new sales, production and selling costs are 78 percent, and accounts receivableturnover is five times. Assume income taxes of 30 percent and an increase in sales of$80,000. No other asset buildup will be required to service the new accounts.a. What is the level of accounts receivable to support this sales expansion?b. What would be Collins’s incremental aftertax return on investment?c. Should Collins liberalize credit if a 15 percent aftertax return on investment isrequired?Assume Collins also needs to increase its level of inventory to support new sales and that inventory turnover is four times.d. What would be the total incremental investment in accounts receivable and inventoryto support a $80,000 increase in sales?e. Given the income determined in part b and the investment determined in part d,should Collins extend more liberal credit terms?7-17. Solution:Collins Office Suppliesa.$80,000 Investment in accounts receivable$16,0005==b. Added sales .......................................................... $ 80,000Accounts uncollectible (9% of new sales) ........... – 7,200 Annual incremental revenue ................................ $ 72,800 Collection costs (5% of new sales) ...................... – 4,000 Production and selling costs (78% of new sales) – 62,400 Annual income before taxes ................................. $ 6,400 Taxes (30%) ......................................................... – 1,920 Incremental income after taxes ............................ $ 4,480Return on incremental investment = $4,480/$16,000 = 28% c. Yes! 28% exceeds the required return of 15%.7-17. (Continued)d.$80,000 Investment in inventory =$20,0004Total incremental investmentInventory $20,000Accounts receivable 16,000Incremental investment $36,000 $4,480/$36,000 = 12.44% return on investmente. No! 12.44% is less than the required return of 15%.18. Curtis Toy Manufacturing Company is evaluating the extension of credit to a new group ofcustomers. Although these customers will provide $240,000 in additional credit sales,12 percent are likely to be uncollectible. The company will also incur $21,000 in additionalcollection expense. Production and marketing costs represent 72 percent of sales. Thecompany is in a 30 percent tax bracket and has a receivables turnover of six times. No other asset buildup will be required to service the new customers. The firm has a 10 percentdesired return on investment.a. Should Curtis extend credit to these customers?b. Should credit be extended if 14 percent of the new sales prove uncollectible?c. Should credit be extended if the receivables turnover drops to 1.5 and 12 percent ofthe accounts are uncollectible (as was the case in part a).Curtis Toy Manufacturing Companya. Added sales ............................................................. $240,000Accounts uncollectible (12% of new sales) ............ 28,800 Annual incremental revenue ................................... 211,200 Collection costs ....................................................... 21,000 Production and selling costs (72% of new sales) .... 172,800 Annual income before taxes .................................... 17,400 Taxes (30%) ............................................................ 5,220 Incremental income after taxes ............................... $ 12,180 $240,000Receivable turnover 6.0x 6.040,000 in new receivables ==$12,180Return on incremental investment 30.45%$40,000== b. Added sales ..........................................................$240,000 Accounts uncollectible (14% of new sales) .........– 33,600 Annual incremental revenue ................................$206,400 Collection costs ....................................................– 21,000 Production and selling costs (72% of new sales) .–172,800 Annual income before taxes .................................$ 12,600 Taxes (30%) .........................................................– 3,780 Incremental income after taxes ............................ $ 8,820$8,820Return on incremental investment 22.05%$40,000== Yes, extend credit.c. If receivable turnover drops to 1.5x, the investment inaccounts receivable would equal $240,000/1.5 = $160,000.The return on incremental investment, assuming a 12%uncollectible rate, is 7.61%.$12,180==Return on incremental investment7.61%$160,000The credit should not be extended. 7.61% is less than thedesired 10%.19. Reconsider problem 18. Assume the average collection period is 120 days. All other factorsare the same (including 12 percent uncollectibles). Should credit be extended?7-19. Solution:Curtis Toy Manufacturing Company (Continued) First compute the new accounts receivable balance.Accounts receivable = average collection period × average dailysales240,000120 days120$667$80,040⨯=⨯=360 daysorAccounts receivable = sales/accounts receivable turnover360 days==Accounts receivable turnover3x120 days=$240,000/3$80,000Then compute return on incremental investment.$12,18015.23%=$80,000Yes, extend credit. 15.23% is greater than 10%.20. Apollo Data Systems is considering a promotional campaign that will increase annualcredit sales by $600,000. The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows:Accounts receivable (5x)Inventory (8x)Plant and equipment (2x)All $600,000 of the sales will be collectible. However, collection costs will be 3 percent of sales, and production and selling costs will be 77 percent of sales. The cost to carryinventory will be 6 percent of inventory. Depreciation expense on plant and equipment will be 7 percent of plant and equipment. The tax rate is 30 percent.a. Compute the investments in accounts receivable, inventory, and plant and equipmentbased on the turnover ratios. Add the three together.b. Compute the accounts receivable collection costs and production and selling costsand add the two figures together.c. Compute the costs of carrying inventory.d. Compute the depreciation expense on new plant and equipment.e. Add together all the costs in parts b, c, and d.f. Subtract the answer from part e from the sales figure of $600,000 to arrive at incomebefore taxes. Subtract taxes at a rate of 30 percent to arrive at income after taxes.g. Divide the aftertax return figure in part f by the total investment figure in part a. If thefirm has a required return on investment of 12 percent, should it undertake thepromotional campaign described throughout this problem.7-20. Solution:Apollo Data Systemsa. Accounts receivable = sales/accounts receivable turnover=$120,000$600,000/5Inventory = sales/inventory turnover=$75,000$600,000/8Plant and equipment = sales/(plant and equipment turnover)=$600,000/2$300,000Total investment$495,0007-20. (Continued)b. Collection cost = 3% × $600,000 $ 18,000Production and selling costs = 77% × $600,000 = 462,000Total costs related to accounts receivable $480,000c. Cost of carrying inventory6% × inventory6% × $75,000 $4,500d. Depreciation expense7% × Plant and Equipment7% × $300,000 $21,000e. Total costs related to accounts receivable $480,000Cost of carrying inventory 4,500Depreciation expense 21,000Total costs $505,500f. Sales $600,000– total costs 505,500Income before taxes 94,500Taxes (30%) 28,350Income after taxes $ 66,150g. Income after taxes$66,15013.36%Total investment495,000==Yes, it should undertake the campaignThe aftertax return of 13.36% exceeds the required rate of return of 12%21. In Problem 20, if inventory turnover had only been 4 times:a. What would be the new value for inventory investment?b. What would be the return on investment? You need to recompute the total investmentand the total costs of the campaign to work toward computing income after taxes.Should the campaign be undertaken?7-21. Solution:Apollo Data Systems (Continued)a. Inventory = sales/inventory turnover$150,000 = $600,000/4b. New Total InvestmentAccounts receivable $120,000Inventory 150,000Plant and equipment 300,000$570,000Total Cost of the CampaignCost of carrying inventory6% × $150,000 = $9,000 ($4,500 more than previously)New Income After TaxesSales $600,000– total costs 510,000 ($505,500 + 4,500)Income before taxes 90,000Taxes (30%) 27,000Income after taxes $ 63,000Income after taxes$63,000==11.05%Total investment570,000No, the campaign should not be undertakenThe aftertax return of 11.05% is less than the required rate ofreturn of 12%(Problems 22–25 are a series and should be taken in order.)22. Maddox Resources has credit sales of $180,000 yearly with credit terms of net 30 days,which is also the average collection period. Maddox does not offer a discount for early payment, so its customers take the full 30 days to pay.What is the average receivables balance? What is the receivables turnover?7-22. Solution:Maddox ResourcesSales/360 days = average daily sales$180,000/360 = $500Accounts receivable balance = $500 × 30 days = $15,000Receivable turnover =Sales$180,00012x Receivables$15,000==or360 days/30 = 12x23. If Maddox were to offer a 2 percent discount for payment in 10 days and every customertook advantage of the new terms, what would the new average receivables balance be?Use the full sales of $180,000 for your calculation of receivables.7-23. Solution:Maddox Resources (Continued)$500 × 10 days = $5,000 new receivable balance24. If Maddox reduces its bank loans, which cost 12 percent, by the cash generated from itsreduced receivables, what will be the net gain or loss to the firm?7-24. Solution:Maddox Resources (Continued)Old receivables – new receivables with discount = Funds freed by discount$15,000 – $5,000 ................................... = $10,000Savings on loan = 12% × $10,000 .......... = $ 1,200Discount on sales = 2% × $180,000 ........ = (3,600)Net change in income from discount ...... $(2,400) No! Don’t offer the discount since the income from reduced bankloans does not offset the loss on the discount.25. Assume that the new trade terms of 2/10, net 30 will increase sales by 20 percent becausethe discount makes the Maddox price competitive. If Maddox earns 16 percent on salesbefore discounts, should it offer the discount? (Consider the same variables as you did for problems 22 through 24.)7-25. Solution:Maddox Resources (Continued)New sales = $180,000 × 1.20 = $216,000 Sales per day = $216,000/360 = $600 Average receivables balance = $600 × 10 = $6,000 Savings in interest cost ($15,000 – $6,000) × 12% = 1,080 Increase profit on new sales = 16% × $36,000* = $5,760 Reduced profit because of discount = 2% × $216,000 = (4,320) Net change in income ............................................ $2,520 Yes, offer the discount because total profit increases.*New Sales $36,000 = $216,000 – $180,000COMPREHENSIVE PROBLEMBailey Distributing Company sells small appliances to hardware stores in the southern California area. Michael Bailey, the president of the company, is thinking about changing the credit policies offered by the firm to attract customers away from competitors. The current policy calls for a1/10, net 30, and the new policy would call for a 3/10, net 50. Currently 40 percent of Bailey customers are taking the discount, and it is anticipated that this number would go up to50 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of $200,000 to $250,000 as a result of the change in the cash discount policy.The increased sales would also affect the inventory level. The average inventory carried by Bailey is based on a determination of an EOQ. Assume unit sales of small appliances will increase from 20,000 to 25,000 units. The ordering cost for each order is $100 and the carrying cost per unit is $1 (these values will not change with the discount). The average inventory is based on EOQ/2. Each unit in inventory has an average cost of $6.50.Cost of goods sold is equal to 65 percent of net sales; general and administrative expenses are 10 percent of net sales; and interest payments of 12 percent will be necessary only for the increase in the accounts receivable and inventory balances. Taxes will equal 25 percent of before-tax income.a. Compute the accounts receivable balance before and after the change in the cashdiscount policy. Use the net sales (Total sales – Cash discounts) to determine theaverage daily sales and the accounts receivable balances.b. Determine EOQ before and after the change in the cash discount policy. Translate thisinto average inventory (in units and dollars) before and after the change in the cashdiscount policy.c. Complete the income statement.Before Policy Change After Policy ChangeNet sales (Sales – Cash discounts)Cost of goods soldGross profitGeneral and administrativeexpenseOperating profitInterest on increase in accountsreceivable and inventory (12%)Income before taxesTaxesIncome after taxesd. Should the new cash discount policy be utilized? Briefly comment.Bailey Distributing Companya. Accounts receivable = average collection × averageperiod daily sales Before Policy ChangeAverage collection period .40 × 10 days = 4 .60 × 30 days = 18 22 days Average daily sales()()()$200,000.01.40$200,000Credit sales Discount 360360$200,000$800360$199,200360Average daily sales $553.33--=-===22 days × $553.33 = $12,173.26 accounts receivable before policy changeAfter Policy Change Average collection period .50 × 10 days = 5 .50 × 50 days = 25 30 days。
财务管理专业英语
PPT文档演模板
财务管理专业英语
1.2.2 Financing Decisions
o If the firm decides to raise funds externally, the financial manager can do so by incurring debts, such as through bank loans or the sale of bonds, or by selling ownership interests through a stock offering.
o 会计科目；账户
PPT文档演模板
财务管理专业英语
1）Account、Accounting & Accountant
o Accounting：会计、会计学 Financial Accounting and Managerial Accounting are two major specialized fields in Accounting. 财务会计和管理会计是会 计的两个主要的专门领域。 Accounting elements 会计要素
PPT文档演模板
财务管理专业英语
三、others—其它
o 作业 o 平时成绩占期末总成绩的10%
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财务管理专业英语
1、Introduction to Financial Management (1)
1.1 Financial Management and Financial Manager
9. Capital Structure 资本结构
10. Dividend Policy 股利政策
11. Working Capital Management 营运资本管理
财会专业英语课件 unit 7
Main ideas Contents of each paragragh companies have to publish the value of their assets and liabilities, that is profits and losses. the methods of accouting policies valuation: deciding how much sth. is worth measurement:determining how big sth. is consistency principle, means using the same accounting policy every year
• Advantages Historical cost is the result of the transaction, it reflect the market price.It is the data information user most want to see. There are source documents as historical cost basis,but other measurements are not,such as fair value.For this reason, using historical costing is covenient to ordit. Historical cost accurately reflect the transaction, do not need to adjusting the account.It can prevent arbitrary changes in the accounting records,maintain the reliability of accounting information. Historical cost is the basis of taxation.
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HP and Microsoft plan to extend their partnership into new business areas to help large business customers incorporate new technology including internet-based communications, business intelligence and collaboration software.
提供商。
保罗·艾伦
Mini case
Microsoft and HP plan joint investment
Microsoft Corp. and Hewlett-Packard Co. have agreed to invest jointly at least $300 million over three years and work more closely together to win over large business customers.
如今的HP，作为全球领先的高科技公 司，在美国财富500强中名列第11，在全球 财富500强中名列第28，并在美国《商业周 刊》"全球最具价值品牌"中排名第13位。 HP当年创业的车库也被美国政府确立为硅 谷诞生地。HP的创新精神更是激发了千千 万万硅谷人的创业激情。
The two companies ,the world’s largest makers of software and personal computers respectively, planned to work together to develop, test, validate or ensure that products conform to standards and deploy new products, while also collaborating on sales and marketing.
The companies will also work together to establish a sales and technical training program to certify more than 3,000 new Microsoft-trained consultants at HP.
Unit 7 Capital budgeting
wisdom:
You, academician, worry about making good decisions. In business, we also worry about making decisions good.
——Anonymous
• Very important to firm’s future.
Steps to capital budgeting
1. Estimate CFs (inflows & outflows). 2. Assess riskiness of CFs. 3. Determine the appropriate cost of capital. 4. Find NPV and/or IRR. 5. Accept if NPV > 0 and/or IRR > WACC.
Microsoft
微软（Microsoft)公司 是世界PC(Personal Computer，个人计算机)机 软件开发的先导，比尔·盖
茨与保罗·艾伦是它的创始 人。
微软公司（Microsoft）
创建于1975年，总部设在华
盛顿州的雷德蒙市
（Redmond，邻近西雅图）。
目前是全球最大的电脑软件
What is capital budgeting?
Capital budgeting, also known as constructive or investment budgeting ,it is the capital expenditure plans in order to attain the better of the business’s future development and more returns .It is a budgeting which to reflect the sources and applications of funds for construction。
Should we build this
Hale Waihona Puke plant?The content of capital budgeting
• Analysis of potential additions to fixed assets.
• Long-term decisions; involve large expenditures.
HP
惠普研发有限合伙公司(HewlettPackard Development Company, L.P.)
现任CEO：马克•赫德 1939年，在美国加州帕洛阿尔托市 (Palo Alto)爱迪生大街367号的一间狭窄车 库里，两位年轻的发明家比尔.休利特 （Bill Hewlett）和戴维.帕卡德（David Packard），怀着对未来技术发展的美好 憧憬和发明创造的激情创建了HP公司， 开始了硅谷的创新之路。
主要产品为
Windows操作系统、 Internet Explorer网页 浏览器及Microsoft Office办公软件套件。 1999年推出了MSN Messenger网络即时信 息客户程序，2001年 推出Xbox游戏机，参
与游戏终端机市场竞 争。
2002年，微软结合Windows 98和 Windows 2000系列的优点，推出了 Windows XP操作系统，XP的意思是“体 验”。XP系统重点加强了安全性和稳定性， 首次在Windows操作系统中集成了微软自 己的防火墙产品。 Windows XP又一次成 为软件发展史上的经典之作。