样题公司财务.doc
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1、True-Falsei.Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share. Hale sold the stock to investment bankers, who in turn sold it to individual and institutional investors. A transaction such as this is said to be a primary market t
2、ransaction.a.True b.Falseii.The effective annual rate is always greater than the nominal rate as a result of compounding effects.a.True b.Falseiii.The coefficient of variation is a better measure of risk than the standard deviation if the expected returns of the securities being compared differ sign
3、ificantly.a.True b.Falseiv.The prices of high-coupon bonds tend to be less sensitive to a given change in interest rates than low-coupon bonds, other things equal and held constant.a.True b.Falsev.If two firms have the same current dividend and the same expected growth rate, their stocks must sell a
4、t the same current price or else the market will not be in equilibrium.a.Trueb.Falsevi.It is not possible for a firms use of debt to increase but its after-tax cost of debt to decline.a.Trueb.Falsevii.The main reason that the NPV method is regarded as being conceptually superior to the IRR method fo
5、r evaluating mutually exclusive investments is that multiple IRRs may exist.a.Trueb.Falseviii.Any cash flow that can be classified as incremental is relevant in a capital budgeting project analysis.a.True b.Falseix.Suppose two firms have the same amount of assets, pay the same interest rate on their
6、 debt, have the same basic earning power (BEP), and have the same tax rate. However, one firm has a higher debt ratio. If BEP is greater than the interest rate on debt, the firm with the higher debt ratio will also have a higher rate of return on common equity.a.True b.FalseMultiple Choice: Conceptu
7、alx.Which of the following actions will cause an increase in the quick ratio in the short run?a.$1,000 worth of inventory is sold, and an account receivable is created. The receivable exceeds the inventory by the amount of profit on the sale, which is added to retained earnings. b.A small subsidiary
8、 which was acquired for $100,000 two years ago and which was generating profits at the rate of 10 percent is sold for $100,000 cash. (Average company profits are 15 percent of assets.) c.Marketable securities are sold at cost. d.All of the answers above. e.Answers a and b above.xi.Other things held
9、constant, which of the following would increase the NPV of a project being considered? a.A shift from MACRS to straight-line depreciation. b.Making the initial investment in the first year rather than spreading it over the first 3 years. c.A decrease in the discount rate associated with the project.
10、 d.The sale of the old machine in a replacement decision at a capital loss rather than at book value. e.An increase in required working capital.xii.Which of the following statements is most correct?a.The before-tax cost of preferred stock may be lower than the before-tax cost of debt, even though pr
11、eferred stock is riskier than debt.b.If a companys stock price increases, this increases its cost of common stock.c.If the cost of equity capital increases, it must be due to an increase in the firms beta.d.Statements a and b are correct.e.Answers a, b, and c are correct.xiii.Projects A and B have t
12、he same expected lives and initial cash outflows. However, one projects cash flows are larger in the early years, while the other project has larger cash flows in the later years. The two NPV profiles are given below:Which of the following statements is most correct?a.Project A has the smaller cash
13、flows in the later years.b.Project A has the larger cash flows in the later years.c.We require information on the cost of capital in order to determine which project has larger early cash flows.d.The NPV profile graph is inconsistent with the statement made in the problem.e.None of the statements ab
14、ove is correct.xiv.Which of the following statements is false?a.When a corporations shares are owned by a few individuals who are associated with or are the firms management, we say that the firm is “closely held.“b.A publicly owned corporation is simply a company whose shares are held by the invest
15、ing public, which may include other corporations and institutions as well as individuals.c.Going public establishes a true market value for the firm and ensures that a liquid market will always exist for the firms shares.d.When stock in a closely held corporation is offered to the public for the fir
16、st time the transaction is called “going public“ and the market for such stock is called the new issue market.NPVABre.It is possible for a firm to go public, and yet not raise any additional new capital.xv.Assume interest rates on long-term government and corporate bonds were as follows:T-bond = 7.7
17、2% A = 9.64%AAA = 8.72% BBB = 10.18%The differences in rates among these issues were caused primarily bya.Tax effects. b.Default risk differences. c.Maturity risk differences. d.Inflation differences. e.Answers b and d are correct.xvi.Suppose someone offered you the choice of two equally risky annui
18、ties, each paying $10,000 per year for five years. One is an ordinary (or deferred) annuity, the other is an annuity due. Which of the following statements is most correct?a.The present value of the ordinary annuity must exceed the present value of the annuity due, but the future value of an ordinar
19、y annuity may be less than the future value of the annuity due. b.The present value of the annuity due exceeds the present value of the ordinary annuity, while the future value of the annuity due is less than the future value of the ordinary annuity. c.The present value of the annuity due exceeds th
20、e present value of the ordinary annuity, and the future value of the annuity due also exceeds the future value of the ordinary annuity. d.If interest rates increase, the difference between the present value of the ordinary annuity and the present value of the annuity due remains the same. e.Answers
21、a and d are correct.xvii.Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of the following statements must be true about these securities? (Assume the market is in equilibrium.)a.When held in isolation, Stock A has greater risk than Stock B. b.Stock B would be a more desirable addition
22、 to a portfolio than Stock A.c.Stock A would be a more desirable addition to a portfolio than Stock B.d.The expected return on Stock A will be greater than that on Stock B. e.The expected return on Stock B will be greater than that on Stock A.xviii. Which of the following statements is most correct?
23、a.If a bonds yield to maturity exceeds its annual coupon, then the bond will be trading at a premium. b.If interest rates increase, the relative price change of a 10-year coupon bond will be greater than the relative price change of a 10-year zero coupon bond. c.If a coupon bond is selling at par, i
24、ts current yield equals its yield to maturity. d.Both a and c are correct. e. None of the answers above is correct.Multiple Choice: Problemsxix.Dean Brothers Inc. recently reported net income of $1,500,000. The company has 300,000 shares of common stock. The stock currently trades at $60 a share. Th
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