第二章 Time,Money and Interest Rate：Time,Money and Interest Rate2.1Valuation Principal:Valuation Principal[单选题]
2.2Time Value of Money and Interest Rates:Time Value of Money and Interest Rates
2.3Valuing Cash Flows at Different Points in Time:Valuing Cash Flows at Different Points in Time
2.4Valuing a Stream of Cash Flows:Valuing a Stream of Cash Flows
2.5Annuities and Growing Annuity:Annuities and Growing Annuity
2.6Perpetuities:Perpetuities
2.7Using a Financial Calculator:Using a Financial Calculator
2.8Interest Rate Quoting Convention-APR and AER:Interest Rate Quoting Convention-APR and AER
2.9Loan Amortization:Loan Amortization
2.10The Determinants of Interest Rates:The Determinants of Interest Rates
2.11Bond Terminology:Bond Terminology
2.12Coupon Bonds:Coupon Bonds
2.13Why bond prices change?:Why bond prices change?
2.14Corporate Bonds:Corporate Bonds
2.15Stocks Basics:Stocks Basics
2.16Dividend-discount model:Dividend-discount model
2.17Share Repurchases and the Total Payout Model:Repurchases and the Total Payout Model
The present value (PV) of a stream of cash flows is just the sum of the present values of each individual cash flow.
[单选题]
A wholesale food retailer is offered $15.60 per two-layer carton for 5000 cartons of peaches. The wholesaler can buy peaches from their growers at $13.20 per carton. Shipping costs $2.40 per carton, for the first 1000 cartons, and $1.90 per carton for every carton over that. Will taking this opportunity increase the value of the wholesale food retailer?
, Yes, the costs are $2000 less than the benefits.
, Yes, the costs are $2500 less than the benefits.
, No, the costs and the benefits are the same.
]
[单选题]
An elderly relative offers to sell you their used 1958 Cadillac Eldorado for $52,000. You note that very similar cars are selling on the open market for $87,000. You don't care for classic cars and would rather buy a new Ford Explorer for $35,000. What is the net value of buying the Cadillac?
, $35,000, since this is the difference between purchase and resale price of the Cadillac.
, $52,000, since the Cadillac could be bought for this price.
, $35,000, since this is the value of the car that you really want to buy.
]
[单选题]
The price of Alaska North Slope Crude Oil (ANS) is $71.75/bbl, and the price of West Texas Intermediate Crude Oil (WTI) is $73.06/bbl.As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude. Another oil refiner is offering to trade you 10,150 bbl of Alaska North Slope (ANS) crude oil for 10,000 bbl of West Texas Intermediate (WTI) crude oil. Assuming you currently have 10,000 bbl of WTI crude, what should you do?
, Do nothing; refine the 10,000 bbl of WTI crude.
, Trade the 10,000 bbl WTI crude with the other refiner and refine the 10,150 bbl of ANS crude.
, Trade the 10,000 bbl WTI crude with the other refiner and then sell the 10,150 bbl of ANS crude.
]
[单选题]
Which of the following best explains why market prices are useful to a financial manager when performing a cost-benefit analysis?
选项:[ They can be used to convert different services and commodities into equivalent cash values which can be compared., They can be used to determine how much an asset can be sold for
, They allow all commodities and services to be assigned a fixed and unchanging value
, They can be evaluated to determine whether the market in which the manager exchanges goods and services offers true value.
]
[单选题]
Walgreens Company (NYSE: WAG) is currently trading at $48.75 on the NYSE. Walgreens Company is also listed on NASDAQ and assume it is currently trading on NASDAQ at $48.50. Does an arbitrage opportunity exist and, if so, how would you exploit it and how much would you make on a block trade of 100 shares?
, Yes, buy on NASDAQ and sell on NYSE, make $250.
, No, no arbitrage opportunity exists.
, Yes, buy on NYSE and sell on NASDAQ, make $25.
]
[单选题]
The Law of One Price states that if equivalent goods or securities are traded simultaneously in different competitive markets, they will trade for the same price in each market.
[单选题]
To enable costs and benefits to be compared, they are typically converted into cash value at the time the benefit is received.
[单选题]
Whenever a good trades in a competitive market, the price determines the value of the good.
[单选题]
In general, if an action increases a firm's value by providing benefits with a value greater than any costs involved, then that action is good for the firm's investors.
