第六章测试1.
Financial managers prefer to choose the same debt level no matter which industry they operate in.
A:错 B:对
答案:B
2.
Even if two firms operate in the same industry, they may prefer different choices of debt-equity ratios.
A:对 B:错 3.
A project's net present value (NPV) represents the value to the new investors of a firm created by the project.
A:对 B:错 4.
The presence of financial distress costs can explain why firms choose debt levels that are too low to exploit the interest tax shield.
A:对 B:错 5.
The relative proportions of debt, equity, and other securities that a firm has outstanding constitute its ________.
A:capital structure B:retained earnings C:dividend expense D:paid out capital 6.
By adding leverage, the returns on a firm are split between debt holders and equity holders, but equity holder risk increases because ________.
A:debt and equity have equal priority B:dividends are paid first C:interest payments have first priority D:interest payments can be rolled over 7.
A firm has a market value of equity of $30,000. It borrows $7500 at 8%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital?
A:23.45% B:6.70% C:16.75% D:20.10% 8.
Which of the following statements is FALSE?
A:When a firm borrows significant money to repurchase shares or pay a large cash dividend, the transaction is called a leveraged recapitalization. B:By choosing positive-NPV projects that are worth more than their initial investment, a firm can enhance its value. C:The choice of capital structure does not change the value of a firm if the cost of equity is higher than the cost of debt. D:MM Proposition I applies to capital structure decisions made at any time during the life of a firm. 9.
Assume that MM's perfect capital markets conditions are met and that you can borrow and lend at the same 5% rate as Firm X. You have $5,000 of your own money to invest and you plan on buying Firm X stock. Using homemade (un)leverage you invest enough at the risk-free rate so that the payoff of your account will be the same as a $5,000 investment in Firm Y stock. The number of shares of Firm X stock you purchased is closest to ________.
A:1,650 B:417 C:100 D:825 10.
In a perfect capital market, when a dividend is paid, the share price drops by the amount of the dividend when the stock begins to trade ex-dividend.
A:对 B:错
