外交学院
- The S&P 500 index delivered a return of 10%, 15%, 15%, and -30% over four successive years. The arithmetic average annual return for four years is 2.5%.
- A capital budget lists the potential projects a company may undertake in future years.
- Free cash flow measures the cash generated by a firm after payments to debt or equity holders are considered.
- The coupon value of a bond is the face value of the bond.
- The management of public companies is not legally required to disclose any off-balance sheet transactions.
- The income statement reports the firm's revenues and expenses, and it computes the firm's bottom line of net income, or earnings.
- Aerelon Airways, a commercial airline, suffers a major crash. As a result, passengers are considered to be less likely to choose Aerelon as their carrier, and it is expected free cash flows will fall by $15million per year for five years. If Aerelon has 55 million shares outstanding, an equity cost of capital of 10%, and no debt, Aerelon's shares would be expected to fall 1.03 in price as a result of this accident.
- The practice of maintaining relatively constant dividends is called dividend smoothing.
- The optimal dividend policy when dividend tax rates exceed capital gains tax rates is to pay dividends only.
- Eurobonds are international bonds that are denominated in European currency.
- A company buys a color printer that will cost $16,000 to buy, and last 5 years. It is assumed that it will require servicing costing $500 each year. The equivalent annual annuity of this deal is $-4507, given a cost of capital of 8%?
- When a firm is evaluating the purchase of a business that is unrelated to its current business, it is appropriate to use the current WACC of the firm that is purchasing the business.
- A bond that makes payments in a certain currency contains the risk of holding that currency and so is priced according to the yields of similar bonds in that currency.
- Covenants in a bond contract restrict the actions that management of a firm can take that would benefit the debtholders of a firm at the expense of the equity holders of the firm.
- Gross profit is calculated as total sales minus cost of sales; cost of goods sold.
- A firm's statement of cash flows uses the balance sheet and the income statement to determine the amount of cash a firm has generated and how it has used that cash during a given period.
- Firms that have many divisions with different lines of business do not use a companywide WACC to evaluate projects.
- The yield to maturity of a one-year, risk-free, zero-coupon bond with a $10,000 face value and a price of $9400 when released is 6.383%
- A real option is the obligation to take a particular business action.
- Suppose you invest $22,500 by purchasing 200 shares of Abbott Labs (ABT) at $55 per share, 200 shares of Lowes (LOW) at $35 per share, and 100 shares of Ball Corporation (BLL) at $45 per share. The weight of Lowes in your portfolio is 31.11%.
- The current zero-coupon yield curve for risk-free bonds is shown above. What is the risk-free interest rate on a 4-year maturity?
- Your retirement portfolio comprises 300 shares of the S&P 500 fund (SPY) and 100 shares of iShares Barclays Aggregate Bond Fund (AGG). The price of SPY is $136 and that of AGG is $97. If you expect the return on SPY to be 11% in the next year and the return on AGG to be 10%, what is the expected return for your retirement portfolio?
- A portfolio has three stocks — 110 shares of Yahoo (YHOO), 210 Shares of General Motors (GM), and 70 shares of Standard and Poor's Index Fund (SPY). If the price of YHOO is $20, the price of GM is $20, and the price of SPY is $130, calculate the portfolio weight of YHOO and GM.
- Anyone who purchases the stock on or after the ________ date will not receive the dividend.
- A $5000 bond with a coupon rate of 5.7% paid semiannually has ten years to maturity and a yield to maturity of 6.4%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?
- Assume Time Warner shares have a market capitalization of $60 billion. The company is expected to pay a dividend of $0.30 per share and each share trades for $40. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 8%. If the firm's tax rate is 35%, compute the WACC?
- In which of the following situations does the value of a convertible bond exceed the value of straight debt or equity by the greatest amount?
- A rich donor gives a hospital $1,040,000 one year from today. Each year after that, the hospital will receive a payment 6% larger than the previous payment, with the last payment occurring in ten years' time. What is the present value (PV) of this donation, given that the interest rate is 11%?
- Prada has ten million shares outstanding, generates free cash flows of $ 60 million each year and has a cost of capital of 10%. It also has $40 million of cash on hand. Prada wants to decide whether to repurchase stock or invest the cash in a project that generates free cash flows of $2 million each year. Should Prada invest or repurchase the shares?
- A firm may announce its intention to buy its own shares in the open market like any other investor, also known as a(n) ________.
- Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share. Suppose over the next year Ball has a return of 12.5%, Lowes has a return of 21%, and Abbott Labs has a return of -10%. The return on your portfolio over the year is ________.
- Leverage is the amount of ________ on a firm's balance sheet.
- An investment pays you $30,000 at the end of this year, and $15,000 at the end of each of the four following years. What is the present value (PV) of this investment, given that the interest rate is 5% per year?
- A firm has a total market value of assets of $300 that includes $40 million of cash and 10 million shares outstanding. If the firm uses $30 million of its cash to repurchase shares, what is the new price per share?
- Athelstone Realty issues debt with a maturity of 20 years. In the case of bankruptcy, holders of this debt may claim the property held by Athelstone Realty. Which of the following best describes this type of corporate debt?
- Howard is saving for a holiday. He deposits a fixed amount every month in a bank account with an EAR of 14.7%. If this account pays interest every month then how much should he save from each monthly paycheck in order to have $14,000 in the account in four years' time?
- What is the main problem in using a balance sheet to provide an accurate assessment of the value of a company's equity?
- An investor holds a Ford bond with a face value of $5000, a coupon rate of 8.5%, and semiannual payments that matures on January 15, 2029. How much will the investor receive on January 15, 2029?
- A stock is bought for $23.00 and sold for $27.00 one year later, immediately after it has paid a dividend of $1.50. What is the capital gain rate for this transaction?
- Which of the following balance sheet equations is INCORRECT?
- Which of the following are steps in the WACC valuation method?
- Assume your current mortgage payment is $900 per month. If you begin to pay $1,000 per month (with the extra $100 per month going to principal), which of the following will not be TRUE?
- Which of the following statements regarding the Law of One Price are CORRECT?
- Which of the following statements regarding the balance sheet are CORRECT?
- Which of the following are diversifiable risks?
- Which of the following are limitations of the payback period rule?
- Which of the following is the likely explanation for a firm's high ROE?
- Which of the following statements is/are True?
- Which of the following are advantages of a sole proprietorship?
- Joe is a general partner in a limited partnership firm, while Jane is a limited partner in that same firm. Which of the following statements regarding their respective relationships to the firm are not correct?
- Which of the following is/are part of the four characteristics of IPOs that puzzle financial economists?
- Which of the following formulas will not correctly calculate Net Working Capital?
- Which of the following statements concerning the use of sinking funds to repurchase a bond issue are true?
- Which of the following statements are CORRECT based on the time value of money?
- When the costs of an investment come before that investment's benefits, what will not be the effect of a rise in interest rates on the attractiveness of that investment to potential investors?
- Which ones are not the right process of double taxation for the stockholders in a C corporation?
- Which of the following statements are FALSE?
- As a firm increases its level of debt relative to its level of equity, the firm is NOT ________.
- An investor estimates the value of a firm which manufactures cookware by examining the cash flows of similar firms. Which of the following is assumed to be the same for these firms?
- A bond is currently trading below par. Which of the following could be true about that bond?
A:错 B:对
答案:对
A:错 B:对
答案:错
A:错 B:对
答案:B
A:错 B:对
答案:B
A:对 B:错
答案:B
A:对 B:错
答案:对
A:对 B:错
答案:对
A:错 B:对
答案:对
A:错 B:对
答案:A:错
A:错 B:对
A:错 B:对
A:错 B:对
A:对 B:错
A:错 B:对
A:对 B:错
A:对 B:错
A:错 B:对
A:错 B:对
A:对 B:错
A:对 B:错
A:3.15% B:3% C:6.34% D:3.25%
A:9.73% B:10.27% C:8.65% D:10.81%
A:13.5%, 24.4% B:14.2%, 27.1% C:9.9%, 25.7% D:10.6%, 13.5%
A:ex-dividend B:declaration C:distribution D:record
A:The price of the bond will rise by $410.90. B:The price of the bond will fall by $293.50. C:The price of the bond will rise by $293.50. D:The price of the bond will fall by $352.20.
A:6.05% B:6.76% C:6.4% D:7.11%
A:when the price of the stock is higher than the issuing price B:when the price of the stock is close to the conversion price C:when the price of the stock much lower than the conversion price D:when the price of the stock is low
A:3840628.87 B:5376880.42 C:6913131.97 D:7681257.74
A:indifferent between options B:repurchase C:cannot say for sure D:invest
A:tender offer B:greenmail C:targeted repurchase D:open market repurchase
A:0% B:7.6% C:3.8% D:5.7%
A:preferred stock B:retained earnings C:equity D:debt
A:63382 B:95074 C:39614 D:79228
A:24 B:36 C:30 D:42
A:a note B:an asset-backed bond C:a debenture D:a mortgage bond
A:176 B:352 C:308 D:220
A:The balance sheet does not accurately represent the book value of assets held by the company. B:The equity shown on the balance sheet does not reflect the market capitalization of the company. C:Knowing at a single point in time what assets a firm possesses and the liabilities a firm owes does not give any indication of what those assets can produce in the future.
A:5000 B:5212.5 C:5425 D:2606.25
A:13.91% B:3.48% C:8.7% D:17.39%
A:Assets - Current liabilities = Long-term liabilities B:Assets = Liabilities + Shareholders' equity C:Assets - Current liabilities = Long-term liabilities + Shareholders' equity D:Assets - Liabilities = Shareholders' equity
A:Determine the incremental free cash flows of the investment. B:Determine the mean weighted average cost of capital for the firm's industry. C:Compute the weighted average cost of capital. D:Discount the incremental free cash flows of the investment using the weighted average cost of capital.
A:The total amount paid (principal and interest) will increase with $1,000 monthly payment compared to $900 monthly payments. B:The total principal paid will decrease with $1,000 monthly payment compared to $900 monthly payments. C:The mortgage balance will decrease faster with $1,000 monthly payment compared to $900 monthly payments. D:The total interest expense will increase with $1,000 monthly payment compared to $900 monthly payments.
A:An important property of the Law of One Price is that it holds even in markets where arbitrage is possible. B:At any point in time, the price of two equivalent goods trading in different competitive markets will be the same. C:If equivalent goods or securities trade simultaneously in different competitive markets, then they will trade for the same price in both markets. D:One useful consequence of the Law of One Price is that when evaluating costs and benefits to compute a net present value (NPV), we can use any competitive price to determine a cash value, without checking the price in all possible markets.
A:The balance sheet reports liabilities on the left-hand side.
A:the risk of a key employee being hired away by a competitor B:the risk of a product liability lawsuit C:the risk that oil prices rise, increasing production costs D:the risk that the CEO is killed in a plane crash
A:It does not account for the time value of money. B:It does not account for changes in the discount rate. C:It ignores cash flows after payback. D:It is difficult to calculate.
A:The firm enjoys high sales margins. B:The firm has very efficient use of its assets. C:The firm is able to find investment opportunities that are very profitable. D:The firm is growing.
A:Estimating dividends, especially for the distant future, is difficult. B:A firm can only pay out its earnings to investors or reinvest their earnings. C:Successful young firms often have high initial earnings growth rates. D:According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the grow rate.
A:single taxation B:limited liability C:no separation of ownership and control D:ease of setup
A:Joe has no management authority within the partnership. B:Withdrawal of Jane from the partnership will dissolve that partnership. C:Jane is legally involved in the managerial decision making of the firm.
A:The number of issues is highly cyclical. B:The long-run performance of a newly public company (three to five years from the date of issue) is superior to the overall market return. C:The costs of the IPO are very high, and it is unclear why firms willingly incur such high costs. D:On average, IPOs appear to be underpriced.
A:Cash + Inventory - Receivables + Payables B:Cash + Inventory + Receivables - Payables C:Cash - Inventory + Receivables + Payables D:Cash + Inventory + Receivables + Payables
A:A firm should make regular payments into a sinking fund administered by a trustee over the life of the bond. B:Payments from the sinking fund are used to repurchase bonds. C:Bonds can be issued with a sinking fund provision or a call provision, but not both. D:A firm can reduce the amount of outstanding debt without affecting the cash flows of the remaining bonds.
A:We refer to (1 - rf) as the interest rate factor for risk-free cash flows. B:We define the risk-free interest rate (rf) for a given period as the interest rate at which money can be borrowed or lent without risk over that period. C:In general, money today is worth more than money in one year. D:For most financial decisions, costs and benefits occur at different points in time.
A:It will make it more attractive, since it will increase the investment's net present value (NPV). B:It will make it more attractive, since it will decrease the investment's net present value (NPV). C:It will make it less attractive, since it will increase the investment's net present value (NPV). D:It will make it less attractive, since it will decrease the investment's net present value (NPV).
A:The corporation is taxed on the profits it makes, and the owners are taxed when this profit is distributed to them. B:Their shares are taxed when they are both bought and sold. C:The owners of a corporation are taxed when they receive dividend payments and when they make a profit from the sale of shares. D:The corporation must pay taxes on any profits it makes, and the capital raised by the sale of shares is also subject to taxation.
A:Since a firm's free cash flow is equal to the sum of the free cash flows from the firm's current and future investments, we can interpret the firm's enterprise value as the total net present value (NPV) that the firm will earn from continuing its existing projects and initiating new ones. B:When using the discounted free cash flow model, we forecast a firm's free cash flow up to some horizon, together with some terminal (continuation) value of the enterprise. C:The long-run growth rate gFCF is typically based on the expected long-run growth rate of a firm's revenues. D:If a firm has no debt, then rwacc equals the risk-free rate of return.
A:increasing its leverage B:increasing the fraction of its equity C:decreasing the fraction of its debt D:decreasing its leverage
A:annual growth rates B:P/E C:payout rates
A:B or C above
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