1.In general, what are the contents of the dividend distribution announcement ( ) issued by the company.
A:Objects of dividend distribution
B:Dividend payment method
C:All the other choices are wrong
D:Profit distribution plan
答案:Profit distribution plan###Objects of dividend distribution###Dividend payment method
2.In the case of tax, MM theory holds that ( ).
A:The cost of equity capital of enterprises with liabilities under tax is smaller than that without tax.
B:Debt interest tax credit has a significant impact on enterprise value.
C:All the other choices are wrong
D:With the increase of the debt ratio of enterprises, the value of enterprises also increases.
答案:With the increase of the debt ratio of enterprises, the value of enterprises also increases###The cost of equity capital of enterprises with liabilities under tax is smaller than that without tax###Debt interest tax credit has a significant impact on enterprise value
3.Working capital management includes decisions concerning which of the following? ( )
A:long-term debt
B:accounts receivable
C:inventory
D:accounts payable
答案:accounts payable###accounts receivable###inventory
4.Which of the following should be included in the analysis of a project? （ ）
A:opportunity costs
B:erosion costs
C:incremental costs
D:sunk costs
答案:opportunity costs###erosion costs###incremental costs
5.At a minimum, which of the following would you need to know to estimate the amount of additional reward you will receive for purchasing a risky asset instead of a risk-free asset?( )
A:risk-free rate of return
B:market risk premium
C:asset's standard deviation
D:asset's beta
答案:beta
6.Which of the following statements concerning risk are correct?( )
A:Diversifiable risks are market risks you cannot avoid.
B:The risk premium increases as diversifiable risk increases.
C:Nondiversifiable risk is measured by beta.
D:Systematic risk is another name for nondiversifiable risk.
答案:Nondiversifiable risk is measured by beta###Systematic risk is another name for nondiversifiable risk
7.A bond has a market price that exceeds its face value. Which of the following features currently apply to this bond? ( )
A:discounted price
B:yield-to-maturity that is less than the coupon rate
C:yield-to-maturity that exceeds the coupon rate
D:premium price
答案:premium price###yield-to-maturity that is less than the coupon rate
8.The expected return on a portfolio( )
A:must be equal to or greater than the expected return of the worst performing security in the portfolio.
B:can never exceed the expected return of the best performing security in the portfolio.
C:is independent of the unsystematic risks of the individual securities held in the portfolio.
D:is independent of the allocation of the portfolio amongst individual securities.
答案:can never exceed the expected return of the best performing security in the portfolio###must be equal to or greater than the expected return of the worst performing security in the portfolio###is independent of the unsystematic risks of the individual securities held in the portfolio
9.Which of the following are examples of diversifiable risk?( )
A:earthquake damages an entire town
B:employment taxes increase nationally
C:federal government imposes a $100 fee on all business entities
D:toymakers are required to improve their safety standards
答案:earthquake damages an entire town###toymakers are required to improve their safety standards
10.The total rate of return earned on a stock is comprised of which two of the following? （ ）
A:dividend yield
B:yield to maturity
C:capital gains yield
D:current yield
答案:dividend yield###capital gains yield
11.An investment is acceptable if the profitability index (PI) of the investment is: （ ）。
A:less than the net present value (NPV)
B:less than one
C:greater than one
D:greater than the internal rate of return (IRR)
A:Residual dividend policy B:Fixed dividend payment rate policy C:Low normal dividend plus extra dividend policy D:Fixed dividend policy 13.Bert owns a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 calle（ ）
A:coupon B:yield C:face value D:discount 14.Sal's Pizza has a dividend payout ratio of 10 percent. The firm does not want to issue additional equity shares but does want to maintain its current debt-equity ratio and its current dividend policy. The firm is profitable. Which one of the following defines the maximum rate at which this firm can grow? ( )
A:internal growth rate B:internal growth rate (1 - 0.10) C:sustainable growth rate D:sustainable growth rate (1 - 0.10) 15.A project's operating cash flow will increase when: （ ）
A:the sales projections are lowered. B:the depreciation expense increases. C:the interest expense is lowered. D:the net working capital requirement increases. 16.下列哪一个理论认为公司的价值与公司的资本结构无关？（ ）
A:资本资产定价模型 B:有效市场假说 C:MM定理命题II D:MM定理命题I 17.How much are you willing to pay for one share of stock if the company just paid an $.80 annual dividend, the dividends increase by 4% annually and you require an 8% rate of return? （ ）
A:$19.23 B:$20.40 C:$20.80 D:$20.00 18.Which one of the following statements is correct concerning unsystematic risk? （ ）
A:Eliminating unsystematic risk is the responsibility of the individual investor. B:Beta measures the level of unsystematic risk inherent in an individual security. C:Standard deviation is a measure of unsystematic risk. D:An investor is rewarded for assuming unsystematic risk. 19.Which one of the following business types is best suited to raising large amounts of capital? ( )
A:corporation B:sole proprietorship C:limited liability company D:general partnership 20.MM theory without tax holds that ( ).
A:The value of enterprises with liabilities is equal to that of enterprises without liabilities. B:The enterprise value with liabilities is less than that without liabilities. C:The weighted cost of capital is positively correlated with its debt ratio. D:The cost of equity capital of enterprises with liabilities decreases with the increase of financial leverage. 21.Pete paid $1,032 as his total cost of purchasing a bond. This price is referred to as the:
A:clean price. B:dirty price. C:spread price. D:quoted price. 22.Which one of the following best states the primary goal of financial management? ( )
A:minimize operational costs while maximizing firm efficiency B:maximize the current value per share C:increase cash flow and avoid financial distress D:maximize current dividends per share 23.Standard deviation measures which type of risk? （ ）
A:total B:nondiversifiable C:systematic D:unsystematic 24.The possibility that more than one discount rate will make the NPV of an investment equal to zero is called the _____ problem. （ ）
A:net present value profiling B:issues of scale C:mutually exclusive investment decision D:operational ambiguity 25.A perpetuity differs from an annuity because: ( )
A:perpetuity payments never cease. B:perpetuity payments vary with the rate of inflation. C:perpetuity payments are variable while annuity payments are constant. D:perpetuity payments vary with the market rate of interest. 26.Which one of the following represents the level of output where a project produces a rate of return just equal to its requirement? ( )
A:financial break-even B:capital break-even C:cash break-even D:accounting break-even 27.The primary reason that company projects with positive net present values are considered acceptable is that: （ ）
A:they create value for the owners of the firm. B:the investment's cost exceeds the present value of the cash inflows. C:they return the initial cash outlay within three years or less. D:the project's rate of return exceeds the rate of inflation. 28.A cost that has already been paid, or the liability to pay has already been incurred, is a(n): （ ）
A:net working capital expense B:salvage value expense C:opportunity cost. D:sunk cost. 29.下列哪个理论可以解释为什么有的企业选择舍弃债务抵税收益而保持较低的负债水平？（ ）
A:财务困境下的权衡理论 B:代理理论 C:融资有序理论 D:以上都不对 30.You are purchasing a 25-year, zero-coupon bond. The yield to maturity is 8.68 percent and the face value is $1,000. What is the current market price? （ ）
A: $106.67 B:$119.52 C:$121.50 D:$108.18 31.You are trying to determine whether to accept project A or project B. These projects are mutually exclusive. As part of your analysis, you should compute the incremental IRR by determining: （ ）
A:the discount rate that equates the discounted payback periods for each project B:the internal rate of return for the differences in the cash flows of the two projects C:the net present value of each project using the internal rate of return as the discount rate D:the internal rate of return for the cash flows of each project 32.Your local travel agent is advertising an extravagant global vacation. The package deal requires that you pay $5,000 today, $15,000 one year from today, and a final payment of $25,000 on the day you leave two years from today. What is the cost of this vacation in today's dollars if the discount rate is 6%? ( )
A:$39,057.41 B:$44,414.14 C:$43,082.39 D:$41,400.85 33.The present value of an investment's future cash flows divided by the initial cost of the investment is called the: （ ）
A:net present value B:profitability index C:average accounting return D:internal rate of return 34.Seaweed Mfg., Inc. is currently operating at only 81 percent of fixed asset capacity. Current sales are $550,000. What is the maximum rate at which sales can grow before any new fixed assets are needed? ( )
A:15.03 percent B:14.23 percent C:14.47 percent D:23.46 percent 35.Sensitivity analysis determines the: ( )
A:degree to which a project relies on its fixed costs. B:degree to which the net present value reacts to changes in a single variable. C:range of possible outcomes given that most variables are reliable only within a stated range. D:net present value range that can be realized from a proposed project. 36.The salvage value of an asset creates an after-tax cash inflow to the firm in an amount equal to the: （ ）
A:sales price minus the book value B:sales price minus the tax due based on the sales price minus the book value C:sales price of the asset D:sales price plus the tax due based on the sales price minus the book value 37.The rate at which a stock's price is expected to appreciate (or depreciate) is called the _____ yield. （ ）
A:capital gains B:total C:current D:dividend 38.The Scott Co. has a general dividend policy whereby it pays a constant annual dividend of $1 per share of common stock. The firm has 1,000 shares of stock outstanding. The company: （ ）
A:is obligated to continue paying $1 per share per year. B:must always show a current liability of $1,000 for dividends payable. C:must still declare each dividend before it becomes an actual company liability. D:will be declared in default and can face bankruptcy if it does not pay $1 per year to each shareholder on a timely basis. 39.Dividend yield is computed by dividing next year's annual dividend by the current stock price。 （ ）
A:对 B:错 40.Total risk is measured by standard deviation and systematic risk is measured by beta。 （ ）
A:错 B:对 41.The owner of a sole proprietorship is personally responsible for all of the company's debts。（ ）
A:对 B:错 42.Bankruptcy transfers value from shareholders to bondholders。 （ ）
A:对 B:错 43.An increase in the required rate of return increases the net present value of a project。 （ ）
A:对 B:错 44.The current yield is defined as the annual interest on a bond divided by face value。 （ ）
A:对 B:错 45.The primary purpose of portfolio diversification is to eliminate systematic risk。 （ ）
A:错 B:对 46.Determining how much debt should be assumed to fund a project is a capital structure decision。 （ ）
A:对 B:错 47.通常情况下，资本结构指的是短期债务资本和权益资本各占多大比例。（ ）
A:对 B:错 48.If a project has a net present value equal to zero, then the project earns a return exactly equal to the discount rate。 （ ）
A:对 B:错 49.
The most recent financial statements for Heng Co. are shown here:
Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained next year assuming no new equity is issued?（）
A:$5,211.17 B:$6,493.74 C:$4,808.12 D:$5,987.48
