公司财务(二)及答案解析.doc

《公司财务(二)及答案解析.doc》由会员分享，可在线阅读，更多相关《公司财务(二)及答案解析.doc（33页珍藏版）》请在麦多课文档分享上搜索。

1、公司财务(二)及答案解析(总分：44.00，做题时间：90 分钟)一、B单项选择题/B(总题数：44，分数：44.00)1.Which of the following statements is most accurate regarding a firms cost of preferred shares? A firms cost of preferred stock is: A. the market price of the preferred shares as a percentage of its issuance price. B. the dividend yield on

2、 the firms newly-issued preferred stock. C. approximately equal to the market price of the firms debt as a percentage of the market price of its common shares.（分数：1.00）A.B.C.2.Helmut Humm, manager at a large U. S. firm, has just been assigned to the capital budgeting area to replace a person who lef

3、t suddenly. One of Humms first tasks is to calculate the companys weighted average cost of capital (WACC). Humm finds clear notes on the target capital component weights. Unfortunately, all he can find for the cost of capital components is some handwritten notes. He can make out the numbers, but not

4、 the corresponding capital component. So, he has to guess. Here is what Humm deciphered:Target weights : wd = 30% , wps = 20% , wce= 50% , where wd, wps, and wce are the weights used for debt, preferred stock, and common equity.Cost of components (in no particular order) : 6.0% , 15.0% , and 8.5%.Th

5、e cost of debt is the after-tax cost.If Humm guesses correctly, the WACC is: A. 9.2%. B. 11.0%. C. 9.0%.（分数：1.00）A.B.C.3.If the calculated net present value (NPV) is negative, which of the following must be TRUE? The discount rate used is: A. equal to the internal rate of return (IRR). B. greater th

6、an the internal rate of return (IRR). C. less than the internal rate of return (IRR).（分数：1.00）A.B.C.4.Projected net capital expenditures and financing decisions are most important as a component of a firms: A. pro-forma income statement. B. expected operating cash flows. C. long-term cash flow forec

7、ast.（分数：1.00）A.B.C.5.Jamal Winfield is an analyst with Stolzenbach Technologies, a major computer services company based in the U.S. Stolzenbachs management team is considering opening new stores in Mexico, and wants to estimate the cost of equity capital for Stolzenbachs investment in Mexico. Winfi

8、eld has researched bond yields in Mexico and found that the yield on a Mexican government 10-year bond is 7.7 percent. A similar maturity U.S. Treasury bond has a yield of 4.6 percent. In the most recent year, the standard deviation of Mexicos All Share Index stock index and the S&P 500 index was 38

9、 percent and 20 percent respectively. The annualized standard deviation of the Mexican dollar-denominated 10-year government bond over the last year was 26 percent. Winfield has also determined that the appropriate beta to use for the project is 1.25, and the market risk premium is 6 percent. The ri

10、sk free interest rate is 4.2 percent. What is the appropriate country risk premium for Mexico and what is the cost of equity that Winfield should use in his analysis?Country Risk Premium for Mexico Cost of Equity for ProjectA. 4.53% 19.06%B. 5.89% 17.36%C. 4.53% 17.36% A. B. C. （分数：1.00）A.B.C.6.Rand

11、ox Industries has the following investment policy statement: “In order to achieve the safety and liquidity necessary in the investment of excess cash balances, the CFO or his designee may invest excess cash balances in 30 - day U. S. Treasury bills, or in bankers acceptances with maturities of less

12、than 31 days or 30 - day certificates of deposit, where the credit rating of the issuing bank is A + or higher. “ This policy statement is. A. appropriate because these are all safe, liquid securities. B. inappropriate because it is too restrictive. C. inappropriate because both bankers acceptances

13、and certificates of deposit are illiquid.（分数：1.00）A.B.C.7.Project sequencing is best described as: A. prioritizing funds to achieve the maximum value for shareholders, given capital limitations. B. selecting the first project from a set of mutually exclusive projects. C. an investment in a project t

14、oday that creates the opportunity to invest in other projects in the future.（分数：1.00）A.B.C.8.Which of the following strategies is most likely to be considered good payables management? A. Paying trade invoices on the day they arrive. B. Paying invoices on the last possible day to still get the suppl

15、iers discount for early payment. C. Taking trade discounts only if the firms annual return on short-term investments is less than the discount percentage.（分数：1.00）A.B.C.9.Enamel Manufacturing (EM) is considering investing in a new vehicle. EM finances new projects using retained earnings and bank lo

16、ans. This new vehicle is expected to have the same level of risk as the typical investment made by EM. Which one of the following should the firm use in making its decision? A. After-tax cost of debt. B. Marginal cost of capital. C. Cost of preferred stock.（分数：1.00）A.B.C.10.An analyst is forecasting

17、 a companys financial performance for the next year and prepares the following pro forma financial statements. Actual EstimatedU20X1/UU20X2/USales 1000000 1010000Cost of goods sold 600000 606000SG&A expenses 300000 303000Interest expense 72000 72000Earnigs before tax 20000 29000Income tax 7000 7250N

18、et income 21000 21750Dividends 8400 8700Retained earnings 12600 13050Pro Forma Balance Sheet Actual EstimatedU20X1/UU20X2/UCurrent assets 600000 606000PP&E,net 1300000 1313000Total assets 1900000 1919000Current liabilities 200000 202000Long-term debt 900000 900000Common stock 300000 300000Retained e

19、arnings 500000 513050Total liabilities and equity 1900000 1915050The analyst is most likely to reconcile these pro forma financial statements by assuming the company: A. pays out the financial surplus as additional dividends. B. uses the financial surplus to pay down long-term debt. C. resolves the

20、financial deficit by issuing long-term debt.（分数：1.00）A.B.C.11.The expected dividend one year from today is $2.50 for a share of stock priced at $22.50. The long-term growth in dividends is projected at 8 percent. The cost of common equity is closest to : A. 15.6%. B. 16.2%. C. 19.1%.（分数：1.00）A.B.C.1

21、2.An analyst computes the following ratios for Iridescent Carpeting Inc. and compares the results to the industry averages: Financial Ratio Iridescent Industry AverageCarpetingCurrent Ratio 2.3x 1.8xNet Profit Margin 22% 24%Return on Equity 17% 20%Total Debt / Total Capital35% 56%Times Interest Earn

22、ed 4.7x 4.1xBased on the above data, which of the following can the analyst conclude? A. Iridescent Carpeting has better short-term liquidity than its competitors. B. Iridescent Carpeting has stronger profitability than its competitors. C. Iridescent Carpeting has more financial risk than its compet

23、itors.（分数：1.00）A.B.C.13.Which of the following statements regarding long-term forecasts of cash flows is most accurate? Long-term cash flow forecasts are: A. constructed from recent daily and weekly cash flows. B. are usually more accurate than short term cash flow forecasts. C. based on pro-forma b

24、alance sheet projections for future years.（分数：1.00）A.B.C.14.The company has a target capital structure of 40 percent debt and 60 percent equity. Bonds pay 10 percent coupon (semi-annual payout ), mature in 20 years, and sell for $849.54.The company stock beta is 1.2.Risk-free rate is 10 percent, and

25、 market risk premium is 5 percent.The company is a constant growth firm that just paid a dividend of $2.00, sells for $27.00 per share, and has a growth rate of 8 percent.The companys marginal tax rate is 40 percent.The after-tax cost of debt is: A. 8.0%. B. 9.1%. C. 7.2%.（分数：1.00）A.B.C.15.Which of

26、the following statements regarding corporate governance practices is FALSE? A. Corporate governance is the system of internal controls/procedures by which firms are managed. B. Corporate governance provides a framework that defines rights of management and the board. C. Corporate governance is not a

27、s important for firms with largely dispersed minority shareholders.（分数：1.00）A.B.C.16.A board of directors is most likely to protect the shareholders interests when: A. the board requires that management attend all meetings. B. the board includes representatives from the firms key customers and suppl

28、iers. C. one individual can be identified as the leading board member from outside the firm.（分数：1.00）A.B.C.17.A company has the following data associated with it:A target capital structure of 10% preferred stock, 50% common equity and 40% debt.Outstanding 20-year annual pay 6% coupon bonds selling f

29、or $894.Common stock selling for $45 per share that is expected to grow at 8% and expected to pay a $2 dividend one year from today.Their $100 par preferred stock currently sells for $90 and is earning 5%.The companys tax rate is 40%.What is the after tax cost of debt capital and after tax cost of p

30、referred stock capital?Debt Capital Preferred Stock CapitalA. 4.2% 6.3%B. 4.5% 5.6%C. 4.2% 5.6% A. B. C. （分数：1.00）A.B.C.18.When calculating the weighted average cost of capital (WACC) an adjustment is made for taxes because : A. equity is risky. B. preferred stock is used. C. the interest on debt is

31、 tax deductible.（分数：1.00）A.B.C.19.Which of the following statements about the discounted payback period is FALSE? The discounted payback : A. period is generally shorter than the regular payback. B. frequently ignores terminal values. C. period is the time it takes for the present value of the proje

32、ct cash inflows to equal the cost of the investment.（分数：1.00）A.B.C.20.Which of the following projects would have multiple internal rates of return (IRRs)? The cost of capital for all projects is 9.75 percent. Cash Flows Blackjack Roulette KenoT0 -10000 -12000 -8000T1 10000 7000 4000T2 15000 2000 0T3

33、 -10000 2000 6000 A. Projects Roulette and Keno. B. Project Blackjack only. C. Project Keno only.（分数：1.00）A.B.C.21.Jeffery Marian, an analyst with Arlington Machinery, is estimating a country risk premium to include in his estimate of the cost of equity for a project Arlington is starting in India.

34、Marian has compiled the following information for his analysis:Indian 10-year government bond yield=7.20%.10-year U. S. Treasury bond yield =4.60%.Annualized standard deviation of the Bombay Sen stock index =40%.Annualized standard deviation of Indian dollar denominated 10-year government bond=24%.A

35、nnualized standard deviation of the S&P 500 Index = 18%.The estimated country risk premium for India based on Marians research is closest to: A. 5.8%. B. 2.6%. C. 4.3%.（分数：1.00）A.B.C.22.Stolzenbach Technologies has a target capital structure of 60 percent equity and 40 percent debt. The schedule of

36、financing costs for the Stolzenbach is shown in the table below: UAmount of New Debt (in millions)/UUAfter-tax Cost of Debt/UUAmount of New Equity (in millions)/UUCost of Equity/U$0 to $199 4.5 percent $0 to $299 7.5 percent$200 to $399 5.0 percent $300 to $699 8.5 percent$400 to $599 5.5 percent $7

37、00 to $999 9.5 percentStolzenbach Technologies has breakpoints for raising additional financing at both: A. $500 million and $1000 million. B. $400 million and $700 million. C. $500 million and $700 million.（分数：1.00）A.B.C.23.A large, creditworthy manufacturing firm would most likely get short-term f

38、inancing by: A. factoring its receivables. B. issuing commercial paper. C. entering into an agreement for a committed line of credit.（分数：1.00）A.B.C.24.Cullen Casket Company is considering a project that requires a $175000 cash outlay and is expected to produce cash flows of $65000 per year for the n

39、ext four years. Cullens tax rate is 40 percent and the before-tax cost of debt is 9 percent. The current share price for Cullen stock is $32 per share and the expected dividend next year is $1.50 per share. Cullens expected growth rate is 5 percent. Cullen finances the project with 70 percent newly

40、issued equity and 30 percent debt, and the flotation costs for equity are 4.5 percent. What is the dollar amount of the flotation costs attributable to the project, and that is the NPV for the project, assuming that flotation costs are accounted for correctly?Dollar amountof floatation costs NPV of

41、projectA. $5513 $30510B. $5513 $32872C. $7875 $32872 A. B. C. （分数：1.00）A.B.C.25.A firm is choosing among three short-term investment securities:Security 1 - A 30 - day U. S. Treasury bill with a discount yield of 3.6%.Security 2 - A 30 - day bankers acceptance selling at 99.65% of face value.Securit

42、y 3 - A 30 - day time deposit with a bond equivalent yield of 3.65%.Based only on these securities yields, the firm would: A. prefer the bankers acceptance. B. prefer the time deposit. C. prefer the U. S. Treasury bill.（分数：1.00）A.B.C.26.Ratio 2003 2004Net profit margin 0.15 0.18Total asset turnover

43、1.60 1.75Financial leverage multiplier1.00 1.50The return on equity (ROE) for 2003 and 2004 respectively is : A. 8% and 24%. B. 24% and 47%. C. 24% and 8%.（分数：1.00）A.B.C.27.A critical corporate governance issue is ensuring that the board and its members have the requisite experienced needed to prope

44、rly govern the firm for the shareholders benefit. When considering board member qualifications, investors and shareholders should consider whether board members can act with care and competence as a result of their experience with all of the following EXCEPT : A. technologies, products, services whi

45、ch the firm offers. B. the competitive landscape the firm faces. C. strategies and planning.（分数：1.00）A.B.C.28.Which of the following statements about NPV and IRR is FALSE? A. The NPV method assumes that all cash flows are reinvested at the cost of capital. B. For independent projects if the IRR is t

46、he cost of capital accept the project. C. For mutually exclusive projects you should use the IRR to rank and select projects.（分数：1.00）A.B.C.29.Which of the following ratios is NOT part of the original DuPont system? A. Debt to total capital. B. Asset turnover. C. Equity multiplier.（分数：1.00）A.B.C.30.

47、Which of the following statements about the cost of capital is TRUE? A. Ideally, historical measures of the component costs from prior financing should be used in estimating the appropriate weighted average cost of capital. B. The cost of issuing new equity could possibly be lower than the cost of r

48、etained earnings if the market risk premium and risk-free rate decline by a substantial amount. C. In the weighted average cost of capital calculation, the cost of preferred stock must be adjusted for the cost to issue new preferred stock.（分数：1.00）A.B.C.31.In preparing a cash flow forecast, a firm is likely to employ a minimum acceptable cash balance: A. of zero. B. that includes a component for opportunities that may arise. C. equal to the amount necessary to pay projected payables, interest, taxes, and day-to-day expenses.（分数：1.00）A.B.C.32.The NPV profile is a graphical representatio