公司财务及答案解析.doc

《公司财务及答案解析.doc》由会员分享，可在线阅读，更多相关《公司财务及答案解析.doc（55页珍藏版）》请在麦多课文档分享上搜索。

1、公司财务及答案解析(总分：88.00，做题时间：90 分钟)一、B单项选择题/B(总题数：87，分数：88.00)1.An analyst has gathered the following data about a company with a 12 percent cost of capital: Project A Project BCost $15000 $25000Life 5 years 5 yearsCash inflows $5000/year $7500/yearIf the projects are independent, what should the company

2、 do? A. Reject A, Reject B. B. Accept A, Reject B. C. Accept A, Accept B.（分数：1.00）A.B.C.2.When examining a firms ownership structure, it is imperative to examine any super-voting rights by certain classes of shareholders. Which of the following statements concerning these voting rights is TRUE? A. S

3、uper-voting rights by certain classes of shareholders impair the firms ability to raise capital for the future. B. Firms with a single class of common equity could encourage prospective acquirers to only deal directly with shareholders with the supermajority rights. C. Firms that combine voting righ

4、ts with economic rights have historically had more difficulty raising equity to invest in capital improvements.（分数：1.00）A.B.C.3.Which of the following statements regarding corporate governance practices is FALSE? A. Corporate governance is the system of internal controls/procedures by which firms ar

5、e managed. B. Corporate governance provides a framework that defines rights of management and the board. C. Corporate governance is not as important for firms with largely dispersed minority shareholders.（分数：1.00）A.B.C.4.Which of the following projects would have multiple internal rates of return (I

6、RRs)? The cost of capital for all projects is 9.75 percent.（分数：1.00）A.Cash FlowsB.BlackjackC.RouletteD.KenoE.T0F.-10000G.-12000H.-8000I.T1J.10000K.7000L.4000M.T2N.15000O.2000P.0Q.T3R.-10000S.2000T.60005.Which of the following statements about the payback period is FALSE? A. The payback period provid

7、es a rough measure of a project s liquidity and risk. B. The payback period is the number of years it takes to recover the original cost of the investment. C. The payback method considers all cash flows throughout the entire life of a project.（分数：1.00）A.B.C.6.The Chief Financial Officer of Large Clo

8、seouts Inc. (LCI) determines that the firm must engage in capital rationing for its capital budgeting projects. Which of the following describes the most likely reason for LCI to use capital rationing? LCI: A. has a limited amount of funds to invest. B. would like to arrange projects so that investi

9、ng in a project today provides the option to accept or reject certain future projects. C. must choose between projects that compete with one another.（分数：1.00）A.B.C.7.Enamel Manufacturing (EM) is considering investing in a new vehicle. EM finances new projects using retained earnings and bank loans.

10、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?（分数：1.00）A.A. After-tax cost of debt. B.B. Marginal cost of capital. C.C. Cost of preferred stock.8.In regards to shareholder-sponso

11、red resolutions, which of the following would NOT be something investors should look at and consider? A. Whether the firm requires a simple two-thirds or other supermajority vote for passing a shareholder resolution. B. Whether shareholders can request a special shareholder meeting to consider speci

12、fic issues. C. Whether national regulatory agencies have pressured firms to act on the terms of any approved shareowner initiatives.（分数：1.00）A.B.C.9.Helmut Humm, manager at a large U. S. firm, has just been assigned to the capital budgeting area to replace a person who left suddenly. One of Humms fi

13、rst 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 the corresponding capital

14、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%. The cost of debt is the af

15、ter-tax cost. If Humm guesses correctly, the WACC is:（分数：1.00）A.A. 9.2%. B.B. 11.0%. C.C. 9.0%.10.Which of the following statements about the role of the marginal cost of capital in determining the net present value of a project is most accurate? The marginal cost of capital should be used to discou

16、nt the cash flows: A. if the firms capital structure is expected to change during the projects life. B. of all projects the firm is considering. C. for potential projects that have a level of risk near that of the firms average project.（分数：1.00）A.B.C.11.A company is planning a $50 million expansion.

17、 The expansion is to be financed by selling $20 million in new debt and $30 million in new common stock. The before-tax required return on debt is 9 percent and 14 percent for equity. If the company is in the 40 percent tax bracket, what is the marginal weighted average cost of capital?（分数：1.00）A.A.

18、 10.6%. B.B. 9.0%. C.C. 10.0%.12.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 today that creates the opp

19、ortunity to invest in other projects in the future.（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

20、 cash flow forecasts. C. based on pro-forma balance sheet projections for future years.（分数：1.00）A.B.C.14.The process of evaluating and selecting profitable long-term investments consistent with the firms goal of shareholder wealth maximization is known as:（分数：1.00）A.A. capital budgeting. B.B. monito

21、ring. C.C. ratio analysis.15.Which of the following ratios is NOT part of the original DuPont system?（分数：1.00）A.A. Debt to total capital. B.B. Asset turnover. C.C. Equity multiplier.An analyst has gathered the following data about a company with a 12 percent cost of capital. Project A Project BIniti

22、al cost $15000 $20000Life 5years 4yearsCash inflows $5000/year $7500/year（分数：2.00）(1).If the projects are independent, the company should: A. accept both projects. B. accept project A and reject project B. C. reject project A and accept project B.（分数：1.00）A.B.C.(2).If the projects are mutually exclu

23、sive, the company should: A. accept both projects. B. accept A and reject B. C. reject A and accept B.（分数：1.00）A.B.C.16.A company is considering a $10000 project that will last 5 years. Annual after tax cash flows are expected to be $3000 Target debt/equity ratio is 0.4 Cost of equity is 12% Cost of

24、 debt is 6% Tax rate 34% What is the projects net present value (NPV) ?（分数：1.00）A.A. + $1460. B.B. + $1245 C.C.$0.17.If the companys net profit margin declines to 0.10 in 2005, what total asset turnover would be needed in order to maintain the same ROE as in 2004, assuming there is no change in the

25、financial leverage multiplier?（分数：1.00）A.A. 2.50. B.B. 1.50. C.C. 3.15.18.A large, creditworthy manufacturing firm would most likely get short-term financing 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.19.

26、When the return on equity equation (ROE) is decomposed using the original DuPont system, what three ratios comprise the components of ROE? A. Gross profit margin, asset turnover, equity multiplier. B. Net profit margin, asset turnover, asset multiplier. C. Net profit margin, asset turnover, equity m

27、ultiplier.（分数：1.00）A.B.C.20.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 :（分数：1.00）A.A. 15.6%. B.B. 16.2%. C.C. 19.1%.21.A bankers acceptance that is pric

28、ed at $99145 and matures in 72 days at $100000 has a (n): A. money market yield greater than its discount yield. B. discount yield greater than its bond equivalent yield. C. money market yield greater than its bond equivalent yield.（分数：1.00）A.B.C.22.Which of the following firms is most likely to hav

29、e a board of directors that considers the best interest of all shareholders? A. Firms that assign a single vote to each share, but not firms with different classes of common equity with supermajority rights given to one class. B. Firms that assign a single vote to each share, and firms with differen

30、t classes of common equity with supermajority rights given to one class. C. Firms with different classes of common equity with supermajority rights given to one class, but not firms that assign a single vote to each share.（分数：1.00）A.B.C.23.The company has a target capital structure of 40 percent deb

31、t 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 market risk premium is 5 percent. The company is a constant growth firm that just paid a dividend of $2.00, sells for

32、 $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:（分数：1.00）A.A. 8.0%. B.B. 9.1%. C.C. 7.2%.24.The following data is regarding the Link Company: A target debt/equity ratio of 0.5 Bonds are currently yielding 10% Link is

33、a constant growth firm that just paid a dividend of $3.00 Stock sells for $31.50 per share, and has a growth rate of 5% Marginal tax rate is 40% What is Links after-tax cost of capital?（分数：1.00）A.A. 12.0%. B.B. 12. 5%. C.C. 11.0%.25.A company has the following data associated with it: A target capit

34、al structure of 10% preferred stock, 50% common equity and 40% debt. Outstanding 20-year annual pay 6% coupon bonds selling for $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

35、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 preferred stock capital? Debt Capital Preferred Stock Capital A. 4.2% 6.3% B. 4.5% 5.6% C. 4.2% 5.6%（分数：1.00）A.A. B.B. C.C. 26.The NPV profile is a graphical representation

36、 of the change in net present value relative to a change in the:（分数：1.00）A.A. prime rate. B.B. payback period. C.C. discount rate.27.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 ban

37、kers acceptance selling at 99.65% of face value. Security 3 - A 30 - day time deposit with a bond equivalent yield of 3.65%. Based only on these securities yields, the firm would:（分数：1.00）A.A. prefer the bankers acceptance. B.B. prefer the time deposit. C.C. prefer the U. S. Treasury bill.28.Which o

38、f 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 project cash inflows to equal the cost of the

39、investment.（分数：1.00）A.B.C.29.In a recent staff meeting, David Hurley, stated that analysts should understand that financial ratios mean little by themselves. He advised his colleagues to evaluate financial ratios carefully. During the discussion he made the following statements: Statement 1 : A comp

40、any can be compared with others in its industry by relating its financial ratios to industry norms. However, care must be taken because many ratios are industry-specific, but not all ratios are important to all industries. Statement 2: Comparing a company to the overall economy is useless because ov

41、erall business conditions are constantly changing. Specifically, it is not the ease that financial ratios tend to improve when the economy is strong and weaken during recessionary times. Are statements 1 and 2 as made by Hurley regarding financial ratio analysis correct? Statement 1 Statement 2 A. I

42、ncorrect Correct B. Incorrect Incorrect C. Correct Incorrect（分数：1.00）A.A. B.B. C.C. 30.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 c

43、ost of equity capital for Stolzenbachs investment in Mexico. Winfield 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 o

44、f Mexicos All Share Index stock index and the S NPV for Project A = 18024 - 15000 = 3024. Project B: N =5, PMT =7, 500, FV =0, I/Y = 12, CPT PV =27036; NPV for Project B = 27036 - 25000 = 2036. For independent projects the NPV decision rule is to accept all projects with a positive NPV. Therefore, a

45、ccept both projects.2.When examining a firms ownership structure, it is imperative to examine any super-voting rights by certain classes of shareholders. Which of the following statements concerning these voting rights is TRUE? A. Super-voting rights by certain classes of shareholders impair the fir

46、ms ability to raise capital for the future. B. Firms with a single class of common equity could encourage prospective acquirers to only deal directly with shareholders with the supermajority rights. C. Firms that combine voting rights with economic rights have historically had more difficulty raisin

47、g equity to invest in capital improvements.（分数：1.00）A. B.C.解析：Firms with dual classes of common equity could encourage prospective acquirers to only deal directly with shareholders with the supermajority rights. Firms that separate voting rights from economic rights have generally had more trouble r

48、aising equity to invest in capital improvements. If the firm has a significant minority ownership group, such as a founding family, use of cumulative voting to elect board members can favor specific interests at the expense of the interests of other shareholders.3.Which of the following statements r

49、egarding 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 as important for firms with largely dispersed minority shareholders.（分数：1.00）A.B.C. 解析：Good corporate governance practices are extremely important in the case of firms with largely dispersed minority shareholders. The other statements are correct.4.Which of the following projec