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企業(yè)理財(cái)選擇題題庫

MultipleChoiceQuestions:

Chapter1

CONTROLLER

c1.Thepersongenerallydirectlyresponsible

foroverseeingthetaxmanagement,costaccounting,financialaccounting,andinformationsystemfunctionsisthe:

treasurer.

director.

controller.

chairmanoftheboard.

chiefexecutiveofficer.

TREASURER

a2.Thepersongenerallydirectlyresponsibleforoverseeingthecashandcredit

functions,financialplanning,and

capitalexpendituresisthe:

treasurer.

director.

controller.

chairmanoftheboard.

chiefoperationsofficer.

CAPITALBUDGETING

3.Theprocessofplanningandmanagingafirm’slong-terminvestmentsiscalled:

workingcapitalmanagement.

financialdepreciation.

agencycostanalysis.

capitalbudgeting.

capitalstructure.

CAPITALSTRUCTURE

e4.Themixtureofdebtandequityusedbya

firmtofinanceitsoperationsiscalled:

workingcapitalmanagement.

financialdepreciation.

costanalysis.

capitalbudgeting.

capitalstructure.

WORKINGCAPITALMANAGEMENT

a5.Themanagementofafirm’sshort-termassetsandliabilitiesiscalled:

workingcapitalmanagement.

debtmanagement.

equitymanagement.

capitalbudgeting.

capitalstructure.

SOLEPROPRIETORSHIP

b6.Abusinessownedbyasingleindividualiscalleda:

corporation.

soleproprietorship.

generalpartnership.

limitedpartnership.

limitedliabilitycompany.

GENERALPARTNERSHIP

7.Abusinessformedbytwoormoreindividualswhoeachhaveunlimited

liabilityforbusinessdebtsiscalleda:

corporation.

soleproprietorship.

generalpartnership.

limitedpartnership.

limitedliabilitycompany.

CORPORATION

a9.Abusinesscreatedasadistinctlegal

entitycomposedofoneormoreindividualsorentitiesiscalleda:

corporation.

soleproprietorship.

generalpartnership.

limitedpartnership.

unlimitedliabilitycompany.

LIMITEDLIABILITYCOMPANY

a12.Abusinessentityoperatedandtaxedlike

apartnership,butwithlimitedliability

fortheowners,iscalleda:

limitedliabilitycompany.

generalpartnership.

limitedproprietorship.

soleproprietorship.

corporation.

FINANCIALMANAGEMENTGOAL

13.Theprimarygoaloffinancialmanagementisto:

maximizecurrentdividendspershareoftheexistingstock.

maximizethecurrentvaluepershareoftheexistingstock.

avoidfinancialdistress.

minimizeoperationalcostsandmaximizefirmefficiency.

maintainsteadygrowthinbothsalesandnetearnings.

CHAPTER4

DiscountedCashFlowValuation

ANNUITY

a1.Anannuitystreamofcashflowpaymentsisasetof:

levelcashflowsoccurringeachtimeperiodforafixedlengthoftime.

levelcashflowsoccurringeachtimeperiodforever.

increasingcashflowsoccurringeachtimeperiodforafixedlengthoftime.

increasingcashflowsoccurringeachtimeperiodforever.

arbitrarycashflowsoccurringeachtimeperiodfornomorethan10years.

ANNUITIESDUE

2.Annuitieswherethepaymentsoccurattheendofeachtimeperiodarecalled_____,

whereas_____refertoannuitystreams

withpaymentsoccurringatthebeginningofeachtimeperiod.

ordinaryannuities;earlyannuities

lateannuities;straightannuities

straightannuities;lateannuities

annuitiesdue;ordinaryannuities

ordinaryannuities;annuitiesdue

PERPETUITY

3.Anannuitystreamwherethepaymentsoccurforeveriscalleda(n):

annuitydue.

indemnity.

perpetuity.

amortizedcashflowstream.

amortizationtable.

STATEDINTERESTRATES

4.Theinterestrateexpressedintermsoftheinterestpaymentmadeeachperiodiscalledthe_____rate.

statedannualinterest

compoundannualinterest

effectiveannualinterest

periodicinterest

dailyinterest

EFFECTIVEANNUALRATE

c5.Theinterestrateexpressedasifitwerecompoundedonceperyeariscalledthe

_____rate.

statedinterest

compoundinterest

effectiveannual

periodicinterest

dailyinterest

ANNUALPERCENTAGERATE

b6.Theinterestratechargedperperiodmultipliedbythenumberofperiodsperyeariscalledthe_____rate.

effectiveannual

annualpercentage

periodicinterest

compoundinterest

dailyinterest

CHAPTER5

InterestRateandBondValuation

COUPON

1.Thestatedinterestpayment,indollars,madeonabondeachperiodiscalledthebond’s:

coupon.

facevalue.

maturity.

yieldtomaturity.

couponrate.

FACEVALUE

b2.Theprincipalamountofabondthatisrepaidattheendoftheloantermiscalledthebond’s:

coupon.

facevalue.

maturity.

yieldtomaturity.

couponrate.

MATURITY

c3.Thespecifieddateonwhichtheprincipalamountofabondisrepaidiscalledthebond’s:

coupon.

facevalue.

maturity.

yieldtomaturity.

couponrate.

YIELDTOMATURITY

d

4.

Therateofreturnrequiredbyinvestors

inthemarket

forowningabondis

called

the:

a.

coupon.

b.

facevalue.

c.

maturity.

d.

yieldtomaturity.

e.

couponrate.

COUPONRATE

e5.Theannualcouponofabonddividedbyits

facevalueiscalledthebond’s:

coupon.

facevalue.

maturity.

yieldtomaturity.

couponrate.

PARBONDS

6.Abondwithafacevalueof$1,000thatsellsfor$1,000inthemarketiscalleda_____bond.

parvalue

discount

premium

zerocoupon

floatingrate

DISCOUNTBONDS

7.Abondwithafacevalueof$1,000thatsellsforlessthan$1,000inthemarketiscalleda_____bond.

par

b.

discount

c

3.

Nextyear’sannualdividenddividedby

c.

premium

thecurrentstockpriceiscalledthe:

d.

zerocoupon

a.

yieldtomaturity.

e.

floatingrate

b.

totalyield.

PREMIUMBONDS

c.

dividendyield.

d.

capitalgainsyield.

c

8.

Abondwithafacevalueof$1,000that

e.

earningsyield.

sellsformorethan$1,000inthemarket

iscalleda_____bond.

CAPITALGAINSYIELD

a.

par

d

4.

Therateatwhichastock

’spriceis

b.

discount

expectedtoappreciate

(ordepreciate)is

c.

premium

calledthe_____yield.

d.

zerocoupon

a.

current

e.

floatingrate

CHAPTER6

b.

total

StockValuation

c.

dividend

GROWINGPERPETUITY

d.

capitalgains

e.

earnings

a

1.

Anassetcharacterized

bycashflowsthat

increaseataconstantrateforeveris

PREFERREDSTOCK

calleda:

d

5.

Aformofequitywhichreceives

a.

growingperpetuity.

preferentialtreatmentinthepaymentof

b.

growingannuity.

dividendsiscalled_____stock.

c.

commonannuity.

a.

dualclass

d.

perpetuitydue.

b.

cumulative

e.

preferredstock.

c.

deferred

DIVIDENDGROWTHMODEL

d.

preferred

e.

common

b

2.

Thestockvaluation

modelthat

determines

thecurrentstockpricebydividingthe

PREFERREDSTOCK

nextannualdividend

amountbytheexcess

e

6.

A_____isaformofequitysecuritythat

ofthediscountratelessthedividend

hasastatedliquidatingvalue.

growthrateiscalledthe_____model.

a.

bond

a.

zerogrowth

b.

debenture

b.

dividendgrowth

c.

proxy

c.

capitalpricing

d.

commonstock

d.

earningscapitalization

e.

preferredstock

e.

discounteddividend

Difficultylevel:Medium

COMMONSTOCK

DIVIDENDYIELD

e

7.

Aformofequitywhichreceivesno

CHAPTER10

preferentialtreatmentineitherthe

RiskandReturnLessonsfromMarketHistory

paymentofdividendsorinbankruptcy

distributionsiscalled_____stock.

RISKPREMIUM

a

1.

Theexcessreturnrequiredfromarisky

a.

dualclass

assetoverthatrequired

fromarisk-free

b.

cumulative

c.

deferred

assetiscalledthe:

a.

riskpremium.

d.

preferred

b.

geometricpremium.

e.

common

c.

excessreturn.

DIVIDENDS

d.

averagereturn.

c

12.

Paymentsmadebyacorporationtoits

e.

variance.

shareholders,intheformof

eithercash,

VARIANCE

stockorpaymentsinkind,arecalled:

a.

retainedearnings.

b

2.

Theaveragesquareddifferencebetween

theactualreturnandtheaveragereturn

b.

netincome.

iscalledthe:

c.

dividends.

a.

volatilityreturn.

d.

redistributions.

b.

variance.

e.

infusedequity.

c.

standarddeviation.

PRIMARYMARKET

d.

riskpremium.

e

13.

Themarketinwhichnewsecuritiesare

e.

excessreturn.

originally

soldtoinvestors

iscalledthe

_____market.

STANDARDDEVIATION

c

3.

Thestandarddeviation

forasetofstock

a.

dealer

returnscanbecalculatedasthe:

b.

auction

a.

positivesquarerootoftheaverage

c.

over-the-counter

return.

d.

secondary

b.

averagesquareddifferencebetweenthe

e.

primary

actualreturnandtheaveragereturn.

SECONDARYMARKET

c.

positivesquarerootofthevariance.

d

14.

Themarketinwhichpreviouslyissued

d.

averagereturndividedbyNminusone,

securitiesaretradedamonginvestorsis

whereNisthenumberofreturns.

calledthe_____market.

e.

variancesquared.

a.

dealer

GEOMETRICAVERAGERETURN

b.

auction

d

5.

Theaveragecompoundreturnearnedper

c.

over-the-counter

yearoveramulti-yearperiodiscalled

d.

secondary

the_____averagereturn.

e.

primary

a.

arithmetic

standard

variant

geometric

real

Difficultylevel:Medium

ARITHMETICAVERAGERETURN

a6.Thereturnearnedinanaverageyearover

amulti-yearperiodiscalledthe_____

averagereturn.

arithmetic

standard

variant

geometric

real

RISKPREMIUM

c7.Theexcessreturnyouearnbymovingfrom

arelativelyrisk-freeinvestmenttoa

riskyinvestmentiscalledthe:

a.geometricaveragereturn.

b.inflationpremium.

c.riskpremium.

d.timepremium.

e.arithmeticaveragereturn.

TOTALRETURN

e8.Thecapitalgainsyieldplusthedividendyieldonasecurityiscalledthe:

varianceofreturns.

geometricreturn.

averageperiodreturn.

currentyield.

totalreturn.

CHAPTER11

ReturnandRisk:TheCapitalAssetPricingModel

(CAPM)

PORTFOLIOS

a1.Aportfoliois:

a.agroupofassets,suchasstocksandbonds,

heldasacollectiveunitbyaninvestor.

theexpectedreturnonariskyasset.

theexpectedreturnonacollectionofriskyassets.

d.thevarianceofreturnsforariskyasset.

thestandarddeviationofreturnsforacollectionofriskyassets.

PORTFOLIOWEIGHTS

b2.Thepercentageofaportfolio’stotal

valueinvestedinaparticularassetis

calledthatasset’s:

portfolioreturn.

portfolioweight.

portfoliorisk.

rateofreturn.

investmentvalue.

SYSTEMATICRISK

c3.Riskthataffectsalargenumberofassets,

eachtoagreaterorlesserdegree,is

called_____risk.

a.idiosyncratic

b.diversifiable

c.systematic

d.asset-specific

e.total

UNSYSTEMATICRISK

4.Riskthataffectsatmostasmallnumberofassetsiscalled_____risk.

portfolio

undiversifiable

market

unsystematic

total

SYSTEMATICRISKPRINCIPLE

6.The_____tellsusthattheexpectedreturnonariskyassetdependsonlyonthatasset’snondiversifiablerisk.

EfficientMarketsHypothesis(EMH)

systematicriskprinciple

OpenMarketsTheorem

LawofOnePrice

principleofdiversification

BETACOEFFICIENT

a

7.

Theamountofsystematicriskpresentin

aparticular

riskyasset,relative

tothe

systematicriskpresentinanaverage

riskyasset,iscalledtheparticular

asset’s:

a.

betacoefficient.

b.

reward-to-riskratio.

c.

totalrisk.

d.

diversifiablerisk.

e.

Treynorindex.

SECURITYMARKETLINE

d

8.

Thelinearrelationbetweenanasset

’s

expectedreturnanditsbetacoefficient

isthe:

a.

reward-to-riskratio.

b.

portfolioweight.

c.

portfoliorisk.

d.

securitymarketline.

e.

marketriskpremium.

CHAPTER12

Risk,CostofCapital,andCapitalBudgeting

WACC

e1.Theweightedaverageofthefirm’scostsofequity,preferredstock,andaftertaxdebtis

the:

rewardtoriskratioforthefirm.

expectedcapitalgainsyieldforthe

stock.

c.expectedcapitalgainsyieldforthefirm.

portfoliobetaforthefirm.

weightedaveragecostofcapital(WACC).

CAPM

2.IftheCAPMisusedtoestimatethecostofequitycapital,theexpectedexcessmarketreturnisequaltothe

returnonthestockminustherisk-freerate.

differencebetweenthereturnonthemarketandtherisk-freerate.

betatimesthemarketriskpremium.

betatimestherisk-freerate.

marketrateofreturn.

CHARACTERISTICLINE

3.Thebestfitlineofpairwiseplotofthe

returnsofthesecurityagainstthemarketindexreturnsiscalledthe

SecurityMarketLine.

CapitalMarketLine.

characteristicline.

riskline.

Noneoftheabove.

CHAPTER14

CapitalStructure:BasicConcepts

MMPROPOSITIONI

b2.Thepropositionthatthevalueofthefirmisindependentofitscapitalstructureiscalled:

thecapitalassetpricingmodel.

MMPropositionI.

MMPropositionII.

thelawofoneprice.

theefficientmarketshypothesis.

MMPROPOSITIONII

c3.Thepropositionthatthecostofequityis

apositivelinearfunctionofcapitalstructureiscalled:

thecapitalassetpricingmodel.

MMPropositionI.

MMPropositionII.

thelawofoneprice.

theefficientmarketshypothesis.

Difficultylevel:Medium

INTERESTTAXSHIELD

4.Thetaxsavingsofthefirmderivedfromthedeductibilityofinterestexpenseis

calledthe:

interesttaxshield.

depreciablebasis.

financingumbrella.

currentyield.

tax-losscarryforwardsavings.

CAPITALSTRUCTUREDEFINITION

8.Thefirm'scapitalstructurerefersto

thewayafirminvestsitsassets.

theamountofcapitalinthefirm.

theamountofdividendsafirmpays.

d.themixofdebtandequityusedtofinancethefirm'sassets.

howmuchcashthefirmholds.

CHAPTER15

CapitalStructure:LimitstotheUseofDebt

DIRECTBANKRUPTCYCOSTS

1.Theexplicitcosts,suchasthelegalexpenses,associatedwithcorporatedefaultareclassifiedas_____costs.

flotation

betaconversion

directbankruptcy

indirectbankruptcy

unlevered

INDIRECTBANKRUPTCYCOSTS

c2.Thecostsofavoidingabankruptcyfilingbyafinanciallydistressedfirmareclassifiedas_____costs.

flotation

directbankruptcy

indirectbankruptcy

financialsolvency

capitalstructure

FINANCIALDISTRESSCOSTS

3.Theexplicitandimplicitcostsassociatedwithcorporatedefaultare

referredtoasthe_____costsofafirm.

flotation

defaultbeta

directbankruptcy

indirectbankruptcy

financialdistress

BANKRUPTCY

6.Thelegalproceedingforliquidatingorreorganizingafirmoperatingindefaultiscalleda:

tenderoffer.

bankruptcy.

merger.

takeover.

proxyfight.

ACCOUNTINGINSOLVENCY

d8.Afirmthathasnegativenetworthissaidtobe:

experiencingabusinessfailure.

inlegalbankruptcy.

experiencingtechnicalinsolvency.

experiencingaccountinginsolvency.

inChapter11bankruptcyreorganization.

CAPITALSTRUCTURE

d10.Thevalueofafirmismaximizedwhenthe:

costofequityismaximized.btaxrateiszero.

leveredcostofcapitalismaximized.

weightedaveragecostofcapitalis

minimized.

debt-equityratioisminimized.

CAPITALSTRUCTURE

11.Theoptimalcapitalstructurehasbeenachievedwhenthe:

debt-equityratioisequalto1.

weightofequityisequaltotheweightof

debt.

costofequityismaximizedgivena

pre-taxcostofdebt.

d.debt-equit