《公司理財》選擇題題庫

PAGEPAGE6公司理財選擇題題庫MultipleChoiceQuestions:CONTROLLER

Chapter1

GENERALPARTNERSHIPc7.Abusinessformedbytwoormoreindividualswhoeachhaveunlimitedliabilityforbusinessdebtsiscalleda:c 1. Thepersongenerallydirectlyresponsibleforoverseeingthetaxmanagement,costaccounting,financialaccounting,andinformationsystemfunctionsisthe:treasurer.director.controller.chairmanoftheboard.chiefexecutiveofficer.TREASURERa 2. Thepersongenerallydirectlyresponsibleforoverseeingthecashandcreditfunctions,financialplanning,andcapitalexpendituresthe:treasurer.director.controller.chairmanoftheboard.chiefoperationsofficer.CAPITALBUDGETING3. Theprocessofplanningandmanagingafirm’slong-terminvestmentsiscalled:workingcapitalmanagement.financialdepreciation.agencycostanalysis.capitalbudgeting.capitalstructure.CAPITALSTRUCTURECAPITALSTRUCTURE4. Themixtureofdebtandequityusedbyafirmfinanceitsoperationsiscalled:workingcapitalmanagement.financialdepreciation.costanalysis.capitalbudgeting.capitalstructure.WORKINGCAPITALMANAGEMENT5. Themanagementofafirm’sassetsandliabilitiesiscalled:workingcapitalmanagement.debtmanagement.equitymanagement.capitalbudgeting.capitalstructure.SOLEPROPRIETORSHIPSOLEPROPRIETORSHIP6. Abusinessownedbyasingleindividualcalleda:corporation.soleproprietorship.generalpartnership.limitedpartnership.limitedliabilitycompany.

corporation.soleproprietorship.generalpartnership.limitedpartnership.limitedliabilitycompany.CORPORATIONa 9. Abusinesscreatedasadistinctlegalentitycomposedofoneormoreindividualsorentitiesiscalleda:corporation.soleproprietorship.generalpartnership.limitedpartnership.unlimitedliabilitycompany.LIMITEDLIABILITYCOMPANY12. Abusinessentityoperatedandtaxedlikeapartnership,butwithlimitedliabilityforowners,iscalleda:limitedliabilitycompany.generalpartnership.limitedproprietorship.soleproprietorship.corporation.FINANCIALFINANCIALMANAGEMENTGOAL13. Theprimarygoaloffinancialmanagementisto:maximizecurrentdividendspershareofexistingstock.maximizethecurrentvaluepershareofexistingstock.avoidfinancialdistress.minimizeoperationalcostsandmaximizeefficiency.maintainsteadygrowthinbothsalesandearnings.CHAPTER4DiscountedCashFlowValuationANNUITYa 1. Anannuitystreamofcashflowpaymentsissetof:levelcashflowsoccurringeachtimeperiodforfixedlengthoftime.levelcashflowsoccurringeachtimeforever.increasingcashflowsoccurringeachtimeforafixedlengthoftime.increasingcashflowsoccurringeachtimeforever.arbitrarycashflowsoccurringeachtimefornomorethan10years.ANNUITIESDUEe 2.

Annuitieswherethepaymentsoccurattheofeachtimeperiodarecalled ,whereas

2.

Theprincipalamountofabondthatisrepaidattheendoftheloantermiscalledthebond’s: refertoannuitystreamswithpaymentsoccurringatthebeginningofeachtimeperiod.ordinaryannuities;earlyannuitieslateannuities;straightannuitiesstraightannuities;lateannuitiesannuitiesdue;ordinaryannuitiesordinaryannuities;annuitiesduePERPETUITY3. Anannuitystreamwherethepaymentsforeveriscalleda(n):annuitydue.indemnity.perpetuity.amortizedcashflowstream.amortizationtable.STATEDINTERESTRATESa 4. Theinterestrateexpressedintermsoftheinterestpaymentmadeeachperiodiscalled rate.statedannualinterestcompoundannualinteresteffectiveannualinterestperiodicinterestdailyinterestEFFECTIVEANNUALRATEEFFECTIVEANNUALRATEc 5. Theinterestrateexpressedasifitwerecompoundedonceperyeariscalledthe rate.statedinterestcompoundinteresteffectiveannualperiodicinterestdailyinterestANNUALPERCENTAGERATEb 6. Theinterestratechargedperperiodmultipliedbythenumberofperiodsperyeariscalledthe rate.effectiveannualannualpercentageperiodicinterestcompoundinterestdailyinterestCHAPTER5InterestRateandBondValuationCOUPONa 1. Thestatedinterestpayment,indollars,madeonabondeachperiodiscalledthebond’s:coupon.facevalue.maturity.yieldtomaturity.couponrate.FACEVALUE

coupon.facevalue.maturity.yieldtomaturity.couponrate.MATURITY3. Thespecifieddateonwhichtheprincipalamountofabondisrepaidiscalledthebond’s:coupon.facevalue.maturity.yieldtomaturity.couponrate.YIELDTOMATURITYYIELDTOMATURITY4. Therateofreturnrequiredbyinvestorsinmarketforowningabondiscalledthe:coupon.facevalue.maturity.yieldtomaturity.couponrate.COUPONRATE5. Theannualcouponofabonddividedbyitsfacevalueiscalledthebond’s:coupon.facevalue.maturity.yieldtomaturity.couponrate.PARBONDS6. Abondwithafacevalueof$1,000thatsellsfor$1,000inthemarketiscalleda bond.parvaluediscountpremiumzerocouponfloatingrateDISCOUNTBONDS7.Abondwithafacevalueof$1,000thatsellsforlessthan$1,000inthemarketiscalledabond.pardiscountpremiumzerocouponfloatingratePREMIUMBONDSPREMIUMBONDS8. Abondwithafacevalueof$1,000thatsellsformorethan$1,000inthemarketiscalleda bond.pardiscountpremiumzero

floatingrateCHAPTERStockValuation

e. preferredstockDifficultylevel: MediumCOMMONSTOCKe 7. AformofequitywhichreceivesnopreferentialGROWINGPERPETUITY1. Anassetcharacterizedbycashflowsthatincreaseataconstantrateforeveriscalledgrowingperpetuity.growingmonannuity.perpetuitydue.preferredstock.DIVIDENDGROWTHMODEL2.Thestockvaluationmodelthatdeterminesthecurrentstockpricebydividingthenextannualdividendamountbytheexcessofthediscountratelessthedividendgrowthrateiscalledthe model.zerogrowthdividendgrowthcapitalpricingearningscapitalizationdiscounteddividendDIVIDENDYIELD3. Nextyear’sannualdividenddividedbythecurrentstockpriceiscalledthe:yieldtomaturity.totalyield.dividendyield.capitalgainsyield.earningsyield.CAPITALGAINSYIELDCAPITALGAINSYIELD4. Therateatwhichastock’spriceisexpectedtoappreciate(ordepreciate)iscalledthe yield.currenttotaldividendcapitalgainsearningsPREFERREDSTOCK5. Aformofequitywhichreceivespreferentialtreatmentinthepaymentofdividendsis stock.dualclasscumulativedeferredpreferredcommonPREFERREDSTOCK6. A isaformofequitysecuritythathasastatedliquidatingvalue.bonddebentureproxycommonstock

treatmentineitherthepaymentofdividendsinbankruptcydistributionsiscalled stock.dualclasscumulativedeferredpreferredcommonDIVIDENDSc 12. Paymentsmadebyacorporationtoitsshareholders,intheformofeithercash,stockpaymentsinkind,arecalled:retainedincome.dividends.redistributions.infusedequity.PRIMARYMARKETe 13. Themarketinwhichnewsecuritiesareoriginallysoldtoinvestorsiscalledthe market.dealerauctionover-the-countersecondaryprimarySECONDARYMARKETd 14. Themarketinwhichpreviouslyissuedsecuritiesaretradedamonginvestorsiscalledthe market.dealerauctionover-the-countersecondaryprimaryCHAPTER10RiskandReturnLessonsfromMarketHistoryRISKPREMIUM1. Theexcessreturnrequiredfromariskyassetoverthatrequiredfromarisk-freeassetiscalledthe:riskpremium.geometricpremium.excessreturn.averagereturn.variance.VARIANCE2. Theaveragesquareddifferencebetweentheactualreturnandtheaveragereturniscalledvolatilityreturn.variance.standarddeviation.riskpremium.excessreturn.STANDARDDEVIATION3. Thestandarddeviationforasetofstockreturnscanbecalculatedasthe:positivesquarerootoftheaveragereturn.averagesquareddifferencebetweenthereturnandtheaveragereturn.positivesquarerootofthevariance.averagereturndividedbyNminusone,whereisthenumberofreturns.variancesquared.GEOMETRICAVERAGERETURN5. Theaveragecompoundreturnearnedperoveramulti-yearperiodiscalledthe averagereturn.arithmeticstandardvariantgeometricrealDifficultylevel: MediumARITHMETICAVERAGERETURNa 6. Thereturnearnedinanaverageyearoveramulti-yearperiodiscalledthe averagereturn.arithmeticstandardvariantgeometricrealRISKPREMIUMc 7. Theexcessreturnyouearnbymovingfromrelativelyrisk-freeinvestmenttoariskyinvestmentiscalledthe:geometricaveragereturn.inflationpremium.riskpremium.timepremium.arithmeticaveragereturn.TOTALRETURNe 8. Thecapitalgainsyieldplusthedividendonasecurityiscalledthe:varianceofreturns.geometricreturn.averageperiodreturn.currentyield.totalreturn.CHAPTER11ReturnandRisk:TheCapitalAssetPricingModel(CAPM)

theexpectedreturnonacollectionofassets.thevarianceofreturnsforariskyasset.thestandarddeviationofreturnsforacollectionofriskyassets.PORTFOLIOWEIGHTS2.Thepercentageofaportfolio’stotalinvestedinaparticularassetiscalledthatasset’s:portfolioreturn.portfolioweight.portfoliorisk.rateofreturn.investmentvalue.SYSTEMATICRISKSYSTEMATICRISK3. Riskthataffectsalargenumberofassets,eachtoagreaterorlesserdegree,iscalled idiosyncraticdiversifiablesystematicasset-specifictotalUNSYSTEMATICRISK4. Riskthataffectsatmostasmallnumberassetsiscalled risk.portfolioundiversifiablemarketunsystematictotalSYSTEMATICRISKPRINCIPLEb 6. The tellsusthattheexpectedreturnonariskyassetdependsonlyonthatasset’snondiversifiablerisk.EfficientMarketsHypothesis(EMH)systematicriskprincipleOpenMarketsTheoremLawofOnePriceprincipleofdiversificationBETACOEFFICIENTa 7. Theamountofsystematicriskpresentinaparticularriskyasset,relativetothesystematicriskpresentinanaverageriskyasset,iscalledtheparticularasset’s:betacoefficient.reward-to-riskratio.totalrisk.diversifiablerisk.Treynorindex.PORTFOLIOSa 1. Aportfoliois:agroupofassets,suchasstocksandbonds,asacollectiveunitbyaninvestor.theexpectedreturnonariskyasset.

SECURITYMARKETLINESECURITYMARKETLINEd 8. Thelinearrelationbetweenanasset’sexpectedreturnanditsbetacoefficientisthe:reward-to-riskratio.portfolioweight.portfoliorisk.securitymarketline.marketriskpremium.

CHAPTER12

financingumbrella.currentyield.tax-losscarryforwardsavings.WACC

Risk,CostofCapital,andCapitalBudgeting

CAPITALSTRUCTUREDEFINITION8. Thefirm'scapitalstructurereferstothewayafirminvestsitsassets.1. Theweightedaverageofthefirm’scostsofequity,preferredstock,andaftertaxdebtisthe:rewardtoriskratioforthefirm.expectedcapitalgainsyieldforthestock.expectedcapitalgainsyieldforthefirm.portfoliobetaforthefirm.weightedaveragecostofcapital(WACC).

theamountofcapitalinthefirm.theamountofdividendsafirmpays.themixofdebtandequityusedtofinancethefirm'sassets.howmuchcashthefirmholds.CHAPTER15CapitalStructure:LimitstotheUseofDebtCAPM2. IftheCAPMisusedtoestimatethecostequitycapital,theexpectedexcessmarketreturnisequaltothereturnonthestockminustherisk-freerate.differencebetweenthereturnonthemarkettherisk-freerate.betatimesthemarketriskpremium.betatimestherisk-freerate.marketrateofreturn.CHARACTERISTICLINE3. ThebestfitlineofpairwiseplotofthereturnsofthesecurityagainstthemarketindexreturnsiscalledtheSecurityMarketLine.CapitalMarketLine.characteristicline.riskline.Noneoftheabove.CHAPTER14CapitalStructure:BasicConceptsMMPROPOSITIONI2. Thepropositionthatthevalueofthefirmisindependentofitscapitalstructureiscalled:thecapitalassetpricingmodel.MMPropositionI.MMPropositionII.thelawofoneprice.theefficientmarketshypothesis.MMPROPOSITIONII3. Thepropositionthatthecostofequityisapositivelinearfunctionofcapitalstructurecalled:thecapitalassetpricingmodel.MMPropositionI.MMPropositionII.thelawofoneprice.theefficientmarketshypothesis.Difficultylevel: MediumINTERESTTAXSHIELDa 4. Thetaxsavingsofthefirmderivedfromthedeductibilityofinterestexpenseiscalledinteresttaxshield.depreciablebasis.

DIRECTBANKRUPTCYCOSTSc 1. Theexplicitcosts,suchasthelegalexpenses,associatedwithcorporatedefaultareclassifiedas costs.flotationbetaconversiondirectbankruptcyindirectbankruptcyunleveredINDIRECTBANKRUPTCYCOSTSc 2. Thecostsofavoidingabankruptcyfilingbyfinanciallydistressedfirmareclassifiedas costs.flotationdirectbankruptcyindirectbankruptcyfinancialsolvencycapitalstructureFINANCIALFINANCIALDISTRESSCOSTSe3.Theexplicitandimplicitcostsassociatedcorporatedefaultarereferredtoasthecostsofafirm.flotationdefaultbetadirectbankruptcyindirectbankruptcyfinancialdistressBANKRUPTCYb 6. Thelegalproceedingforliquidatingorreorganizingafirmoperatingindefaultiscalleda:tenderxyfight.ACCOUNTINGINSOLVENCYd 8. Afirmthathasnegativenetworthissaidtobe:experiencingabusinessfailure.inlegalbankruptcy.experiencingtechnicalinsolvency.experiencingaccountinginsolvency.inChapter11bankruptcyreorganization.CAPITALSTRUCTURE10. Thevalueofafirmismaximizedwhenthe:costofequityismaximized.b taxrateiszero.leveredcostofcapitalismaximized.weightedaveragecostofcapitalisminimized.debt-equityratioisminimized.CAPITALSTRUCTURE11. Theoptimalcapitalstructurehasbeenachievedwhenthe:debt-equityratioisequalto1.weightofequityisequaltotheweightofdebt.costofequityismaximizedgivenapre-taxofdebt.debt-equi