Đề cương Trắc nghiệm ôn tập | Đại học Ngoại Ngữ - Tin Học Thành Phố Hồ Chí Minh

1. A 2/10, net 30 credit policy:
a. is an inexpensive means of reducing the seller's collection period if every customer takes the discount.
b. is an expensive form of short-term credit if a buyer foregoes the discount.
c. tends to have little effect on the
d. seller's collection period. provides cheap financing to the buyer for 30 days.
2. A cash discount of 2/5, net 30:
a. a. charges a higher price to a cash customer than to a customer who pays in 2 days.
b. grants customers 30 days to pay after the discount period expires.
c. offers customers a maximum of 30 days credit.
d. grants free credit for a period of 30 days.
3. A firm's cost of capital:
a. depends upon how the funds raised are going to be spent.
b. should be applied as the discount rate for any project considered by the firm.
c. for a specific project is primarily dependent upon the source of the funds used for the project.
d. is independent of the firm's capital structure.
e. will decrease as the risk level of the firm increases.
4. A firm's overall cost of equity is:
a. generally less than the firm's aftertax cost of debt.
b. unaffected by changes in the market risk premium.
c. is generally less that the firm's WACC given a leveraged firm.
d. highly dependent upon the growth rate and risk level of the firm.
e. inversely related to changes in the firm's tax rate.
5. A group of individuals got together and purchased all of the outstanding shares of common
stock of DL Smith, Inc. What is the return that these individuals require on this investments called? a. dividend yield b. cost of capital c. income return d. capital gains yield e. cost of equity
6. A news flash just appeared that caused about a dozen stocks to suddendly drop in value by
about 20 percent. What type of risk does this news flash represent? a. market b. unsystematic c. nondiversifiable d. portfolio e. total
7. ABC reduced its taxes last year by $350 by increasing its interesr expense by $1,000. Which
of the following terms is used to describe this tax saving? a. current tax yield c. finacing shield b. interest credit d. interest tax shield
8. All else constant, which one of the following will increase a firm’s cost of equity if the firm
computes that cost using the security market line approach? Assume the firm currently
pays an annual dividend of $1 a share and has a beta of 1.2.
a. a reduction in the firm’s beta
b. a reduction in the dividend amount
c. a reduction in the risk-free rate
d. a reduction in the market rate of return
e. an increase in the dividend amount
9. An analysis of the change in a project’s NPV when a single variable is changed is called ______ analysis. a. forecasting b. break-even c. simulation d. scenario e. sensitivity
10. Bell Weather Goods has several proposed independent projects that have positive NPVs.
However, the firm cannot initiate any of the projects due to a lack of financing. This
situation if referred to as: a. project rejection b. marginal rationing c. financial rejection d. soft rationing e. capital rationing
11. By definition, which one of the following must equal zero at the accounting break-even point?
a. internal rate of return b. operating cash flow c. net income d. net present value e. contribution margin
12. By definition, which one of the following must equal zero at the cash break-even point?
a. internal rate of return b. contribution margin c. net income d. operating cash flow e. net present value
13. Cash management primarily involves:
a. determining the optimal level of liquidity a firm should maintain.
b. optimizing a firm’s collection and disbursements of cash.
c. reconciling a firm’s book balance with its bank balance.
d. maximizing the income a firm earns on its cash reserves. 14. Fixed costs:
a. are defined as the change in total costs when one more unit of output is produced.
b. can be ignored in scenario analysis since they are constant over the life of a project.
c. are subtracted from sales to compute the contribution margin.
d. change as a small quantity of output produced changes.
e. are constant over the short-run regardless of the quantity of output produced.
15. Float refers to the following:
a. The quantity of cash that a company currently possesses.
b. The immediate cash that a company can withdraw from its bank account.
c. The difference between the cash recorded in the company’s books and the actual cash held in the bank.
d. The alteration in a company’s cash balance from one accounting period to another.
16. If a stock portfolio is well diversified, then the portfolio variance:
a. must be equal to or greater than the variance of the least risky stock in the portfolio.
b. will equal the variance of the most volatile stock in the portfolio.
c. may be less than the variance of the least risky stock in the portfolio.
d. will be an arithmetic average of the variances of the individual securities in the portfolio.
e. will be a weighted average of the variances of the individual securities in the portfolio.
17. Incorporating flotation costs into the analysis of a project will:
a. have no effect on the present value of the project.
b. increase the project's rate of return.
c. cause the project to be improperly evaluated.
d. increase the initial cash outflow of the project.
e. increase the net present value of the project.
18. Operating leverage is the degree of dependence a firm places on its: a. variable costs. b. net working capital. c. sales.
d. operating cash flows. e. fixed costs.
19. PC Enterprises wants to commence a new project but is unable to obtain the financing
under any circumstances. This firm is facing:
a. financial allocation. b. marginal rationing. c. financial deferral. d. capital allocation. e. hard rationing.
20. Scenario analysis is defined as the:
a. isolation of the effect that a single variable has on the NPV of a project.
b. determination of the initial cash outlay required to implement a project.
c. separation of a project's sunk costs from its opportunity costs.
d. determination of changes in NPV estimates when what-if questions are posed.
21. Sensitivity analysis is based on:
a. varying a single variable and measuring the resulting change in the NPV of a project.
b. the best, worst, and most expected situations.
c. capplying differing discount rates to a project's cash flows and measuring the effect on the NPV.
d. various states of the economy and the probability of each state occurring.
e. expanding and contracting the number of years for a project to determine the optimal project length.
22. Standard deviation measures which type of risk? a. unsystematic b. nondiversifiable c. total d. systematic e. economic
23. Steve has invested in twelve different stocks that have a combined value todayof $121,300.
Fifteen percent of that total is invested in Wise Man Foods. The 15 percent is a measure of
which one of the following? a. price-earnings ratio b. portfolio return c. portfolio weight d. index value e. degree of risk
24. Suzie owns five di"erent bonds valued at $36,000 and twelve different stocksvalued at
$82,500 total. Which one of the following terms most applies to Suzie's investments? a. collection b. portfolio c. risk-free d. grouping e. index
25. The aftertax cost of debt:
a. is unaffected by changes in the market rate of interest.
b. varies inversely to changes in market interest rates.
c. will generally equal the cost of preferred if the tax rate is zero.
d. will generally exceed the cost of equity if the relevant tax rate is zero.
e. has a greater effect on a firm's cost of capital when the debt-equity ratio increases.
26. The average of a firm's cost of equity and aftertax cost of debt that is weighted based on
the firm's capital structure is called the: a. subjective cost of capital. b. structured cost of capital. c.
weighted average cost of capital. d. weighted capital gains rate. e. reward to risk ratio.
27. The capital structure weights used in computing the weighted average cost of capital:
a. are restricted to the firm's debt and common stock.
b. are computed using the book value of the long-term debt and the book value of equity.
c. are based on the book values of total debt and total equity.
d. are based on the market value of the firm's debt and equity securities.
e. remain constant over time unless the firm issues new securities.
28. The change in revenue that occurs when one more unit of output is sold is referred to as: a. scenario revenue. b. average revenue. c. total revenue. d. marginal revenue. e. erosion.
29. The change in variable costs that occurs when production is increased by one unit is referred to as the: a. total cost. b. scenario cost. c. marginal cost. d. average cost. e. net cost.
30. The contribution margin per unit is equal to the:
a. pre-tax profit per unit.
b. variable cost per unit minus the fixed cost per unit.
c. aftertax profit per unit.
d. sales price per unit minus the total costs per unit.
e. sales price per unit minus the variable cost per unit.
31. The cost of equity for a firm:
a. increases as the unsystematic risk of the firm increases.
b. equals the firm's pretax weighted average cost of capital.
c. tends to remain static for firms with increasing levels of risk.
d. ignores the firm's risks when that cost is based on the dividend growth model.
e. equals the risk-free rate plus the market risk premium.
32. The cost of preferred stock is computed the same as the: a. aftertax cost of debt. b. pre-tax cost of debt.
c. cost of an irregular growth common stock. d. return on an annuity.
e. return on a perpetuity.
33. The cost of preferred stock:
a. is independent of the stock's price.
b. decreases when tax rates increase.
c. is highly dependent on the dividend growth rate.
d. is equal to the yield to maturity.
e. is equal to the dividend yield.
34. The expected rate of return on a stock portfolio is a weighted average where the weights are based on the:
a. original amount invested in each stock.
b. market value of the investment in each stock.
c. number of shares owned of each stock.
d. market price per share of each stock.
e. cost per share of each stock held.
35. The expected risk premium on a stock is equal to the expected return on the stock minus the: a. variance. b. inflation rate. c. risk-free rate. d. standard deviation.
e. expected market rate of return.
36. The explicit costs, such as legal and administrative expenses, associated with corporate
default are classified as _____ costs. a. indirect bankruptcy b. flotation c. direct bankruptcy d. issue
37. The flotation cost for a firm is computed as:
a. the geometric average of the flotation costs associated with each form of financing.
b. the arithmetic average of the flotation costs of both debt and equity.
c. the weighted average of the flotation costs associated with each form of financing.
d. one-half of the flotation cost of debt plus one-half of the flotation cost of equity.
e. a weighted average based on the book values of the firm's debt and equity.
38. The market rate of return is 11 percent and the risk-free rate of return is 3 percent. Lexant
stock has 3 percent less systematic risk than the market and has an actual return of 12 percent. This stock: a. is underpriced.
b. will plot on the security market line.
c. will plot below the security market line.
d. will plot to the right of the overall market on a security market line graph. e. is correctly priced.
39. The pre-tax cost of debt:
a. is equivalent to the average current yield on all of a firm's outstanding bonds.
b. has to be estimated as it cannot be directly observed in the market.
c. is based on the original yield to maturity on the latest bonds issued by a firm.
d. is based on the current yield to maturity of the firm's outstanding bonds.
e. is equal to the coupon rate on the latest bonds issued by a firm.
40. The primary purpose of portfolio diversification is to: a. eliminate all risks.
b. eliminate systematic risk.
c. increase returns and risks.
d. lower both returns and risks.
e. eliminate asset-specific risk.
41. The procedure of allocating a fixed amount of funds for capital spending to each business unit is called: a. marginal spending. b. marginal rationing. c. hard rationing. d. soft rationing.
e. capital preservation.
42. The standard deviation of a portfolio:
a. is an arithmetic average of the standard deviations of the individual securities which comprise the portfolio.
b. must be equal to or greater than the lowest standard deviation of any single security held in the portfolio.
c. can never be less than the standard deviation of the most risky security in the portfolio.
d. is a weighted average of the standard deviations of the individual held in the portfolio.
e. can be less than the standard deviation of the least risky security in the portfolio.
43. The systematic risk of the market is measured by: a. a beta of 1.0. b. a beta of 0.0. c. a variance of 1.0.
d. a standard deviation of 1.0.
e. a standard deviation of 0.0.
44. The unlevered cost of capital refers to the cost of capital for a(n): a. private individual. b. all-equity firm. c. governmental entity. d. private entity.
45. The weighted average cost of capital for a wholesaler:
a. remains constant when the debt-equity ratio changes.
b. is unaffected by changes in corporate tax rates.
c. should be used as the required return when analyzing a potential acquisition of a retail outlet.
d. is equivalent to the aftertax cost of the firm's liabilities.
e. is the return investors require on the total assets of the firm.