财务管理试卷及答案(英文版)

1、Examination Problems for Fundamentals of Financial Management2004-2005 (Paper B)I. Multiple Choice (20 points) (Please wiite your answer in the following table)题 号134567891011121314151617181920选 项1 () is concerned with the acquisition, financing, and management of assets vzith someoverall goal in mi

2、ndA. Financial management B Profit maximization C. Agency tlieory D Social responsibility2 A major disadvantage of the coiporate fonn of organization is tlie ().A. double taxation of dividendsB inability of the firm to raise large sums of additional capitalC limited liability of shareholdersD. lumte

3、d life of the corporate foim3 Interest paid (eamed) on botli the ongmal principal borrowed (lent) and previous interest earnedis often refeired to as ().A present value B sunple interest C future value D. compound interest4 If tlie intrinsic value of a share of common stock is less than its market v

4、alue, v/hich of the following is the most reasonable conclusionA The stock has a low level of riskB The stock offers a high dividend payout ratio.C. The maiket is undervaluing the stockD The market is oveivaluing the stock5 A 250 face value share of preferred stock, pays a 20 annual dividend and inv

5、estors require a 7% return on this investment If the secunty is cuirently selling for 276, what is the difference (oveivaluation) between its intrinsic and market value (rounded to the nearest whole dollar)?A. approximately 26 B approximately 10 C. approximately 6 D approximately 16 Felton Farm Supp

6、lies, Inc , has an 8 percent return on total assets of 300,000 and a net profit margin of 5 percent What are its sales?A 3,750,000 B. 480,000 C. 300,000 D 1,500,0007 A conpany can unprove (lower) its debt-to-total asset ratio by doing which of the following?A Bonow more. B Shift short-term to long-t

7、erm debt C Shift long-term to short-term debtD. isssue common stock8 The DuPont Approach breaks down the earning power on shareholders book value (ROE) asfollows ROE = ().A Net profit margin * Total asset turnover * Equity mulfapherB Total asset turnover x Gross profit margin x Debt ratioC. Total as

8、set turnover x Net profit marginD Total asset turnover x Gross profit margin x Equity multiplier9 Which of the follov/ing items concerns financing decision?()A. sales forecasting B bond issuing C receivables collection D investment project selection10 Which of the following items is the function of

9、a treasured ()A. cost accounting B. internal control C. capital budgeting D general ledger11 For financial instruments. () is judged in relation to the ability to sell a significant volumeof securities in a short penod of time witliout significant price concession.A iratunty B marketability C defaul

10、t D. inflation12 () is the value at some future time of a present amount of money, or a senes of payments,evaluated at a given interest rateA. futuie value B present value C intrinsic value D market value13 Ellesmere Coiporation issues 1 million $1 par value bonds The stated interest rate is 6% pery

11、ear and the interest is paid twice a year What is the real interest rate of the bond。()A. 6% B 3% C 12% D (l+6%/2)2. In general, the higlier the marketability of a secunty, tlie greater the yield necessaiy to attract investors () Discount Rate is the interest rate used to convert future values to pr

12、esent values () The expected return of a portfolio is simply a weighted average of the expected return of tliesecurities comprising tliat poitfolio () The type of analysis varies according to the specific interests of the party involved () In a sole propnetorship, the owner is personally responsible

13、 for all financial obligations of the-l14 Assume that dividends of a common stock will be maintained at D forever, and tlie requiredreturn of the stockholder is r, the par value of the stock is m, the value of the stock is ()A m B m+D C. m+D/r D D/r15. Which of the following items has the most risk?

14、()A treasury bill B corporate bond C prefeired stock D. common stock16 () equals the gross profit divided by net sales of a firmA. gross profit margin B net profit margin C. return on investment D return on equity17 (A ) is the ratios tliat measure a firrrf s ability to meet shoit-tenn obligationsA.

15、 liquidity ratios B leverage ratios c coverage ratios D. activity ratios18 ( A ) is the result of Net Profit Margin x total asset turnover x (total assets/shareholdeis Until around the first half of the 1900s, financial managers primarily raised Rinds and managed theu* firms cash posihons.() equity)

16、A Return on equity B. return on investment C. current ratio D. quick ratio19. Goveiiinient tax law adjushnent is ( A ) to a firmA. general economic risk B inflation and deflation nsk C firm-specific nskD international nsk20 ( A ) equals the gross profit divided by net sales of a firmA. gross profit

17、margin B. net profit margin C. return on investment D. return on equityII. Statement judgement (10 Points) (Please write your answer in the following table)题号12345678910J或Xfirm ()7 When a stock goes ex-nghts, * its market price tlieoretically declmes ()8 The maricet price of a particular bond is muc

18、h greater today than it was yesterday Thecalculated yield to matu门ty (YTM) based on todays maitet pace would, therefore, be greater than the calculated YTM based on yesterdays market pnce ()9 A shoit average collection period assures us tliat accounts receivable are being efficientlymanaged ()10 Sin

19、ple interest is interest that is paid on only the original amount borrowed (lent)()III. Questions (10 points) (Please write your answer on the answer paper)1 The metliod of depreciation does not alter the total amount deducted fi*om income during the life of an asset What does it alter and why is th

20、at important? (5 )2. What is primary and secondaiy market? (5)IV. Pi oblcms (60 Points) (Please write your answer on the answer paper)1 you need to have $100000 at tlie end of 10 years To accumulate this sum, you have decided to save a ceitain amount at tlie end of each next 10 years and deposit it

21、in the bank The bank pays 8% interest compounded annually for long-tenn deposit How much will you have to save each ye护(PVIFCsio) 463, PVIFAioO 671, FVmXioA? 159. FVIFA(s%,io)=14 487)2 Just today, Bird Seed Companys common stock paid a $1.50 annual dividend per share and had a closing pnce of $24 As

22、sume that the markets required return for this investment is 12% and that dividends are expected to grow at a constant rate forevera calculate the inplied growth rate in dividends.b what is expected dividend yield and capital gains yield?3 The data for vanous companies in the same industry are as fo

23、llows: (amounts are in million dollars)CompanyABcDEFSales101587612Total assets8106459Net income3o4o33Net profit maiginTotal assets turnoverDetermine the total asset tumovei; net profit margin, and wnte your computation result in the table4 You expect to deposit the follow mg cash flov/s at the end o

24、f years 1 tlirough 5, 1,000, 4,000, 9,000, 5,000, and 2,000 respectively Alternatively, you could deposit a single amount today at the beginning of year 1 (end of year 0). How much is the single deposit needed to be today if you can earn 10% compounded annually? (10z)5 Stock A has an expected growth

25、 rate of 16% for the first 3 years and 8% thereafter Each share of stock just received an annual 3 24 dividend per share The appropnate discount rate is 15%.What is the value of the common stock under this scenano? (10z)6 The following common stocks are available for investment:COMMON STOCK (TICKER

26、SYMBOL) Nanyang Business Systems (MBS) Yunnan Garden Supply, Inc. (YUWHO) Eird Nest Soups Company (SLURP) Wacho comi (WACHO)Park City Cola Company (BURP)Oldies Records, Ltd. (SHABOOM)BETA1 40.80.601 801 05.90a If you invest 20 percent of your funds in each of the first four securities, and 10 peiren

27、t in each of the last two, what is the beta of your portfolio? (5,)b If the risk-free rate is 8 percent and the expected return on the market portfolio is 14 percent, what will be tlie portfolios expected return? (5Z)6Solutions (B)I. Multiple Clioice (20 points) (Please write your answer in the foll

28、owing table)题 号1034567891011121314151617181920选 项AADDBBDABcBADDDAAAAAn. Statement judgement (10 Points) (Please write your answer in the following Mble)题号12345678910J或XVXJ VJVJXXJIII. Questions (10 points) (Please wiite your answer on the answer paper)1. Depreciation changes tlie tuning of tax payme

29、nts The longer tliese payments can be delayed, the better off the business is2. Apnmary market is a “new issues market Here, funds raised tlirough the sale of new securities flow f?om ultimate savers to the ultnnate investors in real assetsIn a secondaiy market, existing securities are bought and so

30、ld Transactions in these already existing secunties do not provide additional funds to finance capital investmentIV Problems (60 Points) (Please wiite your answer on the answer paper)1. Answer:100000=A FVTIF&%,io)=14 487AA=100000/14 487=69032. Answer:a 24=1.5(l+g)/(0 12-g), g=0 054b dividend yield=0 12-g=0 066, capital gains yield=0 0543. Answer:CompanyABCDEFSales101587612Total assets8106459Net income3433Net profit margin030 1333050 28570 50 25Total assets turnover3 33337 5o3 5o44 1 (10z) Many different methods to lead to a correct solutionPV of tins mi