[財管] 期中模擬試題
I. Multiple choice problems (單選題)
What is the most common type of firm in the United States and the world? A)sole proprietorships B) limited partnerships C)corporations D) partnerships
How do the shareholders of most corporations exercise their control of that corporation? A)by providing oversight of the day to day running of the
corporation B)by electing members of a board of directors C)by voting on issues
that concern them D)by vetting the decisions of the board of directors
The time value of money concept can be defined as: A) the time in your life when
you receive an inheritance. B) the relationship between money spent versus money received. C) the relationship between a dollar to be received in the future and a dollar today. D) the relationship of interest rate stated and amount paid. E) none of the above.
Which of the following amounts is closest to the end value of investing $10,000 for 1.5 years at a stated annual interest rate of 12% compounded quarterly. A)
$11,800. B) $11,852. C) $11,941. D) $11,961. E) None of the above is within $100 of the correct answer.
Which of the following amounts is closest to the end value of investing $100,000 for 5 years at a effective annual interest rate of 12% compounded annually. A)$ 56,743. B)$172,000. C)$176,234. D)$182,212.
Which of the following amounts is closest to the present value of a financial instrument that pays a 5% coupon and has a face value of $10,000. The interest is paid semiannually and the face amount is returned at the end of two years. A)$ 9,000. B)$10,000. C)11,000. D)$12,000.
Companies can raise cash to finance their investment activities by: A) making dividend payments. B)selling or issuing financial instruments. C)buying back their financial instruments. D)not producing goods during the current quarter. E)none of the above.
Agin will receive an inheritance of $500,000 three years from now. Agin's personal discount rate corresponds to a 10% interest rate compounded semiannually. Which of the following values is closest to the amount that Agin should accept today for the right to his inheritance? (A)$ 373,108. (B)$ 375,657. (C)$ 665,500. (D) $ 670,048. (E). None of the above are even close.
What is the future value of a 7 percent 5-year annuity due that pays $300 each year? (A)420.76552, (B)1845.9872, (C)1500, (D)1800
A firm’s income statement includes the following entries. The firm’s average tax rate is 20%. What was EBIT? Cost of good sold: €20,000. Income taxes paid:3,000. Administrative expenses: 4,500. Interest expenses: 1,500. Depreciation: 1,500. A) €12,000, B) €16,500, C) €15,000, D) €42,500
Which of the following actions have positive impact on a firm’s cash balance? A) A firm buys back 1 million shares of stock from existing shareholders. B) A Japanese firm takes out ¥1,000 million bank loan and uses the cash to expand its factory. C) A firm sells some machinery to a bank and leases it back for a period of 20 years. D) A firm sells some goods from inventory. E) A firm uses excess cash to pay down account payable to its suppliers.
Suppose interest rates increase from 8 to 9 percent. Which bond will suffer the greater percentage decline in price: A) a 30-year bond paying annual coupons of 8 percent, B) a 30-year zero-coupon bond, C) a 1-year bond paying annual coupons of 8 percent, D) a 1-year zero-coupon bond.
Torrid Romance Publishers has total receivables of $3,000, which represents 20 days’ sales. Average total assets are $75,000. The firm’s operating profit margin is 5 percent. Find the firm’s ROA. A)0.73%, B)3.75%, C) 5%, D)3.65%
Home loans typically involve "points," which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $100,000 and 2 points are charged, the loan repayment schedule is calculated on a $100,000 loan but the net amount the borrower receives is only $98,000. What is the effective annual rate charged on such a loan assuming loan repayment occurs over 360 months? Assume the borrowing rate is 12%. A) 12%, B) 1.0227%, C)12.27%, D12.68%)
Lin’s Noodle Shop has a special dish that will be in vogue for 3 years at which point Lin will close up shop and liquidate the assets. As a result, forecast dividends are D1=$2, D2=$2.5, D3=$18. What is the stock price today if the discount rate is 12%? A)$22.5, B)$16.59, C)$110.55, D) information is not enough.
Abuze has issued preferred stock with a $9 annual dividend that will pay in perpetuity. If the discount rate is 12%, at what price should the preferred sell? A)$22.5, B)$16.59, C)$75, D) information is not enough
NYSE is a A)dealer market, B)broker market.
To value an asset, we need to know, A)size of future cash flows, B)time of future
cash flow, C)risk of future cash flow, D) all of the above, E) any of the above.
Who holds the option in a callable bond, A)issuer, B)investor, C)government,
D)the one who paid money.
The coupon rate on a convertible bond should be the coupon rate on a
pure bond. A)lower than, B) higher than, C) equally to, D) can not be decided.
When a firm has a constant growth dividend, the capital gain yield will: A) be
equal to the required rate of return, B) be equal to the dividend growth rate, C) be
larger than the required rate of return, D) depends on real numbers.
You buy an 8% coupon, 20-year maturity bond when its yield to maturity is 9%.
A year later, the yield to maturity is 10%. What is your rate of return over the
year? A)8%, B)10%, C)0.44%, D)0.40%
Suppose you buy a 1-year maturity bond for $1,000 that will pay you back $1,000
plus a coupon payment of $60 at the end of the year. What real rate of return will you earn if the inflation rate is 2%? (hint, ignore the Fisher effect.) A)3.92%, B)4%, C)1.92%, D)0%.
British government 4% perpetuities pay £4 interest each year forever. What is the value of 4% perpetuities if the long-term rate is 6%? A) £666.7, B) £66.67, C) £400, D) £4.
A couple thinking about retirement decide to put aside $3,000 each year in a saving account that earns 8% interest. In 5 years they will receive a gift of $10,000 that also can be invested. How much money will then have accumulated 30 years from now? A) $339,849.63, B) $68,484.75, C) $408,334.38, D)$236,929.5.
You can buy property today for $3 million and sell it in 5 years for $4 million. (You earn no rental income on the property.) Is the property investment attractive to you? A)yes, B) no, C)can not be decided.
You take out a 30-year $100,000 mortgage loan with an APR of 7% and monthly payments. In 10 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan? A)$93,347, B)$66,666.7 C)$85,812.38, D)$100,000
A firm uses $1 million in cash to purchase inventories. What will happen to its current ratio and quick ratio? A)falls, falls, B)increases, increases, C)unchanged, falls, D)falls, unchanged.
Zhinan Tea company has a profit margin below the industry average, but its ROA equals the industry average. A) It is not possible. B) Because it has lower asset turnover. C) Because it has a higher asset turnover. D) Because it has a higher equity multiplier.
Can cash flow from operations be positive if net income is negative? Can it be negative if net income is positive? A)yes, yes, B)yes, no, C)no, yes, D)no, no.
Harrison Clothier’s stock currently sells for $20 a share. It just paid a dividend of $1.00 a share. The dividend is expected to grow at a constant rate of 6 percent a year. What stock price is expected 1 year from now? (A)$20, (B)$21.2, (C)$21, (D)$22.2
A firm’s income statement includes the following entries. The firm’s average tax rate is 20%. What was EBIT? Cost of good sold: €20,000. Income taxes paid:3,000. Administrative expenses: 4,500. Interest expenses: 1,500. Depreciation: 1,500. A) €12,000, B) €16,500, C) €15,000, D) €42,500
Aunt Clarisse has promised to leave you $60 a year starting next year and have it increase at 4% a year thereafter. The payments are expected to go on indefinitely. How much has Aunt Clarisse left you if your opportunity costs is 9%. A) $ 693.33. B)$1200.00. C)$1248.00. D)$ 666.67 E)None of the above
You are to receive $1500 forever from the federal government as the winner of the national fiscally prudent and awareness contest. The government also has provided you with the option of choosing $1700 over the next 30 years. Payments are to be received semi-annually and if the market rate of interest is 8% what is the value of the two options. A) $18,382; $10,323 B) $18,750; $19,230, C)$18,750; $19,138 D) $37,500; $29,396 E)$ 9,191; $18,853
A pure discount bond: A) has no face value. B)pays interest annually. C)pays interest semiannually. D)pays no coupon. E)none of the above.
If its yield to maturity is less than its coupon rate, a bond will sell at a _____, and increases in market interest rates will _____. A)discount, decrease this discount. B)discount, increase this discount. C)premium, decrease this premium. D)premium, increase this premium. E)none of the above.
A corporate bond with a face value of $1,000 matures in 2 years and has a 10% coupon paid at the end of each year. The current price of the bond is $950. What is the yield to maturity for this bond? A)7.69%. B)10.26%. C)10.52%. D)13.00%. E)13.16%.
Agency problem exists between:A). shareholders and bondholders, B) manager
and shareholders, C) managers and bondholders, D) all of the above.
Which one of the following statements concerning partnerships is correct? A).A
general partner has limited liability for the business debts. B).A limited partner actively participates in running the partnership on a daily basis. C). If one partner wishes to leave a general partnership a new partnership agreement is needed. D). A general partnership has an unlimited life while a limited partnership has a limited life.
The management of a firm’s short-term assets and liabilities is called: A). working capital management. B). debt management. C). equity
management. D). capital budgeting. E). capital structure.
II. Essay and calculation problems
1. Please define each of the following terms:
a. Limited liabilities b. agency problem c. Times interest earned
E). capital structure.
d. Return on equity (ROE) e. P/E ratio f. effective annual rate vs. annual percentage rate g. nominal interest rate vs. real interest rate h. the power of compounding i. risk premium j. convertible bonds k. Treasury Bills l. Constant-growth dividend discount model m. preferred stocks
3. Please use numerical examples to demonstrate a. the relation between market yield and bond prices. b. the relation between maturity and bond price. c. the impact of payment frequency on bond price. Payments frequency means some bonds will pay annually, some semi-annually, some monthly, some daily, etc.
5. Afen Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects growth of 25% per year for 5 years.
By then, other firms will have copycat technology, competition will drive down profit margin, and the sustainable growth rate will fall to 6%. The most recent annual dividend was $1 per share. a. What are the expected values of dividends next five years?
b. What is the expected stock price 5 years from now? The discount rate is 12%. c. What is the stock price today? d. Find the dividend yield. e. What will next year’s stock price be?
f. What is the expected rate of return on investors who buys the stock now and sells it in year 1?
Ans:
I. Multiple choice problems
1. A) The most common type of firm is sole proprietorships. 獨資企業是最多的企業形式。
2. B) 但我記得C小考時也給對。
3. C) 金錢的時間價值指的就是現在的錢跟未來的錢價值不同。
4. C) 10,000*(1+12/4%)^(1.5*4)=11940.523
5. C)
6. X
7. B)
8. A)
9. B)
10. B) 3000/20%+1500=16500
11. D)
12. B)
13. D)
14. C) 這題到底怎麼算？？？
15. B) 2/1.12+2.5/(1.12)^2+18/(1.12)^3=16.59
16. C) 9/0.12 = 75
17. B)
18. D)
19. A) 可贖回債券，公司有權利贖回債券
20. A) 可轉換債券，投資者有可轉成股票的權利，因此利率可低至零。
21. B) r=D1/Price+g
22. C) 假設face value=1000, (P1+80-P0)/P0=0.44%
23. B) 60/1000=6% 6-2=4
24. B) 4/0.06=66.666
25. C) 3000(1+i+i^2+...+i^29)+10000*(1.08)^25=408,334.38
26. C) 可能要比較吧...但這題問的是吸引不吸引你，還滿主觀的...
27. C) 先算出每月平均支付為665.3再算出十年後的mortgage是多少。
28. C) Current ratio = current assets/total liabilities,
Quick ratio = (Cash + short-term investments + A/R)/total liabilities
29. C) ROA = Net profit margin * Asset turnover
30. A) 折舊要加上去 稅要減去
https://wiki.mbalib.com/zh-tw/%E8%90%A5%E4%B8%9A%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F
31. B) 20=1.06/(r-g) , P1 = 1.06^2/(r-g)=1.06*20=21.2
32. B) 同10.
33. B) 60/1.09=55.04587, r=1.04/1.09 55.04587/(1-r)=1200
34. B) 每半年領750跟850 半年利率4% 折現得答案
35. D) pure discount bond就是zero coupon bond
36. C)
37. D) 100/(1+r)+1100/(1+r)^2=950, r=0.12997
38. D)
39. C)
有限合夥人
https://wiki.mbalib.com/zh-tw/%E6%9C%89%E9%99%90%E5%90%88%E4%BC%99%E4%BC%81%E4%B8%9A
普通合夥人
https://wiki.mbalib.com/wiki/%E6%99%AE%E9%80%9A%E5%90%88%E4%BC%99%E4%BA%BA
40. A)
II. Essay and calculation problems
5. a. Div 1~5: 1.25; 1.5625; 1.953125; 2.4414; 3.0518 b. P5=3.2349/(12%-6%)=53.915 c. P0=37.2 d. dividend yield=1.25/37.2=3.3% e. P1=40.9 f. R1=[(40.9-37.2)+1.25]/37.2=12.1%
