第1題Whichoneofthefollowingisanagencycost?AacceptinganinvestmentopportunitythatwilladdvaluetothefirmBincreasingthequarterlydividendCinvestinginanewprojectthatcreatesfirmvalueDhiringoutsideaccountantstoauditthecompany'sfinancialstatementsEclosingadivisionofthefirmthatisoperatingataloss第2題Whyshouldfinancialmanagersstrivetomaximizethecurrentvaluepershareoftheexistingstock?AdoingsoguaranteesthecompanywillgrowinsizeatthemaximumpossiblerateBdoingsoincreasesemployeesalariesCbecausetheyhavebeenhiredtorepresenttheinterestsofthecurrentshareholdersDbecausethiswillincreasethecurrentdividendspershareEbecausemanagersoftenreceivesharesofstockaspartoftheircompensation第3題Whichoneofthefollowingbestillustratesthatthemanagementofafirmisadheringtothegoaloffinancialmanagement?AincreaseintheamountofthequarterlydividendBdecreaseintheperunitproductioncostsCincreaseinthenumberofsharesoutstandingDdecreaseinthenetworkingcapitalEincreaseinthemarketvaluepershare正確答案：E第4題Whichoneofthefollowingbeststatestheprimarygoaloffinancialmanagement?AmaximizecurrentdividendspershareBmaximizethecurrentvaluepershareCincreasecashflowandavoidfinancialdistressDminimizeoperationalcostswhilemaximizingfirmefficiencyEmaintainsteadygrowthwhileincreasingcurrentprofits第5題Whichofthefollowingareadvantagesofthecorporateformofbusinessownership?I.limitedliabilityforfirmdebtII.doubletaxationIII.abilitytoraisecapitalIV.unlimitedfirmlifeAIandIIonlyBIIIandIVonlyCI,III,andIVonlyDII,III,andIVonlyEI,II,III,andIV第6題Whichoneofthefollowingisacapitalstructuredecision?AdeterminingwhichoneoftwoprojectstoacceptBdetermininghowtoallocateinvestmentfundstomultipleprojectsCdeterminingtheamountoffundsneededtofinancecustomerpurchasesofanewproductDdetermininghowmuchdebtshouldbeassumedtofundaprojectEdetermininghowmuchinventorywillbeneededtosupportaproject第7題Whichoneofthefollowingisacapitalbudgetingdecision?AdetermininghowmanysharesofstocktoissueBdecidingwhetherornottopurchaseanewmachinefortheproductionlineCdecidinghowtorefinanceadebtissuethatismaturingDdetermininghowmuchinventorytokeeponhandEdetermininghowmuchmoneyshouldbekeptinthecheckingaccount第8題AstakeholderisAapersonwhoownssharesofstockB.C.D.E.BanypersonwhohasvotingrightsbasedonstockownershipofacorporationCapersonwhoinitiallyfoundedafirmandcurrentlyhasmanagementcontroloverthatfirmDacreditortowhomafirmcurrentlyowesmoneyEanypersonorentityotherthanastockholderorcreditorwhopotentiallyhasaclaimonthecashflowsofafirm正確答案：E第9題Whichoneofthefollowingtermsisdefinedasaconflictofinterestbetweenthecorporateshareholdersandthecorporatemanagers?AarticlesofincorporationBcorporatebreakdownCagencyproblemDbylawsElegalliability第10題Abusinesscreatedasadistinctlegalentityandtreatedasalegal"person"iscalleda:AcorporationBsoleproprietorshipCgeneralpartnershipDlimitedpartnershipEunlimitedliabilitycompany第1題DeeDee'sMarinaisobligatedtopayitscreditors6,400today.Thefirm′sassetshaveacurrentmarketvalueof5,900.Whatisthecurrentmarketvalueoftheshareholders'equity?A-600B-500C0D500E600第2題Atthebeginningoftheyear,thelong-termdebtofafirmwas72,918andtotaldebtwas138,407.Attheendoftheyear,long-termdebtwas68,219andtotaldebtwas145,838.Theinterestpaidwas$6,430.Whatistheamountofthecashflowtocreditors?A-18348B-1001C11129D13861E19172第3題NielsenAutoPartshadbeginningnetfixedassetsof218,470andendingnetfixedassetsof209,411.Duringtheyear,assetswithacombinedbookvalueof6,943weresold.Depreciationfortheyearwas42,822.Whatistheamountofnetcapitalspending?A33763B40706C58218D65161E67408第4題Afirmhascommonstockof6,200,paid?insurplusof9,100,totalliabilitiesof8,400,currentassetsof5,900,andfixedassetsof$21,200.Whatistheamountoftheshareholders'equity?A6900B15300C18700D23700E35500第5題Whichoneofthefollowingmustbetrueifafirmhadanegativecashflowfromassets?AThefirmborrowedmoney.BThefirmacquirednewfixedassets.CThefirmhadanetlossfortheperiod.DThefirmutilizedoutsidefunding.ENewlyissuedsharesofstockweresold.第6題Whichoneofthefollowingwillincreasethecashflowfromassets,allelseequal?AdecreaseincashflowtostockholdersBdecreaseinoperatingcashflowCincreaseinthechangeinnetworkingcapitalDdecreaseincashflowtocreditorsEdecreaseinnetcapitalspending正確答案：E第7題Shareholders'equity:Aincreasesinvalueanytimetotalassetsincreases.Bisequaltototalassetsplustotalliabilities.Cdecreaseswhenevernewsharesofstockareissued.Dincludeslong-termdebt,preferredstock,andcommonstock.Erepresentstheresidualvalueofafirm.正確答案：E第8題Whichoneofthefollowingstatementsrelatedtoliquidityiscorrect?ALiquidassetstendtoearnahighrateofreturn.BLiquidassetsarevaluabletoafirm.CLiquidassetsaredefinedasassetsthatcanbesoldquicklyregardlessofthepriceobtained.DInventoryismoreliquidthanaccountsreceivablebecauseinventoryistangible.EAnyassetthatcanbesoldwithinthenextyearisconsideredliquid.第9題Whichoneofthefollowingstatementsconcerningnetworkingcapitaliscorrect?ANetworkingcapitalincreaseswheninventoryispurchasedwithcash.BNetworkingcapitalmustbeapositivevalue.CTotalassetsmustincreaseifnetworkingcapitalincreases.DAdecreaseinthecashbalancemayormaynotdecreasenetworkingcapital.ENetworkingcapitalistheamountofcashafirmcurrentlyhasavailableforspending.第10題Cashflowtostockholdersisdefinedas:Athetotalamountofinterestanddividendspaidduringthepastyear.Bthechangeintotalequityoverthepastyear.Ccashflowfromassetsplusthecashflowtocreditors.Doperatingcashflowminusthecashflowtocreditors.Edividendpaymentslessnetnewequityraised.正確答案：EAchievementTest3第1題Afirmhas160,000sharesofstockoutstanding,salesof1.94million,netincomeof126,400,aprice-earningsratioof18.7,andabookvaluepershareof$7.92.Whatisthemarket-to-bookratio?

A1.87B1.84C2.23D2.45E2.57第2題ReliableCarshassalesof807,200,totalassetsof1,105,100,andaprofitmarginof9.68percent.Thefirmhasatotaldebtratioof78percent.Whatisthereturnonequity?

A13.09percentB16.67percentC17.68percentD28.56percentE32.14percent正確答案：E第3題Al'sSportStorehassalesof897,400,costsofgoodssoldof628,300,inventoryof208,400,andaccountsreceivableof74,100.Howmanydays,onaverage,doesittakethefirmtosellitsinventoryassumingthatallsalesareoncredit?

A74.19daysB84.76daysC121.07daysD138.46daysE151.21days第4題Afirmhastotaldebtof$4,850andadebt-equityratioof0.57.Whatisthevalueofthetotalassets?

A$6128.05B$7253.4C$9571.95D$11034E$13358.77正確答案：E第5題Afirmhastotalassetsof310,100andnetfixedassetsof168,500.Theaveragedailyoperatingcostsare$2,980.Whatisthevalueoftheintervalmeasure?

A31.47daysB47.52daysC56.22daysD68.05daysE104.62days第6題Afirmcurrentlyhas600indebtforevery1,000inequity.Assumethefirmusessomeofitscashtodecreaseitsdebtwhilemaintainingitscurrentequityandnetincome.Whichoneofthefollowingwilldecreaseasaresultofthisaction?

AequitymultiplierBtotalassetturnoverCprofitmarginDreturnonassetsEreturnonequity第7題Shareholdersprobablyhavethemostinterestinwhichoneofthefollowingsetsofratios?

AreturnonassetsandprofitmarginBlong-termdebtandtimesinterestearnedCprice-earningsanddebt-equityDmarket-to-bookandtimesinterestearnedEreturnonequityandprice-earnings正確答案：E第8題Tobin'sQrelatesthemarketvalueofafirm'sassetstowhichoneofthefollowing?

AinitialcostofcreatingthefirmBcurrentbookvalueofthefirmCaverageassetvalueofsimilarfirmsDaveragemarketvalueofsimilarfirmsEtoday'scosttoduplicatethoseassets正確答案：E第9題Ifafirmproducesatwelvepercentreturnonassetsandalsoatwelvepercentreturnonequity,thenthefirm:

Amayhaveshort-term,butnotlong-termdebt.Bisusingitsassetsasefficientlyaspossible.Chasnonetworkingcapital.Dhasadebt-equityratioof1.0.Ehasanequitymultiplierof1.0.正確答案：E第10題Dee'shasafixedassetturnoverrateof1.12andatotalassetturnoverrateof0.91.Sam'shasafixedassetturnoverrateof1.15andatotalassetturnoverrateof0.88.Bothcompanieshavesimilaroperations.Basedonthisinformation,Dee'smustbedoingwhichoneofthefollowing?AutilizingitsfixedassetsmoreefficientlythanSam'sButilizingitstotalassetsmoreefficientlythanSam'sCgenerating1insalesforevery1.12innetfixedassetsDgenerating1.12innetincomeforevery1innetfixedassetsEmaintainingthesamelevelofcurrentassetsasSam's第11題Thecashcoverageratiodirectlymeasurestheabilityofafirm'srevenuestomeetwhichoneofitsfollowingobligations?

ApaymenttosupplierBpaymenttoemployeeCpaymentofinteresttoalenderDpaymentofprincipletoalenderEpaymentofadividendtoashareholder第12題Ifafirmhasadebt-equityratioof1.0,thenitstotaldebtratiomustbewhichoneofthefollowing?

A0B0.5C1D1.5E2第13題Ratiosthatmeasureafirm'sfinancialleverageareknownas_____ratios.

AassetmanagementBlong-termsolvencyCshort-termsolvencyDprofitabilityEbookvalue第14題Afirmhasanintervalmeasureof48.Thismeansthatthefirmhassufficientliquidassetstodowhichoneofthefollowing?

Apayallofitsdebtsthatareduewithinthenext48hoursBpayallofitsdebtsthatareduewithinthenext48daysCcoveritsoperatingcostsforthenext48hoursDcoveritsoperatingcostsforthenext48daysEmeetthedemandsofitscustomersforthenext48hours第15題Asupplier,whorequirespaymentwithintendays,shouldbemostconcernedwithwhichoneofthefollowingratioswhengrantingcredit?

AcurrentBcashCdebt-equityDquickEtotaldebt第16題Anincreaseincurrentliabilitieswillhavewhichoneofthefollowingeffects,allelseheldconstant?Assumeallratioshavepositivevalues.AincreaseinthecashratioBincreaseinthenetworkingcapitaltototalassetsratioCdecreaseinthequickratioDdecreaseinthecashcoverageratioEincreaseinthecurrentratio第17題Whichofthefollowingratiosaremeasuresofafirm'sliquidity?I.cashcoverageratioII.intervalmeasureIII.debt-equityratioIV.quickratio

AIandIIIonlyBIIandIVonlyCI,III,andIVonlyDI,II,andIIIonlyEI,II,III,andIV第18題Theformulawhichbreaksdownthereturnonequityintothreecomponentpartsisreferredtoaswhichoneofthefollowing?

AequityequationBprofitabilitydeterminantCSICformulaDDuPontidentityEequityperformanceformula第19題Whichoneofthefollowingstandardizesitemsontheincomestatementandbalancesheetrelativetotheirvaluesasofachosenpointintime?AstatementofstandardizationBstatementofcashflowsCcommon-baseyearstatementDcommon-sizestatementEbasereconciliationstatement第20題Acommon-sizeincomestatementisanaccountingstatementthatexpressesallofafirm'sexpensesaspercentageof:

AtotalassetsBtotalequityCnetincomeDtaxableincomeEsales正確答案：EAchievementTest4第1題Youwanttobuyanewsportscarfor$55,000.Thecontractisintheformofa60-monthannuitydueata6percentAPR,compoundedmonthly.Whatwillyourmonthlypaymentbe?

A1047.9B1053.87C1058.01D1063.3E1072.11第2題Considerafirmwithacontracttosellanasset3yearsfromnowfor90,000.Theassetcosts71,000toproducetoday.Atwhatratewillthefirmjustbreakevenonthiscontract?

A7.87percentB8.01percentC8.23percentD8.57percentE8.90percent第3題ThePawnShoploansmoneyatanannualrateof23percentandcompoundsinterestweekly.Whatistheactualratebeingchargedontheseloans?A25.16percentB25.80percentC26.49percentD26.56percentE26.64percent第4題Yourcreditcardcompanychargesyou1.65percentinterestpermonth.Whatistheannualpercentagerateonyouraccount?A18.95percentB19.80percentC20.90percentD21.25percentE21.70percent第5題ThepreferredstockofCascohasa6.25percentdividendyield.Thestockiscurrentlypricedat$59.30pershare.Whatistheamountoftheannualdividend?

A3.3B3.35C3.4D3.71E3.9第6題Apreferredstockpaysanannualdividendof$3.20.Whatisoneshareofthisstockworthtodayiftherateofreturnis11.75percent?

A23.48B25C27.23D33.8E35.55第7題WickerImportsestablishedatrustfundthatprovides$90,000inscholarshipseachyearforneedystudents.Thetrustfundearnsafixed6percentrateofreturn.Howmuchmoneydidthefirmcontributetothefundassumingthatonlytheinterestincomeisdistributed?

A1150000B1200000C1333333D1500000E1600000第8題Anamortizedloan:

Arequirestheprincipalamounttoberepaidinevenincrementsoverthelifeoftheloan.Bmayhaveequalorincreasingamountsappliedtotheprincipalfromeachloanpayment.Crequiresthatallinterestberepaidonamonthlybasiswhiletheprincipalisrepaidattheendoftheloanterm.Drequiresthatallpaymentsbeequalinamountandincludebothprincipalandinterest.Erepaysboththeprincipalandtheinterestinonelumpsumattheendoftheloanterm.第9題Whichoneofthefollowingstatementsconcerninginterestratesiscorrect?ASaverswouldpreferannualcompoundingovermonthlycompounding.BTheeffectiveannualratedecreasesasthenumberofcompoundingperiodsperyearincreases.CTheeffectiveannualrateequalstheannualpercentageratewheninterestiscompoundedannually.DBorrowerswouldprefermonthlycompoundingoverannualcompounding.EForanypositiverateofinterest,theeffectiveannualratewillalwaysexceedtheannualpercentagerate.第10題Youarecomparingtwoinvestmentoptionsthateachpay5percentinterest,compoundedannually.Bothoptionswillprovideyouwith12,000ofincome.OptionApaysthreeannualpaymentsstartingwith2,000thefirstyearfollowedbytwoannualpaymentsof5,000each.OptionBpaysthreeannualpaymentsof4,000each.Whichoneofthefollowingstatementsiscorrectgiventhesetwoinvestmentoptions?

ABothoptionsareofequalvaluegiventhattheybothprovide$12,000ofincome.BOptionAhasthehigherfuturevalueattheendofyearthree.COptionBhasahigherpresentvalueattimezerothandoesoptionA.DOptionBisaperpetuity.EOptionAisanannuity.第11題Youarecomparingtwoannuitieswhichofferquarterlypaymentsof$2,500forfiveyearsandpay0.75percentinterestpermonth.AnnuityAwillpayyouonthefirstofeachmonthwhileannuityBwillpayyouonthelastdayofeachmonth.Whichoneofthefollowingstatementsiscorrectconcerningthesetwoannuities?

AThesetwoannuitieshaveequalpresentvaluesbutunequalfuturesvaluesattheendofyearfive.BThesetwoannuitieshaveequalpresentvaluesasoftodayandequalfuturevaluesattheendofyearfive.CAnnuityBisanannuitydue.DAnnuityAhasasmallerfuturevaluethanannuityB.EAnnuityBhasasmallerpresentvaluethanannuityA.正確答案：E第12題Whichoneofthefollowingtermsisusedtodescribealoanthatcallsforperiodicinterestpaymentsandalumpsumprincipalpayment?

AamortizedloanBmodifiedloanCballoonloanDpurediscountloanEinterest-onlyloan正確答案：E第13題Whatistheinterestratechargedperperiodmultipliedbythenumberofperiodsperyearcalled?

AeffectiveannualrateBannualpercentagerateCperiodicinterestrateDcompoundinterestrateEdailyinterestrate第14題Whichoneofthefollowingaccuratelydefinesaperpetuity?AalimitednumberofequalpaymentspaidineventimeincrementsBpaymentsofequalamountsthatarepaidirregularlybutindefinitelyCaryingamountsthatarepaidatevenintervalsforeverDunendingequalpaymentspaidatequaltimeintervalsEunendingequalpaymentspaidateitherequalorunequaltimeintervals第15題Anordinaryannuityisbestdefinedbywhichoneofthefollowing?AincreasingpaymentspaidforadefinitiveperiodoftimeBincreasingpaymentspaidforeverCequalpaymentspaidatregularintervalsoverastatedtimeperiodDequalpaymentspaidatregularintervalsoftimeonanongoingbasisEunequalpaymentsthatoccuratsetintervalsforalimitedperiodoftimeAchievementTest5第1題Blackwellbondshaveafacevalueof$1,000andarecurrentlyquotedat98.4.Thebondshavea5percentcouponrate.Whatisthecurrentyieldonthesebonds?A4.67percentB4.78percentC5.08percentD5.33percentE5.54percent第2題Whichofthefollowingstatementsiscorrectconcerningthetermstructureofinterestrates?I.Expectationsoflowerinflationratesinthefuturetendtolowertheslopeofthetermstructureofinterestrates.II.Thetermstructureofinterestratesincludesbothaninflationpremiumandaninterestrateriskpremium.III.Therealrateofreturnhasminimal,ifany,affectontheslopeofthetermstructureofinterestrates.IV.Thetermstructureofinterestratesandthetimetomaturityarealwaysdirectlyrelated.AIandIIonlyBIIandIVonlyCI,II,andIIIonlyDII,III,andIVonlyEI,II,andIVonly第3題Whichofthefollowingincreasethepricesensitivityofabondtochangesininterestrates?I.increaseintimetomaturityII.decreaseintimetomaturityIII.increaseincouponrateIV.decreaseincouponrateAIIonlyBIandIIIonlyCIandIVonlyDIIandIIIonlyEIIandIVonly第4題GreenRoofInnsispreparingabondofferingwitha6percent,semiannualcouponandafacevalueof$1,000.Thebondswillberepaidin10yearsandwillbesoldatpar.Giventhis,whichoneofthefollowingstatementsiscorrect?AThebondswillbecomediscountbondsifthemarketrateofinterestdeclines.BThebondswillpay10interestpaymentsof$60each.CThebondswillsellatapremiumifthemarketrateis5.5percent.DThebondswillinitiallysellfor$1,030each.EThefinalpaymentwillbeintheamountof$1,060.第5題Whichofthefollowingrelationshipsapplytoaparvaluebond?I.couponrate<yield-to-maturityII.currentyield=yield-to-maturityIII.marketprice=callpriceIV.marketprice=facevalueAIandIIonlyBIandIIIonlyCIIandIVonlyDI,II,andIIIonlyEII,III,andIVonly第6題TheWalthersCompanyhasasemi-annualcouponbondoutstanding.Anincreaseinthemarketrateofinterestwillhavewhichoneofthefollowingeffectsonthisbond?AincreasethecouponrateBdecreasethecouponrateCincreasethemarketpriceDdecreasethemarketpriceEincreasethetimeperiod第7題Allelseconstant,abondwillsellat_____whenthecouponrateis_____theyieldtomaturity.Aapremium;lessthanBapremium;equaltoCadiscount;lessthanDadiscount;higherthanEpar;lessthan第8題Abondhasamarketpricethatexceedsitsfacevalue.Whichofthefollowingfeaturescurrentlyapplytothisbond?I.discountedpriceII.premiumpriceIII.yield-to-maturitythatexceedsthecouponrateIV.yield-to-maturitythatislessthanthecouponrate

AIIIonlyBIandIIIonlyCIandIVonlyDIIandIIIonlyEIIandIVonly正確答案：E第9題ATreasuryyieldcurveplotsTreasuryinterestratesrelativetowhichoneofthefollowing?

AmarketratesBcomparablecorporatebondratesCtherisk-freerateDinflationEmaturity正確答案：E第10題TheFishereffectisdefinedastherelationshipbetweenwhichofthefollowingvariables?Adefaultriskpremium,inflationriskpremium,andrealratesBnominalrates,realrates,andinterestrateriskpremiumCinterestrateriskpremium,realrates,anddefaultriskpremiumDrealrates,inflationrates,andnominalratesErealrates,interestrateriskpremium,andnominalrates第11題Youwanttobuyabondfromadealer.Whichoneofthefollowingpriceswillyoupay?AcallpriceBauctionpriceCbidpriceDaskedpriceEbid-askspread第12題Abondthathasonlyonepayment,whichoccursatmaturity,defineswhichoneofthefollowing?AdebentureBcallableCfloating-rateDjunkEzerocoupon正確答案：E第13題Thecurrentyieldisdefinedastheannualinterestonabonddividedbywhichoneofthefollowing?AcouponBfacevalueCmarketpriceDcallpriceEdirtyprice第14題Currently,thebondmarketrequiresareturnof11.6percentonthe10-yearbondsissuedbyWinstonIndustries.The11.6percentisreferredtoaswhichoneofthefollowing?AcouponrateBfacerateCcallrateDyieldtomaturityEinterestrate第15題Maryjustpurchasedabondwhichpays60ayearininterest.Whatisthis60called?AcouponBfacevalueCdiscountDcallpremiumEyieldAchievementTest6第1題HightowerPharmacyjustpaida$3.10annualdividend.Thecompanyhasapolicyofincreasingthedividendby4.2percentannually.Youwouldliketopurchase100sharesofstockinthisfirmbutrealizethatyouwillnothavethefundstodosoforanotherfouryears.Ifyourequirea16percentrateofreturn,howmuchwillyoubewillingtopaypershareforthe100shareswhenyoucanaffordtomakethisinvestment?A31.5B32.27C33.12D33.78E34.47第2題NorthernGasrecentlypaida2.80annualdividendonitscommonstock.Thisdividendincreasesatanaveragerateof3.8percentperyear.Thestockiscurrentlysellingfor26.91ashare.Whatisthemarketrateofreturn?A13.88percentB14.03percentC14.21percentD14.37percentE14.60percent正確答案：E第3題ThecurrentdividendyieldonClayton'sMetalscommonstockis3.2percent.Thecompanyjustpaida1.48annualdividendandannouncedplanstopay1.54nextyear.Thedividendgrowthrateisexpectedtoremainconstantatthecurrentlevel.Whatistherequiredrateofreturnonthisstock?A7.25percentB7.82percentC8.08percentD8.39percentE8.75percent第4題ThecommonstockofAutoDeliveriessellsfor28.16ashare.Thestockisexpectedtopay1.35persharenextyearwhentheannualdividendisdistributed.Thefirmhasestablishedapatternofincreasingitsdividendsby3percentannuallyandexpectstocontinuedoingso.Whatisthemarketrateofreturnonthisstock?A7.42percentB7.79percentC19.67percentD20.14percentE20.86percent第5題ShowBoatDinnerTheatreshaspaidannualdividendsof0.32,0.52,and$0.60ashareoverthepastthreeyears,respectively.Thecompanynowpredictsthatitwillmaintainaconstantdividendsinceitsbusinesshasleveledoffandsalesareexpectedtoremainrelativelyflat.Giventhelackoffuturegrowth,youwillonlybuythisstockifyoucanearnatleasta19percentrateofreturn.Whatisthemaximumamountyouarewillingtopayforoneshareofthisstocktoday?I.interestexpenseII.taxesIII.costsofgoodssoldIV.depreciation

A2.43B3.16C4.43D4.69E4.82第6題ThecommonstockofTextileMillspaysanannualdividendof$1.65ashare.Thecompanyhaspromisedtomaintainaconstantdividendeventhougheconomictimesaretough.Howmuchareyouwillingtopayforoneshareofthisstockifyouwanttoearna12percentannualreturn?A13.75B14.01C14.56D14.79E15.23第7題HowmuchareyouwillingtopayforoneshareofJumboTroutstockifthecompanyjustpaida$0.70annualdividend,thedividendsincreaseby2.5percentannually,andyourequirea10percentrateofreturn?A9.29B9.33C9.57D9.53E9.59第8題SesslerManufacturersmadetwoannouncementsconcerningitscommonstocktoday.First,thecompanyannouncedthatthenextannualdividendwillbe$1.75ashare.Secondly,alldividendsafterthatwilldecreaseby1.5percentannually.Whatisthemaximumamountyoushouldpaytopurchaseashareofthisstocktodayifyourequirea14percentrateofreturn?A11.29B12.64C13.27D14E14.21第9題MillerBrothersHardwarepaidanannualdividendof$0.95persharelastmonth.Today,thecompanyannouncedthatfuturedividendswillbeincreasingby2.6percentannually.Ifyourequirea13percentrateofreturn,howmuchareyouwillingtopaytopurchaseoneshareofthisstocktoday?A9.23B9.37C9.67D9.72E9.88第10題HardyLumberhasacapitalstructurewhichincludesbonds,preferredstock,andcommonstock.Whichofthefollowingrightshavemostlikelybeengrantedtothepreferredshareholders?I.righttoshareincompanyprofitspriortoothershareholdersII.righttoelectthecorporatedirectorsIII.righttovoteonproposedmergersIV.righttoallresidualincomeafterthecommondividendshavebeenpaidAIonlyBIandIIIonlyCIandIVonlyDII,III,andIVonlyEI,II,III,andIV第11題Whichoneofthefollowingrepresentsthecapitalgainsyieldasusedinthedividendgrowthmodel?AD1BD1/P0CP0DgEg/P0第12題Whichoneofthefollowingstatementsiscorrect?AThecapitalgainsyieldistheannualrateofchangeinastock'sprice.BPreferredstockshaveconstantgrowthdividends.CAconstantdividendstockcannotbevaluedusingthedividendgrowthmodel.DThedividendgrowthmodelcanbeusedtocomputethecurrentvalueofanystock.EAnincreaseintherequiredreturnwilldecreasethecapitalgainsyield.第13題Answerthisquestionbasedonthedividendgrowthmodel.Ifyouexpectthemarketrateofreturntoincreaseacrosstheboardonallequitysecurities,thenyoushouldalsoexpect:Aanincreaseinallstockvalues.Ballstockvaluestoremainconstant.Cadecreaseinallstockvalues.Ddividend-payingstockstomaintainaconstantpricewhilenon-dividendpayingstocksdecreaseinvalue.Edividend-payingstockstoincreaseinpricewhilenon-dividendpayingstocksdecreaseinvalue.第14題Whichoneofthefollowingisanunderlyingassumptionofthedividendgrowthmodel?AAstockhasthesamevaluetoeveryinvestor.BAstock'svalueisequaltothediscountedpresentvalueofthefuturecashflowswhichitgenerates.CAstock'svaluechangesindirectrelationtotherequiredreturn.DStocksthatpaythesameannualdividendhaveequalmarketvalues.EThedividendgrowthrateisinverselyrelatedtoastock'smarketprice.第15題Thedividendgrowthmodel:I.assumesthatdividendsincreaseataconstantrateforever.II.canbeusedtocomputeastockpriceatanypointintime.III.canbeusedtovaluezero-growthstocks.IV.requiresthegrowthratetobelessthantherequiredreturn.AIandIIIonlyBIIandIVonlyCI,III,andIVonlyDI,II,andIVonlyEI,II,III,andIV正確答案：E第16題Anincreaseinwhichofthefollowingwillincreasethecurrentvalueofastockaccordingtothedividendgrowthmodel?I.dividendamountII.numbero