更多"[单选题] The primary reason that indiv"的相关试题:
[单选题] The primary reason that individuals and firms choose to borrow long-term is to
A. reduce the risk that interest rates will fall before they pay off their debt.
B. reduce the risk that interest rates will rise before they pay off their debt.
C. reduce monthly interest payments, as interest rates tend to be higher on short-term than long-term debt instruments.
D. reduce total interest payments over the life of the debt.
[单选题] Individuals and households frequently purchase capital market securities through financial institutions such as
A. mutual funds.
B. pension funds.
C. money market mutual funds.
D. all of the above.
E. only A and B of the above.
[简答题] Firms and individuals use the money markets primarily to warehouse funds for short
Periods of time until a more important need or a more productive use for the funds arises.
[单选题]A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:
A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company.
Difficulty: 1 Easy
[单选题]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 investment called?
A. Dividend yield
B. Cost of equity
C. Capital gains yield
D. Cost of capital
E. Income return
Difficulty: 1 Easy
Topic: Cost of equity
Learning Objective: 14-01 Determine a firm's cost of equity capital.
[单选题] A firm will borrow long-term
A. if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates before it retires its debt.
B. if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the expected premium that is paid for borrowing long-term.
C. if short-term interest rates are expected to decline during the term of the debt.
D. if long-term interest rates are expected to decline during the term of the debt.
[单选题] (I. Firms and individuals use the capital markets for long-term investments.
(II. Capital markets provide an alternative to investment in assets such as real estate and gold.
A. (I. is true, (II. false.
B. (I. is false, (II. true.
C. Both are true.
D. Both are false.
[简答题] An additional perk of a private equity firm is that the profits for both CEOs and the partners are taxed at the 15% capital gains rate rather than the 35% rate they would suffer if the income was received as income.
[单选题] The most active investment banking firm in the private placement market is ________.
A. Merrill Lynch
B. Lehman Brothers
C. Goldman Sachs
D. Morgan Stanley
[单选题]Activities of a firm that require the spending of cash are known as:
A. sources of cash.
B. uses of cash.
C. cash collections.
D. cash receipts.
E. cash on hand.
Difficulty: 1 Easy
Topic: Sources and uses of cash
Learning Objective: 03-01 Standardize financial statements for comparison purposes.
[单选题]A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by:
A. accounts payable.
B. long-term debt.
C. fixed assets.
D. retained earnings.
E. common stock.
Difficulty: 1 Easy
Topic: External financing need
Learning Objective: 04-02 Compute the external financing needed to fund a firm's growth.
[单选题]The book value of a firm is:
A. equivalent to the firm's market value provided that the firm has some fixed assets.
B. based on historical cost.
C. generally greater than the market value when fixed assets are included.
D. more of a financial than an accounting valuation.
E. adjusted to the market value whenever the market value exceeds the stated book value.
Difficulty: 1 Easy
Topic: Market and book values
Learning Objective: 02-01 Describe the difference between accounting value (or "book" value. and market value.
[简答题] In America, people like a firm handshake.
[单选题] To list on the NYSE, a firm must
A. have earnings of at least $10 million per year.
B. have at least $500 million in outstanding debt.
C. have a total of $100 million in market value.
D. meet all of the above requirements.
E. meet A and C of the above requirements.
[单选题] The distribution of a firm's capital between debt and equity is its
A. current ratio.
B. liability structure.
C. acid ratio.
D. capital structure.
[简答题] When a firm issues stock for the first time in an initial public offering, it is difficult for an investment bank to determine what the correct price should be.
[单选题] A share of common stock in a firm represents an ownership interest in that firm and allows stockholders to
A. vote.
B. receive dividends.
C. receive interest payments.
D. only A and B of the above.
[单选题]The portion of net income that a firm reinvests in itself is called the:
A. retention ratio.
B. dividend yield.
C. dividend payout ratio.
D. internal growth rate.
E. cash influx ratio.
Difficulty: 1 Easy
Topic: Financial planning basics
Learning Objective: 04-01 Apply the percentage of sales method.
[单选题]A firm's managers realize they cannot monitor all aspects of their projects but do want to maintain a constant focus on the key aspect of each project in an attempt to maximize their firm's value. Given this specific desire, which type of analysis should they require for each project and why?
A. Sensitivity analysis; to identify the key variable that affects a project's profitability
B. Scenario analysis; to guarantee each project will be profitable
C. Cash breakeven; to ensure the firm recoups its initial investment
D. Accounting breakeven; to ensure each project earns its required rate of return
E. Financial breakeven; to ensure each project has a positive NPV
Difficulty: 1 Easy
Topic: Sensitivity analysis
Learning Objective: 11-01 Perform and interpret a sensitivity analysis for a proposed investment.
