Bài tập - GK 20% TÀI CHÍNH DOANH NGHIỆP Testbank Tài c

🧩 Bài tập - GK 20% TÀI CHÍNH DOANH NGHIỆP Testbank Tài c

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Câu 1 (Tự luận): GK 20% TÀI CHÍNH DOANH NGHIỆP Testbank Tài chính doanh nghiệp (Đại học Tôn Đức Thắng) TEST BANK Principles of Corporate Finance (20%) CHAPTER 01 GOALS AND GOVERNANCE OF THE FIRM

Câu 2 (Trắc nghiệm): Finance, generally, deals with: I) Money; II) Markets; III) People

A. I only

B. I and II only

C. I and III only

D. I, II and III

Câu 3 (Trắc nghiệm): This book is mainly about:

A. financial decisions made by households

B. financial decisions made by corporations

C. financial decisions made by governments

D. none of the above

Câu 4 (Trắc nghiệm): The following are examples of the United States-based corporations except: I) Boeing; II) Microsoft; III) Bank of America; IV) Sony

A. I only

B. I and II only

C. I, II, and III only

D. IV only

Câu 5 (Trắc nghiệm): The following are examples of foreign-based corporations except: I) British Petroleum; II) General Electric; III) Sony; IV) Volkswagen

A. I only

B. II only

C. II and III only

D. I, II, & IV only

Câu 6 (Trắc nghiệm): Shareholders of a corporation may be, among others: I) Individuals; II) Pension Funds; III) Insurance Companies

A. I only

B. I and II only

C. II only

D. I, II and III

Câu 7 (Trắc nghiệm): Generally, a corporation is owned by the: I) Managers; II) Board of Directors; III) Shareholders

A. I only

B. II and III

C. III only

D. I, II and III

Câu 8 (Trắc nghiệm): Corporations, potentially, have infinite life because:

A. it is a legal entity

B. of separation of ownership and management

C. it has limited liability

D. none of the above

Câu 9 (Trắc nghiệm): Limited liability is an important feature of:

A. Sole proprietorships

B. Partnerships

C. Corporations

D. All of the above

Câu 10 (Trắc nghiệm): As a legal entity a corporation can perform the following functions except: I) borrow money; II) lend money; III) sue and be sued; IV) vote

A. I and II only

B. I, II, and III only

C. IV only

D. I, II, III and IV

Câu 11 (Trắc nghiệm): The following are examples of intangible assets except:

A. Building

B. Trademarks

C. Patents

D. Technical expertise

Câu 12 (Trắc nghiệm): The following are examples of tangible assets except:

A. Machinery

B. Factories

C. Trademarks

D. Offices

Câu 13 (Trắc nghiệm): A firm's investment decision is also called the:

A. Financing decision

B. Liquidity decision

C. Capital budgeting decision

D. None of the above

Câu 14 (Trắc nghiệm): The following are examples of financial assets except:

A. Common stock

B. Bank loan

C. Preferred stock

D. Buildings

Câu 15 (Trắc nghiệm): The treasurer usually oversees the following functions of a corporation except: I) Preparation of financial statements; II) Investor relationships; III) Cash management; IV) raising new capital

A. I only

B. I and II only

C. II, III and IV only

D. III only

Câu 16 (Trắc nghiệm): The treasurer is usually responsible the following functions of a corporation: I) Tax obligations; II) Investor relationships; III) Cash management; IV) raising new capital

A. I only

B. I and II only

C. II, III and IV only

D. I, II, III and IV

Câu 17 (Trắc nghiệm): The controller usually oversees the following functions of a corporation: I) Preparation of financial statements; II) Internal accounting; III) Cash management and IV) Taxes

A. I, II and IV only

B. III only

C. I and II only

D. II and III

Câu 18 (Trắc nghiệm): The controller is usually responsible for the following functions of a corporation except: I) Preparation of financial statements; II) Internal accounting; III) Cash management; IV) Taxes

A. I only

B. III only

C. I and II only

D. IV only

Câu 19 (Trắc nghiệm): The following are important functions of financial markets: I) Source of financing; II) Provide liquidity; III) Reduce risk; IV) Source of information

A. I only

B. I and II only

C. I, II, III, and IV

D. IV only

Câu 20 (Trắc nghiệm): The Chief Financial Officer (CFO) of a corporation oversees:

A. Treasurer's functions

B. Controller's functions

C. Both

A. and B

D. None of the above

Câu 21 (Trắc nghiệm): Conflicts of interest between shareholders and managers of a firm result in:

A. Principal-agent problem

B. Increased agency costs

C. Both

A. and B

D. Managers owning the firm

Câu 22 (Trắc nghiệm): In the principal-agent framework:

A. Shareholders are the principals

B. Managers are the principals

C. Managers are the agents

D. A and D

Câu 23 (Trắc nghiệm): Costs associated with the conflicts of interest between the bondholders and the

A. Legal costs

B. Bankruptcy costs

C. Administrative costs

D. Agency costs

Câu 24 (Trắc nghiệm): Agency costs are incurred by a corporation because:

A. managers may not attempt to maximize the value of the firm to shareholders

B. shareholders incur monitoring cost

C. separation of ownership and management

D. all of the above

Câu 25 (Trắc nghiệm): The following groups are some of the claimants to a firm's income stream: I) Shareholders; II) Bondholders; III) Employees; IV) Management and V) Government

A. I and II only

B. I, II, and III only

C. I, II, III and IV only

D. I, II, III, IV and V

Câu 26 (Trắc nghiệm): The financial goal of a corporation is to:

A. Maximize profits

B. Maximize sales

C. Maximize the value of the firm for the shareholders

D. Maximize managers' benefits

Câu 27 (Trắc nghiệm): The purchase of real assets is also referred to as the:

A. Capital decision

B. CFO decision

C. Financing decision

D. Investment decision

Câu 28 (Trắc nghiệm): The sale of financial assets is also referred to as the:

A. Capital decision

B. CFO decision

C. Financing decision

D. Investment decision

Câu 29 (Trắc nghiệm): The mixture of debt and equity, used to finance a corporation is also known as:

A. Capital budgeting

B. Capital structure

C. Investing

D. Treasury

Câu 30 (Trắc nghiệm): Which of the following is not a common function of the firm's chief financial officer?

A. Hiring CEO

B. Hiring controller

C. Investing capital

D. Paying dividends

Câu 31 (Trắc nghiệm): f the following list, which is a stakeholder? I) Employee; II) Customer; III) Community; IV) Supplier

A. I, II and IV only

B. III only

C. I and II only

D. All

Câu 32 (Trắc nghiệm): The following are examples of real assets: I) Machinery; II) Office buildings; III) Warehouse; IV) Common stock

A. I, II, and III only

B. I and II only

C. IV only

D. I only

Câu 33 (Trắc nghiệm): The following are examples of tangible assets (TS Hữu hình) except: I) Machinery; II) Office buildings; III) Warehouse; IV) Training for employees

A. I only

B. I and II only

C. IV only

D. I, II, and III only

Câu 34 (Trắc nghiệm): The financial goal of a corporation is to:

A. Minimize stockholder wealth

B. Maximize profit

C. Maximize value of the corporation to the stockholders

D. Decrease job security

Câu 35 (Trắc nghiệm): Managers' actions are monitored by:

A. The board of directors

B. Commercial banks that have loaned funds to the firm

C. The Wall Street analysts

D. All of the above

Câu 36 (Trắc nghiệm): The following are some of the actions shareholders can take if the corporation is not performing well:

A. Replace the board of directors in an election.

B. Force the board of directors to change the management team.

C. Sell their shares of stock in the corporation.

D. Any of the above

Câu 37 (Trắc nghiệm): The idea of "maximizing shareholder value" is widely accepted in: I) U.S.A.; II) U.K; III) Germany; IV) France; V) Japan

A. I only

B. I and II only

C. III, IV and V only

D. I, II, III, IV and V

Câu 38 (Trắc nghiệm): The idea that "firms should be run for stakeholders welfare " is accepted in: I) U.S.A.; II) U.K; III) Germany; IV) France; V) Japan

A. I only

B. I and II only

C. III, IV and V only

D. I, II, III, IV and V

Câu 39 (Trắc nghiệm): The Sarbanes-Oxley Act of 2002 (SOX) was passed largely in response to:

A. the corporate accounting scandals of the previous years

B. the increase in the budget deficits

C. the increase in the trade deficits

D. none of the above

Câu 40 (Trắc nghiệm): A major advantage of the Sarbanes-Oxley Act of 2002 (SOX) is:

A. good investor protection

B. increase in compliance costs

C. that it constrains managers' ability to run the firm

D. that it may discourage development of human capital in the firm

Câu 41 (Trắc nghiệm): Major disadvantages of the Sarbanes-Oxley Act of 2002 (SOX) are the following except:

A. good investor protection

B. increase in compliance costs

C. that it constrains managers' ability to run the firm

D. that it may discourage development of human capital in the firm

Câu 42 (Trắc nghiệm): Mr. Free has $100 dollars income this year and zero income next year. The market interest rate is 10% per year. If Mr. Free consumes $30 this year, and invests the rest in the market, what will be his consumption next year?

A. $50

B. $100

C. $77

D. $55

Câu 43 (Trắc nghiệm): Mr. Bird has $100 income this year and zero income next year. The market interest rate is 10% per year. Mr. Bird also has an investment opportunity in which he can invest $50 today and receive $80 next year. Suppose Mr. Bird consumes $30 this year and invests in the project. What will be his consumption next year?

A. $88

B. $102

C. $80

D. $100

Câu 44 (Trắc nghiệm): Ms. Venus has $100 income this year and $110 next year. The market interest rate is 10% per year. Suppose Ms. Venus consumes $60 this year. What will be her consumption next year?

A. $154

B. $170

C. $120

D. None of the above

Câu 45 (Trắc nghiệm): Mr. Thomas has $100 income this year and zero income next year. The market interest rate is 10% per year. Mr. Thomas also has an investment opportunity in which he can invest $50 this year and receive $80 next year. Suppose Mr. Thomas consumes $50 this year and invests in the project. What will be his consumption next year?

A. $55

B. $80

C. $50

D. None of the above

Câu 46 (Trắc nghiệm): Mr. Dell has $100 income this year and zero income next year. The market interest rate is 10% per year. Mr. Dell also has an investment opportunity in which he can invest $50 this year and receive $80 next year. Suppose Mr. Dell consumes $50 this year and invests in the project. What is the NPV of the investment opportunity?

A. $5

B. $22.73

C. $0 (zero)

D. None of the above.

C. là giá trị tiền đầu tư

Câu 47 (Trắc nghiệm): Ms. Anderson has $60,000 income this year and $40,000 next year. The market interest rate is 10% per year. Suppose Ms. Anderson consumes $80,000 this year. What will be her consumption next year?

A. $60,000

B. $30,000

C. $70,000

D. $18,000

Câu 48 (Trắc nghiệm): The line that connects the maximum that one can consume this year (now) and the maximum one can consume next year:

A. Has a slope of (1 + r)

B. Has a slope of -(1 + r)

C. Has a slope of r

D. Has a slope of 1/r

Câu 49 (Trắc nghiệm): Ms. Newcastle has $60,000 income this year and $40,000 next year. The market interest rate is 10% per year. Suppose Ms. Newcastle wishes to consume $62,000 next year. What will be her consumption this year?

A. $60,000

B. $40,000

C. $70,000

D. $19,000

Câu 50 (Trắc nghiệm): Mr. Smith has an income of $40,000 this year and $60,000 next year. He can invest in a project that costs $30,000 this year, which generates an income of $36,000 next year. The market interest rate is 10%. What will be his consumption next year, if Mr. Smith invests in the project and consumes $50,000 this year?

A. $40,000

B. $52,000

C. $60,000

D. None of the above

Câu 51 (Trắc nghiệm): The present value of $100 expected in two years from today at a discount rate of 6% is:

A. $116.64

B. $108.00

C. $100.00

D. $89.00

Câu 52 (Trắc nghiệm): Present Value is defined as:

A. Future cash flows discounted to the present at an appropriate discount rate

B. Inverse of future cash flows

C. Present cash flow compounded into the future

D. None of the above

Câu 53 (Trắc nghiệm): If the interest rate is 12%, what is the 2-year discount factor?

A. 0.7972

B. 0.8929

C. 1.2544

D. None of the above

Câu 54 (Trắc nghiệm): If the present value of the cash flow X is $240, and the present value cash flow Y $160, then the present value of the combined cash flow is:

A. $240

B. $160

C. $80

D. $400

Câu 55 (Trắc nghiệm): The rate of return is also called: I) discount rate; II) hurdle rate; III) opportunity cost of capital

A. I only

B. I and II only

C. I, II, and III

D. None of the given ones

Câu 56 (Trắc nghiệm): Present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is:

A. $121,000

B. $100,000

C. $110,000

D. None of the above

Câu 57 (Trắc nghiệm): One year discount factor at a discount rate of 25% per year is:

A. 1.25

B. 1.0

C. 0.8

D. None of the above Discount Factor

Câu 58 (Trắc nghiệm): The one-year discount factor at an interest rate of 100% per year is:

A. 1.5

B. 0.5

C. 0.25

D. None of the above

Câu 59 (Trắc nghiệm): Present Value of $100,000 that is, expected, to be received at the end of one year at a discount rate of 25% per year is:

A. $80,000

B. $125,000

C. $100,000

D. None of the above

Câu 60 (Điền từ / Trả lời ngắn): + r = 1/(0.8333) = 1.20; r = 20%

Câu 61 (Trắc nghiệm): If the present value of $480 to be paid at the end of one year is $400, what is the one-year discount factor?

A. 0.8333

B. 1.20

C. 0.20

D. None of the above

Câu 62 (Trắc nghiệm): If the present value of $250 expected to be received one year from today is $200, what is the discount rate?

A. 10%

B. 20%

C. 25%

D. None of the above

Câu 63 (Điền từ / Trả lời ngắn): + r = 250 /200 = 1.25; r = 25%

Câu 64 (Trắc nghiệm): If the one-year discount factor is 0.90, what is the present value of $120 to be received one year from today?

A. $100

B. $96

C. $108

D. None of the above

Câu 65 (Trắc nghiệm): If the present value of $600 expected to be received one year from today is $400, what is the one-year discount rate?

A. 15%

B. 20%

C. 25%

D. 50%

Câu 66 (Điền từ / Trả lời ngắn): + r = (600)/(400) = 1.5; r = 50%

Câu 67 (Trắc nghiệm): The present value formula for one period cash flow is:

A. PV = C1(1 + r)

B. PV = C1/(1 + r)

C. PV = C1/r

D. None of the above

Câu 68 (Trắc nghiệm): The net present value formula for one period is: I) NPV = C0 + [C1/(1 + r)]; II) NPV = PV required investment; and III) NPV = C0/C1

A. I only

B. I and II only

C. III only

D. None of the above

Câu 69 (Trắc nghiệm): An initial investment of $400,000 will produce an end of year cash flow of $480,000. What

A. $176,000

B. $80,000

C. $0 (zero)

D. None of the above

Câu 70 (Trắc nghiệm): If the present value of a cash flow generated by an initial investment of $200,000 is $250,000, what is the NPV of the project?

A. $250,000

B. $50,000

C. $200,000

D. None of the above

Câu 71 (Trắc nghiệm): What is the present value of the following cash flow at a discount rate of 9%?

A. $372,431.81

B. $450,000

C. $405,950.68

D. None of the above

Câu 72 (Trắc nghiệm): At an interest rate of 10%, which of the following cash flows should you prefer?

A. Option A

B. Option B

C. Option C

D. Option D

Câu 73 (Trắc nghiệm): What is the net present value of the following cash flow at a discount rate of 11%?

A. $69,108.03

B. $231,432.51

C. $80,000

D. None of the above

Câu 74 (Trắc nghiệm): What is the present value of the following cash flow at a discount rate of 16% APR?

A. $136,741.97

B. $122,948.87

C. $158,620.69

D. None of the above

Câu 75 (Trắc nghiệm): What is the net present value (NPV) of the following cash flows at a discount rate of 9%?

A. $122,431.81

B. $200,000

C. $155,950.68

D. None of the above

Câu 76 (Trắc nghiệm): The following statements regarding the NPV rule and the rate of return rule are true except:

A. Accept a project if its NPV > 0

B. Reject a project if the NPV < 0

C. Accept a project if its rate of return > 0

D. Accept a project if its rate of return > opportunity cost of capital

Câu 77 (Trắc nghiệm): An initial investment of $500 produces a cash flow $550 one year from today. Calculate the rate of return on the project

A. 10%

B. 15%

C. 25%

D. none of the above

Câu 78 (Trắc nghiệm): According to the net present value rule, an investment in a project should be made if the:

A. Net present value is greater than the cost of investment

B. Net present value is greater than the present value of cash flows

C. Net present value is positive

D. Net present value is negative

Câu 79 (Trắc nghiệm): Which of the following statements regarding the net present value rule and the rate of return rule is not true?

A. Accept a project if NPV > cost of investment

B. Accept a project if NPV is positive

C. Accept a project if return on investment exceeds the rate of return on an equivalent

D. Reject a project if NPV is negative

Câu 80 (Trắc nghiệm): The opportunity cost of capital for a risky project is

A. The expected rate of return on a government security having the same maturity as the project

B. The expected rate of return on a well-diversified portfolio of common stocks

C. The expected rate of return on a portfolio of securities of similar risks as the project

D. None of the above

Câu 81 (Trắc nghiệm): A perpetuity is defined as:

A. Equal cash flows at equal intervals of time for a specific number of periods

B. Equal cash flows at equal intervals of time forever

C. Unequal cash flows at equal intervals of time forever

D. None of the above

Câu 82 (Trắc nghiệm): Which of the following is generally considered an example of a perpetuity:

A. Interest payments on a 10-year bond

B. Interest payments on a 30-year bond

C. Consols

D. None of the above

Câu 83 (Trắc nghiệm): You would like to have enough money saved to receive $100,000 per year perpetuity after

A. $1,000,000

B. $10,000,000

C. $800,000

D. None of the above

Câu 84 (Trắc nghiệm): What is the present value of $10,000 per year perpetuity at an interest rate of 10%?

A. $10,000

B. $100,000

C. $200,000

D. None of the above

Câu 85 (Trắc nghiệm): You would like to have enough money saved to receive $80,000 per year perpetuity after

A. $7,500,000

B. $750,000

C. $1,000,000

D. None of the above

Câu 86 (Trắc nghiệm): You would like to have enough money saved to receive a $50,000 per year perpetuity after

A. $1,000,000

B. $675,000 PV = [(50,000/0.08)](1.08) = 675,000

C. $625,000

D. None of the above

Câu 87 (Trắc nghiệm): You would like to have enough money saved to receive an $80,000 per year perpetuity after

A. $1,500,000

B. $880,000

C. $800,000

D. None of the above

Câu 88 (Trắc nghiệm): An annuity is defined as

A. Equal cash flows at equal intervals of time for a specified period of time

B. Equal cash flows at equal intervals of time forever

C. Unequal cash flows at equal intervals of time forever

D. None of the above

Câu 89 (Trắc nghiệm): If you receive $1,000 payment at the end each year for the next five years, what type of cash flow do you have?

A. Uneven cash flow stream

B. An annuity

C. An annuity due

D. None of the above

Câu 90 (Trắc nghiệm): If the three-year present value annuity factor is 2.673 and two-year present value annuity factor is 1.833, what is the present value of $1 received at the end of the 3 years?

A. $1.1905

B. $0.84

C. $0.89

D. None of the above

Câu 91 (Trắc nghiệm): If the five-year present value annuity factor is 3.60478 and four-year present value annuity factor is 3.03735, what is the present value at the $1 received at the end of five years?

A. $0.63552

B. $1.76233

C. $0.56743

D. None of the above

Câu 92 (Trắc nghiệm): What is the present value annuity factor at a discount rate of 11% for 8 years?

A. 5.7122

B. 11.8594

C. 5.1461

Câu 93 (Trắc nghiệm): What is the present value annuity factor at an interest rate of 9% for 6 years?

A. 7.5233

B. 4.4859

C. 1.6771

D. None of the above

Câu 94 (Trắc nghiệm): What is the present value of $1000 per year annuity for five years at an interest rate of 12%?

A. $6,352.85

B. $3,604.78

C. $567.43

D. None of the above

Câu 95 (Trắc nghiệm): What is the present value of $5000 per year annuity at a discount rate of 10% for 6 years?

A. $21,776.30

B. $3,371.91

C. $16,760.78

D. None of the above

Câu 96 (Trắc nghiệm): After retirement, you expect to live for 25 years. You would like to have $75,000 income each year. How much should you have saved in the retirement to receive this income, if the interest is 9% per year (assume that the payments start on the day of retirement)?

A. $736,693.47

B. $802,995.88

C. $2,043,750

D. None of the above

Câu 97 (Trắc nghiệm): After retirement, you expect to live for 25 years. You would like to have $75,000 income each year. How much should you have saved in the retirement to receive this income, if the interest is 9% per year (assume that the payments start one year after the retirement)?

A. $736,693.47

B. $6,352,567.22

C. $1,875,000

D. None of the above

Câu 98 (Trắc nghiệm): For $10,000 you can purchase a 5-year annuity that will pay $2504.57 per year for five years. The payments are made at the end of each year. Calculate the effective annual interest rate implied by this arrangement: (approximately)

A. 8%

B. 9%

C. 10%

D. None of the above

Câu 99 (Tự luận): 0% [calculator setting: END]

Câu 100 (Trắc nghiệm): If the present value annuity factor for 10 years at 10% interest rate is 6.1446, what is the present value annuity factor for an equivalent annuity due?

A. 6.1446

B. 7.38

C. 6.759

D. None of the above

Câu 101 (Trắc nghiệm): If the present annuity factor is 3.8896, what is the present value annuity factor for an equivalent annuity due if the interest rate is 9%?

A. 3.5684

B. 4.2397

C. 3.8896

D. None of the above.

Câu 102 (Trắc nghiệm): For $10,000 you can purchase a 5-year annuity that will pay $2358.65 per year for five years. The payments are made at the beginning of each year. Calculate the effective annual interest rate implied by this arrangement: (approximately) nhân thêm (1+r) messages.downloaded_by messages.pdf_cover_qr_code_label lOMoARcPSD|72076456

A. 8%

B. 9%

C. 10%

D. none of the above

Câu 103 (Tự luận): 0% [Calculator setting: BEGIN (BGN)]

Câu 104 (Trắc nghiệm): John House has taken a $250,000 mortgage on his house at an interest rate of 6% per year. If the mortgage calls for twenty equal annual payments, what is the amount of each payment?

A. $21,796.14

B. $10,500.00

C. $16,882.43

D. None of the above

Câu 105 (Trắc nghiệm): John House has taken a 20-year, $250,000 mortgage on his house at an interest rate of 6% per year. What is the value of the mortgage after the payment of the fifth annual installment?

A. $128,958.41

B. $211,689.53

C. $141,019.50

D. None of the above

Câu 106 (Trắc nghiệm): If the present value of $1.00 received n years from today at an interest rate of r is 0.3855, then what is the future value of $1.00 invested today at an interest rate of r% for n years?

A. $1.3855

B. $2.594

C. $1.70

D. Not enough information to solve the problem

Câu 107 (Trắc nghiệm): If the present value of $1.00 received n years from today at an interest rate of r is 0.621, then what is the future value of $1.00 invested today at an interest rate of r% for n years?

A. $1.00

B. $1.61

C. $1.621

D. Not enough information to solve the problem

Câu 108 (Trắc nghiệm): If the future value of $1 invested today at an interest rate of r% for n years is 9.6463, what is the present value of $1 to be received in n years at r% interest rate?

A. $9.6463

B. $1.00

C. $0.1037

D. None of the above

Câu 109 (Trắc nghiệm): If the future value annuity factor at 10% and 5 years is 6.1051, calculate the equivalent present value annuity factor

A. 6.1051

B. 3.7908

C. 6.7156

D. None of the given ones

Câu 110 (Trắc nghiệm): If the present value annuity factor at 10% APR for 10 years is 6.1446, what is the equivalent future value annuity factor?

A. 3.108

B. 15.9374

C. 2.5937

D. None of the above

Câu 111 (Trắc nghiệm): If the present value annuity factor at 12% APR for 5 years is 3.6048, what is the equivalent future value annuity factor?

A. 2.0455

B. 6.3529 FV annuity factor = 3.6048 * (1.12^5) = 6.3529

C. 1.7623

D. None of the above

Câu 112 (Trắc nghiệm): If the present value annuity factor at 8% APR for 10 years is 6.71, what is the equivalent future value annuity factor?

A. 3.108

B. 14.487

C. 2.159

D. None of the above

Câu 113 (Trắc nghiệm): You are considering investing in a retirement fund that requires you to deposit $5,000 per year, and you want to know how much the fund will be worth when you retire. What financial technique should you use to calculate this value?

A. Future value of a single payment

B. Future value of an annuity

C. Present value of an annuity

D. None of the above

Câu 114 (Trắc nghiệm): Mr. Hopper is expected to retire in 25 years and he wishes accumulate $750,000 in his retirement fund by that time. If the interest rate is 10% per year, how much should Mr. Hopper put into the retirement fund each year in order to achieve this goal? [Assume that the payments are made at the end of each year]

A. $4,559.44

B. $2,500

C. $7,626.05

D. None of the above

Câu 115 (Tự luận): 347; payment = 750,000/98.347 = 7626.05 FV=C * [(1+r)^n – 1]/r Dùng PV nếu kêu tính giá trị hiện tại nếu như trả mỗi năm trong Dùng FV nếu tiết kiệm trong n năm để sau này có dược số tiền ố messages.downloaded_by messages.pdf_cover_qr_code_label lOMoARcPSD|72076456

Câu 116 (Trắc nghiệm): Mr. Hopper is expected to retire in 30 years and he wishes accumulate $1,000,000 in his retirement fund by that time. If the interest rate is 12% per year, how much should Mr. Hopper put into the retirement fund each year in order to achieve this goal?

A. $4,143.66

B. $8,287.32

C. $4,000

D. None of the above

Câu 117 (Trắc nghiệm): You would like to have enough money saved to receive a growing annuity for 20 years, growing

A. $1,000,000

B. $425,678.19

C. $605,604.20

D. None of the above

Câu 118 (Trắc nghiệm): You would like to have enough money saved to receive a growing annuity for 25 years, growing

A. $1,500,000

B. $632,390

C. $452,165

D. None of the above

Câu 119 (Trắc nghiệm): The discount rate is used for calculating the NPV is:

A. Determined by the financial markets

B. Found by the government

C. Found by the CEO

D. None of the above

Câu 120 (Trắc nghiệm): The managers of a firm can maximize stockholder wealth by:

A. Taking all projects with positive NPVs

B. Taking all projects with NPVs greater than the cost of investment

C. Taking all projects with NPVs greater than present value of cash flow

D. All of the above

Câu 121 (Trắc nghiệm): If you invest $100 at 12% APR for three years, how much would you have at the end of 3 years using simple interest?

A. $136

B. $140.49

C. $240.18

D. None of the above

Câu 122 (Trắc nghiệm): If you invest $100 at 12% APR for three years, how much would you have at the end of 3 years using compound interest?

A. $136

B. $140.49

C. $240.18

D. None of the above

Câu 123 (Trắc nghiệm): Which of the following statements is true?

A. The process of discounting is the inverse of the process of compounding.

B. Ending balances using simple interest is always greater than the ending balance using

C. Present value of an annuity due is always less than the present value of an equivalent annuity at

D. All of the above are true.

Câu 124 (Trắc nghiệm): The concept of compound interest is most appropriately described as:

A. Interest earned on an investment

B. The total amount of interest earned over the life of an investment

C. Interest earned on interest

D. None of the above

Câu 125 (Trắc nghiệm): Ms. Colonial has just taken out a $150,000 mortgage at an interest rate of 6% per year. If the mortgage calls for equal monthly payments for twenty years, what is the amount of each payment? (Assume monthly compounding or discounting.)

A. $1254.70

B. $1625.00

C. $1263.06

D. None of the above are true

Câu 126 (Trắc nghiệm): An investment at 10.47% effective rate compounded monthly is equal to a nominal (annual) rate of:

A. 10.99%

B. 9.57%

C. 10%

D. None of the above

Câu 127 (Trắc nghiệm): An investment at 12% nominal rate compounded monthly is equal to an annual rate of:

A. 12.68%

B. 12.36%

C. 12%

D. None of the above

Câu 128 (Trắc nghiệm): Mr. William expects to retire in 30 years and would like to accumulate $1 million in the pension fund. If the annual interest rate is 12% per year, how much should Mr. Williams put into the pension fund each month in order to achieve his goal? Assume that Mr. Williams will deposit the same amount each month into his pension fund and also use monthly compounding.

A. $286.13

B. $771.60

C. $345.30

D. None of the above

Câu 129 (Trắc nghiệm): An investment at 10% nominal rate compounded continuously is equal to an equivalent annual rate of:

A. 10.250%

B. 10.517%

C. 10.381%

D. None of the above

Câu 130 (Trắc nghiệm): The present value of a $100 per year perpetuity at 10% per year interest rate is $1000. What would be the present value if the payments were compounded continuously?

A. $1000.00

B. $1049.21

C. $1024.40

D. None of the above

Câu 131 (Trắc nghiệm): The following entities issue bonds to raise long-term loans except:

A. The federal government

B. State and local governments

C. Companies

D. Individuals

Câu 132 (Trắc nghiệm): The type of bonds where the identities of bonds' owners are recorded and the coupon interest payments are sent automatically are called:

A. Bearer bonds

B. Government bonds

C. Registered bonds

D. None of the above

Câu 133 (Trắc nghiệm): A government bond issued in Germany has a coupon rate of 5%, face value of euros 100 and maturing in five years. The interest payments are made annually. Calculate the price of the bond (in euros)if the yield to maturity is 3.5%.

A. 100

B. 106.77

C. 106.33

D. none of the above

Câu 134 (Tự luận): 77 euros

Câu 135 (Trắc nghiệm): Generally, a bond can be valued as a package of: I) Annuity, II) Perpetuity, III) Single payment

A. I and II only

B. II and III only

C. I and III only

D. none of the above

Câu 136 (Trắc nghiệm): A government bond issued in Germany has a coupon rate of 5%, face value of euros 100 and maturing in five years. The interest payments are made annually. Calculate the yield to maturity of the bond (in euros) if the price of the bond is 106 euros.

A. 5.00%

B. 3.80%

C. 3.66%

D. none of the above

Câu 137 (Tự luận): 66%

Câu 138 (Trắc nghiệm): Generally, bonds issued in the following countries pay interest semi-annually. I) USA, II) UK, III) Canada, IV) Germany, & V) Japan messages.downloaded_by messages.pdf_cover_qr_code_label lOMoARcPSD|72076456

A. I, II, III, & IV

B. I, II, III, & V

C. II, III, & IV only

D. None of the above

Câu 139 (Trắc nghiệm): If a bond is paying interest semi-annually, then:

A. interest is paid once a year

B. interest is paid every six moths

C. interest is paid every three months

D. none of the above

Câu 140 (Trắc nghiệm): A 3-year bond with 10% coupon rate and $1000 face value yields 8% APR. Assuming annual coupon payment, calculate the price of the bond.

A. $857.96

B. $951.96

C. $1000.00

D. $1051.54

Câu 141 (Trắc nghiệm): A 5-year treasury bond with a coupon rate of 8% has a face value of $1000. What is the semi-annual interest payment?

A. $80

B. $40

C. $100

D. None of the above

Câu 142 (Trắc nghiệm): A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.

A. $857.96

B. $949.24

C. $1057.54

D. $1000.00

Câu 143 (Trắc nghiệm): A four-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond is $878.31, calculate the yield to maturity of the bond (assuming annual interest payments).

A. 8%

B. 10%

C. 12%

D. 6%

Câu 144 (Trắc nghiệm): A 5-year bond with 10% coupon rate and $1000 face value is selling for $1123. Calculate the yield to maturity on the bond assuming annual interest payments.

A. 10.0%

B. 8.9%

C. 7.0%

D. None of the above

Câu 145 (Trắc nghiệm): Which of the following statements about the relationship between interest rates and bond prices is true? I) There is an inverse relationship between bond prices and interest rates.

A. I and IV only

B. I and III only

C. II and III only

D. None of the given statements are true

Câu 146 (Trắc nghiệm): Consider a bond with a face value of $1,000, a coupon rate of 6%, a yield to maturity of 8%, and ten years to maturity. This bond's duration is:

A. 8.7 years

B. 7.6 years

C. 0.1 years

D. 6.5 years

Câu 147 (Trắc nghiệm): A bond with a face value of $1,000 has coupon rate of 7%, yield to maturity of 10%, and twenty years to maturity. The bond's duration is:

A. 10.0 years

B. 7.4 years

C. 20.0 years

D. 12.6 years

Câu 148 (Trắc nghiệm): A bond with a face value of $1,000, coupon rate of 0%, yield to maturity of 9%, and ten years to maturity. This bond's duration is:

A. 6.7 years

B. 7.5 years

C. 9.6 years

D. 10.0 years

Câu 149 (Trắc nghiệm): A bond with duration of 10 years has yield to maturity of 10%. This bond's volatility is:

A. 9.09%

B. 6.8%

C. 14.6%

D. 6.0%

Câu 150 (Trắc nghiệm): A bond with duration of 5.7 years has yield to maturity of 9%. The bond's volatility is:

A. 1.9%

B. 5.2%

C. 5.7%

D. 9.0%

Câu 151 (Trắc nghiệm): If a bond's volatility is 10% and the interest rate goes down by 0.75% (points) then the price of the bond:

A. decreases by 10%

B. decreases by 7.5%

C. increases by 7.5%

D. increases by 0.75%

Câu 152 (Trắc nghiệm): If a bond's volatility is 5% and the interest rate changes by 0.5% (points) then the price of the bond:

A. changes by 5%

B. changes by 2.5%

C. changes by 7.5%

D. none of the above

Câu 153 (Điền từ / Trả lời ngắn): * 0.5 = 2.5%

Câu 154 (Trắc nghiệm): Volatility of a bond is given by: I) Duration/ (1 + yield) II) Slope of the curve relating the bond price to the interest rate III) Yield to maturity

A. I only

B. II only

C. III only

D. I and II only

Câu 155 (Trắc nghiệm): The term structure of interest rates can be described as the:

A. Relationship between the spot interest rates and the bond prices

B. Relationship between spot interest rates and stock prices

C. Relationship between spot interest rates and maturity of a bond

D. None of the above

Câu 156 (Trắc nghiệm): Which of the following statements is true?

A. I only

B. II only

C. III only

D. I and III only

Câu 157 (Trắc nghiệm): A forward rate prevailing from period three through to period four can be: I) readily observed in the market place II) extracted from spot interest rate with 3 and 4 years to maturity III) extracted from 1 and 2 year spot interest rates

A. I only

B. II only

C. III only

D. I and III only

Câu 158 (Trắc nghiệm): If the 3-year spot rate is 10.5% and the 2-year spot rate is 10%, what is the one-year forward rate of interest two years from now?

A. 3.7%

B. 9.5%

C. 11.5%

D. None of the above

Câu 159 (Trắc nghiệm): If the 5-year spot rate is 10% and the 4-year spot rate is 9%, what is the one-year forward rate of interest four years from now?

A. 14.1%

B. 9.5%

C. 1.0%

D. 11.0%

Câu 160 (Đúng / Sai): If the 4-year spot rate is 7% and the 3-year spot rate is 6%, what is the one-year forward rate of interest three years from now?

f) = [(1.07^4)/(1.06^3)] -1 = 10%

Đúng Sai

Câu 161 (Trắc nghiệm): Interest represented by "r2" is:

A. Spot rate on a one-year investment (APR)

B. Spot rate on a two-year investment (APR)

C. Expected spot rate 2 years from today

D. Expected spot rate one year from today

Câu 162 (Đúng / Sai): How can one invest today at the 2-year forward rate of interest?

Câu 163 (Trắc nghiệm): The expectations hypothesis states that the forward interest rate is the: I) expected future spot rate II) always greater than the spot rate III) yield to maturity

A. I only

B. II only

C. III only

D. II and III only

Câu 164 (Trắc nghiệm): If the nominal interest rate per year is 10% and the inflation rate is 4%, what is the real rate of interest?

A. 10%

B. 4%

C. 5.8%

D. None of the above

Câu 165 (Điền từ / Trả lời ngắn): + rreal = (1 + rnominal)/(1 + rinflation) = 1.1/1.04 = 1.058; r real = 5.8%

Câu 166 (Trắc nghiệm): Mr. X invests $1000 at 10% nominal rate for one year. If the inflation rate is 4%, what is the real value of the investment at the end of one year?

A. $1100

B. $1000

C. $1058

D. None of the above

Câu 167 (Đúng / Sai): What forward rate is embedded in a two year zero coupon bonds with a yield to maturity of

a) three year zero coupon bond and

Đúng Sai

a) yield to maturity of 6.5%? Assume both bonds are

Đúng Sai

Câu 168 (Trắc nghiệm): Which bond is more sensitive to an interest rate change of 0.75%? Bond A: YTM = 4.00%, Maturity = 8 years, Coupon = 6% or $60, Par Value = $1,000 Bond B: YTM = 3.50%, Maturity = 5 years, Coupon = 7% or $70, Par Value = $1,000

A. A

B. B

C. Both the same

D. Cannot be determined

A. decreases from 1134 to 1108. Bond

B. decreases in price from 1158 to 1121. A

Câu 169 (Trắc nghiệm): The major secondary market for GE shares is:

A. London Stock Exchange

B. New York Stock Exchange

C. Nasdaq

D. none of the above

Câu 170 (Trắc nghiệm): Assume General Electric (GE) has about 10.3 billion shares outstanding and the stock price is $37.10. Also assume the P/E ratio is about 18.3. Calculate the market capitalization for GE. (Approximately)

A. $679 billion

B. $188 billion

C. $382 billion

D. None of the above

Câu 171 (Trắc nghiệm): The following are foreign companies that are traded on the New York Stock Exchange: I) Toyota, II) Brasil Telecom, III) Nokia, IV) Endesa, V) General Electric

A. I, II and III only

B. I,II, III and IV only

C. I,II,III and V only

D. All of the given companies are foreign companies

Câu 172 (Trắc nghiệm): If the Volume is reported in 100s as 292,059 in the Wall Street Journal quotation, then the trading volume for that day of trading is:

A. 292,059 shares

B. 2,920,590 shares

C. 29,205,900 shares

D. 292,059,000 shares

Câu 173 (Trắc nghiệm): The dividend yield reported as Yld. % in The Wall Street Journal quotation is calculated as follows:

A. (dividends/hi)

B. (dividends/lo)

C. (dividends/close)

D. None of the above

Câu 174 (Tự luận): The Wall Street Journal quotation for a company has the following values: Div: $1.12, PE:

Câu 175 (Trắc nghiệm): 3, Close: $37.22. Calculate the dividend pay out ratio for the company (Approximately).

A. 18%

B. 55%

C. 45%

D. None of the above

Câu 176 (Trắc nghiệm): If the Wall Street Journal Quotation for a company has the following values close: 55.14; Net chg: = + 1.04; then the closing price for the stock for the previous trading day was?

A. $56.18

B. $54.10

C. $55.66

D. None of the above.

Câu 177 (Trắc nghiệm): The exchange-traded fund (EFT) that tracks the Nasdaq 100 index is called:

A. SPDR

B. DIAMONDS

C. QQQQ

D. None of the above

Câu 178 (Trắc nghiệm): The following are auction markets except:

A. New York Stock Exchange

B. London Stock Exchange

C. Tokyo Stock Exchange

D. Nasdaq

Câu 179 (Trắc nghiệm): The following is an example of a dealer market:

A. New York Stock Exchange

B. London Stock Exchange

C. Tokyo Stock Exchange

D. Nasdaq

Câu 180 (Trắc nghiệm): In which of the following stock exchange specialists act as the auctioneers:

A. New York Stock Exchange

B. London Stock Exchange

C. Tokyo Stock Exchange

D. Frankfurt Stock Exchange

Câu 181 (Trắc nghiệm): In which of the following exchanges a computer acts as the auctioneer: I) New York Stock Exchange, II) London Stock Exchange, III) Tokyo Stock Exchange IV) Frankfurt Stock Exchange

A. I, II, III, and IV

B. I, III, and IV only

C. I, II, and III only

D. II, III, and IV only

Câu 182 (Trắc nghiệm): Super Computer Company's stock is selling for $100 per share today. It is expected that this

A. 20%

B. 15%

C. 10%

D. 25%

Câu 183 (Trắc nghiệm): The value of a common stock today depends on:

A. Number of shares outstanding and the number of shareholders

B. The expected future dividends and the discount rate

C. The Wall Street analysts

D. Present value of the future earnings per share

Câu 184 (Trắc nghiệm): CK Company stockholders expect to receive a year-end dividend of $5 per share and then be sold for $115 dollars per share. If the required rate of return for the stock is 20%, what is the current value of the stock?

A. $100

B. $122

C. $132

D. $110

Câu 185 (Trắc nghiệm): Deluxe Company expects to pay a dividend of $2 per share at the end of year-1, $3 per share at the end of year-2 and then be sold for $32 per share. If the required rate on the stock is 15%, what is the current value of the stock?

A. $28.20

B. $32.17

C. $32.00

D. None of the given answers

Câu 186 (Trắc nghiệm): Casino Inc. is expected to pay a dividend of $3 per share at the end of year-1 (D1) and these

A. $25

B. $50

C. $100

D. $54

Câu 187 (Đúng / Sai): The constant dividend growth formula P0 = Div1/(r - g) assumes:

a) constant rate

Đúng Sai

g) forever.

Đúng Sai

Câu 188 (Trắc nghiệm): Will Co. is expected to pay a dividend of $2 per share at the end of year -1(D 1) and the

A. 10%

B. 4%

C. 14%

D. None of the above.

Câu 189 (Trắc nghiệm): World-Tour Co. has just now paid a dividend of $2.83 per share (D0); the dividends are

A. $30

B. $56

C. $70

D. $48

Câu 190 (Trắc nghiệm): The expected rate of return or the cost of equity capital is estimated as follows:

A. Dividend yield - expected rate of growth in dividends

B. Dividend yield + expected rate of growth in dividends

C. Dividend yield/expected rate of growth in dividends

D. (Dividend yield) * (expected rate of growth in dividends)

Câu 191 (Trắc nghiệm): Dividend growth rate for a stable firm can be estimated as:

A. Plow back rate/the return on equity (ROE)

B. Plow back rate * the return on equity (ROE)

C. Plow back rate + the return on equity (ROE)

D. Plow back rate - the return on equity (ROE)

Câu 192 (Đúng / Sai): MJ Co. pays out 60% of its earnings as dividends. Its return on equity is 15%. What is the stable dividend growth rate for the firm?

g) = (1 - 0.60) * 15 = 6%

Đúng Sai

Câu 193 (Trắc nghiệm): Michigan Co. is currently paying a dividend of $2.00 per share. The dividends are expected to grow at 20% per year for the next four years and then grow 6% per year thereafter. Calculate the expected dividend in year 5.

A. $4.15

B. $2.95

C. $4.40

D. $3.81

Câu 194 (Đúng / Sai): Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are

a) rate of 18% for the next three years and then

Đúng Sai

a) constant rate of 5%

Đúng Sai

Câu 195 (Trắc nghiệm): The In-Tech Co. has just paid a dividend of $1 per share. The dividends are expected to grow at 25% per year for the next three years and at the rate of 5% per year thereafter. If the required rate of return on the stock is 18%(APR), what is the current value of the stock?

A. $12.97

B. $11.93

C. $15.20

D. None of the above

Câu 196 (Trắc nghiệm): R&D Technology Corporation has just paid a dividend of $0.50 per share. The dividends are expected to grow at 24% per year for the next two years and at 8% per year thereafter. If the required rate of return in the stock is 16% (APR), calculate the current value of the stock.

A. $1.11

B. $7.71

C. $8.82

D. None of the above

Câu 197 (Trắc nghiệm): Ocean Co. has paid a dividend $2 per share out of earnings of $4 per share. If the book value per share is $25, what is the expected growth rate in dividends (g)?

A. 16%

B. 12%

C. 8%

D. 4%

Câu 198 (Đúng / Sai): Seven-Seas Co. has paid a dividend $3 per share out of earnings of $5 per share. If the book value per share is $40 and the market price is 52.50 per share, calculate the required rate of return on the stock.

g) = (1 - 0.6) (5/40) = .05 or 5%; r = [(3 * 1.05)/52.50] + 0.05 = 0.11 = 11%.

Đúng Sai

Câu 199 (Đúng / Sai): River Co. has paid a dividend $2 per share out of earnings of $4 per share. If the book value per share is $25 and is currently selling for $40 per share, calculate the required rate of return on the stock.

g) = (1 - 0.5)(4/25) = 0.08 or 8%; r = [(2 * 1.08)/40] + 0.08 = 13.4%.

Đúng Sai

Câu 200 (Đúng / Sai): Lake Co. has paid a dividend $3 per share out of earnings of $5 per share. If the book value per share is $40, what is the expected growth rate in dividends?

g) = (1 - 3/5)(5/40) = .05 or 5%.

Đúng Sai

Câu 201 (Trắc nghiệm): The growth rate in dividends is a function of two ratios. They are:

A. ROA and ROE.

B. Dividend yield and growth rate in dividends.

C. ROE and the Retention Ratio.

D. Book value per share and EPS.

Câu 202 (Trắc nghiệm): Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company.

A. $6 per share

B. $10 per share

C. $0.20 per share

D. $5 per share

Câu 203 (Trắc nghiệm): Which of the following formulas regarding earnings to price ratio is true:

A. EPS/Po = r[1 + (PVGO/Po]

B. EPS/Po = r[1 - (PVGO/Po)]

C. EPS/Po = [r + (PVGO/Po)]

D. EPS/Po = [r + (1 + (PVGO/Po)]/r

Câu 204 (Trắc nghiệm): Generally high growth stocks pay:

A. Low or no dividends

B. High dividends

C. Erratic dividends

D. Both

A. and C

Câu 205 (Trắc nghiệm): A high proportion of the value of a growth stock comes from:

A. Past dividend payments

B. Past earnings

C. PVGO (Present Value of the Growth Opportunities)

D. Both

A. and B

Câu 206 (Trắc nghiệm): Summer Co. is expected to pay a dividend or $4.00 per share out of earnings of $7.50 per

A. $80

B. $30

C. $50

D. $26

Câu 207 (Trắc nghiệm): Parcel Corporation is expected to pay a dividend of $5 per share next year, and the dividends

A. $100

B. $76.92

C. $23.08

D. None of the above

Câu 208 (Trắc nghiệm): Which of the following stocks is (are) an income stock(s)?

A. Dow Chemicals

B. Starbucks

C. Microsoft

D. None of the above

Câu 209 (Trắc nghiệm): The following stocks are examples of income stocks except:

A. Cummins, Inc.

B. Dow Chemicals

C. Starbucks

D. All of the above are income stocks

Câu 210 (Trắc nghiệm): Which of the following stocks is/are a growth stock(s)?

A. Unilever

B. Cummins, Inc

C. Starbucks

D. All of the above are growth stocks

Câu 211 (Trắc nghiệm): The following stocks are examples of growth stocks except:

A. Scottish Power

B. e2v Technologies

C. Microsoft

D. Starbucks

Câu 212 (Trắc nghiệm): Universal Air is a no growth firm and has two million shares outstanding. It is expected to

A. $200

B. $150

C. $100

D. $50

Câu 213 (Trắc nghiệm): A firm forecasts of cash flows ($millions) in years 1 thru 4 to be $120, $130, 135, and $137, respectively. If the project ends at the end of the fourth year, what is the horizon value given

A. $0

B. $1.37

C. $1.96

D. $4.87

Câu 214 (Trắc nghiệm): A company forecasts growth of 6% for 5 years and 3% thereafter. Given last year's cash flow was $100, what is the horizon value if the company cost of capital is 8%?

A. $0

B. $1,672

C. $2,000

D. $2,676

Câu 215 (Trắc nghiệm): Which of the following investment rules does not use the time value of the money concept?

A. Net present value

B. Internal rate of return

C. The payback period

D. All of the above use the time value concept

Câu 216 (Trắc nghiệm): Suppose a firm has a $100 million in excess cash. It could:

A. Invest the funds in projects with positive NPVs

B. Pay high dividends to the shareholders

C. Buy another firm

D. All of the above

Câu 217 (Trắc nghiệm): The following are measures used by firms when making capital budgeting decisions except:

A. Payback period

B. Internal rate of return

C. P/E ratio

D. Net present value

Câu 218 (Trắc nghiệm): The survey of CFOs indicates that NPV method is always, or almost always, used for evaluating investment projects by:

A. 12% of firms

B. 20% of firms

C. 57% of firms

D. 75% of firms

Câu 219 (Trắc nghiệm): The survey of CFOs indicates that IRR method is used for evaluating investment projects by:

A. 12% of firms

B. 20% of firms

C. 76% of firms

D. 57% of firms

Câu 220 (Trắc nghiệm): Which of the following investment rules has value adding-up property?

A. The payback period method

B. Net present value method

C. The book rate of return method

D. The internal rate of return method

Câu 221 (Trắc nghiệm): You are given a job to make a decision on project X, which is composed of three independent

A. Accept the firm's joint project as it has a positive NPV

B. Reject the joint project

C. Break up the project into its components: accept

A. and

C. and reject B

D. None of the above

Câu 222 (Trắc nghiệm): If the NPV of project A is + $120, and that of project B is -$40 and that of project C is + $40, what is the NPV of the combined project?

A. +$100

B. -$40

C. +$70

D. +$120

B. +

C. = 120 + 40 - 40 = 120

Câu 223 (Trắc nghiệm): The net present value of a project depends upon:

A. company's choice of accounting method

B. manager's tastes and preferences

C. project's cash flows and opportunity cost of capital

D. all of the above

Câu 224 (Trắc nghiệm): Which of the following investment rules may not use all possible cash flows in its calculations?

A. NPV

B. Payback period

C. IRR

D. All of the above

Câu 225 (Trắc nghiệm): The payback period rule:

A. Varies the cut-off point with the interest rate.

B. Determines a cut-off point so that all projects accepted by the NPV rule will be accepted by the

C. Requires an arbitrary choice of a cut-off point.

D. Both

A. and

Câu 226 (Trắc nghiệm): The payback period rule accepts all projects for which the payback period is:

A. Greater than the cut-off value

B. Less than the cut-off value

C. Is positive

D. An integer

Câu 227 (Trắc nghiệm): The main advantage of the payback rule is:

A. Adjustment for uncertainty of early cash flows

B. It is simple to use

C. Does not discount cash flows

D. Both

A. and C

Câu 228 (Trắc nghiệm): The following are disadvantages of using the payback rule except:

A. The payback rule ignores all cash flow after the cutoff date

B. The payback rule does not use the time value of money

C. The payback period is easy to calculate and use

D. The payback rule does not have the value additive property

Câu 229 (Trắc nghiệm): Which of the following statements regarding the discounted payback period rule is true?

A. The discounted payback rule uses the time value of money concept.

B. The discounted payback rule is better than the NPV rule.

C. The discounted payback rule considers all cash flows.

D. The discounted payback rule exhibits the value additive property.

Câu 230 (Trắc nghiệm): Given the following cash flows for project A: C0 = -1000, C1 = +600 ,C2 = +400, and C3 = +1500, calculate the payback period.

A. One year

B. Two years

C. Three years

D. None of the above

Câu 231 (Trắc nghiệm): The cost of a new machine is $250,000. The machine has a 3-year life and no salvage value. If the cash flow each year is equal to 40% of the cost of the machine, calculate the payback period for the project:

A. 2 years

B. 2.5 years

C. 3 years

D. Cannot be determined because of insufficient data

Câu 232 (Trắc nghiệm): Given the following cash flows for project Z: C0 = -1,000, C1 = 600, C2 = 720 and C3 = 2000,

A. 1 year

B. 2 years

C. 3 years

D. None of the above

Câu 233 (Điền từ / Trả lời ngắn): = (600/1.2) + (720/1.2^2); the discounted payback = 2 years

Câu 234 (Trắc nghiệm): Internal rate of return (IRR) method is also called:

A. Discounted payback period method

B. Discounted cash-flow (DCF) rate of return method

C. Modified internal rate of return (MIRR) method

D. None of the above

Câu 235 (Trắc nghiệm): The quickest way to calculate the internal rate of return (IRR) of a project is by:

A. Trial and error method

B. Using the graphical method

C. Using a financial calculator

D. Guessing the IRR

Câu 236 (Trắc nghiệm): If an investment project (normal project) has IRR equal to the cost of capital, the NPV for that project is:

A. Positive

B. Negative

C. Zero

D. Unable to determine

Câu 237 (Trắc nghiệm): Given the following cash flows for Project M: C0 = -1,000, C1 = +200, C2 = +700, C3 = +698, calculate the IRR for the project.

A. 23%

B. 21%

C. 19%

D. None of the above

Câu 238 (Trắc nghiệm): The IRR is defined as:

A. The discount rate that makes the NPV equal to zero

B. The difference between the cost of capital and the present value of the cash flows

C. The discount rate used in the NPV method

D. The discount rate used in the discounted payback period method

Câu 239 (Trắc nghiệm): Which of the following methods of evaluating capital investment projects incorporates the time value of money concept? I) Payback Period, II) Discounted Payback Period, III) Net Present Value (NPV), IV) Internal Rate of Return

A. I, II, and III only

B. II, III, and IV only

C. III and IV only

D. I, II, III, and IV

Câu 240 (Trắc nghiệm): Driscoll Company is considering investing in a new project. The project will need an initial investment of $2,400,000 and will generate $1,200,000 (after-tax) cash flows for three years. Calculate the IRR for the project.

A. 14.5%

B. 18.6%

C. 20.2%

D. 23.4%

Câu 241 (Tự luận): 4%.

Câu 242 (Trắc nghiệm): The following are some of the shortcomings of the IRR method except:

A. IRR is conceptually easy to communicate

B. Projects can have multiple IRRs

C. IRR method cannot distinguish between a borrowing project and a lending project

D. It is very cumbersome to evaluate mutually exclusive projects using the IRR method

Câu 243 (Trắc nghiệm): Project X has the following cash flows: C0 = +2000, C1 = -1,300 and C2 = -1,500. If the IRR of the project is 25% and if the cost of capital is 18%, you would:

A. Accept the project

B. Reject the project

Câu 244 (Trắc nghiệm): Project X has the following cash flows: C0 = +2000, C1 = -1,150 and C2 = -1,150. If the IRR of the project is 9.85% and if the cost of capital is 12%, you would:

A. Accept the project

B. Reject the project

Câu 245 (Trắc nghiệm): If the sign of the cash flows for a project changes two times then the project has:

A. one IRR

B. two IRRs

C. three IRRs

D. None of the above

Câu 246 (Trắc nghiệm): Project Y has following cash flows: C0 = -800; C1 = +5,000; C2 = -5,000; Calculate the IRRs for the project:

A. 25% & 400%

B. 125% & 500%

C. -44% & 11.6%

D. None of the above

Câu 247 (Tự luận): + IRR = [5000 + SQRT{ 5000^2 - (4) * (800) * (5000)}]/(2 * 800) = 5; IRR = 4 = 400%

Câu 248 (Điền từ / Trả lời ngắn): + IRR = [5000 + SQRT{ 5000^2 - (4) * (800) * (5000)}]/(2 * 800) = 1.25; IRR = 0.25 = 25%

Câu 249 (Trắc nghiệm): Music Company is considering investing in a new project. The project will need an initial investment of $2,400,000 and will generate $1,200,000 (after-tax) cash flows for three years. Calculate the NPV for the project if the cost of capital is 15%.

A. $169, 935

B. $1,200,000

C. $339,870

D. $125,846

Câu 250 (Trắc nghiệm): Muscle Company is investing in a giant crane. It is expected to cost 6.5 million in initial investment and it is expected to generate an end of year cash flow of 3.0 million each year for three years. Calculate the IRR approximately.

A. 14.6 %

B. 16.4 %

C. 18.2 %

D. 22.1%

Câu 251 (Điền từ / Trả lời ngắn): = -6.5 + ((3/(1 + IRR) + (3/((1 + IRR)^2)) + (3/((1 + IRR)^3))); IRR = 18.2% (by trial & error)

Câu 252 (Trắc nghiệm): A project will have only one internal rate of return if:

A. The net present value is positive

B. The net present value is negative

C. The cash flows decline over the life of the project

D. There is a one sign change in the cash flows

Câu 253 (Trắc nghiệm): Story Company is investing in a giant crane. It is expected to cost 6.0 million in initial investment and it is expected to generate an end of year cash flow of 3.0 million each year for three years. Calculate the NPV at 12% (approximately).

A. 2.4 million

B. 1.2. million

C. 0.80 million

D. 0.20 million

Câu 254 (Trắc nghiệm): Dry-Sand Company is considering investing in a new project. The project will need an initial investment of $1,200,000 and will generate $600,000 (after-tax) cash flows for three years. Calculate the MIRR (modified internal rate of return) for the project if the cost of capital is 15%.

A. 14.5%

B. 18.6%

C. 20.2%

D. 23.4%

Câu 255 (Trắc nghiệm): Mass Company is investing in a giant crane. It is expected to cost 6.6 million in initial investment and it is expected to generate an end of year cash flow of 3.0 million each year for three years. Calculate the MIRR for the project if the cost of capital is 12% APR.

A. 17.3%

B. 15.3%

C. 23.8%

D. 22.1%

Câu 256 (Trắc nghiệm): Given the following cash flow for project A: C0 = -3,000, C1 = +500, C2 = +1,500 and C3 =

A. $5,000

B. $2,352

C. $3,201

D. $1,857

Câu 257 (Trắc nghiệm): Profitability index is useful under:

A. Capital rationing

B. Mutually exclusive projects

C. Non-normal projects

D. None of the above

Câu 258 (Trắc nghiệm): Profitability index is the ratio of:

A. Future value of cash flows to investment

B. Net present value of cash flows to investment

C. Net present value of cash flows to IRR

D. Present value of cash flows to IRR

Câu 259 (Trắc nghiệm): The following table gives the available projects for a firm.

A. 200

B. 283

C. 307

D. None of the above

A. +

B. +

C. +

F. = 140 + 70 + 65 + 32 = 307; Total Investment = 90 + 20 + 60 + 40 = 210

Câu 260 (Trắc nghiệm): The firm has only twenty million to invest. What is the maximum NPV that the company can obtain?

A. 3.5

B. 4.0

C. 4.5

D. None of the above

A. +

C. +

D. +

E. +

F. = 4.5; Total Investment = 5 + 5 + 1 + 2 + 7 = $20 Million

Câu 261 (Trắc nghiệm): Benefit-cost ratio is defined as the ratio of:

A. Net present value cash flow to initial investment

B. Present value of cash flow to initial investment

C. Net present value of cash flow to IRR

D. Present value of cash flow to IRR

Câu 262 (Trắc nghiệm): The profitability index can be used for ranking projects under:

A. Soft capital rationing

B. Hard capital rationing

C. Capital rationing at t = 0

D. Both

A. and B

Câu 263 (Trắc nghiệm): What would be the weighted average profitability index of the following two investments, given the firm only has $250 to invest? Project A: Cost = $120, NPV = 80 Project B: Cost = $100, NPV = 75

A. 62

B. 67

C. 75

D. 79

Câu 264 (Trắc nghiệm): What is the profitability index of an investment with cash flows in years zero thru 4 of - 340,

A. 15

B. 22

C. 35

D. 42

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