公司金融双语期末复习资料
金融学(双语)复习资料第1章
TEST BANKThis part of the Instructor's Manual presents a test bank of true/false statements, multiple choice questions, and, where appropriate, additional problems. The problems are similarto those in the text and may be used for additional assignments or test questions.Chapter 1THE ROLE OF FINANCIAL MARKETSTRUE/FALSEF 1. The power to create money is given by the Constitution to the Federal Reserve.F 2. Since M-2 excludes time deposits, M-2 is a less comprehensive measure of the money supply than M-1.T 3. When individuals withdraw cash from checking accounts, the money supply is unaffected.F 4. The yield curve relates risk and interest rates.T 5. During most historical periods, the yield curve has been positively sloped.T 6. A negatively sloped yield curve is associated with the anticipation that interest rates will decline.F 7. Only paper can perform the function of money.T 8. Stocks and bonds are an alternative to money as astore of value.T 9. What serves for money in France may not be money in another country.F 10. The U.S. Treasury creates most of the nation's money supply.F 11. When individuals deposit cash in a demand deposit, the money supply is reduced.F 12. M-1 includes savings accounts in commercial banks.T 13. A positively-sloped yield curve forecasts the interest rates will rise.F 14. Since investors prefer short-term securities tolonger-term securities, the yield curve is always positively sloped.MULTIPLE CHOICEa 1. M-1 includes coins, currency, and .a. demand depositsb. savings accountsc. certificates of depositd. time depositsb 2. The power to create money is given by the Constitution toa. state governmentsb. Congressc. the Federal Reserved. commercial banksc 3. The term structure of interest rates relatesa. risk and yieldsb. yields and bond ratingsc. term and yieldsd. stock and bond yieldsb 4. The term structure of interest rates indicates thea. relationship between risk and yieldsb. relationship between the time and yieldsc. the difference between borrowing and lendingd. the difference between the yield (interest rate)on government and corporate debtc 5. Money serves asa. a substitute for equityb. a precaution against inflationc. a medium of exchanged. a risk-free liabilityc 6. An asset is liquid if it is easilya. converted into cashb. marketedc. converted into cash without lossd. soldd 7. M-2 includes1. demand deposits2. savings accounts3. small certificates of deposita. 1 and 2b. 2 and 3c. 1 and 3d. all three。
公司金融期末复习
公司金融期末复习Problem:1.Function of financial market and list some financial intermediarieAnswer1:A.contributing to higher production and efficiency in the economyB.Improving the well-being of consumers by allowing them to their purchases better Answer2:(1) facilitate investment and financing.(2) a reasonable guidance of capital flow, which contributes to the concentration of capital and promotes the transfer of high-efficiency units.(3) convenient and flexible turnover of funds.(4) to achieve risk diversification, reduce transaction costs. (5) are conducive to enhancing the flexibility of macro-control. (6) to help strengthen economic ties between regions and countries. Intermediaries: BanksBuilding societies Credit unionsFinancial advisers or brokers Insurance companiesCollective investment schemes Pension funds2.Why profit maximization is not an ideal corporate finance objective?(1)The primary goal of corporate finance is maximize or increase shareholder value not profit(2)To a skilled accountant, however, a decision that increases profits under one set of accounting rules can reduce it under another.(3)Accounting profits are not necessarily the same as cash flows.(4)The problem with profit maximization as a goal is that it does not tell us when cash flows are to be received.(5)Profit maximization ignores the uncertainty or risk associated with cash flows.总：For the fact that a firm cannot survive with mere profitmaximization ,but must increase long-term security through investment and meeting shareholder expectations. This will increase their productive capacity for the future as well as encourage the risky capital investment of the shareholders.3.Characteristics of business organization:(1)sole proprietorship: A business owned and managed by a single individual. Features: Cheapest to form. no formal charter, few government regulations Pays no corporate income taxesUnlimited liability for business debts and obligations. Its life islimited by the life of the sole proprietorThe money raised is limited by the proprietor’s personal wealth(2)partnership:A business formed by two or more individuals or entities.General partnership: All partners share in gains or losses, all have unlimited liability for all partnership debts.Limited partnership: One or more general partners will run the business and have unlimited liability. The limited partner's liability is limited to their contribution to the partnership. Features: Often inexpensive and easy to form Difficult to transfer ownershipDifficult to raise large amounts of cash Income is taxed as personal income(3)Corporati on:Is a legal “person” separate and distinct from its owners . Features: Limited liability for stockholders. Unlimited life for the business.Ownership can be easily transferred.These characteristics make it easier for corporations to raise capital. The disadvantage to corporations is double taxation.4.Why separation of ownership and management is necessary and desirableProfessional Managerial Skills:The growth of a company comes with the demand for different skills to manage the operations of the company, meaning the owners of a company may nothave all of the necessary skills and experience needed for certain managerial roles. Creating a management team separate from the ownership enables the company to be run by professionals with diverse skills such as in marketing, corporate financing and public relations. Easier Performance Appraisals:Performance appraisals are an essential part of good corporate governance, as they enable managers to evaluate the company and to point out areas of improvement. It can be complex to evaluate performance where there is a lack of separation of ownership and management. But separation makes it easier for the board and those in management to be evaluated objectively. Owners can freely deal with the chief executive officer and other senior managers, even after the appraisals.Capital UtilizationCapital utilization involves the arrangements that determine the way in which resources and assets are managed in a company. Separating personal assets and liabilities from the business assets and liabilities may prove difficult for company owners. Managers come in to devise ways in which business assets are managed to generate the highest profits for all shareholders. Checks and BalancesSeparate managers and owners in a firm ensure that a system of checks and balances is in place. Managers act as a buffer between the company and stakeholders such that they can alleviate negative impacts of stakeholder activities and avoid hitches in public relations. Managers are well suited to put in place strategies that will lessen losses to the rest of the stakeholders as a result of the actions of another stakeholder.5.What is corporate finance and describe their decisions?(Shenli)Corporate finance is the study of the answers to the following questions: (1) What long-term investments should you take on?(2)Where will you get the long-term financing to pay for your investment?(3) How will you manage your everyday financial activities?(WIKI)Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. InvestmentDecisions: Concerning non-current assent or capital budgeting. Evaluating the size, timing and risk of future cash flow. Cash flow versus accounting profitFinancing Decisions: Determine how the assets will be financed. What is the best type of financing? What is the best financing mix?What is the best dividend policy (dividend decision)? Capital structureAsset Management Decisions:How do we manage existing assets efficiently?Greater emphasis on current asset management than fixed asset management.Working capital management.6.Evaluate IRR ruleFor the fact that internal rate of return is a rate quantity,it always is used to be an excellent indicator of the efficiency, quality, or yield of an investment.However,As an investment decision tool, the calculated IRR should not be used to rate mutually exclusive projects, but only to decide whether a single project is worth investing in.The IRR does give you a rate of return,but the IRR could be for a small investment or for only a short period of time.7.The characteristics of bond,stock and preferred?Bond: A bond is a long-term debt instrument issued by a corporation or government. The Face/par/maturity value (MV) [or face value] of a bond is the stated value.The bond’s coupon rate is the stated rate of interest; the annualinterest payment divided by the bond’s face value.The discount rate (capitalization rate) is dependent on the risk of the bond and is composed of the risk-free rate plus a premium for risk.In general, debt securities are characterized by the following attributes:- Creditors (or lenders or bondholders) generally have no voting rights. - Payment of interest on debt is a tax deductible business expense.- Unpaid debt is a liability, which means that default subjects the firm to legal action, by the creditors. Ultimately, financial distress may result in bankruptcy filingPreferred stock :Preferred Stock is a type of stock that promises a (usually) fixed dividend, but at the discretion of the board of directors.Preferred Stock has preference over common stock in the payment of dividends and claims on assets.Preferred stock represents equity in the firm, but has features of debt; stated yield, preference in terms of cash flows and liquidation, and some issues are callable and/or convertible into common shares.8.Describe net operation theory ,traditional theory,MMwithout(with)corporate tax,with bankruptcy and agency costtheory9.Describe business risk and DFLBusiness risk:It is the risk associated with operating earnings.Operating earnings are risky because total revenues are risky ,as are the costs of producing revenues.Financial risk is the associated with how a company finances its operations.DFL(degree of financial leverage):is the sensitivity of the cash flows available to owners when operating income changes.DFL=(Percentage change in net income)/(Percentage change in operating income)10.Which cash flow should(not) be taken into account when estimate project cash flowsCash flow from assets = + operating cash flow - capital spending - additions to net working capital Operating cash flow = + earnings before interest and taxes (EBIT) + depreciation - taxesShould be taken into:opportunity cost ,side effect,spillovereffect,NWC(Net Working Capital),Taxes,operating cash flow,capital spending Should not be taken into:sunk cost,financial cost,Calculation:PV of a perpetuity = P / iIn this formula "P" represents your annual payment and "i" represents your interest or discount rate. PV of a growing perpetuity = P / (i - g)In this formula "P" represents your annual payment, "i" represents your interest or discount rate and "g" represents the growth rate.2.Valuation of bond(half year)and stock3.Investment criterion IRR,NPV,PBP,PINPV:Giventhe (period, cash flow) pairs (, present valueis given by:) whereis the total number of periods, the netIRR:NPV=0,i=IRRGiven the (period, cash flow) pairs(, present valueis given by:)whereis the total number of periods, the netPBP:Payback Period = W + (X - Y) / ZW is the year before which the investment value is crossed in cumulative cash flows X is the initial investment or the initial cash outlayY is the cumulative cash flow just before the investment value is crossed in cumulative cash flows Z is the cash flow of the year in which the investment value is crossed in the cumulative cash flows PI:PI=(PV of future cash flow )/(Initial investment)=1+NPV/(Initial investment)4.Expanding and Replacement:;EAC:EAC = NPV/A t, r where A= the present value of an annuity factor t = number of periods r = interest rateA t, r=(1-1/(1+r)^t)/r5.WACC,CAPM:WACC:whereis the number of sources of capital (securities, types of liabilities);is the requiredrate of return for security; andis the market value of all outstanding securities .where D is the total debt, E is the total shareholder’s equity, Ke is the cost of equity, and Kd is thecost of debt. Tax effects[edit]Tax effects can be incorporated into this formula. For example, the WACC for a company financedby one type of shares with the total market value ofand cost of equity and one typeof bonds with the total market value of and cost of debt , in a country with corporatetax rate, is calculated as:CAPM:where:is the expected return on the capital assetis the risk-free rate of interest such as interest arising from government bonds(the beta) is the sensitivity of the expected excess asset returns to the expected excess marketreturns, or also,is the expected return of the marketis sometimes known as the market premium (the difference between theexpected market rate of return and the risk-free rate of return).is also known as the risk premiumRestated, in terms of risk premium, we find that:Modified formula:"where:is required return on security iis risk-free rateis general market risk premiumis risk premium for small sizeis risk premium due to company-specific risk factor6.DOL,DFL,DTL,EPS-EBITDOL:DOL =% change in EBIT / % change in sales DFL:DFL =% change in EPS / % change in EBIT DTL:DTL =% change in EPS / % change in sales EPS:earnings per shareEBIT:operating profit7.MM without and with corporate tax;arbitrageWithout taxesProposition Iwhereis the value of an unlevered firm = price of buying a firm composed only of equity, and is the value of a levered firm = price of buying a firm that is composed of some mix of debt and equity. Another word for levered is geared, which has the same meaning.Proposition IIwhereis the required rate of return on equity, or cost of equity.is the company unlevered cost of capital (ie assume no leverage).is the required rate of return on borrowings, or cost of debt.is the debt-to-equity ratio.With taxesProposition Iwhereis the value of a levered firm.is the value of an unlevered firm. is the tax rate () x the value of debt (D)the term assumes debt is perpetualProposition IIwhere:is the required rate of return on equity, or cost of levered equity = unlevered equity +financing premium.is the company cost of equity capital with no leverage (unlevered cost of equity, or return onassets with D/E = 0).is the required rate of return on borrowings, or cost of debt.is the debt-to-equity ratio. is the tax rate.。
金融学(双语)复习资料第5章
Chapter 5错误！未指定书签。
THE FEDERAL RESERVETRUE/FALSEF 1. The power to create money is given by the Constitution to theFederal Reserve.创造货币的权力是宪法赋予美联储T 2. When corporations retire (pay off) loans from commercial banks, excess reserves are increased.当企业退休从商业银行（支付）的贷款，超额准备金增加。
F 3. When the general public uses money in checking accountsto purchase stock issued by corporations, the required reserves of banks are reduced.当一般公众使用的钱在支票账户购买公司发行的股票，所需要的银行的准备金就会减少F 4. Only large commercial banks are subject to the regulation ofthe Federal Reserve.只有大型商业银行受到美联储的监管F 5. When the Federal Reserve sells securities, the money supplyis increased.当美联储出售证券，货币供应量增加T 6. When the Federal Reserve buys securities, the reserves of banks are increased.当美联储购买证券，银行的准备金增加T 7. Open market operations is a more flexible tool of monetary policy than the reserve requirements.公开市场操作是货币政策的一个更灵活的工具，比准备金要求T 8. Reserve requirements are infrequently changed to affect commercial bank lending.准备金要求频繁改变会影响商业银行贷款T 9. The Open Market Committee has twelve members that include the Board of Governors.公开市场委员会有十二名成员，其中包括理事会F 10. The presidents of the District Banks elect the Board ofGovernors of the Federal Reserve.该地区银行的总统选举联邦储备理事会F 11. The federal funds rate is the interest rate the FederalReserve charges banks when they borrow reserves.联邦基金利率是利率联邦储备银行收费时，他们借入储备F 12. If the Treasury borrows from the Federal Reserve, thelending capacity of banks is reduced.如果财政部从美联储借，银行的放贷能力降低T 13. If the Treasury sells debt that is purchased by corporations and uses the funds to purchase military equipment, theexcess reserves of the banking system are not affected.如果财政部出售债券是由公司购买并使用的资金购买军事装备，多余的银行体系储备不受影响T 14. Deflation is a period of declining prices.通货紧缩是一个时期价格下跌F 15. During a period of recession, the Fed sells securities.在衰退期，美联储出售证券T 16. The Consumer Price Index (CPI) is a measure of inflation.居民消费价格指数（ CPI）是衡量通货膨胀的T 17. The Federal Reserve is independent of the U.S. Treasury and is owned by commercial banks.美联储是独立于美国财政部，由商业银行所拥有F 18. The President of the United States appoints the Federal OpenMarket Committee.美国总统任命的联邦公开市场委员会F 19. Since the reserves of commercial banks earn interest, thereis an incentive to hold excess reserves.由于商业银行的准备金赚取利息，还有持有超额准备金的奖励T 20. Open market operations is a more flexible tool of monetary policy than the discount rate.公开市场操作是货币政策的一个更灵活的工具比贴现率T 21. Commercial banks may buy and sell reserves in the federal funds market.商业银行可以在联邦基金市场上购买和出售储备T 22. If the Treasury issues new bonds that are purchased by the general public, the money supply is reduced if the Treasurydeposits the funds in the Federal Reserve.如果财政部发布了由广大市民购买新的债券，货币供应量减少，如果国库存款资金在美联储F 23. Recession is a period of falling prices.经济衰退是一个时期的价格下跌F 24. When commercial banks grant loans to the public, theirtotal reserves are reduced.当商业银行发放贷款的市民，他们的总储量减少MULTIPLE CHOICEa 1. Withdrawing cash from a checking account does not decrease 从支票帐户提取现金不减少a. the money supply货币供应量b. demand deposits活期存款c. total reserves总储量d. excess reserves超额准备金d 2. Excess reserves are affected by超额准备金受1. reserve requirements准备金要求2. the repayment of existing bank loans现有偿还银行贷款3. cash withdrawals现金提款d. 1, 2, and 3b 3. When commercial banks grant loans,当商业银行发放贷款a. the money supply is reduced货币供应量减少b. the money supply is increased货币供应量增加c. total reserves increase总储量增加d. total reserves decrease总储量减少b 4. If deposits are withdrawn from a commercial bank, it mayobtain reserves by如果存款从商业银行撤出，它可能是由获得储备a. acquiring an asset收购资产b. borrowing in the federal funds market在联邦基金市场借款c. lending funds in the federal funds market在联邦基金市场资金d. liquidating a liability清算负债a 5. When a commercial bank receives a cash deposit,当商业银行收到的现金存款1. its required reserves increase其所需的储备增加2. its required reserves decrease其所需的储备减少3. its total reserves increase其总储量增加4. its total reserves decrease其总储量减少a. 1 and 3b 6. Commercial banks lend excess reserves for one day in the商业银行放贷超额储备为一天中的a. stock market股市b. federal funds market联邦基金市场c. reserves market储备市场d. over-the-counter market过？的？柜台市场b 7. The Federal Reserve increases reserves by美国联邦储备局增加储备a. selling securities出售证券b. buying securities买证券c. raising reserve requirements提高存款准备金率d. raising the discount rate提高贴现率b 8. The Federal Reserve美国联邦储备委员会a. is part of the U.S. Treasury是美国财政部的一部分b. is owned by member banks由成员银行拥有c. is the nation's largest commercial bank是全国最大的商业银行d. lends funds to corporations借出资金的公司b 9. By lowering the discount rate, the Federal Reserve通过降低贴现率，美联储a. discourages commercial banks from lending鼓励商业银行从贷款b. encourages commercial banks to borrow reserves鼓励商业银行借入储备c. discourages depositors from withdrawing funds鼓励存户提款d. contracts the money supply收缩货币供应量d 10. The purpose of the Federal Reserve is to美联储的目的是a. finance government operations金融政府运作b. protect investors from bank failures保护投资者免受银行倒闭c. protect deposits from bank failures保护存款银行倒闭d. control the supply of money and credit控制货币信贷总量c 11. The structure of the Federal Reserve includes美联储的结构包括1. all commercial banks各商业银行2. the twelve district banks在12家地方银行3. the Board of Governors 理事会c. 2 and 3c 12. The members of the Board of Governors area. elected by the member banksb. appointed by the Senatec. appointed by the President of the United Statesd. elected by the Federal Open Market Committeec 13. During a period of recession, a federal government surplusshould retire debt oweda. the Federal Reserveb. commercial banksc. the general publicd. the Federal Deposit Insurance Corporationa 14. The Federal Reserve may contract the money supply by1. selling securities2. buying securities3. raising reserve requirements4. lowering reserve requirementsa. 1 and 3b. 1 and 4c. 2 and 3d. 2 and 4理事会的成员是由成员银行推选由参议院任命由美国总统任命联邦公开市场委员会选举产生在衰退期，联邦政府的盈余应该退休欠下的债美联储商业银行广大市民美国联邦存款保险公司美联储可能通过收缩货币供应量出售证券买证券提高存款准备金率降低准备金要求如果联邦政府经营赤字，并从商业银行借入，总存款不受影响总存款增加超额准备金减少超额准备金均有所下降d 15. If the federal government runs a deficit and borrows fromcommercial banks,1. total deposits are not affected2. total deposits are increased3. excess reserves are reduced4. excess reserves are decreaseda. 1 and 3b. 1 and 4c. 2 and 3d. 2 and 4c 16. If the federal government runs a deficit and finances thedeficit by borrowing from the Federal Reserve,1. the reserves of commercial banks are reduced2. the reserves of commercial banks are increased3. the required reserves of commercial banks areincreased4. the required reserves of commercial banks arereduceda. 1 and 3b. 1 and 4c. 2 and 3d. 2 and 4b 17. Anticipation of inflation discourages1. saving2. borrowing3. lending4. purchasing goodsa. 1 and 2b. 1 and 3c. 2 and 3d. 3 and 4b 18. If the federal government runs a surplus,a. expenditures exceed taxesb. receipts exceed disbursementsc. debt must be issuedd. the Federal Reserve buys bondsb 19. Recession is a period ofa. declining pricesb. declining employmentc. declining unemploymentd. rising interest ratesb 20. The Board of Governorsa. manages the nation's stock of goldb. has the substantive control over the money supplyc. controls the U. S. Treasuryd. is appointed by the U. S. Treasurera 21. If commercial banks grant loans,a. the money supply is increasedb. total reserves are increasedc. excess reserves are increasedd. the money supply is reducedd 22. Commercial banks may borrow reserves from each other in thea. reserves marketb. stock marketc. bank marketd. federal funds marketa 23. By selling securities to the general public, the FEDa. reduces the money supplyb. raises commercial banks' depositsc. increases the money supplyd. increases banks' excess reservesa 24. The tools of monetary policy includea. open market operationsb. the purchase of corporate stockc. the federal government deficitd. taxationb 25. If the federal government runs a deficit,a. taxes exceed expendituresb. expenditures exceed taxesc. receipts exceed taxesd. taxes exceed revenuesb 26. Anticipation of inflation encouragesa. lendingb. borrowingc. retiring debtd. savingc 27. During a period of recession the Federal Reserve1. increases the federal funds rate2. buys government securities3. sells government securities4. lowers the federal funds area. 1 and 2b. 1 and 3c. 2 and 4d. 3 and 4SUPPLEMENTARY QUESTIONS1. If the reserve requirement for demand deposits is 10 percent,what is the maximum change in the money supply that thebanking system can create ifa. the Federal Reserve puts $1,000,000 of new reserves inthe banking systemb. $1,000,000 in cash is deposited in checking accountsc. General Motors borrows $1,000,000 from an insurancecompany?Answers:a. new excess reserves: $1,000,000maximum possible expansion in the money supply:$1,000,000/.1 = $10,000,000b. new excess reserves: $1,000,000 - 100,000 = $900,000maximum possible expansion in the money supply:$900,000/.1 = $9,000,000c. new excess reserves: $0maximum possible expansion in the money supply:$0/.1 = $0(Borrowing from the non-bank public does not affect thebanking system's ability to create new money.)2. What is the effect on (1) demand deposits, (2) requiredreserves, and (3) excess reserves of banks given thefollowing transactions?a. The general public builds up its holdings of cash bywithdrawing funds in checking accounts.b. After Christmas the general public deposits cash in checkingaccounts in commercial banks. (How may seasonal changes in the public's need for cash alter banks' ability to lend?)c. Corporations borrow from commercial banks.d. State and local governments issue debt securities that arepurchased by commercial banks.e. Homeowners borrow from commercial banks to finance homeimprovements. (Are there any differences on the expansion ofthe money supply in questions (c), (d), and (e)?)f. A bank in California with excess reserves lends these fundsthrough the federal funds market to a bank in Maine that hasinsufficient reserves.g. Corporations issue short-term securities that are purchased bythe general public.h. Corporations retire (i.e., pay off) loans from commercial banks.i. The Federal Reserve buys Treasury bills that are sold by thegeneral public.j. The Federal Reserve raises the discount rate, and banks retire debt owed the Federal Reserve.k. The Federal Reserve raises the reserve requirement on demand deposits.l. The Treasury borrows from the banks to finance payments.m. The federal government runs a deficit and borrows the funds from the general public.n. The federal government runs a deficit and borrows the funds from the Federal Reserve.Answers:a. Demand deposits - lowerRequired reserves - lowerExcess reserves - lowerb. Demand deposits - higherRequired reserves - higherExcess reserves - higherThese two questions illustrate that a seasonal flow of deposits into or out of the banking system will affect the reserves of the banking system. Unless the banks are able to find liquidity elsewhere (e.g., the Federal Reserve), such seasonal changes in reserves may produce fluctuations in the supply of credit.c. Demand deposits - higherRequired reserves - higherExcess reserves - lowerd. Demand deposits - higherRequired reserves - higherExcess reserves - lowere. Demand deposits - higherRequired reserves - higherExcess reserves - lowerThese three questions illustrate that from the viewpoint of the banking system, it does not matter if the banks acquire debt issued by firms, governments, or households. To acquire the debt, the banks must have excess reserves. After they have used their excess reserves, the money supply is expanded, and the excess reserves become required reserves.f. Demand deposits - no changeRequired reserves - no changeExcess reserves - no changeUnlike in the previous questions, the lending of excess reserves from one bank to another does not in the aggregate increase or decrease the reserves of the banking system.g. Demand deposits - no changeRequired reserves - no changeExcess reserves - no changeLoans between members of the non-bank general public do not affect banks' reserves and thus do not affect their capacity to lend.h. Demand deposits - lowerRequired reserves - lowerExcess reserves - higherWhile the creation of new loans uses the banks' excess reserves and creates new money, the retiring of loans from commercial banks reduces demand deposits and restores excess reserves (i.e., increases excess reserves).i. Demand deposits - higherRequired reserves - higherExcess reserves - higherj. Demand deposits - no changeRequired reserves - no changeExcess reserves - lowerk. Demand deposits - no changeRequired reserves - higherExcess reserves - lowerQuestions j and k illustrate two major monetary tools, the reserve requirement and the discount rate. Notice that changing the discount rate and the reserve requirements do not in themselves change demand deposits. Their impact is on reserves, and theeffect of this impact may lead to a change in the supply of money. l. Demand deposits - higherRequired reserves - higherExcess reserves - lowerm. Demand deposits - no changeRequired reserves - no changeExcess reserves - no changen. Demand deposits - increaseRequired reserves - increaseExcess reserves - increaseDuring a period of inflation, a policy that contracts the money supply and the capacity of banks to lend is desirable. Theopposite situation would apply during a recession. If there were a deficit during a period of recession, it is desirable to increase the money supply and the capacity of the banks to lend. Hence n is better than m.。
金融学双语考试复习资料
金融学双语考试复习资料Chapter 1经济学关注的3个问题：How scarce resources are allocated in the productionprocess among competing uses.How income generated in the production and sale of goods and services is distributed among members of society.How people allocate their income through spending, saving, borrowing and lending decisions.Default（违约）- When a borrower fails to repay a financial claim.借方未能偿还金融债务Liquidity（流动性）- The ease with which a financial claim can be converted to cash without loss of value. 金融索取权可以比较容易地且不损失价值地转化成现金的特性。
Depository institutions （储蓄机构）–Financial intermediaries, such as commercial banks, savings and loan associations, credit unions, and mutual savings banks, that issue checkable deposits. 发放支票存款的金融中介，如商业银行、存储贷款、信用联盟、互助储蓄银行。
5. Why do financial intermediaries exist? What services do they provide to the public? Are all financial institutions financial intermediaries?Financial intermediaries exist to link up net lenders and net borrowers and to help minimize the transaction costs associated with borrowing and lending. Financial services provided by financialintermediaries include appraising and diversifying risk from individual net lenders. Not all financial intermediaries areinstitutions, such as stock and bond brokers merely link up net lenders and net borrowers for a fee and do not issue claims on themselves.16. Diane Weil earns wages of $45,000 and interest and dividend income of $5,000. She spends $8,000 as a down payment on a newly constructed mountain cabin and lends $4,000 in financial markets. Assuming that Diane spends the remainder of her income on consumption, what is her saving? Is she a net lender or a net borrower? What is her consumption?Chapter 2Money (货币)- Anything that functions as a means of payment (medium of exchange), unit of account, and store of value. 作为支付手段（即交换媒介）、记账单位和价值储藏手段的物品。
国际金融-期末复习-中英文
【名词解释】【The Special Drawing Right (SDR) 特别提款权】p 30The Special Drawing Right (SDR) is an international reserve asset created by the IMF to supplement existing foreign exchange reserves. (It serves as a unit of account for the IMF and is also the base against which some countries peg the exchange rate for their currencies.【LIBOR 伦敦同业银行拆解率】p 33Eurocurrency Interest Rates: LIBORLIBOR〔London Interbank Offered Rate〕is the reference rate of interest in the Eurocurrency market, and is now the most widely accepted rate of interest used in standardized quotations, loan agreements or financial derivatives valuations. LIBOR is officially defined by the British Bankers Association.【Dollarization美元化】Dollarization – the use of the US dollar as the official currency of the country.只将美元用作官方通货。
【Eurodollar 欧洲美元】Eurodollar is one of the European currency types，which refers to the dollar deposits in banks outside the united states 是指存放在美国以外的银行中的美元存款，欧洲美元是欧洲货币的一种类型。
国际金融(双语)复习大纲
（一）论述、简答、计算题：1、What is the current account balance of France when the French budget surplus is 348million Euros, private saving is 256 million Euros, domestic capital formation is 134 million Euros?解答：National saving = private saving + government saving = 256+348=604 millionCurrent account balance = national saving – domestic real investment = 604-134=470 million附：Current account balance(CA)=net foreign investment(If)National saving(S)=domestic real investment(Id)+net foreign investment(If)If=CA=S-Id , CA=Y(domestic production of goods and services)-E(total expenditures on goods and services)2、Which of the following transactions could contribute to a British current account surplus? Explain whya French firm sells defense equipment to the British government for 250 million pounds in bank depositsb Great Britain makes a gift of $500 million to the Iraqi government to aid in reconstruction.c The United States borrows 200 million pounds on a short-term basis from the British government to buy 200 million pounds in textiles from Great Britain.C：merchandise exports——current account surplusA：merchandise imports——current account deficitB：unilateral transfer——current account deficit3、You are provided with the following information about a country’s international transactions during a given year:Service exports $346Service imports $354Merchandise exports $480Merchandise imports $348Income flows, net $153Unilateral transfers, net $142Increase in the country’s holding of foreign assets, net(excluding official reserves assets) $352Increase in forei gn holdings of the country’s assets, net(excluding official reserve assets) $252Statistical discrepancy, net $154a.Calculate the official settlements balance and the current account balance.b.Is the country increasing or decreasing its net holdings of official reserve assets?Why?A: Current account balance=net credits – net debits on(the flow of goods ,services ,income and unilateral transfer)=（346—354）+（480—348）+153—142 = 135Financial account balance= foreign holdings of the country’s assets – the country’s holdingof foreign assets =—352 + 252 = —100So, official settlement balance(B)=CA balance + financial account balance= 135 —100=35B: Current account balance = 132—8+153—142=135B = CA + FA = 135 + （—100）= 35B + OR + Statistical discrepancy = 0OR = —1894、For each case below, state whether the euro has appreciated or depreciated and give an exampleof an event that could cause the change in the exchange rate.a.The spot rate goes from 450 euros/Mexican peso to 440 euros/Mexican peso.b.The spot rate goes from 0.011 Mexican pesos/euro to 0.006 Mexican pesos/euro.c.The spot rate goes from 1.48 euros/British pound to 1.51 euros/British pound.d.The spot rate goes from 0.73 British pounds/euro to 0.75 British pounds/euro.A: indirect quotation, euro appreciatedB: direct quotation, euro depreciatedC: indirect quotation, euro depreciatedD: direct quotation, euro appreciated5、What are the two forms of interbank foreign exchange trading? Compare and contrasthe similarities and differences of the two forms.Form 1 Interbank trading is conducted directly between the traders at different banksForm 2 Interbank trading are conducted through foreign exchange brokerSimilarities: Both are making the foreign exchange trades.Differences:①Form1,the traders know to whom they are quoting exchange rates for possible。
公司金融复习
公司金融学期末复习一、名词解释1. corporate finance 公司金融The corporate finance reflects the law of capital movement.公司金融反映资本运动的规律。
2.sole proprietorship 个体业主制A sole proprietorship is a business owned by one person.独资企业是由一个人拥有的企业。
3.Partnership 合伙制Any two to more person can get together and form a partnership. Partnership fall into two categories general partnership and limited partnership.任何两个更多的人一起合伙。
伙伴关系可以分为两类，普通合伙和有限责任合伙公司。
4.independent project 独立项目An independent project is one whose acceptance or rejection is independent of the acceptance or rejection of other projects.一个独立的项目是一个其接受或拒绝的是独立的接受或拒绝的其他项目。
5.liquidation 清算Liquidation means termination of the firm as a going concern, it involves selling the assets of the firm for salvage value.公司的终止作为一个持续的关注，它涉及出售公司资产的残值。
6.capital surplus 资本盈余Capital surplus usually refers to amount of directly contributed equity capital in excess of the par value.资本盈余通常是指量的直接贡献股本的溢价。
公司金融期末复习
Problem: 1.Function of financial market and list some financial intermediarie Answer1: A.contributing to higher production and efficiency in the economy B.Improving the well-being of consumers by allowing them to their purchases better Answer2: (1) facilitate investment and financing. (2) (2) a a a reasonable reasonable reasonable guidance of guidance of capital capital flow, flow, flow, which which which contributes contributes contributes to to to the the the concentration concentration concentration of of of capital capital capital and and promotes the transfer of high-efficiency units. (3) convenient and flexible turnover of funds. (4) to achieve risk diversification, reduce transaction costs. (5) are conducive to enhancing the flexibility of macro-control. (6) to help strengthen economic ties between regions and countries. Intermediaries: Banks Building societies Credit unions Financial advisers or brokers Insurance companies Collective investment schemes Pension funds 2.Why profit maximization is not an ideal corporate finance objective? (1)The primary goal of corporate finance is maximize or increase shareholder value not profit (2)To a skilled accountant, however, a decision that increases profits under one set of accounting rules can reduce it under another. (3)Accounting profits are not necessarily the same as cash flows. (4)The problem with profit maximization as a goal is that it does not tell us when cash flows are to be received. (5)Profit maximization ignores the uncertainty or risk associated with cash flows. 总：For For the the the fact fact fact that that that a a a firm firm firm cannot cannot cannot survive survive survive with with with mere mere mere profit profit profit maximization maximization maximization ,but ,but ,but must must must increase increase long-term long-term security security security through through through investment investment investment and and meeting meeting shareholder shareholder shareholder expectations. expectations. expectations. This will This will increase their productive capacity for the future as well as encourage the risky capital investment of the shareholders. 3.Characteristics of business organization: (1)sole proprietorship: A business owned and managed by a single individual. Features: Cheapest to form. no formal charter, few government regulations Pays no corporate income taxes Unlimited liability for business debts and obligations. Its life is limited by the life of the sole proprietor The money raised is limited by the proprietor ’s personal wealth (2)partnership:A business formed by two or more individuals or entities. General General partnership: partnership: partnership: All All All partners partners partners share share share in in in gains gains gains or or or losses, losses, losses, all all all have have have unlimited unlimited unlimited liability liability liability for for for all all partnership debts. Limited Limited partnership: partnership: partnership: One One One or or or more more more general general general partners partners partners will will will run run run the the the business business business and and and have have have unlimited unlimited liability. The limited partner's liability is limited to their contribution to the partnership. Features: Often inexpensive and easy to form Difficult to transfer ownership Difficult to raise large amounts of cash Income is taxed as personal income (3)Corporation:Is a legal “person ” separate and distinct from its owners . Features: Limited liability for stockholders. Unlimited life for the business. Ownership can be easily transferred. These characteristics make it easier for corporations to raise capital. The disadvantage to corporations is double taxation. 4.Why separation of ownership and management is necessary and desirableProfessional Managerial Skills: The The growth growth growth of of of a a a company company company comes comes comes with with with the the the demand demand demand for for for different different different skills skills skills to to to manage manage manage the the operations of the company, meaning the owners of a company may not have all of the necessary skills and experience needed for certain managerial roles. Creating a management team separate from the ownership enables the company to be run by professionals with diverse skills such as in marketing, corporate financing and public relations. Easier Performance Appraisals: Performance Performance appraisals appraisals appraisals are are are an an an essential essential essential part part part of of of good good good corporate corporate corporate governance, governance, governance, as as as they they they enable enable managers to evaluate the company and to point out areas of improvement. It can be complex to evaluate evaluate performance performance performance where where where there there there is is is a a a lack lack lack of of of separation separation separation of of of ownership ownership ownership and and and management. management. management. But But separation separation makes makes makes it it it easier easier easier for for for the the the board board board and and and those those those in in in management management management to to to be be be evaluated evaluated evaluated objectively. objectively. Owners can freely deal with the chief executive officer and other senior managers, even after the appraisals. Capital Utilization Capital utilization involves the arrangements that determine the way in which resources and assets assets are are are managed managed managed in in in a a a company. company. company. Separating Separating Separating personal personal personal assets assets assets and and and liabilities liabilities liabilities from from from the the the business business assets and liabilities may prove difficult for company owners. Managers come in to devise ways in which business assets are managed to generate the highest profits for all shareholders. Checks and Balances Separate managers and owners in a firm ensure that a system of checks and balances is in place. Managers act as a buffer between the company and stakeholders such that they can alleviate negative impacts of stakeholder activities and avoid hitches in public relations. Managers are well suited to put in place strategies that will lessen losses to the rest of the stakeholders as a result of the actions of another stakeholder. 5.What is corporate finance and describe their decisions?(Shenli)Corporate finance is the study of the answers to the following questions: (1) What long-term investments should you take on? (2)Where will you get the long-term financing to pay for your investment? (3) How will you manage your everyday financial activities? (WIKI)Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. Investment Decisions: Concerning non-current assent or capital budgeting. Evaluating the size, timing and risk of future cash flow. Cash flow versus accounting profit Financing Decisions: Determine how the assets will be financed. What is the best type of financing? What is the best financing mix? What is the best dividend policy (dividend decision)? Capital structure Asset Management Decisions:How do we manage existing assets efficiently? Greater emphasis on current asset management than fixed asset management. Working capital management. 6.Evaluate IRR ruleFor For the the the fact fact fact that that that internal internal internal rate rate rate of of of return return return is is is a a a rate rate rate quantity,it quantity,it quantity,it always always always is is is used used used to to to be be be an an an excellent excellent indicator of the efficiency, quality, or yield of an investment. However,As an investment decision tool, the calculated IRR should not be used to rate mutually exclusive projects, but only to decide whether a single project is worth investing in. The IRR does give you a rate of return,but the IRR could be for a small investment or for only a short period of time. 7.The characteristics of bond,stock and preferred?Bond: A bond is a long-term debt instrument issued by a corporation or government. The Face/par/maturity value (MV) [or face value] of a bond is the stated value. The bond ’s coupon rate is the stated rate of interest; the annual interest payment divided by the bond ’s face value. The discount rate (capitalization rate) is dependent on the risk of the bond and is composed of the risk-free rate plus a premium for risk. In general, debt securities are characterized by the following attributes: - Creditors (or lenders or bondholders) generally have no voting rights. - Payment of interest on debt is a tax deductible business expense. - Unpaid debt is a liability, which means that default subjects the firm to legal action, by the creditors. Ultimately, financial distress may result in bankruptcy filing Preferred stock :Preferred Stock is a type of stock that promises a (usually) fixed dividend, but at the discretion of the board of directors. Preferred Stock has preference over common stock in the payment of dividends and claims on assets. Preferred stock represents equity in the firm, but has features of debt; stated yield, preference in terms of cash flows and liquidation, and some issues are callable and/or convertible into common shares. 8.Describe net operation theory ,traditional theory,MM theorywithout(with)corporate tax,with bankruptcy and agency cost9.Describe business risk and DFLBusiness risk:It is the risk associated with operating earnings.Operating earnings are risky because total revenues are risky ,as are the costs of producing revenues. Financial risk is the associated with how a company finances its operations. DFL(degree DFL(degree of of of financial financial financial leverage):is leverage):is leverage):is the the the sensitivity sensitivity sensitivity of of of the the the cash cash cash flows flows flows available available available to to to owners owners owners when when operating income changes. DFL=(Percentage change in net income)/(Percentage change in operating income) 10.Which cash flow should(not) be taken into account when estimate project cash flowsCash flow from assets = + operating cash flow - capital spending - additions to net working capital Operating cash flow = + earnings before interest and taxes (EBIT) + depreciation - taxes Should be taken into:opportunity cost ,side effect,spillover effect,NWC(Net Working Capital),Taxes,operating cash flow,capital spending Should not be taken into:sunk cost,financial cost, Calculation:1.Annuity;Perpetuity:PV:FVC = Cash flow per period i = interest rate n = number of paymentsC = Cash flow per period i = interest rate n = number of paymentsPV of a perpetuity = P / i In this formula "P" represents your annual payment and "i" represents your interest or discount rate. PV of a growing perpetuity = P / (i - g) In this formula "P" represents your annual payment, "i" represents your interest or discount rate and "g" represents the growth rate. 2.Valuation of bond(half year)and stock3.Investment criterion IRR,NPV ,PBP,PINPV: Given Given the the the (period, (period, (period, cash cash cash flow) flow) flow) pairs pairs pairs ((, ) ) where where is is the the the total total total number number number of of of periods, periods, periods, the the the net net present value is given by: IRR:NPV=0,i=IRR Given Given the the the (period, (period, (period, cash cash cash flow) flow) flow) pairs pairs pairs ((, ) ) where where is is the the the total total total number number number of of of periods, periods, periods, the the the net net present value is given by: PBP: Payback Period = W + (X - Y) / Z W is the year before which the investment value is crossed in cumulative cash flows X is the initial investment or the initial cash outlay Y is the cumulative cash flow just before the investment value is crossed in cumulative cash flows Z Z is is the the cash cash cash flow flow flow of of of the the the year year year in in in which which which the the the investment investment investment value value value is is crossed crossed in in in the the the cumulative cumulative cumulative cash cash flows PI: PI=(PV of future cash flow )/(Initial investment)=1+NPV/(Initial investment) 4.Expanding and Replacement:;EAC:EAC = NPV/A t, r where A= the present value of an annuity factor t = number of periods r = interest rate A t, r=(1-1/(1+r)^t)/r 5.WACC,CAPM:W ACC: where is the number of sources of capital (securities, types of liabilities); is the required rate of return for security ; and ; and is the market value of all outstanding securities . where D is the total debt, E is the total shareholder’s equity, Ke is the cost of equity, and Kd is the cost of debt. Tax effects[edit] Tax effects can be incorporated into this formula. For example, the WACC for a company financed by one type of shares with the total market value of and cost of equity and one type of bonds with the total market value of and cost of debt , in a country with corporate tax rate , is calculated as: CAPM: where: is the expected return on the capital asset is the risk-free rate of interest such as interest arising from government bonds (the beta) is the sensitivity of the expected excess asset returns to the expected excess market returns, or also , is the expected return of the market is is sometimes sometimes sometimes known known known as as as the the the market market market premium premium premium (the (the (the difference difference difference between between between the the expected market rate of return and the risk-free rate of return). is also known as the risk premium Restated, in terms of risk premium, we find that: Modified formula: "where: is required return on security i is risk-free rate is general market risk premium is risk premium for small size is risk premium due to company-specific risk factor 6.DOL,DFL,DTL,EPS-EBITDOL: DOL =% change in EBIT / % change in sales DFL: DFL =% change in EPS / % change in EBIT DTL: DTL =% change in EPS / % change in sales EPS:earnings per share EBIT:operating profit 7.MM without and with corporate tax;arbitrageWithout taxes Proposition I where is the value of an unlevered firm = price of buying a firm composed only of equity, and is the value of a levered firm = price of buying a firm that is composed of some mix of debt and equity. Another word for levered is geared, which has the same meaning. Proposition II where is the required rate of return on equity, or cost of equity. is the company unlevered cost of capital (ie assume no leverage). is the required rate of return on borrowings, or cost of debt. is the debt-to-equity ratio. With taxes Proposition I where is the value of a levered firm. is the value of an unlevered firm. is the tax rate () x the value of debt (D) the term assumes debt is perpetual Proposition II where: is is the the the required required required rate rate rate of of of return return return on on on equity, equity, equity, or or or cost cost cost of of of levered levered levered equity equity equity = = = unlevered unlevered unlevered equity equity equity + + financing premium. is the company cost of equity capital with no leverage (unlevered cost of equity, or return on assets with D/E = 0). is the required rate of return on borrowings, or cost of debt. is the debt-to-equity ratio. is the tax rate. 。
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公司金融双语期末复习资料一、判断题二、计算题（4-5题）三、名词解释1.Corporate finance（公司金融）Corporate finance is the study of the answers to the following questions:What long-term investments should you take on?Where will you get the long-term financing to pay for your investment?How will you manage your everyday financial activities?企业融资是下列问题的答案的研究：把你要什么样的长期投资？你将在哪里获得长期的资金支付你的投资？你如何管理你的日常财务活动？2.financial manager（财务经理）anyone who deals with investment and/or financing decisions for a business.The CFO, controller, treasurer凡涉及一个企业的投资和融资决策。
首席财务官，控制器，司库3.maturity（到期日）The direction of bond investors borrowing principal or other debt to date, but also stop interest payment day.借贷方向投资者偿付债券本金或其他债务的日期，也是停止支付利息的日子。
4. present value（现值）Present value (Present value), index funds reduced to the base year, also known as the discounted present values, also called on the value of the future cash flow, refers to an appropriate discount rate to discount the value of. Refers to assets in accordance with the is expected to generate from its continuing use and ultimate disposal of the future discounted net cash inflow amount, in accordance with the expected liabilities within the time limit to future net cash outflow discount the amount of reimbursement.目前的价值（现值），指数基金减少到基准年，也被称为贴现值，也被称为对未来现金流的价值，指的是一个合适的折现率折现的价值。
指资产按照预计从其持续使用和最终处置的未来净现金流入量的折现的产生，按照预计负债期限内的未来净现金流出折价偿还的金额。
5.annuity（年金）The time interval is equal, equal to the amount of cash flow, or a certain period of time equal to the amount of each payment and collection.时间间隔相等，金额相等的现金流量，或一定时期每期金额相等的款项收付。
6. going concern value（持续经营价值）Going concern value refers to the company in the condition of continuous operation under the value. Going concern value assumptions of existing assets will be used to generate future cash flow and will not be sold. Investors consider the going-concern value, and it is compared with the value of the assets at the end of production. If the going concern value exceeds the production end of the value, so business is meaningful.续经营价值是指公司在连续运行条件下的价值。
持续经营价值的假设现有资产将被用来产生的未来现金流量，不会出售。
投资者认为持续经营价值，它是在生产的最终资产价值的比较。
如果持续经营价值超过价值的生产，这样的企业是有意义的。
7.unsystematic risk（非系统性风险）unsystematic risk refers to only affect an industry or individual company securities, it is usually caused by a specific factor, there is no system, full contact with the entire stock market prices, but only affects individual or a few stock returns. Is the result of special events occurred in the individual's risk非系统风险是指只对某个行业或个别公司的证券产生影响的风险，它通常是由某一特殊的因素引起，与整个证券市场的价格不存在系统、全面的联系，而只对个别或少数证券的收益产生影响。
是发生于个别公司的特有事件造成的风险。
8. capital budgeting（资本预算）Capital budgeting (or investment appraisal) is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures.资本预算（或投资评价）是规划过程中用于确定一个组织的长期投资，如更换新机械，机械，新厂，新产品，研究和发展项目是值得追求。
它是主要的资本，或投资预算，支出。
9. cost of capital（资本成本）The cost of capital is a term used in the field of financial investment to refer to the cost of a company's funds (both debt and equity), or, from an investor's point of view "the shareholder's required return on a portfolio company's existing securities".It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet.资本成本是一个用在金融投资领域是指一个公司的资金成本（包括债务和股权），或者从“股东要求的回报率在投资组合公司现有的证券投资者的角度。
，它是用来评估一个公司的新项目，如是，投资者预期的公司提供资金的最低收益，从而建立一个基准，一个新的项目必须满足。
10.business risk（经营风险）The strategic choice of enterprises, product prices, sales tools management decisioncause future income uncertainty, especially enterprise use of operating leverage and lead to earnings before interest and tax changes the risk formation called business risk.企业由于战略选择、产品价格、销售手段等经营决策引起的未来收益不确定性，特别是企业利用经营杠杆而导致息前税前利润变动形成的风险叫做经营风险。
11.financial risk（财务风险）Financial risk is an umbrella term for multiple types of risk associated with financing, including financial transactions that include company loans in risk of default. Risk is a term often used to imply downside risk, meaning the uncertainty of a return and the potential for financial loss.财务风险是与融资风险的多种类型的总称，包括金融交易，包括违约风险的公司贷款。
风险是一个经常使用的术语意味着下跌的风险，意义的不确定性和财务回报的潜在损失。
四、简答题1、Why earning maximization is not a good objection of corporate finance?为什么收入最大化不是公司治理的好目标，股东权益最大化、股价最大化是好目标？Financial Objectives（财务管理目标）利润最大化意味着社会财富的极大化，利润的多少决定了资本的流动方向，为追逐利润，资本只会流向利润最大的行业和企业。