Investment Management Chap_002

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投资管理的概念

投资管理的概念
投资管理的概念
投资管理是一种投资策略，它将投资者的资金分配、组合、处理、监督和重新配置等投资管理方法有机地结合在一起，以实现最大的投资收益。

它的英文名称是“Investment Management”，也可以称之为“资产管理”，它包括财务规划、资产配置、财务分析、财务决策、风险管理等等。

投资管理的目的是提高投资者的投资回报并保护投资过程中的
资金安全。

投资管理的重点在于以适度的风险水平获取最大的投资回报，以期达到投资者的预期收益，同时考虑投资者的资金安全。

投资管理的投资选择、投资组合管理和投资策略选择等均是投资管理的重要组成部分。

投资管理体系主要由投资管理者和投资者组成，分别承担不同的职责。

投资管理者负责投资决策，如指定投资策略和投资指南；投资者则负责监督投资管理者，协助投资管理者实施有效的投资策略。

投资管理不仅要考虑投资收益，还应考虑投资者的时间、精力、技术水平等因素，确定合理的投资策略，保证投资者的资金安全，实现投资者的理想收益。

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公司理财习题库 Chap002

Multiple Choice Questions1. Which of the following is not a characteristic of a money market instrument?A) liquidityB) marketabilityC) long maturityD) liquidity premiumE) C and DAnswer: E Difficulty: EasyRationale: Money market instruments are short-term instruments with high liquidityand marketability; they do not have long maturities nor pay liquidity premiums.2. Which one of the following is not a money market instrument?A) a Treasury billB) a negotiable certificate of depositC) commercial paperD) a Treasury bondE) a Eurodollar accountAnswer: D Difficulty: EasyRationale: Money market instruments are instruments with maturities of one year or less, which applies to all of the above except Treasury bonds. See Table 2.1, page 33.3. T-bills are financial instruments initially sold by ________ to raise funds.A) commercial banksB) the U. S. governmentC) state and local governmentsD) agencies of the federal governmentE) B and DAnswer: B Difficulty: EasyRationale: Only the U. S. government sells T-bills in the primary market.4. The bid price of a T-bill in the secondary market isA) the price at which the dealer in T-bills is willing to sell the bill.B) the price at which the dealer in T-bills is willing to buy the bill.C) greater than the asked price of the T-bill.D) the price at which the investor can buy the T-bill.E) never quoted in the financial press.Answer: B Difficulty: EasyRationale: T-bills are sold in the secondary market via dealers; the bid price quoted in the financial press is the price at which the dealer is willing to buy the bill.5. Commercial paper is a short-term security issued by ________ to raise funds.A) the Federal Reserve BankB) commercial banksC) large, well-known companiesD) the New York Stock ExchangeE) state and local governmentsAnswer: C Difficulty: EasyRationale: Commercial paper is short-term unsecured financing issued directly by large, presumably safe corporations.6. Which one of the following terms best describes Eurodollars:A) dollar-denominated deposits in European banks.B) dollar-denominated deposits at branches of foreign banks in the U. S.C) dollar-denominated deposits at foreign banks and branches of American banksoutside the U. S.D) dollar-denominated deposits at American banks in the U. S.E) dollars that have been exchanged for European currency.Answer: C Difficulty: ModerateRationale: Although originally Eurodollars were used to describe dollar-denominated deposits in European banks, today the term has been extended to apply to anydollar-denominated deposit outside the U. S.7. Deposits of commercial banks at the Federal Reserve Bank are called __________.A) bankers' acceptancesB) repurchase agreementsC) time depositsD) federal fundsE) reserve requirementsAnswer: D Difficulty: EasyRationale: The federal funds are required for the bank to meet reserve requirements, which is a way of influencing the money supply. No substitutes for fed funds arepermitted.8. The interest rate charged by banks with excess reserves at a Federal Reserve Bank tobanks needing overnight loans to meet reserve requirements is called the_________.A) prime rateB) discount rateC) federal funds rateD) call money rateE) money market rateAnswer: C Difficulty: Easy9. Which of the following statements is (are) true regarding municipal bonds?I) A municipal bond is a debt obligation issued by state or local governments.II) A municipal bond is a debt obligation issued by the federal government.III)The interest income from a municipal bond is exempt from federal income taxation.IV)The interest income from a municipal bond is exempt from state and local taxation in the issuing state.A) I and II onlyB) I and III onlyC) I, II, and III onlyD) I, III, and IV onlyE) I and IV onlyAnswer: D Difficulty: ModerateRationale: State and local governments and agencies thereof issue municipal bonds on which the interest income is free from all federal taxes and is exempt from state and local taxation in the issuing state.10. Which of the following statements is true regarding a corporate bond?A) A corporate callable bond gives the holder the right to exchange it for a specifiednumber of the company's common shares.B) A corporate debenture is a secured bond.C) A corporate indenture is a secured bond.D) A corporate convertible bond gives the holder the right to exchange the bond for aspecified number of the company's common shares.E) Holders of corporate bonds have voting rights in the company.Answer: D Difficulty: EasyRationale: Statement D is the only true statement; all other statements describesomething other than the term specified.11. In the event of the firm's bankruptcyA) the most shareholders can lose is their original investment in the firm's stock.B) common shareholders are the first in line to receive their claims on the firm's assets.C) bondholders have claim to what is left from the liquidation of the firm's assets afterpaying the shareholders.D) the claims of preferred shareholders are honored before those of the commonshareholders.E) A and D.Answer: E Difficulty: ModerateRationale: Shareholders have limited liability and have residual claims on assets.Bondholders have a priority claim on assets, and preferred shareholders have priority over common shareholders.12. Which of the following is true regarding a firm's securities?A) Common dividends are paid before preferred dividends.B) Preferred stockholders have voting rights.C) Preferred dividends are usually cumulative.D) Preferred dividends are contractual obligations.E) Common dividends usually can be paid if preferred dividends have been skipped.Answer: C Difficulty: EasyRationale: The only advantages of preferred dividends over common dividends are that preferred dividends must be paid first and any skipped preferred dividends must be paid before common dividends may be paid.13. Which of the following is true of the Dow Jones Industrial Average?A) It is a value-weighted average of 30 large industrial stocks.B) It is a price-weighted average of 30 large industrial stocks.C) The divisor must be adjusted for stock splits.D) A and C.E) B and C.Answer: E Difficulty: EasyRationale: The Dow Jones Industrial Average is a price-weighted index of 30 large industrial firms and the divisor must be adjusted when any of the stocks on the index split.14. Which of the following indices is (are) market-value weighted?I)The New York Stock Exchange Composite IndexII)The Standard and Poor's 500 Stock IndexIII)The Dow Jones Industrial AverageA) I onlyB) I and II onlyC) I and III onlyD) I, II, and IIIE) II and III onlyAnswer: B Difficulty: ModerateRationale: The Dow Jones Industrial Average is a price-weighted index.15. The Dow Jones Industrial Average (DJIA) is computed by:A) adding the prices of 30 large "blue-chip" stocks and dividing by 30.B) calculating the total market value of the 30 firms in the index and dividing by 30.C) adding the prices of the 30 stocks in the index and dividing by a divisor.D) adding the prices of the 500 stocks in the index and dividing by a divisor.E) adding the prices of the 30 stocks in the index and dividing by the value of thesestocks as of some base date period.Answer: C Difficulty: EasyRationale: When the DJIA became a 30-stock index, response A was true; however, as stocks on the index have split and been replaced, the divisor has been adjusted. InJanuary 2003 the divisor was 0.146.Use the following to answer questions 16-18:Consider the following three stocks:Stock Price N um ber of shares outstandingStock A$40 200Stock B$70 500Stock C$10 60016. The price-weighted index constructed with the three stocks isA) 30B) 40C) 50D) 60E) 70Answer: B Difficulty: EasyRationale: ($40 + $70 + $10)/3 = $40.17. The value-weighted index constructed with the three stocks using a divisor of 100 isA) 1.2B) 1200C) 490D) 4900E) 49Answer: C Difficulty: ModerateRationale: The sum of the value of the three stocks divided by 100 is 490: [($40 x 200) + ($70 x 500) + ($10 x 600)] /100 = 490.18. Assume at these prices the value-weighted index constructed with the three stocks is490. What would the index be if stock B is split 2 for 1 and stock C 4 for 1?A) 265B) 430C) 355D) 490E) 1000Answer: D Difficulty: ModerateRationale: Value-weighted indexes are not affected by stock splits.19. The price quotations of Treasury bonds in the Wall Street Journal show an ask price of104:08 and a bid price of 104:04. As a buyer of the bond what is the dollar price you expect to pay?A) $10,480.00B) $10,425.00C) $10,440.00D) $10,412.50E) $10,404.00Answer: B Difficulty: ModerateRationale: You pay the asking price of the dealer, 104 8/32, or 104.25% of $10,000, or $10,425.00.20. An investor purchases one municipal and one corporate bond that pay rates of return of8% and 10%, respectively. If the investor is in the 20% marginal tax bracket, his or her after tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.A) 8% and 10%B) 8% and 8%C) 6.4% and 8%D) 6.4% and 10%E) 10% and 10%Answer: B Difficulty: ModerateRationale: r c = 0.10(1 - 0.20) = 0.08, or 8%; r m = 0.08(1 - 0) = 8%.21. If a Treasury note has a bid price of $975, the quoted bid price in the Wall Street Journalwould beA) 97:50.B) 97:16.C) 97:80.D) 94:24.E) 97:75.Answer: B Difficulty: EasyRationale: Treasuries are quoted as a percent of $1,000 and in 1/32s.22. In calculating the Standard and Poor's stock price indices, the adjustment for stock splitoccurs:A) by adjusting the divisor.B) automatically.C) by adjusting the numerator.D) quarterly, on the last trading day of each quarter.E) none of the above.Answer: B Difficulty: EasyRationale: The calculation of the value-weighted S&P indices includes both price and number of shares of each of the stocks in the index. Thus, the effects of stock splits are automatically incorporated into the calculation.23. Which of the following statements regarding the Dow Jones Industrial Average (DJIA)is false?A) The DJIA is not very representative of the market as a whole.B) The DJIA consists of 30 blue chip stocks.C) The DJIA is affected equally by changes in low and high priced stocks.D) The DJIA divisor needs to be adjusted for stock splits.E) The value of the DJIA is much higher than individual stock prices.Answer: C Difficulty: EasyRationale: The high priced stocks have much more impact on the DJIA than do the lower priced stocks.24. The index that includes the largest number of actively traded stock is:A) the NASDAQ Composite Index.B) the NYSE Composite Index.C) the Wilshire 5000 Index.D) the Value Line Composite Index.E) the Russell Index.Answer: C Difficulty: EasyRationale: The Wilshire 5000 is the largest readily available stock index, consisting of the stocks traded on the organized exchanges and the OTC stocks.25. A 5.5% 20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the33% marginal tax bracket, this bond would offer an equivalent taxable yield of:A) 8.20%.B) 10.75%.C) 11.40%.D) 4.82%.E) none of the above.Answer: B Difficulty: ModerateRationale: 0.072 = r m (1-t); 0.072 = r m / (0.67); r m = 0.1075 = 10.75%.26. If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA)all change by the same percentage amount during a given day, which stock will have the greatest impact on the DJIA?A) The stock trading at the highest dollar price per share.B) The stock with total equity has the higher market value.C) The stock having the greatest amount of equity in its capital structure.D) The stock having the lowest volatility.E) All will have an equal impact.Answer: A Difficulty: ModerateRationale: Higher priced stocks affect the DJIA more than lower priced stocks; other choices are not relevant.27. The Value Line Index is an equally weighted geometric average of the return of about1,700 firms. What is the value of an index based on the geometric average returns of three stocks, where the returns on the three stocks during a given period were 20%, -10%, and 5%?A) 4.3%B) 5.0%C) 11.7%D) 13.4%E) 12.2%Answer: A Difficulty: ModerateRationale: [(1.2)(0.9)(1.05)]1/3 - 1 = 4.28%.28. The stocks on the Dow Jones Industrial AverageA) have remained unchanged since the creation of the index.B) include most of the stocks traded on the NYSE.C) are changed occasionally as circumstances dictate.D) consist of stocks on which the investor cannot lose money.E) B and C.Answer: C Difficulty: EasyRationale: The stocks on the DJIA are only a small sample of the entire market, have been changed occasionally since the creation of the index, and one can lose money on any stock. See text box on page 50 for a list of DJIA stock changes.29. Federally sponsored agency debtA) is legally insured by the U. S. Treasury.B) would probably be backed by the U. S. Treasury in the event of a near-default.C) has a small positive yield spread relative to U. S. Treasuries.D) B and C.E) A and C.Answer: D Difficulty: EasyRationale: Federally sponsored agencies, such as the FHLB, are not government owned.These agencies' debt is not insured by the U.S. Treasury, but probably would be backed by the Treasury in the event of an agency near-default. As a result, the issues are very safe and carry a yield only slightly higher than that of U. S. Treasuries.30. Brokers' callsA) are funds used by individuals who wish to buy stocks on margin.B) are funds borrowed by the broker from the bank, with the agreement to repay thebank immediately if requested to do so.C) carry a rate that is usually about one percentage point lower than the rate on U.S.T-bills.D) A and B.E) A and C.Answer: D Difficulty: EasyRationale: Brokers' calls are funds borrowed from banks by brokers and loaned toinvestors in margin accounts.31. A form of short-term borrowing by dealers in government securities isA) reserve requirements.B) repurchase agreements.C) banker's acceptances.D) commercial paper.E) brokers' calls.Answer: B Difficulty: EasyRationale: Repurchase agreements are a form of short-term borrowing where a dealer sells government securities to an investor with an agreement to buy back those same securities at a slightly higher price.32. Which of the following securities is a money market instrument?A) Treasury noteB) Treasury bond.C) municipal bond.D) commercial paper.E) mortgage security.Answer: D Difficulty: EasyRationale: Only commercial paper is a money market security. The others are capital market instruments.33. The call provision in Treasury securitiesI)is used with Treasury Notes.II)is used with Treasury Bonds.III)gives the Treasury the right to repurchase the security at par.IV)gives the Treasury the right to repurchase the security at a premium over par.A) II and III are correct.B) II and IV are correct.C) I, II and III are correct.D) I, II and IV are correct.E) Only II is correct.Answer: A Difficulty: ModerateRationale: Call provisions, giving the Treasury the right to repurchase the security at par, are included in some Treasury Bonds. No callable bonds have been issued since 1984.34. The yield to maturity reported in the financial pages for Treasury securitiesA) is calculated by compounding the semiannual yield.B) is calculated by doubling the semiannual yield.C) is also called the bond equivalent yield.D) is calculated as the yield-to-call for premium bonds.E) Both B and C are true.Answer: E Difficulty: EasyRationale: The yield to maturity shown in the financial pages is an APR calculated by doubling the semi-annual yield.35. Which of the following is not a mortgage-related government or government sponsoredagency?A) The Federal Home Loan BankB) The Federal National Mortgage AssociationC) The U.S. TreasuryD) Freddie MacE) Ginnie MaeAnswer: C Difficulty: EasyRationale: Only the U.S. Treasury issues securities that are not mortgage-backed. 36. The Tax Reform Act of 1986 limited the issue of mortgage revenue and tax-exemptbondsA) to $150 billion per state.B) to the larger of $50 per capita or $150 million per state.C) to the amount outstanding in 1980.D) to maturities of 20 years or less.E) None of the above statements are correct.Answer: B Difficulty: ModerateRationale: The Tax Reform Act of 1986 limited the issue of mortgage revenue and tax exempt bonds for each state to $50 per capita or $150 million in order to limit the drain of potential tax revenue from the Federal Government.37. In order for you to be indifferent between the after tax returns on a corporate bondpaying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your taxbracket need to be?A) 33%B) 72%C) 15%D) 28%E) Cannot tell from the information givenAnswer: D Difficulty: ModerateRationale: .0612 = .085(1-t); (1-t) = 0.72; t = .2838. Which of the following are true about Treasury Bills?A) T-Bills are capital market instruments.B) T-Bills yields are quoted in the financial pages as effective annual rates of return.C At the T-Bill's maturity, the holder receives the face value of the Bill.C) Both A and C are correct.D) All of the above.Answer: D Difficulty: Moderate39. What does the term, “negotiable” mean with regard to negotiable certificates of deposit?A) The CD can be sold to another investor if the owner needs to cash it in before itsmaturity date.B) The rate of interest on the CD is subject to negotiation.C) The CD is automatically reinvested at its maturity date.D) The CD has staggered maturity dates built in.E) The interest rate paid on the CD will vary with a designated market rate.Answer: A Difficulty: Easy40. Freddie Mac and Ginnie Mae were organized to provideA) a primary market for mortgage transactions.B) liquidity for the mortgage market.C) a primary market for farm loan transactions.D) liquidity for the farm loan market.E) a source of funds for government agencies.Answer: B Difficulty: Easy41. The type of municipal bond that is used to finance commercial enterprises such as theconstruction of a new building for a corporation is calledA) a corporate courtesy bond.B) a revenue bond.C) a general obligation bond.D) a tax anticipation note.E) an industrial development bond.Answer: E Difficulty: Easy42. Suppose an investor is considering a corporate bond with a 7.17% before-tax yield and amunicipal bond with a 5.93% before-tax yield. At what marginal tax rate would the investor be indifferent between investing in the corporate and investing in the muni?A) 15.4%B) 23.7%C) 39.5%D) 17.3%E) 12.4%Answer: D Difficulty: ModerateRationale: t m = 1-(5.93%/7.17%) = 17.29%43. An individual can invest in student loan securities by buyingA) Sallie MaesB) Ginnie MaesC) Fanny MaesD) Freddie MacsE) Stacey JoesAnswer: A Difficulty: Easy44. Which of the following are characteristics of preferred stock?I)It pays its holder a fixed amount of income each year, at the discretion of itsmanagers.II)It gives its holder voting power in the firm.III)Its dividends are usually cumulative.IV)Failure to pay dividends may result in bankruptcy proceedings.A) I, III, and IVB) I, II, and IIIC) I and IIID) I, II, and IVE) I, II, III, and IVAnswer: C Difficulty: Moderate45. Bond market indexes can be difficult to construct becauseA) they cannot be based on firms' market values.B) bonds tend to trade infrequently, making price information difficult to obtain.C) there are so many different kinds of bonds.D) prices cannot be obtained for companies that operate in emerging markets.E) corporations are not required to disclose the details of their bond issues.Answer: B Difficulty: Moderate46. With regard to a futures contract, the long position is held byA) the trader who bought the contract at the largest discount.B) the trader who has to travel the farthest distance to deliver the commodity.C) the trader who plans to hold the contract open for the lengthiest time period.D) the trader who commits to purchasing the commodity on the delivery date.E) the trader who commits to delivering the commodity on the delivery date.Answer: D Difficulty: Easy47. In order for you to be indifferent between the after tax returns on a corporate bondpaying 9% and a tax-exempt municipal bond paying 7%, what would your tax bracket need to be?A) 17.6%B) 27%C) 22.2%D) 19.8%E) Cannot tell from the information givenAnswer: C Difficulty: ModerateRationale: .07 = .09(1-t); (1-t) = 0.777; t = .22248. In order for you to be indifferent between the after tax returns on a corporate bondpaying 7% and a tax-exempt municipal bond paying 5.5%, what would your tax bracket need to be?A) 22.6%B) 21.4%C) 26.2%D) 19.8%E) Cannot tell from the information givenAnswer: B Difficulty: ModerateRationale: .055 = .07(1-t); (1-t) = 0.786; t = .21449. An investor purchases one municipal and one corporate bond that pay rates of return of6% and 8%, respectively. If the investor is in the 25% marginal tax bracket, his or her after tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.A) 6% and 8%B) 4.5% and 6%C) 4.5% and 8%D) 6% and 6%E) None of the aboveAnswer: D Difficulty: ModerateRationale: r c = 0.08(1 - 0.25) = 0.06, or 6%; r m = 0.06(1 - 0) = 6%.50. An investor purchases one municipal and one corporate bond that pay rates of return of7.2% and 9.1%, respectively. If the investor is in the 15% marginal tax bracket, his orher after tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.A) 7.2% and 9.1%B) 7.2% and 7.735%C) 6.12% and 7.735%D) 8.471% and 9.1%E) None of the aboveAnswer: B Difficulty: ModerateRationale: r c = 0.091(1 - 0.15) = 0.07735, or 7.735%; r m = 0.072(1 - 0) = 7.2%.51. For a taxpayer in the 25% marginal tax bracket, a 20-year municipal bond currentlyyielding 5.5% would offer an equivalent taxable yield of:A) 7.33%.B) 10.75%.C) 5.5%.D) 4.125%.E) none of the above.Answer: A Difficulty: ModerateRationale: 0.055= r m(1-t); 0.0733 = r m / 0.75).52. For a taxpayer in the 15% marginal tax bracket, a 15-year municipal bond currentlyyielding 6.2% would offer an equivalent taxable yield of:A) 6.2%.B) 5.27%.C) 8.32%.D) 7.29%.E) none of the above.Answer: D Difficulty: ModerateRationale: 0.062= r m(1-t); 0.062 = r m / (0.85); r m = 0.0729 = 7.29%.53. With regard to a futures contract, the short position is held byA) the trader who bought the contract at the largest discount.B) the trader who has to travel the farthest distance to deliver the commodity.C) the trader who plans to hold the contract open for the lengthiest time period.D) the trader who commits to purchasing the commodity on the delivery date.E) the trader who commits to delivering the commodity on the delivery date.Answer: E Difficulty: Easy54. A call option allows the buyer toA) sell the underlying asset at the exercise price on or before the expiration date.B) buy the underlying asset at the exercise price on or before the expiration date.C) sell the option in the open market prior to expiration.D) A and C.E) B and C.Answer: E Difficulty: EasyRationale: A call option may be exercised (allowing the holder to buy the underlying asset) on or before expiration; the option contract also may be sold prior to expiration.55. A put option allows the holder toA) buy the underlying asset at the striking price on or before the expiration date.B) sell the underlying asset at the striking price on or before the expiration date.C) sell the option in the open market prior to expiration.D) B and C.E) A and C.Answer: D Difficulty: EasyRationale: A put option allows the buyer to sell the underlying asset at the striking price on or before the expiration date; the option contract also may be sold prior to expiration.56. The ____ index represents the performance of the German stock market.A) DAXB) FTSEC) NikkeiD) Hang SengE) None of the aboveAnswer: A Difficulty: Easy57. The ____ index represents the performance of the Japanese stock market.A) DAXB) FTSEC) NikkeiD) Hang SengE) None of the aboveAnswer: C Difficulty: Easy58. The ____ index represents the performance of the U.K. stock market.A) DAXB) FTSEC) NikkeiD) Hang SengE) None of the aboveAnswer: B Difficulty: Easy59. The ____ index represents the performance of the Hong Kong stock market.A) DAXB) FTSEC) NikkeiD) Hang SengE) None of the aboveAnswer: D Difficulty: Easy60. The ultimate small stock index in the U.S. is theA) Wilshire 5000.B) DJIA.C) S&P 500.D) Russell 2000.E) None of the above.Answer: A Difficulty: Easy61. The ____ is an example of a U.S. index of large firms.A) Wilshire 5000B) DJIAC) DAXD) Russell 2000E) All of the aboveAnswer: B Difficulty: Easy62. The ____ is an example of a U.S. index of small firms.A) S&P 500B) DJIAC) DAXD) Russell 2000E) All of the aboveAnswer: D Difficulty: EasyShort Answer QuestionsUse the following to answer questions 63-64:P Q P Q P QStock AStock BStock C63. Based on the information given, for a price-weighted index of the three stocks calculate:a.the rate of return for the first period (t=0 to t=1).b.the value of the divisor in the second period (t=2). Assume that Stock A had a 2-1split during this period.c.the rate of return for the second period (t=1 to t=2).Difficulty: DifficultAnswer:A.The price-weighted index at time 0 is (70+85+105)/3 = 86.67. The price-weightedindex at time 1 is (72+81+98)/3 = 83.67. The return on the index is 83.67/86.67 – 1 = -3.46%.B.The divisor must change to reflect the stock split. Because nothing elsefundamentally changed, the value of the index should remain 83.67. So the newdivisor is (36+81+98)/83.67 = 2.57. The index value is (36+81+98)/2.57 = 83.67.C.The rate of return for the second period is 83.67/83.67-1 = 0.00%64. Based on the information given for the three stocks, calculate the first-period rates ofreturn (from t=0 to t=1) ona. a market-value-weighted index.b.an equally-weighted index.c. a geometric index.Difficulty: DifficultAnswer:A.The total market value at time 0 is $70*200 + $85*500 + $105*300 = $88,000. Thetotal market value at time 1 is $72*200 + $81*500 + $98*300 = $84,300. The return is $84,300/$88,000 – 1 = -4.20%.B.The return on Stock A for the first period is $72/$70-1 = 2.86%. The return onStock B for the first period is $81/$85-1 = -4.71%. The return on Stock C for thefirst period is $98/$105-1 = -6.67%. The return on an equally weighted index of the three stocks is (2.86%-4.71%-6.67%)/3 = -2.84%.C.The geometric average return is [(1+.0286)(1-.0471)(1-.0667)](1/3)-1 =[(1.0286)(0.9529)(0.9333)]0.3333 -1 = -2.92%。

公司理财chap012

McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved
Slide 6
The Cost of Equity Capital
• From the firm’s perspective, the expected return is the Cost of Equity Capital: Ri R β ( R M R )
McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved
Slide 10
12.2 Estimation of Beta
Market Portfolio - Portfolio of all assets in the economy. In practice, a broad stock market index, such as the S&P Composite, is used to represent the market. Beta - Sensitivity of a stock’s return to the return on the market portfolio.
•
Solutions
– Problems 1 and 2 can be moderated by more sophisticated statistical techniques. – Problem 3 can be lessened by adjusting for changes in business and financial risk. – Look at average beta estimates of comparable firms in the industry.

投资管理Chapter_002

1-27
Federal Agency Debt
新闻背景：美国政府接管两房
当地时间7日上午，美国财长保尔森宣布了针对陷入困境的两大住房抵押贷款融资机构房利美和房地美的一揽子措施。按照这一美国有史以来规模最大的金融救援计划， “两房”目前的监管部门——美国联邦住房金融管理局将出面接管两家公司，后者目前的高管将被撤换。根据方案，美国财政部还将收购“两房”发行的高级优先股。财政部将在公开市场收购“两房”发行的房贷抵押证券，同时将通过美联储纽约分区银行向“两房”提供特别信贷额度。 “两房”是美国政府支持的两家从事住房抵押贷款融资的机构，被认为是“大到不能倒”的企业。目前美国12 万亿美元的住房抵押贷款中，有42％来自这两家机构。
1-15
2.1 货币市场
伦敦银行间同业拆借市场
– 伦敦银行间同业拆借市场利率指伦敦一些大银行之间进行拆解的利率。 – 它已经成为欧洲货币市场上一种基本的短期报价利率，而且被作为更广范围内的交易如贷款、金融产品等的参考利率。 – 还存在着欧洲银行间同业拆放利率和上海银行间同业拆放利率。
1-16
1-20
2.2 债务市场
债务市场工具: 中、长期国债联邦机构债务国际债券市政债券公司债券抵押贷款和抵押支持证券
1-21
2.2 债务市场
中长期国债
– 到期日
短期国债长达10年长期国债 10年以上 30年期国债
– 2001 财政部中断发行 – 2005 重新发行
– 票面价值：1000Байду номын сангаас元, 利率半年一付 – 报价：以面值百分比
边际税率
越低越好
1-36
收益税率
Figure 2.7 免税债券和应税债券的收益比率

罗斯公司理财Chap002全英文试题库及答案

Chapter 02 Financial Statements and Cash Flow Answer KeyMultiple Choice Questions1.The financial statement showing a firm's accounting value on a particular date is the:A.income statement.B.balance sheet.C.statement of cash flows.D.tax reconciliation statement.E.shareholders' equity sheet.Difficulty level: EasyTopic: BALANCE SHEETType: DEFINITIONS2.A current asset is:A.an item currently owned by the firm.B.an item that the firm expects to own within the next year.C.an item currently owned by the firm that will convert to cash within the next 12 months.D.the amount of cash on hand the firm currently shows on its balance sheet.E.the market value of all items currently owned by the firm.Difficulty level: EasyTopic: CURRENT ASSETSType: DEFINITIONS3.The long-term debts of a firm are liabilities:A.that come due within the next 12 months.B.that do not come due for at least 12 months.C.owed to the firm's suppliers.D.owed to the firm's shareholders.E.the firm expects to incur within the next 12 months. Difficulty level: EasyTopic: LONG-TERM DEBTType: DEFINITIONS working capital is defined as:A.total liabilities minus shareholders' equity.B.current liabilities minus shareholders' equity.C.fixed assets minus long-term liabilities.D.total assets minus total liabilities.E.current assets minus current liabilities.Difficulty level: EasyTopic: NET WORKING CAPITALType: DEFINITIONS5.A(n) ____ asset is one which can be quickly converted into cash without significant loss in value.A.currentB.fixedC.intangibleD.liquidE.long-termDifficulty level: EasyTopic: LIQUID ASSETSType: DEFINITIONS6.The financial statement summarizing a firm's accounting performance over a period of time is the:A.income statement.B.balance sheet.C.statement of cash flows.D.tax reconciliation statement.E.shareholders' equity sheet.Difficulty level: EasyTopic: INCOME STATEMENTType: DEFINITIONS7.Noncash items refer to:A.the credit sales of a firm.B.the accounts payable of a firm.C.the costs incurred for the purchase of intangible fixed assets.D.expenses charged against revenues that do not directly affect cash flow.E.all accounts on the balance sheet other than cash on hand.Difficulty level: EasyTopic: NONCASH ITEMSType: DEFINITIONS8.Your _____ tax rate is the amount of tax payable on the next taxable dollar you earn.A.deductibleB.residualC.totalD.averageE.marginalDifficulty level: EasyTopic: MARGINAL TAX RATESType: DEFINITIONS9.Your _____ tax rate is the total taxes you pay divided by your taxable income.A.deductibleB.residualC.totalD.averageE.marginalDifficulty level: EasyTopic: AVERAGE TAX RATESType: DEFINITIONS10._____ refers to the cash flow that results from the firm's ongoing, normal business activities.A.Cash flow from operating activitiesB.Capital spending working capitalD.Cash flow from assetsE.Cash flow to creditorsDifficulty level: MediumTopic: CASH FLOW FROM OPERATING ACTIVITIESType: DEFINITIONS11._____ refers to the changes in net capital assets.A.Operating cash flowB.Cash flow from investing working capitalD.Cash flow from assetsE.Cash flow to creditorsDifficulty level: MediumTopic: CASH FLOW FROM INVESTINGType: DEFINITIONS12._____ refers to the difference between a firm's current assets and its current liabilities.A.Operating cash flowB.Capital spending working capitalD.Cash flow from assetsE.Cash flow to creditorsDifficulty level: EasyTopic: NET WORKING CAPITALType: DEFINITIONS13._____ is calculated by adding back noncash expenses to net income and adjusting for changes in current assets and liabilities.A.Operating cash flowB.Capital spending working capitalD.Cash flow from operationsE.Cash flow to creditorsDifficulty level: MediumTopic: CASH FLOW FROM OPERATIONSType: DEFINITIONS14._____ refers to the firm's interest payments less any net new borrowing.A.Operating cash flowB.Capital spending working capitalD.Cash flow from shareholdersE.Cash flow to creditorsDifficulty level: MediumTopic: CASH FLOW TO CREDITORSType: DEFINITIONS15._____ refers to the firm's dividend payments less any net new equity raised.A.Operating cash flowB.Capital spending working capitalD.Cash flow from creditorsE.Cash flow to stockholdersDifficulty level: MediumTopic: CASH FLOW TO STOCKHOLDERSType: DEFINITIONS16.Earnings per share is equal to: income divided by the total number of shares outstanding. income divided by the par value of the common stock.C.gross income multiplied by the par value of the common stock.D.operating income divided by the par value of the common stock. income divided by total shareholders' equity.Difficulty level: MediumTopic: EARNINGS PER SHAREType: DEFINITIONS17.Dividends per share is equal to dividends paid:A.divided by the par value of common stock.B.divided by the total number of shares outstanding.C.divided by total shareholders' equity.D.multiplied by the par value of the common stock.E.multiplied by the total number of shares outstanding.Difficulty level: MediumTopic: DIVIDENDS PER SHAREType: DEFINITIONS18.Which of the following are included in current assets?I. equipmentII. inventoryIII. accounts payableIV. cashA.II and IV onlyB.I and III onlyC.I, II, and IV onlyD.III and IV onlyE.II, III, and IV onlyDifficulty level: MediumTopic: CURRENT ASSETSType: CONCEPTS19.Which of the following are included in current liabilities?I. note payable to a supplier in eighteen monthsII. debt payable to a mortgage company in nine monthsIII. accounts payable to suppliersIV. loan payable to the bank in fourteen monthsA.I and III onlyB.II and III onlyC.III and IV onlyD.II, III, and IV onlyE.I, II, and III onlyDifficulty level: MediumTopic: CURRENT LIABILITIESType: CONCEPTS20.An increase in total assets:A.means that net working capital is also increasing.B.requires an investment in fixed assets.C.means that shareholders' equity must also increase.D.must be offset by an equal increase in liabilities and shareholders' equity.E.can only occur when a firm has positive net income.Difficulty level: MediumTopic: BALANCE SHEETType: CONCEPTS21.Which one of the following assets is generally the most liquid?A.inventoryB.buildingsC.accounts receivableD.equipmentE.patentsDifficulty level: MediumTopic: LIQUIDITYType: CONCEPTS22.Which one of the following statements concerning liquidity is correct?A.If you sold an asset today, it was a liquid asset.B.If you can sell an asset next year at a price equal to its actual value, the asset is highly liquid.C.Trademarks and patents are highly liquid.D.The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties.E.Balance sheet accounts are listed in order of decreasing liquidity.Difficulty level: MediumTopic: LIQUIDITYType: CONCEPTS23.Liquidity is:A.a measure of the use of debt in a firm's capital structure.B.equal to current assets minus current liabilities.C.equal to the market value of a firm's total assets minus its current liabilities.D.valuable to a firm even though liquid assets tend to be less profitable to own.E.generally associated with intangible assets.Difficulty level: MediumTopic: LIQUIDITYType: CONCEPTS24.Which of the following accounts are included in shareholders' equity?I. interest paidII. retained earningsIII. capital surplusIV. long-term debtA.I and II onlyB.II and IV onlyC.I and IV onlyD.II and III onlyE.I and III onlyDifficulty level: MediumTopic: SHAREHOLDERS' EQUITYType: CONCEPTS25.Book value:A.is equivalent to market value for firms with fixed assets.B.is based on historical cost.C.generally tends to exceed market value when fixed assets are included.D.is more of a financial than an accounting valuation.E.is adjusted to market value whenever the market value exceeds the stated book value. Difficulty level: MediumTopic: BOOK VALUEType: CONCEPTS26.When making financial decisions related to assets, you should:A.always consider market values.B.place more emphasis on book values than on market values.C.rely primarily on the value of assets as shown on the balance sheet.D.place primary emphasis on historical costs.E.only consider market values if they are less than book values.Difficulty level: MediumTopic: MARKET VALUEType: CONCEPTS27.As seen on an income statement:A.interest is deducted from income and increases the total taxes incurred.B.the tax rate is applied to the earnings before interest and taxes when the firm has both depreciation and interest expenses.C.depreciation is shown as an expense but does not affect the taxes payable.D.depreciation reduces both the pretax income and the net income.E.interest expense is added to earnings before interest and taxes to get pretax income. Difficulty level: MediumTopic: INCOME STATEMENTType: CONCEPTS28.The earnings per share will:A.increase as net income increases.B.increase as the number of shares outstanding increase.C.decrease as the total revenue of the firm increases.D.increase as the tax rate increases.E.decrease as the costs decrease.Difficulty level: MediumTopic: EARNINGS PER SHAREType: CONCEPTS29.Dividends per share:A.increase as the net income increases as long as the number of shares outstanding remains constant.B.decrease as the number of shares outstanding decrease, all else constant.C.are inversely related to the earnings per share.D.are based upon the dividend requirements established by Generally Accepted Accounting Procedures.E.are equal to the amount of net income distributed to shareholders divided by the number of shares outstanding.Difficulty level: MediumTopic: DIVIDENDS PER SHAREType: CONCEPTS30.Earnings per shareA.will increase if net income increases and number of shares remains constant.B.will increase if net income decreases and number of shares remains constant.C.is number of shares divided by net income.D.is the amount of money that goes into retained earnings on a per share basis.E.None of the above.Difficulty level: MediumTopic: EARNINGS PER SHAREType: CONCEPTS31.According to Generally Accepted Accounting Principles, costs are:A.recorded as incurred.B.recorded when paid.C.matched with revenues.D.matched with production levels.E.expensed as management desires.Difficulty level: MediumTopic: MATCHING PRINCIPLEType: CONCEPTS32.Depreciation:A.is a noncash expense that is recorded on the income statement.B.increases the net fixed assets as shown on the balance sheet.C.reduces both the net fixed assets and the costs of a firm.D.is a non-cash expense which increases the net operating income.E.decreases net fixed assets, net income, and operating cash flows.Difficulty level: MediumTopic: NONCASH ITEMSType: CONCEPTS33.When you are making a financial decision, the most relevant tax rate is the _____ rate.A.averageB.fixedC.marginalD.totalE.variableDifficulty level: MediumTopic: MARGINAL TAX RATEType: CONCEPTS34.An increase in which one of the following will cause the operating cash flow to increase?A.depreciationB.changes in the amount of net fixed capital working capitalD.taxesE.costsDifficulty level: MediumTopic: OPERATING CASH FLOWType: CONCEPTS35.A firm starts its year with a positive net working capital. During the year, the firm acquires more short-term debt than it does short-term assets. This means that:A.the ending net working capital will be negative.B.both accounts receivable and inventory decreased during the year.C.the beginning current assets were less than the beginning current liabilities.D.accounts payable increased and inventory decreased during the year.E.the ending net working capital can be positive, negative, or equal to zero.Difficulty level: MediumTopic: CHANGE IN NET WORKING CAPITALType: CONCEPTS36.The cash flow to creditors includes the cash:A.received by the firm when payments are paid to suppliers.B.outflow of the firm when new debt is acquired.C.outflow when interest is paid on outstanding debt.D.inflow when accounts payable decreases.E.received when long-term debt is paid off.Difficulty level: MediumTopic: CASH FLOW TO CREDITORSType: CONCEPTS37.Cash flow to stockholders must be positive when:A.the dividends paid exceed the net new equity raised.B.the net sale of common stock exceeds the amount of dividends paid.C.no income is distributed but new shares of stock are sold.D.both the cash flow to assets and the cash flow to creditors are negative.E.both the cash flow to assets and the cash flow to creditors are positive. Difficulty level: MediumTopic: CASH FLOW TO STOCKHOLDERSType: CONCEPTS38.Which equality is the basis for the balance sheet?A.Fixed Assets = Stockholder's Equity + Current AssetsB.Assets = Liabilities + Stockholder's EquityC.Assets = Current Long-Term Debt + Retained EarningsD.Fixed Assets = Liabilities + Stockholder's EquityE.None of the aboveDifficulty level: MediumTopic: BALANCE SHEETType: CONCEPTS39.Assets are listed on the balance sheet in order of:A.decreasing liquidity.B.decreasing size.C.increasing size.D.relative life.E.None of the above.Difficulty level: MediumTopic: BALANCE SHEETType: CONCEPTS40.Debt is a contractual obligation that:A.requires the payout of residual flows to the holders of these instruments.B.requires a repayment of a stated amount and interest over the period.C.allows the bondholders to sue the firm if it defaults.D.Both A and B.E.Both B and C.Difficulty level: MediumTopic: DEBTType: CONCEPTS41.The carrying value or book value of assets:A.is determined under GAAP and is based on the cost of the asset.B.represents the true market value according to GAAP.C.is always the best measure of the company's value to an investor.D.is always higher than the replacement cost of the assets.E.None of the above.Difficulty level: MediumTopic: CARRYING VALUEType: CONCEPTS42.Under GAAP, a firm's assets are reported at:A.market value.B.liquidation value.C.intrinsic value.D.cost.E.None of the above.Difficulty level: MediumTopic: GAAPType: CONCEPTS43.Which of the following statements concerning the income statement is true?A.It measures performance over a specific period of time.B.It determines after-tax income of the firm.C.It includes deferred taxes.D.It treats interest as an expense.E.All of the above.Difficulty level: MediumTopic: INCOME STATEMENTType: CONCEPTS44.According to generally accepted accounting principles (GAAP), revenue is recognized as income when:A.a contract is signed to perform a service or deliver a good.B.the transaction is complete and the goods or services are delivered.C.payment is requested.D.income taxes are paid.E.All of the above.Difficulty level: MediumTopic: GAAP INCOME RECOGNITIONType: CONCEPTS45.Which of the following is not included in the computation of operating cash flow?A.Earnings before interest and taxesB.Interest paidC.DepreciationD.Current taxesE.All of the above are includedDifficulty level: MediumTopic: OPERATING CASH FLOWType: CONCEPTS capital spending is equal to: additions to net working capital.B.the net change in fixed assets. income plus depreciation.D.total cash flow to stockholders less interest and dividends paid.E.the change in total assets.Difficulty level: MediumTopic: NET CAPITAL SPENDINGType: CONCEPTS47.Cash flow to stockholders is defined as:A.interest payments.B.repurchases of equity less cash dividends paid plus new equity sold.C.cash flow from financing less cash flow to creditors.D.cash dividends plus repurchases of equity minus new equity financing.E.None of the above.Difficulty level: MediumTopic: CASH FLOW TO STOCKHOLDERSType: CONCEPTS48.Free cash flow is:A.without cost to the firm. income plus taxes.C.an increase in net working capital.D.cash that the firm is free to distribute to creditors and stockholders.E.None of the above.Difficulty level: MediumTopic: FREE CASH FLOWType: CONCEPTS49.The cash flow of the firm must be equal to:A.cash flow to stockholders minus cash flow to debtholders.B.cash flow to debtholders minus cash flow to stockholders.C.cash flow to governments plus cash flow to stockholders.D.cash flow to stockholders plus cash flow to debtholders.E.None of the above.Difficulty level: MediumTopic: CASH FLOWType: CONCEPTS50.Which of the following are all components of the statement of cash flows?A.Cash flow from operating activities, cash flow from investing activities, and cash flow from financing activitiesB.Cash flow from operating activities, cash flow from investing activities, and cash flow from divesting activitiesC.Cash flow from internal activities, cash flow from external activities, and cash flow from financing activitiesD.Cash flow from brokering activities, cash flow from profitable activities, and cash flow from non-profitable activitiesE.None of the above.Difficulty level: MediumTopic: STATEMENT OF CASH FLOWSType: CONCEPTS51.One of the reasons why cash flow analysis is popular is because:A.cash flows are more subjective than net income.B.cash flows are hard to understand.C.it is easy to manipulate, or spin the cash flows.D.it is difficult to manipulate, or spin the cash flows.E.None of the above.Difficulty level: MediumTopic: CASH FLOW MANAGEMENTType: CONCEPTS52.A firm has $300 in inventory, $600 in fixed assets, $200 in accounts receivable, $100 in accounts payable, and $50 in cash. What is the amount of the current assets?A.$500B.$550C.$600D.$1,150E.$1,200Current assets = $300 + $200 + $50 = $550Difficulty level: MediumTopic: CURRENT ASSETSType: PROBLEMS53.Total assets are $900, fixed assets are $600, long-term debt is $500, and short-term debt is $200. What is the amount of net working capital?A.$0B.$100C.$200D.$300E.$400Net working capital = $900 - $600 - $200 = $100Difficulty level: MediumTopic: NET WORKING CAPITALType: PROBLEMS54.Brad's Company has equipment with a book value of $500 that could be sold today at a 50% discount. Its inventory is valued at $400 and could be sold to a competitor for that amount. The firm has $50 in cash and customers owe it $300. What is the accounting value of its liquid assets?A.$50B.$350C.$700D.$750E.$1,000Liquid assets = $400 + $50 + $300 = $750Difficulty level: MediumTopic: LIQUIDITYType: PROBLEMS55.Martha's Enterprises spent $2,400 to purchase equipment three years ago. This equipment is currently valued at $1,800 on today's balance sheet but could actually be sold for $2,000. Net working capital is $200 and long-term debt is $800. Assuming the equipment is the firm's only fixed asset, what is the book value of shareholders' equity?A.$200B.$800C.$1,200D.$1,400E.The answer cannot be determined from the information providedBook value of shareholders' equity = $1,800 + $200 - $800 = $1,200Difficulty level: MediumTopic: BOOK VALUEType: PROBLEMS56.Art's Boutique has sales of $640,000 and costs of $480,000. Interest expense is $40,000 and depreciation is $60,000. The tax rate is 34%. What is the net income?A.$20,400B.$39,600C.$50,400D.$79,600E.$99,600Taxable income = $640,000 - $480,000 - $40,000 - $60,000 = $60,000; Tax= .34($60,000) = $20,400; Net income = $60,000 - $20,400 = $39,600Difficulty level: MediumTopic: NET INCOMEType: PROBLEMS57.Given the tax rates as shown, what is the average tax rate for a firm with taxable income of $126,500?A.21.38%B.23.88%C.25.76%D.34.64%E.39.00%Tax = .15($50,000) + .25($25,000) + .34($25,000) + .39($126,500 - $100,000) = $32,585; Average tax rate = $32,585 $126,500 = .2576 = 25.76%Difficulty level: MediumTopic: MARGINAL TAX RATEType: PROBLEMS58.The tax rates are as shown. Your firm currently has taxable income of $79,400. How much additional tax will you owe if you increase your taxable income by $21,000?A.$7,004B.$7,014C.$7,140D.$7,160E.$7,174Additional tax = .34($100,000 - $79,400) + .39($79,400 + $21,000 - $100,000) = $7,160 Difficulty level: MediumTopic: TAXESType: PROBLEMS59.Your firm has net income of $198 on total sales of $1,200. Costs are $715 and depreciation is $145. The tax rate is 34%. The firm does not have interest expenses. What is the operating cash flow?A.$93B.$241C.$340D.$383E.$485Earnings before interest and taxes = $1,200 - $715 - $145 = $340; Tax = [$198 (1- .34)] - $198 = $102; Operating cash flow = $340 + $145 - $102 = $383Difficulty level: MediumTopic: OPERATING CASH FLOWType: PROBLEMS60.Teddy's Pillows has beginning net fixed assets of $480 and ending net fixed assets of $530. Assets valued at $300 were sold during the year. Depreciation was $40. What is the amount of capital spending?A.$10B.$50C.$90D.$260E.$390Net capital spending = $530 - $480 + $40 = $90Difficulty level: MediumTopic: NET CAPITAL SPENDINGType: PROBLEMS61.At the beginning of the year, a firm has current assets of $380 and current liabilities of $210. At the end of the year, the current assets are $410 and the current liabilities are $250. What is the change in net working capital?A.-$30B.-$10C.$0D.$10E.$30Change in net working capital = ($410 - $250) - ($380 - $210) = -$10Difficulty level: MediumTopic: CHANGE IN NET WORKING CAPITALType: PROBLEMS62.At the beginning of the year, long-term debt of a firm is $280 and total debt is $340. At the end of the year, long-term debt is $260 and total debt is $350. The interest paid is $30. What is the amount of the cash flow to creditors?A.-$50B.-$20C.$20D.$30E.$50Cash flow to creditors = $30 - ($260 - $280) = $50Difficulty level: MediumTopic: CASH FLOW TO CREDITORSType: PROBLEMS63.Pete's Boats has beginning long-term debt of $ and ending long-term debt of $210. The beginning and ending total debt balances are $340 and $360, respectively. The interest paid is $20. What is the amount of the cash flow to creditors?A.-$10B.$0C.$10D.$40E.$50Cash flow to creditors = $20 - ($210 - $) = -$10Difficulty level: MediumTopic: CASH FLOW TO CREDITORSType: PROBLEMS64.Peggy Grey's Cookies has net income of $360. The firm pays out 40% of the net income to its shareholders as dividends. During the year, the company sold $80 worth of common stock. What is the cash flow to stockholders?A.$64B.$136C.$144D.$224E.$296Cash flow to stockholders = .40($360) - $80 = $64Difficulty level: MediumTopic: CASH FLOW TO STOCKHOLDERSType: PROBLEMS65.Thompson's Jet Skis has operating cash flow of $218. Depreciation is $45 and interest paid is $35. A net total of $69 was paid on long-term debt. The firm spent $ on fixed assets and increased net working capital by $38. What is the amount of the cash flow to stockholders?A.-$104B.-$28C.$28D.$114E.$142Cash flow of the firm = $218 - $38 - $ = $0; Cash flow to creditors = $35 - (-$69) = $104; Cash flow to stockholders = $0 - $104 = -$104Difficulty level: MediumTopic: CASH FLOW TO STOCKHOLDERSType: PROBLEMS66. What is the change in the net working capital from 2007 to 2008?A. $1,235B. $1,C. $1,335D. $3,405E. $4,740Change in net working capital = ($7,310 - $2,570) - ($6,225 - $2,820) = $1,335Difficulty level: MediumTopic: CHANGE IN NET WORKING CAPITALType: PROBLEMS67.What is the amount of the non-cash expenses for 2008?A.$570B.$630C.$845D.$1,370E.$2,000The non-cash expense is depreciation in the amount of $1,370. Difficulty level: MediumTopic: NONCASH EXPENSESType: PROBLEMS68.What is the amount of the net capital spending for 2008?A.-$290B.$795C.$1,080D.$1,660E.$2,165Net capital spending = $10,670 - $10,960 + $1,370 = $1,080 Difficulty level: MediumTopic: NET CAPITAL SPENDINGType: PROBLEMS69.What is the operating cash flow for 2008?A.$845B.$1,930C.$2,215D.$2,845E.$3,060Operating cash flow = $1,930 + $1,370 - $455 = $2,845 Difficulty level: MediumTopic: OPERATING CASH FLOWType: PROBLEMS70.What is the cash flow of the firm for 2008?A.$430B.$485C.$1,340D.$2,590E.$3,100Operating cash flow = $1,930 + $1,370 - $455 = $2,845; Change in net working capital = ($7,310 - $2,570) - ($6,225 - $2,820) = $1,335; Net capital spending = $10,670 - $10,960 + $1,370 = $1,080; Cash flow of the firm = $2,845 - $1,335 - $1,080 = $430Difficulty level: MediumTopic: CASH FLOW OF THE FIRMType: PROBLEMS71.What is the amount of net new borrowing for 2008?A.-$225B.-$25C.$0D.$25E.$225Net new borrowing = $8,100 - $7,875 = $225Difficulty level: MediumTopic: NET NEW BORROWINGType: PROBLEMS72.What is the cash flow to creditors for 2008?A.-$405B.-$225C.$225D.$405E.$630Cash flow to creditors = $630 - ($8,100 - $7,875) = $405 Difficulty level: MediumTopic: CASH FLOW TO CREDITORSType: PROBLEMS73.What is the net working capital for 2008?A.$345B.$405C.$805D.$812E.$1,005Net working capital = $75 + $502 + $640 - $405 = $812Difficulty level: MediumTopic: NET WORKING CAPITALType: PROBLEMS74.What is the change in net working capital from 2007 to 2008?A.-$93B.-$7C.$7D.$85E.$97Change in net working capital = ($75 + $502 + $640 - $405) - ($70 + $563 + $662 - $390) = -$93Difficulty level: MediumTopic: CHANGE IN NET WORKING CAPITALType: PROBLEMS75.What is net capital spending for 2008?A.-$250B.-$57C.$0D.$57E.$477Net capital spending = $1,413 - $1,680 + $210 = -$57Difficulty level: MediumTopic: NET CAPITAL SPENDINGType: PROBLEMS76.What is the operating cash flow for 2008?A.$143B.$297C.$325D.$353E.$367Earnings before interest and taxes = $785 - $460 - $210 = $115; Taxable income = $115 - $35 = $80; Taxes = .35($80) = $28; Operating cash flow = $115 + $210 - $28 = $297Difficulty level: MediumTopic: OPERATING CASH FLOWType: PROBLEMS。

公司理财精要chap002

2.1
McGraw-Hill/Irwin McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Outline
The
Balance Sheet The Income Statement Taxes Cash Flow
Financial Statements, Taxes, and Cash Flow
Chapter 2
McGraw-Hill/Irwin McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Key Concepts and Skills
income. What is the firm’s tax liability? What is the average tax rate? What is the marginal tax rate? If you are considering a project that will increase the firm’s taxable income by $1 million, what tax rate should you use in your analysis?
Know
the difference between book value and market value Know the difference between accounting income and cash flow Know the difference between average and marginal tax rates Know how to determine a firm’s cash flow from its financial statements

罗斯公司理财-Chap002课件

245 221
Total fixed assets
$1,118 $1,035
Total assets
$1,879 $1,742
Current Liabilities: Accounts payable Notes payable Accrued expenses Total current liabilities
$805 $725
Total liabilities and stockholder's equity $1,879 $1,742
罗斯公司理财-Chap002
Balance Sheet Analysis
• When analyzing a balance sheet, the Finance Manager should be aware of three concerns: 1. Accounting liquidity 2. Debt versus equity 3. Value versus cost
Chapter 2
Financial Statements and Cash Flow
罗斯公司理财-Chap002
CMocpGyraigwh-tH©ill2/I0r1w1inby The McGraw-Hill Companies, Inc. All rights reserved.
Key Concepts and Skills
罗斯公司理财-Chap002
Take Notice ! •(oAnssetths eexafcotllyloewquianl gliabBilaitileasn+ceequSithyeet)
• Assets are listed in order of liquidity

Chap002_lgm

Assets = Liabilities + Shareholders’ Equity
or
Shareholders’ Equity = Assets – Liabilities
Compare to:
Value of Equity = Value of Firm – Value of Debt
2-5
The Income Statement: Dell Inc.
Ending Balance Sheet
Cash + Other Assets
Other Assets +
Statement of Shareholders’ Equity
Total Assets Investment and disinvestment by owners - Liabilities Net income and other earnings Owners’ equity Net change in owners’ equity Owners’ equity - Liabilities Total Assets
• Costs of buying plant are not expensed when incurred. Rather, the cost is “capitalized” on the balance sheet and depreciated over years when the plant produces revenues. Depreciation is a method of matching the cost of plant to the revenues the plant generates.
• Intrinsic Price-to-Book Ratio:

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2-22

Over-the-counter bulletin board market (OTC.BB)
◦ Small companies ◦ No listing requirements ◦ Companies must file regulatory reports with SEC

Pink Shenge CBOE ICE

2-21
Trade the right to buy or sell a certain amount of a commodity or financial instrument at a set price delivered at a future point in time

Institutions can trade among themselves and bypass broker and trading fees Permit “after-hours” trading, longer trading hours Facilitate more competition Facilitate smaller spreads

Contracts are normally reversed (closed out) prior to expiration The two largest futures exchanges:
◦ The Chicago Mercantile Exchange (CME) ◦ The Chicago Board of Trade (CBOT)
The Organization of the NYSE
2-3

The NASDAQ Stock Market Electronic Communication Networks (ECNs)

Other Organized Exchanges
Over-The-Counter Markets Institutional Trading Regulation of the Security Markets

2nd largest exchange in U.S. by dollar trading volume Ticker - NDAQ
Electronic stock exchange
2-18

Electronic trading systems that automatically match buy and sell orders at specified prices Also called alternative trading systems (ATSs)
2-6

Market
◦ Is a simple way of exchanging assets

Efficiency and Liquidity: efficient market occurs when prices
respond quickly to new information and liquidity is an asset can be converted into cash at its fair market value
Listing Fees: $100,000,000 shares outstanding;
annual listing fee for a $61,750 to Nasdaq or
$93,000 to the NYSE
2-15

Floor Brokers
House Brokers
◦ Act as agents for clients and execute buy and sell orders on the floor of the exchange
Sold Directly: by the corporation to the public
2-8

Distribution Syndicate
◦ Group of investment banks sharing the risk and burden of distribution

Prospectus
Execute orders for customers of NYSE member firms such as Merrill Lynch or for the firm’s direct account Individuals or employees of small “boutique” firms that execute orders for member or nonmember firms and help house brokers with overflow

Legislation affecting capital markets
2-2

The Market Environment
Market Functions Organization of The Primary Markets:
◦ The Investment Banker

Organization of the Secondary Markets
◦ Advertisement for a stock or bond
2-9
Top 10 Underwriters of Global Stocks and Bonds
2-10
Initial Public Offering (IPO) The process of bringing private companies to the public market for the first time
◦ Regional
2-14
Consolidated Tape
◦ shows prices of transactions on other exchanges in dually listed NYSE stocks
Listing Requirements for Firms
◦ New York Stock Exchange (NYSE) has the most restrictive listing requirements

Competition and Allocation of Capital: investors primarily compete for funds

Secondary Markets: provide an avenue for converting financial
instruments into cash Primary Markets: trading new securities
Act as broker-dealer or as exchange Retail and institutional investors, market makers, and broker-dealers
2-19

Advantages Integrate markets Allow anonymity in trading Lower the cost of trading
Independent Brokers

Specialists

About ¼ of exchange membership Each stock has a specialist assigned to it Most specialists are responsible for more than one stock Handle special orders such as “limit” bids or offers Maintain a continuous, liquid, and orderly market in assigned stocks

2-4
• Efficient markets are a result of investors trading on the unexpected portion of announcements • The easier it is to trade on surprises, the more efficient markets should be

2-7
Underwriting Function Investment Banker ◦ Middleman involved in the distribution of securities from issuing corporation to investors

Underwriting ◦ Guarantee by investment banker to purchase issuer’s securities at a fixed price Best Effort: basis where the issuing firm assumes the risk and simple takes
◦ Companies choosing not to file with SEC ◦ Little public information available
2-23
OTC markets exist for:
◦ Stocks ◦ Corporate Bonds ◦ Mutual Funds ◦ Federal Government Securities ◦ State and Local Bonds ◦ Commercial Paper ◦ Negotiable Certificates of Deposits ◦ Various other securities