公司金融选择题

第一章

1 A secondary market transaction can occur in either a dealer market or an auction market.

A) True

B) False

2 Control of a firm ultimately rests with the stockholders.

A) True

B) False

3 It is generally easier to form a sole proprietorship than it is to form a corporation.

A) True

B) False

4 One advantage of the corporate form of organization is that you can buy shares in

a corporation such as Wal-Mart without worrying about being held personally liable for the corporation's liabilities.

A) True

B) False

5 A financial manager must be concerned with three basic areas: Capital budgeting, capital structure, and working capital.

A) True

B) False

6 Which of the following responses best completes the following: The duties of a working capital manager include

A) Deciding how to raise the money required to fund a project

B) Choosing how much inventory a firm should invest in

C) Deciding the amount of dividends a firm should pay out

D) Deciding which projects a firm should undertake

E) Deciding what fixed assets to purchase

7 In a ____________, none of the owners are offered the protection of limited liability.

A) sole proprietorship

B) limited liability company

C) corporation

D) limited partnership

E) S corporation

8 Which of the following is the BEST description of the goal of the financial manager in a corporation where shares are publicly traded?

A) Maximize sales

B) Maximize profits

C) Avoid financial distress

D) Maintain steady earnings growth

E) Maximize the current value per share of the existing stock

9 Which of the following is an answer to "What are the duties of a financial manager?"

I. Deciding how much interest to pay the holders of the corporation's bonds

II. Deciding the mix of long-term debt and equity

III. Deciding which projects a firm should undertake

IV. Deciding how much short-term debt to use

A) I and II only

B) I, II, and III only

C) II and III only

D) II, III, and IV only

E) I, II, III, and IV

第二章

1 If a firm has operating cash flow of $12,000, has a change in net working capital of $8,000, has net capital spending of $12,000, and has cash flow to creditors of $5,000, then cash flow to stockholders must be -$13,000.

A) True

B) False

2 If a firm has cash flow from assets of $12,000, dividends paid of $4,000 and net new equity sales of $4,000, then cash flow to creditors must be $4,000.

A) True

B) False

3 Which of the following assets would most likely be considered the least liquid?

A) A share of common stock in IBM

B) A bond issued by Microsoft

C) A share of preferred stock in K-Mart Corp.

D) A Custer, South Dakota municipal bond

E) A U.S. Treasury bill

4 You are to determine the level of net capital spending made by a firm during 1996. If you have the balance sheet and income statements for the years 199

5 and 199

6 how would you go about your task?

A) Ending net fixed assets - beginning net fixed assets + depreciation for 1996

B) Beginning net fixed assets + ending net fixed assets - depreciation for 1995

C) Ending net fixed assets - beginning net fixed assets - depreciation + taxes for 1996

D) Ending net fixed assets - beginning net fixed assets + depreciation - taxes for 1996

E) Beginning net fixed assets - ending net fixed assets + depreciation for 1996

5 Consider the following statement: A firm that earns negative net income will quickly find itself in financial distress.

I. This statement is false because it is possible for a firm to have negative profits but still have positive cash flows

II. This statement is false because accounting profits do not generally equal cash flow and it is a lack of cash, not profits, that causes financial distress

III. This statement is true because negative profits mean negative cash flows

A) I only

B) II only