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NGÂN H̀NG CÂU H I THI H C PH N: FINANCIAL MANAGEMENT (FMGM0211) (Dùng cho h đ i h c quy l p Ch t l ng cao) - DH TM _TM U B ng tr ng s m i thi tr c nghi m Financial management M c đ câu h i Phân b câu h i Ph n Ghi ch́ theo ph n C pđ C pđ C pđ Overview of FM 3 TVM and financial ratio 10 3 Over view of WCM 1 Cash management 2 AR and Inventory management 6 Short-term financing 2 10 Investment in capital asset 1 Long-term financing 0 Special areas in FM T ng 25 15 10 50 M i đ thi ć: 50 câu, phân b vào ph n nh Tùy theo h c ph n tùy theo cách chia c a B môn mà s Ph n có th khác Th i gian thi: 60 ph́t làm Font ch s d ng cho Ngân hàng đ thi Times New Roman; c ch 12 B ng l u ngân hàng câu h i cho m t h c ph n STT N i dung câu h i The goal of the firm should be: "Shareholder wealth" in a firm is represented by: The long-run objective of financial management is to: Investment decisions are answers to questions: Financing decisions are answers to questions: A market where new securities are bought and Ph ng ́n A.Maximization of shareholder wealth B Maximization of profits C Maximization of consumer satisfaction D Maximization of sales A the market price per share of the firm's common stock B the number of people employed in the firm C the book value of the firm's assets less the book value of its liabilities D the amount of salary paid to its employees A maximize the value of the firm's common stock B maximize earnings per share C maximize return on investment D maximize market share A What is the optimal firm size? B What is the best type of financing? C What is the best financing mix? D What is the best dividend policy? A What is the best dividend policy? B What is the optimal firm size? C What specific assets should be acquired? D What assets should be eliminated? A Primary Market B Money Market Trang STT N i dung câu h i sold for the first time is: A market for existing (used) securities rather than new issues is: You are about to determine your corporation’s taxable income Which of the below would not be included as a tax-deductible expense? Which of the following is not the responsibility of financial management? Which of the following 10 items is NOT included in current assets? 11 Cost of capital is: 12 A Dividend expense B Depreciation expense C Cost of goods sold D Marketing expenses A preparation of the firm's accounting statements B allocation of funds to current and capital assets C obtaining the best mix of financing alternatives D development of an appropriate dividend policy A Bonds B Accounts receivable C Inventory D Cash A the average cost of the firm’s assets B the coupon rate of debt C a hurdle rate set by the board of directors D the after-tax cost of debt A Short-term debt securities B Foreign stocks C Consumer automobile loans D U.S stocks A individuals buying and selling the stock B the board of directors of the firm C the stock exchange on which the stock is listed D the president of the company A the creation of value for shareholders B the number and types of products or services provided by the firm C the minimization of the amount of taxes paid by the firm D the dollars profits earned by the firm A Bankers’ acceptances B Preferred stock C Corporate bonds D Common stock A Common stock B Negotiable certificates of deposit C Bankers’ acceptances D Commercial note A Market Value (per share) B Liquidating Value (per share) C Book Value (per share) D Par Value – The face value A Borrow short term to finance additional fixed assets B Issue long-term debt to buy inventory C Sell common stock to reduce current liabilities D Sell fixed assets to reduce accounts payable DH TM _TM U Ph ng ́n C Capital Market D Secondary Market A Secondary Market B Money Market C Capital Market D Primary Market Money markets are markets for The market price of a share 13 of common stock is determined by: 14 The focal point of financial management in a firm is: 15 Money market instruments include: 16 Capital market instruments include: The current price at which 17 the stock is currently trading is: Which of the following 18 would NOT improve the current ratio? Trang STT N i dung câu h i The gross profit margin is unchanged, but the net profit 19 margin declined over the same period This could have happened if The principal advantage of 20 the sole proprietorship form of business organization is: The principal advantage of 21 the corporate form of business organization is that: ng ́n A Govt increased the tax rate B cost of goods sold increased relative to sales C sales increased relative to expenses D dividends were decreased A Single tax filing on individual form B Unlimited liability C Hard to raise additional capital D Transfer of ownership difficulties A Limited liability B Unlimited liability C Low setup cost D Personal tax on profits A sale of shares and bonds B credit management C inventory control D the receipt and disbursement of funds A Market value B Redemption value C Face value D Maturity value A Dividends B Face value C Redemption value D Book value DH TM _TM U Which of the following are not among the daily 22 activities of financial management? Ph is the price 23 at which the bond is traded in the stock exchange enhance the market value of shares 24 and therefore equity capital is not free of cost A(n) _ would be an example of a 25 principal, while a(n) would be an example of an agent and are the 26 two versions of goals of the financial management of the firm A shareholder; manager B manager; owner C accountant; bondholder D shareholder; bondholder A Profit maximisation, Wealth maximization B Production maximisation, Sales maximisation C Sales maximisation, Profit maximization D Value maximisation, Wealth maximisation A Use the income statement to determine earnings after taxes (net income) and divide by the number of common shares outstanding B Use the income statement to determine earnings after taxes (net income) and divide by the previous period's earnings after taxes Then subtract from the previously calculated value How are earnings per share C Use the income statement to determine 27 calculated? earnings after taxes (net income) and divide by the number of common and preferred shares outstanding D Use the income statement to determine earnings after taxes (net income) and divide by the forecasted period's earnings after taxes Then subtract from the previously calculated value You saved VND 100 million A VND 125.97 million in years with the B VND 124.00 million 28 compound interest of 8% per C VND 356.01 million year How much will you D VND 257.71 million Trang Ph ng ́n A VND 163.76 million B VND 159.00 million C VND 346.01 million D VND 247.74 million A VND 188.96 million B VND 224.00 million C VND 376.61 million D VND 297.71 million DH TM _TM U STT N i dung câu h i receive at the end of the third year? You saved VND 130 million in years with the compound interest of 8% per 29 year How much will you receive at the end of the third year? You saved VND 150 million in years with the compound interest of 8% per 30 year How much will you receive at the end of the third year? The future value is $115 after one year at annum 31 interest rate of 10%, the present value will be The future value is $82.5 after years at annum 32 interest rate of 8%, the present value will be The future value is $500 after year at annum 33 interest rate of 15%, the present value will be An enterprise has total assets of VND 254,000 million, short-term debt is VND 34 58,000 million, long-term debt is VND 23,000 million What is the ratio of equity to total assets? An enterprise has total assets of VND 508,000 million, short-term debt is VND 35 110,000 million, long-term debt is VND 40,000 million What is the ratio of equity to total assets? An enterprise has total assets of VND 635.000 million short-term debt is VND 36 150.000 million; long-term debt is VND 70.000 million What is the ratio of equity to total assets? Your firm has the following income statement items: sales of $50,250,000; 37 income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $35,025,000; and A $104.55 B $127.78 C $126.5 D $103.5 A $70.73 B $65.5 C $70 D $69.23 A $248.59 B $250 C $267.63 D $321.15 A 68.11% B 31.89% C 77.16% D 22.84% A 70.47% B 51.79% C 67.86% D 28.64% A 65.35% B 41.89% C 78.16% D 52.83% A $4,360,000 B $15,552,000 C $58,000,000 D $5,110,000 Trang Ph ng ́n A $0.50 B $100,000 C $6.00 D $6.50 A 9.54% B 8.54% C 20.00% D 10.00% A 11.61% B 9.54% C 15.00% D 13.25% A 14.47% B 13.54% C 15.00% D 12.25% DH TM _TM U STT N i dung câu h i interest expense of $750,000 What is the amount of the firm’s earnings before taxes? What are the earnings per share (EPS) for a company that earned $100,000 last year in after-tax profits, has 38 200,000 common shares outstanding and $1.2 million in retained earning at the year end? Loan present value is $500 and future value is $600 39 after years; value of 'I = interest rate' will be Loan present value is $100 and future value is $300 40 after 10 years; value of 'I = interest rate' will be Loan present value is $500 and future value is $750 41 after years; value of 'I = interest rate' will be SL Co is looking for a 3month term source of $500 million to supplement working capital Viettinbank 42 accepts loans at annual nominal rate of interest of 14% a year Calculate the annual effective rate of interest: SL Co is looking for a 6month term source of $550 million to supplement working capital Viettinbank 43 accepts loans at annual nominal rate of interest of 15% a year Calculate the annual effective rate of interest: SL Co is looking for a 6month term source of $650 million to supplement working capital Viettinbank 44 accepts loans at annual nominal rate of interest of 12% a year Calculate the annual effective rate of interest: OY has a total asset of 45 $3,600,000, short-term debt of $300,000, long-term debt A 14,75% B 12,12% C 13,41% D 11,78% A 15,56% B 14,12% C 13,41% D 12,78% A 12,36% B 12,12% C 13,15% D 14,78% A 21,4% B 24,5% C 17,4% Trang Ph ng ́n D 20% A 23% B 24,5% C 18,4% D 20% A 16.67% B 20,5% C 18,4% D 17.04% A 15.28% B 17.32% C 21.47% D 18.74% DH TM _TM U STT N i dung câu h i of $600,000, and net income of $ 150,000, ROE ratio is: OY has a total asset of $2,500,000, short-term debt 46 of $350,000, long-term debt of $600,000, and net income of $ 230,000, ROE ratio is: OY has a total asset of $1,900,000, short-term debt 47 of $ 250,000, long-term debt of $450,000, and net income of $200,000, ROE ratio is: AB has a total asset of $ 3,600,000, short-term debt of $ 600,000, long-term debt 48 of $ 1,300,000, and net income of $ 550,000, ROA ratio is: AB has a total asset of $ 4,500,000, short-term debt of $ 900,000, long-term debt 49 of $ 1,300,000, and net income of $ 850,000, ROA ratio is: AB has a total asset of $ 2,400,000, short-term debt of $500,000, long-term debt 50 of $ 1,200,000, and net income of $ 500,000, ROA ratio is: SL Co is looking for a 4month term source of $600 million to supplement working capital Viettinbank 51 accepts loans at discount interest rate of 11% a year Calculate the annual effective rate of interest: SL Co is looking for a 6month term source of $550 million to supplement working capital Viettinbank 52 accepts loans at discount interest rate of 11.2% a year Calculate the annual effective rate of interest: SL Co is looking for a 3month term source of $650 million to supplement working capital Viettinbank 53 accepts loans at discount interest rate of 12% a year Calculate the annual effective rate of interest: A 18.89% B 18.32% C 21.47% D 17.74% A 20.83% B 19.32% C 21.47% D 18.74% A 11.86% B 10.83% C 12.11% D 13.21% A 12.22% B 11.83% C 12.10% D 13.21% A 12.96% B 13.83% C 11.52% D 10.21% Trang Ph ng ́n A $109.79 million B $121.89 million C $122.89 million D $123.23 million A $47.69 million B $52.33 million C $49.65 million D $45.23 million DH TM _TM U STT N i dung câu h i Mr X takes a loan of $1,000 million from HSBC Bank The rate of interest is 7% per annum The first instalment will be paid at the end of 54 year 15 Determine the amount of equal annual instalments if Mr X wishes to repay the amount in 15 instalments Mr X takes a loan of $320 million from HSBC Bank The rate of interest is 8% per annum The first instalment will be paid at the end of 55 year 10 Determine the amount of equal annual instalments if Mr X wishes to repay the amount in 10 instalments Mr X takes a loan of $1,000 million from HSBC Bank The rate of interest is 7% per annum The first instalment will be paid at the end of 56 year 15 Determine the amount of equal annual instalments if Mr X wishes to repay the amount in 15 instalments Company X is looking for a 4-month term source of VND 700 million The bank Y accepts a loan with 57 interest rate of 9% per year and deposits rate at 12% What is the annual effective rate of interest? Company X is looking for a 3-month term source of VND 600 million The bank Y accepts a loan with 58 interest rate of 8% per year and deposits rateat 15% What is the annual effective rate of interest? Company X is looking for a 4-month term source of VND 500 million The bank Y accepts a loan with 59 interest rate of 8% per year and deposits rate at 18% What is the annual effective rate of interest? A $144.4 million B $121.3 million C $100 million D $135.2 million A 10.58% B 11.58% C 12.89% D 8.58% A 13.15% B 14.55% C 11.69% D 8.58% A 10.08% B 11.38% C 12.45% D 8.55% Trang Ph ng ́n A $235,649 B $225,000 C $205,225 D $215,000 A $188,519 B $175,050 C $165,225 D $185,402 A $282,779 B $279,500 C $265,225 D $275,000 DH TM _TM U STT N i dung câu h i To receive $250,000 from the bank after years, what 60 is your initial investment if the interest rate is 3%? (compound interest) To receive $200,000 from the bank after years, what 61 is your initial investment if the interest rate is 3%? (compound interest) To receive $300,000 from the bank after years, what 62 is your initial investment if the interest rate is 3%? (compound interest) Company X has a total asset of $ 4,650,000; short-term debt of $ 800,000; long-term 63 debt of $ 2,300,000 and net income of $ 750,000 What is the ROA? Company X has a total asset of $ 2,325,000; short-term debt of $ 400,000; long-term 64 debt of $ 1,150,000 and net income of $ 350,000 What is the ROA? Company X has a total asset of $ 5,580,000; short-term debt of $ 960,000; long-term 65 debt of $ 2,760,000 and net income of $ 350,000 What is the ROA? Mr Nam plans to save VND 10 million every year in 20 year to a pension fund with 66 interest rate of 10% per year (compound interest) After 20 years; how much he will receive? Mr Nam plans to save VND 15 million every year in 20 year to a pension fund with 67 interest rate of 10% per year (compound interest) After 20 years; how much he will receive? Mr Nam plans to save VND 20 million every year in 20 year to a pension fund with 68 interest rate of 10% per year (compound interest) After 20 years; how much he will receive? A 16.1% B 17.3% C 20.4% D 19.7% A 15.1% B 17.2% C 25.4% D 14.7% A 14.7% B 15.3% C 16.4% D 13.4% A VND 572.75 million B VND 675.62 million C VND 67.27 million D VND 76.27 million A VND 859.12 million B VND 805.62 million C VND 457.27 million D VND 777.27 million A VND 1145.50 million B VND 965.62 million C VND 1067.27 million D VND 776.27 million Trang Ph ng ́n A 22.1% B 24.5% C 19.4% D 17.5% A 21.1% B 24.9% C 19.2% D 13.7% A 24.6% B 23.5% C 18.4% D 16.5% DH TM _TM U STT N i dung câu h i Company X has a total asset of $ 2,130,000 short-term debt of $ 430,000 long-term 69 debt of $ 750,000, net income of $ 210,000 What is company X’s ROE? Company X has a total asset of $ 1,065,000 short-term debt of $ 215,000 long-term 70 debt of $ 375,000 net income of $ 100,000 What is company X’s ROE? Company X has a total asset of $ 3,195,000 short-term debt of $ 645,000 long-term 71 debt of $ 1,125,000 net income of $ 350,000 What is company X’s ROE? The present value is VND 800 million After years 72 with an annum interest rate of 14% (compound interest) the future value will be: The present value is VND 700 million After years 73 with an annum interest rate of 14% (compound interest) the future value will be: The present value is VND 600 million After years 74 with an annum interest rate of 14% (compound interest) the future value will be: refers to the amount invested in 75 various components of current assets is the length of time between the 76 firm’s actual cash expenditure and its own cash receipt 77 Net Working Capital is: The amount of current assets 78 that varies with seasonal requirements is: The amount of current assets 79 required to meet a firm’s long-term minimum needs A VND 1,351.17 million B VND 1,248.05 million C VND 4,488.08 million D VND 2,330.96 million A VND 1,182.27 million B VND 1,548.09 million C VND 1,288.06 million D VND 2,630.93 million A VND 1,013.38 million B VND 1,148.02 million C VND 1,488.02 million D VND 1,330.98 million A Gross working capital B Temporary working capital C Net working capital D Permanent working capital A Net operating cycle B Cash conversion cycle C Working capital cycle D Gross operating cycle A Current Assets - Current Liabilities B Current Assets + Current Liabilities C Current Assets / Current Liabilities D Current Liabilities - Current Assets A Temporary current assets B Permanent current assets C Temporary fixed assets D Permanent fixed assets A Permanent current assets B Temporary current assets C Temporary fixed assets D Permanent fixed assets Trang STT N i dung câu h i _ refers to the length of time allowed 80 by a firm for its customers to make payment for their purchases is NOT a part of Current Assets 82 is a part of Current Liabilities ng ́n A Credit period B Holding period C Pay-back period D Average collection period A Accounts Payable B Cash C Accounts Receivable D Inventory A Accounts Payable B Cash C Accounts Receivable D Inventory A is the amount of current assets required to meet a firm's long-term minimum needs B varies with seasonal needs C includes fixed assets D includes accounts payable A plus its receivable turnover in days (RTD) B minus its RTD C plus its RTD minus its payable turnover in days (PTD) D minus its RTD minus its PTD DH TM _TM U 81 Ph 83 Permanent working capital A firm's operating cycle is 84 equal to its inventory turnover in days (ITD) A (n) current operating asset financing approach will 85 result in permanent current assets and some seasonal current assets being financed using long-term securities Which of the following illustrates the use of a 86 hedging (or matching) approach to financing? In deciding the appropriate level of current assets for the 87 firm, management is confronted with Although short-term interest rates have historically averaged less than long-term rates, the heavy use of shortterm debt is considered to be 88 a(an) _current operating asset financing strategy because of the inherent risks of using shortterm financing Which of the following 89 would be consistent with a A conservative B aggressive C maturity matching D wrong A Permanent working capital financed with longterm liabilities B Short-term assets financed with long-term liabilities C Short-term assets financed with equity D All assets financed with 50 percent equity, 50 percent long-term debt mixture A a trade-off between profitability and risk B a trade-off between liquidity and marketability C a trade-off between equity and debt D a trade-off between short-term versus longterm borrowing A aggressive B conservative C maturity matching D wrong A Financing some long-term needs with shortterm funds Trang 10 STT N i dung câu h i investments is the same and is greater than zero A profitability index of 0.85 for a project means that: 179 Which of the following statements is correct? 180 181 182 183 184 DH TM _TM U 178 Ph ng ́n payments) C Investment a pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments) D Investment a pays $250 at the beginning of every year for the next 10 years (a total of 10 payments) A the project returns 85 cents in present value for each current dollar invested B the present value of benefits is 85% greater than the project's costs C the project's NPV is greater than zero D the payback period is less than one year A If the PI of a project is less than 1, its NPV should be less than B If the NPV of a project is greater than 0, its PI will equal C If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be D If the IRR of a project is greater than the discount rate, k, its PI will be less than and its NPV will be greater than The rate of interest offered by the fixed deposit scheme of a bank for 365 days and above is 12% What will be the status of $20,000 after two years if it is invested at this point of time? The new machine will cost $75,250 plus $12,250 for shipping and installation Net working capital will rise by $10,000 The depreciable basis of new machine is: The new machine will cost $75,250 plus $12,250 for shipping and installation Net working capital will rise by $10,000 The initial cash outflow (ICO) is: Basket Wonders has determined that the after-tax cash flows for the project will be $10,000; $12,000; $14,000; $12,000; and $10,000, respectively, for each of the Years through The initial cash outlay will be $50,000 The Payback Period (PBP) is: Basket Wonders has determined that the after-tax cash flows for the project A $25,088 B $28,032 C $24,048 D $22,056 A $87,500 B $97,500 C $63,000 D $85,250 A $97,500 B $63,000 C $87,500 D $85,250 A 4.2 years B 3.2 years C 4.8 years D 3.8 years A 13.65% B 15.63% C 16.35% Trang 24 Ph ng ́n D 14.56% A -$20,694 B $20,694 C -$26,094 D $26,094 DH TM _TM U STT N i dung câu h i will be $26,000; $28,000; $30,000; $32,000; and $30,000, respectively, for each of the Years through The initial cash outlay will be $100,000 The Internal Rate of Return (IRR) is: Basket Wonders has determined that the after-tax cash flows for the project will be $25,000; $27,000; $30,000; $32,000; and 185 $24,000, respectively, for each of the Years through The initial cash outlay will be $120,000 The Net Present Value (NPV) at 12% is: X has determined that the before-tax cash flows for the project will be $30,000; $32,000; $32,000; $28,000, respectively, for each of the Years through The initial cash outlay will be $200,000 Final salvage 186 value of asset is $5,000 Assuming that the marginal tax rate equals 25% (not on salvage value of asset) The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 4: X has determined that the before-tax cash flows for the project will be $15,000; $16,000; $18,000; $13,000, respectively, for each of the Years through The initial cash outlay will be 187 $120,000 Final salvage value of asset is zero Assuming that the marginal tax rate equals 28% The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 4: X has determined that the before-tax cash flows for the 188 project will be $25,000; $28,000; $30,000; $35,000, respectively, for each of the A $72,500; $74,000; $74,000; $76,000 B $22,500; $24,000; $24,000; $26,000 C $80,000; $82,000; $82,000; $78,000 D $72,500; $74,000; $74,000; $71,000 A $40,800; $41,520; $42,960; $39,360 B $22,500; $24,000; $24,000; $26,000 C $80,000; $82,000; $82,000; $78,000 D $72,500; $74,000; $74,000; $71,000 A $93,000; $95,160; $96,600; $100,200 B $122,500; $124,000; $124,000; $126,000 C $80,000; $82,000; $82,000; $78,000 D $72,500; $74,000; $74,000; $71,000 Trang 25 Ph ng ́n DH TM _TM U STT N i dung câu h i Years through The initial cash outlay will be $300,000 Final salvage value of asset is zero Assuming that the marginal tax rate equals 25% The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 4: Basket Wonders has determined that the beforetax cash flows for the project will be $70,000; $84,000; $94,000; $62,000, respectively, for each of the Years through The initial cash outlay will be $500,000 Final salvage 189 value of asset is $10,000 Assuming that the marginal tax rate equals 25% (not on salvage value of asset) The company expects to depreciate its assets on a straight-line basis The Net Present Value (NPV) at 15% is: Basket Wonders has determined that the beforetax cash flows for the project will be $15,000; $16,000; $18,000; $13,000, respectively, for each of the Years through The initial cash outlay will be $120,000 Final salvage 190 value of asset is $5,000 Assuming that the marginal tax rate equals 28% (not on salvage value of asset) The company expects to depreciate its assets on a straight-line basis The Net Present Value (NPV) at 10% is: Basket Wonders has determined that the beforetax cash flows for the project will be $25,000; $20,000; 191 $18,000; $25,000, respectively, for each of the Years through The initial cash outlay will be $200,000 Final salvage A $28.8 thousand B $20.8 thousand C $25.4 thousand D -$9.6 thousand A $13.98 thousand B $15.25 thousand C $25.4 thousand D -$10.6 thousand A $15,62 thousand B $16,25 thousand C $18,43 thousand D $19,6 thousand Trang 26 Ph ng ́n A $122,500; $124,000; $127,000; $131,000 B $22,500; $24,000; $27,000; 21,000 C $122,500; $124,000; $127,000; $121,000 D $22,500; $24,000; $27,000; $31,000 DH TM _TM U STT N i dung câu h i value of asset is $10,000 Assuming that the marginal tax rate equals 28% (not on salvage value of asset) The company expects to depreciate its assets on a straight-line basis The Net Present Value (NPV) at 10% is: X has determined that the before-tax cash flows for the project will be $30,000; $32,000; $36,000; $30,000; $28,000, respectively, for each of the Years through The initial cash outlay will be $500,000 Final 192 salvage value of asset is $10,000 Assuming that the marginal tax rate equals 25% (not on salvage value of asset) The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 5: X has determined that the before-tax cash flows for the project will be $24,000; $26,000; $24,000; $22,000; $18,000, respectively, for each of the Years through The initial cash outlay will be $200,000 Final 193 salvage value of asset is $15,000 Assuming that the marginal tax rate equals 28% (not on salvage value of asset) The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 5: X has determined that the before-tax cash flows for the project will be $20,000; $25,000; $25,000; $30,000; $35,000, respectively, for each of the Years through 194 The initial cash outlay will be $250,000 Final salvage value of asset is $15,000 Assuming that the marginal tax rate equals 28% (not on salvage value of $122,500; 22,500; $122,500; $22,500; A $57,280; $58,720; $57,280; $55,840; $67,960 B $22,500; $24,000; $27,000; 22,500; 21,000 C $122,500; $124,000; $127,000; $122,500; $121,000 D $22,500; $24,000; $27,000; $22,500; $31,000 A $64,400; $68,000; $68,000; $71,600; $90,200 B $57,280; $58,720; $57,280; $55,840; $67,960 C $122,500; $124,000; $127,000; $122,500; $131,000 D $22,500; $24,000; $27,000; $22,500; $31,000 Trang 27 Ph ng ́n A $7,450 B $9,250 C $30,180 D -$31,120 DH TM _TM U STT N i dung câu h i asset) The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 5: X has determined that the before-tax cash flows for the project will be: $51,500; $53,000; $53,000; $49,000, respectively, for each of the Years through The initial cash outlay will be 195 $500,000 Final salvage value of asset is $10,000 Assuming that the marginal tax rate equals 25% (not on salvage value of asset) The Net Present Value (NPV) at 15% is: X has determined that the before-tax cash flows for the project will be: $35,000; $30,000; $40,000; $38,000, respectively, for each of the Years through The 196 initial cash outlay will be $350,000 Final salvage value of asset is zero Assuming that the marginal tax rate equals 28% The Net Present Value (NPV) at 15% is: X has determined that the before-tax cash flows for the project will be: $25,000; $28,000; $30,000; $35,000, respectively, for each of the Years through The 197 initial cash outlay will be $300,000 Final salvage value of asset is zero Assuming that the marginal tax rate equals 28% The Net Present Value (NPV) at 15% is: X has determined that the before-tax cash flows for the project will be $34,000; $36,000; $38,000; $30,000; $28,000, respectively, for 198 each of the Years through The initial cash outlay will be $250,000 Final salvage value of asset is $15,000 Assuming that the A $8,450 B $9,250 C $10,180 D $7,120 A $4,210 B $8,450 C $7,450 D $7,120 A $75,500; $77,000; $78,500; $72,500; $86,000 B $84,000; $86,000; $88,000; $80,000; $78,000 C $25,500; $27,000; $28,500; $22,500; $36,000 D $75,500; $77,000; $78,500; $72,500; $71,000 Trang 28 Ph ng ́n A $74,400; $78,000; $78,000; $81,600; $100,200 B $84,000; $86,000; $88,000; $80,000; $78,000 C $25,500; $27,000; $28,500; $22,500; $36,000 D $75,500; $77,000; $78,500; $72,500; $71,000 DH TM _TM U STT N i dung câu h i marginal tax rate equals 25% (not on salvage value of asset) The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 5: X has determined that the before-tax cash flows for the project will be $20,000; $25,000; $25,000; $30,000; $25,000, respectively, for each of the Years through The initial cash outlay will be $300,000 Final 199 salvage value of asset is $15,000 Assuming that the marginal tax rate equals 28% (not on salvage value of asset) The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 5: X has determined that the before-tax cash flows for the project will be $35,000; $30,000; $40,000; $38,000; $30,000, respectively, for each of the Years through The initial cash outlay will be $500,000 Final 200 salvage value of asset is $15,000 Assuming that the marginal tax rate equals 28% (not on salvage value of asset) The Company expects to depreciate its assets on a straight-line basis Net cash flow for year to 5: Company X has determined that the earning after tax for the project of buying a new machine will be VND 22.5; 24; 24; 21 million, respectively, for each of the Years through The 201 initial investment is VND 200 million Final salvage value of the machine after year is VND million Assuming that the marginal tax rate equals 25% (not on salvage value of asset) The A $95,200; $106,600 B $74,400; $100,200 C $75,500; $86,000 D $75,500; $71,000 $91,600; $98,800; $97,360; $78,000; $78,000; $81,600; $77,000; $78,500; $72,500; $77,000; $78,500; $72,500; A VND 11.11 million B VND 8.25 million C VND 30.18 million D VND -131.64 million Trang 29 Ph ng ́n DH TM _TM U STT N i dung câu h i Company expects to depreciate its assets on a straight-line basis The cost of capital of the company is 15% per year What is the net present value (NPV) of this project? Company X has determined that the earning after tax for the project of buying a new machine will be VND 45; 48; 48; 42 million, respectively, for each of the Years through The initial investment is VND 400 million Final salvage value of the machine after 202 year is VND 10 million Assuming that the marginal tax rate equals 25% (not on salvage value of asset) The Company expects to depreciate its assets on a straight-line basis The cost of capital of the company is 15% per year What is the net present value (NPV) of this project? Company X has determined that the earning after tax for the project of buying a new machine will be VND 56.25; 60; 60; 52.5 million respectively, for each of the Years through The initial investment is VND 500 million Final salvage value of the machine after 203 year is VND 12.5 million Assuming that the marginal tax rate equals 25% (not on salvage value of asset) The Company expects to depreciate its assets on a straight-line basis The cost of capital of the company is 15% per year What is the net present value (NPV) of this project? A project with the initial investment of VND 1,000 million, has an operating 204 period of years and earning after-tax income of VND 300 million per year A VND 22.22 milion B VND 20.25 million C VND 40.15 million D VND -101.35 million A VND 27.77 milion B VND 25.7 million C VND 30.75 million D VND -121.71 million A Deny this project because PI C Accept this project because PI>1 D Deny this project because PI 1 D Deny this project because PI 1 D Deny this project because PI discount rate B Deny this project because IRR < discount rate C Deny this project because IRR> extraction rate D Accept this project because IRR = discount rate A Accept this project because IRR> discount rate B Deny this project because IRR < discount rate C Deny this project because IRR> extraction rate D Accept this project because IRR = discount rate A Accept this project because IRR> discount rate B Deny this project because IRR < discount rate C Deny this project because IRR> extraction rate D Accept this project because IRR = discount Trang 31 Ph ng ́n rate A 15.71% B 17.51% C 18.62% D 16.28% DH TM _TM U STT N i dung câu h i earning after-tax income through years is VND 72; 90; 108 milion respectively The discount rate is 20% per year In case of using the IRR method to calculate, which of following statement is true? A project with the initial investment of VND 450 million has an operating period of years The 210 earning after-tax through years is VND 120; 180; 190; 160 million respectively Caculate the IRR of this project A project with the initial investment of VND 225 million has an operating period of years The 211 earning after-tax through years is VND 72; 90; 95; 80 million respectively Caculate the IRR of this project A project with the initial investment of VND 180 million has an operating period of years The 212 earning after-tax through years is VND 48; 72; 76; 55 million respectively Caculate the IRR of this project Which of the following is NOT a capital component when calculating the 213 weighted average cost of capital (WACC) for use in capital budgeting? Which of the following is 214 not an example of variable costs? 215 The debt ratio is a measure of a firm’s: The cost of equity capital is 216 all of the following EXCEPT: A 17.94% B 15.31% C 18.12% D 16.18% A 14.36% B 15.59% C 18.64% D 16.03% A Accounts payable B Long-term debt C Common stock D Preferred stock A Depreciation B Packaging C Direct labor D Freight costs A leverage B profitability C liquidity D efficiency A generally lower than the before-tax cost of debt B the minimum rate that a firm should earn on the equity-financed part of an investment C a return on the equity-financed portion of an Trang 32 STT N i dung câu h i The common stock of a company must provide a 217 higher expected return than the debt of the same company because DH TM _TM U In calculating the proportional amount of 218 equity financing employed by a firm, we should use: In calculating the costs of the individual components of a firm's financing, the 219 corporate tax rate is important to which of the following component cost formulas? 220 Ph ng ́n investment that, at worst, leaves the market price of the stock unchanged D by far the most difficult component cost to estimate A there is more systematic risk involved for the common stock B there is less demand for stock than for bonds C there is greater demand for stock than for bonds D there is a market premium required for bonds A the current market price per share of common stock times the number of shares outstanding B the common stock equity account on the firm's balance sheet C the sum of common stock and preferred stock on the balance sheet D the book value of the firm The term "capital structure" refers to: Market values are often used in computing the weighted 221 average cost of capital because Rank in ascending order (i.e., = lowest, while = highest) the likely after-tax 222 component costs of a Company's long-term financing Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend The preferred stock has a current market 223 price of $96 a share The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship A debt B common stock C preferred stock D retained earnings A long-term debt, preferred stock, and common stock equity B current assets and current liabilities C total assets minus liabilities D shareholders' equity A this is consistent with the goal of maximizing shareholder value B this is the simplest way to the calculation C this is required in the U.S by the Securities and Exchange Commission D this is a very common mistake A = bonds; = preferred stock; = common stock B = bonds; = common stock; = preferred stock C = common stock; = preferred stock; = bonds D = preferred stock; = common stock; = bonds A 10.4 percent B 6.05 percent C 6.25 percent D 5.10 percent Trang 33 Ph ng ́n A 9.533% B 10.533% C 7.533% D 11.350% A 18% B 8% C 25% D 10% DH TM _TM U STT N i dung câu h i into the future The component cost of preferred stock to Lei-Feng, Inc would be closest to If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 224 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)? The expected dividend is $2.50 for a share of stock priced at $25 What is the 225 cost of retained earnings if the long-term growth in dividends is projected to be 8%? Which of the following is 226 not considered a permanent source of financing? Assume that Basket Wonders (BW) has preferred stock outstanding with par value of $100, dividend per 227 share of $6.30, and a current market value of $70 per share The Cost of BW’s preferred stock is: Assume that Basket Wonders (BW) has a company beta of 1.35 Research by Julie Miller 228 suggests that the risk-free rate is 5% and the expected return on the market is 12% The cost of equity capital (in CAPM model) is: A company can improve (lower) its debt-to-total 229 assets ratio by doing which of the following? Which of the following 230 statements (in general) is correct? Debt-to-total assets (D/TA) 231 ratio is 0.4 What is its debtto-equity (D/E) ratio? A Commercial paper B Corporate bonds C Common stock D Preferred stock A 9.0% B 6.3% C 70% D 30% A 14.45% B 7.54% C 6.75% D 8.88% A Sell common stock B Borrow more C Shift short-term to long-term debt D Shift long-term to short-term debt A The lower the total debt-to-equity ratio, the lower the financial risk for a firm B A low receivables turnover is desirable C An increase in net profit margin with no change in sales or assets means a poor ROI D The higher the tax rate for a firm, the lower the interest coverage ratio A 0.667 B 0.2 C 0.6 Trang 34 STT N i dung câu h i Financing a long-lived asset 232 with short-term financing would be If a company issues bonus 233 shares the debt equity ratio will 236 DH TM _TM U The firm’s target capital structure should be 234 consistent with which of the following statements? and carry a 235 fixed rate of interest and are to be paid off irrespective of the firm’s revenues Which of the following is a primary market transaction? You recently sold to your brother 200 shares of Disney stock, and the transfer was 237 made through a broker, and the trade occurred on the NYSE This is an example of: 238 Ph ng ́n D 0.333 A an example of "high risk high (potential) profitability" asset financing B an example of "moderate risk moderate (potential) profitability" asset financing C an example of "low risk low (potential) profitability" asset financing D an example of the "hedging approach" to financing A Will improve B Remain unaffected C Will be affected D Unable to determine without more information A Maximize the earnings per share (EPS) B Minimize the cost of debt C Obtain the highest possible bond rating D Minimize the cost of equity Which of the following statements is CORRECT? 239 Which of the following A Debentures, Bonds B Debentures, Dividends C Dividends, Bonds D Dividends, Treasury notes A IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker B You buy 200 shares of IBM stock from your brother The trade is not made through a broker you just give him cash and he gives you the stock C One financial institution buys 200,000 shares of IBM stock from another institution An investment banker arranges the transaction D You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of IBM shares on the NYSE A A secondary market transaction B A futures market transaction C A primary market transaction D A money market transaction A Capital market instruments include both longterm debt and common stocks B An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift C The NYSE does not exist as a physical location; rather, it represents a loose collection of dealers who trade stocks electronically D If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary market transaction A As they are generally defined, money market Trang 35 STT N i dung câu h i statements is CORRECT? 241 242 243 244 245 DH TM _TM U Palo Alto Industries has a debt-to-equity ratio of 1.6 240 compared with the industry average of 1.4 This means that the company Ph ng ́n transactions involve debt securities with maturities of less than one year B The IPO market is a subset of the secondary market C If you purchased 100 shares of Disney stock from your brother-in-law, this would be an example of a primary market transaction D If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction A has greater than average financial risk when compared to other firms in its industry B will not experience any difficulty with its creditors C has less liquidity than other firms in the industry D will be viewed as having high creditworthiness The market value of debt is $425 million and the total market value of the firm is $800 million The cost of equity is 15% the pretax cost of debt is 8% and the tax rate is 20% What is the WACC? The market value of debt is $450 million and the total market value of the firm is $900 million The cost of equity is 16% the pretax cost of debt is 9% and the tax rate is 22% What is the WACC? The market value of debt is $475 million and the total market value of the firm is $1,000 million The cost of equity is 17% the pretax cost of debt is 10% and the tax rate is 24% What is the WACC? The market value of debt is $500 million and the total market value of the firm is $1,100 million The cost of equity is 18% the pretax cost of debt is 11% and the tax rate is 26% What is the WACC? The market value of debt is $525 million and the total market value of the firm is $1,200 million The cost of A 10.43% B 13.04% C 14.03% D 11.34% A 11.51% B 12.51% C 10.51% D 13.51% A 12.54% B 15.24% C 14.25% D 13.52% A 13.52% B 12.53% C 15.32% D 14.23% A 14.47% B 15.47% C 16.47% D 13.47% Trang 36 248 Ph ng ́n A Leveraged buyouts (LBOs) B Joint ventures C Conglomerate merger D Defensive tactics DH TM _TM U STT N i dung câu h i equity is 19% the pretax cost of debt is 12% and the tax rate is 28% What is the WACC? occur when a firm's managers, generally backed by private equity groups, try 246 to gain control of a publicly owned company by buying out the public shareholders using large amounts of borrowed money A _ is one in which 2, or sometimes more, independent companies 247 agree to combine resources in order to achieve a specific objective, usually limited in scope Which of the following statements is CORRECT? Which of the following 249 statements is NOT CORRECT? 250 If a petrochemical firm that A Joint venture B Leveraged buyouts (LBOs) C Conglomerate merger D Defensive tactics A In a merger with true synergies, the postmerger value exceeds the sum of the separate companies' pre-merger values B Most defensive mergers occur as a result of managers' actions to maximize shareholders’ wealth C Merger activity is likely to heat up when interest rates are high because target firms can expect to receive an especially high premium over the pre-announcement stock price D The two principal advantages of holding companies are (1) the holding company can control a great deal of assets with limited equity and (2) the dividends received by the parent from the subsidiary are not taxed if the parent holds at least 50% of the subsidiary's stock A The primary reason managers give for most mergers is to acquire more assets so as to increase sales and market share B Synergistic benefits can arise from a number of different sources, including operating economies of scale, financial economies, and increased managerial efficiency C A joint venture is one in which 2, or sometimes more, independent companies agree to combine resources in order to achieve a specific objective, usually limited in scope D Leveraged buyouts (LBOs) occur when a firm's managers, generally backed by private equity groups, try to gain control of a publicly owned company by buying out the public shareholders using large amounts of borrowed money A vertical merger Trang 37 Ph ng ́n B international mergers C horizontal merger D leveraged buyouts DH TM _TM U STT N i dung câu h i used oil as feedstock merged with an oil producer that had large oil reserves and a drilling subsidiary, this would be a Trang 38 ... Deny this project because PI C Accept this project because PI>1 D Deny this project because PI discount rate B Deny this... -121.71 million A Deny this project because PI C Accept this project because PI>1 D Deny this project because PI 1 D Deny this project because PI