Quiz Detail

Q1 . P/E ratio?

A P/E ratio = Share Price/EPS

B P/E ratio = Profit/Number of Shares Outstanding

Q2 . Share Price ?

A Equty = Share Price * Shares Outstanding

B SP = Equty / Shares Outstanding

Q3 . Which of the following statements is false?

A The relationship between the investment term and the interest rate is called the term structure of interest rates.

B Real interest rates indicate the rate at which your money will grow if invested for a certain period.

C The yield curve is a potential leading indicator of future economic grow.

Q4 . Which of the followig statements is false?

A The interest rates that banks offer on investments or charge on loans depends on the horizon of the investment or loan.

B The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate.

C Fundamentally, interest rates are determined by the Federal Reserve.

Q5 . Which of the following statements is false?

A Equity holders expect to receive dividends and the firm is legally obligated to pay them.

B A firm that fails to make the required interest or principal payment on the debt is in default.

C In the extreme case, the debt holders take legal ownership of firm`s assets through a process called bankruptcy.

D After a firm defaults, debt holders are given certain rights to the assets of the firm.

Q6 . Which of the following statements is regarding annuities is false?

B The difference between an annuity and perpetuity is that a perpetuity ends after some fixed number of payments.

C An annuity is a stream of N equal cash flows paid at regular intervals.

D Most car loans, mortgages, and some bonds are annuities.

Q7 . A voluntary reorganization of debts whereby a firm`s debt obligations are still expected to be paid in full but at a later than originally scheduled date, is called?

A A composition.

B An extention.

C Creditor control

D None of the above

Q8 . Which of the following statements is false?

A Most companies that pay dividends pay them semiannually.

B From an accounting perspective, dividends generally reduce the firm`s current (or accumulated) retained earnings.

C The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy.

D Occasionally, a firm may pay a one-time, special dividend that is usually much large than a regular dividend.

Q9 . The date on which the board authorizes the dividend is the:

A Declaration date.

B Distribution date.

C Record date.

D Ex-dividend date.

Q10 . Which of the following statements is false?

A Fundamentally, interest rates are determined by the Federal Reserve.

B The interest rates that are quoted by banks and other financial institutions are nominal interest rates.

C The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate.

D The interest rates that banks offer on investment or charge on loans depends on the horizon of the investment or loan.

Q11 . Which of the following statements is false?

A The relationship between the investment term and the interest rate is called the term structure of the interest rate.

B Real interest rates indicate the rate at which your money will grow if invested for a certain period.

C The yiesd curve is a potential leading indicator of future economic grow.

D The shape of the yield curve will be strongly influenced by interest rate expectations.

Q12 . A(n)_________is the most common way that firms repurchase shares.

A Target repurchase

B Dutch auction share repurchse.

C Tender offer.

D Open market share repurchases.

Q13 . Which of the following statements regarding perpetuities is false?

A To find the value of a perpetuity one cash flow at a time would take forever.

B A perpetuity is a stream of equal cash flows that occur at regular intervals and last forever.

C PV of a perpetuity = r/C

D One example of a perpetuity is the British goverment bond called a consol.

Q14 . Anyone who purchases the stock on or after the______ date will not receive the devidend.

A Distribution.

B Ex-dividend.

C Record.

D Declaration.

Q15 . Which of the following statements is false?

A As firms mature, their earnings exeed their investment needs they begin to pay dividends.

B Total return = earnings * by the divident payout rate.

C Cutting the firm`s dividend to increase investment will raise the stock price if, and only if, the new investment have a positive NPV.

D We cannot use the constant dividend growth model to value the stock of a firm with rapid or changing growth.

Q16 . One of methods to repurchase shares is the__________, in which the firm lists different prices at which it is prepared to buy shares, and shareholders in turn indicate how many shares they are willing to sell at each price.

A Dutch auction share repurchase.

B Tender offer.

C Targeted repurchase.

D Open market share repurchases.

Q17 . Which of the following statements is false?

A An important consequence of leverage is the risk of bankruptcy.

B Whether default occurs depends on the cash flow, not on the relative value of the firm`s assets and liabilities.

C Economic distress is a significant decline in the value of a firm`s assets, whether or not it experiences financial distress due to leverage.

D Modigliani and Miller`s results continue to hold in a perfect market even when debt is risky and the firm may default.

Q18 . A firm can repurchase shares through a(n)______ in which it offers to buy shares at a prespecified price during a short time period, generally within 20 days.

A Tender offer.

B Open market share repurchases.

C Target repurchase.

D Dutch auction share repurchase.

Q19 . The firm will pay the divident to all shareholders who are registered owners on a specific dare, set by the board, called the:

A Record date.

B Declaration date.

C Distribution date.

D Ex-dividend date.

Q20 . P/E ratio?

A P/E ratio = Share Price/EPS

B P/E ratio = Profit/Number of Shares Outstanding

Q21 . Share Price ?

A Equty = Share Price * Shares Outstanding

B SP = Equty / Shares Outstanding

Q22 . Which of the following statements is false?

A The relationship between the investment term and the interest rate is called the term structure of interest rates.

B Real interest rates indicate the rate at which your money will grow if invested for a certain period.

C The yield curve is a potential leading indicator of future economic grow.

Q23 . Which of the followig statements is false?

A The interest rates that banks offer on investments or charge on loans depends on the horizon of the investment or loan.

B The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate.

C Fundamentally, interest rates are determined by the Federal Reserve.

Q24 . Which of the following statements is false?

A Equity holders expect to receive dividends and the firm is legally obligated to pay them.

B A firm that fails to make the required interest or principal payment on the debt is in default.

C In the extreme case, the debt holders take legal ownership of firm`s assets through a process called bankruptcy.

D After a firm defaults, debt holders are given certain rights to the assets of the firm.

Q25 . Which of the following statements is regarding annuities is false?

B The difference between an annuity and perpetuity is that a perpetuity ends after some fixed number of payments.

C An annuity is a stream of N equal cash flows paid at regular intervals.

D Most car loans, mortgages, and some bonds are annuities.

Q26 . A voluntary reorganization of debts whereby a firm`s debt obligations are still expected to be paid in full but at a later than originally scheduled date, is called?

A A composition.

B An extention.

C Creditor control

D None of the above

Q27 . Which of the following statements is false?

A Most companies that pay dividends pay them semiannually.

B From an accounting perspective, dividends generally reduce the firm`s current (or accumulated) retained earnings.

C The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy.

D Occasionally, a firm may pay a one-time, special dividend that is usually much large than a regular dividend.

Q28 . The date on which the board authorizes the dividend is the:

A Declaration date.

B Distribution date.

C Record date.

D Ex-dividend date.

Q29 . Which of the following statements is false?

A Fundamentally, interest rates are determined by the Federal Reserve.

B The interest rates that are quoted by banks and other financial institutions are nominal interest rates.

C The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate.

D The interest rates that banks offer on investment or charge on loans depends on the horizon of the investment or loan.

Q30 . Which of the following statements is false?

A The relationship between the investment term and the interest rate is called the term structure of the interest rate.

B Real interest rates indicate the rate at which your money will grow if invested for a certain period.

C The yiesd curve is a potential leading indicator of future economic grow.

D The shape of the yield curve will be strongly influenced by interest rate expectations.

Q31 . A(n)_________is the most common way that firms repurchase shares.

A Target repurchase

B Dutch auction share repurchse.

C Tender offer.

D Open market share repurchases.

Q32 . Which of the following statements regarding perpetuities is false?

A To find the value of a perpetuity one cash flow at a time would take forever.

B A perpetuity is a stream of equal cash flows that occur at regular intervals and last forever.

C PV of a perpetuity = r/C

D One example of a perpetuity is the British goverment bond called a consol.

Q33 . Anyone who purchases the stock on or after the______ date will not receive the devidend.

A Distribution.

B Ex-dividend.

C Record.

D Declaration.

Q34 . Which of the following statements is false?

A As firms mature, their earnings exeed their investment needs they begin to pay dividends.

B Total return = earnings * by the divident payout rate.

C Cutting the firm`s dividend to increase investment will raise the stock price if, and only if, the new investment have a positive NPV.

D We cannot use the constant dividend growth model to value the stock of a firm with rapid or changing growth.

Q35 . One of methods to repurchase shares is the__________, in which the firm lists different prices at which it is prepared to buy shares, and shareholders in turn indicate how many shares they are willing to sell at each price.

A Dutch auction share repurchase.

B Tender offer.

C Targeted repurchase.

D Open market share repurchases.

Q36 . Which of the following statements is false?

A An important consequence of leverage is the risk of bankruptcy.

B Whether default occurs depends on the cash flow, not on the relative value of the firm`s assets and liabilities.

C Economic distress is a significant decline in the value of a firm`s assets, whether or not it experiences financial distress due to leverage.

D Modigliani and Miller`s results continue to hold in a perfect market even when debt is risky and the firm may default.

Q37 . A firm can repurchase shares through a(n)______ in which it offers to buy shares at a prespecified price during a short time period, generally within 20 days.

A Tender offer.

B Open market share repurchases.

C Target repurchase.

D Dutch auction share repurchase.

Q38 . The firm will pay the divident to all shareholders who are registered owners on a specific dare, set by the board, called the:

A Record date.

B Declaration date.

C Distribution date.

D Ex-dividend date.

Advanced Corporate Finance

Q1 . P/E ratio?

Q2 . Share Price ?

Q3 . Which of the following statements is false?

Q4 . Which of the followig statements is false?

Q5 . Which of the following statements is false?

Q6 . Which of the following statements is regarding annuities is false?

Q7 . A voluntary reorganization of debts whereby a firm`s debt obligations are still expected to be paid in full but at a later than originally scheduled date, is called?

Q8 . Which of the following statements is false?

Q9 . The date on which the board authorizes the dividend is the:

Q10 . Which of the following statements is false?

Q11 . Which of the following statements is false?

Q12 . A(n)_________is the most common way that firms repurchase shares.

Q13 . Which of the following statements regarding perpetuities is false?

Q14 . Anyone who purchases the stock on or after the______ date will not receive the devidend.

Q15 . Which of the following statements is false?

Q16 . One of methods to repurchase shares is the__________, in which the firm lists different prices at which it is prepared to buy shares, and shareholders in turn indicate how many shares they are willing to sell at each price.

Q17 . Which of the following statements is false?

Q18 . A firm can repurchase shares through a(n)______ in which it offers to buy shares at a prespecified price during a short time period, generally within 20 days.

Q19 . The firm will pay the divident to all shareholders who are registered owners on a specific dare, set by the board, called the:

Q20 . P/E ratio?

Q21 . Share Price ?

Q22 . Which of the following statements is false?

Q23 . Which of the followig statements is false?

Q24 . Which of the following statements is false?

Q25 . Which of the following statements is regarding annuities is false?

Q26 . A voluntary reorganization of debts whereby a firm`s debt obligations are still expected to be paid in full but at a later than originally scheduled date, is called?

Q27 . Which of the following statements is false?

Q28 . The date on which the board authorizes the dividend is the:

Q29 . Which of the following statements is false?

Q30 . Which of the following statements is false?

Q31 . A(n)_________is the most common way that firms repurchase shares.

Q32 . Which of the following statements regarding perpetuities is false?

Q33 . Anyone who purchases the stock on or after the______ date will not receive the devidend.

Q34 . Which of the following statements is false?

Q35 . One of methods to repurchase shares is the__________, in which the firm lists different prices at which it is prepared to buy shares, and shareholders in turn indicate how many shares they are willing to sell at each price.

Q36 . Which of the following statements is false?

Q37 . A firm can repurchase shares through a(n)______ in which it offers to buy shares at a prespecified price during a short time period, generally within 20 days.

Q38 . The firm will pay the divident to all shareholders who are registered owners on a specific dare, set by the board, called the: