Archives: Quiz
Finance Chapter 19 What range for the market value of equity
1 Corporate Finance, 4e (Berk / DeMarzo) Chapter 19 Valuation and Financial Modeling: A Case Study 19.1 Valuation Using Comparables Use the tables for the question(s) below. Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation Year 2005 […]
Finance Chapter 18 therefore the preferred method with alternative leverage
Copyright © 2017 Pearson Education, Inc. 3) The NPV of this project using the WACC method is closest to: A) $10 million B) $13 million C) $42 million D) $71 million Answer: B Explanation: B) Since this project is totally […]
Finance Chapter 18 Nielson And You Estimate Its Free Cash
Copyright © 2017 Pearson Education, Inc. 15) Given that Rose issues new debt of $50 million initially to fund the acquisition, the total value of this acquisition using the APV method is closest to: A) $100 million B) $120 million […]
Finance Chapter 18 Which of the following is NOT a step in the WACC
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 18 Capital Budgeting and Valuation with Leverage 18.1 Overview of Key Concepts 1) Which of the following is NOT one of the simplifying assumptions made for the […]
Finance Chapter 17 Rock woods True Value After The Repurchase And
Copyright © 2017 Pearson Education, Inc. 21) The NPV of Iota’s expansion project is closest to: A) -$110 million B) -$137.5 million C) $0 D) $75 million Answer: A Explanation: A) NPV = -200 + = -$110 million Diff: 2 […]
Finance Chapter 17 After Adjusting For Investor Taxes There Remains
Copyright © 2017 Pearson Education, Inc. 12) Consider the following equation: Pcum – Pex = Div × The term τd is: A) the price per share after a dividend is paid. B) the price per share before a dividend is […]
Finance Chapter 17 Omicron Paid The Special Dividend answer What You
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 17 Payout Policy 17.1 Distributions to Shareholders 1) The date on which the board authorizes the dividend is the: A) declaration date. B) distribution date. C) record […]
Finance Chapter 16 What is the expected value of Rearden’s assets if it
Copyright © 2017 Pearson Education, Inc. Use the information for the question(s) below. You own your own firm and you need to raise $50 million to fund an expansion. Following the expansion, your firm will be worth $75 million in […]
Finance Chapter 16 Unfortunately Wildcat Drilling Has 500 Million Debt coming
Copyright © 2017 Pearson Education, Inc. Use the information for the question(s) below. Big Blue Banana (BBB) is a clothing retailer with a current share price of $10.00 and with 25 million shares outstanding. Suppose that Big Blue Banana announces […]
Business Communication Chapter 11 In which of the following collaborative styles do
161 Chapter 11: Interpersonal Conflict Management Multiple Choice Questions 1. Interpersonal conflict is about __________. a) incompatible goals b) who is right and who is wrong c) getting your own way d) making the other person see that you are […]
Finance Chapter 16 The cash flows are unrelated to the state of the economy
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 16 Financial Distress, Managerial Incentives, and Information 16.1 Default and Bankruptcy in a Perfect Market 1) Which of the following statements is FALSE? A) Equity holders expect […]
Business Communication Chapter 10 Which type of friendship is characterized by loyalty
Copyright ©2017, 2014, 2011 by Pearson Education, Inc. All rights reserved. Chapter 10: Interpersonal Relationship Types and Theories Multiple Choice Questions 1. The major types of relationships are __________. a) friendship, love, family, and work b) love, family, friend, and […]
Finance Chapter 15 Assume that investors hold Google stock in retirement
Copyright © 2017 Pearson Education, Inc. 3) Assume that investors hold Google stock in retirement accounts that are free from personal taxes. If Google were to issue sufficient debt to reduce its taxes by $1 billion per year permanently, then […]
Business Communication Chapter 9 Jennifer does not have any close interpersonal relationships
Copyright ©2017, 2014, 2011 by Pearson Education, Inc. All rights reserved. Chapter 9: Interpersonal Relationships Multiple Choice Questions 1. Jennifer does not have any close interpersonal relationships. Research shows that this type of relationship isolation has an impact on her […]
Finance Chapter 15 When Securities Are Fairly Priced The Original
Copyright © 2017 Pearson Education, Inc. 22) If Flagstaff currently maintains a .5 debt to equity ratio, then Flagstaff’s after-tax WACC is closest to: A) 10.00% B) 10.25% C) 9.50% D) 8.75% Answer: B Explanation: B) rwacc = rE + […]
Business Communication Chapter 8 She would be considered what type of conversational
112 Chapter 8: Conversation Messages Multiple Choice Questions example of what stage of conversation? a) opening b) feedforward c) business d) feedback Answer: a Learning Objective: 8.1 Explain the conversation principles of process, cooperation, dialogue, turn-taking, and politeness. Topic: Five […]
Business Communication Chapter 7 Emotional communication is the central concept of
Copyright ©2017, 2014, 2011 by Pearson Education, Inc. All rights reserved. Chapter 7: Emotional Messages Multiple Choice Questions 1. Emotional communication is the central concept of __________. a) social intelligence b) emotional appreciation c) haptics d) nonverbal messages Answer: a […]
Finance Chapter 15 Wyatt Issued This Debt While Tax Rates
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 15 Debt and Taxes 15.1 The Interest Tax Deduction 1) Which of the following statements is FALSE? A) In general, the gain to investors from the tax […]
Business Communication Chapter 6 Looking away while someone nearby is having an argument
Copyright ©2017, 2014, 2011 by Pearson Education, Inc. All rights reserved. Chapter 6: Nonverbal Messages Multiple Choice Questions 1. Complementary nonverbal communication __________. a) can stand on its own b) repeats the verbal message nonverbally c) adds nuances of meaning […]
Finance Chapter 14 Sisyphean Bolder Movers Incorporated has no debt
Copyright © 2017 Pearson Education, Inc. 23) Based upon the three comparable firms, what asset beta would you recommend using for your firm’s new project? Answer: Firm Name Equity Beta Debt Beta Debt to Equity Ratio Percent Equity Percent Debt […]
Business Communication Chapter 5 Which of the following terms is the least abstract
64 Chapter 5: Verbal Messages Multiple Choice Questions 1. Which of the following terms is the least abstract? a) personnel analyst b) job c) occupation d) career Answer: a Learning Objective: 5.1 Paraphrase the principles of verbal messages. Topic: Principles […]
Finance Chapter 14 The Cost Capital Levered Equity Equal The
Copyright © 2017 Pearson Education, Inc. Use the information for the question(s) below. Consider two firms: firm Without has no debt, and firm With has debt of $10,000 on which it pays interest of 5% per year. Both companies have […]
Business Communication Chapter 4 Which of the following helps you receive messages
Copyright ©2017, 2014, 2011 by Pearson Education, Inc. All rights reserved. Chapter 4: Listening in Interpersonal Communication Multiple Choice Questions 1. Listening can be defined as __________. a) the process of receiving, understanding, remembering, evaluating, and responding to verbal and/or […]
Finance Chapter 14 You Can Undo The Effect This Decision
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 14 Capital Structure in a Perfect Market 14.1 Equity Versus Debt Financing Use the following information to answer the question(s) below. Nielson Motors (NM) has no debt. […]
Business Communication Chapter 3 Cameron asks you to share one of the four sourc
Copyright ©2017, 2014, 2011 by Pearson Education, Inc. All rights reserved. Chapter 3: Perception of Self and Others Multiple Choice Questions 1. Cameron asks you to share one of the four sources for the development of self-concept. b) your shoe […]
Finance Chapter 13 Style-Based Techniques and the Market Efficiency
Copyright © 2017 Pearson Education, Inc. 10) Portfolio “C”: A) is less risky than the market portfolio. B) has a relatively lower expected return than predicted. C) is underpriced. D) has a negative alpha. Answer: A Diff: 2 Section: 13.6 […]
Business Communication Chapter 2 Explain and give examples of the seven major ways in
Copyright ©2017, 2014, 2011 by Pearson Education, Inc. All rights reserved. Chapter 2: Culture and Interpersonal Communication Multiple Choice Questions 1. Enculturation is __________. a) the transmission of culture from one generation to another b) c) communication between persons of […]
Finance Chapter 13 When all investors correctly interpret and use their own
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 13 Investor Behavior and Capital Market Efficiency 13.1 Competition and Capital Markets Use the following information to answer the question(s) below. Assume that the CAPM is a […]
Business Communication Chapter 1 What are the two major benefits of interpersonal
Copyright ©2017, 2014, 2011 by Pearson Education, Inc. All rights reserved. Chapter 1: Foundations of Interpersonal Communication Multiple Choice Questions 1. What are the two major benefits of interpersonal communication? a) intellectual and practical b) connection and consciousness c) educational […]
Finance Chapter 12 the weighted average of the equity cost of capital
Copyright © 2017 Pearson Education, Inc. 11) Your firm is planning to invest in a new power generation system. Galt Industries is an all equity firm that specializes in this business. Suppose Galt’s equity beta is 0.75, the risk-free rate […]
Finance Chapter 12 The Bondholders Expected Loss Rate The Event
Copyright © 2017 Pearson Education, Inc. 7) Using the average historical excess returns for both Wyatt Oil and the Market portfolio, your estimate of Wyatt Oil’s Beta is closest to: A) 0.75 B) 0.84 C) 1.00 D) 1.19 21 Answer: […]
Finance Chapter 12 Because Every Security Owned Someone The Sum
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 12 Estimating the Cost of Capital 12.1 The Equity Cost of Capital Use the following information to answer the question(s) below. Beta Volatility “Eenie” 0.45 20% “Meenie” […]
Finance Chapter 11 Monsters Inc Has 24 Volatility And Correlation
Copyright © 2017 Pearson Education, Inc. 16) Assuming that Tom wants to maintain the current expected return on his portfolio, then the amount that Tom should invest in the market portfolio to minimize his volatility is closest to: A) 100% […]
Finance Chapter 11 Will adding the precious metals fund improve
Copyright © 2017 Pearson Education, Inc. 9) Will adding the precious metals fund improve your portfolio? Answer: Yes = = = -0.3 ri = rf + × (E[Rp] – rf) = .04 + (-0.3)(.14 – .04) = .01 < .10 […]
Finance Chapter 11 Calculate The Variance Portfolio That Made
Copyright © 2017 Pearson Education, Inc. 21) Calculate the variance on a portfolio that is made up of equal investments in Stock Y and Stock Z stock. 21 Answer: Year End Stock Y Realized Return Stock Z Realized Return Stock […]
Finance Chapter 11 Suppose over the next year Ball has a return of
1 Corporate Finance, 4e (Berk / DeMarzo) Chapter 11 Optimal Portfolio Choice and the Capital Asset Pricing Model 11.1 The Expected Return of a Portfolio 1) Which of the following statements is FALSE? A) Without trading, the portfolio weights will […]
Finance Chapter 10 The expected return on security with a beta of 0 is closest
Copyright © 2017 Pearson Education, Inc. 10.7 Measuring Systematic Risk Use the following information to answer the question(s) below. Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%. Security “X” goes up on […]
Finance Chapter 10 the standard deviation of the average returns
21 25) Using the data provided in the table, calculate the average annual return, the variance of the annual returns, and the standard deviation of the average returns for the market from 2000 to 2009. Answer: Rannual = = = […]
Finance Chapter 10 Which of the following investments offered the lowest
1 Corporate Finance, 4e (Berk / DeMarzo) Chapter 10 Capital Markets and the Pricing of Risk 10.1 Risk and Return: Insights from 89 Years of Investor History 1) Which of the following investments offered the lowest overall return over the […]
Finance Chapter 9 The Efficient Market Hypothesis Implies That Securities
Copyright © 2017 Pearson Education, Inc. Use the following information to answer the question(s) below. Company Ticker Price per Share Earnings per Share Book Value per Share Abbott Labs ABT 54.35 3.69 13.79 Bristol-Myers-Squibb BMY 25.45 1.93 7.33 GlaxoSmithKline GSK […]
Finance Chapter 9 Taggart’s market capitalization is closest to
Copyright © 2017 Pearson Education, Inc. 8) Which of the following statements is FALSE? A) The firm’s weighted average cost of capital (WACC) denoted rwacc is the cost of capital that reflects the risk of the overall business, which is […]
Finance Chapter 9 The Law One Price Implies That Value
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 9 Valuing Stocks 9.1 The Dividend-Discount Model 1) Which of the following is NOT a way that a firm can increase its dividend? A) By increasing its […]
Finance Chapter 8 If the Krusty Krab’s opportunity cost of capital
Copyright © 2017 Pearson Education, Inc. 11) If the Krusty Krab’s opportunity cost of capital is 12%, then the IRR for upgrading to the new grill is closest to: A) 3.25% B) 16.00% C) 18.25% D) 21.00% Answer: C Explanation: […]
Finance Chapter 8 The depreciation tax shield for the Shepard Industries
Copyright © 2017 Pearson Education, Inc. 24) The depreciation tax shield for the Shepard Industries project in year two is closest to: A) $84 B) $196 C) $72 D) $96 Answer: A Explanation: A) $280 × .30 = $84 Diff: […]
Finance Chapter 8 the correct tax rate to use is the firm’s average corporate
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 8 Fundamentals of Capital Budgeting 8.1 Forecasting Earnings 1) Which of the following statements is FALSE? A) A capital budget lists the projects and investments that a […]
Finance Chapter 7 which project should you invest in first
Copyright © 2017 Pearson Education, Inc. 7.5 Project Selection with Resource Restraints 1) Which of the following statements is FALSE? A) If there is a fixed supply of a resource available, you should rank projects by the profitability index, selecting […]
Finance Chapter 7 the IRR rule works for a stand-alone project if
Copyright © 2017 Pearson Education, Inc. 22) The internal rate of return rule can result in the wrong decision if the projects being compared have: A) differences in scale. B) differences in timing. C) differences in NPV. D) A and […]
Finance Chapter 7 Development will take Boulderado four years and cost
Copyright © 2017 Pearson Education, Inc. Corporate Finance, 4e (Berk / DeMarzo) Chapter 7 Investment Decision Rules 7.1 NPV and Stand-Alone Projects 1) Which of the following statements is FALSE? A) About 75% of firms surveyed used the NPV rule […]
Finance Chapter 6 Wyatt Oil is contemplating issuing a 20-year bond
Copyright © 2017 Pearson Education, Inc. Use the following information to answer the question(s) below. Security Term (years) Yield (%) Treasury 20 5.5% AAA Corporate 20 7.0% BBB Corporate 20 8.0% B Corporate 20 9.6% 8) The credit spread on […]
Finance Chapter 6 Because the yield to maturity for a bond is calculated
Copyright © 2017 Pearson Education, Inc. 25) Which of the four bonds is the least sensitive to a one percent increase in the YTM? A) Bond A B) Bond B C) Bond C D) Bond D Answer: A Explanation: A) […]