HQC VIEN NGAN HANGHE THI KET THUC HQC PHAN

KHOA TAI CHINHTAl CHINH DOANH NGHIEP I - FIN42A

hETHISQ: 03
Thfti gian lam bai:

Ap dung cho khoa/ hft/ lap:

Cathi:i... Ngay thi:^tM-l^— ......^< Ngay duyftt de: .
Dgi diftn Phong TTKT:^Ffak/^,Ngufti duyftt dl: .

I. Trfic nghiem - Chon dap an dung (3d)

Cfiul:
Today, you sold 300 shares of LGJ stock and realized a total return of 13.2 percent. You
purchased the shares one year ago at a price of $40.16 a share. You have received a total of
$300 in dividends. What is your capital gains yield on this investment?
A.10.17%
B.10.99%
C.10.79%
D.10.71%
E.None of above
Cfiu 2:
The variance of returns is computed by dividing the sum of the:
A.squared deviations by the number of returns minus one.
B.average returns by the number of returns minus one.
C.average returns by the number of returns plus one.
D.squared deviations by the average rate of return.
E.squared deviations by the number of returns plus one.
Cfiu 3:
A growing perpetuity is currently valued $7,225.81. The next annuity payment will be $486
and the discount rate is 9.5 percent. What is the annuity's rate of growth?
A.2.74%
B.3.10%
C.2.77%
D.2.50%
E.None of the above
Cfiu 4:
Which one of these is a correct definition?
A.Net working capital equals current assets plus current liabilities.
B.Current liabilities are debts that must be repaid in 18 months or less.
C.Current assets are assets with short lives, such as inventory.
D.Long-term debt is defined as a residual claim on a firm's assets.
E.Tangible assets are fixed assets such as patents.
Cfiu 5:
Depreciation for a profitable firm:
A.decreases net income by less than $1 for every $1 of depreciation expense.
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.
Cfiu 6:
SYNK Water Mining added $511 to retained earnings last year on sales of $28,646. The
administrative expenses were $5370, depreciation was $912, dividends paid were $385,
and the interest expense was $110. What was the cost of goods sold if the firm's tax rate
was 35 percent?
A.$20,678.5
B.$20,785.5
C.$20,875.5
D.$20,755.5
E.None of the above
Cfiu 7:
Cash flow to stockholders is defined as:
A.cash dividends paid.
B.repurchases of equity less new equity sold minus cash dividends paid.
C.cash flow from financing less cash flow to creditors.
D.cash dividends paid plus repurchases of equity minus new equity financing.
E.cash flow from assets plus cash flow to creditors.
Cfiu 8:
The return pattern on your favorite stock has been 6.42 percent, 7.26 percent, -13.14
percent, and 15.26 percent over the last four years. What are the average arithmetic and
geometric rates of return?
A.3.59%; 3.43%
B.3.95%; 3.39%
C.3.66%; 3.64%
D.3.95%; 3.46%
E.None of the above
CfiU 9:
Johnson's has a 6-year, 9 percent annual coupon bond with a $1,000 par value. Jason's has
a 12-year, 9 percent annual coupon bond with a $1,000 par value. Both bonds currently
have a yield to maturity of 9 percent. Which one of the following statements is correct if
the market rate decreases to 8 percent?
A.Both bonds will decrease in value by 4.62 percent.
B.Johnson's bond will increase in value by $75.36.
C.Jason's bond will increase in value by 4.62 percent.
D.Johnson's bond will increase in value by $46.23
E.Jason's bond will increase in value by 46.23 percent.
Cfiu 10:
Given the tax rates as shown, what is the average tax rate for a firm with taxable income of
$325,000?
Tax Rate
Taxable Income
(%)
$0-50,000 15
50,001 -75,000 25
75,001 -100,000 34
100,001 -335,000 39

A. 33.19%
B.33.95%
C.33.85%
D.33.72%
E.None of the above

II.Tra lfti dung/sai - Giai thich ngfin gon (Id)

Cfiu 11:
Like Internal rate of return method, profitability index method ignores differences of scale for
mutually exclusive projects.

Cfiu 12:
A positive cash flow to stockholders indicates a firm received more from selling stock than it
paid out to shareholders.

III.Bai tap ty luan (6d)

Cfiu 13:
The newspaper reported last week that Bennington Enterprises earned $28 million this year. The
report also stated that the firm's return on equity is 16.5 percent. Bennington retains 80 percent of
its earnings. What is the firm's earnings growth rate? What will next year's earnings be?

Cfiu 14:
You need a 30-year, fixed-rate mortgage to buy a new home for $250,000. Your mortgage bank
will lend you the money at an APR of 4.5 percent for this 360-month loan. However, you can only
afford monthly payments of $940, so you offer to pay off any remaining loan balance at the end
of the loan in the form of a single balloon payment. How large will this balloon payment have to
be for you to keep your monthly payments at $940?

Cfiu 15:
Based on the following information, calculate the expected return and standard deviation of each
of the following stocks. Assume each state of the economy is equally likely to happen. What are
the co variance and correlation between the returns of the two stocks?
State of Economy Return on stock A Return on stock B
Bear 0.103 -0.067
Normal 0.130 0.113
Bull 0.071 0.276

(^^jDt SU cfolQ
o