10罗斯公司理财题库全集

Chapter13-Risk,CostofCapital,andCapitalBudgeting13-1Chapter13Risk,CostofCapital,andCapitalBudgetingAnswerKeyMultipleChoiceQuestions1.Theweightedaverageofthefirm'scostsofequity,preferredstock,andaftertaxdebtisthe:A.rewardtoriskratioforthefirm.B.expectedcapitalgainsyieldforthestock.C.expectedcapitalgainsyieldforthefirm.D.portfoliobetaforthefirm.E.weightedaveragecostofcapital(WACC).Difficultylevel:EasyTopic:WACCType:DEFINITIONS2.IftheCAPMisusedtoestimatethecostofequitycapital,theexpectedexcessmarketreturnisequaltothe:A.returnonthestockminustherisk-freerate.B.differencebetweenthereturnonthemarketandtherisk-freerate.C.betatimesthemarketriskpremium.D.betatimestherisk-freerate.E.marketrateofreturn.Difficultylevel:EasyTopic:CAPMType:DEFINITIONSChapter13-Risk,CostofCapital,andCapitalBudgeting13-23.Thebestfitlineofapairwiseplotofthereturnsofthesecurityagainstthemarketindexreturnsiscalledthe:A.SecurityMarketLine.B.CapitalMarketLine.C.characteristicline.D.riskline.E.Noneoftheabove.Difficultylevel:MediumTopic:CHARACTERISTICLINEType:DEFINITIONS4.Theuseofdebtiscalled:A.operatingleverage.B.productionleverage.C.financialleverage.D.totalassetturnoverrisk.E.businessrisk.Difficultylevel:MediumTopic:USEOFDEBTType:DEFINITIONS5.Theweightedaveragecostofcapitalforafirmisthe:A.discountratewhichthefirmshouldapplytoalloftheprojectsitundertakes.B.overallratewhichthefirmmustearnonitsexistingassetstomaintainthevalueofitsstock.C.ratethefirmshouldexpecttopayonitsnextbondissue.D.maximumratewhichthefirmshouldrequireonanyprojectsitundertakes.E.rateofreturnthatthefirm'spreferredstockholdersshouldexpecttoearnoverthelongterm.Difficultylevel:MediumTopic:WEIGHTEDAVERAGECOSTOFCAPITALType:DEFINITIONSChapter13-Risk,CostofCapital,andCapitalBudgeting13-36.TheWACCisusedto_______theexpectedcashflowswhenthefirmhas____________.A.discount;debtandequityinthecapitalstructureB.discount;shorttermfinancingonthebalancesheetC.increase;debtandequityinthecapitalstructureD.decrease;shorttermfinancingonthebalancesheetE.Noneoftheabove.Difficultylevel:MediumTopic:WACCType:CONCEPTS7.UsingtheCAPMtocalculatethecostofcapitalforariskyprojectassumesthat:A.usingthefirm'sbetaisthesamemeasureofriskastheproject.B.thefirmisall-equityfinanced.C.thefinancialriskisequaltobusinessrisk.D.BothAandB.E.BothAandC.Difficultylevel:MediumTopic:CAPMType:CONCEPTS8.TheuseofWACCtoselectinvestmentsisacceptablewhenthe:A.correlationofallnewprojectsareequal.B.NPVispositivewhendiscountedbytheWACC.C.riskoftheprojectsareequaltotheriskofthefirm.D.firmiswelldiversifiedandtheunsystematicriskisnegligible.E.Noneoftheabove.Difficultylevel:EasyTopic:WACCType:CONCEPTSChapter13-Risk,CostofCapital,andCapitalBudgeting13-49.Iftheriskofaninvestmentprojectisdifferentthanthefirm'sriskthen:A.youmustadjustthediscountratefortheprojectbasedonthefirm'srisk.B.youmustadjustthediscountratefortheprojectbasedontheprojectrisk.C.youmustexerciseriskaversionandusethemarketrate.D.anaveragerateacrosspriorprojectsisacceptablebecauseestimatescontainerrors.E.onemusthavetheactualdatatodetermineanydifferencesinthecalculations.Difficultylevel:EasyTopic:DISCOUNTRATEType:CONCEPTS10.IftheprojectbetaandIRRcoordinatesplotabovetheSMLtheprojectshouldbe:A.accepted.B.rejected.C.Itisimpossibletotell.D.ItwilldependontheNPV.E.Noneoftheabove.Difficultylevel:MediumTopic:SECURITYMARKETLINEType:CONCEPTS11.Thebetaofasecurityprovidesan:A.estimateofthemarketriskpremium.B.estimateoftheslopeoftheCapitalMarketLine.C.estimateoftheslopeoftheSecurityMarketLine.D.estimateofthesystematicriskofthesecurity.E.Noneoftheabove.Difficultylevel:EasyTopic:BETAType:CONCEPTSChapter13-Risk,CostofCapital,andCapitalBudgeting13-512.Regressionanalysiscanbeusedtoestimate:A.beta.B.therisk-freerate.C.standarddeviation.D.variance.E.expectedreturn.Difficultylevel:EasyTopic:BETAESTIMATIONType:CONCEPTS13.Betameasuresdependhighlyonthe:A.directionofthemarketvariance.B.overallcycleofthemarket.C.varianceofthemarketandasset,butnottheirco-movement.D.covarianceofthesecuritywiththemarketandhowtheyarecorrelated.E.Alloftheabove.Difficultylevel:MediumTopic:BETAType:CONCEPTS14.Theformulaforcalculatingbetaisgivenbythedividingthe___________ofthestockwiththemarketportfoliobythe___________ofthemarketportfolio.A.variance;covarianceB.covariance;varianceC.standarddeviation;varianceD.expectedreturn;varianceE.expectedreturn;covarianceDifficultylevel:MediumTopic:BETAType:CONCEPTSChapter13-Risk,CostofCapital,andCapitalBudgeting13-615.Theslopeofthecharacteristiclineistheestimated:A.intercept.B.beta.C.unsystematicrisk.D.marketvariance.E.marketriskpremium.Difficultylevel:MediumTopic:BETAANDCHARACTERISTICLINEType:CONCEPTS16.Companiesthathavehighlycyclicalsaleswillhavea:A.lowbetaifsalesarehighlydependentonthemarketcycle.B.highbetaifsalesarehighlydependentonthemarketcycle.C.highbetaifsalesareindependentofthemarketcycle.D.Alloftheabove.E.Noneoftheabove.Difficultylevel:MediumTopic:CYCLICALBUSINESSANDBETAType:CONCEPTS17.Betasmayvarysubstantiallyacrossanindustry.Thedecisiontousetheindustryorfirmbetatoestimatethecostofcap