兹维博迪金融学第二版试题库4TB(1)

4-1ChapterFourAllocatingResourcesOverTimeThischaptercontains46multiple-choicequestions,18shortproblemsand9longerproblems.MultipleChoice1.________istheprocessofgoingfrompresentvaluetofuturevalue,whereas________isfindingthepresentvalueofsomefutureamount.(a)Discounting;compounding(b)Compounding;annualizing(c)Compounding;discounting(d)Discounting;leasingAnswer:(c)2.________referstotheinterestrateatwhichmoneyreceivedbeforetheendoftheplanninghorizoncanbereinvested.(a)Internalrate(b)Reinvestmentrate(c)Costofequity(d)CompoundinterestAnswer:(b)3.Thedifferencebetweenanimmediateannuityandanordinaryannuityis________.(a)thenumberofperiods(b)theamountofthepayments(c)theinterestrate(d)thetimingofthepaymentsAnswer:(d)4-24.ThepreferredstockofTavistockRealtyoffersacashdividendof$2.28peryearanditissellingatapriceof$110pershare.WhatistheyieldofTavistockRealtypreferredstock?(a)2.07%(b)2.12%(c)2.28%(d)48.25%Answer:(a)5.Considerthesituationwhereyouhavewona$10millionlotterytobereceivedin25annualequalpaymentsof$400,000.Whatwillhappentothepresentvalueofthesewinningsiftheinterestrateincreasesduringthenext25years?(a)itwillnotchange(b)itwillbeworthmore(c)itwillbeworthless(d)itcannotbedeterminedAnswer:(c)6.WhatistheeffectiveannualrateonabankaccountthathasAPRof8percentwithinterestcompoundedquarterly?(a)6.12%(b)8.24%(c)8.48%(d)17.17%Answer:(b)7.YoutakeoutaloanwithanAPRof10%withmonthlycompounding.Whatistheeffectiveannualrateonyourloan?(a)23.87%(b)21.6%(c)19.56%(d)18%Answer:(a)4-38.TheCFOofCyberHelpInc.has$250,000incashtodaythathewantstoinvest.Howmuchwillthisinvestmentbeworthinfouryearsifthecurrentinterestrateis8%?(a)$270,000(b)$330,000(c)$340,125(d)$342,150Answer:(c)9.Ifyoupurchasea$12,000certificateofdeposittodaywithanAPRof14%,withquarterlycompounding,whatwilltheCDbeworthwhenitmaturesin5years?(a)$20,846.99(b)$20,865.60(c)$23,104.97(d)$23,877.47Answer:(d)10.TheCFOofCyberChainInc.planstounleashamediacampaignthatisexpectedtocost$15millionfouryearsfromtoday.Howmuchcashshouldshesetasidetopayforthisifthecurrentinterestrateis13%?(a)$9.2million(b)$13.3million(c)$14.4million(d)$16.9millionAnswer:(a)11.TheNPVisameasureofhowmuchyour________wealthchangesasaresultofyourchoiceandiftheNPVis________itdoesnotpaytoundertakethatchoice.(a)future;negative(b)current;negative(c)current;positive(d)future;positiveAnswer:(b)4-412.The________istheratethatonecanearnsomewhereelseifonedidnotinvestintheprojectunderevaluation.(a)opportunitycostofcapital(b)costofdebt(c)costofequity(d)weightedaveragecostofcapitalAnswer:(a)13.Youaretryingtodecidewhetherornottobuyabondfor$990thatwillmakeonepaymentfor$1,050fouryearsfromtoday.Whatistheinternalrateofreturnonthebond’scashflows?(a)1.06%(b)1.48%(c)10.6%(d)14.8%Answer:(b)14.CalculatetheNPVofthefollowingcashflows:youinvest$3,000todayandreceive$300oneyearfromnow,$700twoyearsfromnow,and$1,100startingfouryearsfromnow.Assumethattheinterestrateis7%.(a)–$1,962.62(b)–$1,269.04(c)$1,269.04(d)$1,962.62Answer:(b)15.Aftereachpaymentofanamortizedloan,theoutstandingbalanceisreducedbytheamountofprincipalrepaid.Therefore,theportionofthepaymentthatgoestowardthepaymentofinterestis________thanthepreviousperiod’sinterestpaymentandtheportiongoingtowardrepaymentofprincipalis________thanthepreviousperiod’s.(a)greater;lower(b)lower;lower(c)greater;greater(d)lower;greaterAnswer:(d)4-516.Thepresentvalueofafutureamountcanbecalculatedwiththeequation________.(a)PV=FV(1+i)n(b)PV=FV(1+i)(n)(c)PV=FV/(1+i)n[NOTE:thisshouldbeformattedasastackedfraction](d)PV=FV/(1+i)(n)[NOTE:thisshouldbeformattedasastackedfraction]Answer:(c)17.Tocomputethefuturevalueofapresentamountusethecompoundamountfactordefinedas________.(a)FV=PV(1+i)n(b)FV=PV(1+i)(n)(c)FV=PV/(1+i)n[NOTE:thisshouldbeformattedasastackedfraction](d)FV=PV/(1+i)(n)[NOTE:thisshouldbeformattedasastackedfraction]Answer:(a)18.TheearningsofBGBComputershavegrownfrom$3.20to$6.90in6years.Determinetheannualcompoundrate.(a)1.14%(b)13.7%(c)15.6%(d)115.6%Answer:(b)19.Infiveyearsyouintendtogotograduateschool.Foreachofyourfouryearsingraduateschool,youneedtohaveafundthatwillprovide$25,000peryearatthebeginningofeachyear.Iftheinterestrateis9%throughout,howmuchmustyouputinthefundtoday?(a)$64,996(b)$57,379(c)$50,184(d)$16,249Answer:(b)4-620.AspartofyournewjobatCyberInc.thecompanyisprovidingyouwithanewJeep.Yourfirmwillleasethis$34,000Jeepforyou.Thetermsoftheleasearesevenannualpaymentsataninterestrateof10%,whichwillfullyamortizethecostofthecar.Whatistheannualleasepayment?(a)$6,984.39(b)$5,342.86(c)$4,857.14(d)$3,584.00Answer:(a)21.AruleofthumbwithusingtheinternalrateofreturnistoinvestinaprojectiftheIRRis________theopportunitycostofcapital.(a)greaterthan(b)lessthan(c)lessthanorequalto(d)one-halfofAnswer:(a)22.Whenconsideringthetimeframeofaninvestment,arulefollowedbysomeistochoosetheinvestmentwith______paybackperiod.(a)thelongest(b)theshortest(c)no(d)aninfiniteAnswer:(b)23.Amajorproblemwithusingtheinternalrateofreturnruleis________.(a)theremaybemultiplecashoutflowsandmultiplecashinflows(b)theinternalrateofreturnmaynotexist(c)theinternal