中山大学财务管理末试卷(英语)2.docVIP

FINANCIAL MANAGEMENT EXAMINATION(2) Time: 2 Hours Marks: A. Define and briefly explain each of the following terms (10 points) 1. Free Cash Flow 2. Market Risk 3. Internal Rate of Raturn 4. CAPM 5. Breakeven Analysis B. Multiple Choice Questions(40 points) 1.Businesses can be organized as A) sole proprietorships B) partnerships C) corporations D) any of the above 2.Limited liability is an important feature of: A) Sole proprietorships B) Partnerships C) Corporations D) All of the above 3.In finance, shortterm means A) less than three months B) less than six months C) less than one year D) less than five years 4.Conflicts of interest between shareholders and managers of a firm result in: A) Principalagent problem B) Increased agency costs C) Both A and B D) None of the above 5.The financial goal of a corporation is to: A) Maximize sales B) Maximize profits C) Maximize the value of the firm for the shareholders D) Maximize managers benefits 6.If the present value of $480 expected to be received one year from today is $400,what is the discount rate? A) 10% B) 20% C) 30% D) None of the above 7.If the present value of a cash flow generated by an initial investment of $100,000 is$120,000, what is the NPV of the project? A) $120,000 B) $20,000 C) $100,000 D) None of the above 8.There are two reasons for discounting future cash flow. They are: A) A dollar today is worth more than a dollar tomorrow (for positive interest rates) B) A safe dollar is worth more than a risky one C) The value of a dollar is changing all the time D) A and B above 9.The financial goal of a corporation is to: A) Minimize stockholder wealth B) Maximize profit C) Maximize value of the corporation to the stockholders D) None of the above 10.The variance or standard deviation is a measure of: A) Total risk B) Unique risk C) Market risk D) None of the above 11.If the present value of the cash flow X is $200, and the present value cash flow Y $150, than the present value of the combined cash flow is: A