对外经贸大学公司理财习题及考试试题集.pdf

QUIZ 1 ITrue or False 1. Social responsibility is usually in conflict with the objective of shareholder wealth maximization. 2. A security is an instrument that represents a financial liability to the holder and a financial asset to the issuer. 3. Equity financing has a tax advantage since dividends paid out to shareholders reduce a firms taxable income. 4. A saving account at Bank A pays 6 percent interest, compounded annually. Bank Bs savings account pays 6 percent compounded semiannually. Bank B is paying twice as much interest. 5. All other things remaining the same, an annuity received at the beginning of each period has more present value than does one received at the end of each period. 6. In valuing a security, we only need to know what the future cash flows will be. 7. You can reduce systematic risk by adding more common stocks to your portfolio. 8. A call provision allows the purchaser of a security to demand repayment of the principal. 9. A bond callable at 105 means that a 5 percent call premium will be paid on the face value if the bond is ever called. 10. If you were a common shareholder with minority interests, you would prefer a majority-rule rather than a cumulative voting system. IIMultiple Choice 1. Which of the following finance activities are the responsibilities of the corporate treasurer? i. Cash management ii. Credit analysis iii. Pension fund management A. i only B. ii only C. iii only D. i and iii only E. i, ii and iii 1 4 2. Which of the following statements correctly reflects the objective of a firm? i. incr