财务管理试题 XMU orporate Finance 1st quiz.docVIP

SCHOOL OF MANAGEMENT, XIAMEN UNIVERSITY THIRD YEAR EXAMINATION 2013 _____________________________________________________________________ Corporate Finance _____________________________________________________________________ Quiz 1 Time allowed: 1.5 hours The paper consists of a total of FORTY questions in Section A, and TWO questions in Section B. CHOOSE THIRTY-FIVE QUESTIONS FROM SECTION A QUESTIONS IN SECTION B ARE COMPULAROY Candidates are permitted to bring into the examination room calculators (hand held, containing no textual information) Please do not leave your seat unless you are given permission by an invigilator.Do not communicate in any way with any other candidate in the examination room.Do not open the question paper until told to do so.All answers must be written in the answer book(s) provided.All rough work must be written in the answer sheet provided.? A line should be drawn through any rough work to indicate to the examiner that it is not part of the work to be marked. At the end of the examination, remain seated until your answer book(s) have been collected and you have been told you may leave. SECTION A (35? = 70 marks) 1. lWhich of the following statements about the law of one price is true? A) It is a useful tool in determining the absolute value of an asset. B) Empirical evidence suggests that it will provide the true value of an asset, except in those rare cases in which no comparable asset exists. C) Although it rarely will provide an exact value for an asset, it will often provide a close approximation. D) It is most useful in assessing the true value of identical assets that are trading in more than one country. 2. The value of a firm is equal to A) the market value of its outstanding stock. B) the market value of its outstanding stock plus the market value of its outstanding bonds. C) the value of all its projects’ net cash flows. D) the value of all its projects’ cash inflows. 3. Which of the following statements is true