2014accaf9财务管理第一场测验.pdfVIP

SECTION A (30 ×2 = 60 marks) 1. The main objective of financial management is to A) ize the value of the firm. B) minimize the value of all outstanding liabilities. C) behave in a socially responsible manner. D) Both A and B are true s e minimizing outstanding liabilities izes firm value. 2. Kiley is considering opening a restaurant and is trying to identify the appropriate cash flows to use in evaluating this project. Which of the following should not be luded? A) Kiley’s dislike of having to work weekends B) the lease expense for the building that would house her restaurant C) the cost of a liability insurance to protect her should a customer sue the business D) All of the above should be luded when determining the cash flows associated with the project. 3. Which of the following objects would be the most difficult to value? A) A dark green 2005 Toyota RAV4 rated in good condition. B) An envelope containing a certain a certain number of foreign currency. C) The Chrysler Building in New York. D) The famous painting “Mona Lisa”. 4. Which of the following is not a necessary condition of a perfect market? A) No risk or uncertainty B) Equal interest rate per period C) No inflation D) All of the above 5. An investment costs $92, pays a dividend of $5 at of the period, and then is worth $110. What’s its dividend yield? A) 14.7% B) 5.4% C) 4.0% D) -5.0% 6. One hundred basis points equal A) $1 . B) 1% C) 10% D) 100% 7. If interest is paid only at of year, how long will it take for a $1,000 investment to grow to $3,000 if the effective interest rate per year is 8%? A) 12 years B) 1