110年 - 110東吳大學_碩士班招生考試_國際經營與貿易學系︰財務管理#100112

選擇題 (15)

1.You decide you want your child to be a millionaire. You have a son today and you deposit $10,000 in an investment account that earns 7% per year. The money in the account will be distributed to your son whenever the total reaches $1,500,000. How old will your son be when he gets the money (rounded to the nearest year)? (A)82 years (B)74 years (C)60 years (D)49 years

2. Assume that you expect to hold a $20,000 investment for one year. It is forecasted to have a year end value of $21,000 with a 30% probability； a year end value of $24,000 with a 45% probability； and a year end value of $30,000 with a 25% probability. What is the standard deviation of the holding period return for this investment? (A)12.06% (B)14.36% (C)16.36% (D)33.45%

3. A $1,000 par value 4-year bond with a 10 percent coupon rate recently sold for $965. The yield to maturity is (A)11.13%. (B)10.20%. (C)12.87%. (D)8.50%.

4. You purchased 500 shares of A.M.J. Inc. common stock one year ago for $50 per share. You received a dividend of $2 per share today and decide to take your profits by selling at $54.50 per share. What is your holding period return? (A)13.0% (B)9.0% (C)6.5% (D)4.0%.

5. Surf and Spray Inc. has a beta equal to 1.8 and a required return of 15% based on the capital asset pricing model (CAPM). If the risk-free rate of return is 4.2%, the expected return on the market portfolio is (A)21%. (B)19.2%. (C)13.4%. (D)10.2%.

6. What is Bavarian Brewhouse’s cost of preferred stock? (A)8.00%. (B)15.5%. (C)10.7%. (D)12.6%.

7.What is Bavarian Brewhouse’s cost of common equity? (A)10.67%. (B)12.55%. (C)16.23%. (D)15.48%.

8.What is Bavarian Brewhouse’s after tax cost of debt, if their marginal tax rate equals 34%? (A)8.00%. (B)5.28%. (C)6.95%. (D)2.72%.

9. What is Bavarian Brewhouse’s weighted average cost of capital (WACC)if their marginal tax rate equals 34% (A)12.08%. (B)12.99%. (C)13.44%. (D)5.28%.

10.Suppose a particular investment project will require an initial cash outlay of $1,000,000 and will generate a cash inflow of $500,000 in each of the next three years. What is the project’s internal rate of return (IRR)? Suppose a company’s discount rate is 15%, should it accept the project? (A)23%； reject the project (B)23%； accept the project (C)15%； reject the project (D)15%； accept the project

11. Backford Company just paid a dividend yesterday of $2.25 per share. The company's stock is currently selling for $60 per share, and the required rate of return on Backford Company stock is 16%. What is the growth rate expected for Backford Company dividends assuming constant growth? (A)9.47% (B)9.89% (C)10.87% (D)11.81%

12. Smith Manufacturing Inc. expects the following results in year one of a new project:

The annual change in operating cash flow is equal to(A)$298,000. (B)$202,000. (C)$160,000. (D)$250,000.

13. A new project is expected to generate $800,000 in revenues, $250,000 in cash operating expenses, and depreciation expense of $150,000 in each year of its 10-year life. The corporation's tax rate is 35%. The project will require an increase in net working capital of $85,000 in year one and a decrease in net working capital of $75,000 in year ten. What is the free cash flow from the project in year one? (A)$298,000 (B)$375,000 (C)$380,000 (D)$410,000

14. Suppose the current exchange rates are 1.3215 dollars per euro, and 84.19 yen per dollar. What is the current exchange rate between yen and euros? (A)63.707 yen per euro (B)147.571 yen per euro (C)151.696 yen per euro (D)111.257 yen per euro

15. Assume that the British pound is worth 1.6242 U.S. dollars. If a new Jaguar costs USD $138,000, what is the cost in British pounds? (A)224,140 (B)84,965 (C)71,642 (D)119,998

申論題 (9)

a. What is the project’s payback period?

b. What is the project’s net present value (NPV)?

c. What is the project’s profitability index(PI)?

d. What is the project’s internal rate of return (IRR)?

a. Determine the break points and ranges of total new financing associated with each source of capital.

b. Using the data developed in part a, determine the break points (levels of total new financing) at which the firm’s weighted average cost of capital will change.

c. Calculate the weighted average cost of capital for each range of total new financing found in part b. (hint: there are three ranges.)

d. Using the results of part c, along with the following information on the available investment opportunities draw the firm’s weighted marginal cost of capital (MC(C)schedule and investment
opportunity schedule (IOS) on the same set of axes.

e. Which, if any, of the available investment do you recommend that the firm accept? Explain your answer.

110年 - 110東吳大學_碩士班招生考試_國際經營與貿易學系︰財務管理#100112

試卷資訊

選擇題 (15)

申論題 (9)