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1、2022年金融英语考试考前冲刺卷（8）本卷共分为1大题50小题，作答时间为180分钟，总分100分，60分及格。一、单项选择题（共50题，每题2分。每题的备选项中，只有一个最符合题意） 1.Which of the following statements does not accurately describe an open-end fund（）A. The open-end investment company continues to sell and repurchase shares after the initial public offering.B. Open-end inv
2、estment companies are prepared to buy or sell additional shares of the fund at NAV.C. Open-end investment companies redeem the shares without either sales charges or redemption fees.2.A firm is considering a $5000 project that will generate an annual cash flow of $1000 for the next 8 years. The firm
3、 has the following financial data: Debt/equity ratio is 50 percent. Cost of equity capital is 15 percent. Cost of new debt is 9 percent. Tax rate is 33 percent. The projects net present value (NPV) is:（）A. + $33, so accept the project.B. - $4968, so don’t accept the project.C. - $33, so don&rs
4、quo;t accept the project.3.Jane Epworth, CFA, is preparing pro forma financial statements for Gavin Industries, a mature U.S. manufacturing firm with three distinct geographic divisions in the Midwest, South and West. Epworth prepares estimates of sales for each of Gavins divisions using economists
5、estimates of next-period GDP growth and sums the three estimates to forecast Gavins sales. Epworths approach to estimating Gavins sales is:（）A. inappropriate, because sales should be forecast on a firm-wide basis.B. inappropriate, because sales are unlikely to be related to GDP growth.C. appropriate
6、.4.There are a lot of issues to consider in determining board independence. What would be the best definition of true independence（）A. Independence, as it relates to board members, refers to avoidance of material conflicts of interest.B. Independence, as it relates to board members, refers to the de
7、gree to which these persons are not biased or otherwise controlled by firm management or the outside audit group.C. Independence, as it relates to board members, refers to the degree to which these persons are not biased or otherwise controlled by firm management or other groups which may have some
8、degree of control over management.5.When using net present value (NPV) profiles:（）A. the NPV profile’s intersection with the horizontal x-axis identifies the amount of profit the project will make.B. the NPV profile’s intersection with the vertical y-axis identifies the project’s i
9、nternal rate of return.C. one should accept all independent projects with positive NPVs.6.Cullen Casket Company is considering a project that requires a $175000 cash outlay and is expected to produce cash flows of $65000 per year for the next four years. Cullens tax rate is 40 percent and the before
10、-tax cost of debt is 9 percent. The current share price for Cullen stock is $32 per share and the expected dividend next year is $1.50 per share. Cullens expected growth rate is 5 percent. Cullen finances the project with 70 percent newly issued equity and 30 percent debt, and the flotation costs fo
11、r equity are 4.5 percent. What is the dollar amount of the flotation costs attributable to the project, and that is the NPV for the project, assuming that flotation costs are accounted for correctly Dollar amount of floatation costs NPV of project（）A. $5513 $30510 B. $5513 $32872 C. $7875 $32872A. B
12、. C. 7.A company has the following capital structure: Target weightings: 30% debt, 20% preferred stock, 50% common equity. Tax Rate: 35%. The firm can issue $1000 face value, 7.00% semi-annual coupon debt with a 15-year maturity for a price of $1047.46. An 8.0% dividend preferred stock issue has a v
13、alue of $35 per share. The companys growth rate is estimated at 6.0%. The companys common shares have a value of $40 and a dividend in year 0 of DO = $3.00. The companys weighted average cost of capital is closest to:（）A. 9.84%.B. 9.28%.C. 9.21%.8.A company is considering the purchase of a copier th
14、at costs $5000. Assume a cost of capital of 10 percent and the following cash flow schedule: Year 1: $3000 Year 2: $2000 Year 3: $2000 Determine the projects NPV and IRR. NPV IRR()A. $883 15% B. $243 20% C. $883 20%A. B. C. 9.An analyst computes the following ratios for Iridescent Carpeting Inc. and
15、 compares the results to the industry averages:Based on the above data, which of the following can the analyst conclude()A. Iridescent Carpeting has better short-term liquidity than its competitors.B. Iridescent Carpeting has stronger profitability than its competitors.C. Iridescent Carpeting has mo
16、re financial risk than its competitors.10.If the calculated net present value (NPV) is negative, which of the following must be TRUE The discount rate used is:（）A. equal to the internal rate of return (IRR).B. greater than the internal rate of return (IRR).C. less than the internal rate of return (I
17、RR).11.Which one of the following statements about the marginal cost of capital (MCC) is TRUE()A. The MCC is the cost of the last dollar obtained from bondholders.B. The MCC is the cost of the last dollar obtained from shareholders.C. The breakpoint on the marginal cost curve is calculated by dividi
18、ng retained earnings by the equity weight in the capital structure.12.Which of the following activities would least likely be an example of good corporate governance（）A. Management is allowed to act independently of board of directors.B. The board of directors has decided to hold annual elections.C.
19、 The board of directors has decided to conduct a self-assessment.13.Velma and Daphne Productions is estimating the weighted average cost of capital (WACC). They have several pieces of data to consider. The firm pays 60 percent of its earnings out in dividends. The return on equity (ROE) is 16 percen
20、t. Last years earnings were $4.00 per share and the dividend was just paid to shareholders. The current price of shares is $35.00. If the firm must issue new shares of common stock, they must pay a flotation cost to the investment bankers of 6 percent. The firms optimal capital structure includes 10
21、 percent preferred stock, 40 percent debt and 50 percent equity. They can sell additional bonds at a rate of 9 percent. The cost of issuing new preferred stock is 13 percent. The firms marginal tax rate is 40 percent. The cost of issuing retained earnings and new common shares is closest to : Cost o
22、f retained earnings Cost of new common stock()A. 13.3% 13.7% B. 13.7% 14.2% C. 13.3% 14.2%A. B. C. 14.Which of the following might be an undesirable trait of a member of the board of directors（）A. Experience with the technologies, products, and services the firm offers.B. Positive public statements
23、regarding an individual’s ethical viewpoints.C. Service on the board for more than 10 years.15.Randox Industries has the following investment policy statement: In order to achieve the safety and liquidity necessary in the investment of excess cash balances, the CFO or his designee may invest e
24、xcess cash balances in 30 - day U. S. Treasury bills, or in bankers acceptances with maturities of less than 31 days or 30 - day certificates of deposit, where the credit rating of the issuing bank is A + or higher. This policy statement is.（）A. appropriate because these are all safe, liquid securit
25、ies.B. inappropriate because it is too restrictive.C. inappropriate because both banker’s acceptances and certificates of deposit are illiquid.16.Which of the following characteristics is least likely required to ensure that a companys Board of Directors Audit Committee is adequately represent
26、ing shareowner interests（）A. Any conflicts between the external auditor and the firm are resolved in a manner that favors shareholders.B. The shareholders vote on whether to approve of the board’s selection of the external auditor.C. The committee regularly reviews the performance, independenc
27、e, skills, and experience of existing board members.17.Which of the following steps is least likely to be an administrative step in the capital budgeting process（）A. Arranging financing for capital projects.B. Conducting a post-audit to identify errors in the forecasting process.C. Prioritizing proj
28、ects according to project profitability and company resources.18.A strong corporate code of ethics is vitally important. Which of the following statements concerning a firms code of ethics is least likely accurate（）A. As part of investor review of the firm’s ethical climate, investors should d
29、etermine whether the firm gives the board access to relevant corporate information in a timely manner.B. A firm’s code of ethics sets standards for ethical conduct based on basic principles of integrity, trust and honesty.C. A firm’s code of ethics should require clear disclosure of any
30、advantages given to the firm’s insiders that are not also offered to shareholders.19.Which of the following choices best describes the role of taxes on the after-tax cost of capital in the U. S. from the different capital sources Common equity Preferred equity Debt（）A. No effect Decrease Decre
31、ase B. Decrease Decrease No effect C. No effect No effect DecreaseA. B. C. 20.An analysts examination of the performance of a company is least likely to include an assessment of a companys:（）A. profitability.B. cash flow generating ability.C. assets relative to its liabilities.21.Which of the follow
32、ing is most directly associated with secondary capital markets（）A. Source of liquidity.B. Security underwriting.C. Shelf registration of securities.22.Foreign currency translation adjustments are most likely reported in the companys:（）A. income statement.B. statement of cash flows.C. statement of st
33、ockholders’ equity.23.Regarding corporate governance, which of the following most likely would be a reason for concern when evaluating an independent board members qualifications The board member:（）A. has served on the board for 14 years.B. owns 1000 shares of the corporation’s equity.C.
34、 has formerly served on the boards of several successful companies.24.When the financial statements materially depart from accounting standards and are not fairly presented, the audit opinion would be a(n):（）A. adverse opinion.B. qualified opinion.C. disclaimer of opinion.25.An analyst determines th
35、at an 8 percent option-free bond, maturing in 2015, would experience a 3 percent change in price if market interest rates rise by 50 basis points. If market interest rates fall by 50 basis points, the bonds price would increase by:（）A. exactly 3%.B. less than 3%.C. more than 3%.26.Which of the follo
36、wing is least likely to reduce the principal-agent problem in enterprise organizations（）A. Ownership.B. Long-term contracts.C. Professional management.27.A company is considering building a distribution center on developed land it acquired more than ten years ago at a cost of $400 000. The company e
37、stimates that the cost of putting in utilities, sewers, roads, and other such costs of preparing the land for the distribution center at $ 200 000. Alternatively, the undeveloped land could be sold today to another company for $600 000. If the company builds the distribution center, the cost of the
38、land for capital budgeting purposes is closest to:（）A. $400000.B. $600000.C. $800000.28.An analyst gathers the following information from a companys accounting records ($ thousand):（）A3050000B2050000C105000029.An analyst calculates the following ratios for a firm:（）A19.92%B18.92%C17.92%30.A company
39、is considering issuing either a straight coupon bond or a coupon bond with warrants attached. The proceeds from either issue would be the same. If the firm issues the bond with warrants attached instead of the straight coupon bond, which of the following ratios will most likely be lower for the bond
40、 with warrants（）A. Return on assets.B. Debt on equity ratio.C. Interest coverage ratio.31.The lower bound on a European call price is the greater of zero and:（）A. the underlying price minus the exercise price.B. the present value of the exercise price minus the underlying price.C. the underlying pri
41、ce minus the present value of the exercise price.32.Assuming efficient markets and a lack of access to superior analysts, which of the following is the least important activity in managing portfolios（）A. Minimizing total transaction costs.B. Diversifying completely on a global basis.C. Paying close
42、attention to the monetary policy environment.33.The following end of month payments of $400, $700, and $300, (respectively) are due. Given a stated annual interest rate of 3.6 percent, the minimum amount of money needed in an account today to satisfy these future payments is closest to:（）A. $1308.B.
43、 $1387.C. $1391.34.An analyst gathers the following data about a European company with a double-digit growth rate that is expected to continue for three more years:The best estimate of the company’s value per share is closest to:()A.€35.18B.€46.72C.€48.6835.An analyst gathers th
44、e following information for a company:（）A36.8B44.8C46.836.For the common stock of a firm that reported a small loss for the year just ended, the price multiple that is least likely to be meaningful is:（）A. price to cash flow.B. leading price to earnings.C. trailing price to earnings.37.Which of the
45、following statements about the central limit theorem is least likely correct()AThe variance of the distribution of sample means isBThe central limit theorem has limited usefulness for skewed distributions.CWhen the sample size n is large, the distribution of the sample means is approximately normal.
46、38.An analyst gathered the following information about a company that expects to fund its capital budget without issuing any additional shares of common stock:If no significant size or timing differences exist among the projects and the projects all have the same risk as the company, which project h
47、as an internal rate of return that exceeds 10 percent（）A. All three projects.B. The warehouse project only.C. The warehouse project and the equipment project.39.David Sandridge earned the right to use the CFA designation in September 1968. Sandridge recently retired from the investment management profession. As he is retired, Sandridge no longer attends CFA Institute society meetings and has stopped paying his CFA Institute dues. According to the Standards of Practice Handbook, how should Sandridge refer to his affiliation with CFA program