QuickQuiz10

1、单选题：
‎An investment project has the following discounted cash flows ($’000).​Year​Discount rate​ ​0%​ ​10%​ ​20%​‎ ​0​(90)​ ​(90)​ ​(90)​‎ ​1​30​ ​27.3​ ​25.0​‎ ​2​30​ ​24.8​ ​29.8​‎ ​3​30​ ​22.5​ ​17.4​‎ ​4​30​ ​20.5​ ​14.5​‎ ​ ​30​ ​5.1​ ​(12.3)​‎ ​‎The required rate of return on investment is 10% per annum.​‎What is the discounted payback period of the investment project?​‎​
选项：
A: Less than 3 years
B: 3 years
C: Between 3 years and 4 years
D: More than 4 years
答案: 【 Between 3 years and 4 years】

2、多选题：
‎The examples of uncertain independent variables on which the NPV of a project may depend include:‍
选项：
A: Sales volume
B: Cost of capital
C: Initial cost
D: Operating costs
答案: 【 Sales volume;
Cost of capital;
Initial cost;
Operating costs】

3、多选题：
​Managers can reduce risk in which way ?‏
选项：
A: Set maximum payback period
B: Use high discounting rate
C: Use sensitivity analysis to determine the critical factors within the decision-making process
D: Use pessimistic estimates
答案: 【 Set maximum payback period;
Use high discounting rate;
Use sensitivity analysis to determine the critical factors within the decision-making process;
Use pessimistic estimates】

4、判断题：
‍Sensitivity analysis allows for uncertainty in project appraisal by assessing the probability of changes in the decision variables.‍
选项：
A: 正确
B: 错误
答案: 【 错误】

5、判断题：
‍Expected values can help an accountant evaluate the range of possible net present value outcomes.‎
选项：
A: 正确
B: 错误
答案: 【 错误】

6、判断题：
​The Certainty-equivalent approach is where expected cash flows are converted to riskless equivalent amounts.‍​‍
选项：
A: 正确
B: 错误
答案: 【 正确】

7、判断题：
‍Simulation models constructed by assigning a range of random number digits to each possible value of each of the uncertain variables.​
选项：
A: 正确
B: 错误
答案: 【 正确】

QuickQuiz11

1、单选题：
​The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine?​
选项：
A: $4697
B: $3575
C: $4111
D: $3109
答案: 【 $4697】

2、多选题：
‍Why hard capital rationing may occur?‌
选项：
A: Raising money through the stock market may not be possible if share prices are depressed.
B:  There are restrictions on lending due to government control.
C: Lending institutions may consider the organization to be too risky.
D: The costs associated with making small issues of capital may be too great.
答案: 【 Raising money through the stock market may not be possible if share prices are depressed.;
 There are restrictions on lending due to government control.;
Lending institutions may consider the organization to be too risky.;
The costs associated with making small issues of capital may be too great.】

3、判断题：
‏Hard capital rationing occurs when a restriction on an organization’s ability to invest capital funds is caused by an internal budget ceiling imposed by management.‎
选项：
A: 正确
B: 错误
答案: 【 错误】

4、判断题：
​The best way to find the optimal solution in a situation of single period rationing with indivisible projects is to use trial and error and test the NPV available from different project combinations.‏
选项：
A: 正确
B: 错误
答案: 【 正确】

5、判断题：
‎An indivisible project is a project that must be undertaken completely or not at all.‎
选项：
A: 正确
B: 错误
答案: 【 正确】

6、判断题：
‏The lessee is responsible for the servicing of a leased asset in the case of an operating lease.‌‏‌
选项：
A: 正确
B: 错误
答案: 【 错误】

7、判断题：
‏To rank the projects according to their profitability index is the best way to find the optimal solution in a situation of single period rationing with divisible projects?‍
选项：
A: 正确
B: 错误
答案: 【 正确】

QuickQuiz12

1、单选题：
‎A company’s shares have a nominal value of $1 and a market value of $3. In a rights issue, one new share would be issued for every three shares at a price of $2.60. What is the theoretical ex-rights price?​‎​
选项：
A: $3
B: $5.60
C: $2.90
D: $0.65
答案: 【 $2.90】

2、单选题：
‌Which of the following is least likely to be a reason for seeking a stock market flotation?‎
选项：
A: Improving the existing owners’ control over the business
B: Access to a wider pool of finance
C: Enhancement of the company’s image
D: Transfer of capital to other uses
答案: 【 Improving the existing owners’ control over the business】

3、单选题：
‌Which of the following is not true of a rights issue by a listed company?‌
选项：
A: Rights issues do not require a prospectus.
B: The rights issues price can be at a discount to market price.
C: If shareholders do not take up the rights, the rights lapse.
D: Relative voting rights are unaffected if shareholders exercise their rights.
答案: 【 If shareholders do not take up the rights, the rights lapse.】

4、多选题：
‏Why a company may seek a stock market listing?​
选项：
A:  access to a wider pool of finance
B:  improved marketability of shares; transfer of capital to other uses
C: enhancement of company image
D: making growth by acquisition possible
答案: 【  access to a wider pool of finance;
 improved marketability of shares; transfer of capital to other uses;
enhancement of company image;
making growth by acquisition possible】

5、填空题：
‍A company has 12% loan notes in issue, which have a market value of $135 per $100 nominal value. What is he coupon rate?‏‍‏
答案: 【 12%】

6、填空题：
‎A company has 12% loan notes in issue, which have a market value of $135 per $100 nominal value. What is the amount of interest payable per annum per $100 (nominal) of loan note?​‎​
答案: 【 $12】

QuickQuiz13

1、单选题：
Which of the following sources of finance to companies is the most widely used in practice?                 ​
选项：
A: Bank borrowings  
B: Rights issues    
C: New share issues
D: Retained earnings     
答案: 【 Retained earnings     】

2、单选题：
A scrip dividend is:‎
选项：
A: A dividend paid at a fixed percentage rate on the nominal value of the shares
B: A dividend paid at a fixed percentage rate on the market value of the shares on the date that the dividend is declared
C: A dividend payment that takes the form of new shares instead of cash
D: A cash dividend that is not fixed but is decided on by the directors and approved by theshareholders
答案: 【 A dividend payment that takes the form of new shares instead of cash】

3、判断题：
​A company offers to pay a dividend in the form of new shares which are worth more than the cash alternative which is also offered. This dividend in the form of shares is called an enhanced scrip dividend.​
选项：
A: 正确
B: 错误
答案: 【 正确】

4、判断题：
‌ ‘Signalling’ in the context of dividends policy is the use of dividend policy to indicate the future prospects of an enterprise.‍
选项：
A: 正确
B: 错误
答案: 【 正确】

QuickQuiz14

1、多选题：
‌What are the main characteristics of small and medium-sized enterprises?‏
选项：
A: Firms are likely to be unquoted.
B: Ownership of the business is restricted to a few individuals, typically a family group.
C: Ownership of the business is restricted to one individual.
D: They are not micro businesses that offer a medium for self-employment of their owners.
答案: 【 Firms are likely to be unquoted.;
Ownership of the business is restricted to a few individuals, typically a family group.;
They ar