题目内容

A firm is planning a $25 million expansion project. The project will be financed with $10 million in debt and $15 million in equity stock (equal to the company’s current capital structure). The before-tax required return on debt is 10 percent and 15 percent for equity. If the company is in the 35 percent tax bracket, what cost of capital should the firm use to determine the project’s net present value (NPV)（）

A. 11.6%.
B. 9.6%.
C. 10.5%.

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Stock K has a beta of 0.7. Which of the following statements is/are true Ⅰ. The SML required return for K should be below the expected return on the market. Ⅱ. K has above-average covariance with the market portfolio, M Ⅲ. A portfolio of 70% M and 30% risk-free asset will have the same expected return as K（）

A. Ⅰ and Ⅲ.
B. Ⅱ only.
C. Ⅱ and Ⅲ.

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Which of the following is least likely to be considered a stated goal of the International Accounting Standards Board (IASB)（）

A. Develop global accounting standards requiring transparency, comparability, and high quality in financial statements.
B. Remain neutral in the debate on the use of global accounting standards to avoid appearance of a conflict of interest.
C. Account for the needs of emerging markets and small firms when implementing global accounting standards.

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Which reason for purchasing U. S. Treasury securities is least valid（）

A. Coupon strips synthesize a zero-coupon bond.
B. Treasury-bonds are available in maturities of two years to nearly 30 years.
C. Treasury Inflation Protection Securities (TIPS) raise their principal value to adjust for inflation.

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Which of the following statement concerning about the probability concepts is TRUE（）

A joint probability is the probability that two or more events happen concurrently.
B. Subjective probability is a probability drawing on observation.
C. A random variable is a quantity whose outcomes are certain.

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A. 11.6%. B. 9.6%. C. 10.5%.

Which of the following is least likely to be considered a stated goal of the International Accounting Standards Board (IASB)（）

Which reason for purchasing U. S. Treasury securities is least valid（）

Which of the following statement concerning about the probability concepts is TRUE（）

A. 11.6%.
B. 9.6%.
C. 10.5%.