Chapter 15  Raising Capital
Multiple Choice Questions
4. What is a prospectus?
A. a letter issued by the SEC authorizing a new
issue of securities
B. a report stating that the SEC recommends a new
se
Chapter 09  Net Present Value and Other Investment Criteria
Multiple Choice Questions
Learning Objective: 93
Section: 9.3
Topic: Discounted payback period
1. A project has an initial cost of $27,400
Key Concepts and Skills
Be able to compute the future value of an investment made
today
Chapter 5
Be able to compute the present value of cash to be
received at some future date
The Time Value of Mo
Chapter 01  Introduction to Corporate Finance
Learning Objective: 13
Section: 1.2
Topic: General partnership
Multiple Choice Questions
1. Which one of the following terms is defined as the
managemen
Chapter 07  Interest Rates and Bond Valuation
5. Currently, the bond market requires a return of 11.6
percent on the 10year bonds issued by Winston Industries.
The 11.6 percent is referred to as whi
Chapter 4
Understanding Interest Rates
T
Multiple Choice
1)
Of the following measures of interest rates, which is considered by economists to be the most
accurate?
(a) The yield to maturity
(b) The co
Balance Sheet
Balance sheet: a snapshot of the firms assets and
liabilities at a given point in time
Chapter 2
Assets = Liabilities + Stockholders equity
Financial Statements, Taxes,
and Cash Flows
S
Key Concepts and Skills
Understand how to determine the relevant cash flows for
various types of proposed investments
Chapter 10
Understand the various methods for computing operating
cash flow
Maki
Key Concepts and Skills
Understand, and know how to calculate, the return
on an investment
Chapter 12
Some Lessons from Capital Market History
Understand the historical returns on various types
of i
Key Concepts and Skills
Be able to compute the future value of multiple cash flows
Be able to compute the present value of multiple cash flows
Chapter 6
Be able to compute loan payments
Discounted
Key Concepts and Skills
Understand how stock prices depend on future dividends
and dividend growth
Chapter 8
Be able to compute stock prices using the dividend growth
model
Stock Valuation
Understa
Key Concepts and Skills
Know how to determine a firms
Chapter 14
Cost of equity
Cost of debt
Overall cost of capital
Cost of Capital
Understand pitfalls of overall cost of capital and how to
mana
Key Concepts and Skills
Know the basic types of financial management decisions
and the role of the financial manager
Chapter 1
Know the financial implications of the different forms of
business orga
Basic setting
Turn on/off the calculator by pressing the right top button, which is, the onoff
button.
Before using your calculator, there are a few things you should learn:

To reset the calculator
1.3 Expenditure approach and Income approach as all the money a business receives from
the sale of its output must end up as someones income.
1.9 The value of the house built in 2000 would not be incl
1.2
An increase in the number of discouraged workers who were previously counted as
unemployed could cause the number of people counted as unemployed (and the labor
force) to fall by enough to decreas
Key Concepts and Skills
Understand the venture capital market and its role in
financing new businesses
Chapter 15
Understand how securities are sold to the public and the
role of investment bankers
Key Concepts and Skills
Understand the effect of financial leverage on cash
flows, and the cost of equity
Chapter 16
Modigliani and Miller (M&M) Theory of Capital Structure
Financial Leverage
and Ca
Key Concepts and Skills
Know how to calculate expected returns and variance
Chapter 13
Understand the impact of diversification
Return, Risk, and the Security Market Line
Understand systematic risk
Key Concepts and Skills
Know the important bond features and bond types
Chapter 7
Understand bond values and why they fluctuate
Interest Rates and Bond Valuation
Understand bond ratings and what th
BE103/512
THE UNIVERSITY OF HONG KONG
FACULTY OF BUSINESS AND ECONOMICS
School of Economics and Finance
FINA1003/FINA1310 Subclasses I&J Corporate Finance
Semester II, 2012/2013
GENERAL INFORMATION
In
Key Concepts and Skills
Be able to compute payback and discounted payback and
understand their shortcomings
Chapter 9
Understand accounting rates of return and their shortcomings
Net Present Value a
THE UNIVERSITY OF HONG KONG
DEPARTMENT OF STATISTICS AND ACTUARIAL SCIENCE
STAT1302
Probability and Statistics II
Class Test
Name
March 2012
University Number
Answer all questions, and write your answ