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TEST BANK ADVANCED CORPORATE FINANCE: Policies and Strategies
Joseph P. Ogden State University of New York, Buffalo
Frank C. Jen State University of New York, Buffalo
Philip F.
’ Southern Utah University
Prentice Hall, Upper Saddle River, New Jersey 07458 Ogden, Jen, and O’Connor: Advanced Corporate Finance
Copyright © 2002 Prentice hall Inc. All rights reserved.
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© 2002 Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, New Jersey 07458
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ISBN
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Ogden, Jen, and O’Connor: Advanced Corporate Finance
Copyright © 2002 Prentice hall Inc. All rights reserved.
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PREFACE This test bank has been prepared for professors using the textbook, Advanced Corporate Finance: Policies and Strategies, by Ogden, Jen, and O’Connor, Prentice Hall, 2000. The test bank provides, for each chapter, sets of multiple-choice questions and essay questions. For each multiple-choice question, the correct answer is highlighted with an asterisk (*), and if the question involves numerical calculations, the applicable formula is provided. Joseph P. Ogden
Ogden, Jen, and O’Connor: Advanced Corporate Finance
Copyright © 2002 Prentice hall Inc. All rights reserved.
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CONTENTS Chapter 1… ......................................................................................................................................5 Chapter 2… ......................................................................................................................................8 Chapter 3… ....................................................................................................................................12 Chapter 4… ....................................................................................................................................17 Chapter 5… ....................................................................................................................................20 Chapter 6… ....................................................................................................................................22 Chapter 7… ....................................................................................................................................26 Chapter 8… ....................................................................................................................................30 Chapter 9… ....................................................................................................................................34 Chapter 10… ..................................................................................................................................38 Chapter 11… ..................................................................................................................................43 Chapter 12… ..................................................................................................................................45 Chapter 13… ..................................................................................................................................48 Chapter 14… ..................................................................................................................................51 Chapter 15… ..................................................................................................................................53 Chapter 16… ..................................................................................................................................56 Chapter 17… ..................................................................................................................................61 Chapter 18… ..................................................................................................................................64 Chapter 19… ..................................................................................................................................67
Ogden, Jen, and O’Connor: Advanced Corporate Finance
Copyright © 2002 Prentice hall Inc. All rights reserved.
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CHAPTER 1 Empirical Perspectives on the Financial Characteristics of Publicly Traded U.S. Nonfinancial Firms Multiple Choice Questions 1. For public U.S. nonfinancial firms in composite, the fractions of current assets and non-current assets (all in book values; year-end 2000) are approximately: Current Non-current Assets Assets a. 1/3 2/3 * b. 1/2 1/2 c. 2/3 1/3 2. For public U.S. nonfinancial firms in composite, the fractions of liabilities (current plus noncurrent), and equities (all in book values, year-end 2000) are approximately: Liabilities Equities a. 1/3 2/3 b. 1/2 1/2 c. 2/3 1/3 * 3. Over the years 1981-2000, 4,770 nonfinancial firms exited the U.S. markets for publicly traded equity. Which of the following was the most frequent reason for a firm’s exit? a. Merger or acquisition * b. Bankruptcy or liquidation c. The firm reverted to private equity ownership d. The firm changed its listing to a foreign stock exchange 4. What average annual proportion of the total number of public U.S. nonfinancial firms at year-end 1980 exited over the years 1981-2000 (i.e., the average attrition rate)? a. 5.9% * b. 15.9% c. 25.9% d. 35.9% 5. Which category of composite assets (for public U.S. nonfinancial firms) showed the largest proportional decrease over the years 1980-2000? a. cash and equivalents b. inventories c. net PP&E * d. other non-current assets
Ogden, Jen, and O’Connor: Advanced Corporate Finance
Copyright © 2002 Prentice hall Inc. All rights reserved.
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6. Throughout the period 1980-2000, the composite proportion of the TA of U.S. nonfinancial firms accounted for by net PP&E generally (i) , and the proportion of TA financed by equity (ii) fairly steadily. (i) (ii) a. decreased increased b. increased decreased * c. increased also increased d. decreased also decreased 7. Which category of liabilities & equities had the smallest proportion in every year from 19802000? a. current liabilities b. debt c. other non-current liabilities d. common stock e. preferred stock * 8. For public U.S. nonfinancial firms over the years 1980-2000, the composite market-to-book equity ratio generally: a. increased from 1980-2000. * b. decreased from 1980-2000. c. remained stable from 1980-2000. 9. Which groups of U.S. nonfinancial firms have the highest composite proportions of PP&E to TA? a. S&P Industrials b. S&P MidCaps c. S&P SmallCaps d. S&P Transports and Utilities * 10. According to the composite sources-and-uses data presented in Chapter 1, the main net source of funds for U.S. nonfinancial firms over the years 1980-2000 is: a. proceeds from debt offerings. b. proceeds from equity offerings. c. retained earnings (net cash flow from operations). * d. sales of investments (net of increases in investments). 11. Over the 20-year period of 1980-2000, the composite dividend yield of public U.S. nonfinancial firms has generally: a. increased. b. decreased. * c. remained. 12. The ownership structures of most publicly traded U.S. nonfinancial firms is better characterized by the term: a. closely held b. diffuse *
Ogden, Jen, and O’Connor: Advanced Corporate Finance
Copyright Š 2002 Prentice hall Inc. All rights reserved.
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