答案和详解如下： Answer 76 The correct answer was D) An increase in the effective tax rate. As indicated in the extended DuPont equation presented below, the only factor listed that would decrease ROE is an increase in the tax rate. All of the other choices will cause an increase in ROE.
This question tested from Session 11, Reading 47, LOS a
Answer 77 The correct answer was A) The correct way to account for flotation costs when performing NPV analysis is to increase the initial cost of the project by the amount of the flotation costs. Flotation costs should not be reflected in the equity component of the weighted average cost (the discount rate) used in NPV analysis because they represent a one time expense that occurs only at the initiation of a project. This question tested from Session 11, Reading 45, LOS k
Answer 78 The correct answer was C) A large, publicly held U.S. firm where managers that MBA degrees. Companies that favor discounted cash flow capital budgeting techniques such as NPV and IRR over payback period or other non-DCF capital budgeting techniques tend to have the following characteristics: ♣ Location: European firms tend to favor payback period. ♣ Size: Smaller firms tend to favor payback period. ♣ Ownership: Private firms tend to favor payback period. ♣ Management education: The more highly educated a firm’s management, the more likely it is to use a DCF capital budgeting technique as its primary tool.
This question tested from Session 11, Reading 44, LOS f
Answer 79 The correct answer was C) Securities that fall on the SML are properly priced. They have value to an investor in that they still earn a return. This question tested from Session 12, Reading 51, LOS e
Answer 80 The correct answer was D) The presence of transactions costs causes the SML to become a band rather than a line because investors will not force slightly overpriced or underpriced securities back to the SML if the expected profit is less than transactions costs. Different SMLs for each investor exist if the assumption of homogeneous risk and return expectations or the assumption of uniform single-period time horizons is relaxed. A zero-beta portfolio can produce a linear SML even if investors cannot borrow or lend unlimited funds at the risk-free rate. This question tested from Session 12, Reading 51, LOS d, (Part 2)
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发表于 2008-11-12 21:37
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