Question 71 

The quick ratio is considered a more conservative measure of liquidity than the current ratio because the quick ratio excludes: 

A) accounts receivable, which may not be collectible in the short term.

B) short-term marketable securities, which may need to be sold at a significant loss.

C) inventories, which are not necessarily liquid.

D) any short-term assets other than cash and cash equivalents.

Question 72 

The set of internal controls, processes, and procedures that are used to manage publicly held firms is called: 

A) corporate bylaws.

B) directors’ charter.

C) the board of directors constitution.

D) corporate governance.

Question 73 

Which of the following is least likely to be useful to an analyst who is estimating the pretax cost of a firm’s fixed-rate debt? 

A) The coupon rate on the firm’s existing debt.

B) The yield to maturity of the firm’s existing debt.

C) The rating and maturity of the firm’s existing debt.

D) Seniority and any special covenants of the firm’s anticipated debt.

Question 74 

Which of the following is the most appropriate basis for the weights when calculating a firm’s weighted average cost of capital? 

A) The firm’s current capital structure using book values.

B) The firm’s current capital structure using market values.

C) The firm’s industry average capital structure.

D) The firm’s target capital structure.

Question 75 

When preparing cash flow forecasts, statistical models of sales and credit collections are most often used for: 

A) medium-term cash flow expenditures.

B) short-term cash flow forecasts.

C) short term cash flow expenditures.

D) long-term cash flow forecasts.

答案和详解如下：

Answer 71 

The correct answer was C) inventories, which are not necessarily liquid. 

The quick ratio is usually defined as (current assets – inventory) / current liabilities. It is a more restrictive measure of liquidity than the current ratio, which equals current assets / current liabilities. The numerator of the quick ratio includes cash, receivables, and short-term marketable securities. 

This question tested from Session 11, Reading 46, LOS a

Answer 72 

The correct answer was D) corporate governance. 

Corporate governance is the set of processes, policies, customs, laws, and institutions that influence the manner in which a corporation is directed, administered, or controlled. It defines the rights, roles, and responsibilities of all of the corporation’s stakeholders (board of directors, managers, and stockholders). It is a firm’s system of checks and balances. 

This question tested from Session 11, Reading 48, LOS a

Answer 73 

The correct answer was A) The coupon rate on the firm’s existing debt. 

Ideally, an analyst would use the YTM of a firm’s existing debt as the pretax cost of new debt. When a firm’s debt is not publicly traded, however, a market YTM may not be available. In this case, an analyst may use the yield curve for debt with the same rating and maturity to estimate the market YTM. If the anticipated debt has unique characteristics that affect YTM, these characteristics should be accounted for when estimating the pretax cost of debt. The cost of debt is the market interest rate (YTM) on new (marginal) debt, not the coupon rate on the firm’s existing debt. If you are provided with both coupon and YTM on the exam, you should use the YTM. 

This question tested from Session 11, Reading 45, LOS f

Answer 74 

The correct answer was D)

The weights in the calculation of the WACC should be based on the firm’s target capital structure. This is the capital structure that the firm seeks to maintain or achieve over time. If the firm’s target capital structure is not known, the current capital structure, adjusted for observable trends, or the industry average capital structure may be used. 

This question tested from Session 11, Reading 45, LOS c

Answer 75 

The correct answer was D) long-term cash flow forecasts. 

Long-term cash forecasts are typically derived from projected income statements and balance sheets that are based on statistical models of sales, credit collections, and input costs. 

This question tested from Session 11, Reading 46, LOS c

d

d

b

d

a

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