69. A large corporation accepts a project which generates no revenue and has a negative net present value. The project most likely is classified in which of the following categories?
A. Replacement project. B. New product or service. C. Regulatory or environmental project.
70. A company recently opened a limestone quarry at a location outside its traditional service area. Because limestone is a major ingredient in concrete, if the quarry is successful the company plans to build a ready-mix concrete plant at the same location. The investment in the concrete plant is best described as:
A. an externality. B. project sequencing. C. an example of investment synergy.
71. An analyst determines the following cash flows for a capital project:
78. Which of the following is least likely classified as a takeover defense?
A. Greenmail. B. Cumulative voting. C. Golden parachutes.
Answer: B “The Corporate Governance of Listed Companies: A Manual for Investors” 2009 Modular Level I, Volume 4, pp. 186-187 Study Session 11-48-g Evaluate, from a shareowner’s perspective, company policies related to voting rules, shareowner sponsored proposals, common stock classes, and takeover defenses. The ability to use cumulative voting enables shareowners to vote in a manner that enhances the likelihood that their interests are represented on the board. It is a valuable shareowner right.
72. An analyst gathers the following information about the capital structure and before-tax component costs for a company. The company’s marginal tax rate is 40 percent.
Capital component
Book Value (000)
Market Value (000)
Component cost
Debt Preferred stock Common stock
$100 $20 $100
$80 $20 $200
8% 10% 12%
The company’s weighted average cost of capital (WACC) is closest to:
A. 8.55%. B. 9.95%. C. 10.80%.
73. A company is considering issuing a 10-year, option-free, semiannual coupon bond with a 9 percent coupon rate. The bond is expected to sell at 95 percent of par value. If the company’s marginal tax rate is 30 percent, then the after-tax cost of debt is closest to: A. 6.30%. B. 6.86%. C. 9.80%.
74. A company plans to issue nonconvertible, noncallable, fixed-rate perpetual preferred stock with a $6 annual dividend. The preferred stock is expected to sell for $40. If the company’s marginal tax rate is 30 percent, then the cost of preferred stock is closest to:
发表于 2009-6-29 14:09
| 
