CHƯƠNG 1:

1.26 A business created as a distinct legal entity and treated as a legal "person" is called a:.
1. Corporation
2. Sole proprietorship
3. Partnership
4. Unlimited liability company
1.16 A stakeholder is:
1. A person who owns shares of stock,
2. Any person who has voting rights based on stock ownership of a corporation.
3. A person who initially founded a firm and currently has management control over that
firm.
4. Any person or entity other than a stockholder who potentially has a claim on the cash flows
of a firm.
1.14 Short-term cash flow improvement may not be achieved by
1. Increasing trade payables
2. Reducing trade payables
3. Reducing inventories
4. Reducing trade receivables
1.15 The agency problem will occur in a business if the goal of is not in line with
1. Employees, managers
2. Managers, the government
3. Managers, shareholders
4. Shareholders, the public
1.12 Which one of the following is least likely to be an agency problem?
1. Increasing the size of a firm
2. Concentrating on maximizing current profits
3. Closing a division with net losses
4. Increasing the market value of the firm's shares
5. Obtaining a patent for a new product
1.13 Which of the following accounts are included in working capital management?
I. Accounts payable
I. Accounts receivable
IlI. Fixed assets
IV. Inventory
1. I and II only
2. I and II only
3. II and IV only
4. I, Il, and IV only
5. IL, III, and IV only
1.17 Which of the following questions are addressed by financial managers?
I. How should a product be marketed?
II. Should customers be given 30 or 45 days to pay for their credit purchases?
III. Should the firm borrow less money?
IV. Who should be recruited for the sales department?
V. Should the firm acquire new equipment?
1. I and IV only
2. II and III only
3. II, II, and V only
4. Il and V only
5. All of the above
1.18 Which one of the following is a capital budgeting decision?
1. Determining how many shares of stock to issue
2. Deciding whether or not to purchase a new machine for the production line
3. Deciding how to refinance a debt issue that is maturing
4. Determining how much inventory to keep on hand
5. Determining how much money should be kept in the checking account
1.19 Which one of the following statements concerning a sole proprietorship is correct?
1. A sole proprietorship is designed to protect the personal assets of the owner.
2. The owner of a sole proprietorship is personally responsible for all of the company's debts.
3. The profits of a sole proprietorship are subject to double taxation
4. A sole proprietorship is structured the same as a limited liability company.
1.20 Which statement of the following is incorrect?
I. Dividend policy is related to the distribution of profit before tax
II. A firm can choose between debt and equity to raise money.
III. Working capital management is related to long-term investment in fixed assets.
IV. A new share issue is carried out on the primary market.
V. A firm needs to evaluate customer creditworthiness before granting them credit sales.
1. I and III
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2. I and IV only
3. I, Il, and Ill only
4. II and IV only
1.21 Which one of the following forms of business organization is best suited to raising large
amounts of capital?
1. Sole proprietorship
2. Limited liability company
3. Corporation
4. General partnership.
1.22 Which one of the following best states the primary goal of financial management?
1. Maximize current dividends per share
2. Maximize the current value per share
3. Increase cash flow and avoid financial distress
4. Minimize operational costs while maximizing firm
efficiency
5. Maintain steady growth while increasing current profits
1.23 Which of the following best describe the function of financial markets?
I. Bridge capital supply and demand
II. Transfer risks among market participants
III. Set up legal requirements for establishing companies
IV. Provide different payment methods
V. Sell and buy financial assets
1. I and II only
2. I, Il, and V only
3. I, Ill, and IV only
4. I, Il, and IV only
1.24 Which one of the following is a primary market transaction?
1. Sale of existing outstanding stock by a dealer to an individual investor
2. Sale of a new share of stock to an individual investor
3. Stock ownership is transferred from one shareholder to another shareholder
4. Gift of stock from one shareholder to another shareholder
5. Gift of stock by a shareholder to a family member
1.25 Which one of the following financial decisions immediately changes the firm's average
cost of capital?
1. Invest in a new potential project
2. Employ more debt
3. Store more finished products
4. Increase dividend pay-out ratio
CHƯƠNG 2:
2.12 What are the main applications of the timeline in solving the time value of money?
1. It informs when the inflows happen.
2. It informs the discount rate of the cash flows.
3. It informs whether or not a cash flow is an inflow or an outflow.
4. It informs when a cash flow happens and the characteristic of a cash flow, inflow or
outflow
2.13 Which of the following cash flows is an ordinary annuity?
(I) The renting payment of VND 10 million at the end of each year in 5 years
(II) The earnings from an investment with VND 10, million at the end of the first 2 years and
VND 150 million pa year for the next 3 years
(III) Firm X continuously pays VND 5,000 per share with the annual rate of growth at 5%
(IV) You put VIND 10 million at the beginning of each year in 10 years
1. (I)&(II)
2. (I)&(III)
3. (Il) & (TV)
4. All exclude (IV)
5. Only 1
2.14 If you want to know how much money you have to invest in assets today to get a
particular amount of money after 10 years, you have to use:
1. The future value of a single cash flow
2. The future value of perpetuity
3. The future value of annuity
4. The present value of a single cash flow
2.15 To calculate the future value of cash flows, we need information on which components:
1. The amount of money and the discount rate
2. The discount rate and when the money occurs
3. The amount of money, the discount rate, and when the money occurs
4. The amount of money and the date of money
2.16 When the discount rate increases and other factors are kept unchanged, the present value
(P) of the perpetuity with equal payments at the end of each period will
1. No change since payments last forever
2. Decrease since PV positively correlates with the discount rate
3. Increase since PV negatively correlates with the discount rate
4. Decrease since PV negatively correlates with the discount rate
2.17 For a specific initial amount of investment, at a particular interest rate, when the
compounding period becomes shorter, the future value of this money after a specific period
becomes:
1. Smaller
2. No change
3. Larger
4. Either smaller or larger
2.18 At a specific economic scenario,compound calculation can bring larger future value to
investors than simple calculation because:
1. The simple calculation ignores interest payment
2. The compound calculation composes the interest payments of the previous period in the
principal of current period
3. The compound calculation has higher discount rate
than the simple calculation
4. The simple calculation adds the interest payments of the previous period in the principal of
current period
2.19 If you have information on the present value of an ordinary annuity (assume A), how
can you calculate the present value of the annuity due at the discount rate r?
1. Multiple A by r
2. Divide Aby r
3. Multiple A by (1+r)
4. Multiple A by r/ (1+r)
2.20 Firm X offers a quarterly dividend of VIND 2,000 continuously with the rate of growth
at 10%. To evaluate the current price of the company X's offer, you should apply:
1. The formula for the present value of an ordinary annuity
2. The formula for the future value of perpetuity
3. The formula for the present value of a due annuity
4. The formula for the present value of a growing perpetuity
2.21 What is the main difference between annuity due and ordinary annuity?
1. The discount rate
2. The periodic payments
3. The length of payment period
4. The date of the first payment
2.22 The present value of the annuity due with equal payments is different from the PV of the
ordinary annuity with equal payments by:
1. (I+r)/r
2. 1/(1+r)
3. (r+1)
4. r/(1+r)
2.23 The stated annual rate becomes the effective annual rate when considering:
1. The inflation of an economy
2. The expected return of the investors
3. The compounding period
4. The date of investment

2.24 The future value of VND 100 million today at the rate of 12% after 10 years in the
following with compound calculation is:
1. VND 112 million
2. VND 220 million
3. VND 833 million
[Link] 310.6 million
2.25 The difference in the future value of VND 100 million today at the rate of 12% after 10
years when using the compound and simple interest calculation is:
1. VND 120 million
2. VND 332.769 million
3. VND 212.769 million
4. VND 90.584 million
2.26 Mr. X puts money in two investment opportunities. The first investment brings VND 1
million at the end of each year in 5 years. The second opportunity provides him with VND 2
million at the end of each year in the first 3 years and VND 3 million in 2 years later. If the
interest rate is kept constant at 10% per year, how much money will Mr.X receive after 5
years?
1. VND 18.315 million
2. VND 24.420 million
3. VND 14.940 million
4. VND 20.415 million
2.27 Mr. X is considering buying a new house. He expects to own this house in 10 years and
sells at the end of the year 10 with the price of VND 1.5 billion. If the discount rate is kept
S.S stable at 12%, how much money Mr.X is willingness to pay today to buy this house?
1. VND 1,017.040 million
2. VND 482.960 million
3. VND 1,500 million
4. VND 2,300 million
2.28 Firm X intends to pay VND 3,500 per share next year and continuously pays its
dividend at the constant growth rate of 7%. Firm Y plans to keep its dividend constantly grow
at the rate of 5%. Assuming the discount rate at 12%, if the share price of firm Y is equal to
firm X, how much is the dividend of firm Y next year?
1. VND 8,400
2. VND 4,900
3. VND 10,000
4. VND 3,500
2.29 How much money you have to invest today to get an ordinary annuity with VND 3
million in the first six years and VND 5 million in the next four years if the discount rate is
12%? ((1 + r) ^ n - 1)/r
1. VND 38.308 million
2. VND 13.028 million
3. VND 20.028 million
4. VND 12.334 million
2.30 How much of money Mr. X has to deposit in the bank today if he wants to get VND 300
million after 5 years. Assume that the stated annual rate at 10%, compounding yearly.
1. VND 186.280 million
2. VND 300 million
3. VND 450 million
4. VND 330 million
2.31 If today you put VND 10 million in a savings account in a bank at the stated annual
interest rate of 12%. How much interest payment will you receive after 5 years when the
bank pays semi-annually?
1. VND 1.338 million
2. VND 17.623 million
3. VND 7.910 million
4. VND 1,689 million
2.32 Today you deposit VND 100 million in the bank and expect to receive VND 112 million
next year. If the inflation is expected at the rate of 5% for the coming year, what is the real
interest rate of this investment?
1. 12.00%
2. 5.00%
3. 6.67%
4. 19.00%
2.33 Firm X intends to pay VND 3,000 per share next ear. If Firm X continuously pays its
dividend with the constant ate of growth 5%, assuming the discount rate at 12%, what is
today price of Firm X's share?
1. VND 60,000
2. VND 25,000
3. VND 17,647
4, VND 42,860
2.34 Firm X intends to pay VND 3,000 per share next year and continuously pays its
dividend at the constant growth rate of 6% per year. Firm Y pays VND 4,500 per share next
year. Firm Y's dividend will constantly grow at the rate of 3% per year. Assuming the
discount rate at 12%, what is the difference in today-price of Firm X and Firm Y's share?
1. The share price of firm X is VND 100,000 less than the share price of firm Y
2. The share price of firm X is equal to the share price of firm Y
3. The share price of firm Y is VND 12,500 higher than the share price of firm Y
4. The share price of firm X is VND 25,000 less than the share price of firm Y
2.35 Mr. Awantsto receive VND 1 billion after one year His wife wants to receive this
amount of money after 5. How much money does he deposit in the bank to receive the
amount of money in each case. Assuming that the stated interest rate is 8% per year and the
bank calculates interest annually.
2.37 If you deposit VND 100 million per year during the next four years in an account paying
8% interest per year. The first deposit will be one year from now. How much will you have
after five years?
2.39 Mr. Y has VND 1.2 billion. He is considering two investment alternatives. The first is to
buy a new house right now and he believes to sell it at the end of the year 5 at the price of
VND 1.9 billion. The second is to put the idle money in the bank immediately and gets 10%
interest rate yearly. Which alternative should Mr. Y choose? Please show two ways to deal
with the question.
2.41 Ms. T wants to buy a flat. The flat costs VND 3,000 million in total. She has determined
that she can afford a VND 500 million annual payment for the next 10 years. If she can
borrow the money at 10%, can she afford the flat? Knowing that the first payment will be one
year from now.
2.50 Vietinbank offers the interest rate for a period of six months at 8%. BIDV offers the
interest rate for a quarter is 4%. Which bank should you choose to deposit your money?
FILE BT CÔ GỬI
Question 4
How much should you pay for an investment that pay VND 300 million per years for
the next three years, then VND 500 million per year for the following two years and
then VND 600 million for the last year. Assume that the discount rate is 12%.
=> 1.626 million
Question 5
Mr. A and Mrs. B are planning for their son’s education. He will start to study abroad
in 10 years. They have decided to deposit into a bank account an equal amount of
money each year over the next 10 years, starting with a deposit one year from [Link]
much will they have to deposit each year to have VND 5 billion in 10 years if the annual
interest rate is 8%?
=> 0,32 billion
Question 6
Assume that you deposit VND 200 million today, VND 300 million in two years and
VND 500 million in three years. How much will you have after five years if the interest
rate is 10%?
=> 1326,402 million
Question 7
Calculate the present value of a 20-year annuity that pay VND 300 million a year, if the
annuity’s first cash flow starts in 3 years time and the interest rate is 8% for the first 10
years and 9% thereafter.
Question 8
Suppose you are considering the purchase of an apartment at Golden Palace Hanoi for
VND 5 billion. The bank agrees to lend you money at 6%/year compounded monthly.
The loan is repaid at monthly intervals over 10 years. What is the monthly repayment?
=> 0,056 billion
Question 9
If you deposit VND 20 million at the end of each of the next five years in an account
paying 8% interest per year. The first deposit will be one year from now. How much will
you have after five years?
=> 117,33 million
Question 10
Your mother has been putting VND 10 million into a savings account on every birthday
since your first. She wants to have VND 735.7118 million in the account immediately
after she made a deposit on your 20th birthday. What is the relevant rate of interest?
=> 12,18%
Question 11
Mr. An borrows VND 2,000 million to buy a new Ford. He agrees to a repayment
schedule of 6 equal annual payments beginning one year from today. The current loan
rate is 10%, compounded annually. What is his annual payment?
=> 459,21 million
Question 12
Mai has just receipt VND 1,000 million. If she leaves the money in an account for 2
years, she will be paid 8% interest semiannual compounding. Also, she has found an
institution that will pay her 8% annual interest, compounded quarterly. What should
she do with her money?
=> chọn 2
Question 13
Suppose you want to buy a house 5 years from now and you estimate that the down
payment needed will be VND 5 billion. If you are supported 50% the value of the house
by your father and the annual interest rate is 6%, how much would you need to add to
deposit at the end of each year for the next 5 years to buy the house.
=> 0,44 billion
Question 14
Today is Ms. Ann’s 30th birthday and she decides that she will put an equal amount into
a savings account on every birthday starting from today to her 60th birthday. If the
interest rate is 7%, how much must she set aside each year to make sure that she will
have VND 10 billion in the account on her 60th birthday
=> 0,099 billion
CHAPTER 3: RISK AND RETURN
3.11. Which of the following events lead to the systematic risk?
1. The company loses 10 containers of clothes
2. The Government releases information on increasing national debt
 3. The oil prices decline due to the surplus supply in the world market
4. The firm informs an increase in sale of the next quarter.
3.12. The beta of stock A is 1.5. Which of the following statements is true when
interpreting the beta of the stock A:
1. The standard deviation of the return of stock A is 1.5
2. The expected return on the stock A is equal to the expected return on the market
3. The return of the stock A are magnified 1.5 times over those of the market
4. The expected return of the stock A is 1.5 higher than the expected return of the market
3.13. The contribution of an individual security to the variance of the portfolio is best
measured by:
1. The expected return on a security
2. The variance of a security
3. The covariance of s security with the market portfolio
4. The beta of coefficient
3.14. Which of the following statement is true when talking about the security with beta
0:
1. The expected return on a security is equal to the expected return on the market
2. The variance of a security is zero
3. The covariance of a security with the market portfolio is 1
4. The expected return on this security is equal to the risk-free market
3.15. Which of the following statement is true when talking about two securities (X and
Y) with correlation between returns equal 1?
1. They are perfectly negatively correlates
2. Both the return on security X and the return on security Y are higher than the average
at the same time
3. The covariance of two securities is 1
4. The return on security X is higher than the average while the return on security Y is
lower than the average
3.16. Stock which has higher correlation with market tend to have
1. High beta, less risky
2. Low beta, more risky
3. High beta, more risky
4. Low beta, less risky
3.17. In asset portfolio, the number of stocks increases to
1. Reduce return
2. Reduce average return
3. Reduce risk
4. Increase prices
3.18. Standard deviation of a particular stock is divided by the expected rate of return is
used to calculate:
1. Coefficient of variation
2. Coefficient of deviation
3. Coefficient of expected return
4. Coefficient of average return
3.19. Risk per unit of return or standard-alone risk is represented by
1. Coefficient of standard
2. Coefficient of return
3. Coefficient of variation
4. Coefficient of deviation
3.20. Greater chance of lower actual return than expected return and greater variation
is indicated by:
1. Smaller standard deviation
2. Larger standard deviation
3. Smaller variance
4. Larger variance
3.21. Chance of occurrence of any event is classified as:
1. Profitability
2. Risk
3. Chance
4. Event happening
3.22. Type of premium asked by investors for bearing risk on average stock is classified
as:
1. Average premium
2. Market risk premium
3. Stock premium
4. Buying discount
3.23. Method and model used to analyse the relationship between rates of return and
risk is classified as:
1. Capital asset pricing model
2. Portfolio asset pricing model
3. Asset market pricing model
4. Portfolio pricing model
3.24. Portfolio, which consists of perfectly positive correlated assets having no effect of:
1. Negative
2. Positivity
3. Correlation
4. Diversification
3.25. In capital asset pricing model, assumptions must be followed including:
1. No taxes
2. No transaction costs
3. Fixed quantities of assets
4. All of the above
3.26. Standard deviation is 18% and coefficient of variation is 1.5 an expected rate of
return will be:
1. 27.00%
2. 12.00%
3. 19.50%
4. None of above
3.27. Market risk premium is 8% and risk free return is 7% then market required
return would be:
1. 15.00%
2. 1.00%
3. $56
4. 1.14%
3.28. Required return is 11% and premium for risk is 8% then risk free return will be:
1. 3.00%
2. 19.00%
3. 0.72%
4. 1.38%
3.29. An amount invested is VND 1,500 million and an amount received is VND 2,000
million then dollar return would be:
1. VND 500 million
2. -VND 500 million
3. VND 3,500 million
4. - VND 3,500 million
3.30. Yield on bond is 7% and market required return is 14% then market risk
premium would be:
1. 2.00%
2. 21.00%
3. 0.5%
4. 7.00%
3.31. Suppose a stock had an ending share price of VND 25,000, paid a dividend of VND
1,000 per share and had an initial price of VND 22,000, the percentage of total return is:
1. 16,00%
2. 4.00%
3. 12.00%
4. 18.18%
3.32. You own a stock portfolio invested 30% in stock A, 20% in stock B, 10% in stock
C, and 40% in stock D. The betas of these four stocks are 1.2, 0.6, 1.5 and 0.8
respectively, the portfolio beta is:
1. 0.95
2. 0.59
3. 0.83
4. 0.92
3.33. Suppose the risk free rate is 8%, the expected return on the market is 16%. If a
particular stock has beta of 0.7, its expected return is:
1. 8.00%
2. 13.6%
3. 12.6%
4. 5.6%
3.34. A stock has an expected return of 13%. the risk free rate is 7% and the market
risk premium is 8%, the beta of this stock is:
1. 6.00%
2. 2.00
3. 0.75
4. 0.75%
3.35. A stock has an expected return of 17%, its beta is 5 and the risk free rate is 7%.
What must be expected return on the market?
1. 2.00%
2. 9.00%
3. 10.0%
4. 12.00%
3.36. A stock has an expected return of 22%, its beta is 1.6, and the expected return on
the market is 16%, the risk free rate must be:
1. 8.00%
2. 6.00%
3. 3.6%
4. 10.00%
3.37. Given the following information, use the coefficient of variance to determine which
asset is most risky:
Asset X Y Z

Expected return 10% 8% 16%

Standard deviation 14% 12% 20%

1. Asset X
2. Asset Y
3. Asset Z
4. Not enough information is given
3.38. Given the following probability distribution, what is the expected return?
Probability Outcome

0.2 10%

0.3 12%

0.4 14%

0.1 18%
1. 13.5%
2. 13.8%
3. 14%
4. None of the above
5. 13%
3.39. A firm with a beta value of ……… has a required rate of return of 15.5% if the
risk free rate is 8% and the market risk premium is 5%.
1. 1.5
2. -2.5
3. 2.5
4. 1.2
3.40. A firm with a beta value of 1.5 has a required rate of return of …… if the risk free
rate is 10% and the market rate of return is 15%
1. 10%
2. 15%
3. 17.5%
4. 22.5%
3.41. Security A and B have the expected return with the probability as the below table:
State of the economy Prob. of state of Return on A Return on B
economy

Boom 0.1 24% 16%

Growth 0.2 16% 20%

Normal 0.5 10% 4%

Recession 0.2 -4% 0%

 (a) What is the expected return on the stock A and B?
(b) What is the standard deviation of stock A and B?
(c) What is the expected return on a portfolio of A and B that is 20% invested in A
and the remainder in B?
(d) What is variance and standard deviation of portfolio that is 60% invested in A
and 40% in B?
3.42. Suppose we had the following investment:
Security Amount invested Expected return Std.
(million VND)

APB 4,800 8.00% 4.00%

BEA 9,600 10.00% 6.00%

CAD 7,200 12.00% 5.00%

SNA 2,400 16.00% 8.00%

(a) What is the portfolio weight?
(b) What is expected return on the portfolio?
3.43. A stock has a beta of 0.8 and an expected return of 13%. A risk free asset
currently earns 7%
(a) What is expected return on a portfolio that is equally invested in the two assets?
(b) Is a portfolio of the two assets has a beta of 0.6, what are the portfolio weights?

3.44. You own a portfolio equally invested in a risk free asset and two stocks. One of a
stock has a beta of 1.6 and the total portfolio is equally as risky as the market, what
must the beta be for the other stock in your portfolio?

CHAPTER 4: THE FINANCIAL STATEMENTS ANALYSIS

Which of the following is not a current assset? Fixtures
Current assets MINUS current liabilities is the => Net working capital
Current asset DIVIDED BY current liabilities is the => Current ratio
The quick ratio EXCLUDES which of the following => Inventory
Gross margin is addded to cost of sold goods to calculate: Revenue
4.16 ______ a snapshot of the financial condition of the firm at a particular time
The balance sheet provides
4.17 If the interest rate on debt is higher than BEP, then a firm will by increasing the use
of debt in the capital structure.
1. increase the ROE
2. not change the ROE
3. decrease the ROE
4. change the ROE in an indeterminable manner
5. none of the above
4.18 A measure of asset utilization is­­________
1. sales divided by working capital
2. return on total assets
3. return on eq uity capital
4. operating profit divided by sales
5. none of the above
4.19 Return on total assets is a function of ­_______
1. interest rates and pre-tax profits
2. the debt-equity ratio
3. the after-tax profit margin and the asset turnover ratio
4. sales and fixed assets
5. none of the above
4.20 Which of the financial statements recognizes only transactions in which cash
changes hands?
1. Balance Sheet
2. Income Statement
3. Statement of Cash Flows
4. A and B
5. A, B, and C
4.21 Common size financial statements make it easier to compare firms
1. of different sizes
2. in different industries
3. with different degree of leverage
4. that use different inventory valuation methods (FIFO vs. LIFO)
5. none of the above
4.22. ________is a measure of what the firm would have earned if it didn't have any
obligations to creditors or tax be authorities.
1. Net Sales
2. Operating Income
3. Net Income
4. Non-operating Income.
5. Earnings Before Interest and Taxes
4.23 A firm has a higher quick (or acid test) ratio than the industry average, which
implies.
1. The firm has a higher P/E ratio than other firms in the industry.
2. The firm is more likely to avoid insolvency in short run than other firms in the industry.
3. The firm may be less profitable than other firms in the industry.
4. A and B.
5. B and C.
4.24 A firm has a higher asset turnover ratio than the industry average, which implies
4. The firm is utilizing assets more efficiently than other firms in the industry.
4.25 A firm’s current ratio is above the industry average; however, the firm’s quick
ratio is below the industry average. These ratios suggest that the firm______
None of above
4.26 If cost of goods sold is VND 8,000 million, gross profit is VND 5,000 million the
revenue will be
13,000 VND
4.27 A firm has a P/E ratio of 12 and a ROE of 13% and a market to book value
of_____
ROE X P/E = A market to book value = 12 x 13% = 1.56
4.28 A firm has a (net profit/pre-tax profit ratio) of 0.625, a debt - equity ratio of 1.2, a
(pre-tax profit / EBIT) of 0.9, an ROE of 17.82%, a current ratio of 8, and a return on sales
ratio
of 8%. The firm's asset turnover is
D/E = 1,2 => A/e =11/5 = 2,2
ROE = ROS x asset turnover x equity
17,82% = 8% x asset turnover x 2,2
=> asset turnover = 1,0125 => none of the above
4.29 A firm has an BEP of 14%, a debt/equity ratio of 0.8, a tax rate of 35%, and the interest
rate on the debt is 10%. The firm's ROE is________
1. 11.18%
2. 8.97%
3. 11.54%
4. 12.62%
5. none of the above
4.30 Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of
15% during the same year. Both firms have a total debt ratio equal to 0.8. Firm A has an
asset
turnover ratio of 0.9, while firm B has an asset turnover ratio equal to 0.4. From this we
know that
Firm B has a higher profit margin than firm A
4.31 If a firm has VND 100 billion in inventories, a current ratio equal to 1.2, and a quick
ratio equal to 1.1, what is the firm's Net Working Capital?
1. VND 0 billion
2. VND 100 billion
3. VND 200 billion
4. VND 1,000 billion
5. VND 1,200 billion
4.32 Felton Farm Supplies, Inc., has an 8 percent return on total assets of VND 300,000
million and a net profit margin of 5 percent. What are its sales?
1. VND 3,750,000 million
2. VND 480,000 million
3. VND 300,000 million
4. VND 1,500,000 million
4.33 The manager of firm A gives you the following information: sales = VND 4.8 billion,
total debt = VND 1.5 billion, debt ratio = 40%, ROE = 18%. Using this information, calculate
ROA of firm A.
1. 10.8%
2. 12.2%
3.9.8%
4. 11.6%
4.34 Saunders Corp. has current liabilities of VND 435,000 million, a quick ratio of 0.95,
inventory turnover of 6.2, and a current ratio of 1.6. What is the cost of goods sold for the
company?
1. VND 696,000 million
2. VND 282,750 million
3. VND 457,890 million
4. VND 1,753,050 million
4.35 ABC Company has current liabilities of VND 15 billion. Cash makes up 10% of the
current assets and accounts receivable makes up another 40% of current assets. ABC'scurrent
ratio = 2.1 times. Calculate the value of inventory listed on the firm's balance sheet?
Current asset = Current ratio x current liabilites = 2,1 x 15 = 31,5
=> The value of inventory = 50% x 31,5 = 15,75 B
3. VND 15.75 billion
4.36 XYZ has current liabilities = VND 5 billion, current ratio = 2 times, inventory
turnover ratio = 8 times, DSO = 30 days, and sales = VND 42 billion, COGS = VND 32
billion. Calculate the value of cash and marketable securities.
1. VND 10 billion
2. VND 2.5 billion
3. VND 4 billion
4. VND 3.5 billion
4.37 Kanji Company had sales last year of VND 265 billion, including cash sales of
VND 25 billion. If its average collection period was 36 days, the ending accounts receivable
balance is.........
Receivalble turnover = 360/36 = 10
Credit sales = 265 – 25 = 240 => the ending accountss receive balance = 240/10 = 24 billion
For its most recent year a company had Sales (all on credit) of VND 830,000 million and
Cost of Goods Sold of VND 525,000 million. At the beginning of the year its Account
Receivables was VND 80,000 million and its Inventory was VND 100,000 million. At the
end of the year its Accounts Receivable was VND 86,000 million and its Inventory was VND
110,000 million.
4.38 The inventory turnover ratio for the year was
1. 4.8.
2. 5.0
3. 7.9
4. 6.7
4.39 The accounts receivable turnover ratio for the year was
1.6.3
2. 7.5
3. 10.0
4. 8.3
4.40 On average how many days of sales were in Accounts Receivable during the year?
1.27
2.36
3.49
4. 52
4.41 Boom Lay Corp. has a current accounts receivable balance of VND 327,815 million.
Credit sales for the year just ended were VND 4,238,720 million. What is the receivables
turnover? What is DSO? How long did it take on average for credit customers to pay off their
accounts during the past year?
DSO = 27,84
4.42 The Cape Corporation has inventory of VND 483,167 million, and cost of goods
sold for the year just was did a unit VND 4,285,131 million. What is the inventory turnover?
The
days' sales in inventory? How long on average inventory sit on the shelf before it was sold?
Inventory turnover = 8.87
Days sales in inventory = 40.6 days
4.43 The manager of firm A gives you the following information: total debt = VND 2.4
billion, debt ratio = 60%, ROE=18%. Using this information, calculate ROA of firm A.
ROA = 7.2%
4.44 You are thinking of investing in firm ABC. You have only the following information
on the firm at the end of year N: net income = VND 250 million, total debt = VND 2.2
billion, debt ratio = 55%. What is ABC's ROE for year N?
Net income = 250
Debt = 2200
Debt ratio = 55% => total asset = 4000 => equity = 1800 => ROE = 13.88%
4.45 Y3K, Inc., has total assets of VND 2,805 billion, and a debt-equity ratio of 1.40. If
its return on equity is 13 percent, what is its net income?
Debt/ E = 1,4 => Debt = 1,4E; D = A – E => 1,4E + E = A => 2,4E = 2805 => E = 1168,75
ROE = NI/E => NI = 13% x 1168,75 = 151,9375 billion
4.46 A company has net income of VND 179,000 million, a profit margin of 8.3 percent,
and an accounts receivable balance of VND 118,370 million. Assuming 70% of sales are on
credit, what is the company's days' sales in receivables?
Net income = 179000; profit margin = Net profit/ Sales = 8.3%
=> Sale = 2,156,626.506 => sale on credit = 1,509,638.554
=> Day’s sales in receivable = 360/ (1,509,638.554/118,370) = 28,22 days
4.47 Smolira Golf Corp. has 25,000 shares of common stock outstanding, net income of
VND 107,500 million and the market price for a share of stock at the end of year N was VND
43,000. What is the price-earnings ratio?
(P/E) = 43000/(107,500/25,000) = 10
4.49 For its most recent year a company had Sales (all on credit) of VND 900,000 and
Cost of Goods Sold of VND 760,000 million. At the beginning of the year its Account
Receivable was VND 84,000 million and its Inventory was VND 120,000 million. At the end
of the year its Accounts Receivable was VND 96,000 million and its Inventory was VND
146,000 million.
Calculate:
Sale on credit: 900,000; COGS: 760,000
a. The inventory turnover ratio for the year.
Inventory turnover: 760,000/133,000 = 5,714
b. The accounts receivable turnover ratio for the year.
AR turnover: 900,000/ 90,000 = 10
c. On average how many days of sales were in Accounts Receivable during the year?
AR days = 360/10 = 36
d. On average how many days of sales were in Inventory during the year?
Inventory days = 360/5.7 = 63.15
4.50 The manager of firm A gives you the following information: sales = VND 4.8
billion, total debt billion, debt ratio = 40%, ROS = 20%. Using this information, calculate
ROE of firm A.
ROE = 35,5%

CHƯƠNG 5
5.11 What problem happens in current assets if the current assets much more excessive
than the accounts payable?
1. Overtrading
2. Underinvestment
3. Lack of working capital
4. Overinvestment
5.12 Complete the following statement with appropriate words
[1] indicates whether or not a company has enough cash and cash equivalent to satisfy its
immediate liabilities. The ratio is found as [2]. For most of the businesses, this indicator
should be at least [3]
5.13 Indicate the likely impact of each of the following on a company's target cash
balance. Use the letter I to denote an increase and D to denote a decrease. Briefly
explain you reasoning in each case:
1. Commissions charged by brokers decrease
2. Interest rates paid on money market securities rise
3. The compensating balance requirement of a bank is raised
4. The firm's credit rating improves
5. The cost of borrowing increases
6. Direct fees for banking services are established
5.14 Which of the following activities increases the cash in balance:
1. A company receives a tax refund
2. A company purchases marketable securities
3. A company issues long-term debts
4. A company purchases fixed assets
5.15 If this year the ABC firm remains the ABC firm remains the same level of
sales as last year but give more credits to its customers, the accounts receivable period
this year would be
1. Shorter than last year
2. Equal to last year
3. Longer than last year
4. No change
5.16 Which of the following activities decreases the cash in balance:
1. A company sells short-term stocks
2. A company disposes of less effective non-current assets
3. A company pays insurance claim
4. A company reduces inventory
5.17 Which of the below activities affects the net working capital of a company this
year?
1. Using cash to pay out dividends for 1 million common shares; VND 2,000 per share
2. Using cash to pay off a purchase of raw materials at value VND 50 million
3. A customer pays VND 100 million from last year
4. Buying raw materials from a supplier with the one-year delay in payment. The purchase is
VND 200 million.
5.18 Complete the following statements with appropriate words
The cash flows from operating is the sum of [1] and [2]. When the sales increase, assuming
that other conditions kept unchanged, the cash flow from operating activities will [3].
5.19 Company ABC is a food manufacturer. Which of the following items is a
non-current asset when considering the financial position of ABC?
1. Short-term liabilities
2. Unfinished products
3. Trucks for delivery
4. Cash in banking deposit
5.20 If a company kept the depreciation expenses of a fixed asset constant during the
useful life that means:
1. The company applied the accelerated depreciation method for the fixed asset
2. The oil company employed the double-declining depreciation method for the fixed asset
3. The company used the straight-line depreciation method for the fixed asset
5.21 Please finish the table with the following information:
Criteria Value (days)
1. Raw material holding period in inventory 10
2. Average production period 45
3. Finished goods period 30
4. Inventory period [1]
5. Accounts payable period 45
 6. Accounts receivable period 60
7. Operating period [2]
1. 55 and 115
2. 75 and 90
3. 85 and 100
4. 85 and 130
5.22 Firm Z allows the customers pay their bills with 45-day delay. What proportion of
its sales will be paid for the current quarter and the next quarter respectively?
1. 1/3 and 2/3
2. 1/2 and 1/2
3. 1/4 and ¾
4. 2/3 and 1/3
5.23 Firm T receives 60% of quarterly sales in cash and the remaining after 1 month. If
the revenue of each quarter is 120 million VND, how much of cash Firm T will get next
quarter?
1. VND 72 million
2. VND 48 million
3. VND 120 million
4. VND 24 million
5.24 If the just-in-time delivery policy reduces the cost of ordering additional inventory
by a factor of 400. What will happen to the optimal ordered size using the EOQ model?
1. No change
2. Increase by 20 times
3. Decrease by 10 times
4. Increase by 10 times
5.25 Firm M has the annual demand for plastic bags in the quantity of 7,000 bags. The
cost of each order is VND 1.5 million; the carrying cost is VND 5,250/one bag. What is
the optimal quantity ordered using EOQ model:
1. 3,500 bags
2. 2,000 bags
3. 5,000 bags
4. 1,414 bags
5.26 In the following with the straight-line depreciation is the ratio between method, the
depreciation expenses is the ratio between:
1. (Acquisition cost- salvage value) and the total life of the asset
2. (Acquisition cost - interest payment) and the useful life of the asset
3. (Acquisition cost - salvage value) and the effective economic life of the asset
5.27 Firm L has the annual demand for carton boxes in the quantity of 8,000 boxes.
The cost of each order is VND 2.5 million; the carrying cost is VND 10,000/one box.
What is the total cost of inventory over a year in the following with EOQ?
1. VND 10 million
2. VND 20 million
3. VND 80 million
4. VND 100 million
5.28 Firm Z has the annual demand (in 365 days) for plastic bags in the stable quantity
of 7,000 bags. The cost of each order is 1.5 million VND; the carrying cost is 5,25
VND/one bag. If it takes 7.3 days for Firm Z to get the bags, at what level of inventory,
Firm Z should reorder?
1. 1,000 boxes
2. 2,000 boxes
3. 1,140 boxes
4. 140 boxes
5.29 If Firm X changes the depreciation from VND 500 million to VND 700 million and
other conditions are kept unchanged. How much is tax gain at the corporate income
tax 20%?
1. VND 100 million
2. VND 140 million
3. VND 240 million
4. VND 40 million
5.30. Which of the following will increase the operating cycle?
I. increasing the inventory turnover rate
II. increasing the payables period
III. decreasing the receivable turnover rate
IV. decreasing the inventory level
1. I only
2. III only
3. II and IV only
4. I and IV only
5. II and III only
5.31 Firm X uses up cash at the stable amount of VND on the short-term 1 billion per year.
The annual interest rate on the short-term securities is 8%. Each sale of short-term securities
costs VND 400,000.
(a) How many times should Firm X sell the securities a year?
(b) What is the average cash balance?
5.32 The CFO of Firm Y indicates that the optimal cash balance should be VND 250 million
in the following with the Baumol's model. The annual interest rate on the short-term
securities is 9%. The cost of one sale is VND 500,000. What is the annual cash outflow of the
Firm Y?
5.33 Zoje Inc. needs a total of VND 21,000 million in cash during the year for transactions
and other purposes. Whenever cash runs low, it sells VND 1,500 million in securities and
transfers the cash in. The interest rate is 4 percent per year, and selling securities costs VND
25,000 per sale.
(a) What is the opportunity cost under the current policy? The trading cost? With no
additional calculations, would you say that Debit and Credit keep too much or too little cash?
Explain.
(b) What is the target cash balance derived using the BAT model?
5.34 Firm T is planning its cash balance for the next year.
The daily cash use in three scenarios as below:
Scenarios Pessimistic Normal Optimistic br
(Prob. = 0.3) (Prob. = 0.5) (Prob.= 0.2)
Cash demand VND 400 million VND 500 million VND 700 million

Assume that Firm T cash flows follow the Miller --Orr's model. If the cost of each sale of
short-term securities is VND 1 million; the stated annual interest rate is 10%; the
lower bound is zero; please calculate the initial cash balance, the upper bound of Firm T's
cash flows, and the average cash balance.
5.35 If the Firm T sets up the lower limit of the cash flows at VND 2 million, please redo the
requirements in Question 5.34
5.36 VINASTAR is a giant in the Food and Beverage Industry. The annual sales of this
corporation are VND 1,200 billion. The collection takes 60 days on average, and the
opportunity cost of account receivables is 15%. Currently, VINASTAR allows the customers
1-month delay. If 3/10 net 30 replace the old credit policy, VINASTRAR estimates that 35%
customers will take advantage of the new policy. The receivable period becomes 30 days.
Should VINASTAR apply the new trade credit policy?
5.37 Firm T uses papers at the stable quantity of 1,000 sheets per year. The cost of each order
is VND 600,000. The cost of carrying is VND 30,000 per sheet. The unit price of paper is
VND 60,000. Currently, the quantity of each order is 200 sheets. The supplier offers a
discount at 5% on the total value of each order if Firm T increases ordering quantity to 500
sheets per time. Should Firm T change its ordering quantity?
5.38 The variance of the daily cash flows for the Coke Shop is VND 890,000,000. The
opportunity cost to the firm of holding cash is 4.1% per year. What should the targe level and
the upper limit be if the tolerable lower limit has been established as VND 160,000,000? The
fixed cost o buying and selling securities is VND 300,000 per transaction?
5.39 Firm X sells on 2/10. net 40. Firm Y orders raw materials of Firm X at the value of
VND (a) How much of money Firm Y has to pay to Firm X if
payment is on the Day 10?
(b) How many days firm Y can delay in payment to Firm X?
(c) What is the effective annual rate of Firm Y if Firm Y pays on the due date instead of the
Day 10?
5.40 NEWSTAR is a food processing company. It is famous for the canned food, sauces, and
ham. The financial manager of NEWSTAR predicts the financial position in the
year N as the following information.
Unit: Million VND
Categories Q4/N-1 Q1/N Q2/N Q3/N Q4/N
Sales 1,500 900 1,300 1,150 1,700
Purchases 900 720 910 748 1,250
Labour expenses 75 75 75 75 75
Capital expenditure - 150 15 40 55
Tax and interest - 40 50 45 55

This company now applies the customer credit policy with 80% order value paid immediately
and 20% in the next quarter. Due to its reputation, the suppliers allow 25% of the orders
being paid in the next quarter. The cash balance at the beginning of Q4/N-1 is VND 50
million; the minimum requirement of the cash is VND 100 million.
(a) Calculating the total collections in the year N
(b) Presenting the net cash flow and the cash balance of NEWSTAR
5.42 Firm ABC is considering the new trade credit policies. The sale of Firm ABC this year
is VND 150 billion. The current receivable period is 30 days. The unit price is VND 300,000;
the variable cost per unit is VND 240,000. The opportunity cost of investment in the increase
of account receivables is 35%. The information on the new trade credit policies as below:
(a) If not considering the loss due to defaults, which trade credit policy Firm ABC should
adopt?
(b) If considering the defaults loss, which trade credit policy should Firm ABC adopt?
5.43 Wheel Steel Inc. has a fixed cost associated with buying and selling marketable
securities of VND 400,000. The interest rate is currently 0.013 percent per day, and the firm
has estimated that the standard deviation of its daily net cash flows is VND 800,000.
Management has set a lower limit of VND 10,500,000 on cash holding. Calculate the target
cash balance and upper limit using the Miller-Orr model. Describe how the system will work.
5.45 Depreciation Computations
Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of VND 469
million. The asset is expected to have a service life of 12 years and a salvage value of VND
40 million.
(a) Compute the amount of depreciation for each of Years 1 through 3 using the straight-line
depreciation method.
(b) Compute the amount of depreciation for each of Years 1 through 3 using the
sum-of-the-years'-digits method.
5.46 Depreciation methods
ABC Inc. owns the following assets.
Asset Cost Salvage Estimated useful
life
A VND 70 million VND 7 million
B VND 50 million VND 5 million
C VND 82 million VND 4 million
Compute the composite depreciation rate of ABC's assets.
5.47 Straight line
XYZ Company purchased a computer for VND 80 million on January 1, 2015. Straight-line
depreciation is used, based on a 5-year life and a VND 10 million salvage value. In 2017,
the estimates are revised. XYZ now feels the computer will be used until December 31,
2018, when it can be sold for VND 5 million. Compute the 2017 depreciation.
5.48 A Units-of-production method (An activity approach)
AAA Corporation purchased a truck at the beginning of the year N for VND 50,000 million.
The truck is estimated to have a salvage value of VND 2,000 million and a useful life of
160,000
miles. It was driven 23,000 miles in the year N and 31,000 miles in the year N +1. Compute
depreciation expense for the year N and the year N +1.
5.49 Depreciation methods (Depreciation Computations)
BBB Corporation purchased a new machine for its assembly process on August 1, year N.
The cost of this machine was VND 117,900 million. The company estimated that the machine
would have a salvage value of VND 12,900 million at the end of its service life. Its life is
estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is
December 31.
Compute the depreciation expense under the following methods. Each of the following
should be considered unrelated.
(a) Straight-line depreciation for the year N
(b) Activity method for the year N, assuming that machine
usage was 800 hours
(c) Sum-of-the-years'-digits for the year N +1
5.50 Company A has purchased a new device producing electronic components with the
primary price of VND 100 million. The time of depreciation of fixed assets determined in
dmselitous beau accordance with the Regulatory is 5 years. Estimated salvage value is
approximately zero in 5 years. Determining the annual/ monthly rate of depreciation?

BÀI KIỂM TRA SỐ 1

1. A stakeholder is
A person who owns shares of stock
Any person or entity other than a stockholder who potentially has a claim on the cash flows
of a firm
A person who initially founded a firm and currently has management control over that firm
Any person who has voting rights based on stock ownership of a corporation
2. Happy Harry has just bought a scratch lottery ticket and won €10,000. He wants to
finance the future study of his newly born daughter and invests this money in a fund
with a maturity of 18 years offering a promising yearly return of 6%. What is the
amount available on the 18th birthday of his daughter?
€ 25,843
€ 30,255
€ 28,543
€ 30,9056
3. In 2 years you are to receive $10,000. If the interest rate were to suddenly decrease,
the present value of that future amount to you would
Rise
Remain unchanged
Fall
The correct answer cannot be determined without more information.
4. Mr. A borrows VND 5,000 million to buy a new house. He agrees to a repayment
schedule of 20 equal semiannual payments beginning one year from today. The current
loan rate is 8%, compounded semiannually. What is his semiannual payment?
376.91
745.15
509.26
367.91
5. Mrs. A and her husband are planning for their son's education. The son will start to
study abroad in 10 years. They have decided to deposit into a bank account an equal
amount of money each year over the next 10 years, starting one year from now. How
much will they have to deposit each year to have VND 5 billion in 10 years if the annual
interest rate is 8% per year?
VND 0.745 billion
VND 2.31 billion
VND 0.345 billion
VND 0.319 billion
6. The concept of compound interest refers to:
Earning a rate of interest of 10% or higher
Adding interest to the principal at the end of a specified period
Receiving interest more than once a year
Earning interest on a single deposit from more than one source
7. The agency problem will occur in a business if the goal of is not in line with .......
Employees, managers
Managers, the government
Managers, shareholders
Shareholders, the public
8. The effective rate of interest associated with a 6% nominal rate of return when
interest is compounded monthly is:
6.14%
6.41%
6.17%
6.09%
9. Working capital management:
Is concerned with having sufficient funds to operate the business on a daily basis
Ensure that long term debt is acquired at the lowest possible cost
Ensures that the dividends are paid to all stockholders on an annual basis
Ensures that sufficient equipment is available to produce the amount of product desired on a
daily basis
10. Which one of the following parties has ultimate control of a corporation?
Board of Director
Shareholder
Chairman of the Board
Chief executive of officer
11. Which one of the following is a capital budgeting decision?
Deciding how much inventory should kept on hand
Deciding whether or not to purchase a new machine for the production line
Determine how many shares of stock to issue
Deciding how to refinance a debt issue that is maturing
12. Which one of the following is a capital structure decision?
determining which one of two projects to accept
determining the amount of funds needed to finance customer purchases of a new product
determining how to allocate investment funds to multiple projects
determining how much debt should be assumed to fund a project
13. Which one of the following is a working capital management decision?
determining whether to pay cash for a purchase or use the credit offered by the supplier
determining the number of shares of stock to issue to fund an acquisition
determining whether or not a project should be accepted
A. determining the amount of equipment needed to complete a job
14. When considering a capital budgeting project the financial manager should consider
the:
I. Size of the project
II. Timing of the project's cash flow
III.. Risk associated with the project's cash flows
II and III only
I and III only
I, II and III
I only
15. Which form of business structure faces the greatest agency problems?
corporation
general partnership
limited liability
sole proprietorship
16. Which of the following is not one of a financial manager's primary activities?
The design and delivery of banking advice and products.
Management of the firm's asset structure
Managing the firm's financial structure
Financial analysis and planning
17. Why should financial managers strive to maximize the current value per share of the
existing stock?
doing so increases employee salaries
because this will increase the current dividends per share
because they have been hired to represent the interests of the current shareholders
because managers often receive shares of stock as part of their compensation
18. What are the ultimate goal of financial management?
Maximizing the sustainable growth of the corporation
Maximizing the sales for the shareholder
Maximizing the firm value for the shareholder
Maximizing the profit for the shareholders
19. You want to have $1 million in your savings account when you retire. You plan on
investing a single lump sum today to fund this goal. You are planning on investing in an
account which will pay 7.5 percent annual interest. Which of the following will reduce
the amount that you must deposit today if you are to have your desired $1 million on the
day you retire?
I. Invest in a different account paying a higher rate of interest.
II. Invest in a different account paying a lower rate of interest.
III. Retire later.
IV. Retire sooner.
I only
II and III only
II only
I and III only
20. You just received $225,000 from an insurance settlement. You have decided to set
this money aside and invest it for your retirement. Currently, your goal is to retire 25
years from today. How much more will you have in your account on the day you retire if
you can earn an average return of 10.5 percent rather than just 8 percent?
$1,050,423
$2,730,483
$1,818,342
$1,189,576
BÀI KIỂM TRA SỐ 2
1. An investor put 60% of his money into a risky asset offering a 10% return with a
standard deviation of returns of 8% and 40% in a risk-free asset offering 5% return.
What is the expected return of this portfolio?
9.2%
8%
7.5%
6.8%
2. A firm has a debt-equity ratio of 57 percent, a total asset turnover of 1.12, and a
profit margin of 4.9 percent. The total equity is $511,640. What is the amount of the .et
income?
$44,084
$47,601
$52,418
$35,143
3. A portfolio comprises two securities and the expected returns are 12% and 16%
respectively. Determine the expected rate of return of the portfolio if first security
constitutes 40% of total portfolio.
10.92%
11.04%
14.4%
10.29%
4. BBB company has a debt-equity ratio of 42 percent, sales of $749,000, net income of
$41,300, and total debt of $206,300. What is the return on equity?
8.41%
17.17%
8.41
17.17
5. BM has sales of 29 billion VND, total assets of 17.5 billion VND and the firm has a
total debt ratio of 36%. If the profit margin is 8%. What is ROE?
13.26
13.26%
20.71%
20.71
6. BM has sales of 29 billion VND, total equity of 11.2 billion VND and total debt of 6.3
billion VND. If the profit margin is 8%. What is ROA?
13.26
13.26%
20.71%
20.71
7. Expected rate of return is 20% and standard deviation is 15%. The coefficient of
variation will be:
0.75%
0.75
1.33%
1.33
8. If current asset is 191 billion VND; inventories are 91 billion VND and current
liabilities are 94 billion VND then quick ratio is:
1.98 times
1.98%
1.06 times
1.06%
9. If current asset is 192 billion VND; inventories are 91 billion VND and current
liabilities are 97 billion VND then current ratio is:
1.98 times
1.98%
1.04 times
1.04%
10. MM I company has $747,000 in sales. The profit margin is 4.1 percent and the firm
has 7,500 shares of stock outstanding. The market price per share is $22. What is the
price-earnings ratio?
5.39
8.98
11.42
13.15
11. Ratios that measure how efficiently a firm manages its assets and operations to
generate net income are referred to as ________ ratios.
asset management
long-term solvency
profitability
turnover
12. The risk - free rate of return is 3.9% and the market risk premium is 6.2%. What is
the required rate of return on a stock with a beta of 1.21?
10.92%
11.04%
11.4%
10.29%
13. The principle of diversification tells us that:
Concentrating an investment in two or three large stocks will eliminate all of unsystematic
risk.
Concentrating an investment in three companies all within the same industry will greatly
reduce the systematic risk.
Spreading an investment across many diverse assets will eliminate all the systematic risk
Spreading an investment across many diverse assets will eliminate some of the total risk
14. Total risk is measured by …….and systematic risk is measured by……..
Beta, alpha
Beta, standard deviation
Standard deviation, beta
Standard deviation, variance
15. ........... variability of return on stocks or portfolios associated with changes in return
on the market as a whole.
Systematic risk
Standard deviation
Unsystematic risk
Coefficient of variation
16. Which one of the following is a source of cash?
increase in accounts receivable
decrease in notes payable
acquisition of debt
payment to a supplier
17. Which one of the following is the formula that explains the relationship between the
expected return on a security and the level of that security's systematic risk?
Capital asset pricing model
Time value of money equation
Unsystematic risk equation
Market performance equation
18. Which one of the following is a use of cash:
increase in notes payable
decrease in inventory
decrease in common stock
decrease in accounts receivable
19. Your portfolio is comprised of 40% of stock X; 15% of stock Y and 45% of stock Z.
Stock X has beta of 1,16; stock Y has beta of 1,47 and stock Z has beta of 0,42. What is
the beta of your portfolio?
0.87
1.09
0.78
1.9
20. You would like to combine a risky stock with a beta of 1,68 with the Government
bond in such a way that the risk level of the portfolio is equivalent to the risk level of the
overall market. What percentage of the portfolio should be invested in the risky stock?
32%
40%
60%
54%
ĐỀ KIỂM TRA SỐ 3
1. A stakeholder is
A person who initially founded a firm and currently has management control over that firm
A person who owns shares of stock
Any person or entity other than a stockholder who potentially has a claim on the cash flows
of a firm
Any person who has voting rights based on stock ownership of a corporation
2. A&A has beginning inventory of VND 407 billion, ending inventory of VND 503
billion and cost of good sold for the year is VND 4,105 billion. What is the inventory
turnover?
9.2 times
9.02
9.2
9,02 times
3. A statistical measure of the degree to which two variables (e.g., securities' returns)
move together
Beta
Covariance
Variance
Coefficient of variation
4. Assume you deposit VND 500 million at the end 6. of each year for five years in a
saving account. If the annual compound interest rate is 10%, how much money will you
have in five years?
VND 3,352.55 million
VND 3,252.55 million
VND 3,052.55 million
VND 3,152.55 million
5. A&B stock has a beta of 1.09. The risk - free rate of return is 2.75% and the market
rate of return is 9.8%. What is the risk premium on this stock?
7.68%
6.47%
7.88%
7.03%
6. A portfolio comprises two securities and the expected returns are 20% and 26%
respectively. Determine the expected rate of return of the portfolio if first security
constitutes 60% of total portfolio.
22.4%
22.4
24.4%
23.4%
7. BM has sales of VND 29 billion, total assets of VND 17.5 billion and total debts of
VND 6.3 billion. If the net profit margin is 8%. What is ROA?
20.71
20.71%
13.26
13.26%
8. BM has beginning working capital of VND 607 billion, ending working capital of
VND 503 billion and net sale for the year is VND 4,105 billion. What is the working
capital turnover?
9.2
9.2 times
7.40 times
7.4
9. Blue Moon Corporation has a net profit margin of 6.8%, total asset turnover of 1.95
and ROE of 18.27%. What is Blue Moon's equity multiplier?
1.38
1.38%
1.83%
1.83
10. GLK company purchases the machine of VND 1,800 million. Straight-line
depreciation method is used, based on a 12-year life. The machine's depreciation each
year is:
VND 140 million
VND 150 million
VND 120 million.
VND 180 million
11. Happy Harry has just bought a scratch lottery ticket and won €10,000. He wants to
finance the future study of his newly born daughter and invests this money in a fund
with a maturity of 18 years offering a promising yearly return of 6%. What is the
amount available on the 18th birthday of his daughter?
€ 25,843
€ 28,543
€ 30,9056
€ 30,255
12. If current asset is VND 191 billion; inventories are VND 91 billion and current
liabilities are VND 94 billion then quick ratio is:
1.06 times
1.98%
1.98 times
1.06%
13. If current asset is VND 192 billion; inventories are VND 91 billion and current
liabilities are VND 97 billion then current ratio is:
1.04 times
1.98 times
1.98%
1.04%
14. Mrs. A and her husband are planning for their son's education. The son will start to
study abroad in 10 years. They have decided to deposit into a bank account an equal
amount of money each year over the next 10 years, starting one year from now. How
much will they have to deposit each year to have VND 5 billion in 10 years if the annual
interest rate is 8% per year?
VND 0.319 billion
VND 0.345 billion
VND 2.31 billion
VND 0.745 billion
15. Suppose you borrows VND 2,000 million. You are going to repay the loan by making
equal annual payments at the end of the year for five years. If the interest rate of the
loan is 13% per year, how much money will you have to pay each year for this loan?
VND 568.63 million
VND 578.63 million
VND 668.63 million
VND 588.63 million
16. The effective rate of interest associated with a 6% nominal rate of return when
interest is compounded monthly is:
6.14%
6.41%
6.09%
6.17%
17. The agency problem will occur in a business if the goal of is not in line with .......
Employees, managers
Managers, the government
Managers, shareholders
Shareholders, the public
18. The relationship between ......and.......is described by the security market line
Expected return, systematic risk
Total return, systematic risk
Total return, unsystematic risk
Expected return, unsystematic risk
19. The greater the beta, the..........of the security involved
Less the unavoidable risk
Greater the unavoidable risk
Less the avoidable risk
Greater the avoidable risk
20. The expected return on a stock given various states of the economy is equal to the
Highest expected return given any economic state
Arithmetic average of the returns for each economic state
Weighted average of the returns for each economic state.
Summation of the individual expected rates of return
21. The risk - free rate of return is 6% and the market risk premium is 6%. What is the
required rate of return on a stock with a beta of 1.5?
6%
15
6
15%
22. Working capital management:
Is concerned with having sufficient funds to operate the business on a daily basis
Ensures that the dividends are paid to all stockholders on an annual basis
Ensures that sufficient equipment is available to produce the amount of product desired on a
daily basis
Ensure that long term debt is acquired at the lowest possible cost
23. Which one of the following is a capital structure decision?
determining how much debt should be assumed to fund a project
determining which one of two projects to accept
determining how to allocate investment funds to multiple projects
determining the amount of funds needed to finance customer purchases of a new product
24. Which one of the following is a capital budgeting decision?
Deciding whether or not to purchase a new machine for the production line
Determine how many shares of stock to issue
Deciding how to refinance a debt issue that is maturing
Deciding how much inventory should kept on hand
25. Which one of the following increases cash?
making a payment on a bank loan
purchasing new machinery
granting credit to a customer
accepting credit from a supplier
26. What are the ultimate goal of financial management?
Maximizing the firm value for the shareholder
Maximizing the sustainable growth of the corporation
Maximizing the sales for the shareholder
Maximizing the profit for the shareholders
27. Which of the following will increase the cash cycle, all else constant?
I. increasing the inventory period
II. decreasing the accounts receivable turnover rate
III. increasing the accounts payable period
IV. decreasing the accounts receivable period
I, II, and III only
III and IV only
I and II only
I and IV only
28. Which of the following are uses of cash?
I. collecting a receivable
II. increasing inventory
III. obtaining a bank loan
IV. paying a supplier for previous purchases
I and III only
I, II, and IV only
II and IV only
I and II only
29. When considering a capital budgeting project the financial manager should consider
the:
I. Size of the project
II. Timing of the project's cash flow
III.. Risk associated with the project's cash flows
I only
II and III only
I, II and III
I and III only
30. You recently purchased a stock which is expected to earn 22% in a booming
economy; 9% in normal economy, and lose 33% in recessionary economy. There is a 5%
probability of a boom, a 75% chance of a normal economy and 20% probability of a
recessionary economy. What is your expected rate of return on this stock?
-1.25%
-2.6%
1.25%
-3.4%