# There are 24 t/f and multiple choice questions of corporate finance.

There are 24 T/F and Multiple Choice Questions of Corporate Finance.
Which could not find online, so I need professional to finish them
Such as:
1. Sensitivity and scenario analysis aid the capital budgeting decision process by changing the underlying assumptions on which the decision is based.
2. In the accounting break-even the EAC is used to allocate the initial investment at its opportunity cost over the life of the project.
Read the questions (TF and Multiple Choice Questions.docx) first, before you bid.
Make sure you have confidence to do it well.
if the grade is lower than 70%, I will ask for refund.

Question 1
Sensitivity and scenario analysis aid the capital budgeting decision process by changing the underlying assumptions on which the decision is based.
True
False

1 points
Question 2
In the accounting break-even the EAC is used to allocate the initial investment at its opportunity cost over the life of the project.
True
False

1 points
Question 3
The slope of the capital market line is the equilibrium price of risk in terms of expected return, (E(RM) – RF) / σM .
True
False

1 points
Question 4
The two-fund separation in the CAPM equilibrium means that every investor holds a combination of the well-diversified market portfolio and the risk-free asset.
True
False

1 points
Question 5
The SML is a graphical presentation of the relationship between a security’s expected return and its beta.
True
False

1 points
Question 6
If other things remain the same, the higher the standard deviation, the lower the beta of a security.
True
False

1 points
Question 7
The beta of a security is estimated as the slope of the regression equation, where the dependent variable (vertical axis) is the (excess) return on the security and the independent variable (horizontal axis) is the (excess) return on the market portfolio.
True
False

1 points
Question 8
If a security is above the SML, a mean-variance investor would sell the security because it is overvalued.
True
False

1 points
Question 9
The cost of debt of a firm is equal to one plus the marginal corporate tax rate (1 + TC) multiplied by the yield to maturity of its outstanding debt.
True
False

1 points
Question 10
True
False

1 points
Question 11
One method of estimating the growth rate of a company is to use the retention growth model, where the growth rate (=g) is estimated as the ROE multiplied by the plowback ratio.
True
False

1 points
Question 12
The financial leverage is the extent to which fixed-income securities are used in a firm’s capital structure.
True
False

1 points
Question 13
As the debt ratio of a firm increases, its equity beta increases because of the added financial risk.
True
False

1 points
Question 14
MM’s proposition I under no taxes implies that the cost of equity of a firm remains the same as the firm uses more debt because of the no-tax assumption.
True
False

1 points
Question 15
MM’s proposition I under no taxes implies that an issue of debt increases both the expected earnings per share (EPS) and the risk of the EPS. As a result, the stock price remains the same.
True
False

1 points
Question 16
_____ evaluates the NPV of a project with respect to changes in one variable while holding others constant.

Sensitivity analysis
Scenario analysis
Simulation
Mean Variance model

1 points
Question 17
The present value (PV) break-even point is better than the accounting break-even point because

PV break-even point is the same as the sensitivity analysis.
PV break-even point covers the economic opportunity costs of the investment.
PV break-even point covers the fixed costs of production, which the accounting break-point does not.
PV break-even point covers the variable costs of production, which the accounting break-even point does not.

1 points
Question 18
An investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Market Line has to

lend some of her money at the risk-free rate and invest the rest in the optimal risky portfolio.
borrow some money at the risk-free rate and invest it in the optimal risky portfolio
invest only in the risky securities.
hold a portfolio which is not diversified.

1 points
Question 19
If other things remain the same, diversification is more effective when

securities returns are positively correlated.
securities returns are uncorrelated.
securities returns are negatively correlated.
securities returns are high.

1 points
Question 20
A measure of how much the returns of two risky assets move together is

variance
standard deviation
covariance
semi-variance

1 points
Question 21
The optimal risky portfolio can be identified by finding ______ .

the minimum variance point on the efficient frontier
the maximum return point on the efficient frontier
the tangency point of the capital market line and the efficient frontier
none of the above answers is correct.

1 points
Question 22
Which one of the following is not a determinant of beta of the equity of a company?

cyclicality of revenues
operating leverage
financial leverage
All of the above are determinants of beta.

1 points
Question 23
When the SML is written in the following form, the second tem (underlined) in the equation represents ______________:
RS,L = RF + βS,U (RM – RF) + βS,U (B/S) (RM – RF)

1 points
Question 24
When we consider the corporate taxes, the value of a levered firm can be shown as the next equation: VL = VU + tc B.
The last tem (=tc B) in the equation above represents _______.

present value of taxes
present value of tax shields
present value of financial risk premium
present value of bankruptcy costs

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.