chapter 1. corporate finance, ownership structure, and corporate governance
section 1 introduction随堂测验
1、which of the following statement is false? a、financial policy is determined by managers. b、financial policy is determined by the board of directors and management authorities. c、the financial policy should be carried out by managers. d、having a clear and stable financial policy is of great importance to a modern company.
2、which of the following statement is false? a、the business environment is more complicated than ever. b、the financial policy is just a conceptual framework that makes no sense for the corporate. c、the cost of capital is a basic concept for modern corporate finance. d、the board of directors and management authorities should take the basic theory of financial management, financial rules, the development strategy of the corporate and the business environment into consideration when making finance policy.
3、survey research is the only method for finance academics to solve corporate problems.
1、what is the most optimal corporate finance? a、aiming for the maximization of shareholder wealth. b、aiming for the maximization of the stock price. c、aiming for the maximization of social welfare. d、aiming for the maximization of the assets.
2、which of the following statement is false? a、the determining right of the financial policy is the board of directors and senior management. b、optimal corporate finance is rational and planning corporate finance, which is embodied in a set of scientific, reasonable, and stable financial policies. c、only when the actual rate of return equals the required rate of return can we say the maximization of shareholder wealth has realized. d、financial policy is the reflection of the financial will of the board of directors.
3、which of the following are the contents of a financial policy? a、cost of capital estimation policy. b、dividend payout ratio policy. c、“zero” working capital policy. d、ipo policy.
1、based on the maximization of shareholder wealth, which of the following statement is false? a、only when the discount rate equals the project’s risk-adjusted cost of capital can we accept the project investment opportunity. b、for the realization of the optimal capital budget, the marginal cost of capital should equal the marginal investment efficiency. c、the optimal capital structure is one that minimizes the firm’s cost of equity capital. d、the board of directors and management should and also have the obligation to arrange the amount and the structure of financing through scientific methods and reasonable ways.
2、which financial policy is anchored by the cost of capital? a、capital investment performance evaluation policy. b、publicly policy. c、dividend payout amount policy. d、capital investment project classification policy.
3、a modern company should try to minimize its cost of capital which is a balance between debt and equity, and it can achieve value maximization hereafter.
section 3.1 fundamental theories of corporate financial policy analysis (1)随堂测验
1、the list of corporate scandals seems to go on forever: sunbeam, enron, imclone, worldcom, tyco, adelphia … although details vary from company to company, the common themes always have some relationship with the manager and shareholder, especially their conflicts. which financial theory can we use when analyzing these issues? a、tax hypothesis b、life-cycle theory c、signaling hypothesis d、agency conflict-free cash flow hypothesis
2、which are the fundamental theories we can use in corporate financial policy analysis? a、agency conflict-free cash flow hypothesis b、information asymmetry c、life-cycle theory d、capital structure hypothesis
3、according to the tax hypothesis, a company should consider the corporate tax rate. as for the individual tax rate, the company doesn’t need to care.
section 3.2 fundamental theories of corporate financial policy analysis (2)随堂测验
1、if a company is considering a stock repurchase policy, which financial theory can we use when analyzing this company? a、tax hypothesis. b、life-cycle theory. c、capital structure hypothesis. d、industry convention hypothesis.
2、which of the following is not the reason for the development of behavioral corporate finance? a、target deviation. b、market inefficiency. c、scientific defects in management methods and procedures. d、managers rationality.
3、which of the following cases is not an illustration of behavioral corporate finance? a、managers are more concerned about the company size and some related party’s interests. b、the cost of capital is determined by easy methods by the boards of directors and managers. c、managers need to change the dividend policy in time to realize the maximization of shareholder wealth, and they don’t need to care about dividend stability. d、managers will consider the financial flexibility when determining the optimal capital structure.
section 4.1 corporate governance and corporate finance (1)随堂测验
1、which is not the basic issue of corporate governance? a、board of directors b、controlling shareholder and ownership structure c、social welfare d、executive compensation system
2、which are the components of the external corporate governance policy? a、government regulations b、demand for and assessment of performance information c、debt covenants d、managerial labor market
3、corporate governance aims to better understand the shareholders’ investment requirement, protect the safety of shareholder wealth and maximize the shareholder wealth. and corporate governance is no different from corporate finance.
section 4.2 corporate governance and corporate finance (2)随堂测验
1、according to lls(1999), which of the following statement is false? a、a modest concentration of ownership exists even among the largest american firms. b、having large shareholders is not a common phenomenon and large shareholders are always negative in corporate governance. c、large shareholders have control rights in firms in excess of their cash flow rights, largely through the use of pyramids, but they also participate in management. d、the occasions of large shareholders vary from country and region.
2、which types can be the large (ultimate) owners? a、family. b、a widely held financial institution such as a bank or an insurance company. c、miscellaneous, such as a cooperative, a voting trust, or a group with no single controlling investor. d、a widely held corporation.
3、finance theory generally identifies the primary goal of management as maximizing shareholder wealth or maximizing the value of the firm.
test for chapter 1
1、concerning the characteristics of shareholder heterogeneity, which of the following is false? a、shareholders have different requirements for corporate governance. b、shareholders have different preferences on the age of the chief executive officer. c、shareholders have different required returns on the corporate. d、shareholders have different expectations on the corporate.
2、which of the following statement is false about the finance policy? a、having a clear and stable financial policy is of great importance to a modern company. b、financial policy is determined by the board of directors and management authorities. c、the determining right of the financial policy is senior managers. d、finance policy can guide and restrict corporate behaviors.
3、which of the following statement is false about the optimal finance policy? a、optimal corporate finance could achieve the financial goal of maximizing the wealth of shareholders under the premise of corporate long-term sustainable development. b、optimal corporate finance is rational and planning corporate finance, which is embodied in a set of scientific, reasonable, and stable financial theories. c、optimal corporate finance can organically combine the corporate philosophy, corporate governance and management behavior, which can build up first-class corporate competitive ability. d、optimal finance policy needs to achieve the optimal capital structure, which has the lowest cost of equity capital.
4、which of the following statement is false about the large shareholders? a、lls (1999) finds that even among the largest american firms, there is a modest concentration of ownership. b、lls (1999) suggests that in many countries large corporations have large shareholders and, further, that these shareholders are active in corporate governance. c、lls (1999) finds that in different countries and different regions, the type of large shareholders has no difference. d、large shareholders can be a family or an individual, the state, a widely held financial institution such as a bank or an insurance company, a widely held corporation, or miscellaneous such as a cooperative, a voting trust, or a group with no single controlling investor.
5、what is the financial objective of the corporates? a、maximization of shareholder wealth. b、maximization of the stock price. c、maximization of social welfare. d、minimization of the accruals.
6、what are the important characteristics of finance policy? a、purposeful. b、industrial. c、timely. d、conventionally. e、invariable. f、unstable.
7、what are the three significant finance policies to corporate? a、cost of capital estimation policy. b、capital budgeting policy. c、financing policy d、dividend policy e、working capital policy f、financial risks control policy
8、what are the characteristics of finance policy under the cost of equity anchoring effect? a、have a specific tendency to estimate techniques of cost of capital. b、have measurable goals on the maximization of shareholders' wealth. c、have a harmonious investor relationship and specific debt-to-equity ratio which is agreed by investors. d、have specific hurdle rate on investment projects. e、have proper dividend payout plans which trade off the required return and corporate long-term development. f、have a clear understanding on the external effect of the cost of capital.
9、what are the fundamental theories of corporate financial policy analysis? a、agency conflict-free cash flow hypothesis b、information asymmetry c、signaling hypothesis d、capital structure hypothesis e、industry convention hypothesis f、behavioral hypothesis
10、which are the components of the external corporate governance policy? a、government regulations b、demand for and assessment of performance information c、debt covenants d、competition e、media pressure f、managerial labor market
chapter 2. cost of capital
section 1 cost of capital: the first concept in corporate finance随堂测验
1、which of the following item has the cost of capital? a、accruals b、debt c、deferred taxes d、accounts payable
2、“capital” refers to the sources of funding that come from ____. a、investors b、suppliers c、manufacturers d、all of the above
3、cost of capital is the ____? a、actual cost b、sunk cost c、historical cost d、opportunity cost
section 2.1 estimation of cost of capital (1)随堂测验
1、calculating the firm’s wacc, we should use ____ to calculate the weights of debt and equity. a、book value b、liquidation value c、market value d、investment value
2、the cost of debt can be measured by the ____ of a bond. a、coupon rate b、expected yield c、market rate d、yield to maturity
3、in the context of the capital asset pricing model, the relevant measure of risk is ____. a、unique risk b、systematic risk c、specific risk d、reinvestment risk
section 2.2 estimation of cost of capital (2)随堂测验
1、which of the following method is feasible for estimating the growth rate “g” in gordon model? a、use the historical growth rate. b、use the growth rate forecasted by analysts. c、use the earnings retention growth model. d、all of the above
2、which of the following is the correct form of gordon model? a、r=d0/p0 g b、r=d1/p0 g c、r=d0(1 g)/p1 g d、r=d1(1 g)/p0 g
3、compared with the capm, which of the following are the new factors added to the fama-french three-factor model? a、risk premium b、smb c、hml d、rmw
section 3.1 application of cost of capital (1)随堂测验
1、which of the following is the application of cost of capital？ a、as the benchmark for compensation plans b、determining the target capital structure c、as the hurdle rate in evaluating capital budgeting projects d、all of the above
2、which of the following does not need to be considered when using capm to estimate the cost of equity? a、risk-free rate b、beta factor c、market-risk premium d、inflation rate
3、the after-tax cost of debt is predominantly based on marginal pretax costs, and marginal or statutory tax rates.
section 3.2 application of cost of capital (2)随堂测验
1、in estimating the weighted average cost of capital, it is best to use the ____. a、target capital structure weights b、current market-value weights c、book-value weights d、some other weighting scheme
2、most survey researches found that there is no discount-rate differences on foreign and domestic projects.
3、finance theory suggests that firms using long-term debt as a future source of financing should identify and use the pre-tax cost of that debt in calculating wacc.
section 3.3 application of cost of capital (3)随堂测验
1、regarding the hurdle rates, finance theory suggests that firms use ____. a、one rate for all projects b、risk-adjusted discount rates c、risk-free rate d、indifference
2、finance theory suggests that for large publicly traded firms, stockholders should diversify their portfolios, eliminating diversifiable risk and leaving only systematic risk in their portfolios.
3、firms considering projects on an annual basis, semiannual basis, or quarterly basis should estimate their cost of capital annually, semiannually, or quarterly to match the length of time between project-evaluating episodes.
chapter 2. cost of capital
1、（此测试仅作为巩固练习，不计入期末成绩） which of the following item has the cost of capital? a、accruals b、debt c、deferred taxes d、accounts payable
2、cost of capital is the ____? a、actual cost b、sunk cost c、historical cost d、opportunity cost
3、the cost of debt can be measured by the ____ of a bond. a、coupon rate b、expected yield c、market rate d、yield to maturity
4、which of the following is the application of cost of capital？ a、as the benchmark for compensation plans b、determining the target capital structure c、as the hurdle rate in evaluating capital budgeting projects d、all of the above
5、which of the following method is feasible for estimating the growth rate “g” in gordon model? a、use the historical growth rate. b、use the growth rate forecasted by analysts. c、use the earnings retention growth model. d、all of the above
6、which of the following statements about the cost of capital are true? a、cost of capital is the opportunity cost. b、cost of capital is the actual cost paid by a firm to raise funds. c、cost of capital represents the degree of perceived risk. d、cost of capital is the return expected by investors who provide capital for a business. e、calculating the firm’s wacc, we should use book value to calculate the weights of debt and equity. f、we should use the wacc to evaluate all potential investment projects.
7、the cost of capital is central to modern finance touching on ____. a、investment decisions b、measures of economic profit c、divestment decisions d、performance appraisal e、incentive systems f、none
8、external factors that affect the cost of capital include ____. a、market interest rates b、tax rates c、underwriting costs d、risk e、capital structure f、investment policy
9、compared with the capm, which of the following are the new factors added to the fama-french three-factor model? a、risk premium b、smb c、hml d、rmw e、cma f、momentum
10、which of the following item does not have the cost of capital? a、accruals b、debt c、deferred taxes d、accounts payable e、common stock f、preferred stock
test for chapter 2
1、which of the following item has the cost of a、accruals3333 b、debt c、deferred taxes d、accounts payable
2、suppose we are given the following information about security i. the market rate and the risk-free rate is 10%, 6%, respectively. beta is 1.2. according to the capital asset pricing model, the expected rate of return on security i is ____. a、18 b、10.8 c、12 d、16
3、firm abc has a target capital structure of 40% debt and 60% equity. the yield to maturity on the company’s outstanding bonds is 9%, and the company’s tax rate is 40%. abc’s cfo has calculated the company’s wacc as 9.96%. the company’s cost of equity capital is ____. a、0.96% b、10.6% c、13% d、14.2%
4、regarding the hurdle rates, finance theory suggests that firms use ____. a、one rate for all projects b、risk-adjusted discount rates c、risk-free rate d、indifference
5、which of the following method is feasible for estimating the growth rate “g” in gordon model? a、use the historical growth rate. b、use the growth rate forecasted by analysts. c、use the earnings retention growth model. d、all of the above
6、which of the following statements about the cost of capital are true? a、cost of capital is the opportunity cost. b、cost of capital is the actual cost paid by a firm to raise funds. c、cost of capital represents the degree of perceived risk. d、cost of capital is the return expected by investors who provide capital for a business. e、calculating the firm’s wacc, we should use book value to calculate the weights of debt and equity. f、we should use the wacc to evaluate all potential investment projects.
7、when we calculate the cost of ____, we should take floatation costs into account. a、common stock b、preferred stock c、retained earnings d、bond e、loan f、deferred taxes
8、external factors that affect the cost of capital include ____. a、market interest rates b、tax rates c、underwriting costs d、risk e、capital structure f、investment policy
9、compared with the capm, which of the following are the new factors added to the fama-french three-factor model? a、risk premium b、smb c、hml d、rmw e、cma f、momentum
10、which of the following item does not have the cost of capital? a、accruals b、debt c、deferred taxes d、accounts payable e、common stock f、preferred stock
chapter 3. capital budgeting
section 1 introduction to capital budgeting随堂测验
1、which step is false when making capital budgeting decisions? a、generate investment proposals consistent with the firm’s strategic objectives. b、estimate incremental cash flows for the projects. c、determine the required rate of return for the company, which is the cost of equity capital. d、select projects based on a value-maximizing acceptance criterion.
2、which types of projects should we consider when making capital budgeting? a、replacement needed to continue profitable operations. b、replacement to reduce costs. c、expansion into new products or markets. d、safety and/or environmental projects.
3、the cash in the company can invest into the real asset by the firm or pay dividends to shareholders so that they can invest financial assets by themselves.
section 2 hurdle rate随堂测验
1、which is not the synonyms of the hurdle rate? a、project’s cost of capital. b、the required rate of shareholders. c、risk-adjusted discount rate. d、cut-off rate.
2、which of the following statement is false? a、if a new project being considered is riskier than the average project of the firm, the cost of capital of the new project is less than the average cost of capital. b、finance literature suggests using a risk-adjusted discount rate(radr) or hurdle rate when evaluating projects that alter the risk of the firm. c、hurdle rates are minimum rates of return firms require on projects in order to adopt the projects. d、the rate is determined by management ignores the fact that management may employ the wacc or other return in making that determination.
3、from the research shown in the video, what is the quantity relationship between hurdle rate and wacc in practice? a、hurdle rate>wacc b、hurdle rate=wacc c、hurdle rate d、there is no fixed relationship between hurdle rate and wacc.
section 3 methods of capital budgeting随堂测验
1、which method does not belong to the discount cash flow methods? a、net present value. b、internal rate of return. c、discounted payback period. d、profitability index.
2、which of the following four independent projects should be accepted? a、payback period overs the minimum acceptance criteria. b、internal rate of return overs the cut-off rate. c、the profitability index equals the hurdle rate. d、net present value overs the cut-off rate.
3、which of the following statements is false when choosing the appropriate technique? a、if projects are independent and not subject to capital rationing, we can evaluate them and determine the ones that maximize wealth based on any of the discounted cash flow techniques. b、if the projects are mutually exclusive, have the same investment outlay, and have the same risk, we must use only the npv or the mirr techniques to determine the projects that maximize wealth. c、if projects are mutually exclusive and are of different risks or are of different scales, mirr is preferred over npv. d、to make decisions under capital rationing, most firms rank projects according to irr or pi and select the combination that maximizes npv.
section 4.1 practice of capital budgeting (1)随堂测验
1、which of the following conclusion is false from the survey research findings? a、there is increased use of more sophisticated capital budgeting techniques. b、most financial managers use more than one technique to evaluate the same projects. c、the most commonly used method is the net present value method. d、evidence shows that the hurdle rate firms use is higher than most the capital techniques suggest.
2、according to the survey research, which of the following statement is true? a、miller (1960) finds that the net present value method was the most popular capital budgeting method in the 1960s. b、burns and walker (1997) show that half corporate use more than four methods to evaluate projects. c、graham and harvey (2001) contend that most corporates use the profitability index method to evaluate projects. d、according to graham and harvey (2001), small firms, firms with ceos without mba degrees, firms with ceos over age 59, and firms with long-tenured ceos are more likely to use the payback period method.
3、according to the survey of indian corporates, which of the following is not the reason to use the payback period method? a、easy to explain to top managers. b、simplicity leading to less time and cost involved. c、most scientific method and applies to the discounted cash flow method. d、obsolescence due to technological developments.
section 4.2 practice of capital budgeting (2)随堂测验
1、which of the following statement is false in terms of the survey research about the project evaluation method? a、before 1966, most american corporates use the payback period method and accounting rate of return method to evaluate projects. b、in the early 1970s, american corporates began to use discounted cash flow methods. c、in the early 1980s, the profitability index method had been widely used in american corporates. d、in the early 1980s, the internal rate of return method had been a primary method for multinational firms.
2、which of the following statement is false about risk assessment and adjustment? a、as time goes by, more and more corporates begin to consider project risk in capital budgeting projects. b、american corporates always use the payback period method to evaluate project risk. c、gitman and vandenberg (2000) find that project size, the relationship of project returns to the firm’s other projects, and the project’s payback period remain the most important factors in assessing project risk. d、for most american corporates, regardless of the study year, adjusting the discount rate is the most common or one of the most common methods for adjusting for project risk in the evaluation process.
3、what can be the reasons for capital rationing from the american corporates? a、debt limit imposed by the outside agreement. b、debt limit imposed by external management. c、restriction-related to dividend payments. d、maintain a target eps or p/e
test for chapter 3
1、which of the following concepts is false? a、capital refers to short-term assets used in production. b、a budget refers to a plan that outlines projected expenditures during a future period. c、the capital budget is a summary of a planned investment of assets that will last for more than a year. d、capital budgeting refers to the whole process of evaluating and analyzing projects and deciding which ones to include in the capital budget.
2、capital budgeting decisions are based on: a、incremental cash flows b、incremental profit c、incremental assets d、decremental assets
3、which of the following is true for a capital budgeting decision? a、the payback period method measures true profitability. b、the internal rate of return method is also known as the adjusted rate of return. c、capital budgeting and capital rationing are the same. d、the rate of return method takes into account the time value of money.
4、which of the following method of capital budgeting does not take into account the profit of the entire life of the project? a、payback period method. b、accounting rate of return method. c、net present value method. d、profitability index method.
5、assume that gerhardt corporation is considering an investment of $50 million in a capital project that will return after-tax cash flows of $16 million per year for the next four years plus another $20 million in year 5. the required rate of return is 10 percent. the net value of the project is: a、$13.136 million. b、$12.147 million. c、$63.136 million. d、$62.147 million.
6、of the following decisions, capital budgeting techniques would likely be used in evaluating the ( ) a、acquisition of new aircraft by a cargo company. b、design and implementation of a major advertising program. c、trade for a star quarterback by a football team. d、adoption of a new method of allocating nontraceable costs to product lines. e、merge another company. f、invest in an environmental project.
7、what are the advantages of the use of the payback period method for capital budgeting? a、easy to explain to top managers. b、simplicity leading to less time and cost involved. c、most scientific method and applies to the discounted cash flow method. d、obsolescence due to technological developments. e、more liquid projects are rated higher. f、cash flows after the payback period are considered.
8、cora lewis is performing an analysis to determine if her firm should invest in new equipment to produce a product recently developed by her firm. the option would be to abandon the product. she uses the net present value (npv) method and discounts at the firm’s cost of capital. cora is contemplating how to handle the following items: i. the book value of warehouse space currently used by another division. ii. interest payments on debt to finance the equipment. iii. increased levels of accounts payable and inventory. iv. r&d spent in prior years and treated as a deferred asset for book and tax purposes. v. purchased price of the equipment. vi. the hurdle rate. which of the above items are relevant for cora to consider in determining the cash flows for her npv calculation? a、i b、ii c、iii d、iv e、v f、vi
9、which one of the following capital investment evaluation methods takes the time value of money into consideration? a、net present value. b、discounted payback. c、internal rate of return. d、accounting rate of return. e、payback period method. f、modified internal rate of return.
10、which of the following statement are true for the capital budget? a、miller (1960) finds that the net present value method was the most popular capital budgeting method in the 1960s. b、finance literature suggests using a risk-adjusted discount rate(radr) or hurdle rate when evaluating projects that alter the risk of the firm. c、hurdle rates are minimum rates of return firms require on projects in order to adopt the projects. d、the rate is determined by management ignores the fact that management may employ the wacc or other return in making that determination. e、if projects are mutually exclusive and are of different risks or are of different scales, mirr is preferred over npv. f、most financial managers use more than one technique to evaluate the same projects.
chapter 4. capital structure and financing decisions
section 1 financing policy随堂测验
1、the content of financing policy does not include ____. a、going-public policy b、ipo policy c、capital budgeting policy d、capital structure policy
2、which of the following is not external financing? ____ a、convert retained earnings and depreciation into investments b、issue common stock c、issue preferred stock d、issue bond
3、the pecking-order theory holds that when companies finance new projects, they will give priority to using ____. a、internal financing b、external financing c、debt capital financing d、equity capital financing
section 2 debt ratio and leverage analysis随堂测验
1、the collocation of operating leverage and financial leverage should not be ____. a、high operating leverage collocation high financial leverage b、high operating leverage collocation low financial leverage c、low operating leverage collocation high financial leverage d、low operating leverage collocation low financial leverage
2、which of the following statements is not true about debt policy? ____ a、determining reasonable debt ratio is an important part of corporate financing policy. b、when cash flow is abundant, higher debt ratio will cause the serious financial crisis. c、when cash flow appears to drop even the fund chain breaks, the high debt ratio will cause the serious financial crisis. d、the board of directors should scientifically determine the debt ratio according to the company’s profitability and risk degree.
3、operating risk depends on business factors except ____. a、competition b、product liability c、operating leverage d、debt
section 3.1 corporate financing methods (1)随堂测验
1、external equity financing does not include ____. a、common stock financing b、preferred stock financing c、warrant financing d、after-tax net profit
2、the value of a stock is estimated by finding the ____. a、present value of a stream of expected future cash flows b、terminal value of a stream of expected future cash flows c、present value of a stream of net profit d、terminal value of a stream of net profit
3、which of the following statements is true about preferred stock? ____ a、the dividend is stated. b、the dividend is set when the preferred stock is issued. c、preferred stock normally has no voting rights. d、all of the above
section 3.2 corporate financing methods (2)随堂测验
1、the warrants are ____. a、put options b、call options c、futures d、swaps
2、debt financing does not include ____. a、bank loan b、commercial credit c、venture capital d、financial leasing
3、the primary advantages of private placements are ____. a、higher flotation costs b、lower flotation costs c、higher returns d、greater speed
section 4.1 survey research on corporate financing policy (1)随堂测验
1、when asked about raising capital, managers rank ____ as their first choice. a、internal equity b、external equity c、debt financing d、preferred stock financing
2、it is very important for enterprises to determine the debt ratio reasonably.
3、the determination of capital structure is affected by the enterprise’s internal environment and external environment, the preference of the board of directors and the management and so on.
section 4.2 survey research on corporate financing policy (2)随堂测验
1、when making financing policies, enterprises need to consider ____. a、financial flexibility b、ensuring long-term survivability c、maintaining a predictable source of funds d、all of the above
2、what factors should be considered in developing a reasonable debt ratio? a、past profits b、average debt ratio in your industry c、past growth d、all of the above
3、managers use rules of thumb as guidelines to determine a firm’s capital structure.
chapter 4. capital structure and financing decisions
1、（此测试仅作为巩固练习，不计入期末成绩） which of the following is not external financing? a、convert retained earnings and depreciation into investments b、issue common stock c、issue preferred stock d、issue bond
2、the pecking-order theory holds that when companies finance new projects, they will give priority to using ____. a、internal financing b、external financing c、debt capital financing d、equity capital financing
3、the collocation of operating leverage and financial leverage should not be ____. a、high operating leverage collocation high financial leverage b、high operating leverage collocation low financial leverage c、low operating leverage collocation high financial leverage d、low operating leverage collocation low financial leverage
4、external equity financing does not include ____. a、common stock financing b、preferred stock financing c、warrant financing d、after-tax net profit
5、the value of a stock is estimated by finding the ____. a、present value of a stream of expected future cash flows b、terminal value of a stream of expected future cash flows c、present value of a stream of net profit d、terminal value of a stream of net profit
6、financing policy is actually a compound policy, including ____. a、going-public policy b、ipo policy c、capital structure policy d、capital budgeting policy e、equity structure policy f、dividend policy
7、which of the following are financing instruments? a、commercial paper b、corporate bonds c、venture capital d、warrants e、convertible debt f、preferred stock
8、the capital structure theory models include ____. a、mm models b、static trade-off models c、pecking-order models d、signaling models e、agency cost models f、neutral mutation models
1、private placement includes ____. a、bank loan b、angel investment c、venture capital d、all of the above
2、optimal financing policy is ____. a、lowest cost of capital and minimum firm value b、lowest cost of capital and maximum firm value c、highest cost of capital and minimum firm value d、highest cost of capital and maximum firm value
3、concerning financing tools, hybrid securities do not include ____. a、corporate bonds b、convertible debt c、preferred stock d、option-linked bonds
4、the content of financing policy does not include ____. a、going-public policy b、ipo policy c、capital budgeting policy d、capital structure policy
5、the value of a stock is estimated by finding the ____. a、present value of a stream of expected future cash flows b、terminal value of a stream of expected future cash flows c、present value of a stream of net profit d、terminal value of a stream of net profit
6、financing policy is actually a compound policy, including ____. a、going-public policy b、ipo policy c、capital structure policy d、capital budgeting policy e、equity structure policy f、dividend policy
7、which of the following are financing instruments? a、commercial paper b、corporate bonds c、venture capital d、warrants e、convertible debt f、preferred stock
8、the capital structure theory models include ____. a、mm models b、static trade-off models c、pecking-order models d、signaling models e、agency cost models f、neutral mutation models
section 1 shareholder wealth, dividend and dividend policy随堂测验
1、which is the final goal of dividend policy? a、shareholder wealth maximization. b、financing cost minimization. c、increasing the investment opportunities. d、keeping the stability of dividend payment.
2、which of the cash dividend policy is not included for a company going concern? a、regular dividends. b、extra dividends. c、special dividends. d、liquidating dividends.
3、which of the following statement is correct about dividend policy and stockholders’ expectations? a、the return of shareholders is equal to the capital gains minus dividends. b、higher dividend should be paid in the bull market. c、dividend policy is so important for the realization of maximizing shareholder wealth that it needs to be considered independently of the investment and financing policy. d、the formulation of dividend policy should be considered in combination with the capital gains.
section 2 dividend payout rate and dividend payment随堂测验
1、which of following statement is correct about dividend payout rate and dividend payment? a、the company with low dividend payout rate has poor cash flow and is not suitable for investment. b、due to the large demand of external financing, companies in growth period need to increase the dividend payment to alleviate the external financing constraints. c、companies in mature period generally have relatively stable dividend payout rate. d、the dividend payout rate of a company is closely related to its long-run development strategy and shall not be changed.
2、dividend payout rate might be different among various industries. what's wrong with the following statement? a、the internet companies generally have low dividend payout rate due to the strong financing demand. b、public utility companies generally have stable and high dividend payout rate because of their stable operation. c、when evaluating the dividend policy, industry cycle should not be ignored. d、the dividend payout rate is equal to dividend yield rate.
3、which of following statement is correct about dividend policy and stock market? a、most of the listed companies in us have fluctuating dividend policy since 2000. b、the dividend payment can be appropriately reduced in the bear market. c、in modern corporate governance, companies with stable dividend payout are more favored by investors. d、the dividend payout rate has little to do with the market.
section 3.1 dividend theory (1)随堂测验
1、which of the following statement is not true about the dividend theory of modigliani and miller (m&m)? a、the dividend theory of m&m is an extension of their capital structure theory. b、the dividend theory of m&m has wide applicability in the capital market currently. c、dividends have nothing to do with shareholder wealth maximation. d、investors can create their own dividend policy to meet their dividend demand.
2、which of the following statement is not true about the "bird-in-the-hand" theory? a、the investors have different risk preferences. b、the investors prefer cash dividends. c、dividends are less risky than capital gains. d、dividend payment has positive effects on shareholders.
3、what's wrong with the following statement about dividend tax and capital gains tax? a、the preferences of investors between dividends and capital gains are closely related to the tax environment of the host country. b、because the capital gains tax is generally lower than the dividend tax, investors with abundant cash flow generally prefer capital gains. c、historically, the capital gains tax rate in the us is generally higher than that of dividends. d、because the dividends can’t be deducted before tax, the cost of equity is higher than that of debt.
section 3.2 dividend theory (2)随堂测验
1、which of the following statement is true about the asymmetric information and signaling theory? a、the amount of dividend is more important than its change. b、high dividend payment is not acceptable to investors. c、with the development of information technology, investors can make investment decisions more accurately according to the dividend policy. d、arbitrage will happen in the circumstance of the asymmetric information.
2、according to the theory of agent and behavioral economic, which of the following statement is true? a、investors have consistent dividend preferences. b、dividend payment will reduce the agency cost through the reduction of free cash flow. c、dividend payment will increase the agency cost due to the increased external financing cost. d、the dividend policy of a company can meet the demand of every investor.
3、based on the dividend theory described in the previous sections, which of the following statement is not true? a、there are conflicts among different dividend theories, and the company should adhere to one of them. b、according to the life cycle theory, the dividend policy of a company should adapt to its own development period. c、the stability of dividend policy is essential to the reduction of stock risk. d、the formulation of the dividend policy should be combined with the external environment and industry characteristics.
section 4 residual dividend theory and dividend payout rate随堂测验
1、which is not included in the residual dividend model? a、target capital structure. b、investors’ preferences for dividends versus capital gains. c、the firm’s investment opportunities. d、the availability and cost of external capital.
2、which of the following assumption about the residual dividend policy is incorrect? a、it is based on the theory of miller and modigliani (1961). b、dividends are linked to the investment opportunities of companies. c、the residual cash flow should give priority to meet the investment demand. d、it can produce highly stable dividends.
3、which is appropriate for a company to adopt the residual dividend policy in practice? a、the shareholders of the company that are rely on dividends for live. b、companies with lots of investment opportunities. c、companies in mature period. d、utility companies.
section 5 the lintner’ model and dividend payment amount(dps) 随堂测验
1、which of the following statement about dps is not true? a、investors are more concerned about dps than dividend payout rate. b、when people talk about the stability of dividend policy, they generally refer to the stability of dividend payment. c、generally, the dividend payment amount (dps) is the data of a specific period, including cash dividends and stock dividends. d、managers are more concerned about dividend changes than the absolute amount.
2、which of the following statement is inconsistent with the view of linter's (1956)? a、dividends are sticky. b、the level of dividends is tied to sustainable long-term earnings. c、most firms have long-run target dividend payout ratios, including companies in growth and mature period. d、managers tends to reverse the change in dividends in order to reduce the cash outflow.
3、which of the following statement is true about the earnings volatility and dividend smoothing? a、the dividend payment of companies adopting cyclical dividend policy mainly depends on the industry cycle and has nothing to do with their earnings. b、the companies with stable dividend policy has its dividend payment fluctuates with the profit over an earning cycle. c、the changes in dividends can adjust to changes in the existing rate of earnings completely. d、the setting of the company's long-run target dividend rate can be of some help to keep the smoothness of dividend payment.
section 6.1 special dividend, stock split and stock repurchases (1)随堂测验
1、which of the following statement about special dividends (sdds) is true? a、it will not form the expectations of investors. b、small amount. c、usual. d、stable.
2、which of the following statement is not true about the similarities of stock split and stock dividends. a、both of them will increase the total number of shares outstanding. b、both of them will contribute to the improvement of stock liquidity. c、both of them will lower the price of each share and send negative signal to investors. d、both of them will not change the wealth of shareholders directly.
3、which of the following statement is false about dividend reinvestment plan (drip)? a、drips give the opportunities for investors to reinvest. b、drips can serve as a low-cost, convenient way for shareholders to invest. c、new-issue drips may serve as an alternative to a seasoned equity issue. d、it is suitable for investors who prefer cash dividends.
section 6.2 special dividend, stock split and stock repurchases (2)随堂测验
1、which of the following statement may not be the purpose of stock repurchase? a、optimizing capital structure. b、opportunistic investment. c、expanding external financing. d、be used for stock options.
2、which of the following companies are more likely to repurchase shares? a、companies with high stock price. b、companies with high residual cash. c、companies with high leverage. d、companies with poor liquidity.
3、which of the following statement is false about the economic consequence of stock repurchases? a、higher earnings per share. b、higher stock price. c、higher stock liquidity. d、shareholders who have not been repurchased can also be profitable.
section 7 survey research on dividend policy随堂测验
1、which is the main reason of a company pays dividends according to the research of baker and farrelly (1988)? a、maintaining or increasing the stock price from the current level. b、meeting stockholders’ expectations for continued dividend growth. c、following industry norm. d、attracting new investors/capital.
2、which is not the major determinants of corporate dividend policy based on the research of backer, farrelly and edeman (1985)? a、past earnings of the company. b、pattern of past dividends. c、availability of cash. d、concern about maintaining or increasing stock price.
3、according to the research of alon et al. (2005), which of the following factor is the most important consideration for the management to formulate the dividend policy? a、attracting investors. b、keeping dps constant. c、reducing financing costs. d、avoid reducing dps
test for chapter 5
1、which of the following statement about the theory of modigliani and miller (m&m) is true? a、debt is positively correlated with the company value due to the existence of tax shield. b、dividend distribution has nothing to do with market value. c、there is an optimal financing policy to maximize shareholder wealth. d、the cost of liabilities is lower than that of equity.
2、which of the following statement about the theory of "bird-in-the-hand" is incorrect? a、dividends are better than capital gains. b、high dividend distribution may rise the stock price. c、the investors hate the uncertainty of retained earnings. d、the investors have different dividend preferences.
3、which of the following statement about residual dividend policy is not true? a、residual cash is given priority to meet the demand of investment. b、residual dividend policy matches the pecking order theory. c、residual dividend policy is conducive to the maintenance of target capital structure. d、residual dividend policy is suitable for investors who rely on dividends for their lives.
4、which of the following dividend policy might investors with abundant cash flow prefer? a、residual dividend policy. b、fixed dividend payout rate policy. c、fixed dividend payment policy. d、low regular dividend plus extras.
5、which of the following statement is not true about stock dividends? a、market liquidity will be improved. b、internal structure of equity will be changed. c、the stock price is likely to go up. d、potential investors might be attracted.
6、which of the following statements about the dividend policy are true? a、dividend policy aims to achieve the optimal distribution of net profit after tax. b、the issuance of extra dividends can be of some help for investors to form the expectations of the dividend payment. c、when the stock market is booming, the stock price rises and investors can get higher capital gains. at this time, cash dividend payment can be appropriately reduced. d、dividends are paid primarily to take into account the company's short-term capital demand. e、the formulation of dividend policy is strategically oriented. f、the formulation of dividend policy has nothing to do with the target capital structure.
7、which of the following statements about dividend payout rate and dividend payment are true? a、dividend growth rates in growing companies are generally high. b、mature companies are less inclined to distribute cash dividends. c、fixed dividend payment can often send a signal to the market that the company is operating steadily. d、the company needs to set the appropriate target dividend payout rate according to the long-run development strategy. e、dividend payout rate are closely related to the life cycle in which the company is located. f、the policy of low regular dividend plus extra dividend does not apply to companies in growth period.
8、which of the following statements are true about stock split? a、capital structure will be affected by stock split. b、stock split can be of some help to maintain the stability of stock price. c、external financing cost will be reduced by stock split. d、internal financing cost will be reduced by stock split. e、the face value of the stock will be decreased by stock split. f、internal structure of equity will not be affected by stock split.
9、which of the following statements are true about stock repurchases? a、hostile takeover can be prevented. b、stock repurchases can improve the performance of the company in stock market. c、stock repurchases can be used as one of the incentives of management. d、stock repurchases can be an alternative to investment. e、stock repurchases does not change the capital structure. f、stock repurchases does not change the internal structure of equity.
10、based on what you have been learned in this chapter, which of the following factors may affect dividend distribution? a、expectations of investors. b、financial performance. c、investment opportunities. d、external financing constraints. e、capital maintenance. f、legal restrictions.
chapter 6. working capital policy
section 1 working capital and working capital management随堂测验
1、what are the parts of working capital management? a、current assets; current liabilities. b、long-term assets; long-term liabilities. c、fixed assets; fixed liabilities. d、long-term liabilities; shareholders’ equity.
2、what is the purpose of working capital management? a、to keep costs and risk under control. b、to enjoy cash discount. c、to maximize firm value. d、to obtain more financing.
3、what kind of business activities does working capital management serve? a、long-term investment. b、short-term investment. c、long-term financing. d、short-term financing.
section 2 working capital management in the us随堂测验
1、according to aktas et al. (2015), what is the relationship between working capital management and firm value? a、working capital can affect firm value by changing the investment of working capital. b、working capital affects firm value directly. c、working capital can affect firm value by changing its risk. d、working capital can affect firm value by changing its financing.
2、according to aktas et al. (2015), what is the general trend of nwc-to-sales ratio for us non-financial firms by years from 1982 to 2011? a、increasing year by year. b、decreasing year by year. c、increasing first, then decreasing. d、remain unchanged.
3、according to aktas et al. (2015), which of the following factors mainly affects the decline of working capital? a、the decline in cash. b、the decline in accounts receivable. c、the decline in prepayments. d、the decline in inventory.
section 3 current asset financing policy随堂测验
1、what is a moderate level of current asset investment policy? a、current assets per $100 of sales is 30. b、current assets per $100 of sales is 23. c、current assets per $100 of sales is 16. d、current assets per $100 of sales is 10.
2、what characteristics of firms tend to hold more current assets? a、the firm with low-risk investment. b、the firm with high-growth opportunities. c、the large firm. d、the firm with high-credit.
3、which firms are applicable to the relatively aggressive financing approach? a、firms with good relationship with banks. b、firms with bad relationship with banks. c、all of them. d、none of them.
section 4 operating cycle and cash cycle随堂测验
1、which periods are not involved in the following operation cycle? a、inventory cycle. b、accounts receivable cycle. c、cost of goods sold cycle. d、cash conversion cycle.
2、which is the formula of cash conversion cycle? a、inventory cycle accounts receivable cycle - prepayment cycle. b、inventory cycle accounts receivable cycle - accounts payable cycle. c、inventory cycle - accounts receivable cycle accounts payable cycle. d、inventory cycle cost of goods sold cycle - accounts payable cycle.
3、which of the following firms has a negative cash conversion cycle? a、amazon. b、tiffany. c、ford. d、costco.
section 5 cash management随堂测验
1、what are managers’ expectations of cash flows and outflows generally? a、speeding up cash outflows. b、increasing the amount of cash flowing. c、collecting late. d、paying early.
2、how to slow down cash outflows? a、cutting costs. b、increasing costs. c、delaying in payment. d、advance payment.
3、how to calculate the collections on sale during sale’ s month? a、0.2*sales(1-discount%). b、0.7*(prior month’s sales). c、0.1*(sales 2 months ago). d、bd%*(sales 2 months ago).
section 6 zero working capital随堂测验
1、generally speaking, what is the percentage of the firm’s working capital for each dollar of sales? a、10%. b、20%. c、30%. d、40%.
2、what is the applicable definition under the concept of zero working capital? a、current assets - current liabilities. b、assets - debt. c、inventory receivable - payable. d、inventory receivable - cash.
3、which of the following firms does not adopt jit mode to manage inventory? a、toyota. b、haier. c、wal-mart. d、country garden.
test for chapter 6
1、assume that a firm it has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. what is the length of the firm’s cash conversion cycle? a、30 days. b、40 days. c、50 days. d、60 days.
2、assume that a firm’ inventory cycle was 9.0 times during the year, and its dso was 41 days, its payables deferral period is 45 days. please calculate its cash conversion cycle? a、36 days. b、37 days. c、38 days. d、39 days.
3、according to aktas (2015), what is the best policy for working capital? a、firms should redeploy underutilized working capital resources to more efficient uses, such as funding growth investment. b、firms should redeploy underutilized working capital resources to more efficient uses, such as funding growth investment. c、corporate managers should avoid holding too much cash unnecessarily tied up in working capital and target an optimal level of working capital. d、corporate managers should pay more attention to maximize the utility of working capital, so as to benefit shareholders.
4、which of the following is not haier’s goal of achieving zero inventory through jit management? a、jit procurement. b、jit feeding. c、jit processing. d、jit delivery.
5、which periods are not involved in the following operation cycle? a、inventory period. b、accounts receivable cycle. c、cost of goods sold cycle. d、cash conversion cycle.
6、which of the following is the characteristic of conservative working capital financing policy? a、firms hold more current assets. b、the ratio of current assets is relatively low. c、temporary current assets need to be met by part of current liabilities. d、temporary current assets need to be met by long-term capital. e、compared with the moderate financing policy, the current debt ratio is lower. f、compared with the moderate financing policy, the current debt ratio is higher.
7、if chinese enterprises want to use “zero working capital management”, which of the following aspects should be strengthened? a、improved the production conditions and shorten the production time. b、enterprises with excessive inventory should first open up sales channels. c、flexible choice of settlement methods to keep funds unblocked. d、enterprises should pay attention to strengthen the management of current liabilities and learn to make full use of short-term financing. e、improving the efficiency of the use of funds, with the minimum input, to obtain the maximum output. f、paying attention to the solvency of the enterprise and ensure its reputation.
8、what is the goal of working capital management? a、sufficient liquidity. b、minimum risk. c、value maximization. d、effective use of short-term assets. e、to choose the most reasonable way of financing. f、to acquire long-term assets needed for business activities.
9、which of the following is the basic idea of implementing zero working capital management? a、all departments of the enterprise must cooperate closely and coordinate with each other. b、managers of enterprises must set up the management idea of “zero working capital”. c、establishing a strict purchasing network to ensure the production needs of enterprises. d、arranging the expenditure reasonably and control the purchase cost strictly. e、increasing the market share and establishing a stable and reliable sales network. f、the production and operation should be highly automated.
10、which of the following is a measure to achieve zero working capital management? a、shorten the time in production. b、targeted market development. c、trying to achieve zero inventory. d、using various settlement methods to keep the fund smooth. e、making full use of short-term financing methods. f、getting more long-term investment.
chapter 7. corporate risk management
section 1 measuring corporate risk随堂测验
1、1. what is the main emphasis on the definition of risk? a、uncertainty. b、measurable. c、flowability. d、loss.
2、what aspects of risk management should firm pay more attention to? a、future earnings and free cash flows. b、corporate investment and financing activities. c、exposing to danger or hazard. d、some negative aspects.
3、what kind of risk measurement method does most firms adopt? a、stabilize earnings. b、mitigate increase in costs. c、stabilize cashflows d、no explicit measurement.
section 2 type of risk and hedging risk随堂测验
1、1. what is the toughest risk in a firm? a、strategic risk. b、interest-rate risk. c、foreign-exchange risk. d、foreign-exchange risk.
2、which of the following is not the risk caused by the change of market price? a、interest-rate risk. b、foreign-exchange risk. c、commodity-price risk. d、hedge risk.
3、which of the following is not the function of hedging in enterprise production and operation? a、determine the purchase cost to ensure the profit of the enterprise. b、to avoid exchange rate loss of foreign trade enterprises. c、to make more profits. d、ensure that the budget of the enterprise does not exceed the standard.
section 3 practice of hedging risk in the us(1)随堂测验
1、accounting to bodnar et al. (1995), taking “minimize fluctuations in quarterly accounting earnings” as an indicator of hedging risk, the survey result show how much percentage of firm ranking as important increased from 1994 to 1995? a、13%. b、14%. c、15%. d、16%.
2、according to bodnar et al. (1995), which of the following is not the risk of an enterprise? a、market risk. b、business risk. c、financial risk. d、management risk.
3、according to bodnar et al. (1995), what kinds of risks faced by in sample companies are considered as most? a、market risk. b、business risk. c、financial risk. d、management risk.
section 4 practice of hedging risk in the us(2)随堂测验
1、accounting to bodnar et al. (1995), which of the following is the time span of most companies’ exchange rate forecasts? a、1 week. b、1 fortnight. c、1 month. d、no forecasts.
2、which of the following precautions does not help companies to minimize the political risk of the exchange rate? a、creating joint ventures with an enterprise. b、reducing a risk premium in the cost of capital. c、integrating products of the host country in your business. d、taking loans from the financial institutions of the host country.
3、which of the following is not a derivative technique for managing exchange rate risk? a、currency forward contracts. b、currency option. c、fund trading. d、money market hedge.
section 5 management: leverage随堂测验
1、the operating risk is not directly influenced by ________. a、uncertainty about requirements b、uncertainty about output price c、uncertainty about costs d、uncertainty about external financing
2、which of the following measure can be used to reduce the operating leverage? a、reducing production. b、increasing unit product price. c、increasing investment in fixed assets. d、reducing firm size.
3、which of the following statement about comprehensive leverage is not true? a、the comprehensive leverage includes operating leverage and financial leverage. b、financial leverage is positively correlated with the fixed interest expenditure. c、the coexistence of high operating leverage and high financial leverage is the optimal mode of comprehensive leverage. d、the generation of financial leverage is not only related to debt.
section 6 management: financial distress随堂测验
1、which of the following statement about financial risk and financial distress is incorrect? a、financial risk is the possibility of financial distress. b、one of the characteristics of financial distress is that the operating cash flow is insufficient to pay off the due debt. c、the liquidation value of enterprises in financial distress is generally lower than their book value. d、total assets below the market value of equity means that the enterprise is in financial distress.
2、which of the following is a parameter of altman’s z-model (1965)? a、total assets turnover. b、market-to-book ratio. c、return on total assets. d、the proportion of current assets in total assets.
3、if you want to maintain the continuous operation of a company, which of the following countermeasure should not be taken to deal with the financial crisis? a、debt rollover. b、bankruptcy reorganization. c、bankruptcy liquidation. d、debt to equity swap.
test for chapter 7
1、accounting to bodnar et al. (1995), which of the following is not a means for a company to mitigate its financial risk? a、keeping the debt-equity ratio close to the industrial benchmark. b、keeping the financial leverage as low as possible. c、keeping the interest coverage ratio as high as possible. d、making no use of financial derivatives.
2、accounting to bodnar et al. (1995), which of the following is not a means for a company to mitigate its financial risk? a、budgets are regularly monitored and reallocated in line. b、using adequate insurance coverage against fixed asset losses. c、increasing long-term investment. d、focusing on variable-costs-dominated ventures and strategies.
3、according to bodnar et al. (1995), which of the following does not belong to the fundamental analysis of enterprise exchange rate forecast? a、inflation rate. b、corporate financing. c、foreign exchange reserves. d、structure of balance of payment.
4、the operating leverage has nothing to do with ________. a、industry competition b、product liability c、capital structure d、cost structure
5、which of the following statement is true about altman’s z model (1965)? a、the bankruptcy risk is high if z-index is in the gray area. b、all parameters involved in z model need to be standardized by book equity. c、the parameters and weights of z model are consistently used in public and private enterprises. d、z index might be lagged to predict the bankruptcy.
6、accounting to bodnar et al. (1995), which of the followings are belong to a company’s financial risk? a、currency risk. b、interest risk. c、credit risk. d、liquidity risk. e、higher cost of risk. f、hedge risk.
7、accounting to bodnar et al. (1995), which of the followings are belong to a company’s business risk? a、missed or ignored business opportunities. b、physical disasters. c、stock-out of raw materials. d、inability to reduce cost base. e、failure to create and exploit intangible assets. f、losing suppliers or customers.
8、accounting to bodnar et al. (1995), which of the followings are belong to a company’s market risk? a、over reliance on key supplier or customers. b、failure of new products or services. c、poor service levels. d、inability to reduce cost base. e、failure to create and exploit intangible assets f、stock-out of raw materials.
9、which of the following statements about financial leverage are correct? a、the tax shield effect of debt should be considered when calculating financial leverage. b、considering the income tax, the marginal contribution of preferred shares to financial leverage is lower than that of debt. c、in the absence of preferred shares, financial leverage has nothing to do with the income tax rate. d、financial leverage has nothing to do with capital structure. e、when a company adopts equity financing completely, the financial leverage is equal to 1. f、the choice of financial leverage should be considered in combination with operating leverage.
10、which of the following statements about financial crisis are correct? a、debt to equity swap can reduce the asset liability ratio and optimize the capital structure. b、reconciliation and bankruptcy reorganization are generally superior to bankruptcy liquidation. c、the insolvent company can only choose to liquidate. d、creditors have priority compared with shareholders in bankruptcy liquidation. e、companies with serious insolvency are inclined to bankruptcy liquidation. f、stock-base insolvency means that the company's cash flow is unable to pay the payment required by the contract.