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Fifer Co has a current ratio of 1.2:1 which is below the industry average. Fifer Co wants

to increase its current ratio by the year end. Which of the following actions, taken before the year end, would lead to an increase in the current ratio?

A、Return some inventory which had been purchased for cash and obtain a full refund on the cost

B、Make a bulk purchase of inventory for cash to obtain a large discount

C、Make an early payment to suppliers, even though the amount is not due

D、Offer early payment discounts in order to collect receivables more quickly

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第1题

The equity beta of Fence Co is 0·9 and the company has issued 10 million ordinary shares. The market value of each ordinary share is $7·50. The company is also financed by 7% bonds with a nominal value of $100 per bond, which will be redeemed in seven years’ time at nominal value. The bonds have a total nominal value of $14 million. Interest on the bonds has just been paid and the current market value of each bond is $107·14.

Fence Co plans to invest in a project which is different to its existing business operations and has identified a company in the same business area as the project, Hex Co. The equity beta of Hex Co is 1·2 and the company has an equity market value of $54 million. The market value of the debt of Hex Co is $12 million.

The risk-free rate of return is 4% per year and the average return on the stock market is 11% per year. Both companies pay corporation tax at a rate of 20% per year.

Required:

(a) Calculate the current weighted average cost of capital of Fence Co. (7 marks)

(b) Calculate a cost of equity which could be used in appraising the new project. (4 marks)

(c) Explain the difference between systematic and unsystematic risk in relation to portfolio theory and the capital asset pricing model. (6 marks)

(d) Discuss the differences between weak form, semi-strong form. and strong form. capital market efficiency, and discuss the significance of the efficient market hypothesis (EMH) for the financial manager. (8 marks)

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第2题

Which of the following expressions can be used to refer to a person who has no will of his own?

A.To hold up one' nose.

B.To follow one's nose.

C.To be as plain as the nose on one's face.

D.To be led around by the nose.

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第3题

The case for college has been accepted without question for more than a generration on.All high school graduates ought to go,says conventional wisdom and statistical evidence,because college will help them earn more money, become better people, and learn how to be more responsible citizens tlian those who don&39;t go. But college has never been able to work its magic for everyone. And now that close to haif of our school graduates are attending, those who don&39;t fit the pattern are becoming more numerous, and more obvious. College graduates are selling shoes and driving taxis;college students interfere with each other,s experiments and write false letters of recommendation in (he intense competition for admission to graduate school. Others find no Mtimulation in their studies, and drop out—often encouraged by college administrators. Some observers say that the fault is with the young people themselves— they are spoiled and they are expecting too much. But that&39;s a condemnation of the students as a whole, and does not explain all campus unhappiness. Others blame the state of the world and they are partly right. We&39;ve been told that young people have to go to cotluge because our economy can absorb an army of untrained eighteen-year olds. But disappointed graduates are learning that it can no longer absorb an army of trained twenty-two-year-olds either. Some adventuresome educators and campus watchers have openly began to suggest that college may not be the best, the proper the only place (or every young people after the completion of high school. We may have been looking at all those surveys And statistics upside down,it seems and through the rosy glow of our own remembered college experiences. perhaps college doesn’t make people intelligent ambitious happy, liberal, or quick to learn things maybe it’s just the way Around, and intelligent. Nmbitious, happy,liberal. Quick-learning people are merely the ones who have been attracted to college in the first place. And perhaps all ihose successful college students would have heen successful whether they had gone to college or not. This is heresy to those of us who have been brought up to believe that if a liitle schooling is good, more has to be much better. But contray evidence is beginning to mount up.

According to the passage the author believes that____.

A.people used to question the value of college education

B.people used to have all confidence in higher education

C.all high school graduates. went to college

D.very few high school graduates chose to go to college

The drop-out rate of college students seems to go up because____.A.young people are disappointed with the conventional way of teaching at college

B.many young people are required to join the army

C.young people have ittle motivation in pursuing higher education

D.young people don’t like the intense competition for admission to graduate school.

In the passage the author argues thatA.more and more evidence shows that college education may not be the best thing for high school graduates

B.college education is not enough if one wants to be succesful

C.college education benefits only the inelligent, ambitions and quick-learning people

D.intelligent people may learn quicker if they don’t go to college

What does the author mean when he says:“Others blame the state of the world, and they are partly right?”A.The world is not stable

B.The worldcammoe absocboas many college students as possible

C.The world can’t accept so many young man to be educated in colleges

D.Educated or not, nobody is certain to play a useful role in society because of the state of economy of the countries

请帮忙给出每个问题的正确答案和分析,谢谢!

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第4题

Read the article below about a successful businessman. For each question (1 -6) below the article, choose the correct answer. Mark one letter (A, B or C) on your Answer Sheet. PACKAGE HOLIDAY SUCCESS Travel operator Joyflight is different from most of its rivals. UK package holiday companies would love to have plenty of repeat business. Instead, in an effort to attract trade, they are forced to spend enormous sums on marketing -- but they are operating in a very competitive market. So, although the big travel companies try hard to create attractive brands, if you ask the customers delayed at airports, many arent even sure which company theyve booked with. Ask customers of Joyflight, however, and this is probably their third or fourth holiday with the company. A Joyflight holiday doesnt come cheap; but for their customers this isnt an issue. The attraction is that they get an activity-based club which has escaped the notice of the general public. Even the location of the holiday is of minor importance. A high proportion of customers are families, because the adults are free to enjoy the activities on offer, while small children are in the care of people employed by Joyflight just for this purpose. These nannies get free flights and meals on top of their pay. Interestingly, most of the companys senior managers began at the bottom: for example, Linda Robinson, the marketing Manager, came as a ski guide in 1996, went away to set up her own catering business, sold it for a considerable sum, and returned to Joyflight in 2001. The companys performance over the years means that it gets a steady stream of offers from large tour operators wanting to buy the company. Micheal Knight, who started the firm, came very close to selling it for £ 40 million a few years ago. But at the last minute, Barmond, the potential buyer, was itself taken over by an American travel company which didnt see a place for Joyflight in the group. So where does that leave Joyflight? Despite greatly increasing its turnover in the past four years, the company has a careful attitude to expansion. Its decision not to sell skiing holidays in North America proved the right one when many of its rivals failed to persuade British travellers to take the ten-hour flight. Learning from experiences like these, Joyflights two recent departures from its main activity are the acquisitions of restaurant chains in Spain and Italy. And as for moving into the mass market for its holidays? Joyflight is much too successful to want to do that.

Joyflight differs from most other UK travel operators in ______.

A.the cost of its holidays.

B.the places where it advertises.

C.the number of repeat booking it has.

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第5题

The use of nuclear power has already spread all over the world. (1)_____, scientists still have not agreed with what should be done with the large (2)_____ of waste materials that (3)_____ to increase every year. Most waste materials (4)_____ of simply by placing them somewhere. But nuclear waste must be (5)_____ with great care. It (6)_____ dangerous radiation and it will continue to be (7)_____ for hundreds of thousands, even millions of years.

How should we get (8)_____ of such waste material in such a way (9)_____ it will not harm the (10)_____? Where can we (11)_____ distribute it? One idea is to put this radioactive waste inside a thick container, which is (12)_____ dropped to the deep bottom of the ocean. (13)_____ some scientists believe that this way of (14)_____ nuclear waste could kill fish and other living things in the oceans or interfere (15)_____ their growth. Another way to (16)_____ nuclear waste is to send it into space, to the sun, (17)_____ it would be burned. Other scientists suggest that this polluting material be (18)_____ thousands of meters under the earth's surface. Such underground areas must be free (19)_____ possible earthquakes, and advances are being made. But it may still be many years (20)_____ this problem could be finally settled.

A.Moreover

B.Though

C.Therefore

D.Otherwise

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第6题

California has been facing a drought for many year...

California has been facing a drought for many years now, with certain areas even having to pump freshwater hundreds of miles to their distribution system. The problem is growing as the population of the state continues to expand. New research has found deep water reserves under the state which could help solve their drought crisis. Previous drilling of wells could only reach depths of 1,000 feet, but due to new pumping practices, water deeper than this can now be extracted (抽取). The team at Stanford investigated the aquifers(地下蓄水层)below this depth and found that reserves may be triple what was previously thought. It is profitable to drill to depths more than 1,000 feet for oil and gas extraction, but only recently in California has it become profitable to pump water from this depth. The aquifers range from 1,000 to3,000 feet below the ground, which means that pumping will be expensive and there are other concerns. The biggest concern of pumping out water from this deep is the gradual setting down of the land surface. As the water is pumped out, the vacant space left is compacted by the weight of the earth above. Even though pumping from these depths is expensive, it is still cheaper than desalinating(脱盐)the ocean water in the largely coastal state. Some desalination plants exist where feasible, but they are costly to run and can need constant repairs. Wells are much more reliable sources of freshwater, and California is hoping that these deep wells may be the answer to their severe water shortage. One problem with these sources is that the deep water also has a higher level of salt than shallower aquifers. This means that some wells may even need to undergo desalination after extraction, thus increasing the cost. Research from the exhaustive study of groundwater from over 950 drilling logs has just been published. New estimates of the water reserves now go up to 2,700 billion cubic meters of freshwater. 1 How could California's drought crisis be solved according to some researchers?

A、By building more reserves of groundwater.

B、By drawing water from the depths of the earth.

C、By developing more advanced drilling devices.

D、By upgrading its water distribution system.

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第7题

听力原文: The World Health Organization today accused the tobacco industry of continuing to use misleading labels such as light, clean, fresh, cool or mild in order to encourage millions of people to take up the deadly habit of smoking each year. The theme of this year's World No Tobacco Day, "Tobacco: deadly in any form. or disguise", calls attention to the tobacco industry's lies and to the existence of a great variety of deadly tobacco products. The purpose of World No Tobacco Day is to remove the deceit and unveil the truth behind tobacco products. Tobacco products are deadly in any form, whether it be cigarettes, pipes, chewing tobacco. WHO emphasized that the industry's use of misleading descriptors and manufacturing methods do not make tobacco products safer.

(88)

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第8题

1 Wonderland plc, which is based in Robynland, owns Cinola Island which is located off the coast of Robynland. On

Cinola Island, Wonderland plc operates a circus and zoological gardens (zoo) both of which are open for 365 days

per annum. The circus, which is widely regarded as the best in the world, can accommodate a maximum of 14,000

visitors per day. The zoological gardens, which opened on 1 December 1999, can accommodate a maximum of

20,000 visitors per day. Visitors travel to and from Cinola Island using petrol-driven ferries owned by Wonderland plc.

There is no other mode of transport to and from Cinola Island.

The following information is available in respect of the year ended 30 November 2006 and the year ending

30 November 2007.

(1) The zoo and circus were open on each day of the year. The circus performed once per day and was always

operated at maximum capacity.

(2) Three types of ticket were sold as follows:

Note: The petrol-driven ferries were fully depreciated as at 1 December 2006.

(7) Wonderland plc received an annual fee of £10 million from an International media group under a fixed-term

contract of three years’ duration. The contract commenced on 1 December 2005 and relates to the rights to

televise programmes which were filmed in the zoo and therefore the fee should be regarded as relating to the

zoo.

(8) Admission fees to the zoo and circus will be increased by 5% with effect from 1 December 2006. Transport fees

will remain unchanged.

(9) It is anticipated that all operating costs will increase by 4% per annum due to the impact of inflation during the

year ending 30 November 2007.

(10) The management of Wonderland plc expect that the number of visitors, visitor mix and ticket mix will remain

unchanged during the year ending 30 November 2007.

(11) Ignore taxation.

Required:

(a) Prepare the budgeted profit and loss account for Wonderland plc for the year ending 30 November 2007.

(9 marks)

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