货币金融学chapter7英文习题.docx

货币金融学chapter7英文习题.docx

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货币金融学chapter7英文习题

EconomicsofMoney,Banking,andFinancialMarkets,11e,GlobalEdition（Mishkin）

Chapter7TheStockMarket,theTheoryofRationalExpectations,andtheEfficientMarketHypothesis

7.1ComputingthePriceofCommonStock

1）Astockholder'sownershipofacompany'sstockgiveshertherightto

A）voteandbetheprimaryclaimantofallcashflows.

B）voteandbetheresidualclaimantofallcashflows.

C）manageandassumeresponsibilityforallliabilities.

D）voteandassumeresponsibilityforallliabilities.

Answer:

B

AACSB:

AnalyticalThinking

2）Stockholdersareresidualclaimants,meaningthatthey

A）havethefirstpriorityclaimonallofacompany'sassets.

B）areliableforallofacompany'sdebts.

C）willnevershareinacompany'sprofits.

D）receivetheremainingcashflowafterallotherclaimsarepaid.

Answer:

D

AACSB:

AnalyticalThinking

3）Periodicpaymentsofnetearningstoshareholdersareknownas

A）capitalgains.

B）dividends.

C）profits.

D）interest.

Answer:

B

AACSB:

AnalyticalThinking

4）Thevalueofanyinvestmentisfoundbycomputingthe

A）presentvalueofallfuturesales.

B）presentvalueofallfutureliabilities.

C）futurevalueofallfutureexpenses.

D）presentvalueofallfuturecashflows.

Answer:

D

AACSB:

AnalyticalThinking

5）Intheone-periodvaluationmodel,thevalueofashareofstocktodaydependsupon

A）thepresentvalueofboththedividendsandtheexpectedsalesprice.

B）onlythepresentvalueofthefuturedividends.

C）theactualvalueofthedividendsandexpectedsalespricereceivedinoneyear.

D）thefuturevalueofdividendsandtheactualsalesprice.

Answer:

A

AACSB:

AnalyticalThinking

6）Intheone-periodvaluationmodel,thecurrentstockpriceincreasesif

A）theexpectedsalespriceincreases.

B）theexpectedsalespricefalls.

C）therequiredreturnincreases.

D）dividendsarecut.

Answer:

A

AACSB:

ReflectiveThinking

7）Intheone-periodvaluationmodel,anincreaseintherequiredreturnoninvestmentsinequity

A）increasestheexpectedsalespriceofastock.

B）increasesthecurrentpriceofastock.

C）reducestheexpectedsalespriceofastock.

D）reducesthecurrentpriceofastock.

Answer:

D

AACSB:

ReflectiveThinking

8）Inaone-periodvaluationmodel,adecreaseintherequiredreturnoninvestmentsinequitycausesa（n）________inthe________priceofastock.

A）increase;current

B）increase;expectedsales

C）decrease;current

D）decrease;expectedsales

Answer:

A

AACSB:

ReflectiveThinking

9）Usingtheone-periodvaluationmodel,assumingayear-enddividendof$0.11,anexpectedsalespriceof$110,andarequiredrateofreturnof10%,thecurrentpriceofthestockwouldbe

A）$110.11.

B）$121.12.

C）$100.10.

D）$100.11

Answer:

C

AACSB:

AnalyticalThinking

10）Usingtheone-periodvaluationmodel,assumingayear-enddividendof$1.00,anexpectedsalespriceof$100,andarequiredrateofreturnof5%,thecurrentpriceofthestockwouldbe

A）$110.00.

B）$101.00.

C）$100.00.

D）$96.19.

Answer:

D

AACSB:

AnalyticalThinking

11）Inthegeneralizeddividendmodel,iftheexpectedsalespriceisinthedistantfuture

A）itdoesnotaffectthecurrentstockprice.

B）itismoreimportantthandividendsindeterminingthecurrentstockprice.

C）itisequallyimportantwithdividendsindeterminingthecurrentstockprice.

D）itislessimportantthandividendsbutstillaffectsthecurrentstockprice.

Answer:

A

AACSB:

AnalyticalThinking

12）Inthegeneralizeddividendmodel,afuturesalespricefarinthefuturedoesnotaffectthecurrentstockpricebecause

A）thepresentvaluecannotbecomputed.

B）thepresentvalueisalmostzero.

C）thesalespricedoesnotaffectthecurrentprice.

D）thestockmayneverbesold.

Answer:

B

AACSB:

AnalyticalThinking

13）Inthegeneralizeddividendmodel,thecurrentstockpriceisthesumof

A）theactualvalueofthefuturedividendstream.

B）thepresentvalueofthefuturedividendstream.

C）thepresentvalueofthefuturedividendstreamplustheactualfuturesalesprice.

D）thepresentvalueofthefuturesalesprice.

Answer:

B

AACSB:

AnalyticalThinking

14）UsingtheGordongrowthmodel,astock'scurrentpricewillincreaseif

A）thedividendgrowthrateincreases.

B）thegrowthrateofdividendsfalls.

C）therequiredrateofreturnonequityrises.

D）theexpectedsalespricerises.

Answer:

A

AACSB:

ReflectiveThinking

15）UsingtheGordongrowthmodel,astock'scurrentpricedecreaseswhen

A）thedividendgrowthrateincreases.

B）therequiredreturnonequitydecreases.

C）theexpecteddividendpaymentincreases.

D）thegrowthrateofdividendsdecreases.

Answer:

D

AACSB:

ReflectiveThinking

16）IntheGordongrowthmodel,adecreaseintherequiredrateofreturnonequity

A）increasesthecurrentstockprice.

B）increasesthefuturestockprice.

C）reducesthefuturestockprice.

D）reducesthecurrentstockprice.

Answer:

A

AACSB:

ReflectiveThinking

17）UsingtheGordongrowthformula,ifD1is$2.00,keis12%or0.12,andgis10%or0.10,thenthecurrentstockpriceis

A）$20.

B）$50.

C）$100.

D）$150.

Answer:

C

AACSB:

AnalyticalThinking

18）UsingtheGordongrowthformula,ifD1is$1.00,keis10%or0.10,andgis5%or0.05,thenthecurrentstockpriceis

A）$10.

B）$20.

C）$30.

D）$40.

Answer:

B

AACSB:

AnalyticalThinking

19）UsingtheGordongrowthmodel,ifD1is$.50,keis7%,andgis5%,thenthepresentvalueofthestockis

A）$2.50.

B）$25.

C）$50.

D）$46.73.

Answer:

B

AACSB:

AnalyticalThinking

20）OneoftheassumptionsoftheGordonGrowthModelisthatdividendswillcontinuegrowingat________rate.

A）anincreasing

B）afast

C）aconstant

D）anescalating

Answer:

C

AACSB:

AnalyticalThinking

21）IntheGordonGrowthModel,thegrowthrateisassumedtobe________therequiredreturnonequity.

A）greaterthan

B）equalto

C）lessthan

D）proportionalto

Answer:

C

AACSB:

AnalyticalThinking

22）Youbelievethatacorporation'sdividendswillgrow5%onaverageintotheforeseeablefuture.Ifthecompany'slastdividendpaymentwas$5whatshouldbethecurrentpriceofthestockassuminga12%requiredreturn?

Answer:

UsetheGordonGrowthModel.

$5（1+.05）/（.12-.05）=$75

AACSB:

AnalyticalThinking

23）Whatrightsdoesownershipinterestgivestockholders?

Answer:

Stockholdershavetherighttovoteonissuesbroughtbeforethestockholders,betheresidualclaimant,thatis,receiveaportionofanynetearningsofthecorporation,andtherighttosellthestock.

AACSB:

ReflectiveThinking

7.2HowtheMarketSetsStockPrices

1）Inassetmarkets,anasset'spriceis

A）setequaltothehighestpriceasellerwillaccept.

B）setequaltothehighestpriceabuyeriswillingtopay.

C）setequaltothelowestpriceaselleriswillingtoaccept.

D）setbythebuyerwillingtopaythehighestprice.

Answer:

D

AACSB:

ReflectiveThinking

2）Informationplaysanimportantroleinassetpricingbecauseitallowsthebuyertomoreaccuratelyjudge

A）liquidity.

B）risk.

C）capital.

D）policy.

Answer:

B

AACSB:

AnalyticalThinking

3）Newinformationthatmightleadtoadecreaseinastock'spricemightbe

A）anexpecteddecreaseintheleveloffuturedividends.

B）adecreaseintherequiredrateofreturn.

C）anexpectedincreaseinthedividendgrowthrate.

D）anexpectedincreaseinthefuturesalesprice.

Answer:

A

AACSB:

ReflectiveThinking

4）Achangeinperceivedriskofastockchanges

A）theexpecteddividendgrowthrate.

B）theexpectedsalesprice.

C）therequiredrateofreturn.

D）thecurrentdividend.

Answer:

C

AACSB:

ReflectiveThinking

5）Astock'spricewillfallifthereis

A）adecreaseinperceivedrisk.

B）anincreaseintherequiredrateofreturn.

C）anincreaseinthefuturesalesprice.

D）currentdividendsarehigh.

Answer:

B

AACSB:

ReflectiveThinking

6）Amonetaryexpansion________stockpricesduetoadecreaseinthe________andanincreaseinthe________,everythingelseheldconstant.

A）reduces;futuresalesprice;expectedrateofreturn

B）reduces;currentdividend;expectedrateofreturn

C）increases;requiredrateofreturn;futuresalesprice

D）increases;requiredrateofreturn;dividendgrowthrate

Answer:

D

AACSB:

ReflectiveThinking

7）Theglobalfinancialcrisisleadtoadeclineinstockpricesbecause

A）ofaloweredexpecteddividendgrowthrate.

B）ofaloweredrequiredreturnoninvestmentinequity.

C）higherexpectedfuturestockprices.

D）highercurrentdividends.

Answer:

A

AACSB:

ReflectiveThinking

8）Increaseduncertaintyresultingfromtheglobalfinancialcrisis________therequiredreturnoninvestmentinequity.

A）raised

B）lowered

C）hadnoimpacton

D）decreased

Answer:

A

AACSB:

ReflectiveThinking

7.3TheTheoryofRationalExpectations

1）Economistshavefocusedmoreattentionontheformationofexpectationsinrecentyears.Thisincreaseininterestcanprobablybestbeexplainedbytherecognitionthat

A）expectationsinfluencethebehaviorofparticipantsintheeconomyandthushaveamajorimpactoneconomicactivity.

B）expectationsinfluenceonlyafewindividuals,havelittleimpactontheoveralleconomy,butcanhaveimportanteffectsonafewmarkets.

C）expectationsinfluencemanyindividuals,havelittleimpactontheoveralleconomy,butcanhavedistributionaleffects.

D）modelsthatignoreexpectationshavelittlepredictivepower,evenintheshortrun.

Answer:

A

AACSB:

ReflectiveThinking

2）Theviewthatexpectationschangerelativelyslowlyovertimeinresponsetonewinformationisknownineconomicsas

A）rationalexpectations.

B）irrationalexpectations.

C）slow-responseexpectations.