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Test Bank for Advanced Corporate Finance 1st Edition by Ogden Jen and OConnor Link full download of Test Bank: http://testbankair.com/download/test-bank-foradvanced-corporate-finance-1st-edition-by-ogden-jen-and-oconnor/ Link full download of Solution Manual: http://testbankair.com/download/solutionsmanual-for-advanced-corporate-finance-1st-edition-by-ogden-jen-oconnor/ Acquisitions Editor: Mickey Cox Associate Editor: Kevin Hancock Project editor: Manufacturer: Š 2002 Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, New Jersey 07458

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PREFACE This test bank has been prepared for professors using the textbook, Advanced Corporate Finance: Policies and Strategies, by Ogden, Jen, and O’Connor, Prentice Hall, 2000. The test bank provides, for each chapter, sets of multiple-choice questions and essay questions. For each multiple-choice question, the correct answer is highlighted with an asterisk (*), and if the question involves numerical calculations, the applicable formula is provided. Joseph P. Ogden

Ogden, Jen, and O’Connor: Advanced Corporate Finance

Copyright © 2002 Prentice hall Inc. All rights reserved.

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CONTENTS Chapter 1……………………………………………………………………………………… Chapter 2……………………………………………………………………………………… Chapter 3……………………………………………………………………………………… Chapter 4……………………………………………………………………………………… Chapter 5……………………………………………………………………………………… Chapter 6……………………………………………………………………………………… Chapter 7……………………………………………………………………………………… Chapter 8……………………………………………………………………………………… Chapter 9……………………………………………………………………………………… Chapter 10…………………………………………………………………………………….. Chapter 11…………………………………………………………………………………….. Chapter 12…………………………………………………………………………………….. Chapter 13…………………………………………………………………………………….. Chapter 14…………………………………………………………………………………….. Chapter 15…………………………………………………………………………………….. Chapter 16…………………………………………………………………………………….. Chapter 17…………………………………………………………………………………….. Chapter 18…………………………………………………………………………………….. Chapter 19……………………………………………………………………………………..

Ogden, Jen, and O’Connor: Advanced Corporate Finance

Copyright © 2002 Prentice hall Inc. All rights reserved.

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CHAPTER1 Empirical Perspectives on the Financial Characteristics of Publicly Traded U.S. Nonfinancial Firms Multiple Choice Questions ___ 1. For public U.S. nonfinancial firms in composite, the fractions of current assets and non-current assets (all in book values; year-end 2000) are approximately: Current Non-current Assets Assets a. 1/3 2/3 * b. 1/2 1/2 c. 2/3 1/3 ___ 2. For public U.S. nonfinancial firms in composite, the fractions of liabilities (current plus noncurrent), and equities (all in book values, year-end 2000) are approximately: Liabilities Equities a. 1/3 2/3 b. 1/2 1/2 c. 2/3 1/3 * ___ 3. Over the years 1981-2000, 4,770 nonfinancial firms exited the U.S. markets for publicly traded equity. Which of the following was the most frequent reason for a firm’s exit? a. Merger or acquisition * b. Bankruptcy or liquidation c. The firm reverted to private equity ownership d. The firm changed its listing to a foreign stock exchange ___ 4. What average annual proportion of the total number of public U.S. nonfinancial firms at year-end 1980 exited over the years 1981-2000 (i.e., the average attrition rate)? a. 5.9% * b. 15.9% c. 25.9% d. 35.9% ___ 5. Which category of composite assets (for public U.S. nonfinancial firms) showed the largest proportional decrease over the years 1980-2000? a. cash and equivalents b. inventories c. net PP&E * d. other non-current assets

Ogden, Jen, and O’Connor: Advanced Corporate Finance

Copyright © 2002 Prentice hall Inc. All rights reserved.

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___ 6. Throughout the period 1980 -2000, the composite proportion of the TA of U.S. nonfinancial firms accounted for by net PP&E generally ___(i)____, and the proportion of TA financed by equity ___(ii)___ fairly steadily. ___(i)___ ___(ii)___ a. decreased increased b. increased decreased * c. increased also increased d. decreased also decreased ___ 7. Which category of liabilities & equities had the smallest proportion in every year from 19802000? a. current liabilities b. debt c. other non-current liabilities d. common stock e. preferred stock * ___ 8. For public U.S. nonfinancial firms over the years 1980-2000, the composite market-to-book equity ratio generally: a. increased from 1980-2000. * b. decreased from 1980-2000. c. remained stable from 1980-2000. ___ 9. Which groups of U.S. nonfinancial firms have the highest composite proportions of PP&E to TA? a. S&P Industrials b. S&P MidCaps c. S&P SmallCaps d. S&P Transports and Utilities * ___ 10. According to the composite sources-and-uses data presented in Chapter 1, the main net source of funds for U.S. nonfinancial firms over the years 1980-2000 is: a. proceeds from debt offerings. b. proceeds from equity offerings. c. retained earnings (net cash flow from operations). * d. sales of investments (net of increases in investments). ___ 11. Over the 20-year period of 1980-2000, the composite dividend yield of public U.S. nonfinancial firms has generally: a. increased. b. decreased. * c. remained. ___ 12. The ownership structures of most publicly traded U.S. nonfinancial firms is better characterized by the term: a. closely held b. diffuse *

Ogden, Jen, and O’Connor: Advanced Corporate Finance

Copyright Š 2002 Prentice hall Inc. All rights reserved.

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