18-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter18TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.________isequaltothetotalmarketvalueofthefirm'scommonstockdividedby(thereplacementcostofthefirm'sassetslessliabilities).A.BookvaluepershareB.LiquidationvaluepershareC.MarketvaluepershareD.Tobin'sQE.Noneoftheoptionsarecorrect.2.HighP/Eratiostendtoindicatethatacompanywill_______,ceterisparibus.A.growquicklyB.growatthesamespeedastheaveragecompanyC.growslowlyD.notgrowE.Noneoftheoptionsarecorrect.3._________isequaltocommonshareholders'equitydividedbycommonsharesoutstanding.A.BookvaluepershareB.LiquidationvaluepershareC.MarketvaluepershareD.Tobin'sQ4.________areanalystswhouseinformationconcerningcurrentandprospectiveprofitabilityofafirmtoassessthefirm'sfairmarketvalue.A.CreditanalystsB.FundamentalanalystsC.SystemsanalystsD.TechnicalanalystsE.Specialists5.The_______isdefinedasthepresentvalueofallcashproceedstotheinvestorinthestock.A.dividend-payoutratioB.intrinsicvalueC.market-capitalizationrateD.plowbackratio6._______istheamountofmoneypercommonsharethatcouldberealizedbybreakingupthefirm,sellingtheassets,repayingthedebt,anddistributingtheremaindertoshareholders.A.BookvaluepershareB.LiquidationvaluepershareC.MarketvaluepershareD.Tobin'sQ7.Since1955,TreasurybondyieldsandearningsyieldsonstockshavebeenA.identical.B.negativelycorrelated.C.positivelycorrelated.D.uncorrelated.8.Historically,P/Eratioshavetendedtobe18-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.A.higherwheninflationhasbeenhigh.B.lowerwheninflationhasbeenhigh.C.uncorrelatedwithinflationratesbutcorrelatedwithothermacroeconomicvariables.D.uncorrelatedwithanymacroeconomicvariables,includinginflationrates.9.The______isacommontermforthemarketconsensusvalueofthereq...
