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1. From the extended (5-part) DuPont equation, which of the following components describes the equation EBT / EBIT? A. Tax burden B. Interest burden C. Financial leverage D. EBIT margin E. Asset turnover 2. Which one is a capital budgeting decision? A. Deciding between issuing stock or debt securities B. Deciding whether or not the firm should go public C. Deciding if the firm should repurchase some of its outstanding shares D. Deciding whether to buy a new machine or repair the old machines E. Both A and C. 3. Corporation A and B have the same quick ratio, but B has larger current ratio. It is most likely that A has: A. More accounts payables B. More accounts receivables C. More inventories D. Can't tell E. None of above 4. Uber has decided to issue stock. When stock is issued, it will be sold on: A. NYSE B. NASDAQ C. Primary market D. Either A or B E. All of above 5. Long-term financing transactions commonly occurs in: A. Primary markets B. Secondary markets C. Capital markets D. Money markets E. Both B and C 6. What is the disadvantage of a corporation? A. Harder access to raising capital B. Limited liabilities C. Double taxation D. Both B and C E. None of above 7. Which one is the most appropriate goal for top management of a corporation? A. Maximizing firm's number of shares outstanding B. Maximizing market value of firm's shares C. Maximizing net income of the firm D. Minimizing firm's liabilities Both A, B and D 8. What is the version of your exam? A. Version A B. Version B C. Version C D. Version D E. Can't tell

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