Corporate Finance
Comprehensive Multiple Choice Exam


Kenneth R. Szulczyk

This is the complete test bank for this course. All answers are listed at the end.

Lesson 1 - Overview of Corporations

1. If a person owns his own business, what type is it?

A) Partnership
B) Corporation
C) Limited Liability Partnership
D) Sole proprietorship

2. If two or more people own their own business, what type is it?

A) Partnership
B) Corporation
C) Sole proprietorship
D) Government

3. What is limited liability for a corporation?

A) Stockholders are not liable for corporation’s debt
B) Stockholders can bind corporation to debts
C) Corporation cannot be sued in a court
D) Stockholders are liable for corporation’s debt

4. Which security allows stockholders to vote for board of directors?

A) Preferred stock
B) Common stock
C) Corporate bond
D) Corporate loan

5. Why can corporations raise a substantial amount of capital?

A) Stockholders cannot bind corporation to contracts.
B) Corporate ownership is easily transferred.
C) Corporations have continuity of life.
D) All of the above

6. If corporation bankrupts, who is first for a corporation’s assets?

A) President of corporation
B) Preferred stockholders
C) Loans from banks, bondholders, and taxes from government
D) Common stock holders
7. Which person or entity appoints the president of a corporation?

A) Stockholders
B) Bondholders
C) Board of Directors
D) Chief Financial Officer (CFO)

8. Why does a corporation issue preferred stock?

A) Preferred stockholders do not have to share control with bondholders
B) Common stockholders can increase their power
C) Common stockholders do not have to share control with bondholders
D) Common stockholders do not have to share control with new stockholders

9. What is tax avoidance?

A) A corporation carefully plans activities, preventing tax liabilities from being created
B) A corporation illegally does not pay taxes, when an activity has created this liability
C) A corporation bribes government officials, so government reduces the corporation’s taxes
D) Corporations pass all tax liabilities onto stockholders and bondholders

10. If a stockholder is not happy the way his corporation manages its business, what can he do?

A) Stockholder can vote for new board of directors at next stockholders meeting
B) Stockholder can sell his shares
C) Stockholder can complain to the board of directors
D) All of the above are valid options

11. What is the purpose of a corporation?

A) To earn profits
B) To maximize costs and minimize revenue
C) To help government improve society
D) To pay taxes and employ workers

12. What is a disadvantage of a corporation?

A) The corporation has continuity of life
B) The corporation has mutual agency relationship
C) The corporation is heavily regulated
D) The corporation pays taxes once

13. What is a disadvantage of a corporation?

A) Government taxes corporation’s profits twice
B) The corporation has mutual agency relationship
C) Investors can easily sell or invest in corporations
D) Corporations can theoretically live forever

14. What is a bond?

A) Piece of ownership of a corporation
B) A bank loan
C) A loan, where investors can re-sell on secondary market
D) A document that establishes the corporation

15. Which factor increases the complexity of a corporation, such as having many subsidiaries?

A) Regulations
B) Taxes
C) Lawsuits
D) All of the above

Lesson 2 - Financial Statements and Cash Flow

16. Which financial statement would you find revenue?

A) Income Statement
B) Balance Sheet
C) Changes in Owner’s Equity
D) Statement of Cash Flow

17. Which financial statement would you find an expense?

A) Income Statement
B) Balance Sheet
C) Changes in Owner’s Equity
D) Statement of Cash Flow

18. Which financial statement would you find an asset?

A) Income Statement
B) Balance Sheet
C) Changes in Owner’s Equity
D) Statement of Cash Flow

19. Which financial statement would you find a liability?

A) Income Statement
B) Balance Sheet
C) Changes in Owner’s Equity
D) Statement of Cash Flow

20. Which financial statement would you find contributed capital from stockholders?

A) Income Statement
B) Balance Sheet
C) Changes in Owner’s Equity
D) Statement of Cash Flow

21. Which financial statement would you find retained earnings?

A) Income Statement
B) Balance Sheet
C) Changes in Owner’s Equity
D) Statement of Cash Flow

22. Which financial statement lists the cash inflows and outflows of a business?

A) Income Statement
B)Balance Sheet
C) Changes in Owner’s Equity
D) Statement of Cash Flow

23. Which financial statement shows changes to the equity account?

A) Income Statement
B) Balance Sheet
C) Changes in Owner’s Equity
D) Statement of Cash Flow

24. Which item below is an asset?

A) Cash
B) Interest Payable
C) Salaries owed to workers
D) Accounts Payable

25. Which item below is an asset?

A)Cash
B) Equipment
C) A building
D) All items are assets

26. Which item below is a liability?

A) Accounts Payable
B) Cash
C) Copyright
D) A building

27. What is accounts receivable?

A) Money owed to the business from customers
B) A business owes money to the customers
C) A business owes money to a bank
D) A business owes money to government

28. Which item below is an asset?

A) Contributed Capital
B) Retained Earnings
C) Copyright
D) Notes Payable

29. Which item below is a liability?

A) Cash.
B) Equipment.
C) Taxes Payable.
D) Copyright.

30. Which item below is an asset?

A) Notes Payable
B) Accounts Payable
C) Interest Payable
D) Patent

31. Which item below is a liability?

A) Salaries owed to workers
B) Patent
C) Copyright
D) A building

32. What is contributed capital?

A) Amount held in the retained earnings account.
B) The amount of stock purchased by stockholders.
C) Net assets, after liabilities are deducted
D) Total equity invested by proprietor.

33. If 30% of a corporation’s profits is paid to stockholders as dividends, where does the remainder of profits go?

A) The Board of Directors
B) Retained Earnings
C) Contributed Capital
D) Accounts Receivable

34. What is long-term debt?

A) Debt longer than a year and it is usually bonds
B) Debt shorter than a year and it is usually notes payable
C) Debt owed to the government
D) Debt owed to stockholders

35. Which items are current assets?

A) Merchandise inventory
B) Cash
C) Accounts receivable
D) All items are current assets

36. If total assets are $200 and total liabilities are $150, what is the amount of equity on the balance sheet?

A) $200
B) $150
C) $50
D) Cannot be determined from the information

37. If total assets are $500, total liabilities are $200, and contributed capital is $200, how much is recorded under retained earnings?

A) $500
B) $200
C) $100
D) Cannot be determined from the information

38. If total current assets are $800 and total current liabilities are $400, what is the current asset to current liability ratio?

A) 0.5
B) 1.0
C) 2.0
D) Cannot be determined from the information

39. Which item causes a cash inflow?

A) Cash sales
B) Company pays salaries
C) Company purchased land
D) Company pays dividends

40. Which item causes a cash inflow?

A) Accounts receivable increases
B) Merchandise inventory decreases
C) Company pays expenses
D) Company pays dividends

41. Which item causes a cash inflow?

A) Accounts receivable increases
B) Company pays dividends
C) Company pays salaries
D) Company issues new stock

42. Which item causes a cash inflow?

A) Company issues new bonds
B) Company retires outstanding bonds
C) Company pays back stock
D) Company pays dividends

43. Which item causes a cash outflow?

A) Customers pay account receivables
B) Company purchases stocks and bonds for investment
C) Accounts payable increases
D) Company sells property and equipment

44. Which item causes a cash outflow?

A) Customers pay account receivables
B) Accounts payable increases
C) Merchandise inventory increases
D) Company sells property and equipment

45. Which item causes a cash outflow?

A) Company pays dividends
B) Company sells land
C) Merchandise inventory decreases
D) Customers pay their accounts receivable

46. Which item causes a cash outflow?

A) Customers pay account receivables
B) Company purchases stocks and bonds for investment
C) Accounts payable increases
D) Company sells property and equipment

47. Which item causes a cash outflow?

A) Cash sales
B) Accounts receivable decreases
C) Merchandise inventory decreases.
D) Company pays for an expense.

48. How does depreciation expense impact cash flow?

A) Causes a cash inflow.
B) Causes a cash outflow.
C) Internal transaction; has not impact on cash flow.
D) Do not have enough information.

Questions 49, 50, 51, 52, and 53 refer to the Balance sheet below:

Income Statement
Sales $25,000
Costs 20,000
Depreciation 2,000
Earnings Before Interest and Taxes (EBIT) $3,000
Interest (on bonds) 500
Taxable Income 2,500
Taxes (20%) 500
Net Income 2,000
Dividends paid $1,500

49. How much profit did this company earn?

A) $1,500
B) $2,000
C) $3,000
D) $25,000

50. Please calculate the operating cash flow?

A) $4,500
B) $3,000
C) $1,500
D) $2,000

51. How much should retained earnings increase?

A) $500
B) $1,500
C) $3,000
D) $2,500

52. If the corporation debt on bonds increased by $10,000, what is the cash flow to bondholders?

A) $10,000
B) -$10,000
C) $9,500.
D) -$9,500

53. If no new stock is issued, what is the cash flow to stockholders?

A) $1,500
B) -$1,500
C) $2,000
D) -$2,000

Lesson 3 - Long-term Financial Planning

Questions 54, 55, 56, and 57 refer to the Income Statement below:

Income Statement
Original
Sales $15,000
Costs $13,500
Net Sales $1,500
Taxes (20%) $300
Net Income $1,200

54. Sales is projected to increase by 15%. How much sales should be recorded on the pro forma?

A) $17,250
B) $15,000
C) $2,250
D) $1,200

55. How much costs should be recorded on the pro forma, if we assume costs are 85% of sales?

A) $13,500
B) $15,000
C) $14,662.50
D) $15,525

56. If this company pays 30% of its net income as dividends, how much is expected to go to retained earnings?

A) $2,070
B) $621
C) $1,449
D) Cannot be determined.

57. Please calculate the profit margin.

A) 100%
B) 12%
C) 10%
D) 8%

58. What is the plug?

A) The financing of plant expansion from net income.
B) The financing of plant expansion from total assets.
C) The financing of plant expansion from retained earnings.
D) The financing of plant expansion from new debt and liabilities.

Questions 59, 60, and 61 refer to the Balance sheet below:

Balance Sheet
Original
Assets Liabilities and Equity
Cash $100 Account Payable $300
Accounts Rec. 100 Notes Payable 100
Inventory 200 Total Current Liabilities $400
Total Current Assets $400 Long-term Debt 110
Net Fixed Assets 600 Common Stock 400
Retained Earnings 90
Total $1,000 Total $1,000

59. Looking at the Balance Sheet, what is the current assets to current liabilities ratio?

A) 1.0
B) 2.0
C) 0.5
D) Cannot be determined from the balance sheet.

60. If total assets are projected to increase by $500, what is the maximum amount of new debt the corporation borrows? Assume the corporation borrows a maximum of 50% of total assets.

A) $400
B) $750
C) $240
D) Not enough information is given.

61. If total current assets to total current liabilities is a maximum of 2, what is the maximum amount of new current liabilities the corporation is willing to borrow? Assume projected current assets will be $800.

A) $800
B) $400
C) Cannot borrow from current liabilities; ratio already met.
D) Do not have enough information.

62. If the plow back ratio is 0.4, growth rate of sales is 10%, the profit margin is 0.40, and total sales are $5,000, then how does retained earnings change?

D RE = S(1 + g) x PM x b

A) $2,000
B) $3,000
C) $1,320
D) $880

63. If the plow back ratio is 0.9, growth rate of sales is 20%, the profit margin is 0.50, and total sales are $10,000, then how does retained earnings change?

A) $5,400
B) $54,000
C) $600
D) Do not have enough information

64. What is the maximum growth rate in sales if the corporation cannot raise any debt? The corporation pays 35% in dividends and the Return on Assets is 1.2.

max. growth rate = ROA x b / (1 – (ROA x b))

A) 72.4%
B) 354.55%
C) 35%.
D) Cannot be determined from information given

65. What is the maximum growth rate in sales if the corporation cannot raise any debt? The corporation pays 10% in dividends and the Return on Assets is 0.3.

A) 100%
B) 10%
C) 97%
D) Cannot be determined from information given

Lesson 4 - Time Value of Money

66. If you deposit $1 into a savings account that earns 3% APR, how much will you have in 10 years?

A) $1.00
B) $1.34
C) $2.00
D) Cannot be determined from information given

67. If you deposit $100 into a savings account that earns 100% APR, how much will you have in one year?

A) $100
B) $200
C) $1,000
D) Cannot be determined from information given

68. You are expecting to receive $50 million dollars in one year, what is this amount worth to you today, if the market interest rate is 20% APR?

A) $2.5 million
B) $41.67 million
C) $50 million
D) Cannot be determined from information given

69. You are expecting to receive $1,000 dollars in two years, what is this amount worth to you today, if the market interest rate is 10% APR?

A) $1,000
B) $826.45
C) $0
D) Cannot be determined from information given

70. What is APR?

A) All interest rates are defined in annual terms
B) All interest rates are defined in semi-annual terms
C) All interest rates are defined in monthly terms
D) Cannot be determined from information given

71. You are expecting to receive $500 dollars in one month, what is this amount worth to you today, if the market interest rate is 12% APR?

A) $446.43
B) $495.05
C) $500.00
D) Cannot be determined from information given

72. If the interest rate is 12% APR, which interest rate would you put in the net present value, if cash flows are monthly?

A) 0.01
B) 0.12
C) 0.24
D) Cannot be determined from the information given

73. If the interest rate is 10% APR, which interest rate would you put in the net present value, if cash flows are semi-annually?

A) 0.00833
B) 0.05
C) 0.10
D) Cannot be determined from the information given

74. Looking at the amortization table below, what is this person’s monthly payment?

A) $965.02
B) $833.33
C) $131.69
D) Cannot be determined from the information
Payment No. Payment Interest Principal Balance
1 $965.02 833.33 131.69 99,868.31
2 $965.02 832.24 132.79 99,735.53
3 $965.02 831.13 133.89 99,601.63
4 $965.02 830.01 135.01 99,466.63
5 $965.02 828.89 136.13 99,330.49
6 $965.02 827.75 137.27 99,193.23
7 $965.02 826.61 138.41 99,054.81
8 $965.02 825.46 139.56 98,915.25
9 $965.02 824.29 140.73 98,774.52
10 $965.02 823.12 141.9 98,632.62

75. Looking at the amortization table, how much interest does this person pay for Payment 8?

A) $965.02
B) $825.46
C) $139.56
D) Cannot be determined from the information

76. Looking at the amortization table, how much does this person owe the bank after he pays Payment 10?

A) $98,632.62
B) $965.02
C) $100,000.00
D) Cannot be determined from the information

77. How does the Net Present Value affect future cash flows?

A) Future cash flows are weighted towards the present
B) Future cash flows are weighted towards the future
C) Net present value has not impact on cash flows
D) Need more information to answer this question

78. When a bank grants a 30-year loan for a property and the property is the collateral, what kind of loan is this?

A) Mortgage
B) Commercial bank loan
C) A bond
D) Corporate stock

79. If you received a loan and make the exact monthly payment every month, where the payment covers the principal and interest, what kind of loan is this?

A) Stock
B) Discount bond
C)Coupon bond
D) Fixed-payment loan

80. If you received a mortgage for $1,000 for 1 year at 30% annual interest rate with only one payment, how much is your payment?

A) $1,000
B) $1,300
C) $591.72
D) $1,690

81. If you received a mortgage for $10,000 for 1 year at 10% APR interest rate with only one payment, how much is your payment?

A) $1,000
B) $10,000
C) $11,000
D) Cannot be determined from the information given

Lesson 5 - Valuation of Bonds

82. You bought a discount bond with a face value of $10,000 with a maturity of 1 year. What market price do you pay for the bond if the market interest rate is 30% APR?

A) $9,708.74
B) $3,000
C) $13,000
D) $7,692.31

83. You bought a discount bond with a face value of $2,000 with a maturity of 6 months. What market price do you pay for the bond if the market interest rate is 10% APR?

A) $2,000
B) $1,818.18
C) $2,200
D) $1,904.76

84. You bought a discount bond with a face value of $2,000 with a maturity of 1 year. What is your rate of return, if you bought this bond for $1,500?

A) 0.33%
B) 3.33%
C) 33.33%
D) 333.33%

85. You bought a discount bond with a face value of $10,000 with a maturity of 6 months. What is your rate of return in APR, if you bought this bond for $9,500?

A) 0.526%
B) 5.26%
C) 1.05%
D) 10.5%

86. You bought a bond with a face value of $1,000 with a stated interest rate of 10% with a maturity of 1 year. The interest is paid yearly. What market price do you pay for the bond if the market interest rate is 5% APR?

A) $1,047.62
B) $1,100
C) $952.38
D) $1,000

87. You bought a bond with a face value of $10,000 with a stated interest rate of 20% with a maturity of 1 year. The interest is paid yearly. What market price do you pay for the bond if the market interest rate is 20% APR?

A) $9,090.91
B) $10,000
C) $12,000
D) $2,000

88. Which bond does not have an interest rate stated on it?

A) Coupon bond
B) Discount bond
C) Stock
D) Perpetuity (or consul) bond

89. Which bond allows the investor to convert bond into stock?

A) Coupon bond
B) Discount bond
C) Convertible bond
D) Registered bond

90. If a corporation keeps the names and addresses of all bondholders, what type of bond is this?

A) Bearer bond
B) Discount bond
C) Convertible bond
D) Registered bond

91. If a corporation is financially strong and does not pledge assets for the bonds, what type of bond is this?

A) Bearer bond
B) Debenture bond
C) Convertible bond
D) Registered bond

92. Which bond in theory never matures?

A) Perpetuity (or consul) bond
B) Debenture bond
C) Convertible bond
D) Registered bond

93. When the market interest rate increases, what happens to bond market prices?

A) The market price of bonds will also increase, when they are discounted.
B) This increases the liquidity of the bond market, because more people enter the market.
C) Higher interest rates cause the maturity of bonds to become shorter.
D) The market price of bonds will decrease, when they are discounted.

94. If you bought a perpetuity bond that pays $100 interest every year, what is the market price of the bond, if the market interest rate is 5%?

A) $100
B) $1,000
C) $2,000
D) $4,000

95. If you bought a perpetuity bond that pays $10 interest every year, what is the market price of the bond, if the market interest rate is 20%?

A) $10
B) $25
C) $50
D) $100

96. If you have a one-year bond and a ten-year bond and the bonds are exactly the same except the maturity, what happens to these bond prices, if the market interest rate falls?

A) The bond price increases exactly the same amount of both bonds
B) The ten-year bond prices increases more than the one-year bond price
C) The one-year bond prices increases more than the ten-year bond price
D) Need more information to answer this question

97. If you bought a financial instrument and hold the instrument until it matures, what is the total rate of return?

A) The rate of return equals the market interest rate.
B) The rate of return equals the market interest rate plus the capital loss.
C) The rate of return equals the market interest rate plus the capital gain.
D) The rate of return cannot be determined in this case.

98. You bought a financial instrument for $1,000, earned $100 interest, and resold it for $800 exactly one year later, what is your total rate of return on this investment?

A) -10%
B) -5%
C) 0%
D) 10%

99. You bought a financial instrument for $10,000, earned $200 interest, and resold it for $11,000 exactly one year later, what is your total rate of return on this investment?

A) -12%
B) -6%
C) 6%
D) 12%

100. If you bought a financial instrument and resold it for a lower price, what is this price difference called?

A) The yield to maturity
B) The rate of return
C) Capital loss
D) Capital gain

101. What is the difference between a stock and bond?

A) Stock is ownership while bond is a loan
B) Stock is a loan while bond is ownership
C) Both stocks and bonds are ownership in a corporation
D) Stock is a one-year loan, while bonds are one year or more

102. Why issue bonds instead of new common stock?

A) Bonds pay interest, which lowers net income and taxes
B) Bonds do not cause stockholders to lose power
C) Issuing bonds may allow stockholders to earn more dividends per share
D) All items above are true

103. What is a difference between notes payable and a bond?

A) A bond is ownership while investors buy notes payable from markets
B) Bond is a bank loan while investors buy notes payable from markets
C) Notes payable is ownership while bond is a loan
D) Notes payable is a bank loan while investors buy bonds from markets

104. If you bought a financial instrument and resold it for a higher price, what is this price difference called?

A) The yield to maturity
B) The rate of return
C) Capital loss
D) Capital gain

105. If you bought a financial instrument and held it to maturity, what is “r” called in the present value formula?

A) The yield to maturity
B) The rate of return
C) Capital loss
D) Capital gain

106. If you bought a financial instrument and re-sold it before maturity, what is “r” called in the present value formula?

A) The yield to maturity
B) The rate of return
C) Capital loss
D) Capital gain

Lesson 6 - Valuation of Stocks

107. Which of the following institutions help corporations issue new stocks or new bonds?

A) Dow Jones Industrial Average
B) Organized exchange, like the New York Stock Exchange
C) Investment banks
D) Corporation

108. When an investment banker informs family and friends about a corporation merger and the corporate stock is expected to rise, what is this called?

A) Underwriting
B) Insider information
C) Syndicate
D) Dow Jones Industrial Average

109. When an investment banker helps a corporation issue new securities, what is this process called?

A) Underwriting
B) Syndicate
C) Dividends
D) Dow Jones Industrial Average

110. When a market does not have a physical location and the dealers and brokers are connected to each other by telephones and computers, what kind of market is this?

A) Over-the-counter market
B) Exchange market
C) Syndicates
D) The Dow Jones Industrial Average

111. When a market has a physical location and buyers and sellers meet face-to-face, what kind of market is this?

A) Over-the-counter market
B) Exchange market
C) Syndicates
D) The Dow Jones Industrial Average

112. Why are stock market crashes so bad?

A)They can cause banks to earn enormous profits
B) They bankrupt many financial institutions
C) They cause stock prices to increase too fast
D) They cause the economy to grow to fast

113. What is a benefit of the Dow Jones Industrial Average?

A) The Dow provides fast information, as information is updated every second
B) The government calculates the Dow, manipulating the number to prevent financial crisis
C) The Dow helps corporations earn billions of dollars in profits
D) The Dow helps corporations issue new stocks and bonds

114. In the area of investment banking, what is a syndicate?

A) Several investment banks work together to sell new stocks and bonds
B) The mafia work together to increase crime and profits
C) An investment bank works with government to create new corporations
D) The syndicate helps the government regulate the financial markets

115. What is a stock market crash?

A) Stock prices rapidly increase and keep increasing
B) Stock prices remain constant and do not change
C) Stock prices never crash
D) Stock prices rapidly fall in a short time period

116. If a corporation offers a stock split, how does this change stockholders’ power?

A) Stockholders’ power increases
B) Stockholders’ power decreases
C) No impact on stockholders power, every stockholder retains the same percentage of stock
D) Need more information to answer this question

117. If a corporation pays a dividend of $5, the rate of return is 12%, and dividends grow at 2% per year, what is the market price of this stock per share?

A) $50.00
B) $41.67
C) $250.00
D) No answer is correct

118. If a corporation pays a dividend of $2, the rate of return is 7%, and dividends grow at -3% per year, what is the market price of this stock per share? (The dividend growth rate is negative)

A) $66.67
B) $50.00
C) $20.00
D) No answer is correct

119. If a corporation pays a dividend of $1, the rate of return is 10%, and dividends grow at 0% per year, what is the market price of this stock per share?

A) $5.00
B) $100.00
C) $10.00
D) No answer is correct

Lesson 7 - Currency and Commodity Derivatives

120. When a buyer and seller negotiate a price today, but the actual exchange of money for the financial security occurs at a future date, what is this called?

A) Marking to mark
B) Forward transactions
C) Option premium
D) Spot transactions

121. When a buyer has the obligation to pay for an asset as set forth in the futures contract, what is this called?

A) Put option
B) Call option
C) Long position
D) Short position

122. When the market price of futures contracts changes, investors experience gains and losses each day. What is the process called, when investors have to settle their gains and losses as required by the exchange?

A) Put option
B) Call option
C) Option premium
D) Marking to market

123. When investors buy and sell securities in order to lower risk or use long-term investment strategies, what is this called?

A) Hedging
B) Option premium
C) Speculation
D) Marking to market

124. When investors buy and sell securities in order to gain quick profits, what is this called? This is a form of gambling.

A) Hedging
B) Option premium
C) Speculation
D) Marking to market

125. What kind of derivative contract gives an investor the option to buy or sell a financial security, what is this called?

A) Spot market contract
B) Options contract
C) Option premium
D)Marking to market

126. What kind of contract gives an investor the right to sell an asset in the future?

A) Call option
B) Put option
C) Option premium
D) Hedging

127. What kind of contract gives an investor the right to buy an asset in the future?

A) Call option
B) Put option
C) Option premium
D) Hedging

128. Investors pay a fee in order to buy an option. What is this fee called?

A) Option premium
B) Hedging
C) Call option
D) Put option

129. Which answer below increases the size of an option premium?

A) The financial institution that issues the option. More prestigious institutions charge higher option premiums.
B) The asset’s prices are very stable and do not fluctuate; options become more important for speculation.
C) The interest rates are very stable and do not fluctuate; options become more important for speculation.
D)If the asset’s price fluctuates greatly, causing a higher probability that the option is exercised.

130. Where do the price of derivatives receive (i.e. derive) their value from?

A) The derivatives obtain their value from the market value of the assets that are specified in the derivatives contract
B) The investors’ behavior determines the derivatives value in the derivatives market
C) The demand and supply determine the derivatives value in the derivatives market
D) The officials who manage the derivatives exchanges determine the derivatives value

131. Which item does derivatives help prevent?

A) Currency exchange rate risk
B) Interest rate risk
C) Reduces price uncertainty
D) All items listed prevents risk

132. What is the difference between American and European options?

A) They differ when investors can exercise them
B) They are exactly the same
C) They differ in the marking to mark requirements
D) American options increase price uncertainty, while European options do not

133. If a futures contract states that petroleum is $90 per barrel and the spot price is $99 per barrel, who pays the broker the marking-to-mark requirement?

A) The buyer of this contract
B) The seller of this contract
C) Both the buyer and seller of this contract
D) There is no marking to mark requirement for futures contract

134. If a futures contract states that petroleum is $85 per barrel and the spot price is $75 per barrel, who pays the broker the marking-to-mark requirement?

A) The buyer of this contract
B) The seller of this contract
C) Both the buyer and seller of this contract
D) There is no marking to mark requirement for futures contract

135. A bank sells a futures contract for tenge to Proctor and Gamble for 120 tenge per $1. Who pays the marking-to-mark requirement, if the tenge appreciates?

A) Proctor and Gamble
B) The bank
C) Both the bank, and Proctor and Gamble
D) There is no marking to mark requirement for futures contract

136. If a European call option states that the strike price of petroleum is $85 per barrel and the spot price is $90 per barrel on the expiration date, what will the investor do?

A) The investor exercises the call option
B) The investor does not exercise the call option
C) Have no idea
D) This is a trick question; an investor cannot exercise a European option on the expiration date

137. If a European call option states that the strike price of petroleum is $80 per barrel and the spot price is $75 per barrel on the expiration date, what will the investor do?

A) The investor exercises the call option
B) The investor does not exercise the call option
C) Have no idea
D) This is a trick question; an investor cannot exercise a European option on the expiration date

138. If a European put option states that the strike price of petroleum is $85 per barrel and the spot price is $80 per barrel on the expiration date, what will the investor do?

A) The investor exercises the put option
B) The investor does not exercise the put option
C) Have no idea
D) This is a trick question; an investor cannot exercise a European option on the expiration date

139. If a European put option states that the strike price of petroleum is $90 per barrel and the spot price is $100 per barrel on the expiration date, what will the investor do?

A) The investor exercises the put option
B) The investor does not exercise the put option
C) Have no idea
D) This is a trick question; an investor cannot exercise an European option on the expiration date

140. A bank sells a European call option for tenge to Proctor and Gamble for a strike price of 120 tenge per $1. Will Proctor and Gamble exercise this option on the expiration date, if the tenge appreciates?

A) Proctor and Gamble exercises the call option
B) Proctor and Gamble does not exercise the call option
C) Have no idea
D) This is a trick question; an investor cannot exercise an European option on the expiration date

Lesson 8 - Rates of Return and Yield Curve

141. What is the average rate of return if the rate of return is 10% for Year 1 and 11% for Year 2?

A) 10.5%
B) 110.5%
C) 122.1%
D) Cannot be determined

142. What is the average rate of return if the rate of return is 100% for Year 1 and 10% for Year 2?

A) 100%
B) 55%
C) 48.3%
D) Cannot be determined

143. What is the average rate of return if the rate of return is 10% for Year 1 and -10% for Year 2?

A) 0%
B) -0.5%
C) 0.99%
D) Cannot be determined

144. What is the annualized rate of return if you invest $100 today and receive $200 in one year?

A) 1%
B) 100%
C) -100%
D) Cannot be determined

145. What is the annualized rate of return if you invest $1,000 today and receive $1,100 in two years?

A) 10%
B) -10%
C) 4.88%
D) Cannot be determined

146. What is the present value of a project if you invest $100 today, receive $1,100 in one year, and the rate of return is 10%?

A) 10%
B) $0
C) $900
D) Cannot be determined

147. What is the present value of a project if you invest $1,000 today, receive $1,100 in one year, and the rate of return is 10%?

A) 10%
B) $0
C) $1,000
D) Cannot be determined

148. If a corporation is proceeding with a project, which of the following statements are true for the net present value of the project?

A) The net present value is positive
B) The net present value is negative
C) The net present value is zero
D) The sign of net present value cannot be determined

149. What is inflation?

A) Inflation is the continuous rise in prices
B) Inflation is the continuous decrease in prices
C) Inflation increases the value of money
D) Inflation increases a project’s return over time

150. What does nominal mean?

A) A number has been adjusted for inflation
B) A number has not been adjusted for inflation
C) A number that has been adjusted by the Consumer Price Index
D) A number that has been adjusted by the GDP deflator

151. What is the real rate of return for a corporate project, if inflation is 10% and the nominal rate of return for the project is 5%

A) 15%
B) 10%
C) 5%
D) -5%

152. What is the real rate of return for a corporate project, if inflation is 3% and the nominal rate of return for the project is 5%?

A) 2%
B) -2%
C) 8%
D) 0%

153. Which U.S. government security has a maturity less than one year?

A) Treasury Bills
B) Treasury Notes
C) Treasury Bonds
D) Treasury Stock

154. Which U.S. government security has a maturity greater than 10 years?

A) Treasury Bills
B) Treasury Notes
C) Treasury Bonds
D) Treasury Stock

155. Which U.S. government security has a maturity greater than 1 year but less than 10 years?

A) Treasury Bills
B) Treasury Notes
C) Treasury Bonds
D) Treasury Stock

156. What is the yield curve?

A) A graph that plots interest rates versus maturities
B) A graph that plots interest rates versus rates of returns
C) A graph that plots present value of corporate bonds versus time
D) A graph that plots corporate rates of returns versus U.S. government securities

157. What is the normal shape of a yield curve?

A) A yield curve usually has a negative slope
B) A yield curve usually is flat
C) A yield curve is usually upward sloping
D) A yield curve is a “U” shape

158. If a yield curve has a negative slope, what does this mean?

A) The economy will have strong growth
B) The economy could enter a recession
C) Long-term bonds have a higher interest rate than short-term bonds
D) Corporate bonds have lower risk than U.S. government securities

159. Which answer is regarding a 5-year corporate project and a 15-year corporate project?

A) A five-year project should have a higher rate of return than a 15-year project
B) A five-year project should have a lower rate of return than a 15-year project
C) A five-year project has the same rate of return as a 15-year project
D) Need more information to answer this question

160. If a corporation has an 8-year project, which financial security should this project be compared to?

A) A U.S. Treasury Bill
B) A U.S. Treasury Note
C) A U.S. Treasury Bond
D) The average return from the stock market

161. Which of the following is true about a risk premium?

A) Risk premium is always positive for a corporate project
B) Risk premium is always negative for a corporate project
C) Risk premium is always zero for a corporate project
D) Risk premium equals the rate of return for a corporate project

162. If you determined a rate of return for a corporate project is 10% and a comparable U.S. government security is 10%, which should you do?

A) You should proceed with the corporate project
B) You should purchase the U.S. government security
C) You could do either, because it does not matter
D) Need more information to answer this question

163. If you determined a rate of return for a corporate project is 15% and a comparable U.S. government security is 8%, which should you do?

A) You should proceed with the corporate project
B) You should purchase the U.S. government security
C) You could do either, because it does not matter
D) Need more information to answer this question

Lesson 9 - Uncertainty, Default, and Risk

164. Looking at the Table below, what is the expected outcome?

Outcome Probability
$10 0.5
$20 0.5
A) $30
B) $15
C) $0
D) Cannot be calculated from the information given

165. Looking at the Table below, what is the variance?

Outcome Probability
$10 0.5
$20 0.5
A) 15
B) 25
C) 10
D) Cannot be calculated from the information given

166. If the variance is 100, then what is the standard deviation?

A) 100
B) 50
C) 10
D) Cannot be calculated from the information given

167. Which is a problem in using variance for measuring risk?

A) Variance does not reflect risk of an investment
B) Variance does not have units
C) Variance overstates the measure of risk
D) The units for variance are squared

168. What is a loan default?

A) Borrower repays loan before maturity
B) Borrower does not pay back loan and/or interest
C) Borrower refinances loans when interest rates decrease
D) Corporation pays dividends early

169. What is a random variable?

A) Variable has different outcomes and outcomes have probabilities associated with them
B) Variable is fixed and does not change
C) Variable is adjusted for default risk
D) Variable is adjusted for inflation

170. If a person is indifferent between a sure bet and a bet that has different outcomes but the same expected return as the sure bet, what kind of investor is this?

A) Risk neutral
B) Risk adverse
C) Risk taker
D) Nervous investor

171. If you invested $100 and the expected payoff from a loan is $110 one year later, what is the expected rate of return of your investment?

A) -10%
B) 0%
C) 10%
D) 110%

172. You own a house located in an earthquake zone, what is the expected value of your house if you know the following?

Event Outcome Probability
Normal condition $100,000 0.9
Earthquake $1,000 0.1
A) $100,000
B) $101,000
C) $90,100
D) Cannot be determined from the information

173. If a person always chooses a bet that has different outcomes but higher payoffs as opposed to the sure bet, what kind of investor is this?

A) Risk neutral
B) Risk adverse
C) Risk taker
D) Nervous investor

174. You have two outcomes: Hurricane destroys your house and house remains because of good weather. If you know a probability of a hurricane is 1%, what is the chance your house remains for good weather?

A) 1%
B) 99%
C) Greater than 100%
D) Cannot be determined from the information

175. Which of the following is true about probabilities?

A) All probabilities sum to one for all outcomes
B) All probabilities sum to zero for all outcomes
C) Probabilities can be negative
D) Probabilities are can be greater than one

176. What is the reward for holding an investment that has uncertainty?

A) Variance of an investment
B) The risk premium of an investment
C) Standard deviation of an investment
D) Expected return of an investment

177. How do financial analyst measure the risk associated with an investment?

A) Standard deviation of an investment
B) The average of an investment
C) The expected return of an investment
D) The default premium of an investment

178. If you are planning to invest in bonds of a new company and a comparable U.S. government security is 5% interest, which of the following statements are true?

A) The rate of return on your investment should be 5%
B) The rate of return on your investment should be greater than 5% interest because of default risk
C) The rate of return on your investment should be less than 5%
D) The rate of return on your investment should be 0%

179. Which classification of corporate bonds do investors consider safe investments?

A) Junk bonds
B) Grade C bonds
C) Speculative bonds
D) Investment grade bonds

180. Using the Moody’s Credit Rating System for corporate bonds, which grade indicates high risk (comparable to U.S. grades of A, B, and C)?

A) C
B) Aaa
C) Aaa3
D) Baa

181. Which financial security allows investors to decompose securities into risk premium and market rate of returns?

A) Moody’s credit rating
B) Credit default swaps
C) Standard & Poor’s credit rating
D) Expected rate of return

182. Using the Standard & Poor’s credit ratings for corporations, which grade indicates low risk of default (Remember the ratings are similar to grades)?

A) C
B) CCC
C) B-
D) AAA

183. You grant a loan for $1,000 that is repaid in one year, expect a default of 10%, and expect a rate of return of 5% for the loan, what interest do you charge?

Event Outcome Probability
Loan Repaid $1,000(1 + r) 0.9
Default $0 0.1
A) 5%
B) 10%
C) 16.67%
D) Cannot be determined from the information

184. You grant a loan for $10,000 that is repaid in one year, expect a default of 50%, and expect a rate of return of 10% for the loan, what interest do you charge?

Event Outcome Probability
Loan Repaid $10,000(1 + r) 0.5
Default $0 0.5
A) 10%
B) 100%
C) 120%
D) Cannot be determined from the information

Lesson 10 - Capital Investment Decisions

185. Which costs varies with the production level of a project or factory?

A) Opportunity costs
B) Sunk costs
C) Variable costs
D) Fixed costs

186. Which costs below are an example of a fixed costs?

A) A bank loan
B) Workers’ salaries
C) Costs of materials used in production
D) Costs of energy used in production

187. Why are corporate expansions risky?

A) Projects involve small sums of money
B) Projects are expensive
C)Projects tie up money for short period of time
D) Corporations easily halt projects after the project has started

188. What is the stand-alone principal?

A) The stockholders should subsidized the project
B) Project should pay for itself by having negative net present value cash flows
C) Other corporate projects should subsidize the current project
D) Project should pay for itself by having positive net present value cash flows

189. Which cost is a historical cost and not relevant for current decision?

A) Sunk cost
B) Opportunity cost
C) Financing cost
D) Net working capital

190. Which item is important for ensuring a business has resources to operate from day to day?

A) Sunk cost
B) Opportunity cost
C) Financing cost
D) Net working capital

191. Which cost is the cost associated with the next best alternative?

A) Sunk cost
B) Opportunity cost
C) Financing cost
D) Net working capital

The questions from 192 to 201 are based on the following information

  • Sales of 30,000 units/year @ $6 per unit
  • Project costs
  • Variable cost per unit is $2
  • Fixed costs are $15,000 per year.
  • The tax rate is 20%
  • Project costs is $30,000.
  • Project life is 2 years
  • The project has a salvage value of $2,000
  • Depreciation is $14,000 per year
  • Additional net working capital is $5,000
  • The firm’s required return is 10%.

192. What are the projected sales of this project?

A) $180,000
B) $18,000
C) $105,000
D) $60,000

193. What are the projected earnings before interest and taxes?

A) $180,000
B) $18,000
C) $105,000
D) $60,000

194. This project has a salvage value, what do you do with this?

A) Salvage value is part of net working capital
B) Salvage value is part of the firm’s earnings
C) Salvage value is the last term in the net present value calculation
D) Salvage value has no impact on the project

195. The firm has a required rate of return of 10%, what does this reflect?

A) Net working capital
B) Opportunity costs of financing the project
C) Sunk costs of financing the project
D) The variable costs of financing the project

196. If the firm has earnings before interest and taxes (EBIT) of $105,000, how much taxes should this company pay?

A) $105,000
B) $50,000
C) $21,000
D) $84,000

197. If net income is $84,000, what is the operating cash flow from this project?

A) $98,000
B) $84,000
C) $70,000
D) $0

198. At the end of the second year, how much is the project worth as net assets?

A) Initial project costs of $30,000
B) Project cost is valued at $0
C) Project cost is the salvage value of $2,000
D) Project cost is the average value over the two years

199. How does the balance sheet change for the project?

A) Only by the project’s assets
B) Only by net working capital
C) By project’s assets plus net working capital
D) By project’s assets minus net working capital

200. What are the total variable costs of the project?

A) $180,000
B) $60,000
C) $75,000
D) $105,000

201. What is the first term in the net present value calculation for project cash flows?

A) Change in net working capital plus project costs
B) Only the project costs
C) Only the change in net working capital
D) Project costs minus change in net working capital

Lesson 11 - Investment Portfolios

Questions 202, 203, 204, and 205 refer to this Table

Scenario Investment A Investment B Investment C Investment D
Outcome 1 2% 3% 12% 3%
Outcome 2 1% 4% 2% 3%
Outcome 3 5% 5% 15% 3%
Outcome 4 6% 3% 8% 3%
Average 4% 4% 9% 3%
Standard Deviation 2.06% 0.83% 4.87% 0%

202. Refer to the Table, which investment has the lowest rate of return?

A) Investment A
B) Investment B
C) Investment C
D) Investment D

203. Refer to the Table, which investment has the highest rate of return?

A) Investment A
B) Investment B
C) Investment C
D) Investment D<

204. Refer to the Table, which investment has the lowest risk?

A) Investment A
B) Investment B
C) Investment C
D) Investment D

205. Refer to the Table, which investment has the highest risk?

A) Investment A
B) Investment B
C) Investment C
D) Investment D

206. If you are going to invest in a financial security that is in the table below, what is the expected rate of return if both outcomes are equally likely?

Scenario Rate of return
Outcome 1 10%
Outcome 2 2%
A)2%
B) 5%
C) 6%
D) 10%

207. If you are going to invest in a financial security that is in the table below, what is the expected rate of return if both outcomes are equally likely?

Scenario Rate of return
Outcome 1 -5%
Outcome 2 5%
A) -5%
B) 0%
C) 5%
D) 10%

208. If you are going to invest in a financial security that is in the table below, what is the variance, if both outcomes are equally likely?

Scenario Rate of return
Outcome 1 -5%
Outcome 2 5%
A) 0%
B) 25%
C) 50%
D) Cannot be determined

209. What is diversification of your investments mean?

A) An investor invests all his funds into a financial security with a low standard deviation
B) An investor invests all his funds into a financial security with a high standard deviation
C) An investor spreads his investment over a large number of financial securities
D) An investor invest his all his funds into the top two financial securities with the highest returns

210. What is the purpose of diversification of investments?

A) Increases investment risk
B) Decreases investment risk
C) Earns a higher return from investments
D) Increases the profitability of the investments

211. What is imperfect correlation?

A) Returns from projects do not move closely together
B) Returns from projects move very closely together
C) Returns from projects move very closely to a market portfolio
D) Returns from projects move perfectly with the market

212. Which case does diversification lower risk?

A) Financial securities move closely together with the market
B) Financial securities have perfect co-movement
C) Investing in securities with the highest returns
D) Financial securities have imperfect correlation

213. What is the tradeoff between rates of return and risk?

A) Higher rates of return entail higher risk
B) Higher rates of return decreases risk
C) Lower rates or return increases risk
D) There is no tradeoff between rates of return and risk

214. What is a market beta?

A) An intercept in a linear regression equation
B) A slope in a linear regression equation
C) The average return of the market
D) The standard deviation of market return

215. What is the rule for choosing a beta?

A) Choose the smallest beta to include in a portfolio
B) Choose the largest beta to include in a portfolio
C) Choose a beta greater than 2.0
D) Choose a beta that ranges between 1.0 and 2.0

Questions 216 and 218 refer to the Table below

Company Ticker Beta Mkt Cap.
AMD AMD 2.7 5.4
Kellogg Co. K 0.0 15.4
Microsoft MSFT 1.7 302.9
Sony SNE 1.1 38.2

216. Refer to the Table, which stock should you include in your portfolio?

A) AMD
B) Kellogg Co.
C) Microsoft
D) Sony

217. Refer to the Table, which stock represents the highest risk?

A) AMD
B) Kellogg Co.
C) Microsoft
D) Sony

218. What is value weight returns for an investment portfolio?

A) Investors invests in a portfolio with different mixes and proportions of investments
B) Investors invests in a portfolio with the same proportion of all investments
C) Investors invests in a portfolio with one financial security
D) All answers above are correct

219. Which of the following can be averaged or weighted?

A) Standard deviation of rates of return
B) Variance of rates of return
C) Market betas
D) No correct answer is listed

220. Refer to the Table below, what is the weighted average of your portfolio?

Type Rate of return Weighted
Investment A 10% 40%
Investment B 20% 60%
A) 10%
B) 15%
C) 16%
D) 20%

221. How should you estimate the beta in the linear regression?

A) Use only recent data like data of the last 3 years
B) Use historical data that span 100 years
C) Use at least 50 years of data
D) Use data that span at least a century

Lesson 12 - Capital Asset Pricing Model (CAPM)

222. Using the Capital Asset Pricing Model, what is a project’s rate of return, if b = 2.0, average market return is 5%, and a comparable U.S. government security is 3%?

A) 2%
B) 5%
C) 7%
D) 8%

223. Using the Capital Asset Pricing Model, what is a project’s rate of return, if b = 0.5, average market return is 10%, and a comparable U.S. government security is 4%?

A) 4%
B) 7%
C) 10%
D) 14%

224. Using the Capital Asset Pricing Model, what is a project’s rate of return, if b = 1.5, average market return is 8%, and a comparable U.S. government security is 3%?

A) 3%
B) 8%
C) 10.5%
D) 12%

225. What is the equity premium?

A) Average market return minus a comparable risk free financial instrument
B) Average market return plus a comparable risk free financial instrument
C) Average market return divided by a comparable risk free financial instrument
D) Average market return multiplied by a comparable risk free financial instrument

226. Using Rule 70, if you want to double you money in 10 years, what interest rate should you money earn?

A) 7%
B) 10%
C) 70%
D) 100%

227. Using Rule 70, how many years does your investment need to double in size, if your investment is earning 5%?

A) 7 years
B) 14 years
C) 28 years
D) 100 years

228. If a return on a risk free security is 4% and your rate of return for a project is 10% using capital asset pricing model, what is the risk premium associated with this project?

A) 4%
B) 6%
C) 10%
D) 14%

229. If your risk premium is 5%, risk free return is 3%, and inflation is 3%, what should be the minimal rate of return for this project?

A) 5%
B) 6%
C) 11%
D) 15%

230. Which statement is true about the Capital Asset Pricing Model?

A) Very popular method with executives
B) Not a very popular method with executives
C) This model tends to be very accurate
D) There is no difference between large and small companies with this model

231. Which statement is true about the Capital Asset Pricing Model?

A) Experts are always correct
B) Not a very popular method with executives
C) Financial analysts know the true betas
D) Large companies have smaller returns than smaller companies with this model

232. Which statement is true about the Capital Asset Pricing Model?

A) This model tends to be very accurate
B) Not a very popular method with executives
C) Model does not distinguish between high debt and low debt companies
D) There is no difference between large and small companies with this model

233. How do you use the Capital Asset Pricing Model to evaluate a cash flow for a possible corporate project?

A) The rate of return from the model is the future payments of the cash flow
B) The rate of return from the model is used as the rate of return for net present value
C) An investor cannot use the rate of return from the model in discounting cash flows\
D) No answer is correct

234. If your risk premium is 10% and a return from a risk free investment is 5%, what is the minimum rate of return for your investment or project?

A) 0%
B) 5%
C) 10%
D) 15%

Lesson 13 - Theory of the Firm (No lecture notes are available)

235. What should managers of a corporation do?

A) Maximize share value
B) Maximize the corporation’s value
C) Minimize share value
D) Minimize the influence of stockholders

236. Which of the following statements are true?

A) If the firm takes on more debt, the debt becomes riskier and the cost of capital for the debt increases.
B) If the firm takes on more debt, the equity becomes riskier and the cost of capital for the equity increases.
C) The firm also becomes riskier when the firm takes on more debt, which must mean that the firm’s cost of capital increases.
D) All statements above are correct

237. The formula for the Weight Average Costs of Capital (WACC) is below. If a corporation issues 50% bonds with a return of 5%, and 50% stocks with a return of 10%, what is the average rate of return for the corporation’s capital?

A) 5%
B) 7.5%
C) 10%
D) 15%

238. If a corporation issues 75% bonds with a return of 10%, and 25% stocks with a return of 16%, what is the average rate of return for the corporation’s capital?

A) 0%
B) 10%
C) 11.5%
D) 16%

239. If a corporation issues 75% bonds with a beta of 0.5, and 25% stocks with a beta of 2.0, what is the average beta for this firm’s capital?

A) 0.0
B) 0.5
C) 0.875
D) 2.0

240. If a corporation issues 0% bonds with a beta of 1.0, and 100% stocks with a beta of 0.2, what is the average beta for this firm’s capital?

A) 0.2
B) 1.0
C) 1.2
D) 12

Answers:

1. D 2. A 3. A 4. B 5. D 6. C 7. C 8. D 9. A 10. D
11. A 12. C 13. A 14. C 15. D 16. A 17. A 18. B 19. B 20. B
21. B 22. D 23. C 24. A 25. D 26. A 27. A 28. C 29. C 30. D
31. A 32. B 33. B 34. A 35. D 36.C 37. C 38. C 39. A 40. B
41. D 42. A 43. B 44. C 45. A 46 B 47. D 48. C 49. B 50. A
51. A 52. D 53. A 54. A 55. C 56. C 57. B 58. A 59. A 60. C
61. C 62. D 63. A 64. B 65. A 66. B 67. B 68. B 69. B 70. A
71. B 72. A 73. B 74. A 75. B 76. A 77. A 78. A 79. D 80. B
81. C 82. D 83. D 84. C 85. D 86. A 87. B 88. B 89. C 90. D
91.B 92. A 93. D 94. C 95. C 96. B 97. A 98. A 99. D 100. C
101. A 102. D 103. D 104. D 105. A 106. B 107. C 108. B 109. A 110. A
111. B 112. B 113. A 114. A 115. D 116. C 117. A 118. C 119. C 120. B
121. C 122. D 123. A 124. C 125. B 126. B 127. A 128. A 129. D 130. A
131. D 132. A 133. B 134. A 135. B 136. A 137. B 138. A 139. B 140. A
141. A 142. C 143. B 144. B 145. C 146. C 147. B 148. A 149. A 150. B
151. D 152. A 153. A 154 C 155. B 156. A 157. C 158. B 159. B 160. B
161. A 162. B 163. A 164. B 165. B 166. C 167. D 168. B 169. A 170. A
171. C 172. C 173. C 174. B 175. A 176. D 177. A 178. B 179. D 180. A
181. B 182. D 183. C 184. C 185. C 186. A 187. B 188. D 189. A 190. D
191. B 192. A 193. C 194. C 195. B 196. C 197. A 198. C 199. C 200. B
201. A 202. D 203. C 204. D 205. C 206. C 207. B 208. B 209. C 210. B
211. A 212. D 213. A 214. B 215. A 216. B 217. A 218. A 219. C 220. C
221. A 222. C 223. B 224. C 225. C 226. A 227. B 228. B 229. C 230. A
231. D 232. C 233. B 234. D 235. B 236. C 237. B 238. C 239. C 240. A
 

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