Deck 1: Empirical Perspectives on the Financial Characteristics of Publicly Traded Us Nonfinancial Firms

Question 1

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%

Answer 1

5.9%

Question 2

Which category of liabilities & equities had the smallest proportion in every year from 1980- 2000?

A)current liabilities
B)debt
C)other non-current liabilities
D)common stock
E)preferred stock

Answer 2

preferred stock

Question 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

Answer 3

Merger or acquisition

Question 4

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:

Question 5

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.

Question 6

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

Question 7

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.

Question 8

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).

Question 9

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.

Question 10

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

Question 11

The ownership structures of most publicly traded U.S.nonfinancial firms is better characterized by the term:

A)closely held
B)diffuse

Question 12

For public U.S.nonfinancial firms in composite, the fractions of liabilities (current plus non- current), and equities (all in book values, year-end 2000) are approximately: