Category: Solved Questions

Question 1

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option below would be an acceptable revision of the underlined selection?

 

Vietnam Memorial Wall: a beautiful and lesser-known memorial

Vietnam Memorial Wall; a beautiful and lesser-known memorial

Vietnam Memorial Wall a beautiful and lesser-known memorial

No revision is necessary.

 

Question 2

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option below would be an acceptable revision of the underlined selection?

 

holder in hand none of the sculptures

holder in hand, but none of the sculptures

holder in hand because none of the sculptures

No revision is necessary.

 

 

 

Question 3

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option below would be an acceptable revision of the underlined selection?

 

environmental park that occupies 7.5 acres. It is the Franklin Delano Roosevelt Memorial.

environmental park, that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial.

environmental park that occupies 7.5 acres it is the Franklin Delano Roosevelt Memorial.

No revision is necessary.

 

Question 4

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option(s) below would be an acceptable revision of the underlined selection?

 

commissioned to design the memorial. He is a

commissioned to design the memorial; he is a

Both revisions are acceptable.

No revision is necessary.

 

Question 5

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option(s) below would be an acceptable revision of the underlined selection?

 

respected environmental designer; who has worked

respected environmental designer: who has worked

Both revisions are acceptable.

No revision is necessary.

 

Question 6

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option below would be an acceptable revision of the underlined selection?

 

his four terms of office: with trees

his four terms of office with trees

his four terms of office. With trees

No revision is necessary.

 

Question 7

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option(s) below would be an acceptable revision of the underlined selection?

 

Great Depression; the second room

Great Depression, while the second room

Both revisions are acceptable.

No revision is necessary.

 

Question 8

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option(s) below would be an acceptable revision of the underlined selection?

 

fireside chats, and the third room

fireside chats the third room

fireside chats; the third room

All are acceptable revisions.

 

Question 9

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option(s) below would be an acceptable revision of the underlined selection?

 

uncertainties of war and the fourth

uncertainties of war; the fourth

Both revisions are acceptable.

No revision is necessary.

 

Question 10

 

The paragraph contains several comma splices and fused sentences. Decide if the underlined selection needs to be revised or if it is correct as is.

 

While most visitors to Washington, D.C., visit the well-known memorials, including the Washington Monument, the Lincoln and Jefferson memorials, and the more recent Vietnam Memorial Wall, a beautiful and lesser-known memorial is an environmental park that occupies 7.5 acres, it is the Franklin Delano Roosevelt Memorial. In 1974, Lawrence Halprin was commissioned to design the memorial, he is a respected environmental designer who has worked on restoration projects and designs in San Francisco, Seattle, and even Jerusalem. The FDR Memorial has four outdoor galleries, or rooms, that represent his four terms of office, with trees, waterfalls, sculptures, and pools defining the spaces. The first room represents FDR’s first term in the midst of the Great Depression, the second room represents his leadership of hope through his fireside chats, the third room represents the difficulties and uncertainties of war, the fourth room represents a brief moment of peace before his death in office. Although Roosevelt himself disliked being seen in his wheelchair, one of the sculptures represents him in his chair. He was a chain smoker who was often seen with his cigarette holder in hand, none of the sculptures include his cigarette. However, he would have probably appreciated the sculpture with his beloved dog, Fala.

 

Which option below would be an acceptable revision of the underlined selection?

in his wheelchair; one of the sculptures

in his wheelchair. One of the sculptures

in his wheelchair: one of the sculptures

No revision is necessary.

The twenty-seven books that comprise the Christian Scriptures, are called by
Christians the ____________ to distinguish it from the Hebrew Bible.

The union of the Father, the Son, and the Holy Ghost in a single divine
Godhead is the

“Christendom” refers to the

In Golden Age Athens, laws were made

Athens’ Golden Age flowered shortly after the

The natural, graceful pose depicted in Classical Greek sculpture was later
called ___________by Italian Renaissance artists.

Sappho was

Proficiency in which language was mandatory for students in a medieval
university?

Res publica means government “of the people.

The farmers and small landowners of ancient Rome were known as the

The Pantheon

This group expressed concern over the use of images in divine worship and
favored the destruction of religious images.

In 509 B.C.E., the Latins overthrew the

In early Christian architecture, the area that cuts across the axis of the nave,
and often gives a church the shape of a Latin cross is called the

Rome, the capital of the Republic and the Empire, was located in

Most Gothic churches were dedicated to

Which of the following terms translates as “top of the city” and refers to the
portion of an ancient Greek city-state that functioned as its religious center?

Germanic art emphasized

The first five books of the Hebrew Bible are known as the

In the five centuries after the birth of Jesus, while the Roman Empire
languished in the West, the _____________ empire flourished in places like
Constantinople.

The system of political organization prevailing in Europe during the middle
ages and having as its basis the exchange of land for military defense is
called

The name Herodotus is associated with the birth of

An object associated with a saint or martyr is a(n)

The Hebrew claim to Canaan begins with the biblical story of

In the West, the early Christian church building was modeled on the Roman

Which Emperor issued the Edict of Milan?

The image above is an example of the

The belief that a single, benevolent, all-knowing god requires obedience to
divine laws of right conduct is

Christianity was legalized

Medieval towns

What are the characteristics of a Gregorian chant?

According to the Book of Genesis, God’s promise to Abraham established
the Hebrew claim to

The trivium and quadrivium were

Who was the first great emperor of Rome that saw himself as “first among
equals.”

From roughly 500 to 1100 C.E. there was a period of synthesis, when three
distinctive cultures came together to fuel the rise of the West. What were
those three cultures?

What city became the capital of the Roman Empire in the East in C.E. 330?

Generally speaking, Stoics such as Seneca believed that

I n the landmark _________________ as recorded by Matthew, Jesus sets
forth the injunctions of an uncompromising ethic that includes love your
neighbor as yourself.

According to medieval Catholic teachings, what was the intermediate realm
where Christians were punished for repented sins that had not been expiated
before their deaths?

The Pax Romana was a period of peace, stability, and productivity for the
Roman Empire

The gods of ancient Greece were

The belief in one god is called

The first Golden Age in Byzantine culture took place under the leadership of
the emperor

Which of the following was NOT characteristic of Minoan civilization?

Subterranean burial chambers outside the city of Rome are called

In early Christian architecture, the area that cuts across the axis of the nave,
and often gives a church the shape of a Latin cross is called the

An integral aspect of Hebrew monotheism is the theme of

Romans innovated the use of which building material, which made large
scale architectural constructions much cheaper to build?

Classical Greek painting, sculpture, and architecture emphasized

Everyman is a ____________ that teaches life is transient and worldly
pleasures are ultimately valueless.

In the five centuries after the birth of Jesus, while the Roman Empire
languished in the West, the _____________ empire flourished in places like
Constantinople

A large, colonnaded hall commonly used for public assemblies, law courts,
baths, and marketplaces is called a

The belief in one god is called

What individual is often called the co-founder of Christianity?

What characteristics were prized in depicting human form during the classical
period?

The greatest architectural landmark of Byzantine Constantinople was

In the Republic, Plato argues that ____________________ should govern.

Christianity was legalized

Which of the following was NOT a characteristic of Dante’s Commedia?

What happened to the original mosaics in the Hagia Sophia?

Greek drama probably originated in

What are the characteristics of a Gregorian chant?

Which of the following works documents the Norman invasion of England in
1066?

This building seated 50,000 people, staged battles including mock sea
battles

Which statement best describes the Gospels?

Paul helped transform Christianity into a major religion by

What was the original function of the Hagia Sophia?

The Parthenon is dedicated to

 

Question 1

Match the choice that best fits.

heroic virtue and the pursuit of excellence

dialectical method

first-ranking or best of its kind

independently governing city-state

allegory

theory that holds reality lies in the realm of unchanging Forms, rather than in sensory objects

ethics

the human torso turns on the axis of the spine, and the weight of the body shifts from equal distribution on both legs to greater weight on one leg

imperium

 

Question 2

1 / 1 pts

In the Republic, Plato argued that the best government was a constitutional one ruled by the middle-class.

True

False

Question 3

1 / 1 pts

Although Greek sculptors of the Late Classical Age celebrated the male nude form, they always depicted fully-attired female forms.

True

False

 

Question 4

1 / 1 pts

The Parthenon was built in the simple and severe Doric architectural style.

True

False

 

Question 5

1 / 1 pts

Which of the following was NOT characteristic of Minoan civilization?

seafaring

bull-leaping

“cyclopean” walls

labyrinthine architecture

Linear A script

 

Question 6

1 / 1 pts

The Iliad and Odyssey

are heroic tales of the Trojan War and its aftermath.

recount the genealogy of the gods.

analyze Greek cosmology.

detail systems for foretelling the truth.

are histories of the Persian Wars.

 

Question 7

1 / 1 pts

Herodotus was

the founder of Athenian democracy.

the first historian.

an Olympic athlete.

a priest of Apollo.

a natural philosopher.

 

Question 8

1 / 1 pts

Greek drama probably originated in

religious rituals.

All these answers are correct.

the Peloponnesian War.

enactments of Greek epics.

athletic games.

 

Question 9

1 / 1 pts

Which philosopher emphasized the underlying numerical proportion of reality?

Thales

Hippocrates

Pythagoras

Democritus

Socrates

 

Question 10

1 / 1 pts

Aristotle’s contributions include all the following EXCEPT

invention of the dialectical method of reasoning.

the doctrine of the Golden Mean.

treatises on politics, poetics and ethics.

the empirical method of observation.

the classification of plants and animals.

 

Question 11

1 / 1 pts

Classical Greek painting, sculpture, and architecture emphasized

humanism.

realism.

idealism.

symmetry.

All these answers are correct.

 

Question 12

1 / 1 pts

Athens is located

on the coast of the Adriatic Sea.

in Asia Minor near Miletus.

on the coast of the Aegean Sea.

on the island of Crete.

on the Peloponnesus.

 

Question 13

1 / 1 pts

Alexander’s conquests included all EXCEPT which of the following regions?

Egypt

Armenia

Palestine

Persia

Arabia

 

Question 14

1 / 1 pts

Athens’ Golden Age flowered shortly after which historical event?

rule of Alexander the Great

conquest of Troy

Persian Wars

Peloponnesian Wars

 

Question 15

1 / 1 pts

Which of the following orders is NOT a program of ancient Greek architectural design?

Hellenistic

Ionic

Doric

Corinthian

 

Question 16

1 / 1 pts

Which of the following schools of thought was NOT developed in the Hellenistic Age?

Cynicism

Sophism

Epicureanism

Stoicism

 

Question 17

1 / 1 pts

Context includes all of the following EXCEPT

historical background information

cultural background information

summary

what the artist was reacting to or reacting against during their time

 

Question 18

12 / 12 pts

Match the choices that best fit with one another.

 

 

res publica

“first citizen”

Pax Romana

short pieces of expository prose that examine a single subject

satire

tunnel vault

a rectangular colonnaded hall commonly used for public assemblies, providing the ideal space for courts of law, meeting halls, and market places which might be found in the Roman Forum

paterfamilias

technique by which small pieces of stone or glass are embedded into wet cement surfaces

empirical perspective

the art of making maps

humanities

 

Question 19

1 / 1 pts

The early Romans were most heavily influenced by

Etruscans and Greeks.

Greeks and Hittites

Egyptians and Greeks.

Phoenicians and Egyptians.

Etruscans and Hittites

 

Question 20

1 / 1 pts

The farmers and small landowners of ancient Rome were known as

tribunes.

republicans.

plebeians.

patricians.

equestrians.

 

Question 21

1 / 1 pts

Which of the following statements about Julius Caesar is FALSE?

He was assassinated by imperial senators led by Brutus.

He failed to enact the populist reforms needed to stabilize Rome.

As dictator, he regulated taxes and reduced debts.

He led the Roman army that conquered Gaul.

As dictator, he initiated public works programs.

 

Question 22

1 / 1 pts

Generally speaking, Stoics such as Seneca believed that

contentment should only be gained by developing intense emotional attachments to fellow humans.

there was no order or sense to human existence.

humans should be guided by their hearts rather than their minds.

happiness lay outside the grasp of human beings.

humans should cultivate rational detachment form the world around them.

 

Question 23

1 / 1 pts

In Virgil’s epic poem the Aeneid, the hero’s father advises Romans that

they must brutally crush all foreign nations.

they must avoid excessive pride in their country’s accomplishments.

they should wage war for war’s sake.

it was their duty to rule the world.

they have been worshipping false gods and must repent.

 

Question 24

1 / 1 pts

Juvenal is best known as

an author of love poetry.

a Stoic philosopher.

a comic playwright.

Rome’s leading author of satire.

Rome’s first emperor.

 

Question 25

1 / 1 pts

The Pantheon

is one of the few buildings from antiquity to survive largely intact.

All the answers are correct.

has a dome with an “eye” open to the sky.

observes the principles of harmony and symmetry laid out by Vitruvius.

was dedicated to the planetary deities.

 

Question 26

1 / 1 pts

Which of the following monuments is a landmark commemoration of a Roman imperial victory?

Pont du Gard

The Colosseum

Trajan’s Column

the Basilica of Constantine and Maxentius

Maison Carée

 

Question 27

1 / 1 pts

By 180 C.E. the Roman Empire encompassed which sea, which the Romans called mare nostrum, or “our sea”?

Mediterranean Sea

Baltic Sea

Caspian Sea

Black Sea

Red Sea

 

Question 28

1 / 1 pts

By 180 C.E., the Roman Empire included all the following lands EXCEPT

Gallia (France).

Italia (Italy).

Germania (Germany).

Asiana (Asia).

Britannia (Britain).

 

Question 29

1 / 1 pts

Rome, the capital of the Republic and the Empire, was located in

Britannia (Britain).

Italia (Italy).

Hispania (Spain)

Germania (Germany).

Gallia (France)

 

Question 30

1 / 1 pts

The Silk Road extended from eastern China to the

Atlantic Ocean.

Black Sea.

Arabian Sea.

Indian Ocean.

Mediterranean Sea.

 

Question 31

1 / 1 pts

Octavian, who established the Pax Romana, was named Augustus, “the Revered One,” by the Senate.

True

False

 

Question 32

1 / 1 pts

In contrast to the sculpture of Greece, Roman portraits were more idealized.

True

False

 

Question 33

1 / 1 pts

Beginning in 508 B.C.E., who had the power to make laws and determine state policy in Athens?

male landowners

soldiers and slaves

adult men and women

elected representatives

the oligarchy

 

Question 34

1 / 1 pts

The “Black Death” or bubonic plague

killed more than one-third of the population of Europe.

struck the towns hardest.

improved the bargaining power of the surviving laborers and peasants.

All these answers are correct.

was characterized by black boils.

 

Question 35

1 / 1 pts

The Magna Carta was the basis for

rivalry between the pope and the emperor.

economic improvements in France.

the Holy Roman Empire.

constitutional monarchy in England.

the revival of the Byzantine Empire.

 

Question 36

1 / 1 pts

All of the following are true of Joan of Arc EXCEPT that

she was condemned as a heretic and burned at the stake.

her military success led the English to withdraw from Orléans.

her noble bloodlines ingratiated her with the French king.

she claimed Christian saints bid her to expel the English.

she led the French army into battle against the English.

 

Question 37

1 / 1 pts

What was the Great Schism?

a split between Catholics and Protestants

a rivalry between two contesting popes

a peasant rebellion after the Black Death

a conflict between kings and popes

a conflict between Rome and Byzantium

 

Question 38

1 / 1 pts

Who defended the female sex in the Book of the City of Ladies?

Christine de Pisan

Geoffrey Chaucer

Francesco Petrarch

Giovanni Boccaccio

Joan of Arc

 

Question 39

1 / 1 pts

Which painter used light and shade to reintroduce three-dimensionality to western paintings in such works as the Lamentation over Jesus?

Giotto

Leonardo da Vinci

Ghiberti

Botticelli

Titian

 

Question 40

1 / 1 pts

According the Machiavelli, it is best for the prince to be

always guided by virtue.

feared.

loved.

hated.

modest and discreet.

 

Question 41

1 / 1 pts

Brunelleschi developed the laws of

sfumato.

simony.

chiaroscuro.

condottieri.

perspective.

 

Question 42

1 / 1 pts

All of the following are true of Leonardo’s Mona Lisa EXCEPT that

it unusually places its subject outdoors.

it makes use of sfumato, smoky shades of light.

it depicts the wife of a Florentine merchant.

it presents its subject in three-quarter view.

its subject’s features are recorded in crisp, clear detail.

 

Question 43

1 / 1 pts

Raphael’s The School of Athens epitomized the Grand Style, which included all the following characteristics EXCEPT

balance.

emotional exuberance.

spatial clarity.

decorum.

unity of design.

 

Question 44

1 / 1 pts

Michelangelo’s Creation of Adam

All the answers are correct.

is the visual analogue of Pico’s view of man.

was commissioned by Pope Julius II.

shows Adam reaching toward God.

is on the ceiling of the Sistine Chapel.

 

Question 45

1 / 1 pts

All the following are true of Renaissance music EXCEPT that it

was printed in popular handbooks.

was sometimes polyphonic (many voiced).

abandoned religious subject matters.

was performed by amateurs and professionals alike.

often developed from dance tunes.

 

Question 46

1 / 1 pts

Venice, an important site of the High Renaissance, is located along the banks of the

Tyrrhenian Sea.

Ionian Sea.

Aegean Sea.

Sea of Marmara.

Adriatic Sea.

 

Question 47

1 / 1 pts

Florence, an important center of the Renaissance, is located in

central Itlay.

northern Italy, on the Adriatic coast.

the heart of the Papal States.

the island of Sicily.

western Italy, near Rome.

 

Question 48

1 / 1 pts

Which of the following cities is NOT located along a sea coast?

Venice

Nice

Naples

Genoa

Rome

 

Question 49

1 / 1 pts

Classical humanism contributed to the secularity of the Italian Renaissance.

True

False

 

Question 50

1 / 1 pts

Both Chaucer’s Canterbury Tales and Giotto’s frescoes reflect the new social realism of the fourteenth century.

True

False

 

Question 51

1 / 1 pts

Ars nova is the name for the revival of Latin and Greek letters is Italy.

True

False

 

Question 52

1 / 1 pts

Renaissance humanists studied Greco-Roman classics as a rational guide for the fulfillment of human potential.

True

False

 

Question 53

1 / 1 pts

Pico della Mirandola emphasized man’s lack of free will and his inability to shape himself or his destiny.

True

False

 

Question 54

1 / 1 pts

Botticelli’s Birth of Venus and Donatello’s David are both celebrations of the beauty of the human form.

True

False

 

Question 55

1 / 1 pts

Catullus dedicated some of his poems to a woman he called Lesbia, a nod to the influence of which poet on his work?

Homer

Horace

Sappho

Virgil

 

Question 56

1 / 1 pts

In contrast with Rome, imperial China under the Qin and Han left no landmark                            .

large-scale defenses

love poems

epic poems

historical chronicles

 

Question 57

1 / 1 pts

Romans innovated the use of which building material, which made large-scale architectural constructions much cheaper to build?

steel

marble

granite

concrete

 

Question 58

1 / 1 pts

The Pantheon was dedicated to whom?

Marcus Aurelius

Julius Caesar

the planetary deities

Augustus

 

Question 59

1 / 1 pts

The hero of Virgil’s Aeneid is a native of which geographical location?

Rome

Athens

Egypt

Troy

 

Question 60

1 / 1 pts

The immediate consequence of the assassination of Julius Caesar was                         .

an end to Rome’s civil strife and establishment of the Pax Romana.

a struggle for power between his first lieutenant and his adopted son.

the restoration of the Roman Republic.

the collapse of the Roman Empire.

 

Question 61

1 / 1 pts

There is little surviving evidence with which to judge Rome’s accomplishments in the field of                          .

sculpture

music

literature

architecture

 

Question 62

1 / 1 pts

Which of the following choices applies to both Han China and the Roman Empire?

produced lengthy historical chronicles

traded by way of Asian intermediaries

All these answers are correct

were comparable in geographic size, power, and prestige

 

Question 63

6 / 7 pts

Match the choice that best fits.

medium

a repetition of a pictorial element according to a particular design

composition

shaped so that the work stands freely and can be seen from all sides

relief sculpture

mimetic

“rebirth”

Name:

 If you did not take UNV 104 or if you would like to review the writing concepts introduced in UNV 104, it is suggested that you view the media piece entitled, “The Writing Process,” which is available to support the development of your writing skills. Access “The Writing Process” in the Course Materials.  For this Topic, focus on the “Planning and Getting Started?” section of the media piece. 

Part 1: Select a Topic

Choose a topic for your persuasive essay from the list below. If you would like to write about a topic that is not on the list, please list it below within your answer to the first question to request approval.

• Stem cell research
• Prisoner reform/ Prison System Reform
• Internet Censorship
• Compensation for College Athletes
• Net Neutrality
• Marijuana
• Universal Healthcare
• Genetically modified food
• Cloning
• Abortion
• Charter schools
• Nuclear Energy
• Renewable Energy
• Educational Reform
• Minimum Wage Laws
• Cryptocurrency
• Automation
• Basic Income
• Mandatory military service/Selective Service 

• What is the topic you have chosen for your persuasive essay?

• Begin thinking about the different issues associated with the topic you have selected, narrow your focus, and take a pro or con position for the subject of your essay. Present a simple statement of your position here. Example statement: Personal use of social media is not appropriate in the workplace.

• Give rationale for that stance. (50-100 words. Avoid using emotional reasoning and focus on facts and evidence to help support you rationale)? 

Section II: Identify your Audience

Review the media piece before beginning this section: http://lc.gcumedia.com/phi105/persuasive-writing-website/persuasive-writing-website-v1.1.html

Answer the following questions regarding the audience for your essay in complete sentences.

• Who is the ideal audience for this persuasive essay, and why? Please avoid naming your instructor, classmates, family, friends, and coworkers.

• What is the appropriate way to address this audience (professional, familial, friendly)? Why?

• What about your topic is important to your audience? What about your topic is not important to your audience?

 

 

Name:

Persuasive Essay: Brainstorming Worksheet

Review all six brainstorming strategies within Chapter 2 of the ebook (pages 17-19).

• Free Writing
• Breaking Down a Topic
• Listing
• Mapping/Webbing
• Three Perspectives
• Journalistic Questions

The “How Should I Brainstorm?” section within in the media piece “The Persuasive Writing Process” also reviews some of the strategies above. Access “The Persuasive Writing Process” in the Course Materials.

Assignment Directions:

1. Choose three ways to brainstorm from the list above.
2. Brainstorm about the topic of your Persuasive Essay using each of your chosen three methods. Each brainstorming session should last at least 10 minutes in length.
3. Document the information from your brainstorming sessions in the space provided below. The information for each brainstorm should be substantive in nature, providing further insight into your current knowledge on your topic.
4. If you choose to brainstorm by mapping/webbing, document your brainstorm, please use the Smart Art feature within Word to create the map.

Documentation of Brainstorm:

In the three sections below, write the name of the brainstorming strategy you selected and provide the information you came up with during your brainstorming sessions. Make sure your information is substantive and is on your essay topic. Please do not write about the brainstorming strategies in general.

 Brainstorm One:

Brainstorm Two:

Brainstorm Three:

Using the Logical Fallacies Media piece (located in “Topic 3 Study Materials” tab) create flash cards to help you study for the fallacy quiz in Topic 4. To do so, fill in a definition and an example on each fallacy card below. After you have submitted this completed document to your instructor for a grade, you can print it out, cut out each fallacy card, and fold them in half to study with.

Reference for Logical Fallacies Media Piece: Grand Canyon University (2012). Logical Fallacies. Retrieved from: https://lc.gcumedia.com/phi105/fallacies-website/fallacies-website-v1.1.html

Hasty Generalization   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

Appeal to Ignorance   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

 

Either/Or   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

Post Hoc Ergo Propter Hoc   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

 

Extravagant Hypothesis   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

Composition   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

 

Slippery Slope   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

Appeal to Authority   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

 

Circular Reasoning   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

Division   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

 

Appeal to Tradition   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

Is/Ought   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

 

Bandwagon Appeal   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

False Analogy   {Fold Here} ——————————————————————————— Enter definition here: Enter example here:

 

Name:

Review “How Do I Organize My Brainstorm into an Outline?” in “The Writing Process” Media piece. Link: http://lc.gcumedia.com/phi105/persuasive-writing-website/persuasive-writing-website-v1.1.html

References and Citation help: http://libguides.gcu.edu/CitingSources

Assignment Directions:

Use the Persuasive Essay Outline on the next page to outline your persuasive essay by completing the following:

• Use the feedback you received from your instructor to revise your thesis statement.
  1. Write your thesis as a complete sentence (as you would in your essay) in the “Thesis Sentence” section under the Introductory Paragraph heading in the outline below.
• Create a topic sentence for each of the three paragraphs that comprise the body of your essay.
  1. Record the topic sentences in each of the “Topic Sentence” sections under the “Support for Thesis” headings in the outline below.
  2. Your topic sentences should be persuasive in nature and support your thesis.
• Write at least three details for each topic sentence.
  1. These details should provide support for the topic sentence.
  2. Remember to include at least one in-text citation for each supporting paragraph.
  3. Paraphrasing is preferred, use direct quotes minimally.
• Write a concluding sentence under the “Conclusion” heading in the outline below.
  1. Your concluding sentence should be your thesis restated in different words.
• Make sure to complete reference portion of the outline.

 Scroll Down 

Persuasive Essay Outline 

Introductory Paragraph:

Hook:

Background and contextual information:

Thesis Sentence: 

Supporting paragraph 1 (Subtopic 1)

(Make sure to include at least one in-text citation from your research within your details)

 

Persuasive Topic Sentence (include position and align with first subtopic):

Detail A:

Detail B:

Detail C:

Transitional sentence:

Supporting paragraph 2 (Subtopic 2)

(Make sure to include at least one in-text citation from your research within your details)

Persuasive Topic Sentence (include position and align with second subtopic):

Detail A:

Detail B:

Detail C:

Transitional sentence: 

Supporting paragraph 3 (Subtopic 3)

(Make sure to include at least one in-text citation from your research within your details)

Persuasive Topic Sentence (include position and align with third subtopic):

Detail A:

Detail B:

Detail C:

Transitional Sentence: 

Conclusion

Paraphrase thesis statement (restated in different words):

Summarize main points:

Final remarks:

References

(This will need to be at the top of a new page within essay draft)

Organize all references below into a reference list. Be sure the references are in alphabetical order based on the author’s last name, double-spaced. List should be formatted to have hanging indents by ½ an inch, with the first line left justified and all others indented using the paragraph formatting tool. See the APA Style Guide for help with formatting references and citations. Within the essay, this reference page will be on its own page at end of your essay. Please review the grading rubric prior to completing the outline assignment to ensure successful completion.

 

 

 

 

 

Part of your responsibility as a student in this course is to provide quality feedback to your peers to help them improve their writing skills. This worksheet will assist you in providing that feedback.  Submit this review as an attachment to both your instructor within the assignment bin and into your reply to your peer’s post containing the assigned draft.  

Name of the Draft’s Author: 

Name of the Peer Reviewer: 

Summary

After reading through the draft one time, write a summary (3–5 sentences) of the paper. This should include the stance and the three sub-topics used to support the position within the essay. Do not place your own critique of the essay within this space.

Evaluate the Essay 

After a second, closer reading of the draft, evaluate the essay using the Persuasive Essay: Final Draft rubric below. Determine the level of achievement appropriate for each assignment criteria. (Level of achievement ranges from Unsatisfactory to Excellent and are found at the top of the rubric. Assignment criteria are found in the left column of the rubric.). Please use the highlighting tool to score your peer within each criteria. Then use the right hand side of the rubric to include a rationale with evidence and examples for the score.

Topic 7 Rubric: Persuasive Essay: Final Draft

Criteria		1 Unsatisfactory	2 Less Than Satisfactory	3 Satisfactory	4 Good	5 Excellent	Why was this score determined for your peer’s essay? What evidence/examples do you have for this score?
% Scaling		0%	65%	75%	85%	100%
Content – 70%
Objective Perspective and Position		Addresses a single source or view of the argument and fails to clarify presented position relative to one’s own.	Appropriately identifies one’s own position on the topic. Vague explanation of the position is given. Little reference to specific issues related to the topic is made. Position completely appeals to emotion instead of reason.	Appropriately identifies one’s position on the topic. Explains the position taken in a coherent way. Sound reference to specific issues related to the topic is made. Position mostly appeals to emotion instead of reason.	Formulates a clear and precise point of view of the topic. Clearly explains the position taken. Sound and detailed reference to specific issues related to the topic is made. Position appeals mostly to reason.	Formulates a clear and precise point of view of the topic. Comprehensively explains the position taken. Specific issues related to the topic are fully presented in great detail. Position appeals to reason.	Rationale for score:
Word Count		Word count is less than half the minimum or more than double the maximum.	Body of essay is more than 100 words over or under the word count.	Body of essay is more than 50 but less than 100 words over or under the word count.	Body of essay is over or under the word count by 50 words or less.	Within the appropriate word count.	Rationale for score:
Argues to persuade		No real persuasive argument is made. No outside sources are used.	Presents a vague argument relative to the topic and presents no evidence to support the argument. Fewer than three outside sources are used. No Peer Reviewed sources used.	Presents an argument relative to the topic and presents minimal evidence to support the argument. Not all evidence is relevant to the argument. At least three outside sources are used with at least one peer-reviewed journal article.	Presents an argument relative to the topic and presents key evidence to support the argument through a synthesis of paraphrased and quoted material. Three sources are used. At least two peer reviewed journal articles are used.	Presents an argument relative to the topic and presents key evidence to support the argument through a synthesis of paraphrased research. Identifies not only the main issues, but also the embedded, implicit, or unspoken aspects of the topic. At least three peer reviewed journal articles are used. Direct quotes are minimal.	Rationale for score:
Adheres to principles of critical thinking Manage emotions and avoid fallacies. Logical reasoning is used within arguments Upholds persuasive tone rather than manipulative Acknowledge other perspectives and evaluate assumptions about the topic.		Fails to adhere to almost all principles of critical thinking.	Adheres to few principles of critical thinking.	Adheres to some principles of critical thinking on a surface level.	Adheres to many principles of critical thinking. Use of the principles is clear to see.	Adheres to most of the principles of critical thinking. Attempts to incorporate each one in a logical and fluid way	Rationale for score:
Organization and Effectiveness – 25%
Thesis Development and Purpose		Paper lacks any discernible overall purpose or organizing claim. Thesis is not stated in the conclusion.	Thesis and/or main claim are insufficiently developed and/or vague; purpose is not clear.  Thesis is not stated in the conclusion.	Thesis and/or main claim are apparent and appropriate to purpose. Thesis is not stated in the conclusion.	Thesis and/or main claim are clear and forecast the development of the paper. It is descriptive and reflective of the arguments and appropriate to the purpose. Thesis is stated within the concluding paragraph	Thesis and/or main claim are comprehensive; contained within the thesis is the essence of the paper. Thesis statement makes the purpose of the paper clear. Thesis is clearly restated in the conclusion.	Rationale for score:
Paragraph Development and Transitions		Paragraphs and transitions consistently lack unity and coherence.  No apparent connections between paragraphs are established. Transitions are inappropriate to purpose and scope.  Organization is disjointed.	Some paragraphs and transitions may lack logical progression of ideas, unity, coherence, and/or cohesiveness.  Some degree of organization is evident.	Paragraphs are generally competent, but ideas may show some inconsistency in organization and/or in their relationships to each other.	A logical progression of ideas between paragraphs is apparent.  Paragraphs exhibit a unity, coherence, and cohesiveness.  Topic sentences and concluding remarks are appropriate to purpose.	There is a sophisticated construction of paragraphs and transitions. Includes topic sentences that are persuasive and align with thesis statement. Includes details and rationale that support the main points of each supporting paragraph. Ideas progress and relate to each other.  Paragraph and transition construction guide the reader.  Paragraph structure is seamless with transition between paragraphs	Rationale for score:
Mechanics of Writing (includes spelling, punctuation, grammar, language use)		Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice and/or sentence construction are used.	Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register), sentence structure, and/or word choice are present. Essay is primarily written in first and second person	Some mechanical errors or typos are present, but are not overly distracting to the reader. Correct sentence structure and audience-appropriate language are used. Essay is written with third person voice with some instances of first or second person.	Prose is largely free of mechanical errors, although a few may be present. A variety of sentence structures and effective figures of speech are used. Essay is mostly written with third person voice.	Writer is clearly in command of standard, written, academic English. Essay is written with third person voice.	Rationale for score:
Format – 5%
Paper Format  (use of appropriate style for the major and assignment)		APA template is not used appropriately or documentation format is rarely followed correctly.	APA template is used, but some elements are missing or mistaken; lack of control with formatting is apparent.	APA template is used, and formatting is correct, although some minor errors may be present.	APA template is fully used; There are virtually no errors in formatting style.	All format elements are correct.	Rationale for score:
Research Citations (In-text citations for paraphrasing and direct quotes, and reference page listing and formatting, as appropriate to assignment and style)		No reference page is included. No citations are used.	Reference page is present. Citations are inconsistently used.	Reference page is included and lists sources used in the paper. Sources are appropriately documented, although some errors may be present.	Reference page is present and fully inclusive of all cited sources. Documentation is appropriate and citation style is usually correct.	In-text citations and a reference page are complete and correct. The documentation of cited sources is free of error.	Rationale for score:

Overall Feedback

Feedback to your peer should be objective and useful.

Three strengths of the paper are:

Three things that could be improved are:

 

Name:

Reflect on your understanding of the relationship between thinking and language.

Answer the following questions in 100-200 words each:

1. How do individuals acquire and develop language?

1. How do you personally communicate your thoughts and how did you learn to do so?

1. Based on your own experiences, what are some symbols (e.g., letters of the alphabet) people use to communicate?

1. Explain how you think these symbols are related to critical thinking?

The assignment will be graded according to the following criteria:

1. Clarity: The intent of the writer is clear.
2. Logic: The answer makes sense.
3. Answers question: The questions are addressed fully.
4. Mechanics: Answers contain proper punctuation and grammar.

Ch 3 Higgins
1.Which of the following statements is correct if a firm’s pro forma financial statements project net income of $12,000 and external financing
required of $5,000
A. Total assets cannot grow by more than $10,000.
B. Dividends cannot exceed $10,000.
C. Retained earnings cannot grow by more than $12,000.
D. Long-term debt cannot grow by more than $5,000
2. You are preparing pro forma financial statements for 2014 using the percent-of-sales method. Sales were $100,000 in 2013 and are projected
to be $120,000 in 2014. Net income was $5,000 in 2013 and is projected to be $6,000 in 2014. Equity was $45,000 at year-end 2012 and
$50,000 at year-end 2013. Assuming that this company never issues new equity, never repurchases equity, and never changes its dividend
payout ratio, what would be projected for equity at year-end 2014?
A. $55,000
B. $56,000
C. $60,000
D. Insufficient information is provided to project equity in 2014.
3.On May 1, Vaya Corp. had a beginning cash balance of $175. Vaya’s sales for April were $430 and May sales were $480. During May, the firm
had cash expenses of $110 and made payments on accounts payable of $290. Vaya’s accounts receivable period is 30 days. What is the firm’s
beginning cash balance on June 1?
A. $145
B. $155
C. $205
D. $215
E. $265
4.Ruff Wear expects sales of $560, $650, $670, and $610 for the months of May through August, respectively. The firm collects 20 percent of
sales in the month of sale, 70 percent in the month following the month of sale, and 8 percent in the second month following the month of sale.
The remaining 2 percent of sales is never collected. How much money does the firm expect to collect in the month of August?
A. $621
B. $628
C. $633
D. $639
E. $643
5.You are developing a financial plan for a corporation. Which of the following questions will be considered as you develop this plan?
I. How much will our sales grow?
II. Will additional fixed assets be required?
III. Will dividends be paid to shareholders?
IV. How much new debt must be obtained?
A. I and IV only
B. II and III only
C. I, III, and IV only
D. II, III, and IV only
E. I, II, III, and IV
6.Steve has estimated the cash inflows and outflows for his sporting goods store for next year. The report that he has prepared summarizing
these cash flows is called a:
A. pro forma income statement.
B. sales projection.
C. cash budget.
D. receivables analysis.
E. credit analysis.
F. None of the above.
7.The Limited collects 25 percent of sales in the month of sale, 60 percent of sales in the month following the month of sale, and 15 percent of
sales in the second month following the month of sale. During the month of April, the firm will collect:
A. 60 percent of February sales.
B. 15 percent of April sales.
C. 60 percent of March sales.
D. 15 percent of March sales.
E. 25 percent of February sales.
8.Assume each month has 30 days and AmDocs has a 60-day accounts receivable period. During the second calendar quarter of the year (April,
May, and June), AmDocs will collect payment for the sales it made during which of the months listed below?
A. October, November, and December
B. November, December, and January
C. December, January, and February
D. January, February, and March
E. February, March, and April
9.Which one of the following statements is correct concerning the cash balance of a firm?
A. Most firms attempt to maintain a zero cash balance at all times.
B. The cumulative cash surplus shown on a cash budget is equal to the ending cash balance plus the minimum desired cash balance.
C. Most firms attempt to maximize the cash balance at all times.
D. A cumulative cash deficit on a cash budget indicates the need to acquire additional funds.
E. The ending cash balance must equal the minimum desired cash balance.
10. Which of the following are viable techniques to cope with the uncertainty inherent in realistic financial projections?
I. Simulation
II. Ad hoc adjustments
III. Scenario analysis
IV. Sensitivity analysis
A. II and IV only
B. III and IV only
C. II, III, and IV only
D. I, II, and III only
E. I, III, and IV only
F. I, II, III, and IV
11. The most common approach to developing pro forma financial statements is called the:
A. cash budget method.
B. financial planning method.
C. seasonality approach.
D. percent-of-sales method.
E. market-oriented approach.
F. None of the above.
12.To estimate Missed Places Inc.’s (MP) external financing needs, the CFO needs to figure out how much equity her firm will have at the end of
next year. At the end of the most recent fiscal year, MP’s retained earnings were $158,000. The Controller has estimated that over the next year,
gross profits will be $360,700, earnings after tax will total $23,400, and MP will pay $12,400 in dividends. What are the estimated retained
earnings at the end of next year?
A. $169,000
B. $170,400
C. $181,400
D. $506,300
E. $518,700
F. None of the above.
13. You are estimating your company’s external financing needs for the next year. At the end of the year you expect that owners’ equity will be
$80 million, total assets will amount to $170 million, and total liabilities will be $70 million. How much will your firm need to borrow, or
otherwise acquire, from outside sources during the year?
A. $20 million
B. $70 million
C. $150 million
D. $160 million
E. $180 million
F. None of the above.
14. Cash budgets are less informative than pro forma financial statements: t/f
15. Scenario analysis involves changing one input to a financial forecast, whereas sensitivity analysis involves changing multiple inputs: t/f
16. A drawback of forecasting using spreadsheets is that typical spreadsheet programs are not equipped to deal with the circularity involving
interest expense and debt. t/f
17. Given the same assumptions, cash flow forecasts and pro forma projections will yield the same need for external funding: t/f
18. All else equal, increasing the assumed payables period in a financial forecast will decrease external funding required: t/f
19. An annual financial forecast for 2013 showing no external funding required assures a company that no cash shortfalls are likely to occur
during 2013: t/f
CH 4. Higgins
1. If a company seeks to maximize firm value, it should never grow at a rate above its sustainable growth rate t/f
2. The only way a company can grow at a rate above its current sustainable growth rate is by increasing leverage. t/f
3. In recent years, U.S. companies as a whole have repurchased more equity than they have issued. t/f
4. Share repurchases usually decrease earnings per share. t/f
5. Issue costs of equity are high relative to those of debt t/f
6. One way to manage an actual growth rate above a sustainable growth rate is to decrease prices. t/f
7. Which one of the following will increase the sustainable rate of growth a corporation can achieve?
A. avoidance of external equity financing
B. increase in corporate tax rates
C. reduction in the retention ratio
D. decrease in the dividend payout ratio
E. decrease in sales given a positive profit margin
F. None of the above.
8. Which of these ratios are the determinants of a firm’s sustainable growth rate?
I. Assets-to-equity ratio
II. Profit margin
III. Retention ratio
IV. Asset turnover ratio
A. I and III only
B. II and III only
C. II, III, and IV only
D. I, II, and III only
E. I, II, III, and IV
F. None of the above
9. The retention ratio is:
A. equal to net income divided by the change in total equity.
B. the percentage of net income available to the firm to fund future growth.
C. equal to one minus the asset turnover ratio.
D. the change in retained earnings divided by the dividends paid.
E. the dollar increase in net income divided by the dollar increase in sales.
F. None of the above.
10. Which of the following statements is true?
A. Rapid growth spurs increases in market share and profits and thus, is always a blessing.
B. Firms that grow rapidly only very rarely encounter financial problems.
C. The cash flows generated in a given time period are equal to the profits reported.
D. Profits provide assurance that cash flow will be sufficient to maintain solvency.
E. Due to required cash investments in current assets, fast-growing and profitable companies can literally “grow broke”.
F. None of the above.
11. Which one of the following correctly defines the retention ratio?
A. one plus the dividend payout ratio
B. additions to retained earnings divided by net income
C. additions to retained earnings divided by dividends paid
D. net income minus additions to retained earnings
E. net income minus cash dividends
F. None of the above.
12. Which one of the following policies most directly affects the projection of the retained earnings balance to be used on a pro forma
statement?
A. net working capital policy
B. capital structure policy
C. dividend policy
D. capital budgeting policy
E. capacity utilization policy
F. None of the above.
13. Which of the following questions are appropriate to address upon conducting sustainable growth analysis and the financial planning
process?
I. Should the firm merge with a competitor?
II. Should additional equity be sold?
III. Should a particular division be sold?
IV. Should a new product be introduced?
A. I, II, and III only
B. I, II, and IV only
C. I, III, and IV only
D. II, III, and IV only
E. I, II, III, and IV
F. None of the above.
14. The sustainable growth rate of a firm is best described as the:
A. minimum growth rate achievable assuming a 100 percent retention ratio.
B. minimum growth rate achievable if the firm maintains a constant equity multiplier.
C. maximum growth rate achievable excluding external financing of any kind.
D. maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.
E. maximum growth rate achievable with unlimited debt financing.
F. None of the above.
15. The sustainable growth rate:
A. assumes there is no external financing of any kind.
B. assumes no additional long-term debt is available.
C. assumes the debt-equity ratio is constant.
D. assumes the debt-equity ratio is 1.0.
E. assumes all income is retained by the firm.
F. None of the above.
16. Which of the following can affect a firm’s sustainable rate of growth?
I. Asset turnover ratio
II. Profit margin
III. Dividend policy
IV. Financial leverage
A. III only
B. I and III only
C. II, III, and IV only
D. I, II, and IV only
E. I, II, III, and IV
F. None of the above.
17. Gujarat Corporation doubled its shareholders’ equity during the year 2014. Gujarat did not issue any new equity, repurchase any equity, or
pay out any dividends during the year. What is Gujarat’s sustainable growth rate for 2014?
A. 50%
B. 100%
C. 150%
D. 200%
18. Hayesville Corporation had net income of $5 million this year on net sales of $125 million per year. At the beginning of this year, its debtto-equity ratio was 1.5 and it held $75 million in total liabilities. It paid out $2 million in dividends for the year. What is Hayesville
Corporation’s sustainable growth rate?
A. 3%
B. 4%
C. 5%
D. 6%
19. Milano Corporation has experienced growth of 20% for each of the last 5 years. Over this 5-year period, Milano’s return on equity has
never exceeded 15%, its profit margin has held steady at 5%, and its total asset turnover has not changed. Over the 5-year period, Milano
paid no dividends and issued no new equity. Based on this information, which of the following can you most likely infer about Milano’s
performance over the past 5 years?
A. Milano’s leverage has decreased.
B. Milano’s leverage has remained constant.
C. Milano’s leverage has increased.
D. None of the above.
20. Which of the following would increase a company’s need for external finance, all else equal?
A. An increase in the dividend payout ratio
B. A decrease in sales growth
C. An increase in profit margin
D. A decrease in the collection period
21. You constructed a pro forma balance sheet for next year and found that external financing required was negative (i.e., the company
projected a financing surplus). Which of the following options, all else equal, would NOT correct the projected imbalance?
A. A stock repurchase
B. A decrease in accounts payable
C. An increase in cash and marketable securities
D. An increase in the retention ratio
22. The sustainable growth rate:
A. is the highest growth rate attainable for a firm that pays no dividends.
B. is the highest growth rate attainable for a firm without issuing new stock.
C. can never be greater than the return on equity.
D. can be increased by decreasing leverage.
23. Wax Music expects sales of $437,500 next year. The profit margin is 4.8 percent and the firm has a 30 percent dividend payout ratio. What
is the projected increase in retained earnings?
A. $14,700
B. $17,500
C. $18,300
D. $20,600
E. $21,000
F. None of the above.
24. Komatsu has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The asset turnover ratio is 1.6 and the assets-to-equity
ratio (using beginning-of-period equity) is 1.77. What is Komatsu’s sustainable rate of growth?
A. 1.91%
B. 6.12%
C. 10.83%
D. 11.26%
E. 12.74%
F. None of the above.
25. A firm has a retention ratio of 40 percent and a sustainable growth rate of 6.2 percent. Its asset turnover ratio is 0.85 and its assets-toequity ratio (using beginning-of-period equity) is 1.80. What is its profit margin?
A. 3.79%
B. 5.69%
C. 6.75%
D. 10.13%
E. 18.24%
26. Westcomb, Inc. had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $195,000.
During the year, the company sold no new equity. Net income for the year was $72,000 and dividends were $44,640. What is Westcomb’s
sustainable growth rate?
A. 15.32 percent
B. 15.79 percent
C. 17.78 percent
D. 18.01 percent
E. 18.24 percent
27. Which of the following actions would help a firm’s growth problem if its actual sales growth exceeds its sustainable rate of growth?
I. Increase prices
II. Decrease financial leverage
III. Decrease dividends
IV. Prune away less-profitable products
A. I and II only
B. I and III only
C. I, II, and IV only
D. I, III, and IV only
E. I, II, III, and IV
F. None of the above.
28. Please refer to the selected financial information for Boss Stores above. What is the retention ratio for 2013?
A. 0.32
B. 0.68
C. 0.97
D. 1.00
E. None of the above
29. Please refer to the selected financial information for Boss Stores above. What is the actual sales growth rate for 2013?
A. – 17.6%
B. – 7.9%
C. 8.51%
D. 21.4%
E. None of the above.
30. Please refer to the selected financial information for Boss Stores above. What is the sustainable growth rate for 2013?
A. – 17.6%
B. – 7.9%
C. 9.97%
D. 10.27%
E. 12.23%
F. 21.40%
31. Please refer to the selected financial information for Boss Stores above. What is the difference between Boss’s sustainable growth rate and
its actual growth rate for 2014?
A. – 11.40%
B. – 7.09%
C. – 3.04%
D. 5.47%
E. 13.98%
F. 21.40%
Higgins ch 6:
1. Financial leverage:
I. Increases expected ROE but does not affect its variability
II. Increases breakeven, like operating leverage, but increases the rate of earnings per share growth once breakeven is achieved
III. Is a fundamental financial variable affecting sustainable growth
IV. Increases expected return and risk to owners
A. I and II only
B. I and III only
C. II and IV only
D. II, III, and IV only
E. I, II, III, and IV
F. None of the above
2. The best financing choice is the one that:
A. Sets the debt to assets ratio equal to 1
B. Trades off the tax disadvantage of debt against the signaling effects of equity
C. Maximizes expected cash flows
D. Ignores the false comfort of financial flexibility
E. Results in the lowest possible financial distress costs
3. Homemade leverage is:
A. The incurrence of debt by a corporation in order to pay dividends to shareholders
B. The exclusive use of debt to fund a corporate expansion project
C. The borrowing or lending of money by individual shareholders as a means of adjusting their level of financial leverage
D. Best defined as an increase in a firm’s debt-equity ratio
E. The term used to describe the capital structure of a levered firm
F. None of the above
4. The basic lesson of M&M theory is that the value of a firm is dependent upon:
A. The firms capital structure
B. The total cash flow of the firm
C. Minimizing the marketed claims
D. The amount of marketed claims to that firm
E. The size of the stockholder’s claims
F. None of the above
5. The term ‘financial distress costs’ includes which of the following?
I. Direct bankruptcy costs
II. Indirect bankruptcy costs
III. Direct costs related to being financially distressed but not bankrupt
IV. Indirect costs related to being financially distressed but not bankrupt
A. I only
B. III only
C. I and II only
D. III and IV only
E. I, II, III, and IV
F. None of the above
6. Which of the following is/are helpful for evaluating the effect of leverage on a company’s risk and potential returns?
I. Estimated pro forma coverage ratios
II. The recognition that financing decisions do not affect firm shareholder value
III. A range of earnings chart and proximity of expected EBIT to the breakeven value
IV. A conservative debt policy that obviates the need to evaluate risk
A. I only
B. III only
C. I and III only
D. II and III only
E. IV only
F. None of the above
7. In general, the capital structures used by non-financial US firms:
A. Typically result in debt to asset ratios between 60 and 80 percent
B. Tend to converge to the same proportions of debt and equity
C. Tend to be those that maximize the use of the firms available tax shelters
D. Vary significantly across industries
E. None of the above
8. Which of the following factors favor the issuance of debt in the financing decision?
I. Market signaling
II. Distress costs
III. Tax benefits
IV. Financial flexibility
-D. I, II, and III only
9. Which of the following factors favor the issuance of equity in the financing decision?
I. Market signaling
II. Distress costs
III. Management incentives
IV. Financial flexibility
-C II and IV only
10. Which of the following factors favor the issuance of debt in the financing decision?
V. Market signaling
VI. Distress costs
VII. Management incentives
VIII. Financial flexibility
-B I and III only
11. Which of the following is not a likely financing policy for a rapidly growing business?
-B borrow funds rather than limit growth, thereby limiting growth only as a last resort
12. According to the pecking order theory, which of the following are correct?
I. for financing needs, firms prefer to first tap internal sources such as retained profits and excess cash
II. there is an inverse relationship between a firms profit level and its debt level
III firms prefer to issue new equity rather than source external debt
IV a firms capital structure is dictated by its need for external financing
-D I, II , and IV only
13. TIMES BURDEN COVERED RATIO:
14. CALCULATE EARNINGS PER SHARE
15. INTEREST EARNED RATIO:
16. The interest tax shield has no value when a firm has:
I. No taxable income
II. Debt equity ratio of 1
III. Zero debt
IV no leverage
-C I, III, and IV
Higgins Ch 7:
Higgins Ch 8:
1. Total risk is measured by ____ and systematic risk is measured by ______.
A. Beta; alpha
B. Beta; standard deviation
C. WACC; beta
D. Standard deviation; beta
E. Standard deviation; variance
F. None of the above
2. When investment returns are less than perfectly positively correlated, the resulting diversification effect means that:
A. making an investment in two or three large stocks will eliminate all of the unsystematic risk.
B. making an investment in three companies all within the same industry will greatly reduce the systematic risk.
C. spreading an investment across five diverse companies will not lower the total risk.
D. spreading an investment across many diverse assets will eliminate all of the systematic risk.
E. spreading an investment across many diverse assets will eliminate some of the total risk.
F. None of the above.
3. Unsystematic risk:
A. can be effectively eliminated by portfolio diversification.
B. is compensated for by the risk premium.
C. is measured by beta.
D. is measured by standard deviation.
E. is related to the overall economy.
F. None of the above.
4. Which of the following are examples of diversifiable risk?
I. An earthquake damages Oakland, California.
II. The federal government imposes an additional $1,000 fee on all business entities.
III. Employment taxes increase nationally.
IV. Toymakers are required to improve their safety standards.
A. I and III only
B. II and IV only
C. II and III only
D. I and IV only
E. I, III, and IV only
F. None of the above.
5. Which of the following statements are correct concerning diversifiable, or unsystematic, risks?
I. Diversifiable risks can be largely eliminated by investing in thirty unrelated securities.
II. There is no reward for accepting diversifiable risks.
III. Diversifiable risks are generally associated with an individual firm or industry.
IV. Beta measures diversifiable risk.
A. I and III only
B. II and IV only
C. I and IV only
D. I, II, and III only
E. I, II, III, and IV
F. None of the above.
6. Which of the following statements concerning risk are correct?
I. Systematic risk is measured by beta.
II. The risk premium increases as unsystematic risk increases.
III. Systematic risk is the only part of total risk that should affect asset prices and returns.
IV. Diversifiable risks are market risks you cannot avoid.
A. I and III only
B. II and IV only
C. I and II only
D. III and IV only
E. I, II, and III only
F. None of the above.
7. Which one of the following is an example of systematic risk?
A. The Federal Reserve unexpectedly announces an increase in target interest rates.
B. A flood washes away a firm’s warehouse.
C. A city imposes an additional one percent sales tax on all products.
D. A toymaker has to recall its top-selling toy.
E. Corn prices increase due to increased demand for alternative fuels.
F. None of the above.
8. The excess return earned by a risky asset, for example with a beta of 1.4, over that earned by a risk-free asset is referred to as a:
A. market risk premium.
B. risk premium.
C. systematic return.
D. total return.
E. real rate of return.
F. None of the above.
9. The dividend growth model can be used to compute the cost of equity for a firm in which of the following situations?
I. Firms that have a 100 percent retention ratio
II. Firms that pay an unchanging dividend
III. Firms that pay a constantly increasing dividend
IV. Firms that pay an erratically growing dividend
A. I and II only
B. I and IV only
C. II and III only
D. I, II, and III only
E. I, III, and IV only
F. None of the above.
10. The cost of equity for a firm:
A. tends to remain static for firms with increasing levels of risk.
B. increases as the unsystematic risk of the firm increases.
C. ignores the firm’s risks when that cost is based on the dividend growth model.
D. equals the risk-free rate plus the market risk premium.
E. equals the firm’s pretax weighted average cost of capital.
F. None of the above.
11. The pre-tax cost of debt:
A. is based on the current yield to maturity of the firm’s outstanding bonds.
B. is equal to the coupon rate on the latest bonds issued by a firm.
C. is equivalent to the average current yield on all of a firm’s outstanding bonds.
D. is based on the original yield to maturity on the latest bonds issued by a firm.
E. has to be estimated as it cannot be directly observed in the market.
F. None of the above.
12. The after-tax cost of debt generally increases when:
I. a firm’s bond rating increases.
II. the market-required rate of interest for the company’s bonds increases.
III. tax rates decrease.
IV. bond prices rise.
A. I and III only
B. II and III only
C. I, II, and III only
D. II, III, and IV only
E. I, II, III, and IV
F. None of the above.
Key facts and assumptions concerning FM Foods, Inc. at December 31, 2011, appear below.
13. Estimate FM’s after-tax cost of equity capital.
A. 4.50%
B. 6.92%
C. 7.93%
D. 12.20%
E. 17.48%
F. None of the above.
14. Estimate FM’s after-tax cost of debt capital.
A. 2.21%
B. 4.10%
C. 4.55%
D. 6.30%
E. 7.00%
F. None of the above.
15. Estimate the appropriate weight of equity to be used when calculating FM’s weighted average cost of capital.
A. 11.5%
B. 19.3%
C. 80.7%
D. 88.5%
E. 100.0%
F. None of the above.
16. Estimate the appropriate weight of debt to be used when calculating FM’s weighted average cost of capital.
A. 11.5%
B. 19.3%
C. 80.7%
D. 88.5%
E. 100.0%
F. None of the above.
17. Estimate FM’s weighted-average cost of capital.
A. 6.46%
B. 6.58%
C. 11.27%
D. 11.32%
E. 11.52%
F. None of the above.
18. FM is contemplating an average-risk investment costing $100 million and promising an annual after-tax cash flow of $15 million in
perpetuity. Which of the following statements is/are correct?
I. FM should reject the project because the IRR is greater than the firm’s WACC.
II. FM should accept the project because the IRR is greater than the firm’s WACC.
III. FM should accept the project because the NPV is greater than zero.
IV. FM should reject the project because the NPV is less than zero.
A. I only
B. II only
C. IV only
D. I and IV only
E. II and III only
F. None of the above.
19. Which of the following statements are correct?
I. Using the same risk-adjusted discount rate to discount all future cash flows adjusts for the fact that the more distant cash flows are often more
risky than cash flows occurring sooner.
II. If you can borrow all of the money you need for a project at 5%, the cost of capital for this project is 5%.
III. The best way to obtain the cost of debt capital for a firm is to use the coupon rates on its bonds.
IV. The cost of capital, or WACC, is not the correct discount rate to use for all projects undertaken by a firm.
A. I and III only
B. II and IV only
C. I and II only
D. I and IV only
E. I, II, and III only
F. None of the above
20. The capital structure weights used in computing the weighted average cost of capital:
A. are based on the book values of total debt and total equity.
B. are based on the market value of the firm’s debt and equity securities.
C. are computed using the book value of the long-term debt and the book value of equity.
D. remain constant over time unless the firm issues new securities.
E. are restricted to the firm’s debt and common stock.
F. None of the above.
21. The discount rate assigned to an individual project should be based on:
A. the firm’s weighted average cost of capital.
B. the actual sources of funding used for the project.
C. an average of the firm’s overall cost of capital for the past five years.
D. the current risk level of the overall firm.
E. the risks associated with the use of the funds required by the project.
F. None of the above.
22. The weighted average cost of capital for a firm is the:
A. discount rate which the firm should apply to all of the projects it undertakes.
B. rate of return a firm must earn on its existing assets to maintain the current value of its stock.
C. coupon rate the firm should expect to pay on its next bond issue.
D. minimum discount rate the firm should require on any new project.
E. rate of return shareholders should expect to earn on their investment in this firm.
F. None of the above.
23. Blue Diamond Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 6.75 percent.
The company also has 750,000 shares of 7 percent preferred stock and 2.5 million shares of common stock outstanding. The preferred stock
sells for $53 a share. The common stock has a beta of 1.34 and sells for $42 a share. The U.S. Treasury bill is yielding 2.8 percent and the return
on the market is 11.2 percent. The corporate tax rate is 38 percent. What is the firm’s weighted average cost of capital?
A. 10.39 percent
B. 10.64 percent
C. 11.18 percent
D. 11.30 percent
E. 11.56 percent
F. None of the above.
24. Honest Abe’s is a chain of furniture retail stores. Integral Designs is a furniture maker and a supplier to Honest Abe’s. Honest Abe’s has a
beta of 1.38 as compared to Integral Designs’ beta of 1.12. Both firms carry no debt, i.e., are 100% equity-financed. The risk-free rate of return is
3.5 percent and the market risk premium is 8 percent. What discount rate should Honest Abe’s use if it considers a project that involves the
manufacturing of furniture?
A. 12.46 percent
B. 12.92 percent
C. 13.50 percent
D. 14.08 percent
E. 14.54 percent
F. None of the above.
Short Answer Questions
Key facts and assumptions concerning Costco Company, at December 31, 2011, appear below.
25. Use the above information to answer the following questions.
a. Estimate Costco’s cost of equity capital.
b. Estimate Costco’s weighted-average cost of capital.
26. Explain the difference between systematic and unsystematic risk, and why one of these types of risks is rewarded with a risk premium while
the other type is not.
27. Suppose that your company’s weighted-average cost of capital is 9 percent. Your company is planning to undertake a project with an internal
rate of return of 12%, but you believe that this project is not a good investment for the firm. What logical arguments might you use to convince
your boss to forego the project despite its high rate of return? Is it possible that making investments with expected returns higher than your
company’s cost of capital will destroy value? If so, how?
28. The standard deviation of returns on Wildcat Oil Drilling is very high. Does this necessarily imply that Wildcat Oil Drilling is a high-risk
investment when investors hold diversified portfolios? Explain why or why not.
29. Investments A and B both cost $100,000 and each promises a single payoff in one year. The distribution of payoffs for each investment
appears below.
Ignoring possible differences in nondiversifiable risk, which investment would a risk-averse investor prefer, and why?
30. What is the present value of a cash flow stream of $10,000 per year annually for 11 years that then grows at 2 percent per year forever?
Assume the appropriate discount rate is 12 percent.
Higgins Ch 9:
1. Which of the following statements are correct?;
I. Liquidation value of a firm is equal to the present worth of expected future;cash flows from operating activities.;
II. When an acquiring firm purchases a target firm’s equity, the acquirer must;assume the target’s liabilities.;
III. III. The market value of a public company reflects the worth of the business to;minority investors.;
IV. IV. The fair market value of a business is usually the lower of its liquidation;value and its going-concern value.;
A. I and III only;
B. II and IV only;
C. II and III only;
D. I, II, and III only;
E. II, III, and IV only;
F. None of the above.;
2. Ginormous Oil entered into an agreement to purchase;all of the outstanding shares of Slick Company for $60 per share. The number
of;outstanding shares at the time of the announcement was 82 million. The book;value of liabilities on the balance sheet of Slick Co. was
$1.46 billion. What;was the cost of this acquisition to the shareholders of Ginormous Oil?;
A. $1.46 billion;
B. $3.46 billion;
C. $4.92 billion;
D. $6.38 billion;
E. $8.38 billion;
F. None of the above.;
3. Ginormous Oil entered into an agreement to purchase;all of the outstanding shares of Slick Company for $60 per share. The
number of;outstanding shares at the time of the announcement was 82 million. The book;value of liabilities on the balance sheet of
Slick Co. was $1.46 billion.;Immediately prior to the Ginormous Oil bid, the shares of Slick Co. traded at;$33 per share. What value
did Ginormous Oil place on the control of Slick;Co.?;
A. $2.21 billion;
B. $2.71 billion;
C. $4.17 billion;
D. $6.38 billion;
E. None of the above.;
4. Which of the following statements is/are correct?;
I. Going-concern value of a firm is equal to the present value of expected net;income.;
II. When a buyer values a target firm, the appropriate discount rate is the;buyer’s weighted-average cost of capital.;
III. The liquidation value estimate of terminal value usually vastly understates;a healthy company’s terminal value.;
IV. The value of a firm’s equity equals the discounted cash flow value of the;firm minus all liabilities.;
A. II only;
B. III only;
C. I and II only;
D. II and III only;
E. II, III, and IV only;
F. None of the above.;
5. Which of the following statements are correct?;
I. Going-concern value of a firm is equal to the present value of expected;future cash flows to owners and creditors.;
II. When an acquiring firm purchases a target firm’s equity, the acquirer need;not assume the target’s liabilities.;
III. The market value of a public company reflects the worth of the business to;minority investors.;
IV. The fair market value of a business is usually the lower of its liquidation;value and its going-concern value.;
A. I and III only
B. II and IV only;
C. II and III only;
D. I, II, and III only;
E. II, III, and IV only;
F. None of the above.;
6. The following table presents forecasted financial;and other information for Scott’s Miracle-Gro Co.;What is an appropriate
estimate of Scott’s terminal value as of the end of;2014, using the perpetual-growth equation as your estimate?;
A. $161 million;
B. $363 million;
C. $3,690 million;
D. $3,838 million;
E. $5,357 million;
F. None of the above.;
7. The following table presents forecasted financial;and other information for Scott’s Miracle-Gro Co.;What is an appropriate estimate of
Scott’s terminal value of equity as of the;end of 2014?;A. $225 million;B. $3,833.0 million;C. $4,207.5 million;D. $4,365.0 million;E.
$6,788.1 million;F. None of the above.;
8. The following table presents forecasted financial;and other information for Scott’s Miracle-Gro Co.;What is an appropriate estimate of
Scott’s terminal value as of the end of;2014, using a warranted multiple of free cash flow as your estimate?
A. $155 million;
B. $2,898.5 million;
C. $3,007.0 million;
D. $4,365.0 million;
E. $7,042.2 million;
F. None of the above.;
9. Atmosphere, Inc. has offered $860 million cash for;all of the common stock in ACE Corporation. Based on recent market information;ACE
is worth $710 million as an independent operation. For the merger to make;economic sense for Atmosphere, what would the minimum
estimated value of the;enhancements from the merger have to be?
A. $0
B. $75 million;
C. $150 million;
D. $710 million;
E. $860 million;
F. None of the above.;
10. Consider the following premerger information about;a bidding firm (Buyitall Inc.) and a target firm (Tarjay Corp.). Assume that;neither
firm has any debt outstanding.;Buyitall has estimated that the present value of any enhancements that Buyitall;expects from acquiring
Tarjay is $2,600. What is the NPV of the merger assuming;that Tarjay is willing to be acquired for $28 per share in cash?;
A. $400;
B. $600;
C. $1,800;
D. $2,200;
E. $2,600;
F. None of the above.;
Figure 9.1In March of 2011, Macklemore Corp. considered an acquisition of Blue;Scholar Learning, Inc. (BSL), a privately-held educational
software firm. As a;first step in deciding what price to bid for BSL, Macklemore’s CFO, Ryan Lewis;has prepared a five-year financial
projection for the company assuming the;acquisition takes place. Use this projection and BSL’s 2010 actual financial;figures to answer the
questions below.;
11. What is BSL’s free cash flow (in $ millions) for;2011?;
A. – $938;
B. – $792;
C. – $7;
D. $122;
E. $1,091;
F. None of the above.;
12. Estimate the present value of BSL’s free cash flow;(in $ millions) for the years 2011 – 2015. Macklemore’s WACC is 8.0 percent.;BSL’s WACC is
11.5 percent, and the average of the two companies’ WACCs;weighted by sales, is 8.2 percent.;
A. – $1.29;
B. $628.24;
C. $720.58;
D. $726.68
E. $743.94;
F. None of the above.;
13. Estimate BSL’s value (in $ millions) at the end of;2010 assuming it is worth the book value of its assets at the end of 2015.;Macklemore’s
WACC is 8.0 percent. BSL’s WACC is 11.5 percent, and the average;of the two companies’ WACCs, weighted by sales, is 8.2 percent.;
A. $628.24;
B. $3,669.01;
C. $4,297.25;
D. $4,412.94;
E. $4,984.28;
F. $6,951.24;
G. None of the above.;
14. Assume BSL is worth the book value of its assets;at the end of 2015. Macklemore’s WACC is 8.0 percent. BSL’s WACC is 11.5;percent, and the
average of the two companies’ WACCs, weighted by sales, is 8.2;percent. What is the maximum acquisition price (in $ millions)
Macklemore;should pay to acquire BSL’s equity?;
A. $1,702.25;
B. $2,227.25;
C. $2,342.94;
D. $2,383.94;
E. $2,603.25;
F. $4,297.25;
G. None of the above.;
15. Estimate BSL’s value (in $ millions) at the end of;2010 assuming that in the years after 2015 the company’s free cash flow grows 4;percent
per year in perpetuity. Macklemore’s WACC is 8.0 percent. BSL’s WACC is;11.5 percent, and the average of the two companies’ WACCs, weighted
by sales;is 8.2 percent.
A. $4,297.25
B. $4,571.09;
C. $4,686.78;
D. $6,181.09;
E. $5,351.19;
F. $7,423.16;G. None of the above.;
16. Assume that in the years after 2015 the company’s;free cash flow grows 4 percent per year in perpetuity. Macklemore’s WACC is
8.0;percent. BSL’s WACC is 11.5 percent, and the average of the two companies;WACCs, weighted by sales, is 8.2 percent. What is the maximum
acquisition price;(in $ millions) Macklemore should pay to acquire BSL’s equity at the end of;2010?;
A. $1,976.09;
B. $2,501.09;
C. $2,877.09;
D. $4,195.09;
E. $4,571.09;
F. None of the above.;
17. Estimate BSL’s value (in $ millions) at the end of;2010 assuming that at year-end 2015 the company’s equity is worth 15 times;earnings after
tax and its debt is worth book value. Macklemore’s WACC is 8.0;percent. BSL’s WACC is 11.5 percent, and the average of the two
companies;WACCs, weighted by sales, is 8.2 percent.;
A. $628.24;
B. $3,669.01;
C. $7,429.74
D. $6,343.26;
E. $6,755.83;
F. $7,008.06;
G. None of the above.;
18. Assume that at year-end 2015 the company’s equity;is worth 15 times earnings after tax and its debt is worth book value.;Macklemore’s
WACC is 8.0 percent. BSL’s WACC is 11.5 percent, and the average;of the two companies’ WACCs, weighted by sales, is 8.2 percent. What is
the;maximum acquisition price (in $ millions) Macklemore should pay to acquire;BSL’s equity at the end of 2010?;
A. $3,484.68;
B. $4,723.26;
C. $4,938.06;
D. $5,554.68;
E. $6,343.26
F. None of the above.;
Short Answer Questions;
19. The following information is available about;Chiantivino Corp. (CC);An activist investor is confident that by terminating CC’s moneylosing;fortified wine division, she can increase free cash flow by $4 million annually;for the next decade. In addition, she estimates that an
immediate, special;dividend of $10 million can be financed by the sale of the division.;a. Assuming these actions do not affect CC’s cost of
capital, what is the;maximum price per share the investor would be justified in bidding for control;of CC? What percentage premium does this
represent?;b. Show your answer if you conduct a sensitivity analysis by assuming the cost;of capital is 15 percent and the increased cash flow is
only $3.5 million per;year.;
20. Below is a recent income statement for Gatlin;Camera;Calculate Gatlin’s free cash flow in this year assuming it spent $510 on new;capital
equipment and increased current assets net of noninterest-bearing;current liabilities $340.;The following table presents a four-year forecast
for;Kenmore Air, Inc.;
21. Estimate the fair market value of Kenmore Air at;the end of 2012. Assume that after 2016, earnings before interest and tax will;remain
constant at $200 million, depreciation will equal capital expenditures;in each year, and working capital will not change. Kenmore Air’s;weightedaverage cost of capital is 11 percent and its tax rate is 40;percent.;
22. Estimate the fair market value per share of;Kenmore Air’s equity at the end of 2016 if the company has 40 million shares;outstanding and
the market value of its interest-bearing liabilities on the;valuation date equals $250 million.;
23. Estimate the fair market value of Kenmore Air’s;equity per share at the end of 2012 under the following assumptions;a. EBIT in year 2016 is
$200 million, and then grows at 5 percent per year;forever.;b. To support the perpetual growth in EBIT, capital expenditures in year 2017;exceed
depreciation by $30 million, and this difference grows 5 percent per;year forever.;c. Similarly, working capital investments are $15 million in
2017, and this;amount grows 5 percent per year forever.;
24. Estimate the fair market value of Kenmore Air’s;equity per share at the end of 2012 under the following assumptions;a. EBIT in year 2016
will be $200 million.;b. At year-end 2016, Kenmore Air has reached maturity, and analysts expect its;equity will sell for 12 times year 2016 net
income.;c. At year-end 2016, Kenmore Air has $250 million of interest-bearing;liabilities outstanding at an average interest rate of 10 percent.;
25. Ametek, Inc. is a billion dollar manufacturer of;electronic instruments and motors headquartered in Paoli, Pennsylvania. Use the;following
information on Ametek and five other similar companies to value;Ametek, Inc. on December 31, 2010.;*American Power Conversion has no
interest-bearing debt;outstanding.;MV = Market value, BV = Book value. Market value is estimated as book value of;interest-bearing debt +
market value of equity. Earnings are fiscal year earnings.;
26. Rainy City Coffee’s (RCC) free cash flow next year;will be $100 million and it is expected to grow at a 4 percent annual rate;indefinitely. The
company’s weighted average cost of capital is 10 percent, the;market value of its liabilities is $1 billion, and it has 20 million
shares;outstanding.;a. Estimate the price per share of RCC’s common stock.;b. A hedge fund believes that by selling the company’s private jet
and;instituting other cost savings, it can increase RCC’s free cash flow next year;to $110 million and can add a full percentage point to RCC’s
growth rate;without affecting its cost of capital. What is the maximum price per share the;hedge fund can justify bidding for control of RCC?;
27. Empirical evidence indicates that the returns to;shareholders of the target firm vary significantly from the returns to the;shareholders of the
acquiring firm. Identify the shareholders that tend to;realize the smaller return. Does your answer depend on the way the acquisition;is
financed?