单选题The probability of A is 0.4. The probability of AC is 0.6. The
probability of (B|A) is 0.5, and the probability of ( B| AC) is 0.2.
Using Bayes' formula, what is the probability of ( A|B) ?
单选题Which of the following statements about the assumptions of efficient
capital markets and the conclusion of the efficient market hypothesis is FALSE?
A. If markets are efficient, investors should not trade often.
B. In testing for semistrong-form market efficiency, researchers typically
adjust for the stock's risk.
C. Tests of market efficiency have found no strategy that produces excess
returns above the market after accounting for transaction costs.
单选题A firm has an expected dividend payout ratio of 48 percent and an expected future growth rate of 8 percent. What should the firm"s price to earnings ratio (P/E) be if the required rate of return on stocks of this type is 14 percent and what is the retention ratio of the firm?
P/E ratio Retention ratio
①A. 6.5 48%
②B. 8.0 52%
③C. 8.0 48%
A. ①B. ②C. ③
单选题In estimating the value of inactively traded securities of a closely held corporation, which of the following is applied to the market value of a publicly traded comparable company?
单选题An analyst does research about investment risk. Which of the following statements best describes systematic risk? A. Total risk. B. Diversifiable risk. C. Variability in all risky assets caused by macroeconomic variability.
单选题A firms financial statements reflect the following:
Net income
$1700000
EBIT
$2900000
Effective tax rate
35%
Interest payments
$285000
Comon equity
$3100000
Total assets
$6600000
Preferred dividends paid
$1100000
Weighted avg
单选题A firm is purchasing a new file server for $ 680000, with a 4-year expected life and a salvage value of $ 50000. It is expected that the new server will generate an additional $ 200000 in revenue each year. The firm will use the straight line method to depreciate the server for financial reporting, but the sum-of-year' s digits (SYD) method for tax purposes. The tax rate is 35 percent. What will be the accumulated deferred tax liability at the end of the second year?
单选题From an initial situation of long-run equilibrium at full-employment real GDP, an increase in aggregate demand that is permanent will: A. Increase real GDP, but not prices in the short run, while in the long run, prices will increase, nominal GDP will increase as a result and real GDP will remain at the new (short-run) higher level. B. Increase nominal GDP, real GDP, and prices in the short run, while in the long run, prices will increase further but real GDP will decrease to its original level. C. Increase nominal GDP, real GDP, and prices in the short run and in the long run.
单选题David Bravoria, CFA, is an independent financial advisor for a high net worth client with whom he had not had contact in over two years
单选题Which of the following is least likely to be an incentive for structuring a lease as an operating lease instead of a capital lease? A. The period of use is short relative to the overall life of the asset. B. The lessee is in a high tax bracket and the lessor is in a low tax bracket. C. The corporate bond indenture contains specific covenants relating to financial policies that the company must follow.
单选题Which of the following should be classified as cash flows from investing (CFI) by Elegant, Inc., which reports under U.S. CAAP? A. Elegant's payment to purchase equipment to be used in its business. B. Interest received by Elegant, Inc. on a bond Elegant, Inc. purchased from an outside investor. C. Dividends received by Elegant, Inc. from an investment in another firm.
单选题Which of the following statements regarding the verification of a company's claim to be in compliance with the GIPS standards is NOT true? A. An initial verification must cover a minimum period of five years. B. Verification must be performed by an independent third-party. C. A verifier may accept the work of a previous verifier's part of the basis opinion.
单选题Sometimes floating rate issues have caps and/or floors, which limit the maximum or minimum coupon rate that the issue will pay. Which of the following statements is TRUE with regard to floating rate issues that have caps and floors? A. A floor is a disadvantage to both the issuer and the bondholder while a cap is an advantage to both the issuer and the bondholder. B. A floor is an advantage to both the issuer and the bondholder while a cap is a disadvantage to both the issuer and the bondholder. C. A cap is a disadvantage to the bondholder while a floor is a disadvantage to the issuer.
单选题Indata Company sold a specially manufactured item for $ 5000000 on
December 31,2006. The item was sold on an installment sale basis, with $1000000
paid on the date of the sale and $ 4000000 to be paid in four annual
installments of $1000000 plus interest at the market rate of 6 percent.
Indata' s tax rate is 40 percent and its costs to construct the item were $
2500000. Indata recognizes the entire amount of the sale as income on the date
the sale is made for accounting purposes, but not until cash is received for tax
purposes. On its balance sheet dated December 31,2006,
Indata will, as a result of the transaction described above, increase its
deferred tax:
A. liability by $ 200000.
B. asset by $ 800000.
C. liability by $ 800000.
单选题If the stated annual interest rate is 20% and the frequency of compounding is monthly, the effective annual rate (EAR) is closest to:
单选题If a regulatory agency intervenes to reduce prices, a monopoly will most likely expand output to the level where: A. Marginal cost equals supply. B. Average cost equals marginal revenue. C. Average cost equals demand.
单选题Which of the following about the breach of Standard Ⅳ(B) Priority of Transactions is correct?（ ）
单选题A company has the following data associated with it:
A target capital structure of 10% preferred stock, 50% common equity and 40%
debt. Outstanding 20-year annual pay 6% coupon bonds selling
for $894. Common stock selling for $45 per share that is
expected to grow at 8% and expected to pay a $2 dividend one year from
today. Their $100 par preferred stock currently sells for $90
and is earning 5%. The company's tax rate is 40%.
What is the after tax cost of debt capital and after tax cost of
preferred stock capital? Debt Capital
Preferred Stock Capital ①A. 4.2%
6.3% ②B. 4.5%
5.6%
③C. 4.2% 5.6%
A. ①
B. ②
C. ③
单选题Mary Hiller, CFA, is a senior analyst at a mutual fund. She is also a member of the Board of the Directors of her daughter's Skating Club. She is often asked for advice about the management of the club budget and about possible short-term investments, but she is not paid for this advice. She does not undertake any research to answer these questions, providing information based only on the general practices of the mutual fund at that moment. The only benefit she receives is a free monthly membership for her daughter that would usually cost $182. What should she do before making any recommendations, in order to comply with the CFA Institute requirements? A. Inform her current clients about her outside consulting. B. Obtain prior permission from her employer. C. Discontinue her membership in the Board of the Directors at the Skating Club.
单选题To comply to the Standards of Professional Conduct relating to preservation of confidentiality, a member must keep former clients information confidential unless the information: A. is part of a professional conduct investigation by CFA Institute Designed Officer. B. is related only to personal data, such as name and email address. C. concems a client's illegal activities, while applicable law still requires to maintain confidentiality.