单选题An analyst does research about operating lease and capital lease and notes that the footnotes to the financial statements for a lessee company indicate that the company leases a substantial portion of the facilities required for efficient operation. The present value of lease payments is $35 million for facilities leased under capital leases and $25 million for facilities leased under operating leases. Other companies in the same industry own their facilities. Before the analyst compares the company's financial ratios with the industry's ratios, the most appropriate adjustments to that company's balance sheet would be to increase: A. both liabilities and assets by $25 million. B. both liabilities and assets by $60 million. C. liabilities by $25 million and decrease equity by $25 million.
单选题Which of the following most accurately describes the shapes of the
average variable cost (AVC) curve and the average cost (AC) curve?
A. The AVC curve and the AC curve are both U-shaped.
B. The AVC curve is U-shaped and the AC curve declines initially then
flattens.
C. The AVC curve declines initially then flattens and the AC curve is
U-shaped.
单选题What is the relationship between price and marginal revenue for a price searcher?
单选题An analyst does research about corporate govemance. The interests of a company's share owners are least likely to be served if that company's executive management compensation program: A. Encourages long-term growth instead of short-term increases in share value. B. Includes downward reprising of strike prices for previously granted stock options. C. Includes an element based on share-price performance relative to that company's competitors and peers.
单选题Evelyn Mastakis, CFA, manages a portfolio with $2000000 for a high-networth client. The client needs to withdraw $100000 for a charity in one year without invading principal. Mastakis gathers the following information about three possible allocations of assets. Allocation 1 Allocation 2 Allocation 3 Expected annual return 13% 8% 26% Standard deviation of retums 9% 4.5% 14% According to Roy's safety-first criterion, which of the following allocations Mastakis should choose? A. Allocation 1. B. Allocation 2. C. Allocation 3.
单选题Which of the following statements is the most appropriate treatment of floatation costs for capital budgeting purposes? Floatation costs should be:
单选题Reynaldo and Apple are training a new analyst, Norah Spears. They ask
Spears what she knows about duration and convexity. Spears replies with four
statements:
Statement 1:
Modified duration is a better measure than effective
duration for bonds with embedded options.
Statement 2:
The convexity adjustment corrects for the error
embedded in the duration.
Statement 3:
Modified duration ignores the negative convexity of a
callable bond.
Statement 4:
Convexity of option-free bonds is always added to
duration to modify the errors in calculating price
volatility. Which of the following
regarding Spears' statements is TRUE?
A. Spears is correct with respect to all four statements.
B. Spears is correct with respect to Statement 2, but incorrect with respect
to Statement 4.
C. Spears is correct with respect to Statement 3, but incorrect with respect
to Statement 1.
单选题Thefollowinginformationappliestoaneconomy:Totalpopulation1,100Workingagepopulation975Laborforce750Underemployed120Unemployed95Discouragedworkers80Frictionallyunemployed25Voluntarilyunemployed40Theunemploymentrateintheeconomyisclosestto:
单选题Assume the present value discounted by 15% is $ 3500000 and it is used the straight-line depreciated method. Find out the reported lease related expense for the first year. The lease is a 10-year capital lease with annual payments of $ 500000. There is a guaranteed residual value of $ 500000 at the end of the lease.
单选题Which characteristic is a firm least likely to exhibit when it operates in a market with a downward sloping demand curve, many competitors, and zero economic profits in the long run?
单选题George, CFA, a citizen of Germany, is doing business in a neighboring country. According to AIMR Standards of Professional Conduct, which statement applies to George' s conduct when he is conducting business in the other country? A. He is not bound by any of the regulations because France and the other country have no jurisdiction in each other's countries. B. He should adhere to whichever of France's, the other country's or AIMR's rules that impose the highest degree of responsibility. C. He should only adhere to the securities laws of France even though they do not cover some of the provisions found in the laws of the other country that relate to his work.
单选题As the initial step in converting business transactions into financial information, which of the following is useful obtaining detailed information regarding a particular transaction? A. Trial balance. B. General ledger. C. Journal entry.
单选题How much should an investor have in a retirement account on his 65th birthday if he wishes to withdraw $ 40000 on that birthday and each of the following 14 birthdays, assuming his retirement account is expected to earn 14.5 percent?
单选题A fixed income portfolio manager is evaluating investments in the mortgage market but is concerned about prepayment risk. The security that will most likely minimize prepayment risk is. A. mortgage passthrough security. B. a portfolio of interest-only mortgage loans. C. tranche B of a collateralized mortgage obligation.
单选题If a firm uses accelerated depreciation for tax purposes and straight-line depreciation for financial reporting, which of the following results is least likely?（ ）
单选题An analyst does research about index management. Which of the following indexes is most likely to be rebalanced frequently? A. Price-weighted index. B. Equal-weighted index. C. Market-capitalization weighted index.
单选题The section of the Global Investment Performance Standards (GIPS) that outlines defining the firm and documenting firm policies and procedures is:
单选题Which of the following organizational structures usually has the lowest cost of raising external capital?
单选题Common-size financial statements are most likely an output of which step in the financial analysis framework?
单选题A normally sloped yield curve has a: