单选题Capital Corp
单选题Use the data below to determine which of the statements is TRUE?
As of December 31
Company
Stock Price
Shares Outstanding
A
$25
20000
B
$50
20000
C
$100
10000
A. A 100% increase in the stock price of Company A will have a smaller
impact on the price-weighted index than a 100% increase in the stock price of
Company C. B. For a given percentage change in the stock price,
Company A will have a greater impact on the market-value weighted index than
Companies B or C.
C. For a given percentage change in the stock price, Company B will have
less of an impact on the market-value weighted index as Company
C.
单选题Selmer Jones has just inherited some money and wants to set some of it aside for a vacation in Hawaii one year from today. His bank will pay him 5 % interest on any funds he deposits. In order to determine how much of the money must be set aside and held for the trip, he should use the 5% as a(n).
单选题Rank, from highest to lowest, the following investors by their most likely capacity to tolerate risk.
Age
Marital Status
Children
Net Worth
Annual Income
Investor A
50
Widowed
0
$4 million
$ 50000
Investor B
30
Married
1
$4 million
$ 100000
Investor C
70
Married
0
$1 million
$ 30000
Investor D
50
Married
2
$1 million
$ 50000
单选题Which of the following strategies is most likely to be considered good
payables management?
A. Paying trade invoices on the day they arrive.
B. Paying invoices on the last possible day to still get the supplier's
discount for early payment.
C. Taking trade discounts only if the firm's annual return on short-term
investments is less than the discount percentage.
单选题A company has three mutually exclusive capital projects with varying levels of risk and an analyst gathers the following information: Project 1 Project 2 Project 3 Internal rate of return 19% 22% 21% Profitability index 4.7 3.3 3.5 Payback period (years) 1.2 0.9 1.0 The most appropriate investment decision is to invest in: A. Project 1. B. Project 2. C. Project 3.
单选题Which of the following statements is a requirement for compliance with the Standards of Professional Conduct relating to knowledge of the law? A. Dissociate from any violation of applicable laws, rules, or regulations. B. Report violations to the governmental orregulatory organizations. C. Seek the advice of compliance personnel or legal counsel conceming legal requirements when in doubt about appropriate action to undertake.
单选题Epsilon Inc, a U
单选题An investor owns the following portfolio today.
单选题When comparing a barter economy with an economy that uses money as a medium of exchange we would expect increased efficiencies due to a reduction in which of the following?
单选题Jan Jurgen, CFA charterholder, recently accepted a position in the Treasury area of a conservatively managed commercial bank. Jurgen intends to suggest the use of plain-vanilla interest rate swaps at today's Asset & Liability Management Committee meeting. Jurgen is least correct to argue that the use of interest rate swaps will: A. reduce the exposure from the mismatch between floating rate assets and fixed rate liabilities. B. create arbitrage profits by exploiting market inefficiencies. C. allow more flexibility in packaging cash flows.
单选题An analyst does research about the dividend discount model (DDM) and gathers the following information to evaluate the effective dividends and leverage on future growth: Scenario 1 Scenario 2 Dividend payout ratio 65% 45% Financial leverage 3.5 2.3 If return on asset is the same for each scenario, the expected dividend growth rate is: A. higher under Scenario 1. B. higher under Scenario 2. C. the same under both under Scenario land Scenario 2.
单选题If a futures investor has a SHORT position and futures prices rise, his margin account will:
单选题Regarding a companys production function, both labor costs and capital costs are best described as:
单选题A bond with a par value of $100 matures in 10 years with a coupon of 4
单选题Jefferson Piedmont, CFA, a portfolio manager for Park Investments, plans to manage the portfolios of several family members in exchange for a percentage of each portfolios profits
单选题All of the following are investment constraints EXCEPT: A. liquidity needs. B. pension plan contributions of the employer. C. tax concerns.
单选题The following information relates to a profitable company that offers a warranty on a new product introduced in 2009:
accrued warranty expenses for the warranty in 2009
$300000
actual expenditures for repairs under the warranty in 2009
$200000
If the company"s tax rate is 35 percent, which of the following most accurately describes the deferred tax recorded in 2009 with respect to the new product warranty?
单选题If the last unit of input increases total product we know that the marginal product of that input is:
单选题An investor is considering floating-rate debt and other investments to protect against unexpected increases in inflation. Her friend suggests Treasury Inflation Protected Securities (TIPS) because the coupon rate is adjusted for inflation semiannually. The friend also states on-the-run Treasury issues have narrower bid-ask spreads than other Treasury issues. Should the investor agree or disagree with the friend's statements about TIPS and on-the-run issues? TIPS On-the-run issues ①A. Agree Agree ②B. Agree Disagree ③C. Disagree Agree