单选题All of the following statements are true about the price-to-sales ratio EXCEPT:
单选题JME Construction always uses the percentage of completion method of
recognizing revenue. During 2004 JME signs a contract in the amount of $10
million with the following data available:
Costs incurred to date
$2200000
Billings to date
$2000000
Cash collected
$1750000
Total cost of project
$8800000 How much gross
profit should JME recognize for 2004?
A. $ 300000.
B. $450000.
C. $ 200000.
单选题Which of the following statements about achieving proper timing in
fiscal policy is FALSE?
A. Improvements in quantitative methods have made the occurrence of
recessions or expansions quite predictable.
B. There is usually a time lag between when a change in policy is needed and
when the need is recognized by policy makers.
C. The time required to change tax laws and government expenditure programs
can be lengthy.
单选题Which of the following statements about NPV and IRR is FALSE? A. The NPV method assumes that all cash flows are reinvested at the cost of capital. B. For independent projects if the IRR is ＞ the cost of capital accept the project. C. For mutually exclusive projects you should use the IRR to rank and select projects.
单选题The values of nearly all bond market indexes are calculated using which of the following conventions for pricing and weighting, respectively? Pricing Weighting A. Trader priced Price
B. Trader priced Market Value
C. Market priced Market Value
单选题The least likely reason why a firm in perfect competition is a price taker is because:
单选题The category of items on the balance sheet that typically offers an
analyst the best inlbrmation on a non-financial firm' s investing activities is:
A. current liabilities.
B. noncurrent liabilities.
C. noncurrent assets.
单选题Economics commentator Gail Brythe is discussing the different factors that influence the elasticity of supply. She states the following:
Statement 1: Elasticity of supply is greater when a good or service can only be produced with unique or rare inputs.
Statement 2: Typically, a good's momentary supply elasticity is higher than its short-run supply elasticity, which in tuna is higher than its long-run supply elasticity.
Are Brythe's statements correct?
Statement 1 Statement 2
①A. Correct Correct
②B. Correct Incorrect
③C. Incorrect Incorrect
A. ①B. ②C. ③
单选题The probability of Event A is 40%
单选题Use the following data for a company leasing a machine with a capital
lease: The lease period is ten years. The
lease payments are $ 2980.59 at the end of each year. The firm
will own the asset at the end of the lease term but the salvage value will be
negligible. 8.5 % is the firm' s incremental borrowing rate. 8%
is the implicit lease rate. If the company uses straight-line
depreciation, the first year' s reported lease expense is:
A. $ 2635.
B. $ 2980.
C. $ 3600.
单选题The current spot rate for the USD/EUR is 0.7500
单选题Is an option-free bond's price sensitivity positively correlated with the:
Bond's coupon rate Level of market interest rates
①A. No Yes
②B. No No
③C. Yes No
A. ①B. ②C. ③
单选题A sample of size n=25 is selected from a normal population. This sample has a mean of 15 and a sample variance of 4. What is the standard error of the sample mean?
单选题Which of the following arises when a company incurs expenses that have not yet been paid as of the end of an accounting period? A. Prepaid expense. B. Accrued expense. C. Unearned revenue.
单选题The following information is available for a firm:
Number of shares outstanding
4 million
Tax rate
40%
Cost of debt (pretax)
10%
Current stock price
$20.00
Net income
$6 million
A plan to repurchase $10 million worth of shares using debt will most likely cause the earnings per share to:
单选题An investor does research about investment return and gathers the following nformation about a portfolio: Year Return 2009 11% 2010 7% 2011 3% If the investor contributed new funds to the portfolio at the beginning of each year, the time-weighted rate of return is m.ost likely: A. less than the money-weighted rate of return. B. the same as the money-weighted rate of return. C. greater than the money-weighted rate of return.
单选题New legislation setting a price ceiling will most likely cause:
单选题If the velocity of money is increasing at a rate of 1 percent per year
and real GDP is increasing at 2%, a 4% increase in the money supply will lead
to:
A. 6% inflation.
B. 5% inflation.
C. 3% inflation.
单选题Compared to a normal distribution, a lognormal distribution is least likely to be: A. skewed to the left. B. skewed to the right. C. useful in describing the distribution of stock prices.
单选题An investor purchases a stock for $40 a share and simultaneously sells a call option on the stock with an exercise price of $42 for a premium of $3/share. Ignoring dividends and transactions cost, what is the maximum profit that the writer of this covered call can earn if the position is held to expiration?