单选题Which of the following statements about nonrecurring items is most accurate? A. The correction of an accounting error is reported net of taxes below extraordinary items on the income statement. B. Uninsured losses from earthquakes and expropriations by foreign governments can be classified as extraordinary items under U. S. GAAP and reported net of taxes after income from continuing operations. C. Discontinued operations are classified as unusual or infrequent and are reported as a component of net income from continuing operations.
单选题With respect to claiming compliance with the CFA Institute Code of Ethics and Standards of Professional Conduct, which of the following statements is least accurate? A firm: A. is encouraged to adopt the Code of Ethics and Standards of Professional Conduct as the company's code and ethics. B. can claim compliance if its code of ethics has been verified by CFA Institute. C. can claim compliance after ensuring its code of ethics meets the principles of the Code of Ethics and Standards of Professional Conduct.
单选题Which of the following performance measures most likely relies on systematic risk as opposed to total risk when calculating a risk-adjusted return?
单选题Which of the following is least likely to be a warning sign of low quality earnings?
单选题The following chart is best described as an example of which type of technical analysis chart?
单选题Ken Wallace is interested in testing whether the average price to
earnings (P/E) of firms in the retail industry is 25. Using a t - distributed
test statistic and a 5% level of significance, the critical values for a sample
of 40 firms is/are:
A. -1.685 and 1.685.
B. -1.96 and 1.96.
C. -2.023 and 2.023.
单选题Which of the following statements least accurately describes the
advantages and disadvantages of valuation with the P/E multiple?
A. Advantage: P/E differences are significantly related to long-run average
stock returns. Disadvantage: The volatile, transitory portion of
earnings makes the interpretation of P/Es difficult for analysts.
B. Advantage: Earnings power is the primary determinant of investment
value. Disadvantage: Management discretion within allowed
accounting practices can distort reported earnings.
C. Advantage: P/E valuation can accommodate negative earnings.
Disadvantage: P/E valuation is difficult to use for firms with relatively few
fixed assets.
单选题If market rates do not change, as time passes the price of a zero-coupon bond will:
单选题Ananalystgatheredthefollowinginformationaboutacompany"scommonstock:Thevalueofashareofthecompany"scommonstockisclosestto:A..B..C..
单选题Which of the following statements about stock valuation is least likely correct? A. If estimated value ＜ the market price, buy the stock : it's under priced. B. If the expected rate of return ＞ the required rate, buy the stock; it's under priced. C. If the expected rate of return ＜ the required rate, don't buy the stock; it's under priced.
单选题On January 1st of the year, an investor purchases $100,000 in par value of a new Treasury Inflation Protection Security (TIPS) issue that has a 2
单选题All else being equal, the floor on a floating-rate security is most likely to benefit the: A. issuer if interest rates fall. B. bondholder if interest rates fall. C. bondholder if interest rates rise.
单选题Which of the following is a reason to use the swaps market rather than the futures market? To : A. reduce the credit risk involved with the contract. B. increase the liquidity of the contract. C. maintain the firm's privacy.
单选题Which of the following industries is most likely characterized by low barriers to entry, fierce competition, fragmented structure, and weak pricing power?
单选题Kachelmeyer, Inc., signs an agreement on 1 January 2005, to lease equipment from Henderson Company. The term of the lease is five years, and the estimated economic life of the asset is also five years. The agreement requires equal annual payments of $ 36285.90, with the first payment on 1 January 2005. Kachelmeyer' s incremental borrowing rate is 12 percent. Henderson' s implicit rate is 10 percent and is known to Kachelmeyer. The prime rate is 8 percent. The discount rate that Kachelmeyer should use to capitalize the lease is:
单选题Ananalystisdoingresearchaboutafloating-ratesecurity.Allelseequal,istheinterestrateriskassociatedwithafloating-ratesecuritypositivelyrelatedto:
单选题If Stock X's expected return is 30 percent and its expected standard deviation is 5 percent, Stock X's expected coefficient of variation is:
单选题T - bill yields can be thought of as : A. real risk -free rates because they contain an inflation premium. B. real rates because they contain an inflation premium. C. nominal risk -free rates because they contain an inflation premium.
单选题An analyst has calculated the following ratios for a company:
Operating profit margin
17.5%
Net profit margin
11.7%
Total asset turnover
0.89 times
Return on assets (ROA)
10.4%
Financial leverage
1.46
Debt to equity
0.46
The companys return on equity (ROE) is closest to:
单选题All of the following are cash flows from operations EXCEPT: