单选题Edison, CFA, supervises a group of research analysts, none of whom are CFA charter holders or CFA candidates. He has attempted on several occasions to get his firm to adopt a compliance system to insure that applicable laws and regulations are followed. The firm's principals, however, have never adopted his recommendations. According to AIMR Standards of Professional Conduct, Edison at this point should: A. take no action, because the employees are not CFA charter holders or CFA candidates. B. take no action, because he has fulfilled his obligations under AIMR standards. C. decline in writing to accept supervisory responsibility until his firm adopts reasonable compliance procedures.
单选题Haltata Turf& Sod currently uses the first in, first out (FIFO) method to account for inventory. Due to significant tax-loss carryforwards, the company has a tax rate of zero. Currently prices are rising and inventory is stable or increasing. If the company were to use last in, first out (LIFO) instead of FIFO : A. net income would be lower, and cash flows would be higher. B. cash flow would remain the same, and working capital would decrease. C. gross margin would increase, and average stockholder' s equity would decrease.
单选题An analyst who is interested in a company"s long-term solvency would most likely examined the:
单选题Assuming that markets are efficient, which of the following statements is FALSE? A. Markets will not be volatile. B. Investors should not trade often. C. Investors should buy and hold passively managed index funds.
单选题The yield to maturity on an annual-pay bond 5.6 percent, what is the
bond equivalent yield for this bond?
A. 5.43%.
B. 5.60%.
C. 5.52%.
单选题Consider a call option expiring in 110 days on a non-dividend-paying stock trading at 27 when the risk-free rate is 6%. The lower bound for a call option with an exercise price of 25 is:
单选题In the Phillips curve model of the relationship between inflation and
the unemployment rate, a shift to a new short-run Phillips curve represents a
change in the:
A. expected inflation rate.
B. actual inflation rate.
C. unemployment rate.
单选题If a company reported fictitious revenue, it could try to cover up its fraud by（ ）
单选题An analyst does research about interest rate risk. The duration of a bond with $1000 face value is 4.5, and its current price is $990. Which of the following is the best estimate of the bond price change if interest rates increase by 3%? A. -$133.65 B. -$135.00 C. $133.65
单选题Partial information on three baskets containing goods A and B is given in the table below. The marginal rate of substitution of B for A, (MRSBA), at Basket 2 is also provided.
Basket
Units of A
Units of B
MRSBA
1
?
30
2
50
35
4.0
3
40
40
A consumers indifference curves are strictly convex and he claims that he is indifferent between Baskets 2 and 3. If he is also indifferent between Baskets 1 and 3, the number of units of A in basket 1 is most likely:
单选题Which of the following statements is least likely considered to be a nonoperating transaction expense from the perspective of a manufacturing firm?
单选题Examples of potentially dilutive securities include all of the following EXCEPT:
单选题Colin Caldwell, CFA, is the chief investment officer of Northwest Mutual Fund, whose investment objective is to invest in fixed income emerging market securities
单选题Which of the following inventory accounting methods must be used for financial reporting purposes if a U. S. firm uses last in, first out (LIFO) for tax purposes?
单选题A 30-day $10,000 U.S. Treasury bill sells for $9
单选题Which of the following statements regarding the mark to market of a futures account is FALSE? Marking to market of a futures account: A. may result in a margin balance above the initial margin amount and may be done more often than daily. B. is only done when the settlement price is below the maintenance price. C. effectively adjusts the price of the future to the new equilibrium level.
单选题The financial manager at Genesis Company is looking into the purchase of an apartment complex for $ 550000. Net after-tax cash flows are expected to be $ 65000 for each of the next five years, then drop to $ 50000 for four years. Genesis' required rate of return is 9 percent on projects of this nature. After nine years, Genesis Company expects to sell the property for after-tax proceeds of $ 300000. What is the internal rate of return (IRR) and net present value (NPV) on this project? IRR NPV ①A. 6.66% -$ 64170
②B. 7.01% -$ 53765
③C. 8.09% -$ 21535
A．① B．② C．③
单选题Cassie's Card Co. expects highly volatile earnings for the next four years, and then they expect earnings to level off to their normal rare of 8 percent. Dividends and earnings are expected to grow at 20% for years 1 and 2, -5% for year 3, and 15% in year 4. The last dividend paid by Cassie's was $ 2.00. If Jason Giggs requires a 12 percent return on Cassie's, the price he is willing to pay for the stock is closest to:
单选题Macklin Metals has received 80 million pounds sterling. The company plans to spend $120 million on a project in the United States in 90 days. Macklin inters into a cash settlement currency forward to exchange the pounds for U. S. dollars at a rate of $1.50 per pound in 90 days. If the exchange rate is $1.61 per pound at the settlement date, the cash settlement Macklin will pay or receive is closest to:
单选题A company"s $100, 7% preferred stock is currently selling for $124. What is the company"s cost of preferred stock?