单选题{{B}}Part One{{/B}}Directions: In this section, you will bear some short conversations. At the end of each conversation, a question will be asked about what was said. The conversation and the question will be spoken only once. During the pause, you must read the four suggested answers marked A, B, C and D, and decide which is the best answer. Then mark the corresponding letter on the ANSWER SHEET with a single line through the center.

单选题Chu Wang, CFA, gathered the following data to estimate the implied growth rate of dividends for Shenghai Toys Co. to use as an input for valuing the company’s common stock. 　　Return on Assets 10% 　　Profit Margin 5% 　　Total Assists CNY 50 million 　　Debt Ration 40% 　　Payout Ration 25% 　　Wang’s estimate of Shenghai Toys’ implied growth rate would be closest to: ()

单选题A repurchase agreement is a transaction in which ______. A. a lender agrees to buy back securities at a specified future date at a predetermined price B. a borrower agrees to buy back securities at a specified future date at a predetermined price C. a borrower agrees to sell back securities at a specified future date at a predetermined price D. none of the above

单选题Treasury bills are short - term and virtually free of default risk.

单选题A firm has fixed costs of ￡100,000 per month and variable costs of ￡25 for item. It sells them for ￡50 each. If it sells 5,000 units each month, what is the firm’s Margin of Safety? ()

单选题In dual currency system, all ledgers are maintained ______.

单选题Which of the following is not the alternative title of income statement?

单选题Which of the following is not among the generally accepted accounting principles? A. Cash basis. B. Prudence. C. Consistency. D. Going concern.

单选题Financial markets can be classified as ______. A. debt and equity markets B. primary and secondary markets C. money and capital markets D. all of tile above

单选题The company's ability to meet its obligations as they come, due ______.

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单选题Busy Company is a retailer. Most of its sales are made on credit terms. The following information relates to the first 4 years. Year 1 Year 2 Year 3 Year 4 ＄ ＄ ＄ ＄ Trade Debtor as at 31 December 500,000 400,000 550,000 600,000 Bad debt written off for the year ended 31 December - 30,000 10,000 29,000 Busy Company decides to set aside a provision for bad debts equivalent to 5% of trade debtors as at year end. Required: (a)Show how the provision for bad debts would be disclosed in the balance sheet as at 31 January Year 1 to Year 4. (b)Calculate the bad debt expenses for the respective profit and loss account for each of the 4 years.

单选题An increase of $1,000 in bank deposits will: ()

单选题Normally, ______ capital loans are secured by accounts receivable or by pledges of inventory and carry a floating interest rate on the amounts actually borrowed against the approved credit line.

单选题It is very reasonable to print the signature of the customer on the traveller's cheque.

单选题In what way do banks act as "market - makers" in foreign exchange markets?

单选题The original issuer of a security is referred to as a borrower, and the purchaser is referred to as a lender. Most securities traded in the secondary markets belong to one of two broad classifications: bonds or stocks. Bonds are credit instruments redeemable in a given number of dollars and yielding a fixed return. Important characteristics of bonds include face (or par) value, maturity date, and coupon rate. Face values for most bonds are 5; 1 000, although some government issues have $ 10 000 face values. Face value represents the total amount of cash payable to the owner at the bond's maturity date, which can range from 1 to 30 years. Prior to maturity, yearly coupon payments equal to the coupon rate times the face value are paid. These coupons represent a profit to the bond owner. Coupon rates on newly issued bonds closely follow the level of interest rates in the economy. Once set in the initial primary market sale, however, the coupon on a given issue will not change in response to changing interest rates in the economy. Instead, the market price of the bond changes. When a bond's coupon rate is equal to the general level of interest rates prevailing in the economy, the bond's market price will be equal to its face value. When the coupon rate is higher than prevailing interest rates, the bond will sell at a premium over its face value. When the coupon rate is lower than prevailing interest rates, the bond will sell at a discount from its face value. Interest on bonds constitutes a legal obligation, and failure to pay it may result in bankruptcy. Preferred stocks are similar to bonds in that they have stated face values (often 100) and a specified dividend payment (similar to a bond's coupon). They differ from bonds because they do not have a scheduled maturity date and because yearly dividends may remain unpaid for a few years without forcing the issuer into bankruptcy. Common stocks have no specified yearly cash payments or maturity date. These securities have an infinite life on which cash will be earned only if the issuer has satisfactory profits. Because the cash returns on bonds are the most certain, they are viewed as the least risky investment and provide the lowest expected rate of return. Preferred stocks are viewed as more risky than bonds and less risky than common stocks. Common stocks are the most risky and provide the largest expected returns.

单选题Only what happens if the supply is less than demand? （　　）

单选题 Passage 3 Security is required on loans for several reasons. One of the most common is probably the borrower's financial weakness. Such weakness may be indicated by several factors, including heavy obligations to creditors, poor management, and insufficient income. Borrowers in this financial condition can strengthen their credit by pledging certain assets. Having a secured loan may also be a psychological advantage for a bank. As long as the borrower has greater equity in the pledged assets than does the bank and the bank is in a preferred position and can foreclose in the event the loan agreement is broken, the borrower has a strong incentive to repay the obligation. The length of a loan also has a bearing on whether it will be secured. As the term of the loan lengthens, the risk of non-repayment increases. Loans for purchasing real estate are nearly always secured, especially if the funds are borrowed for long periods of time, because of risk of non-repayment. Unsecured loans are based more exclusively on the borrower's integrity and financial condition, expected future income, and past record of repayment. Contrary to popular belief, the largest loans and the greatest dollar volume of loans made by some banks are often granted on an unsecured basis. The largest commercial borrowers are able to borrow on an unsecured basis. Some companies are considered by banks to be prime borrowers, and in many cases they receive the most favorable interest rate. Such companies have competent management, products and services that are well accepted in the marketable, relatively stable profits, and a strong financial condition. They provide their banks with financial statements from which it is relatively easy to determine their financial condition and keep track of their progress. Business firms are not the only ones who borrow on an unsecured basis—many individuals enjoy this privilege. Persons who own their homes, have a steady job which they have held for years, and have a record of prompt payment both at the bank and at retail stores are commonly in a position to borrow on an unsecured basis. An applicant's ability and willingness to pay are projected into various situations.