单选题Shigeo Kishiro recently purchased an American put option and Lendon Grey recently wrote an American call option on the same underlying stock, Tackel Sports (currently trading at $40 per share). Kishiro paid $2.75 for an exercise price of $38.00 and Grey received $3.75 for a strike price of $42. Assume that there are no transaction costs to exercise. At a stock price of $43: A. if Grey exercises, he will have gained a total of $4.75. B. the intrinsic put value is $0 and the put is at-the-money. C. the intrinsic call value is $1.
单选题Information about the coupon rates on the various long-term fixed-rate debt issue of a company can most likely be found in the:
单选题Thomas Turkman recently hired Georgia Viggen, CFA, as a portfolio manager for North South Bank
单选题An analyst does research about perfect competition. In a perfect competition market, the market's demand curve is most likely A. less elasticthan a single firm's demand curve. B. equally elastic as a single firm's demand curve. C. more elastic than a single firm's demand curve.
单选题The law of diminishing marginal returns explains: A. the shape of the long-run average cost curves. B. the upward sloping portion of the short-run marginal cost curve. C. the initial decrease in the short-run average costs.
单选题An analyst does research about options. A series of interest rate call options expiring on different dates but having the same exercise rate is best characterized as a(n): A. zero-cost collar. B. interest rate cap. C. interest rate floor.
单选题Which of the following policy tools is the least likely to be available to the U. S. Federal Reserve Board? A. Setting the discount rate at which banks can borrow from the Federal Reserve. B. Requiring the banking system to tighten or loosen its credit policies. C. Increasing or decreasing bank reserve requirements.
单选题Assume that the reserve requirement is 20 percent and banks currently have no excess reserves. If excess reserves stay at zero and the Federal Reserve buys $100 million of Treasury bills from the public, the money supply would increase by:
单选题Acompanysinformationfromitsfirstyearofoperationisasfollows:Usingaperiodicinventorysystemandtheweightedaveragemethod,theendinginventoryvalueisclosestto:
单选题A portfolio that pursues a stable-value investment strategy, would most likely invest in:
单选题BPM Ltd. has the following capital structure: 40 percent debt and 60 percent equity. The cost of retained earnings is 13 percent, and the cost of new common stock is 16 percent. BPM will not have any retained earnings available in the upcoming year. Its before tax cost of debt is 8 percent, and its corporate tax rate is 40 percent. BPM is considering between two mutually exclusive projects that have the following cash flows:
Today
Year 1
Year 2
Year 3
Project A
Cost=100 million
+50 million
+30 million
+50 million
Project B
Cost=150 million
+50 million
+60 million
+80 million Which project should BPM choose? A. Project B since its NPV is $ 22 million. B. Project A since its NPV is $16 million. C. Project A since its net present value (NPV) is +$5.01 million.
单选题Two parties agree to a forward contract on a non-dividend paying stock at a price of $103
单选题An analyst does research about earnings per share and gathers the following information about a company for 2011: ·Net income is $6 360 000 ·Preferred dividends paid is $460000 ·Common dividends paid is $600000 ·Shares outstanding are 2200000 on 1 January 2011 ·Shares repurchased are 400000 on 1 July 2011 The company's basic earnings per share for 2010 is closest to: A. $2.65 B. $2.95 C. $3.28
单选题The most important interest rate used in U. S. monetary policy is the federal funds rate. All else being equal, the federal funds rate will least likely change in a response to a change in the: A. real long-term interest rate. B. supply of real loanable funds. C. amount of reserves in the banking system.
单选题A bond that pays $ 100 in interest each year was purchased at the beginning of the year for $1050 and sold at the end of the year for $1100. An investor's holding period return is:
单选题If the stated annual interest rate is 9% and the frequency of compounding is daily, the effective annual rate is closest to:
单选题Selected information from Indigo Corp.'s financial activities in the year 4 included the following: Net income was $ 5600000. The tax rate was 40 percent. 500000 shares of common stock were outstanding on January 1. The average market price per share was $ 82 in year 4. Dividends were paid in year 4. 6000, 5 percent $ 1000 par value convertible bonds, which are convertible at a ratio of 20 shares for each bond, were outstanding since January year 3. 200000 shares of common stock were issued on July 1. 100000 shares of common stock were purchased by the company as treasury stock on October 1. Indigo Corp.'s diluted earnings per share (Diluted EPS) for year 4 was closest to:
单选题What is the market value-weighted index of the following three stocks assuming the beginning index value is 100 and a base value of $150000?
单选题Returns from a depository receipt are least likely affected by which of the following factors?
单选题An analyst does research about financial ratios. ALLIED company adopted IFRS and recorded an initial upward revaluation of long-term assets. Now the analyst tries to compare ALLIED to BLUEPOINT company reporting under U. S. GAAP and made relevant adjustments. Which of the following adjustments to BLUEPOINT reporting under U.S. GAAP is most appropriate? A. increases the profit margin. B. increases the return on assets. C. decreases the financial leverage.