单选题A worker is most likely to earn economic rent when the marginal revenue product (MRP) from her labor and the supply curve for her type of labor exhibit which of the following characteristics? MRP Supply curve ①A. High More elastic
②B. Low Less elastic
③C. High Less elastic
单选题The management of Berger Investments has changed their policy and will
capitalize some costs instead of expensing them. Due to the new policy, Berger
will:
A. have smoother reported income over time.
B. report the same income pattern as when it expenses the costs.
C. report a smooth income pattern initially, but income variability will
increase over time.
单选题Utilitarianism, in reference to economic fairness, refers to the idea that: A. the greatest good occurs when wealth is equalized. B. the greatest utility of production and consumption results from competitive markets. C. equality of opportunity is an important measure of economic fairness.
单选题Given that a put on a stock with a strike price of 60 is priced at $5 per share, while a call with a strike price of $60 is priced at $8. Find out the maximum per share loss and the maximum per share gain to the writer（ ）
单选题An analyst developed the following data on Stock X and the market:
Return on the market =0.1200 Covariance between the return on
Stock X and the return on the market = 0.0288 Correlation
coefficient between the return on Stock X and the return on the market =
0.8000 Standard deviation of the returns on Stock X =
0.1800 Standard deviation of the returns on the market =
0.2000 Based on the data above, the beta of Stock X is:
A. 0.144.
B. 0.720.
C. 0.800.
单选题The calculation of the income recognized in the third year of a five-year construction contract accounted for using the percentage-of-completion method includes the ratio of: A. costs incurred in year 3 to total estimated costs. B. total costs incurred to date to total billings to date. C. total costs incurred to total estimated cost.
单选题Normal Corp. has a current ratio above 1 and a quick ratio is less than 1. Which of the following actions will increase the current ratio and decrease the quick ratio? Normal Corp.:
单选题An investor buys 200 shares of ABC at the market price of $100 on full
margin. The initial margin requirement is 40 percent and the maintenance margin
requirement is 25 percent. If the shares of stock later sold
for $ 200 per share, what is the rate of return on the margin transaction?
A. 250%.
B. 100%.
C. 200%.
单选题If a company presents its balance sheet in a format that includes subtotals for current assets, current liabilities, noncurrent assets, and noncurrent liabilities, it is most likely presented（ ）
单选题An analyst does research about earnings per share and gathers the following information about a company: Net income $900000 Convertible debt par value, 5% coupon $3000000 Average common shares outstanding $2000000 Common shares issued if debt is converted $85000 Corporate tax rate 35% The company's reported diluted earnings per share using the if-converted method is closest to: A. $0.45 B. $0.48 C. $0.50
单选题All else being equal, an increase in expected yield volatility would most likely cause the price of: A. a callable bond to increase and the price of a putable bond to decrease. B. a callable bond to decrease and the price of a putable bond to increase. C. a callable bond to increase and the price of a option-free bond to decrease.
单选题The expected dividend one year from today is $2.50 for a share of stock priced at $22.50. The long-term growth in dividends is projected at 8 percent. The cost of common equity is closest to :
单选题An analyst is serving on the Board of Directors of a local publicly traded company. To avoid violating the CFA Institute Code and Standards, the analyst must disclose this to: A. only his employer. B. both his employer and his clients and prospective clients. C. only clients and prospective clients.
单选题According to the Fisher effect, an increase in expected inflation will most likely increase:
单选题Consider the following two final consumer goods: Good W requires the inputs of raw material R and intermediate goods S and T. Good X requires the inputs of raw material R and intermediate goods U and V. If demand for Good W increases and demand for Good X decreases, which of the following out comes is least likely? A. Some of raw material R will be diverted away from the producers of Good X. B. The price of Good U will decrease and the price of Good S will increase. C. More resources will be devoted to producing Good W and less to producing Good T.
单选题The problem associated with managers making decisions that benefit
themselves at the expense of stockholders is called the:
A. shirking problem.
B. productivity problem.
C. principal-agent problem.
单选题A firm pays accrued wages with cash. Assuming a current ratio and a quid (acid test) ratio that are both greater than 1.0, what will be the impact on the current ratio, the quick ratio and net income? Current ratio Quick ratio Net income ①A. Decrease Decrease Decrease ②B. Decrease Increase Increase ③C. Increase Increase Stay the same
单选题Which of the following statements concerning the effects of interest rate volatility on bonds with embedded options is FALSE? A. As yield volatility increases, the value of callable bonds decreases. B. A putable bond's value is its straight bond value plus the value of the embedded put option. C. A callable bond's value is its straight bond value plus the value of the embedded call option.
单选题A dealer in a casino has rolled a five on a single die three times in a row. What is the probability of her rolling another five on the next roll, assuming it is a fair die?
单选题A company has a "0" earnings retention rate, the firm"s P/E ratio will equal: