单选题Which of the following is an independent auditor least likely to do with respect to a company' s financial statements? A. Provide an opinion concerning their fairness and reliability. B. Perform an independent review of them. C. Prepare and accept responsibility for them.
单选题An investor paid a full price of $1035.70 each tor a group of bonds. The purchase was between coupon dales, and accrued interest was $34.12 per bond. What is each bond"s clean price?
单选题All of the following are violations of Standard Ⅲ (B), Fair Dealing, EXCEPT a member: A. places a trade for her discretionary accounts before placing a trade for her non-discretionary accounts. B. places a trade for the firm account before issuing a buy recommendation. C. telephones clients in distant cities the day after a buy recommendation is mailed to all clients because their mail service is later than the member's local clients.
单选题An analyst does research about inventory valuation methods. Which of the following is most appropriate to account for precious gemstones? A. FIFO. B. LIFO. C. Specific identification.
单选题An analyst is investigating the distribution of the SMG stock's return over time. He calculated the mode of 12 percent, the mean of 11 percent, and the median of 11.5 percent. The distribution can be best described as: A. positively skewed, with a long tail on the left side. B. negatively skewed, with a long tail on the left side. C. positively skewed, with a long tail on the right side.
单选题If interest rates and risk factors are constant over a given period,
then a fixed income bond trading at a discount will have a:
A. positive current yield, only.
B. negative current yield and a positive capital gain yield.
C. positive current yield and a positive capital gain yield.
单选题Two companies operating in the same industry both achieved the same return on equity with the same net sales, but the two companies were different with respect to return on total assets. Compared with the company that had the higher return on total assets, the company with the lower return on total assets most likely had a higher: A. total asset turnover. B. financial leverage multiplier. C. proportion of common equity in its capital structure.
单选题An analyst does research about price multiples. For a given company, price to earnings ratios are generally more stable from period to period than: A. price to sales ratios but not price to cash flow ratios. B. price to cash flow ratios but not price to sale ratios. C. neither price to sales ratios nor price to cash flow ratios.
单选题Which of the following will result in the lowest debt-to-total-capital ratio, assuming that all issues raise the same amount of funds?
单选题Which of the following statements concerning arbitrage-free bond prices is FALSE? A. The riskier the bond, the greater is its credit spread. B. It is not possible to strip coupons from U. S. Treasuries and resell them. C. The determination of spot rates is usually done using risk-free securities.
单选题Which of the following is least likely allowed if a bond is non-refundable? A corporation: A. issues zero coupon bonds at a yield that is lower than the current rate on their bonds and redeems the old bond issue. B. calls its nonrefundable bonds and issues common equity in their place. C. gets a revolving credit line at the bank at a rate lower than that on their bonds and redeems the bonds.
单选题Consider the following two statements about put-able bonds:
Statement 1: As yields rise, the price of put-able bonds will fall more quickly than similar option-free bonds (beyond a critical point) due to the decline in value of the embedded put option.
Statement 2: As yields fall, the price of put-able bonds will rise more quickly than similar option-free bonds (beyond a critical point) due to the increase in value of the embedded put option.
Should an analyst agree or disagree with these statements?
Statement 1 Statement 2
①A. Agree Agree
②B. Disagree Disagree
③C. Agree Disagree
A. ①B. ②C. ③
单选题An analyst does research about capital asset pricing model approach and gathers the following information about a company and the market: Equity beta 1.5 Equity risk premium 15% Risk-free rate 3% Before-tax cost of company's debt 9% Using the capital asset pricing model approach, the company's cost of equity capital is closest to: A. 18.0% B. 21.0% C. 25.5%
单选题All else being equal, the ceiling on a floating-rate security is most likely to benefit the:
单选题An analyst does research about duration and gathered the following information about an option-free boncl with $10000000 face value, $9500000 market value and a duration of 3.2. If the yield on this bond immediately increased by 25 base points, the new price of this bond based solely on duration would be closest to: A. $9196000 B. $9424000 C. $9920000
单选题A technical analyst observes a head and shoulders pattern in a stock she has been following. She notes the following information:
Head price
$83.50
Shoulder Drice
$72.00
Neckline price
$65.75
Current price
$64.00
Based on this information, her estimate of the price target is closest to:
单选题The NPV profile is a graphical representation of the change in net present value relative to a change in the:
单选题Under which type of market structure are the production and pricing alternatives of a firm most affected by the decisions of its competitors?
单选题In preparing a cash flow forecast, a firm is likely to employ a
minimum acceptable cash balance:
A. of zero.
B. that includes a component for opportunities that may arise.
C. equal to the amount necessary to pay projected payables, interest, taxes,
and day-to-day expenses.
单选题According to the installment method of accounting, gross profit on an installment sale is recognized: A. on the date of sale. B. on the date the final cash collection is received. C. in proportion to the cash collection.