单选题An analyst gathered the following information about a company: Net profit margin 4% Shareholders' equity $1000000 Dividend payout ratio 33% Total assets $2500000 Net income $180000 The company's potential (sustainable) growth rate is closest to: A. 2.6%. B. 7.0%. C. 12.0%.
单选题If market participants come to believe that the expected inflation rate embedded in the current nominal risk-free rate of interest is less than will actually occur, this will have the effect of（ ）
单选题When the government reallocates spending based upon a decision to promote new and developing industries, this would be categorized as:
单选题There are four main barriers to entry. Which of the following is NOT a
barrier to entry?
A. Patents.
B. Resource Control.
C. Allocative Efficiency.
单选题What is investing cash flow?
单选题Wes Smith, CFA, has been working toward the completion of a Master of Science in Finance. He has passed all the necessary courses and written the necessary thesis. He still must defend the thesis in one month. Smith's thesis advisor assures him that he will pass the thesis defense. Smith has new business cards printed with "M.S. in Finance" after his name. This is a violation of: A. none of the Standards if Smith does not make the cards public until after he defends his thesis and receives his degree. B. Standard Ⅰ(C), Misrepresentation. C. Standard Ⅱ (B), Market Manipulation.
单选题Money managers and individual investors can indirectly participate in the commodities market through all of the following investment vehicles EXCEPT: A. trading commodities in small denominations. B. futures contracts. C. bonds indexed to some commodity price.
单选题Does the Financial Accounting Standards Board require firms to
disclose information about operating leases and detailed information about
defined benefit pension plans in the financial statement footnotes?
Operating lease information
Defined benefit pension plans
①A. Yes
No ②B.
Yes
Yes ③C. No
Yes
A. ①
B. ②
C.③
单选题James Investments is calculating an unweighted (equally-weighted) index on a four stock portfolio. Use the following information to calculate the value of the index using the geometric and arithmetic mean.
单选题The argument that term structure of interest rates is determined by expectations about future interest rates and a yield premium for interest rate risk is most closely associated with the: A. expectations hypothesis. B. liquidity preference theory. C. market segmentation theory.
单选题Patch Grove Nursery uses the LIFO inventory accounting method. Maria Huff, president, wants to determine the financial statement impact of changing to the FIFO accounting method. Select company information follows: Year-end inventory $ 22000 Year-end LIFO reserve $ 4000 Beginning of year LIFO reserve $ 3000 LIFO cost of goods sold $1800 After-tax income $ 2000 Tax rate 40% Under FIFO, the nursery's ending inventory and after-tax profit would be: FIFO ending inventory FIFO after-tax profit ①A. $18000 $1400 ②B. $18000 $ 2600 ③C. $ 26000 $ 2600
单选题The number of days a particular stock increases in a given five - day period is uniformly distributed between zero and five inclusive. In a given five -day trading week, what is the probability that the stock will increase exactly three days?
单选题There is a 30% chance that the economy will be good and a 70% chance that it will be bad. If the economy is good, your returns will be 20% and if the economy is bad, your returns will be 10%. What is your expected return?
单选题Assume thirty percent of the CFA candidates have a degree in economics. A random sample of three CFA candidates is selected. What is the probability that none of them has a degree in economics?
单选题An analyst does capital budgeting about two independent projects. Project Net Present Value Internal Rate of Return 1 $150 18% 2 $200 15% If the investor's required rate of return is 12%, which project should most likely be accepted? A. Project 1. B. Project 2. C. Projectl and Project 2.
单选题An analyst collects data relating to five commonly used measures of use of debt (leverage) and interest coverage for a randomly chosen sample of 300 firms
单选题A 2-year, zero-coupon U.S. Treasury note is least likely to have:
A. inflation risk.
B. volatility risk.
C. exchange-rate risk.
单选题A company is considering entering into a joint venture that will require an investment of $15 million. The project is expected to generate cash flows of $9 million and $8 million in each of the next two years, respectively. What is the project"s IRR?
单选题Which of the following factors is least likely to impact an individuals ability to take risk?
单选题A company is considering a $10000 project that will last 5 years. Annual after tax cash flows are expected to be $3000 Target debt/equity ratio is 0.4 Cost of equity is 12% Cost of debt is 6% Tax rate 34% What is the project's net present value (NPV) ?