单选题A firm in a perfectly competitive environment has its total costs equal to total revenue and marginal costs greater than marginal revenue
单选题During 2004 Nancy Arnold received an undergraduate business degree with a management major and completed all requirements for the CFA designation imposed by CFA Institute. She is applying for employment at several brokerage firms. Her resume states, "I was awarded the CFA degree in 2004 by CFA Institute." Her resume also states that she graduated "with honors" and majored in finance. Her grade point average was 3.48 but "with honors" requires a 3.50 grade point average. Which of the following statements about Standard Ⅶ (B), Reference to CFA Institute, the CFA Designation, and the CFA Program, and Standard Ⅰ(C) , Misrepresentation, is TRUE? Arnold: A. did not violate either Standard Ⅶ (B) or Standard Ⅰ (C). B. violated Standard Ⅰ(C) but she did not violate Standard Ⅶ (B). C. violated both Standard Ⅶ (B) and Standard Ⅰ (C).
单选题An analyst does research about financing liabilities. A company with no prior debt outstanding has issued a fixed-coupon bond with a coupon rate more than the market rate at issuance. The coupon payment is: A. less than the interest expense reported on the issuer's income statement. B. equal to the interest expense reported on the issuer's income statement. C. greater than the interest expense reported on the issuer's income statement.
单选题A recent report on the Consumer Price Index (CPI) presented the
following data for the basket of goods in the apparel category:
Item
Quantity
Price in base period
Price in current period
Men's and boys' apparel
24
$15.60
$16.40
Women's and gifts' apparel
43
$13.90
$14.60
Infants' and toddlers' apparel
5
$19.40
$17.60
Footwear
20
$12.40
$12.80 Based on
the data in the table above, the CPI for apparel prices in the current period is
closest to:
A. 103.7.
B. 48.3.
C. 1365.4.
单选题Benjamin Zoeller and Tara McGonigal are preparing for the Level I CFA examination. Zoeller is studying credit spread risk. McGonigal is farther along in her studies, but has forgotten how to determine the default free rate if given the yield on a bond rated BBB + of 9.50 percent and a risk premium of 3.00 percent. What does Zoeller tell her to use for the default free rate?
单选题A natural monopoly is most likely to exist when:
单选题Which of the following statements about embedded options is least likely correct? A. The call option on a bond cannot trade separately from the bond. B. If the market value of a putable bond falls below the par value, the issuer will likely exercise the option. C. The prepayment right granted with a mortgage favors the issuer/borrower.
单选题Day and Associates is experiencing a period of abnormal growth. The last dividend paid by Day was $0.75. Next year, they anticipate growth in dividends and earnings of 25 percent followed by negative 5 percent growth in the second year. The company will level off to a normal growth rate of 8 percent in year three and is expected to maintain an 8 percent growth rate for the foreseeable future. Investors require a 12 percent rate of return on Day. What is the approximate amount that an investor would be willing to pay today for the two years of abnormal dividends? A. $1.55. B. $1.83. C. $1.62.
单选题Are the statements about the following valuation metrics true or false? Statement 1: As compared to the price-to-earnings ratio, the price-to-cash flow ratio is easier to manipulate because management can easily control the timing of the cash flows. Statement 2: One of the benefits of earnings per share as a valuation metric is that it facilitates the comparison of firms of different sizes. Statement 1 Statement 2 ①A. False True ②B. True False ③C. False False
单选题Galaxy Corporation manufactures custom motorcycles. Galaxy finances the motorcycles over 36 months for customers who make a minimum down payment of 10 percent. Historically, Galaxy has experienced bad debt losses equal to 1 percent of sales. Galaxy also provides a 24 month unlimited warranty on all new motorcycles. In the past, warranty expense has averaged 3 percent of sales. Ignoring taxes, how does the recognition of bad debt expense and warranty expense at the time of sale affect Galaxy's liabilities? Bad debt expense Warranty expense ①A. No effect No effect ②B. Increase Increase ③C. No effect Increase
单选题Capital budgeting process is the process of identifying and evaluating capital budgeting with four administrative steps. The most important step in the capital budgeting process is: A. forecasting cash flows. B. generating good investment ideas. C. analyzing individual proposals.
单选题With respect to the security market line, if two risky assets have the same covariance with the market portfolio but have different estimated rates of return, the most accurate conclusion is that the two risky assets have:
单选题In 2000, Able Builders, Inc. was awarded a contract to build a bridge for the City of Metropolis. A reliable estimate of the total cost of the contract was $ 60000000. The contract price was $ 80000000. All invoices were paid in cash in the year the invoice was submitted. A schedule of revenues received and costs incurred during the contract was as follows (in $ millions):
单选题The primary motivation for creating a collateralized mortgage obligation (CMO) is best described as the desire to redistribute which risk of investment in residential mortgages?
单选题An investor is considering purchasing ACQ. There is a 30 percent probability that ACQ will be acquired in the next two months. If ACQ is acquired, there is a 40 percent probability of earning a 30 percent return on the investment and a 60 percent probability of earning 25 percent. If ACQ is not acquired, the expected return is 12 percent. What is the expected return on this investment?
单选题Which of the following features applies to a swap?
单选题Under perfect competition, the short-run market supply curve is most accurately described by which of the following statements? The market short-run supply curve is the: A. average of the quantities at each price along the marginal cost curve for all firms in a given industry. B. sum of the quantities at each price along the average total cost curve for all firms in a given industry. C. sum of the quantities at each price along the marginal cost curves for all firms in a given industry.
单选题Evelyn Mastakis, CFA, is a quantitative analyst in a local securities firm and does research about the difference between ordinary annuity and annuitydue. If both have the same number of payments, payment amount, and frequency of payments and are discounted at the same positive rate, the present value of the ordinary annuity is: A. greater than the present value of the annuity due. B. less than the present value of the annuity due. C. equal to the present value of the annuity due.
单选题Which of the following statements about risk and return is FALSE? A. Return objectives may be stated in absolute terms or percentages. B. Specifying investment objectives only in terms of return may expose an investor to inappropriately high levels of risk. C. Risk and return may be considered on a mutually exclusive basis.
单选题An analyst gathers the following information: Net income $100 Decrease in accounts receivable 30 Depreciation 25 Increase in inventory 17 Increase in accounts payable 10 Decrease in wages payable 5 Increase in deferred taxes 17 Sale of fixed assets 150 Purchase of fixed assets 340 Profit from the sale of fixed assets 5 Dividends paid out 35 Sale of new common stock 120 Based on the above information, the company's cash flow from operations is: