单选题Xanos Corporation faced a 50% marginal tax rate last year and showed the following financial and tax reporting information: Deferred tax asset of $1000. Deferred tax liability of $ 5000. Based only on this information and the news that the tax rate will decline to 40%, Xanos Corporation' s : A. deferred tax asset will be reduced by $ 400 and deferred tax liability will be reduced by $ 2000. B. deferred tax liability will be reduced by $1000 and income tax expense will be reduced by $ 800. C. deferred tax asset will be reduced by $ 200 and the income tax expense will be reduced by $1000.
单选题An index provider has created a new investable index that tracks the hedge fund industry
单选题Which of the following statements about risk is FALSE? Generally, greater: A. spending needs allows for greater risk. B. existing wealth allows for greater risk. C. current cash reserves allows for greater risk.
单选题Which of the following characteristics would create the least difficulty in estimating a bond's cash flows?
单选题Deciding how to allocate investment funds, first among countries, and then within countries to various asset classes, is the objective of which step of the top-down valuation approach? A. Analysis of industry influences. B. Company analysis. C. Analysis of general economic influences.
单选题A local loan shark offers 4 for 5 on payday. What it involves is that you borrow $ 4 from him and repay $ 5 on the next payday (one week later). What would the stated annual interest rate be on this loan, with weekly compunding? What is the effective annual interest rate on this loan? Assume 52 weeks in one year, and select the answer closest to your numbers. Stated Interest Rate Effective Interest Rate ①A. 25% 300% ②B. 25% 1300% ③C. 1300% 10947544%
单选题With respect to behavioral finance, the tendency to place too much
faith in an earnings forecast is known as:
A. confirmation bias.
B. overconfidence bias.
C. escalation bias.
单选题An investor in a high tax bracket would typically: A. invests in income producing securities. B. prefers capital gains to income. C. has a lower tolerance for risk.
单选题A two-year spot rate of 5% is most likely the:
单选题A CFA charterholder is asked to review her firm's soft dollar practices. As part of the review, she notes that her firm has failed to disclose the practices to the firm's clients in writing as required by law. She does not report the firm's violation to the appropriate regulatory authority, has the charterholder violated any CFA Institute Standards of Professional Conduct? A. No. B. Yes, because she failed to act in the best interest of her employer. C. Yes, because she is required to report legal violations to the appropriate authority.
单选题An investor is long an in-the-money American call option on a dividend paying stock
单选题What would an investor be willing to pay for a share of preferred stock
that paid an annual $5 dividend if the yield on preferred was 40 basis point
below the A bond yield of 7%?
A. $36.8
B. $57.4
C. $65.8
单选题A local high school basketball team had 18 home games this season and averaged 58 points per game. If we assume that the number of points made in home games is normally distributed, which of the following is most likely the range of points for a confidence interval of 90 percent?
单选题For firms that expense rather than capitalize costs, which of the
following statements is least correct?
A. Higher debt/equity and debt/assets will occur because of lower asset and
equity levels.
B. Net cash flows are the same regardless of which method is used.
C. Lower ROA and ROE will occur because of higher asset and equity levels in
the early years.
单选题Which of the following is included in the M2 measure of the money supply?
单选题Assume the following capital lease: Present value (PV) of lease payments at 10 percent is $ 25000. The leased asset is depreciated straight line over 5 years. The lease payment is $ 6000. The first payment of $ 6000 is to be paid at the end of the year. On a before tax basis, the income reported under capital lease compared with that reported under an operating lease for the first year will be:
单选题All of the following variables affect the price-to-cash flow ratio EXCEPT: A. dividend rate. B. depreciation rate. C. growth rate.
单选题According to the Financial Accounting Standards Board, what is the appropriate balance sheet treatment for available-for-sale securities and where are the unrealized gains and losses reported? Balance sheet Unrealized gains and losses ①A. Fair value Net income ②B. Fair value Other comprehensive income ③C. Amortized cost Other comprehensive income
单选题A company is considering entering into a joint venture that will require an investment of $30 million. The project is expected to generate cash flows of $7 million, $14 million, and $15 million in each of the next three years, respectively. Assuming a discount rate of 7%, what is the project"s NPV?
单选题Dot-com companies are often valued by applying the ______ ratio.