单选题Bill Yates, CFA, is evaluating NanoSoft, Inc. , a high tech company with impressive sales growth but no earnings. Yates" supervisor, a firm believer in relative valuation, instructs him to use the price-to-sales multiple to determine the value of NanoSoft. In an e-mail to his supervisor, Yates weighs the pros and cons of the price-to-sales multiple. All of his statements about price-to-sales ratios are correct EXCEPT:
单选题Three years ago, Ranchero Corporation purchased a patent for a process used in production, for 3 million. At the end of last year, Ranchero determined the fair value of the patent was greater than its book value. No impairment losses have been recognized on the patent. Assuming Ranchero follows International Financial Reporting Standards, what is the impact on its total asset turnover ratio and return on equity of reporting the value of the patent on the balance sheet at fair value? Total asset turnover Return on equity ① Lower Higher ② Higher Lower ③ Lower Lower
单选题Calculate the change in cash from the following items: Decrease in inventory $ 10 million Net income $ 60 million Repayment of long-term debt $ 20 million Increase in accounts receivable $15 million Purchase of new machinery $ 75 million Depreciation expense $15 million Sale of common stock $ 40 million Dividend expense $10 million ①A. + $ 30 million. ②B. $ 30 million. ③C. + $ 5 million.
单选题When additional or excess reserves are injected into the U
单选题Which of the following statements about technical analysts is CORRECT?（ ）
单选题Members of the exchange who act as brokers but do not work for a specific brokerage firm are referred to as:
单选题For which the following four-firm concentration ratios and
Herfindahl-Hirschman indexes (HHI) indicates a highly competitive
market? Four-Firm
Ratio HHI ①A. 5%
150 ②B. 98%
9500 ③C.
98% 150
A. ①
B. ②
C. ③
单选题The demand for a product tends to be price inelastic if: A. few good complements for the product are available. B. few good substitutes for the product are available. C. people spend a large share of their income on the product.
单选题An analyst does research about liquidity. Which of the following statements about liquidity is least accurate? A. A decrease in a dealer's bid-ask spread decreases in liquidity. B. On-the-run U. S. Treasury securities provide more liquidity than off-therun U. S. Treasury securities. C. Standard practice for pricing liquid bond is a pricing service of dealer price quotas.
单选题Which of the following most accurately describes the condition that
typically exists when marginal product is at a maximum?
A. Marginal cost is at a minimum.
B. Average product is at a minimum.
C. Average variable cost is increasing.
单选题An analyst does research about execution instructions. A trader who places a buy order at the best bid most likely: A. makes the market. B. is inside the market. C. takes the market.
单选题An investor bought a 15 call for $14 on a stock trading at $20. If the stock is trading at $24 at option expiration, what is the profit and the value of the call at option expiration? Profit Value of the Call ①A. - $5 $5 ②B. $4 - $5 ③C. - $5 $9
单选题Firms that prepare their financial statements according to International Financial Reporting Standards (IFRS) are least likely to（ ）
单选题Assume that a population has a mean of 25 with a standard deviation of 3. If a random sample of 60 observations is drawn from this population, the standard error of the sample mean is closest to:
单选题Which of the following is least likely a part of the execution step of the portfolio management process?
单选题Which of the following is a limitation of the cash flow yield measure? The cash flow yield measure: A. uses a 360-day year. B. assumes that the projected cash flows are reinvested at the cash flow yield. C. assumes a flat yield curve.
单选题Earlier this year, Ponca Corporation purchased non-dividend paying equity securities which it classified as trading securities. Information related to the securities is as follows:
Security
Cost
Fair value at year - end
X
$ 400000
$435000
Y
$ 550000
$ 545000 What amounts should Ponca report in its year-end income statement and balance sheet as a result of its investment in securities X and Y? Income Statement Balance Sheet A. $ 30000 unrealized gain $ 950000 B. No gain or loss $ 980000 C. $ 30000 unrealized gain $ 980000
单选题The Mountain Bike Supply Company had 500 units in its beginning inventory. Each of these units cost $ 5. During the period, Mountain Bike Supply first purchased 400 units at $ 6 each and then 200 units at $ 7 each. At the end of the period, Mountain Bike Supply had 600 units. What is the cost of goods sold and inventory for Mountain Bike Supply if it uses FIFO inventory valuation ? COGS Inventory ①A. $ 2500 $ 3100 ②B. $ 3200 $ 3800 ③C. $ 2500 $ 3800
单选题Assume a firm uses a constant WACC to select investment projects rather than adjusting the projects for risk. If so, the firm will tend to: A. reject profitable, low-risk projects and reject unprofitable, high-risk projects. B. accept profitable, low-risk projects and reject unprofitable, high-risk projects. C. reject profitable, low-risk projects and accept unprofitable, high-risk projects.
单选题An equity analyst needs to select a representative sample of
manufacturing stocks. Starting with the population of all publicly traded
manufacturing stocks, she classifies each stock into one of the 20 industry
groups that form the Index of" Industrial Production for the manufacturing
industry. She then selects a number of stocks from each industry based on its
weight in the index. The sampling method the analyst is using is best
characterized as:
A. data mining.
B. nonrandom sampling.
C. stratified random sampling.