单选题Assume that a firm has an expected dividend payout ratio of 20%, a required rate of return of 9% , and an expected dividend growth of 5%. What is the firm's estimated price-to-earnings (P/E) ratio? A. 5.00. B. 10.00. C. 20.00.

单选题At the beginning of the year

单选题The increase in inventory required due to a new capital budgeting project implementation would be classified as a: A. cost (negative cash flow) at time zero. B. benefit (positive cash flow) at time zero. C. cost (negative cash flow) in each year the firm needs the increased inventory.

单选题The most likely effects of the imposition of an effective increase in the minimum wage include: A. an increase in the real wage, gains in efficiency, and a decrease in inflation. B. increased unemployment, and excess supply of labor at the new wage rate, and a decrease in economic efficiency. C. a reduction in non-monetary labor benefits, excess demand for labor, and a shortage of highly skilled workers.

单选题A security market with price continuity is most accurately characterized as a market which:

单选题The financial statement that would be most useful to an analyst in understanding the changes that have occurred in a companys retained earnings over a year is the statement of:

单选题Both Portfolio X and Portfolio Y are well-diversified. The risk-free rate is 8 percent, and the return for the marker is 16 percent, that is: Portfolio Expected Return Beta X 16% 1.00 Y 12% 0.25 In this situation, which of the following Correlation of Returns about Portfolio X and Portfolio Y is true? Portfolio X Portfolio Y ①A. overvalued properly valued ②B. properly valued undervalued ③C. undervalued properly valued A. ①B. ②C. ③

单选题A bond with a 8.5% yield has a duration of 3.7 and is trading at $143. If the yield decreases to 8.2%, the new bond price is closest to: A. $128.9. B. $144.6. C. $153.8.

单选题Which of the following statements with respect to Giffen and Veblen goods is least accurate?

单选题Which of the following conclusions about the semi-strong form of the efficient market hypothesis (EMH) and the strong-form EMH is FALSE?? A. If the strong form of market efficiency were true, there would be no need for insider trading laws. B. Neglected firms (i. e. those firms with a small number of analysts following them) tend to underperform the market. C. Professional money managers, as a group, have not been able to produce returns that consistently exceed the market.

单选题An analyst does research about Bayes' formula and estimates the following information regarding bonus for management and the net income of a company: Event Probability Net income increases given management received a bonus 0.7 Net income mcreases given management did not receive a bonus 0.3 The analyst's prior probability that management received a bonus is 0.5. Using Bayes' formula, if the company announces an increase in net income, the probability management received a bonus is closest to: A. 0.22 B. 0.78 C. 0.86

单选题The belief that trends and patterns tend to repeat themselves and are, therefore, somewhat predictable best describes:

单选题Which of the following statements regarding capital budgeting is correct? A firm's optimal capital budget can be found by moving along its investment opportunity schedule until: A. it exhausts its capital budget. B. the marginal revenue product is equal to marginal cost. C. the next project's return no longer covers the marginal cost of capital.

单选题A market has the following characteristics: a large number of independent sellers each producing a differentiated product, low barriers to entry, producers face downward sloping demand curves, and demand is highly elastic. This description most closely describes:

单选题An analyst gathered the following information about a company: ●Taxable income is $63000. ●Pretax income is $72000. ●Current tax rate is 40%. ●Tax rate when the reversal occurs will be 30%. What is the company"s deferred tax liability at the end of year 1?

单选题Mueller is explaining how to derive the theoretical Treasury spot rate curve from the prices of Treasury coupon bonds. She states the following: Statement 1: To calculate a theoretical Treasury spot rate curve from the yields on coupon bonds, we must know at least two actual Treasury spot rates. Statement 2: To compute the theoretical 3-year Treasury spot rate, first determine the spot rates for each of the bond' s coupon periods from 0.5 to 2.5 years. Discount each coupon payment to its present value using the theoretical spot rate for each period. The theoretical 3-year spot rate is the discount rate on the final coupon and principal payment that sets the sum of the present values of all the bond's cash flows equal to its price. Are Mueller's two statements correct? Statement 1 Statement 2 ①A. Incorrect Correct ②B. Correct Correct ③C. Correct Incorrect A．① B．② C．③

单选题An investor purchases an office building for $2500000. He puts 10 percent down and finances the remainder at a 9 percent rate of interest. Calculate the first year's after-tax cash flow for the investment using the following information

单选题Which of the following statements regarding index funds is least accurate? A. One disadvantage of index funds is that they do not provide access to international securities. B. One advantage of index funds is that they allow for diversification that is typically not available to the average individual investor due to a lack of resources. C. One might conclude from the efficient market literature that an investor should mimic the market's performance and minimize costs by buying index funds.

单选题An analyst does research about depreciation. Which of the following least likely increases the expected total depreciation expense over the life of a long-term asset? A. Increasing the useful life of the asset. B. Increasing the residual value of the asset. C. Using an accelerated depreciation method.

单选题An analyst does research about asset-backed securities. Which of the following statements is most accurate? A corporation that raises funds through use of an asset-backed security: A. creates a special purpose vehicle that is a subsidiary of the corporation. B. no longer owns the assets that serve as collateral for the asset-backed security. C. uses credit enhancement in the reduction in funding cost compared with the cost of enhancement.