单选题The first component of the Code of Ethics does NOT explicitly say that
a CFA Institute member will act in a certain manner with respect to which of the
following groups?
A. The public.
B. The member's employer.
C. The SEＣ.
单选题Which of the following is least likely to be considered a reason why
regulation of monopolies is not effective?
A. Regulators do not know the firm's cost structure.
B. Regulation shifts industry demand and increases prices.
C. Regulation reduces the incentive for firms to reduce costs.
单选题A lessee has a 15-year capital lease requiring equal annual payments. The reduction of the total lease liability in year 6 is equal to: A. 1/15 of the original lease liability. B. the reduction of the long-term lease liability in year 6. C. the current liability shown for the lease at the end of year 5.
单选题An analyst does research about market structures. In a perfectively competition industry, the long-run effect of a permanent increase in demand most likely results in an increase in: A. price. B. output per firm. C. the number of firms.
单选题Which of the following statements about risk is least likely correct? A. The security market line plots expected return against systematic risk. B. The capital market line plots expected return against total risk. C. The efficient frontier plots expected return against unsystematic risk.
单选题The infinite period dividend discount model (DDM) implies that a
stock's value will be greater:
A. the larger its expected dividend.
B. the lower the expected growth rate.
C. the higher the required rate of return.
单选题On 1 January, Hellen's portfolio is valued at $1000000. Hellen want to make a $100000 payment to buy a house on 31 December of the same year, but does not want the year-end portfolio value to fall below $1000000. The expected annual return on the investor's existing portfolio is 15 percent with an expected standards deviation of 20 percent. The risk-free rate is 8%. The safety-first ratio for the portfolio is closest to:
单选题Yield to call is a less conservative yield measure than the yield to maturity whenever the price of a callable bond is quoted at a value: A. equal to par value less one year's interest. B. equal to par value. C. more than par.
单选题To convert an indirect statement of cash flows to a direct basis, the
analyst would:
A. subtract write-offs of inventory advances from the cost of goods
sold.
B. add increases in accounts receivables to net sales.
C. subtract decreases in accounts payable from the cost of goods
sold.
单选题Which of the following statements about a classified balance sheet is least likely accurate? A classified balance sheet: A. presents the net equity of each asset by subtracting its related liability. B. distinguishes between current and noncurrent assets. C. distinguishes between current and noncurrent liabilities.
单选题A firm is planning a $25 million expansion project. The project will be financed with $10 million in debt and $15 million in equity stock (equal to the company's current capital structure). The before-tax required return on debt is 10 percent and 15 percent for equity. If the company is in the 35 percent tax bracket, what cost of capital should the firm use to determine the project's net present value (NPV)?
单选题An analyst has gathered the following information about a company:
CanadianDollars (millions)
Cash flow from operating activities (CFO)
$105
单选题Bond A has a yield of 8.75 percent. Bond B, the reference bond, has a
yield of 7.45 percent. The risk-free rate of return is 3.50 percent. Assuming
both bonds have the same maturity, the relative yield spread is closest to:
A. 1.30.
B. 0.17.
C. 1.17.
单选题A company uses LIFO and had a 2006 LIFO reserve of $ 90000 and a 2005 LIFO reserve of $ 85000. The company' s marginal tax rate is 28% and cost of goods sold is $100000 for 2006. The change in 2006 net income if FIFO inventory costing had been used is:
单选题Jodi Lein, small business consultant, is currently working with RJ Landscaping, a sole proprietorship. She is trying to educate the owner on the importance of monitoring cash flows. Operating information as of the end of the most recent month appears below: Cash from sale of truck of $ 7000. Cash salaries paid of $17000. Cash from customers of $ 45000. Depreciation expense of $ 5500. Interest on bank line of credit of $1000. Cash paid to suppliers of $ 22000. Other cash expenses, including rent, of $ 6300. No taxes due. Using this information, Lein calculates the cash flow from operations for the month at:
单选题An analyst does research about sampling and estimation. With respect to statistical analysis, a sample statistics is least described as: A. the set of rules used to select a sample. B. quantity computed from a sample. C. descriptive measure of a sample.
单选题Which of these is the best example of an embedded option granted to bondholders?
单选题If all else holds constant in periods of rising prices and inventory levels: A. FIFO firms have higher debt to equity ratios than LIFO firms do. B. FIFO firms will have greater stockholder's equity than LIFO finns do. C. LIFO firms have higher gross profit margins than FIFO firms do.
单选题Use the following data for a company leasing a machine with a capital lease: The lease period is ten years. The lease payments are $ 2980.59 at the end of each year. The firm will own the asset at the end of the lease term but the salvage value will be negligible. 8.5 % is the firm' s incremental borrowing rate. 8% is the implicit lease rate. If the company uses straight-line depreciation, the first year' s reported lease expense is:
单选题Venture capital investments used to provide capital for companies initiating commercial manufacturing and sales are most likely to be considered a forma of（ ）