单选题Selectedinformationaboutacompanyisasfollows:urrentYear(＄thousands)ProjectionforNextYear(＄thousands)Sales2,2002,500Variableoperatingcosts(%ofsales)28%30%Fixedoperatingcosts1,4001,400Taxrate25%25%Dividendspaid5560Interestbearingdebtat5%500500Theforecastednetincome(in$thousands)fornextyearisclosestto:
单选题Which of the following statements regarding liquidity risk is FALSE? A. The bid-ask spread is one measurement of liquidity risk. B. Emerging markets typically have more liquidity risk than established markets. C. Liquidity risk is not important to an investor who intends to hold a security until maturity.
单选题A company values its ending inventory using the prices of its most recent purchases
单选题A firm ended the last period with inventory of $ 4.0 million and a last in, first out (LIFO) reserve of $175000. During the year, it made purchases of $ 2. 0 million and reported sales of $ 5.5 million with a gross margin of 0.32. At the end of the year, it reported a LIFO reserve of $ 75000. What is the value of the firm' s cost of goods sold (COGS) on a first in, first out (FIFO) basis ?
单选题The forward contract price of a coupon-bearing bond is typically quoted as:
单选题Under IFRS, which of the following is most likely one of the fundamental principles underlying the preparation of financial statements?
单选题The point of tangency between the capital allocation line (CAL) and the efficient frontier of risky assets most likely identifies the:
单选题An investment management firm has been hired by SEK Corporation to work
on an initial public offering for the company. The firm's brokerage unit now has
a sell recommendation on SEK, but the head of the investment-banking department
has asked the head of the brokerage unit to change the recommendation from sell
to buy. According to the Standards, the head of the brokerage unit would be
permitted to:
A. increase the recommendation by no more than one increment (in this ease,
to a hold recommendation).
B. place the company on a restricted list and give only factual information
about the company.
C. reassign responsibility for rating the stock to the head of the
investment-banking department.
单选题The company has a target capital structure of 40 percent debt and 60 percent equity. Bonds pay 10 percent coupon (semi-annual payout ), mature in 20 years, and sell for $849.54. The company stock beta is 1.2. Risk-free rate is 10 percent, and market risk premium is 5 percent. The company is a constant growth firm that just paid a dividend of $2.00, sells for $27.00 per share, and has a growth rate of 8 percent. The company's marginal tax rate is 40 percent. The after-tax cost of debt is:
单选题The demand for money curve represents the relationship between the
quantity of money demanded and:
A. the quantity of money supplied.
B. short-term interest rates.
C. the price level.
单选题Ralph Salley, CFA, is a portfolio manager at a mutual fund company. According to the Standards of Professional Conduct relating to diligence and reasonable basis, which of the following statements is most accurate? A. CFA members may not rely solely on third-party research to make investment decisions. B. CFA members may rely on others in their firm to determine whether thirdparty research has a sound basis and continuous reliability. C. CFA members may not rely on others in their firm to determine whether third-party research has a sound basis and continuously reliability.
单选题Which of the following statements about debt securities is most likely correct? A. A collateralized mortgage obligation is a derivative of a passthrough security with a payment structure that redistributes risk among investors in various tranches. B. Insured bonds are bonds collateralized by an escrow of securities guaranteed by the U. S. government. C. Tax-backed municipal bonds are supported through revenues generated from projects that are funded in whole or in part with the proceeds of the original bond issue.
单选题Which of the following is least likely to be available on EDGAR ( Electronic Data Gathering, Analysis, and Retrieval System)?
单选题Why do bond portfolio managers use the concept of duration? A. It allows structuring a portfolio to take advantage of changes in credit quality. B. It enables direct comparisons between bond issues with different levels of risk. C. It assesses the time element of bonds in terms of both coupon and term to maturity.
单选题Which of the following most accurately describes the generational effects of fiscal policy? A. Fiscal stimulus generates economic activity greater than the amount of the stimulus due to the multiplier effect on future generations. B. Each generation of fiscal policy decisions has unintended effects that require another generation of fiscal policy actions to correct them. C. Fiscal imbalances must be corrected in the future by increasing taxes or decreasing government spending, and much of the burden will fall on future generations.
单选题An analyst does research about characteristics of market structures. Excess capacity in perfect competition is most likely: A. less than that in monopolistic competition. B. equal to that in monopolistic competition. C. greater than that in monopolistic competition.
单选题An analyst takes a sample of yearly returns of aggressive growth funds resulting in the following data set: 25, 15, 35, 45, and 55. What are the range, mean absolute deviation (MAD), and sample variance of the data set? range MAD variance ①A. 20 12 250 ②B. 25 60 1000 ③C. 40 12 250
单选题Credit risk is measured in several ways. The yield differential above the return on a benchmark security measures the:
单选题Which of the following statements best describes the treatment of inventory on the balance sheet?
单选题Which of the following statements about floating-rate bonds is FALSE? A. Holding a floating-rate bond eliminates price fluctuations. B. With a perfect, continuously resetting coupon rate, a floating-rate bond's value would always equal par. C. Prices of floating-rate bonds are less susceptible to interest rate fluctuations.