单选题An investment strategy that seeks to grow portfolio value over time through capital gains and reinvestment of current income is most likely appropriate if the investment objective is:

单选题Craig Loomis, a credit analyst with Shawnee Financial Group, has been asked to assess the operational efficiency of Leuexa Company. Loomis calculates the following ratios from data gathered from Lenexa" s annual report: Total debt $14500000 Revenues $ 35200000 Earnings before interest and taxes $ 6125000 Depreciation and amortization $ 1675000 Interest expense $ 2200000 According to the financial footnotes, Lenexa is a lessee in an operating lease arrangement for manufacturing equipment. The discounted present value of the lease payments is $ 6000000 using an interest rate of 10 percent. The annual payment is $1000000. Only considering the above data, determine which ratio best measures operational efficiency and calculate the adjusted measure for the appropriate analytical treatment of the lease. Operational efficiency Adjusted measure ①A. EBITDA margin 25.0% ②B. EBITDA margin 17.4% ③C. EBITDA/Interest expense 4.0 times

单选题Francesca Ndenda, CFA, and Grace Rutabingwa work in the same department for New Age Managers, with Rutabingwa reporting to Ndenda

单选题An analyst does research about valuation of bond. An option-free 6 percent coupon bond has an annual discount rate of 5 percent, pays interest semiannually, matures in five years, and is valued at $1043.76. One year later, the annual discount rate for that bond is 4.5 percent and the bond is valued at $1054.35. The change in value for this bond that is attributable only to the change of discount rate is closest to: A. -$7.91 B. $7.91 C. $18.5

单选题Is the following statement an accurate description of the account format and report format of presenting a balance sheet? "The account format presents the asset, liability, and equity accounts in a single column while a report format presents the assets, liabilities, and equity in multiple columns." Account format Report format ①A. No Yes ②B. Yes No ③C. No No A．① B．② C．③

单选题Which of the following is least likely an aggregation vehicle for real estate ownership?

单选题Which of the following statements does NOT describe a characteristic of an illiquid asset or market ?

单选题Which of the following municipal bonds typically has the greater risk and is issued with higher yields?

单选题The Gordon growth model is most appropriate for valuing the common stock of a dividend paying company that is:

单选题Assume a discrete distribution for the number of possible sunny days in Provo, Utah during the week of April 20 through April 26. For this discrete distribution, p(x)=0 when x cannot occur, or p(x)＞0 if it can. Based on this information, what is the probability of it being surely on 5 days and on 10 days during the week? 5 Days of Sunshine 10 Days of Sunshine ①A. A positive value Infinite ②B. Zero Infinite ③C. A positive value Zero

单选题An analyst is forecasting a company's financial performance for the next year and prepares the following pro forma financial statements. Actual Estimated {{U}}20X1{{/U}} {{U}}20X2{{/U}} Sales 1000000 1010000 Cost of goods sold 600000 606000 SG&A expenses 300000 303000 Interest expense 72000 72000 Earnigs before tax 20000 29000 Income tax 7000 7250 Net income 21000 21750 Dividends 8400 8700 Retained earnings 12600 13050 Pro Forma Balance Sheet Actual Estimated {{U}}20X1{{/U}} {{U}}20X2{{/U}} Current assets 600000 606000 PP&E,net 1300000 1313000 Total assets 1900000 1919000 Current liabilities 200000 202000 Long-term debt 900000 900000 Common stock 300000 300000 Retained earnings 500000 513050 Total liabilities and equity 1900000 1915050 The analyst is most likely to reconcile these pro forma financial statements by assuming the company: A. pays out the financial surplus as additional dividends. B. uses the financial surplus to pay down long-term debt. C. resolves the financial deficit by issuing long-term debt.

单选题Which of the following actions was least likely a warning sign of potential earnings manipulation disclosed in Sunbeam" s financial statement footnotes?

单选题Natural monopolies exist because they can produce at lower costs with greater output, which means there are economies of scale. Which of the following industries is typically a natural monopoly? A. Technology. B. Utilities. C. Oil.

单选题Deep discount bonds have: A. less call protection than bonds selling at par. B. greater reinvestment risk than bonds selling at par. C. greater price volatility than bonds selling at par.

单选题Reynaldo and Apple are training a new analyst, Norah Spears. They ask Spears what she knows about duration and convexity. Spears replies with four statements: Statement 1: Modified duration is a better measure than effective duration for bonds with embedded options. Statement 2: The convexity adjustment corrects for the error embedded in the duration. Statement 3: Modified duration ignores the negative convexity of a callable bond. Statement 4: Convexity of option-free bonds is always added to duration to modify the errors in calculating price volatility. Which of the following regarding Spears' statements is TRUE? A. Spears is correct with respect to all four statements. B. Spears is correct with respect to Statement 2, but incorrect with respect to Statement 4. C. Spears is correct with respect to Statement 3, but incorrect with respect to Statement 1.

单选题For an investor borrowing money at the risk-free interest rate to invest in the market portfolio, the estimated rate of return of his portfolio is most likely to:

单选题An analyst does research about commodity markets. Which of the following statements about investing in commodities is least accurate? A. Investing in commodity futures is the most common strategy for commodity investing. B. A collateralized futures position consists entirely of long position in futures for a given amount of underlying value. C. Commodities tend to have a low to negative correlation with stock and bond retums and a desired positive correlation with inflation.

单选题Which of the following statements about bond and stock market indexes is FALSE? A. Bond market indexes have been in existence virtually as long as the major stock indexes such as the Dow Jones Industrial Average (DJIA). B. A small number of very large firms can dominate a value-weighted index. C. When a company splits its stock, it loses weight in a price-weighted index.

单选题A free-rider problem, an obstacle to efficiency, is most likely associated with: A. monopolies. B. public goods. C. subsides and quotas.

单选题The short-run supply curve to a firm operating under perfect competition is most accurately described as the segment of the: A. marginal cost curve below the average total cost curve. B. average total cost curve above the marginal cost curve. C. marginal cost curve above the average variable cost curve.