单选题Which of the following choices best describes the role of taxes on the after-tax cost of capital in the U. S. from the different capital sources? Common equity Preferred equity Debt ①A. No effect Decrease Decrease ②B. Decrease Decrease No effect ③C. No effect No effect Decrease
单选题Given: $1000 investment, compounded monthly at 12% find the future
value after one year.
A. $1120.00.
B.$1121.35.
C. $1126.83.
单选题You are given the following discrete uniform probability distribution of gross profits from purchase of an option:
Profit
Cumulative Distribution Function
$0
0
单选题Which of the following is least likely a problem associated with the internal rate of return (IRR) method of choosing investment projects? A. Using IRR to rank mutually exclusive projects assumes reinvestment of cash flows at the IRR. B. For independent projects, the IRR and NPV can lead to different investment decisions. C. For mutually exclusive projects, the IRR and NPV methods may result in different investment decisions.
单选题Four non-convertible bonds have the indicated yield spreads to Treasury securities:
{{I}}Maturity{{/I}}
{{I}}Nominal{{/I}}
{{I}}spread{{/I}}
{{I}}Zero-volatility{{/I}}
{{I}}spread{{/I}}
{{I}}Option-adjuste{{/I}}
{{I}}spread{{/I}}
Bond W
2 years
156 bp
155 bp
130 bp
Bond X
3 years
173 bp
174 bp
199 bp
Bond y
5 years
188 bp
189 bp
164 bp
Bond Z
10 years
202 bp
201 bp
226 bp Based on these spreads, it is most likely that: A. Bond X is callable and Bond Y is putable. B. Bond W is callable and Bond Z is putable. C. Bond Z is callable and the spot yield curve is inverted.
单选题Mark Williamson is "bearish" on ABC Manufacturing Company. Williamson is so convinced that ABC is overpriced, two weeks ago, he shorted 100000 shares. Today, Williamson is "surfing" several popular investment bulletin boards on the internet and posting false derogatory comments about company management. According to Standard Ⅱ (B), Market Manipulation, Williamson has engaged in: A. transaction-based manipulation, but not information-based manipulation. B. both transaction-based manipulation and information-based manipulation. C. information-based manipulation, but not transaction-based manipulation.
单选题At the beginning of the year, a company issues a $1000 face value, semiannual coupon, bond with an 8 percent coupon rate maturing in 10 years. The annual market rate of interest at issuance was 12 percent. The initial liability recorded for this bond is closest to:
单选题What's the effective rate of return on an investment that generates a
return of 12 percent, compounded quarterly?
A. 14.34%.
B. 12.00%.
C. 12.55%.
单选题Which of the following statements is TRUE? Income tax expense: A. includes taxes payable and deferred income tax expense. B. and income tax paid are similar. C. is the reported net of deferred tax assets and liabilities.
单选题A put with a strike price of $75 sells for $10. Which of the following statements is FALSE? The greatest :
单选题TheuseoftheF-distributedteststatistic,,tocomparethevariancesoftwopopulationsrequiresallofthefollowingEXCEPT:A.twosamplesareofthesamesize.B.samplesareindependentofoneanother.C.populationsarenormallydistributed.
单选题A firm has $3 million in outstanding 10-year bonds, with a fixed rate
of 8 percent ( assume annual payments). The bonds trade at a price of $92 per
$100 par in the open market. The firm's marginal tax rate is 35 percent. What is
the after-tax component cost of debt to be used in the weighted average cost of
capital (WACC) calculations?
A. 9.89%.
B. 6.02%.
C. 9.26%.
单选题The following shows the mean monthly returns of four securities.
单选题A long interest rate call and a short interest rate put is an equivalent position to: A. a short position in a forward rate agreement. B. a pay-fixed interest rate swap. C. a long position in a forward rate agreement.
单选题A municipal bond carries a coupon of 6% and is traded at par. To a taxpayer in the 340/0 tax bracket, this bond provides an equivalent taxable yield of:
单选题As the quantity of labor increases, which of the following is the most likely outcome with respect to the marginal revenue (MRP) of labor?
单选题Technological changes are most likely to result in which of the following effects? Evolving technology is likely to result in changes in: A. educational curriculum only. B. educational curriculum and the relative demand for various products. C. the relative demand for various products only.
单选题If an institutional investor wants to borrow money for 30 clays to finance a bond purchase, which of these is most likely to be the lowest loan rate available?
单选题Which of the following statements best describes the concept of
negative convexity in bond prices? As interest rates:
A. fall, the bond's price increases at an increasing rate.
B. rise, the bond's price approaches a minimum value.
C. fall, the bond's price increases at a decreasing rate.
单选题WhichofthefollowingisNOTarecommendationprocedurewithoutapplyingGlobalInvestmentsPerformanceStandards()forcompliancewiththeStandardsofProfessionalConductrelatingtoperformancepresentation?A.Provideperformanceinformationinaconsistentandstandardformatforallaudiences.B.Clearlyindicatewhentheperformancerecordisthatofapriorentity.C.Includeterminatedaccountsaspartofperformancehistorywithaclearindicationofthetimewhentheaccountswereterminated.