单选题Costs incurred to develop software for sale to others are expensed as incurred until the product's technological feasibility has established, after which costs are capitalized under: A. IFRS only. B. U. S. GAAP only. C. both IFRS and U. S. GAAP.
单选题Which of the following least likely reflects the two primary principles of the CFA Institute Rules of Procedure for Proceedings Related to Professional Conduct?
单选题Consider a floating rate issue that has a coupon rate that is reset on January 1 of each year. The coupon rate is defined as one-year London Inter-bank Offered Rate (LIBOR) + 125 basis points and the coupons are paid semi-annually. If the one-year LIBOR is 6.5 percent on January 1, which of the following is the semi-annual coupon payment received by the holder of the issue in that year?
单选题The Ewing Corporation has leased equipment for 10 years. Annual payments of $100000 are required at the end of each year. This lease is classified as a capital lease. K the appropriate discount rate is 5 percent, what is the amount recorded as interest expense for the second year?
单选题Assume a firm with a debt to equity ratio of 0.50 and debt equal to $ 35 million makes a commitment to acquire raw materials with a present value of $12 million over the next 3 years. For purposes of analysis the best estimate of the debt to equity ratio should be :
单选题If the price of a candy bar increases from $ 0.50 to $ 0.55 and the quantity demanded decreases from 267 to 235, the price elasticity of demand is:
单选题According to the liquidity preference theory, which of the following statements is least accurate?
单选题DWR Services, Ltd. , arranges a plain vanilla interest rate swap between RWDY Enterprises ( pays fixed) and RED, InC. ( receives fixed). The swap has a notional value of $25000000 and 270 days between payments. LIBOR is currently at 7.0%. If at the time of the next payment (due in exactly 270 days) , RWDY receives net payments of $93750, the swap fixed rate is closest to:
单选题An analyst does research about various companies and stocks. A company has experienced stable earnings over the previous years and the company has a high beta. These factors best describe a: A. cyclical company and a defensive stock. B. defensive company and a cyclical stock. C. defensive company and a defensive stock.
单选题Analysts are likely to consider a company"s credit quality to be improving if the company reduces its:
单选题Consider a $10000000 1-year quarterly-pay swap with a fixed rate of 4.5 percent and a floating rate of 90-day London Interbank Offered Rate (LIBOR) plus 150 basis points. 90-day LIBOR is currently 3 percent and the current forward rates for the next four quarters are 3.2 percent, 3.6 percent, 3.8 percent, and 4 percent. If these rates are actually realized, at the termination of the swap the floating-rate payer will:
单选题Returns from a depository receipt are least likely impacted by which of the following factors?
单选题It is April 15, and a trader is entered into a short position in two soybean meal futures contracts. The contracts expire on August 15, and call for the delivery of 100 tons of soybean meal each. Further, because this is a futures position, it requires the posting of a $ 3000 initial margin and a $1500 maintenance margin per contract. For simplicity, however, assume that the account is marked to market on a monthly basis. Assume the following represent the contract delivery prices (in dollars per ton) that prevail on each settlement date:
单选题An analyst gathered the following annual data for SMG Corporation on 2004: Net profit margin 5% Total asset turnover 2.0% Total assets to equity 2.5% Net income $25000000 Dividends paid on common stock $10000000 The SMG Corporation's estimated dividend growth rate is closest to: A. 10.0%. B. 15.0%. C. 20.0%.
单选题A finance lease results in the following net income effects to a lessee as compared to an operating lease:
early years later years
① lower lower
② lower higher
③ higher lower
单选题The following information is available from the accounting records of a company at 31 December 2009 (all figures in $thousands):
accounts payable
accounts receivable
bank loan, due on demand
cash
income taxes payable
inventory
investments accounted for by the equity method
loan payable, due 30 June 2012
deposits from customers for delivers in 2010
20
82
44
12
5
47
112
50
8
The working capital for the company (in $thousands) is closest to:
单选题Which of the following is the most appropriate reason for using a free-cash-flow-to-equity (FCFE) model to value equity of a company?
单选题The manager of a pension fund determines that during the past five years 85 percent of the stocks in the portfolio have paid a dividend and 40 percent of the stocks have announced a stock split. If 95 percent of the stocks have paid a dividend or announced a stock split, the joint probability of a stock paying a dividend and announcing a stock split is closest to:
单选题When a risk-free asset is combined with a portfolio of risky assets, will the
Standard deviation of the resulting portfolio Graph of the possible portfolio return and risk combinations
be a linear funtion of the standard deviation display increasing incremental return per unit
of the risky asset portfolio? of incremental resk change?
①A. YES NO
②B. YES YES
③C. NO YES
A. ①B. ②C. ③
单选题Refusing to invest in companies that sell tobacco products, alcohol, or products that are harmful to the environment would constitute a set of investment restrictions that would best be classified according to which one of the following investment constraint categories? A. Factors that are considered to be either legal or regulatory. B. Style investing. C. Unique needs and preferences.