单选题Angus, CFA, is a principal at Nelson Brothers, a leading regional investment bank specializing in initial public offering of small to mid-sized biotech firms. Just before many of IPOs are offered to the general public, Angus arranges for 10% of the shares of the firm going public to be distributed to management by Nelson Brothers. This action is a violation of the Standard concerning:
单选题An argument against using the price to cash flow (P/CF) valuation approach is that: A. cash flows are not as easy to manipulate or distort as EPS and book value. B. non-cash revenue and net changes in working capital are ignored when using earnings per share (EPS) plus non-cash charges as an estimate. C. price to cash flow ratios are not as volatile as price-to-earnings (P/E) multiples.
单选题A critical corporate governance issue is ensuring that the board and its members have the requisite experienced needed to properly govern the firm for the shareholders' benefit. When considering board member qualifications, investors and shareholders should consider whether board members can act with care and competence as a result of their experience with all of the following EXCEPT : A. technologies, products, services which the firm offers. B. the competitive landscape the firm faces. C. strategies and planning.
单选题Alice Costain operates a convenience store in the financial district of London
单选题TheCentralLimitTheoremisbestdescribedasstatingthatthesamplingdistributionofthesamplemeanwillbeapproximatelynormalforlarge-sizesamples:
单选题Assume that output increased from 1550 to 1850 units per day as a
result of increasing labor from 200 to 210 workers. The marginal product of
labor is closest to:
A. 1.55 units per day per worker.
B. 30 units per day per worker.
C. 1.25 units per day per worker.
单选题Hezi Cohen, a CFA candidate, is a heavy user of social networking sites on the Internet
单选题Which of the following provisions provides the most flexibility for
the bond issuer?
A. put provision
B. call provision
C. sinking fund provision
单选题Emilie Rome. CFA, is a stock broker in Miller investment consulting firm. Charlotte Everett, one of Rome's clients is a retiree living on income from her pension plan with below-average risk tolerance. Everett asks Rome to buy a structured product consisting of call and put stock options. Rome tells Everett that the product has significantly high risk and low income. However, Everett still confirms the order, and Rome executes the trade. Has Davis most likely violated the Standards of Professional Conduct? A. No. B. Yes, relating to suitability. C. Yes, relating to loyalty, prudence, and care.
单选题An equity investment of $750000 in a private company will pay $19000000 at the end of five years if the company is successful. The following is estimates of the probability of failure for each year, given that it survives to the beginning of each year: Year Probability of Failure 1 0.40 2 0.35 3 0.30 4 0.25 5 0.20 If the company fails, the payoff is $0 (no money is recovered). If the investor's cost of equity for an investment with similar risk characteristics of this company is 20 percent, the net present value of the equity investment is closest to: A. $377873 B. $500723 C. $623573
单选题A software company pays a substantial amount of its compensation expense in the form of stock options. Without these options the company feels it will not be able to keep its key engineers. When adjusting for stock options, the EPS calculation is affected only when the stock price: A. is less than the exercise price. B. is greater than the exercise price. C. is greater than the stock price at the end of the previous year.
单选题An analyst does research about depreciation and gathers the following information about a company's property, plant, and equipment (PP& E): Gross PP& E $108000 Net PP& E $60000 Depreciation expense $12000 Based on this information, the remaining useful life of the company's PP&E is closest to: A. 4 years B. 5 years C. 9 years
单选题If marginal cost is above the average cost, when you produce your next
unit:
A. average cost will decline.
B. marginal cost will remain unchanged.
C. average cost will increase.
单选题What amount do venture capitalists' generally earn on their investment of time and capital? Ⅰ. Management fees of 1～2.5% of capital commitment Ⅱ. Management fees of 1～2.5% of capital invested Ⅲ. 80% of portfolio gain Ⅳ. 20% of portfolio gain
单选题If an oligopoly is characterized by fierce competition, in long-run
equilibrium the firms in the market will earn:
A. zero economic profits.
B. substantial economic losses.
C. substantial economic profits.
单选题Using the following assumptions, calculate the rate of return on a margin transaction for an investor who purchases the stock and the stock price at which the investor who shorts the stock will receive a margin call. Market Price Per Share: $25 Number of Shares Purchased: 1000 Holding Period: 1 year Ending Share Price: $22 Initial Margin Requirement: 50% Maintenance margin: 25% Transaction and borrowing costs: $0 The company pays no dividends What of the following choices is closest to the correct answer? The margin transaction return and margin call are: Margin Transaction Return Margin Call ①A. -24.00% $16.67 ②B. -12.00% $16.67 ③C. -24.00% $30.00
单选题An analyst gathers the following annual information ($millions) about a company that pays no dividends and has no debt:
net income
depreciation
loss on sale of equipment
decrease in accounts receivable
increase in inventories
increase in accounts payable
capital expenditures
proceeds from sale of stock
45.8
18.2
1.6
4.2
3.4
2.5
7.3
8.5
The company"s annual free cash flow to equity ($millions) is closest to:
单选题In a given firm, skilled workers currently produce three times as much of its product as unskilled workers do per hour worked. Skilled workers earn $25 per hour, and unskilled workers earn $12 per hour. Based on this information, the firm should:
单选题If the company's net profit margin declines to 0.10 in 2005, what total asset turnover would be needed in order to maintain the same ROE as in 2004, assuming there is no change in the financial leverage multiplier?
单选题Which of the following most accurately describes the condition that typically exists when marginal product is at a maximum?