单选题A 1 - month loan has a holding period yield of 1 percent. What is the annual yield of this loan on a bond -equivalent basis?
单选题An analyst does research about a capital project and gathers the following end of year cash flow information with an initial investment of $5000: Year Cash Flow 1 $2000 2 $3000 3 -$1000 4 $2000 5 -$800 The company's marginal cost of capital is 6% and the project's required rate of return is 7%. The project's net present value is closest to: A. -$296 B. -$371 C. -$412
单选题An investor purchased on margin 1000 shares of a stock priced at $ 50 per share. The investor borrowed the maximum amount allowed by the initial margin requirement of 60 percent. The maintenance margin is 30 percent. The lowest price share at which the stock could sell before the investor would receive a margin call is closest to:
单选题Charles Mbuwanga, a Level III CFA Candidate, is the business development manager for Sokoza Investment Group, an investment management firm with high-net-worth retail clients throughout Africa
单选题Dale Peterson plans to lease a computer from Gray Computing Services. It will be a 10-year lease with annual payments of $ 2400 plus a guarantee of a residual value of $ 4000 at the end of the lease. The asset has a 12 year useful life. The present value of the lease discounted at the appropriate interest rate of 9 percent is $ 17000. The company uses the straight-line depreciation method. In the first year, the reported lease expense is:
单选题Based on the concept of diminishing returns, as the quantity of output increases, the short-run marginal costs of production eventually:
单选题John buy the computer through creating a loan of $ 40000. It is to be paid off using 6 percent over ten years. Calculate the monthly payment.
单选题Rosalie Woischke is an executive with ColaCo, a nationally known beverage company. Woischke is trying to determine the firm's optimal capital budget. First, Woischke is analyzing projects Sparkle and Fizz. She has determined that both Sparkle and Fizz are profitable and is planning on having ColaCo accept both projects. Woischke is particularly excited about Sparkle because if Sparkle is profitable over the next year, ColaCo will have the opportunity to decide whether or not to invest in a third project, Bubble. Which of the following terms best describes the type of projects represented by Sparkle and Fizz as well as the opportunity to invest in Bubble? Sparkle and Fizz Opportunityto invest in Bubble A. Independent projects Add-on project B. Mutually exclusive projects Project sequencing C. Independent projects Project sequencing
单选题All else being equal, an option-free bond least likely has greater: A. interest rate risk than a callable bond. B. reinvestment risk than a callable bond. C. price appreciation potential than a callable bond.
单选题On 1 January 2010 a company enters into a lease agreement to lease a piece of machinery as the lessor with the following terms:
单选题Which of the following are most likely recognized as cash flows for capital budgeting purposes? A. Sunk costs. B. Financing costs. C. Opportunity costs.
单选题Which of the following decisions by analyst would most accurately describe a Type Ⅱ error? A. An analyst rejects a false null hypothesis. B. An analyst rejects a true null hypothesis. C. An analyst does not reject a false null hypothesis.
单选题Which of the following is TRUE for a price-taker firm in long-run
equilibrium when there are no barriers to entry?
A. P=MC=ATC=MR.
B. P=AVC=MR.
C. AVC=TR=TＣ.
单选题The current market price of National Tire (NT) is $ 35. Fran Wilson writes 6-month put options on NT with strike price $ 30, coveting 400 shares (i. e. 4 contracts), for which she receives a total premium of $1200. What is the expiration day value of Fran's written put position, if NT is priced at $ 25 at expiration?
单选题Which of the following is least likely to be a characteristic of an effective financial reporting framework?
单选题Thefollowingsampleof10itemsisselectedfromapopulatian.Thepopulationvarianceisunknow.1020-82-950-8321Thestandarderrorofthesamplemeanisclosestto:
单选题Which of the following is NOT a recommended procedure for compliance with the Standards of Professional Conduct relating to misrepresentation? The firm: A. specifically designates which employees are authorized to speak on behalf of the firm. B. discontinues using the work completed by a former member or candidate. C. provides a written list of the firm's available services and a description of the firm's qualification.
单选题Using the U.S
单选题The company has a target capital structure of 40 percent debt and 60 percent equity. $1000 par value bonds pay 10 percent coupon (semi-annual payments) , 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's marginal tax rate is 40 percent. The weighted average cost of capital (WACC) is closest to:
单选题Study the following data, calculate the return on equity for 2007 and 2008.
2007
2008
Pre-interest profit margin (EBIT/S)
0.3
0.15
Asset turnover (S/A)
2
2
Leverage multiplier (A/E)
2
2
Tax retention rate (1-t)
0.8
0.8
Interest expense ratio (I/A)
0.06
0.06
2007 2008
①A. 0.864 0.384
②B. 0.673 0.271
③C. 0.384 0.864
A. ①B. ②C. ③