单选题If the money interest rate is measured on the y-axis and the quantity of money is measured on the x-axis, the money supply curve is:
单选题Which of the following statements about exchange-traded funds (ETFs) and closed-end funds is FALSE? A. ETFs can only trade in the secondary market, while closed-end funds can be redeemed in cash by the manager of the underlying index. B. Because of arbitrage, shares of an ETF rarely trade at a premium or discount to NAV as shares of a closed-end fund often do. C. Market specialists can create new shares of an ETF by depositing the underlying stocks, a strategy that cannot be used with closed-end funds.
单选题An analyst acquires the following information regarding a company:
Units
Unit Price
Beginning Inventory
559
$1.00
Purchases
785
$5.00
Sales
848
$15.00
Purchases Sales
$ 3191 per annum
+$20 What are the
earnings before taxes using the FIFO Method and the LIFO Method?
FIFO LIFO ①A. $
7525 $ 5541 ②B. $ 7525 $
5818 ③C. $ 6700 $ 5818
A. ①
B. ②
C. ③
单选题If no other estimator of a given parameter has a sampling distribution with a smaller variance, the estimator used is best characterized as:
单选题Given the following income statement and balance sheet for a company:
单选题Why should effective duration, rather than modified duration, be used when bonds contain embedded options? A. Effective duration considers expected changes in cash flows. B. Modified duration considers expected changes in cash flows. C. Either could be used if the bond has embedded options.
单选题For all patties involved, which of the following financial instruments is NOT an example of a forward commitment?
单选题A company is long an interest rate swap with a current market value of $125000. The company wants to terminate this swap before the expiration date. From a credit risk perspective, which of these is the least attractive way to terminate the swap? A. Sell the swap to a third party. B. Short an offsetting swap with a third party. C. Agree to terminate the swap and receive its market value from the eounterparty.
单选题An investor is choosing between a 10% corporate bond and a 6% municipal bond with similar risk and similar maturity. What is the marginal tax rate that will make the investor indifferent between the two bonds?
单选题Which of the following inventory valuation methods is allowed under Generally Accepted Accounting Principles (U. S. GAAP) and prohibited under International Financial Reporting Standards (IFRS)? A. Weighted average cost. B. First-in, first-out (FIFO). C. Last-in, first-out (LIFO).
单选题In capital markets, stock dividends and bond coupons generally provide what is referred to as:
单选题A year ago a company issued a bond with a face value of $1000 with an 8 percent coupon. Now the prevailing market yield is 10 percent. What happens to the bond? The: A. bond is traded at a market price higher than $1000. B. bond is traded at a market price less than $1000. C. company has to issue a new 2 -percent coupon bond.
单选题The following data is regarding the Link Company: A target debt/equity ratio of 0.5 Bonds are currently yielding 10% Link is a constant growth firm that just paid a dividend of $3.00 Stock sells for $31.50 per share, and has a growth rate of 5% Marginal tax rate is 40% What is Link's after-tax cost of capital?
单选题Fundamental analysis most likely requires the analyst to engage in: A. extrapolating historical data. B. performing aggregate market analysis. C. detecting the beginning of price movements that lead to new equilibrium prices.
单选题A company has the following data associated with it: A target capital structure of 10% preferred stock, 50% common equity and 40% debt. Outstanding 20-year annual pay 6% coupon bonds selling for $894. Common stock selling for $45 per share that is expected to grow at 8% and expected to pay a $2 dividend one year from today. Their $100 par preferred stock currently sells for $90 and is earning 5%. The company's tax rate is 40%. What is the after tax cost of debt capital and after tax cost of preferred stock capital? Debt Capital Preferred Stock Capital ①A. 4.2% 6.3% ②B. 4.5% 5.6% ③C. 4.2% 5.6%
单选题A portfolio manager is looking at an investment that has an expected
annual return of 10% with a standard deviation of annual returns of 5%. Assuming
the returns are approximately normally distributed, the probability that the
return will exceed 20% in any given year is closest to:
A. 0.0%.
B. 4.56%.
C. 2.28%.
单选题An independent analyst has only one client. One of the client's largest holdings is a brokerage firm. Because of the large holding by his client, the brokerage firm recently began allowing the analyst to tap into the firm's computer network to use the firm's research facilities. This is allowable as long as the analyst: A. discloses the relationship to the client. B. uses the resources to help manage the client's account. C. does all of the actions listed here.
单选题If quantity demanded declines 20 percent when incomes fall 3 percent, this good is:
单选题A trader who has bought a stock at $30 is concerned about a downside movement in the stock and would like to place an order that guarantees selling it at $25
单选题Which of the following is a company least likely required to present according to International Accounting Standard (IAS) No. 1 ? A. Cash flow statement. B. Disclosures of material events. C. Statement of changes in owners' equity.