单选题The following information applies to World Turn Co.: 10% rate of interest on newly issued bonds. 7% growth rate in earnings and dividends. The last dividend paid was $ 0.93. Shares sell for $16. Stock's beta is 1.5. Market risk premium is 6%. Risk-free rate of interest is 5%. The firm is in a 40% marginal tax bracket. If the appropriate risk premium relative to the bond yield is 4%. World Turn's equity cost of capital using the dividend discount model (DDM) and the capital asset pricing model (CAPM), is closest to: DDM CAPM ①A. 13.2% 6.5%
②B. 12.8% 14.0%
③C. 13.2% 14.0%
A．① B．② C．③
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Which of the following sources of short-term liquidity is considered reliable enough that it can be listed in the footnotes to a firm's financial statements as a source of liquidity?
单选题Which of the following would be least likely to cause a change in investing cash flow?
单选题Which of the following is least likely allowed if a bond is non-refundable? A corporation:
单选题Given investors require an annual return of 12.5 percent, a perpetual bond (i. e. , a bond with no maturity/due date) that pays $ 87.50 a year in interest should be valued at :
单选题The bond-equivalent yield (BEY) spot rates for U
单选题What should an analyst recommend based on the following information for two mutually exclusive projects?
Project
Investment at t=0
Cash Flow at t=1
IRR
NPV at 10%
a
b
-$5000
-$20000
$7000
$25000
40%
25%
$1364
$2727
单选题Consumer surplus is best described as:
单选题An analyst gathered the following information about two option-free bonds that each have a par value of $1000 : Bond 1 Bond 2 Time to maturity 5years 10years Annual coupon rate 5.0% 7.0% Discount rate today 6.0% 6.5% If the discount rate does not change for rather bond, one year from today, which of the following most likely describes the change in price for each bond? A. Both bond 1 and 2 will decrease. B. Both bond 1 and 2 will increase. C. Bond 1 will decrease and bond 2 will decrease.
单选题Preeta Singh, a CFA Candidate, is an asset manager employed by a fund management company managing very large segregated pension funds
单选题Swap contracts typically:
单选题Edgar, CFA, a financial analyst and avid windsurfer, has begun an
investment survey of the water sports leisure industry. His brother sells
windsurfing gear and tells him that McGorell 5, the newest product manufactured
by McGorell Enterprises, is the "hottest windsurfing rig on the market and will
be highly profitable for McGorell Enterprises." Edgar had never heard of
McGorell previously but after testing the board himself became very excited
about the McGorell 5 and issued an investment recommendation of "buy" on
McGorell Enterprises. As a result of issuing the recommendation, Edgar has:
A. not violated the Code and Standards.
B. violated the Code and Standards by failing to establish a reasonable and
adequate basis.
C. violated the Code and Standards by failing to consider the suitability of
the investment of his clients.
单选题Based on the following information, calculate the return on equity. Total asset turnover: 2.1 After-tax profit margin: 30% Financial leverage multiplier is 0.5
单选题Which item is least likely assumed to be a constant percentage of sales on a pro forma balance sheet?
单选题Which of the following statements about phases of the business cycle
is most accurate?
A. During an expansion, real output grows and unemployment increases.
B. During contraction, real output declines and unemployment
decreases.
C. The business peak is the highest output (measured in GDP) of an
expansion.
单选题Which of the following statements about price elasticity is most likely FALSE? A. The elasticity of demand of a good increases over time. B. If the price of gasoline increases, total expenditures on gasoline will increase. C. If the price of a brand of toilet paper increases, total expenditure on that brand of toilet paper will increase.
单选题Which of the following will most likely lead to cost-push inflation? A. A decrease in the cost of financing. B. An increase in the prices of raw materials. C. A technology change that lowers production costs.
单选题An analyst compared the performance of a hedge fund index with the performance of a major stock index over the past eight years. She noted that the hedge fund index (created from a database) had a higher average return, higher standard deviation, and higher Sharpe ratio than the stock index. All the successful funds that have been in the hedge fund database continued to accept new money over the eight-year period. Are the average return and the standard deviation, respectively, for the hedge fund index most likely overstated or understated? Average return for the Standard deviation for the hedge fund indes hedge fund index A. Understated Overstated B. Overstated Understated C. Overstated Overstated
单选题An analyst finds information about significant uncertainties affecting a company"s liquidity, capital resources and results of operations in the: