单选题At the beginning of the year, Allison Company purchased all 500000 shares of Baker Company for $15 per share. Just before the acquisition date, Baker"s balance sheet reported net assets of $6 million. Allison determined the fair value of Baker"s property and equipment was $1 million higher than reported by Baker. What amount of goodwill should Allison report as a result of its acquisition of Baker?
单选题The quantity of labor that a profit maximizing firm will employ,
holding other input factors constant, is the level at which:
A. the marginal revenue product of labor is equal to the wage rate.
B. the marginal product of labor is equal to the marginal cost of
labor.
C. one more unit of labor would cost less than the value of its additional
output.
单选题Which of the following is least likely to be an obstacle to the efficient allocation of resources?
单选题The current coupon period for a 10-year IBM bond with face value $100000 and a 7% coupon rate is 183 days in length. The next coupon will be paid 85 days from today's settlement date. What is the accrued interest on this bond?
单选题A reserve requirement of 20% implies a potential money deposit expansion multiplier of:
单选题A labor market analyst makes the following assertions about trends in labor income:
Statement 1: The net effect of technological improvements has been to increase the demand for labor. This can be seen in the long-run increase in real wage rates.
Statement 2: The broadest measure of labor income is total wages, salaries, and tips received. Are these two statements correct?
Statement 1 Statement 2
①A. Correct Correct
②B. Incorrect Correct
③C. Correct Incorrect
A. ①B. ②C. ③
单选题Stocks A, B, and C each have the same expected return and standard
deviation. The following table shows the correlations between the returns on
these stocks.
Correlation of Stock Returns
Stock A
Stock B
Stock C
Stock A
+1.0
Stock B
+0.9
+1.0
Stock C
+0.1
-0.4
+1.0 Given the
above correlations, the portfolio constructed from these stocks having the
lowest risk is a portfolio :
A. equally invested in stocks A and B. B. equally invested in
stocks A and C.
C. equally invested in stocks B and
C.
单选题The Global Investment Performance Standards leastlikely require:
单选题A columnist is discussing how the efficient quantity of output for a
good or service is determined. These two statements appear in his
column: Statement 1: The equilibrium quantity of production for
a good or service can be considered efficient as long as the marginal social
benefit of that quantity is greater than its marginal social cost.
Statement 2: Subsidies and quotas typically result in production of a
good or service in quantities at which the marginal social cost exceeds the
marginal social benefit. Are these statements
correct? Statement 1
Statement 2 ①A.
Correct
Correct ②B. Correct
Incorrect
③C. Incorrect
Incorrect
A. ①
B. ②
C. ③
单选题A distribution with a mean that is less than its median is most likely:
A. is negatively skewed.
B. is positively skewed.
C. has negative excess kurtosis.
单选题What are the three basic categories of bond indexes? A. Corporate; government; municipal. B. Investment grade; high yield; global. C. Manufacturing; service; technological.
单选题Which of the following bond price calculations is INCORRECT? An investor would pay:
单选题Which of the following statements about the semistrong-form efficient market hypothesis (EMH) and the strong-form EMH is FALSE? A. Small firms tend to underperform large firms on a risk-adjusted basis. B. Tests have found that stocks with low price to earning (P/E) ratios tend to outperform stocks with high P/E ratios. C. The strong form of the market efficiency hypothesis states that security prices fully reflect all public and private information.
单选题The D&G Corporation had 100000 shares of common stock outstanding at the beginning of the year. D&G issued 30000 shares of common stock on May 1. On July 1, the company issued a 10% stock dividend. On September 1, D&G issued 1000, 10% bonds, each convertible into 21 shares of common stock. What is the weighted average number of shares to be used in computing basic and diluted EPS, assuming the convertible bonds are dilutive?
Average shares, basic Average shares, dilutive
① 132000 139000
② 132000 146000
③ 139000 146000
单选题By definition, the probability of any event, E, is a number between:
单选题Given that the current ratio is 2.0 times if we use cash to settle the short-term liability. How would this transaction affect the current and quick ratios? Current Ratio Quick Ratio A. decrease decrease B. decrease remain unchanged C. increase remain unchanged
单选题Suppose the price of a share of Stock A is $100. A European call option that matures one month from now has a premium of $8, and an exercise price of $100. Ignoring commissions and the time value of money, the holder of the call option will earn a profit if the price of the share one month from now:
单选题An analyst does research about an equity swap. An asset manager enters into a swap with a dealer. At the end of each quarter during the life of the swap, the dealer agrees to make a fixed-rate payment of $2 million, and the asset manager agrees to make an equity payment that is based on the return on a stock index for that quarter. The swap agreement allows netting of payments. The value of the stock index is 278 at initiation of the swap and 259 at the end of the first quarter. The payment due from the dealer to the asset manager at the end of the first quarter is most likely: A. equal to $2 million. B. more than $2 million. C. less than $2 million because the payments are netted.
单选题A monopolist will continue expanding output as long as: A. marginal revenue is positive. B. marginal revenue is greater than marginal cost. C. average total costs are declining.
单选题Lisa Cox feels that the price of corn is going to rise in the
future and wants to lock in a price using either a futures or forward contract.
She is unfamiliar with the differences between the two instruments and asks her
associate, Matt Kudrow, to explain the differences. Which of Kudrow's comments
is TRUE? In futures markets, the role of the clearinghouse is to:
A. prevent arbitrage and enforce federal regulations.
B. act as guarantor to both sides of a futures trade.
C. reduce transaction costs by making contract prices
public.