单选题A firm has the following characteristics:
Relatively small in size.
Marginal revenue is equal to the selling price.
Economic profits will not be earned for any significant period of time.
The firm is best described as existing in a(n)（ ）
单选题Consider the following statements: Statement 1: "The sum of consumer and producer surpluses is maximized under both monopoly and perfect competition. " Statement 2: "All else being equal, a monopolist that practices price discrimination will be more allocatively efficient than a single-price monopolist. " Which of the following best describes the accuracy of these statements? Statement 1 Statement 2 ①A. Incorrect Correct ②B. Correct Correct ③C. Correct Incorrect
单选题Consider a call option expiring in 60 days on a non-dividend-paying stock trading at 53 when the risk-free rate is 5%. The lower bound for a call option with an exercise price of 50 is:
单选题Which of the following is least likely a reason that investors should
be skeptical of reported market anomalies?
A. Strategy risk.
B. Synchronous trading.
C. Data mining.
单选题Compared to using a fixed-rule monetary policy, using a feedback rule monetary policy: A. will stabilize aggregate demand. B. will reduce inflationary cycles. C. may make economic cycles more severe.
单选题Ahouseholdhasatotalmonthlybudgetof$110tospendonchickenandlamB.Perkilogram,thepriceofchickenis$7.50andthepriceoflambis$10.Thequantityofchickenconsumedis35%lessthanthatforlamB.Thequantityofchicken(inkilograms)consumedbythehouseholdinamonthisclosestto:
单选题A corporation being analyzed has a return on equity (ROE) of 14.3 percent compared to the industry average of 11.8 percent. Which of the following statements about the company, based on the DuPont equation, could explain the higher than average ROE? A. The net profit margin is lower than the industry average, but the company is using a higher proportion of debt financing than the industry average. B. All of the statements could explain the higher than average ROE. C. The asset turnover is lower than the industry average, but the net profit margin is higher than the industry average.
单选题Lynn Moody, CFA, is an investment officer at the Lester Trust Company. Moody also volunteers on a fund-raising committee for a local nonprofit organization with the purpose of environment protection. Moody sees the name of David Bradford, a former client of her company on the list of prospective new donors. Without disclosing that Bradford was a former client, Moody tells the committee that Bradford has donated generously to similar nonprofit organizations. Has Moody most likely violated the Standards of Professional Conduct? A. No. B. Yes, relating to disclosure of conflicts. C. Yes, relating to preservation of confidentiality.
单选题One disadvantage of using the price/sales (P/S) multiple for stock valuation is that: A. profit margins are not stable over time. B. profit margins are not consistent across firms within an industry. C. sales are relatively stable and might not change even though earnings and value might change significantly.
单选题Giventhefollowinginformationaboutafirm:debt-to-equityratioof50%taxrateof40%costofdebtof8%costofequityof13%,thefirmsweightedaveragecostofcapital(WACC)isclosestto:
单选题If two events are independent, the probability that they both will
occur is:
A. 0.00.
B. 0.50.
C. Cannot be determined from the information given.
单选题When analyzing a firm's reconciliation between its effective tax rate and the statutory tax rate, which of the following is NOT a potential cause for the difference between the effective rate and the statutory rate? A. Deferred taxes provided on the reinvested earnings of unconsolidated domestic affiliates. B. Tax credits. C. Use of accelerated depreciation for tax purposes and straight-line depreciation for reporting purposes.
单选题A company is planning a new issue of $100 par preferred stock with a 12 percent dividend. The preferred stock can be sold for $95 per share and the company must pay flotation costs of 5 percent of the market price. Assuming a marginal tax rate of 40 percent, the after-tax rate of 40 percent, the after-tax cost of the preferred stock is closest to:
单选题The eight major provisions of Global Investment Performance Standards (GIPS) include all of the following except:
单选题An analyst does research about steps in the financial statement analysis framework. Forecasts are most likely an output of which step of the financial statement analysis framework? A. Collect input data. B. Process data. C. Analyze/interpret the processed data.
单选题Which of the following activities would least likely be an example of good corporate governance?? A. Management is allowed to act independently of board of directors. B. The board of directors has decided to hold annual elections. C. The board of directors has decided to conduct a self-assessment.
单选题An analyst does research about asemiannual-pay callable bond. The bond with a face value of $1000 and a coupon rate of 5% is callable in 4 years at 1020. If the bond matures in 7 years and is currently priced as $980, the yield to worst is closest to: A. 3.01% B. 5.35% C. 6.02%
单选题If firms Acme and Butler have the same amount of sales and equal quick ratios, but Acme"s receivables turnover is higher, it is most likely that:
单选题Which of the following is most likely presented on a common-size balance sheet or common-size income statement?
单选题An analyst wants to calculate an appropriate price to earnings (P/E) ratio for a company that operated in mining industry using the following information. The company's average return on equity was determined to be 13. 3 percent during the four-year period ending in 2011, and that the company's book value per share was $8.45 at the beginning of that period but had increased to $12.36 in 2011. If the company's stock is priced at $40 per share, the appropriate P/E is closest to: A. 24.3 B. 28.9 C. 56.4