单选题A companys beginning inventory was overstated by $3000, now ending inventory is understated by $2000. If purchases were properly reported, then earnings before taxes will be（ ）
单选题Annual depreciation and accumulated depreciation are most likely classified as which financial statement elements?
annual depreciation accumulated depreciation
① expenses contra assets
② expenses contra liabilities
③ liabilities contra assets
单选题Mary Hiller, CFA, is a senior analyst at a mutual fund
单选题When using net present value (NPV) profiles: A. the NPV profile's intersection with the horizontal x-axis identifies the amount of profit the project will make. B. the NPV profile's intersection with the vertical y-axis identifies the project's internal rate of return. C. one should accept all independent projects with positive NPVs.
单选题Combining a risk-free asset with a portfolio of risky assets results in all of the following EXCEPT: A. the standard deviation of the expected return for the newly created portfolio is the linear proportion of the standard deviation of the risky asset portfolio and the expected return for the newly created portfolio is the weighted average of the return on the risk-free asset and the expected return on the risky asset portfolio. B. the efficient frontier becomes the line that connects the point in the risk-return plane representing the risk-free asset, with the point representing the risky asset portfolio. C. all risk-return combinations between the risk-free asset and the risky asset portfolio can be represented by a straight line that connects the point in the risk-return plane representing the risk-free asset, with the point representing the risky asset portfolio.
单选题Jeffery Marian, an analyst with Arlington Machinery, is estimating a
country risk premium to include in his estimate of the cost of equity for a
project Arlington is starting in India. Marian has compiled the following
information for his analysis: Indian 10-year government bond
yield=7.20%. 10-year U. S. Treasury bond yield
=4.60%. Annualized standard deviation of the Bombay Sen stock
index =40%. Annualized standard deviation of Indian dollar
denominated 10-year government bond=24%. Annualized standard
deviation of the S&P 500 Index = 18%. The estimated country
risk premium for India based on Marian's research is closest to:
A. 5.8%.
B. 2.6%.
C. 4.3%.
单选题Financial risk is least likely affected by:
单选题Mafia Lena, CFA, wants to determine the relationship between the returns on two asset classes: bonds and preferred stock. She has assembled two representative portfolios in order to estimate the relationship. The all-bond portfolio has a variance of 90.2, while the all-preferred-stock portfolio has a variance of 120.4. The covariance between the two portfolios is equal to 62.5. Which of the following statements accurately summarizes the relationship between the two asset classes? If returns on bonds: A. rise by 10% , returns on the preferred stocks should rise by 6%. B. rise by 10%, returns on the preferred stocks should fall by 6%. C. fall by 1% , returns on the preferred stocks should fall by 6.25 %.
单选题At U.S. stock exchange, the limit order book is controlled by:
单选题An analyst is considering two bonds: Bond A yields 7.5% , and Bond B yields 7.0%.
Using Bond B as the reference bond, the absolute yield spread and the yield ratio for Bond A are closest to:
Spread Ratio
①A. -0.5% 1.07
②B. -015% 0.93
③C. 0.5% 1.07
A. ①B. ②C. ③
单选题Which of the following condition is least likely to be the reason that a black market is generally inefficient? A. Unenforceable contract. B. Increased prices required by suppliers due to the risk of prosecution. C. Intensive control by the government.
单选题Galaxy, Inc.'s balance sheet as of December 31,2004 included the following information (in $):
单选题In the early years of an asset"s life, compared to a firm using straight-line depreciation, a firm using the double-declining balance depreciation method will report:
单选题Consider a $3 million semiannual-pay floating-rate issue where the rate is reset on January 1 and July 1 each year. The reference rate is 6-month LIBOR, and the stated margin is +1.75%. If 6-month LIBOR is 7.45% on July 1, what will the next semiannual coupon be on this issue?
单选题An analyst does research about business combinations and deferred taxes. If a business combination results in the acquirer recording a deferred tax asset for the tax losses of the acquiree. the offsetting credit is most likely to: A. equity. B. liability. C. goodwill.
单选题An investor's portfolio has a mean return of 15 percent and a coefficient of variation of 1.8. If the risk-free rate of return is 5 percent, the portfolio has the sharpe ratio is closet to:
单选题An analyst does research about goodwill. Which of the following statements about goodwill created in a business combination is least accurate? A. Goodwill is amortized. B. Goodwill is tested annually for impairment. C. Goodwill is capitalized.
单选题An analyst gathered the following data for the Parker Corp. for the year ended December 31, 2008: EPS2008=$1.75 Dividends2008=$1.40 Betaparker=1.17 Long-term bond rate = 6.75% Rate of return S&P500=12.00% The firm has changed its dividend policy and now plans to pay out 60% of its earnings as dividends in the future. If the long-term growth rate in earnings and dividends is expected to be 5% , the appropriate price to earnings (P/E) ratio for Parker will be: A. 7.98. B. 9.14. C. 7.60.
单选题Which of the following statements is least likely correct?
单选题Which of the following statements regarding primary and secondary
markets is FALSE?
A. Secondary market transactions occur between two investors and do not
involve the firm that originally issued the security.
B. New issues of government securities can be sold on the primary
market.
C. Prevailing market prices are determined by primary market transactions
and are used in pricing new issues.