单选题The main risk faced by an individual who enters into a forward contract to buy the S&P 500 Index is that
单选题An analyst has gathered the following information about a company.
The total asset turnover is 1.2.
The after-tax profit margin is 10 percent.
The financial leverage multiplier is 1.5.
Given this information, the company" s return on equity is:
单选题Which of the following statements about return objectives is TRUE? A. To achieve the capital appreciation objective, the nominal rate of return must exceed the rate of inflation. B. The total return objective considers returns from both capital gains and current income, net of expected inflation. C. The current income objective is usually appropriate when an investor requires the purchasing power of the initial investment to increase over time.
单选题An analyst does research about profit and loss about stock and stock option transaction. An investor simultaneously purchases a stock priced at $78 and writes a call option on that stock with an exercise price of $80 selling at $6. If the price of the underlying is $85 at expiration of the option, the profit for that investor's position is closest to: A. $3 B. $8 C. $11
单选题Which of the following documents is most useful for reviewing a list of journal entries in order of their dates? A. Trial balance. B. General ledger. C. General journal.
单选题An analyst does research about compounding rate of return. An investor makes the following beginning-of-quarter deposit into an account with an initial balance of $0. Quarter Amount 1 $25000 2 $15000 3 $10000 4 $5000 If the account earns a stated rate of return 8% per year compounded quarterly, the value of this account at the end of Quarter 4 is closest to: A. $57336 B. $58483 C. $69972
单选题The following data pertains to a company's common-sized financial statements. Current assets 40% Total debt 40% Net income 16% Total assets $ 2000 Sales $1500 Total asset turnover ratio 0.75 The firm has no preferred stock in its capital structure. The company' s after-tax return on common equity is :
单选题Nigella Company has a 3-year contract to build a manufacturing plant for $ 2500. They have a reliable estimate that costs will be $ 2000 over the life of the contract. The project has the following year-end billing amounts, cash received and costs incurred: Year 1 Year 2 Year 3 Total Billed $1000 $1000 $500 $2500 Cash received 700 1200 600 2500 Costs incurred 700 900 400 2000 Under the completed contract method of revenue recognition, the total liabilities associated with this project at the end of year 2 for Nigella will be:
单选题Use the following information and the dividend discount model to find the value of GoFlower, Inc. 's, common stock? Last year's dividend was $ 3.10 per share. The growth rate in dividends is estimated to be 10 percent forever. The return on the market is expected to be 12 percent. The risk-free rate is 4 percent. Go Flower's beta is 1.1. A. $121.79. B. $34.95. C. $26.64.
单选题A well-diversified Investor most likely prefer a portfolio with A high or low sharpe ratio Positive ornegative skewness A. low Positive B. low Negative C. high Positive
单选题Which of the following measures of profit is most likely necessary for a firm to stay in business in the long run?
单选题A portfolio of options had a return of 22 percent with a standard deviation of 20 percent. If the risk - free rate is 7.5 percent, what is the Sharpe ratio for the portfolio?
单选题Which of the following constraints would most likely appear in the unique needs and preferences section of a trust's investment policy statement (IPS)? The portfolio is: A. subject to the prudent-man standard. B. prohibited from investing in tobacoo companies. C. prohibited from holding less than 5% in cash instruments.
单选题As the number of compounding periods increases, what is the effect on the EAR?
单选题Which of the following statements regarding fund of funds (FOF) is FALSE? A. FOF may be able to offer access to hedge funds that are closed to new, individual investors. B. FOF have consistently delivered high returns to investors. C. A FOF can give an investor exposure to several hedge funds for roughly the same investment required to directly invest in a single hedge fund.
单选题Ward is a junior research analyst with JPS, a brokerage and investment-banking firm. JPS"s mergers and acquisitions department has represented the Danier Company in all of its acquisitions for the past 20 years. Two of JPS"s senior officers are directors of various Danier subsides. Ward has been asked to write a research report on Danier. What is the best course of action for him to follow?
单选题Relative to the duration/convexity approach, a shortcoming of the full value approach to measuring the interest rate risk of a bond portfolio is that is that it:
单选题ABEX Corporation common stock is selling for $50.00 per share. Both an American call option and a European call option are available on ABEX common, and each have identical strike prices and expiration dates. Which of the following statements concerning these two options is TRUE ? A. Because the American and European options have identical terms and are written against the same common stock, they will have identical option premiums. B. The greater flexibility allowed in exercising the American option will normally result in a higher market value relative to an otherwise identical European option. C. The American option will have a higher option premium, because the American security markets are larger than the European markets.
单选题According to the Management Discussion and Analysis section of Frankfurt Supply Company' s annual report, Frankfurt recently decreased the sales prices of its products in order to increase market share. In addition, Frankfurt recently lowered its requirements for credit customers and increased the credit limits of some customers. What is the most likely impact on Frankfurt' s accounts receivable turnover and inventory turnover as a result of these changes? Accounts receivable turnover Inventory turnover ①A. Decrease Decrease ②B. Increase Increase ③C. Decrease Increase
单选题Which of the following is least likely a limitation of financial ratios?