NO.1100 An investor invests $5000 today for 7 years at an interest rate of 8% compounded quarterly. Which of the following is true?

NO.1101 Which of the following would an analyst need to adjust due to the capitalization of interest (assume
U.S. GAAP)?

NO.1102 Which of the following statements is incorrect concerning the CAPM?

NO.1103 What type of charts does NOT provide four prices per data point entry?

NO.1104 David Stoyer is valuing a 400,000 square feet building. What is the value of his property using the sales/square ft technique assuming that the table below shows all recent sales of comparable properties in his proximate area?

NO.1105 Cash flows from operations are higher when:

NO.1106 Two bonds issued by the same corporation have identical coupon rate, payment frequency, par value and time to maturity. The indenture of the first bond contains a call option, and the indenture of the second bond specifies a conversion privilege.

NO.1107 On the same test, Tom scored at the 87th percentile, and Bill scored at the 73rd. This means

NO.1108 The assumptions of capital market theory expand on those of the _______ portfolio model and include consideration of the _________ rate of return.

NO.1109 The current exchange rate for Japanese yen is Y(JPY):$ = 0.008415. For a U.S. investor this is an example of:

NO.1110 A 5.25% coupon Treasury security with one year left to maturity is selling for 101.75, and a two-year
5 .45% coupon Treasury security is selling at a discount of 0.40% from par. Assume annual discounting.
The spot rate for the second year is

NO.1111 Which of the following indicates a company’s ability to cover currently maturing obligations from recurring operations?

NO.1112 Which statement is false?

NO.1113 Under the completed-contract method, the billings on construction contract represents:

NO.1114 Select the correct statement(s).
I). LIFO reserves must be disclosed in a firm’s annual report.
II). For income statement purposes, the more recent costs are matched against the current revenues under the LIFO assumption.
III). During periods of falling input prices, FIFO would underestimate gross profit.

NO.1115 The marginal revenue product will shift to the right if

NO.1116 Market neutral hedge funds are best described as:

NO.1117 BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding at the beginning of the year:
6.125% convertible bond, convertible into 33 shares of common stock. Issue price $1,000, 100 bonds
*
outstanding.
6.25% convertible preferred stock, $100 par, 2,315 shares outstanding. Convertible into 3.3 shares of
*
common stock, Issue price $100
8% convertible preferred stock, $100 par, 2,572 shares outstanding. Convertible into 5 common
*
shares, Issue price $80
9,986 warrants are outstanding with an exercise price of $38. Each warrant is convertible into 1 share
*
of common.
Average market price of common is $52.00 per share.
*
Common shares outstanding at the beginning of the year were 40,045.
*
Net Income for the period was $200,000, while the tax rate was 40%.
*
What were the Basic EPS for the year?

NO.1118 The arrangement between Delphi and GE Capital allows Delphi to finance its accounts payable through GE Capital. In the period when GE Capital pays the amounts due from Delphi to its vendors
Delphi reclassifies these items from accounts payable to short-term loans. The reclassification results in a(n) ________ in Delphi’s operating cash flow in that period. In the subsequent period Delphi repays GE
Capital, the outflow of the cash is reported as a ______ activity.

NO.1119 Lease A does not contain a bargain purchase option, but the lease term is equal to 90% of the estimated economic life of the leased property. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 70% of the estimated economic life of the leased property. How should the lessee classify these leases?

NO.1120 Bob Ryan, CFA, is an analyst with a large insurance company. His personal portfolio includes a significant investment in the common stock of QRS Company, which his firm does not now follow. The director of the insurance company’s research department asks Ryan to analyze QRS and write a report about its investment potential. Based on CFA Institute’s Standards of Professional Conduct, Ryan should: