CFA questions
What is the net present value and internal rate of return for an investment costing $3.43 million that is expected to increase annual cash flows by 41 million for each of the next five years, using a cost of capital of 15%?
(calculate the NPV and IRR)
What is the geometric mean return for a fund with ten years of annual returns of 2%, 6%, 9%, 10%, 11%, 16%, 14%, 5%, and 8%?
If there is a 25% probability of declining interest rates, a 60% probability of EPS of $10 and a 40% chance of an EPS of $8 if rates decline, and a 70% probability of an EPS of $6 and a 30% chance of an EPS of $4 if rates do not decline, what is the expected EPS?
If a stock is selling for $50 and each year there is a 60% probability of an uptick in price of $1 and a 40% probability the price moves down $1, what is the probability that the price is $53 after 3 years?
If the mean income of companies on a stock index is 42 million with a standard deviation of $3 million, which is closest to the standard error of the sample mean for a sampel size of 25?
Which is a residual claim?
What are the qualitiative characteristics of useful information under the IFRS framework?
What is closest to the cost of goods sold using the LIFO method if 2000 units were purchased the prior year for $50 each; 3000 units were purchased in the current year for $60 each; 4000 units are sold in the current year for $70 each; and ending inventory was 1000 units?
Which is closest to the weighted average number of shares outstnading for calculating EPS for a calendar year if a company had 360,000 shares outstanding on january 1st; issued 120,000 shares on Feburary 1st, had a 2 for 1 stock split on December 1 st; and had 960,000 shares outstanding on December 31st?
How are bonds issued two years ago for maturity in eight years measured on the balance sheet?
If a portfolio has a mean return of 8%, mean excess return of 5%, standard deviation of 22%, and a beta of 1.2, what is the Sharpe ratio?
If stocks have positive return 75% of the time, bonds have positive returns 80% of the time, and both have positive returns 65% of the time, what is the probability that only one of the two asset classes is positive?
What is the correlation between stock A with a variance of 1.44% and stock B variance of 2.25% given a covariance of 1.08%?
If the price for a stock in one year is predicted to be in the $75 to $105 range, which is closest to the mean and variance of the price, assuming a continuous uniform distribution?
On the balance sheet, what best describes liabilities expected to be liquidated or used up within one year or one business cycel?
What is achieved through the conversion of all balance sheet itmes to a percentage of total assets?
Buying stocks and bonds of another company would be in what category on a cash flow statement?
If a company has a target debt-to-equity ratio of 0.7, what weights would be used in the cost of capital calculations?
Which is closest to the return on assets if the return on equity is 12% and financial leverage is 2?
For a margin account with an an initial margin requirement of 40% , a purchase of 100 shares at $100 on full margin, and a maintenance margin of 25%, which is closest to the price at which the ivnestor will get a margin call?
What global equity indexes measure about 1700 equity securities in 19 countries, covering at least 60% of teh total value of all listed companies in each country and incldues the EAFE?
Which is closest to the cost of equity capital for a firm if the value of common stock is $36, the current dividend is $1, and the dividend growth rate is 8%?
Which is closest to the value of a share with current dividends of $2 per share, return on equity (ROE) of 10%, required rate of return of 15% and current earnings per share of $5?
Most differences in companies with respect to quality of earnings are addressed when compared using what ratios?
What is the payoff for a 3month call option with a strike price of $35 and a price at expiration of $33.50, when the risk-free rate is 4.5%?
What risk is caused by inflation?
Which is closest to the YTM for a 7% 8-year bond selling for 94.17?
Which is the most accurate method to measure interest rate risk?
Which is closest to tehd uration of a 15-year bond priced to sell at par at a yield of 7%, if the price is 108 at a yield of 6% and 93 at a yield of 8%?
If a company issues zero-coupon bonds rather than coupon bearing bonds, what will the company's debt-to-equity ratio do as the maturity date approaches?
How much should an analyst increase reported liabilities to treat all leases as debt if a company has financial leases of $10 million including $2 million in interest payments and operating leases of $15 million?
Which is the most appropriate conclusion if ROE stayed the same, the tax burden increased, the interest burden stayed the same, the EBIT margin stayed the same, asset turnover decreased, and leverage stayed the same?
Which is not allowed under IFRS?
Which is allowed under IFRS?
Which is least likely to factor into a capital budgeting decision?
Between US GAAP and IRFRS, which permist greater discretion in classifying some cash flow items as operating, investing, or financing activities?
In a period of rising prices, which is most likely greater for a company that uses LIFO compared to a company that uses FIFO?
When aer research costs most likley to be expensed rather than capitalized and development costs most likely allowed to be capitalized under certain conditions? (IFRS and GAAP)
WHich allows impairement losses to be reversed?(IFRS and GAAP)
What would most likely be decreased in the early periods of an asset's life for a company uses accelerated depreciation rather than straight-line depreciation?
Even studies such as stock splits and initial public offerings (IPOs) support the
Which is closest to value of a common stock with a dividend payout ratio of 50%, a dividend growth rate of 9%, a required rate of return of 12%, and current earnings per share of $2?
What is the growth rate of equity earnings without any external financing if the dividend payout ratio is 75% and the ROE is 10%?
What is the net income if revenue is 5000; cost of goods sold equals 4000; other operating expenses are 400; interest expense is 100; and tax expense is 100?
(calculate the NPV and IRR)
What is the geometric mean return for a fund with ten years of annual returns of 2%, 6%, 9%, 10%, 11%, 16%, 14%, 5%, and 8%?
If there is a 25% probability of declining interest rates, a 60% probability of EPS of $10 and a 40% chance of an EPS of $8 if rates decline, and a 70% probability of an EPS of $6 and a 30% chance of an EPS of $4 if rates do not decline, what is the expected EPS?
If a stock is selling for $50 and each year there is a 60% probability of an uptick in price of $1 and a 40% probability the price moves down $1, what is the probability that the price is $53 after 3 years?
If the mean income of companies on a stock index is 42 million with a standard deviation of $3 million, which is closest to the standard error of the sample mean for a sampel size of 25?
Which is a residual claim?
What are the qualitiative characteristics of useful information under the IFRS framework?
What is closest to the cost of goods sold using the LIFO method if 2000 units were purchased the prior year for $50 each; 3000 units were purchased in the current year for $60 each; 4000 units are sold in the current year for $70 each; and ending inventory was 1000 units?
Which is closest to the weighted average number of shares outstnading for calculating EPS for a calendar year if a company had 360,000 shares outstanding on january 1st; issued 120,000 shares on Feburary 1st, had a 2 for 1 stock split on December 1 st; and had 960,000 shares outstanding on December 31st?
How are bonds issued two years ago for maturity in eight years measured on the balance sheet?
If a portfolio has a mean return of 8%, mean excess return of 5%, standard deviation of 22%, and a beta of 1.2, what is the Sharpe ratio?
If stocks have positive return 75% of the time, bonds have positive returns 80% of the time, and both have positive returns 65% of the time, what is the probability that only one of the two asset classes is positive?
What is the correlation between stock A with a variance of 1.44% and stock B variance of 2.25% given a covariance of 1.08%?
If the price for a stock in one year is predicted to be in the $75 to $105 range, which is closest to the mean and variance of the price, assuming a continuous uniform distribution?
On the balance sheet, what best describes liabilities expected to be liquidated or used up within one year or one business cycel?
What is achieved through the conversion of all balance sheet itmes to a percentage of total assets?
Buying stocks and bonds of another company would be in what category on a cash flow statement?
If a company has a target debt-to-equity ratio of 0.7, what weights would be used in the cost of capital calculations?
Which is closest to the return on assets if the return on equity is 12% and financial leverage is 2?
For a margin account with an an initial margin requirement of 40% , a purchase of 100 shares at $100 on full margin, and a maintenance margin of 25%, which is closest to the price at which the ivnestor will get a margin call?
What global equity indexes measure about 1700 equity securities in 19 countries, covering at least 60% of teh total value of all listed companies in each country and incldues the EAFE?
Which is closest to the cost of equity capital for a firm if the value of common stock is $36, the current dividend is $1, and the dividend growth rate is 8%?
Which is closest to the value of a share with current dividends of $2 per share, return on equity (ROE) of 10%, required rate of return of 15% and current earnings per share of $5?
Most differences in companies with respect to quality of earnings are addressed when compared using what ratios?
What is the payoff for a 3month call option with a strike price of $35 and a price at expiration of $33.50, when the risk-free rate is 4.5%?
What risk is caused by inflation?
Which is closest to the YTM for a 7% 8-year bond selling for 94.17?
Which is the most accurate method to measure interest rate risk?
Which is closest to tehd uration of a 15-year bond priced to sell at par at a yield of 7%, if the price is 108 at a yield of 6% and 93 at a yield of 8%?
If a company issues zero-coupon bonds rather than coupon bearing bonds, what will the company's debt-to-equity ratio do as the maturity date approaches?
How much should an analyst increase reported liabilities to treat all leases as debt if a company has financial leases of $10 million including $2 million in interest payments and operating leases of $15 million?
Which is the most appropriate conclusion if ROE stayed the same, the tax burden increased, the interest burden stayed the same, the EBIT margin stayed the same, asset turnover decreased, and leverage stayed the same?
Which is not allowed under IFRS?
Which is allowed under IFRS?
Which is least likely to factor into a capital budgeting decision?
Between US GAAP and IRFRS, which permist greater discretion in classifying some cash flow items as operating, investing, or financing activities?
In a period of rising prices, which is most likely greater for a company that uses LIFO compared to a company that uses FIFO?
When aer research costs most likley to be expensed rather than capitalized and development costs most likely allowed to be capitalized under certain conditions? (IFRS and GAAP)
WHich allows impairement losses to be reversed?(IFRS and GAAP)
What would most likely be decreased in the early periods of an asset's life for a company uses accelerated depreciation rather than straight-line depreciation?
Even studies such as stock splits and initial public offerings (IPOs) support the
Which is closest to value of a common stock with a dividend payout ratio of 50%, a dividend growth rate of 9%, a required rate of return of 12%, and current earnings per share of $2?
What is the growth rate of equity earnings without any external financing if the dividend payout ratio is 75% and the ROE is 10%?
What is the net income if revenue is 5000; cost of goods sold equals 4000; other operating expenses are 400; interest expense is 100; and tax expense is 100?
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