CFA-Level-I Exam Question 11
You have a friend who works as a legal adviser to a firm which is about to be acquired at a significant premium to the current market price. He informs you of the upcoming acquisition and suggests that you purchase a significant number of shares. He says that while he is an insider, you can trade on the information because you are not.
CFA-Level-I Exam Question 12
According to the Marshall-Lerner condition, a currency depreciation is least likely to lead to an improvement in the home country's trade balance when:
CFA-Level-I Exam Question 13
Based on the "A Manual for Investors", investors should ensure that all members of ______ must be
Independent Board Members.
I). Audit committee.
II). Remuneration / Compensation committee.
III). Nominations Committee.
Independent Board Members.
I). Audit committee.
II). Remuneration / Compensation committee.
III). Nominations Committee.
CFA-Level-I Exam Question 14
Which of the following calculations can be successfully performed without knowing the required rate of return?
I). Net Present Value
II). Internal Rate of Return
III). Modified Internal Rate of Return
IV). Time-weighted Rate of Return
V. Dollar-weighted Rate of Return
VI). Valuing a common stock using the Dividend Discount Model
VII). Valuing a common stock using the Free-cash-flow-to-equity Model
I). Net Present Value
II). Internal Rate of Return
III). Modified Internal Rate of Return
IV). Time-weighted Rate of Return
V. Dollar-weighted Rate of Return
VI). Valuing a common stock using the Dividend Discount Model
VII). Valuing a common stock using the Free-cash-flow-to-equity Model
CFA-Level-I Exam Question 15
On 12/31/99, Morgan Corporation's capital structure is as follows:
Common Stock outstanding 200,000
*
Nonconvertible, $100 Par, 6% Preferred Stock 37,700 Shares
*
8.00 %, $1,000 Convertible bonds $1,500,000
*
Stock options to purchase 33,000 shares of common at $30.00 a share.
*
Average market price of common stock during 2000 was $39
*
The following events occurred in 2000:
On 9/1/00, Morgan sold 283,000 additional shares of common stock.
*
Net income for the year was $1,375,000, after taxes.
*
The 8.00% convertible bonds are convertible into 80 shares of common stock for each $1,000 bond.
*
The tax rate for 2000 is 25%
*
What is the diluted EPS for 2000?
Common Stock outstanding 200,000
*
Nonconvertible, $100 Par, 6% Preferred Stock 37,700 Shares
*
8.00 %, $1,000 Convertible bonds $1,500,000
*
Stock options to purchase 33,000 shares of common at $30.00 a share.
*
Average market price of common stock during 2000 was $39
*
The following events occurred in 2000:
On 9/1/00, Morgan sold 283,000 additional shares of common stock.
*
Net income for the year was $1,375,000, after taxes.
*
The 8.00% convertible bonds are convertible into 80 shares of common stock for each $1,000 bond.
*
The tax rate for 2000 is 25%
*
What is the diluted EPS for 2000?