The following data are taken from the AlphaBeta Company's financial statements ending Dec 31, 1990:
Increase in salaries payable 120 Decrease in accounts payable 45 Provision for bad debt 15 Depreciation 90 Interest paid 35 Proceeds from new bonds issued 225 Net Income 350 Tax rate 35%
What was AlphaBeta's operating cash flow in 1990?
A. 450What is the Net Present Value of this series of annual cash flows using an interest rate of 15% per year: Year 0: <$25,000>, Year 1: $5,000, Year 2: $0, Year 3: $30,000? (Note that the <> are used to indicate a negative number).
A. $14. 37An analyst is evaluating a European call option with a strike price of 25 and 219 days to expiration. The underlying stock is currently trading for $29, and the analyst thinks that by the option expiration date the stock will be valued at $35. If the risk-free rate is 4. 0%, what is the lower bound on the value of this option?
A. $0Four years ago, the relative yield spread between ten-year A-rated corporate securities with no embedded options, and ten-year on-1he-run U.S. Treasuries, was 27. 5%. Currently, the nominal yield on ten-year A-rated corporate securities is 5. 45%, and the yield on ten-year on-the-run U.S. Treasuries is 4. 10%. Calculate the current relative yield spread, and, assuming that any change in the yield spread is due to changes in the credit spread, identify whether the economy has most likely weakened or strengthened over the past four years.
A. The current yield spread is 32. 9%, indicating that the economy has weakened.Affirmative action commitments by industrial organizations have led to an increase in the number of women in executive positions. Satellite Office Systems has vacancies for two executives, which it will fill from among four women and six men. What is the probability that no woman is selected?
A. None of these answersEach salesperson in a large department store chain is rated either below average, average, or above average with respect to sales ability. Each salesperson is also rated with respect to his or her potential for advancement either fair, good, or excellent. These traits are the 500 salespeople were cross classified into the following table.
Sales Ability Potential for Advancement Fair Good Excellent Below Average 161222 Average 456045 Above Average 9372135
What is the probability that a salesperson selected at random will have average sales ability and good potential for advancement?
A. 0.09Load open-end funds charge
A. sales fees of about 7. 5 to 8% of NAV.You are examining a group of 3 stocks within an industry. The industry average debt-to-equity ratio is expected to be 40%. For these stocks, the average debt-to-equity ratios have been 50%, 40%, and 30%. What is the mean absolute deviation of debt-to-equity ratios from the industry average?
A. 13. 3%.Current liabilities are recorded at ________.
A. their market valueDriver Corporation faces an IOS schedule calling for a capital budget of $60 million. Its optimal capital structure is 60 percent equity and 40 percent debt. Its earnings before interest and taxes (EBIT) were $98 million for the year. The firm has $200 million in assets, pays an average of 10 percent on all its debt, and faces a marginal tax rate of 35 percent. If the firm maintains a residual dividend policy and will keep its optimal capital structure intact, what will be the amount of the dividends it pays out after financing its capital budget?
A. $30.0 millionNowadays, the certification exams become more and more important and required by more and more enterprises when applying for a job. But how to prepare for the exam effectively? How to prepare for the exam in a short time with less efforts? How to get a ideal result and how to find the most reliable resources? Here on Vcedump.com, you will find all the answers. Vcedump.com provide not only CFA Institute exam questions, answers and explanations but also complete assistance on your exam preparation and certification application. If you are confused on your CFA-LEVEL-1 exam preparations and CFA Institute certification application, do not hesitate to visit our Vcedump.com to find your solutions here.