CFA Level 1 － Mock Exam 2 模拟真题－Q86-90 face, style, black, class

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86、In a country that is experiencing neoclassical growth with increasing savings rate, investors can expect which of the following:

	higher dividends?	higher dividend growth?
A.	No	No
B.	No	Yes
C.	Yes	No
D.	Yes	Yes

Select exactly 1 answer(s) from the following:

A. AnswerA.

B. AnswerB.

C. AnswerC.

D. AnswerD.

 

87、Which of the following is the least likely characteristic of a call market? A call market is a:

Select exactly 1 answer(s) from the following:

A. primary market.

B. secondary market.

C. market with participation by a small number of active investors-traders.

D. market in which buy-sell orders are cleared at a single equilibrium price.

 

88、In computing free cash flow to equity, adjustment is needed for payments made to which of the following capital providers?

	Debt holders	Preferred stockholders
A.	No	No
B.	No	Yes
C.	Yes	No
D.	Yes	Yes

Select exactly 1 answer(s) from the following:

A. AnswerA.

B. AnswerB.

C. AnswerC.

D. AnswerD.

 

89、An equity investment in a producer firm would be more attractive at what levels of the bargaining power of buyers and suppliers, respectively?

	Bargaining power of buyers	Bargaining power of suppliers
A.	Low	Low
B.	Low	High
C.	High	Low
D.	High	High

Select exactly 1 answer(s) from the following:

A. AnswerA.

B. AnswerB.

C. AnswerC.

D. AnswerD.

 

90、The latest annual report of Waterford Crossing Inc. contains the following data:

Common stock $0.50 par value – Issued (2,000,000 shares)	$1,000,000
Additional paid-in-capital	$10,000,000
Retained earnings	$4,000,000
Treasury stock (500,000 shares)	$5,000,000
Current price per share	$15

The company's ending inventories based on LIFO are valued at $500,000 and a footnote to financial statements reports inventories valued using FIFO basis would be $600,000. The company's tax rate is 30%. The un-adjusted and adjusted price-to-book values of Waterford Crossing, respectively, are closest to:

	Unadjusted P/BV	Adjusted P/BV
A.	$1.88	$1.81
B.	$1.88	$1.94
C.	$2.25	$2.10
D.	$2.25	$2.42

Select exactly 1 answer(s) from the following:

A. AnswerA.

B. AnswerB.

C. AnswerC.

D. AnswerD.

 

7774

答案和详解如下：

86 Correct answer is C

“Equity: Concepts and Techniques,” Bruno Solnik and Dennis McLeavey
2008 Modular Level I, Vol. 5, pp. 133-134
Study Session 14-58-a
classify business cycle stages and identify attractive investment opportunities for each stage
Neoclassical growth theory assumes that marginal productivity of capital declines as more capital is added. Thus, it predicts that the long-term level of GDP depends on the country’s savings rate but not the long-term growth rate because of diminishing marginal returns and reaching a steady state. This implies increase in dividends, as the new level of GDP is reached, but not an increase in the dividend growth rate.

 

87 Correct answer is A

“Organizing and Functioning of Securities Markets,” Frank K. Reilly and KeithC. Brown
2008 Modular Level I, Vol. 5, pp. 13-15
Study Session 14-52-b, c
distinguish between primary and secondary capital markets, and explain how secondary markets support primary markets;
distinguish between call and continuous market
A call market is an exchange (secondary market), not a primary market. Typically, it is characterized by a few listed stocks or a small number of active investor-traders. Buy-sell orders are cleared at a single price (equilibrium price) that satisfies most of the orders.

 

88 Correct answer is D

“An Introduction to Security Valuation: Part II,” Frank K. Reilly and KeithC. Brown
2008 Modular Level I, Vol. 5, p. 185
“Understanding the Cash Flow Statement,” Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, pp. 287-288
Study Sessions 14-60-f, 8-34-i
describe a process for developing estimated inputs to be used in the DDM, including the required rate of return and expected growth rate of dividends;
explain and calculate free cash flow to the firm, free cash flow to equity, and other cash flow ratios
Free cash flow to equity is after subtracting payments to both debt holders and preferred stockholders.

 

89 Correct answer is A

“Equity: Concepts and Techniques,” Bruno Solnik and Dennis McLeavey
2008 Modular Level I, Vol. 5, p. 143
Study Session 14-58-e
discuss, with respect to global industry analysis, the elements related to risk, and describe the basic forces that determine industry competition
At high levels of the bargaining power of both buyers and suppliers, the producer would potentially experience a squeeze on profits and profit margins. Therefore, equity investments in producer firms with low levels of bargaining power of both buyers and sellers tend to be more attractive.

 

90 Correct answer is C

“Introduction to Price Multiples,” JohnD. Stowe, Thomas R. Robinson, Jerald E. Pinto, and Dennis W. McLeavey
2008 Modular Level I, Vol. 5, pp. 216-217
Study Session 14-61-b
calculate and interpret P/E, P/BV, P/S, and P/CF

 

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