[PDF] Top 20 CFA 2018 Level 2 Equity Quest bank Equity Valuation QBank

... An investment is NOT expected to yield abnormal positive returns when its market price is higher than its intrinsic value.. When market prices accurately reflect all information, investo[r] ... Lihat dokumen lengkap

... . 2 ÿ 0.- ÿ 3 45 6 ÿ 2+- 2- + ÿ (ÿ 2(+'ÿ 1+- ÿ 7 ÿ (ÿ 28ÿ 7 ÿ 4 , ÿ 9, ', ÿ :- +2ÿ ...'ÿ 2+, < ÿ = , 6 ÿ +0ÿ (+ ÿ +ÿ 1 , ÿ (- ... Lihat dokumen lengkap

...  The valuation of equity depends on the definition of value used. Also, controlling and no controlling equity interests will have quite different values. These differences should be accounted for in ... Lihat dokumen lengkap

... FCFF valuation formula is actually the “ value of the operating assets ” , so the total firm value should be added with the non-operating assets, such as “ excess cash ” , “ excess marketable securities ” , “ land ... Lihat dokumen lengkap

... 1. By marketing the Paine Webber Short-Term US Government Fund as a low volatility investment, but then deviating from the Fund’s investment objective and investment policy without seeking client s’ approval, Mitchell ... Lihat dokumen lengkap

... 8. Samia Ali, an analyst at Toplink Securities, is writing a research report on Engro Corporation. She shares sections of her report, exclusive of the recommendations, for verification of certain facts with the subject ... Lihat dokumen lengkap

... 2. Suppose the following quotes are available in the interbank market: USD/EUR = 1.3649/1.3651 and JPY/USD = 76.64/76.66. A dealer is quoting a rate of JPY/EUR = 104.66/104.68. Based on this information the most ... Lihat dokumen lengkap

... According to the regulatory capture theory, the regulator is often dominated by individuals who are closely connected with the industry they should be regulating.. In such situations the[r] ... Lihat dokumen lengkap

... 19.Consider the following investment and cash flows of JBX Company: Investment €200 million Depreciation Straight-line to zero Life 2 years Salvage value 0 Earnings before interest [r] ... Lihat dokumen lengkap

... 8. B is correct. The pecking order theory, suggests that managers choose methods of financing according to a hierarchy that gives first preference to methods with the least potential information content (internally ... Lihat dokumen lengkap

... LO.e: Explain effective corporate governance practice as it relates to the board of directors and evaluate strengths and weaknesses of a company’s corporate governance practice.. 11.Co[r] ... Lihat dokumen lengkap

... 21. Jim James is estimating the fair takeover price for Universal Industries’ proposed acquisition of CMX Manufacturers. James has gathered the acquisition price and relevant data of three recent acquisitions of ... Lihat dokumen lengkap

... 7. A is correct. The Gordon growth model cannot be applied when the growth rate (15% in this case) is higher than the cost of equity (11% in this case). Options B & C are incorrect, because payout rate is ... Lihat dokumen lengkap

... 2. A is correct. Homemade dividend is a concept used by MM in their argument for irrelevance of dividend policy. If a shareholder can do what a company does at no cost, i.e. create dividends by selling his shares, ... Lihat dokumen lengkap

... 35. Kayla Donovan, CFA, works as a portfolio manager for MacBrady Securities & Co. Some of her wealthy and large clients hold long positions on Swift Delivery, which is a courier service. After analyzing her ... Lihat dokumen lengkap

... 3. Analyst 1: While running a simulation, if there is a strong correlation across two inputs, we can pick only one of the two inputs. We can pick the input that has a bigger impact on value. Analyst 2: While ... Lihat dokumen lengkap

... Unethical behavior arises due to a potential conflict between the goals of the enterprise, or the goals of individual managers, and the fundamental rights of important stakeholders.. Sec[r] ... Lihat dokumen lengkap

... 58. An analyst wishes to determine the intrinsic value of a company that has goodwill and patents comprising more than 40% of total assets. Further, the analyst wants to focus on both the firm’s capacity to pay dividends ... Lihat dokumen lengkap

... 10. C is correct. Conditional convergence implies that convergence is conditional on the countries having the same saving rate, population growth rate and production function. If these conditions hold the model implies ... Lihat dokumen lengkap

... According to this standard, “members must deal fairly and objectively with all clients……” Therefore, McKenzie Walker needed to review its trade allocation procedures and set up policies [r] ... Lihat dokumen lengkap