[PDF] Top 20 CFA 2018 Level 2 Ethics Quest bank Glenarm Company

... to Glenarm and not obtaining written consent from ...to Glenarm his independent practice which could compromise his independence and objectivity or interfere with his duties to his current employer and ... Lihat dokumen lengkap

... 5. C is correct. When there are no gains from synergy or other factors, share prices are not expected to increase and an acquirer trading at a higher P/E multiple purchases a company at a lower P/E multiple, its ... Lihat dokumen lengkap

... 13. C is correct. Repricing of stock options is when the company with the board’s approval adjusts downward the exercise price of option grants relative to current price of the stock. This typically happens when ... Lihat dokumen lengkap

... a company over time, the capital structure of competitors with similar business risk, and company-specific factors, such as the quality of corporate governance, that may affect agency costs among other ... Lihat dokumen lengkap

... 16. B is correct. If decisions are based on accounting income rather than cash flows, then the projects chosen are not in the long-run economic interest of the company. Underestimating or overestimating overhead ... 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

... 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

... 9. Belma Corp. has a year-end book value per share of $18, and cost of equity of 8%. The company ’s ROE of 12% is expected to continue for the foreseeable future. Earnings are expected to grow at 10% and the ... Lihat dokumen lengkap

... 1. B is correct. Bottles Co. ’s P/E multiple based on market price is less than the average industry P/E, hence the company is undervalued based on method of comparables. Its P/E based on market price (i.e. ... Lihat dokumen lengkap

... 19. A company is expected to experience high annual growth rate of 15% as long as its product is covered by a patent. The patent is due to expire in 5 years after which growth is expected to fall abruptly to an ... Lihat dokumen lengkap

... 13. Sonia Mirza, a quantitative analyst, is assigned the task of calculating the maximum price an investor would be willing to pay for a Matsi Industry bond when considering credit risk. Mirza assumes continuous ... Lihat dokumen lengkap

... target company A of $50 million and in company B of $50 million at the beginning of year ...in company A and realizes a loss of $5 million in company ... Lihat dokumen lengkap

... 12. Brad Newman, chief credit analyst is interviewing Penny Kimmel, an analyst. Newman questions Kimmel, “Suppose an investor sells five-year CDS protection on Company X with the premiums paid quarterly over the ... Lihat dokumen lengkap

... 16. Bellavine Co. generated FCFE of $1,800 last year. The cash flow is expected to grow at 8% for the next three years after which it will grow at 3% annually. The market value of the company ’s debt outstanding ... Lihat dokumen lengkap

... 14. A is correct. Under the tax imputation system if the shareholder’s marginal tax rate is higher than the company’s, the shareholder pays the difference between the two rates. The effective tax rate is then the tax ... 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

... calculated can be used to estimate the required rate of return. A is incorrect because when the expected return is greater than the required return the stock is undervalued. B is incorrect because the required return is ... Lihat dokumen lengkap

... 8. Cannon Co. is a small private leather goods’ manufacturer. An analyst estimates that the beta of similar public companies is 1.1, the risk free rate is 4% and market risk premium is 6%. In addition, the small stock ... Lihat dokumen lengkap

... 5. B is correct. The increase in margins is due to lower raw material costs and higher per unit price. This does not constitute economies of scale as economies of scale occur when the company ’s average costs per ... Lihat dokumen lengkap

... 20. According to the Standards of Practice Handbook, a member has to protect the interests of his firm, refraining from any conduct that would deprive it of profit, or his skills and ability. If the member fails, he ... Lihat dokumen lengkap