[PDF] Top 20 CFA 2018 Quest Bank R38 Dividends and Share Repurchases Basics Q Bank

... 5. Alan D’Cruz owns 50,000 shares of Matrix Manufa cturing Company at the prevailing market price of Rs.149.5 per share. Matrix declares a 15% stock dividend to all shareholders as per record as of 31 st December. ... 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

... 19. NIT fund manager is required to sell 35,000 shares of NRL in three months. He is concerned the price of NRL shares will decline during the 3-month period, so he enters into an equity forward contract with HBL to sell ... Lihat dokumen lengkap

... out dividends only if more earnings are available than are needed to support the optimal capital ...a share repurchase program or with an extra dividend when times are ...Stock repurchases allow ... Lihat dokumen lengkap

... 1. An analyst gathers the market capitalization figures of firms comprising the S&P 500 and then ranks them from highest to lowest market capitalization. She then assigns the number 1 to the group with the ... Lihat dokumen lengkap

... 11. Consider two countries, X and Y. Country X is a closed country with a relative abundance of labor and holds a comparative advantage in the production of leather. Country Y has a relative abundance of ... Lihat dokumen lengkap

... 45. C is correct. Because interest is effectively deferred until maturity, a zero-coupon bond can be thought of as a deferred coupon bond. Options A and B are incorrect because both step-up bonds and ... Lihat dokumen lengkap

... momentum and earn abnormal profits, then this anomaly contradicts the weak form of the efficient market hypothesis because it represents a pattern in prices that can be exploited by simply using historical price ... Lihat dokumen lengkap

... 19. Eritba is a small island nation in the Pacific where laws and regulations exist for calculation and presentation of investment performance. According to the GIPS standards, what laws are firms in Eritba ... Lihat dokumen lengkap

... outlay and additional cash flows are not very large, this scenario is ...1 and 2 is 50 each and the cash flow in Year 3 is ...-10.97, and an IRR of ... Lihat dokumen lengkap

... 8. C is correct. Both statements are correct. The economy may face shortages because the demand for factors of production exceeds the supply. Furthermore, companies might overinvest in production capacity which can ... Lihat dokumen lengkap

... 10. C is correct. Under the International Accounting Standards Board’s Conceptual Framework, verifiability is the qualitative characteristic that means that different knowledgeable and independent users would ... Lihat dokumen lengkap

... 25. B is correct. Held-for-trading and available-for-sale securities are carried at market value, whereas held-to-maturity securities are carried at amortized cost. If the investment is reclassified as ... Lihat dokumen lengkap

... 1. Angels Corporation incurs two types of depreciation expenses. Depreciation is charged on the factory machinery used for production purposes and for office equipment. The accountant of the firm presents both ... Lihat dokumen lengkap

... $50,000 and increase inventory by ...$25,000, and increase either cash (if cash collected in the same accounting period) or accounts receivable (if sold on credit) by ... Lihat dokumen lengkap

... central bank is able to adjust monetary policy to maintain price ...central bank to exercise independent monetary policy to buffer its economy from inflation or deflation of the target ... Lihat dokumen lengkap

... 33. B is correct. The capitalization will result in an asset with a positive tax base and zero carrying value. Amortization means that the difference is temporary. A deferred tax asset is created since there is a ... Lihat dokumen lengkap

... 19. Alex, a fund manager at Morgan Investment Bank manages Anil‟s portfolio. At the beginning of the year, the portfolio had a value of $50,000 and at the end it was $45,000. Alex‟s performance is measured ... Lihat dokumen lengkap

... 25. Using the sample results given below, drawn as 25 paired observations from their underlying distributions, test if the mean returns of the two portfolios differ from each other at the 1% level of statistical ... Lihat dokumen lengkap

... 21. B is correct. Point estimates are not as reliable as confidence interval estimates. A conservative approach to confidence intervals relies on the t-distribution rather than the normal distribution, and use of ... Lihat dokumen lengkap