[PDF] Top 20 CFA 2018 Quest bank Level 2 Corporate Finance Mergers Acquisitions QBank

... 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

... 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

... Food Tree is likely to have to evaluate potential acquisition targets that are temporarily experiencing financial distress or earnings problems that can be solved with an application of the Tree's financial strength and ... Lihat dokumen lengkap

... 1. Pharma Inc. is a large-cap company in the pharmaceutical industry. Rudy is an analyst at Bears Investment and is forecasting Pharma Inc.’s revenue for valuation purposes. He estimates the total market for drugs and ... 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

... 14. A is correct. In evaluating capital structure, a financial analyst must look at the capital structure of a company over time, the capital structure of competitors with similar business risk, and company-specific ... 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

... 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

... 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

... 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

... target level, new capital needs will be satisfied by issuing ...target level, the firm will raise new capital by retaining earnings or issuing new ... Lihat dokumen lengkap

... Rachel Moore, an analyst with Dawson Corporation, is discussing a potential capital project with her colleague, Phillip Cora. The project involves producing a new product that will be sold in discount retail stores. If ... Lihat dokumen lengkap

...  Two dividend-paying companies A and B directly compete with each other. Both are all-equity financed and have recent dividend payout ratios averaging 35 percent. The corporate governance practices at Company B ... Lihat dokumen lengkap

... smallest level of significance at which we can conclude that – ‘The quarters of the year effect is significant for explaining stock returns’ is ...5% level of significance we cannot conclude that the ... Lihat dokumen lengkap

... Example 3: Evaluate Projects Under Capital Rationing Ø Omni Corporation has a $3,000 capital budget Investment Outlay NPV Profitability Index Project A 1,650 $700 1.42 Project B 1,[r] ... Lihat dokumen lengkap

... 6. B is correct. A & C are requirements of the CFA Institute-ROS. B is not a correct requirement of the research objectivity standards because firms must establish polices/procedures that prohibit covered ... Lihat dokumen lengkap

... 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.[r] ... Lihat dokumen lengkap

... 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

... 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

... 2. A is correct. Trader violated Standard VI (A) – Disclosure of Conflicts, by not reporting her directorship, stock ownership and cash compensation that she received on account of her position as a director of ... Lihat dokumen lengkap