[PDF] Top 20 CFA 2018 Quest bank Level 2 Corporate Finance Corporate Performance, Governance Business Ethics QBank

... 15. B is correct. Friedman’s basic position is that the only social responsibility of a business is to increase profits, but the company has to stay within the rules of law. According to him businesses should not ... Lihat dokumen lengkap

... 4. A is correct. McKenzie Walker violated Standard III(A) – Loyalty, Prudence, and Care. Members and candidates are expected to place their clients’ interests above their employer’s or their own and ensure that their ... Lihat dokumen lengkap

... different business divisions is inefficient since the overall value does not increase, and that the company may have diversified in order to hide poor operating ... Lihat dokumen lengkap

... 86. Alex Karachanis, CFA, is an independent financial advisor with a roster of over 100 clients. Along with advisory services, he also facilitates in executing the trades for his clients and manages their ... Lihat dokumen lengkap

... 3. A is correct. The Standard V(B) - Communication with Clients and Prospective Clients protects investors by providing them with sufficient knowledge about the construction of portfolios/funds, and the requisite ... Lihat dokumen lengkap

... McMillan Corporate Services. Founding the business was relatively straightforward and over the last 20 years, the expertise provided by Tormey and Arnett have been key to making McMillan a ...the ... Lihat dokumen lengkap

... 28. A member gets verbal consent from his employer before accepting a 7-day vacation for him and his family at his client’s private villa in southern Spain, including travel in a private jet as it is in a remote ... 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

... 4. Alpine Pharma has shown poor performance resulting in accumulation of tax losses over the last two years. Care Pharmaceuticals, a large-cap company in the same industry announces its intention to acquire ... Lihat dokumen lengkap

... 5. B is correct. The disadvantage with a corporation is the difficulty that shareholders have in monitoring management and the firm’s operations. A sole proprietor directly oversees day- to-day business. However, ... Lihat dokumen lengkap

... similar business risk, and company-specific factors, such as the quality of corporate governance, that may affect agency costs among other ... 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

... 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

... substandard performance, in other cases sales and profits do not appear to be the root ...studying finance at the University of Queensland, that a Nobel Prize was awarded for one of the theories in the ... 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

... 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

... 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

... 4. B is correct. Preston Partners did not have proper supervisory procedures to ensure that those under its supervision complied with applicable laws, rules and the CFA Institute Standards. Preston Partners had ... Lihat dokumen lengkap

... Cost of Capital Equity Preferred stock Debt Calculation and interpretation of WACC Impact of taxes on cost of capital Capital appreciation Variable dividend Dividend is a function [r] ... Lihat dokumen lengkap

... 19. A is correct. Since growth is expected to decline to a stable long-term rate abruptly, the two stage DDM is most suitable. H-Model is not applicable because abnormal growth rate in Stage 1 abruptly declines to mature ... Lihat dokumen lengkap