All other things being equal, which one of the following bonds has the greatest volatility?
A. 10-year,8% coupon.
B. 15-year,10% coupon.
C. 15-year,8% coupon.
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A companys shares are currently trading at $20 per share and its P/E ratio is 28. If it borrows money to repurchase shares at a after-tax cost of debt of 6 percent, its EPS will most likely to:
A. Increase.
B. Decrease.
C. Remainthesame.
Two manufacturing companies operating in the same industry have different net fixed asset turnover ratios. The difference most likely occurs because the company with the:
A. Higherratiowasoperatingwitholderequipmentthathadalowcostbasis.
B. Higherratiorecentlyinvestedasubstantialamountinnewplantandequipment.
C. Lowerratiowasmoreefficientinmanaginginventory.
On January 1st of the year, an investor purchases $100,000 in par value of a new Treasury Inflation Protection Security (TIPS) issue that has a 2.5% coupon rate. The annual rate of inflation over
A. $1,275
B. $1,294
C. $1,339
With respect to the fundamentals of compliance with the GIPS standards, do total firm assets include the market value of all:Discretionary assets but not fee-paying assets but notnondiscreti
A. No No
B. No Yes
C. Yes No