An analyst gathered the following information about a company whose fiscal year ends on 31 December:·Net income for the year was $10.5 million·Preferred stock dividends of $2 m
A. $0.35
B. $0.37
C. $0.39
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A company is evaluating an independent investment project that has the same risk as the company. If the net present value of the project is calculated to be zero the internal rate of return associated
A. Overstatedbecauseofthereinvestmentrateassumption.
B. Understatedbecauseofthereinvestmentrateassumption.
C. Equaltothecompanysweightedaveragecostofcapital.
Would credit spreads most likely widen during an economic:Contraction? Expansion?
A. Yes No
B. No Yes
C. No No
An analyst does research about survivorship bias and its impact to measurement ratios. Hedge fund databases and indexes that suffer from survivorship bias because of a failure to comply with performan
A. Sharperatios
B. Standarddeviationofreturns
Correlationswithreturnsfromcommonstocks
An analyst notes that the yield on a 10-year corporate bond is 7.32% and the yield on a 10-year government bond is 5.60%. The relative yield spread and yield ratio, respectively, for the two bonds are
A. 30.7% 0.68
B. 30.7% 1.31
C. 46.4% 0.68