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Mock Test 2 — Topic 5: Equity

Kết quả: 7/23 (30%) Nguồn: SAPP CFA1 Revision Mock Test 2 Liên kết: Equity

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Câu 94

Question 94: A portfolio manager creates an index for internal benchmarking, consisting of 1,000 sares of 20 different securities. This index is best characterized as a(n):

(A) price-weighted index.

(B) equal-weighted index.

(C) market-capitalization-weighted index.

Câu 96

Question 96: For a given company, holding other things constant, the company’s enterprise value multiple would most likely be increased by:

(A) lower taxes paid.

(B) a lower market value of debt.

(C) less cash on the balance sheet.

Câu 98

Question 98: A fundamental-weighted index is most likely to have a:

(A) price tilt.

(B) value tilt.

(C) momentum tilt.

Câu 101

Question 101: An analyst performing a PESTLE analysis of a firm is most likely to describe the:

(A) power of the firm’s suppliers.

(B) economic factors that affect the firm.

(C) threat of substitutes for the firm’s products.

Câu 106

Question 106: An analyst relies on summary forecasting measures including earnings per share and free cash flow metrics in estimating a company’s future financial data. Which of the following features is an advantage of using this forecasting approach?

(A) Efficiency.

(B) Transparency.

(C) Ease of auditing forecasts.

Câu 109

Question 109: Yvette Rambeau has sold short 300 shares of Precision Instruments at $35. She enters a good-til-cancelled buy order on 300 shares with a stop price of 40 and a limit of 42. The maximum loss Rambeau will potentially realize on this strategy, if the price of Precision Instruments rises above the stop price, is:

(A) $1,500.

(B) $2,100.

(C) unlimited.

Câu 113

Question 113: A highly competitive market with low pricing power is most likely to feature:

(A) limited substitutes.

(B) low barriers to entry.

(C) differentiated products.

Câu 117

Question 117: When performing an industry analysis, an analyst should use Porter’s five forces to:

(A) define the industry.

(B) analyze the industry structure.

(C) evaluate external influences on the industry.

Câu 121

Question 121: Agriff Company paid a dividend of $1.90 per share last year. Dividends are expected to grow at a constant rate of 6%. The risk-free rate is 5%, the market risk premium is 7%, and the beta of the common shares is 1.3. The value of the Agriff Compay’s common shares is closest to:

(A) $22.15.

(B) $23.45.

(C) $24.85.

Câu 127

Question 127: A trader has a position in Atlas Semiconductor and wants to sell the shares if the price falls to 72 or less. The order she should enter is a:

(A) limit sell order 72.

(B) stop sell order at 72.

(C) stop sell order at 72 with a limit of 72.

Câu 128

Question 128: Jones Company declares a 10% stock dividend. Smith Company carries out a 1-for-2 reverse stock split. Other things equal and ignoring transactions costs, what effects will these transactions have on shareholders’ equity?

(A) Both Jones and Smith will decrease their shareholders’ equity.

(B) Neither Jones nor Smith will change their shareholders’ equity.

(C) Jones will decrease its shareholders’ equity and Smith will increase its shareholders’ equity.

Câu 129

Question 129: For a profitable and rapidly growing firm, holders of preference shares are least likely to benefit from the firm’s growth if the preference shares are:

(A) convertible.

(B) cumulative.

(C) participating.

Câu 135

Question 135: Securities regulators determine that Pat Burowski gained $400,000 making consistent abnormal profits over a period of five years by acting on material nonpublic information. Based only on this, what can be concluded about the efficiency of the market in which Burowski was acting?

(A) It may be strong-form efficient.

(B) It is not strong-form efficient or semi-strong-form efficient.

(C) It is not strong-form efficient but it may be semi-strong-form efficient.

Câu 138

Question 138: Which of the following security indexes requires the most frequent reconstitution?

(A) Equal-weighted sector index of equity securities.

(B) Fundamental-weighted style index of equity securities.

(C) Value-weighted broad market index of fixed income securities.

Câu 143

Question 143: Holding other factors constant, a stock’s expected price-to-earnings ratio:

(A) increases as the expected dividend payout ratio decreases.

(B) decreases as the expected constant growth rate of dividends increases.

(C) decreases as the difference widens between the required rate of return on the stock and the expected constant growth rate of dividends.

Câu 144

Question 144: A financial intermediary that offers to buy an asset at a bid price and to sell the same asset at an ask price is best described as:

(A) a dealer.

(B) a broker.

(C) an arbitrageur.

Câu 151

Question 151: An investor who sells a stock short is most likely required to:

(A) lend the stock.

(B) make dividend payments.

(C) pay margin loan interest.

Câu 156

Question 156: A market in which prices are unbiased estimators of the intrinsic value of securities is said to be:

(A) operationally efficient.

(B) allocationally efficient.

(C) informationally efficient.

Câu 157

Question 157: Jack George, CFA, is evaluating Dunger, Inc., a waste management firm. The company has been experiencing a strong 15% growth rate, which is forecast to continue over the next three years before growth slows to a sustainable rate of 8%. The company recently paid a dividend of $0.50 per share. George has calculated a 10% weighted average cost of capital for Dunger. The firm has no debt. The company’s last reported trade was $35 per share. Based on the multi-stage dividend discount model, George should:

(A) not buy the stock.

(B) buy the stock because its intrinsic value is $38 per share.

(C) buy the stock because its intrinsic value is $41 per share.

Câu 167

Question 167: An analyst is most likely to use a free cash flow model to value an equity security of a firm that is:

(A) expected to grow at a constant rate.

(B) not expected to pay a dividend in the near future.

(C) in a period of rapid growth that is not expected to persist.

Câu 168

Question 168: Shares of Mitchell Company trade on an exchange. Mitchell wants to raise equity capital by issuing additional shares. An investment bank buys the new shares from Mitchell and sells them to interested buyers. This transaction is most accurately described as:

(A) underwriting an IPO.

(B) a best-efforts offering.

(C) a secondary issue of shares.

Câu 169

Question 169: Active portfolio management is unlikely to outperform passive portfolio management over time:

(A) if markets are weak-form efficient.

(B) if markets are semi-strong-form efficient.

(C) even if markets are not weak-form efficient.

Câu 180

Question 180: An index is composed of the following three stocks: December 31, 20X1 December 31, 20X2 Stock Price Shares Price Shares Perez $140 1,000,000 $154 1,000,000 Quinton $70 1,500,000 $70 2,000,000 Ranovich $90 2,000,000 $81 2,000,000 An equal-weighted index of the three stocks has a value on December 31, 20X1 = 100. The index value on December 31, 20X2 is closest to:

(A) 100.

(B) 102.

(C) 107.

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