A portfolio manager is required to sell 31,250 shares of XYZ Inc. in two months. She is concerned the price of XYZ shares will decline during the 2-month period, so she enters into a deliverable equit
A. Pay EUR 687,500 to the dealer.
B. Receive EUR 4,312,500 from the dealer.
C. Receive EUR 5,000,000 from the dealer.
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An analyst can most accurately identify a LIFO liquidation by observing a(n):
A. Increase in gross margin
B. Decrease in the LIFO reserve
Change in inventory out of line with change in sales
The yield on a U.S. Treasury STRIPS security is also known as the Treasury:
A. Spot rate.
B. Yield spread.
C. Forward rate.
Consider a 5-year option-free bond that is priced at a discount to par value. Assuming the
discount rate does not change, one year from now the value of the bond will most likely:Consider a 5-year option-free bond that is priced at a discount to par value. Assuming the
discount rate does not change, one year from now the value of the bond will most likely:
A. increase.
B. decrease.
C. Stay the same.
Which of the following is the least appropriate method for an external analyst to estimate a companys target capital structure for determining WACC? Using the:
Averages of comparable companies capital structure.
B. companys current capital structure,at book value weights.
C. Statements made by the companys management regarding capital structure policy.