题目内容

An investor fears that economic conditions will worsen and the market prices of her portfolio of investment-grade corporate bonds will decrease more than her portfolio of government bonds. The investo

A. Default risk.
B. Downgrade risk.
Credit spread risk.

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Which of the following statements is most accurate regarding cash flow statements prepared under IFRS and U.S. GAAP?

A. Under U.S. GAAP,bank overdrafts should be classified as a financing cash flow
B. Under IFRS,interest paid can be reported either as an operating or an investing cash flow.
C. Both the direct and indirect formats of cash flow statements are allowed under IFRS and U.S. GAAP,but indirect is encouraged under IFRS only.

Suppose inflation increases due to increases in government spending and a reduction in taxes. Such inflation is best described as:

A. cost-push inflation
B. demand-pull inflation
C. Monetarist cycle theory.

When interest rates fall, the price of a callable bond will:

A. Fall less than an option-free bond.
B. Rise less than an option-free bond.
C. Rise more than an option-free bond.

The cost of which source of capital most likely requires adjustment for taxes in the calculation of a firms weighted average cost of capital?

A. Bonds
B. Common stock
C. Preferred stock

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