Arealestateinvestorisconcernedaboutrisinginterestratesanddecidestopaycashforapropertyinsteadoffinancingthetransactionwithdebt.Whatisthe<em>mostlikely</em>effectofthisstrategy? A: Inflationriskiseliminated. B: Riskofchanginginterestratesiseliminated. C: Riskisreducedbecauseoflowerleverage.
Arealestateinvestorisconcernedaboutrisinginterestratesanddecidestopaycashforapropertyinsteadoffinancingthetransactionwithdebt.Whatisthe<em>mostlikely</em>effectofthisstrategy? A: Inflationriskiseliminated. B: Riskofchanginginterestratesiseliminated. C: Riskisreducedbecauseoflowerleverage.
Whichof,hefollowingwill<em>mostlikely</em>resultinhigherearningsquality? A: Usingaggressivepensionassumptions. B: Structuringaleasetransactiontoavoidcapitalizationonthebalancesheet. C: Recognizingrevenueoncetheearningsprocessiscomplete.
Whichof,hefollowingwill<em>mostlikely</em>resultinhigherearningsquality? A: Usingaggressivepensionassumptions. B: Structuringaleasetransactiontoavoidcapitalizationonthebalancesheet. C: Recognizingrevenueoncetheearningsprocessiscomplete.
Asoutputquantitiesexpandinanindustrywithadownward-slopinglong-runindustrysupplycurve,whatisthe<em>mostlikely</em>long-runeffectontheequilibriumsellingpriceperunitoftheindustry'soutput? A: Increase,becauseofupwardpressureoninputprices. B: Decrease,becauseoflowerinputcostsperunitofoutput. C: Noeffect,becausesellingpriceisonlyaffectedintheshortrun.
Asoutputquantitiesexpandinanindustrywithadownward-slopinglong-runindustrysupplycurve,whatisthe<em>mostlikely</em>long-runeffectontheequilibriumsellingpriceperunitoftheindustry'soutput? A: Increase,becauseofupwardpressureoninputprices. B: Decrease,becauseoflowerinputcostsperunitofoutput. C: Noeffect,becausesellingpriceisonlyaffectedintheshortrun.
Aputoptionwithanexercisepriceof$45istradingfor$3.50.Thecurrentstockpriceis$45.Whatisthe<em>mostlikely</em>effectontheoption'sdeltaandgammaifthestockpriceincreasesto$50? A: Bothdeltaandgammawillincrease. B: Bothdeltaandgammawilldecrease. C: Onewillincreaseandtheotherwilldecrease.
Aputoptionwithanexercisepriceof$45istradingfor$3.50.Thecurrentstockpriceis$45.Whatisthe<em>mostlikely</em>effectontheoption'sdeltaandgammaifthestockpriceincreasesto$50? A: Bothdeltaandgammawillincrease. B: Bothdeltaandgammawilldecrease. C: Onewillincreaseandtheotherwilldecrease.
Gotham,whichpurchased35%ofKlestenResearchCenterin2005,restatesthelastthreeyearsoffinancialstatementstoaccountforthepurchase.Gothamhasnotelectedthefairvalueoption.InthefiscalyearendedDecember2008,whatisthe<em>mostlikely</em>effecttheKlesteninvestmentwouldhaveonGotham'sfinancialstatements? A: Decreaseincomeandassets. B: Increaseincomeandassets. C: Decreaseincomeandincreaseassets.
Gotham,whichpurchased35%ofKlestenResearchCenterin2005,restatesthelastthreeyearsoffinancialstatementstoaccountforthepurchase.Gothamhasnotelectedthefairvalueoption.InthefiscalyearendedDecember2008,whatisthe<em>mostlikely</em>effecttheKlesteninvestmentwouldhaveonGotham'sfinancialstatements? A: Decreaseincomeandassets. B: Increaseincomeandassets. C: Decreaseincomeandincreaseassets.
Aspartofitsworkingcapitalmanagementprogram,RotanCorporationhasanaccountspayablefinancingarrangementwiththeFirstNationalBank.ThebankpaysRotan'svendorswithin30daysoftheinvoicedate.Rotanreimbursesthebank90daysaftertheinvoiceisdue.Ignoringinterest,whatisthe<strong><em>mostlikely</em></strong>effectonRotan'soperatingcashflowandfinancingcashflowwhenthebankisrepaid? A: Bothwilldecrease. B: Neitherwilldecrease. C: Onlyonewilldecrease.
Aspartofitsworkingcapitalmanagementprogram,RotanCorporationhasanaccountspayablefinancingarrangementwiththeFirstNationalBank.ThebankpaysRotan'svendorswithin30daysoftheinvoicedate.Rotanreimbursesthebank90daysaftertheinvoiceisdue.Ignoringinterest,whatisthe<strong><em>mostlikely</em></strong>effectonRotan'soperatingcashflowandfinancingcashflowwhenthebankisrepaid? A: Bothwilldecrease. B: Neitherwilldecrease. C: Onlyonewilldecrease.
Aconsumerhasabudgetof120euros.Ifthepriceofmelonsincreasesfrom4eurosto5euros,andthepriceoffishincreasesfrom6eurosto10euros,theabsolutevalueoftheslopeofthebudgetlineforfishversusmelonswill<em><strong>mostlikely</strong>:</em> A: decreasefrom2/3to1/2. B: decreasefrom4/5to6/10. C: increasebecausethepriceofbothfishandmelonshasincreased.
Aconsumerhasabudgetof120euros.Ifthepriceofmelonsincreasesfrom4eurosto5euros,andthepriceoffishincreasesfrom6eurosto10euros,theabsolutevalueoftheslopeofthebudgetlineforfishversusmelonswill<em><strong>mostlikely</strong>:</em> A: decreasefrom2/3to1/2. B: decreasefrom4/5to6/10. C: increasebecausethepriceofbothfishandmelonshasincreased.
Oneyearago,thenominalexchangerateforUSD/EURwas1.300.Sincethen,therealexchangeratehasincreasedby3%.This<strong><em>mostlikely</em></strong>impliesthat: A: thenominalexchangerateislessthanUSD/EUR1.235. B: thepurchasingpoweroftheeurohasincreasedapproximately3%intermsof C: D: goods. E: inflationintheeurozonewasapproximately3%higherthaninflationintheUnitedStates.
Oneyearago,thenominalexchangerateforUSD/EURwas1.300.Sincethen,therealexchangeratehasincreasedby3%.This<strong><em>mostlikely</em></strong>impliesthat: A: thenominalexchangerateislessthanUSD/EUR1.235. B: thepurchasingpoweroftheeurohasincreasedapproximately3%intermsof C: D: goods. E: inflationintheeurozonewasapproximately3%higherthaninflationintheUnitedStates.