Question 76
Regarding additional compensation arrangements, when is it appropriate to accept gifts, benefits, compensation, or consideration that competes with a member's employer?
Question 77
Which of the following statements about the futures market are true?
I). Allows investors to hedge
II). Allows investors to speculate
III). Helps evaluate prices in the spot market
Question 78
Asset-based valuations don't work well for companies with:
I). high proportion of intangible assets.
II). high proportion of current liabilities.
III). significant property, plant and equipment.
Question 79
Which of the following statements is/are TRUE?
I). The stated interest rate is a quoted interest rate that does not account for compounding within the year.
II). The periodic rate is the quoted interest rate per period and is equal to the stated annual interest rate divided by the number of compounding periods per year.
III). The effective annual rate is the amount to which a unit of currency will grow in a year with interest on interest included.
Question 80
BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding at the beginning of the year:
6.125% convertible bond, convertible into 33 shares of common stock. Issue price $1,000, 100
*
bonds outstanding.
6.25% convertible preferred stock, $100 par, 3,710 shares outstanding. Convertible into 3.3
*
shares of common stock, Issue price $100
8% convertible preferred stock, $100 par, 5,604 shares outstanding. Convertible into 5 common
*
shares, Issue price $80
12,380 warrants are outstanding with an exercise price of $40. Each warrant is convertible into 1
*
share of common. Average market price of common is $53.00 per share. Common shares outstanding at the beginning of the year were 45,888.Net Income for the period was $200,000, while the tax rate was 40%.
What were the Diluted EPS for the year?