2023年内蒙古金融英语考试真题卷.docx
2023年内蒙古金融英语考试真题卷本卷共分为1大题50小题，作答时间为180分钟，总分100分，60分及格。一、单项选择题（共50题，每题2分。每题的备选项中，只有一个最符合题意） 1.Jack Saunders is analyzing Bareo Incorporated. an industrial conglomerate company. Saunders is estimating the intrinsic value for Barco Incorporated by forecasting the company's earnings per share and earnings multiplier. Each of the following attributes of Bareo will increase the company's earnings multiplier EXCEPT:（）A. Barco Incorporated has never had a restructuring charge in its history.B. Barco Incorporated's earnings move in tandem with overall economic growth.C. Barco Incorporated consistently generates free cash flow.2.A stock has a required rate of return of 15%, a constant growth rate of 10%, and a dividend payout ratio of 45%. The stock's price-earnings ratio should be:（）A. 3.0 times.B. 9.0 times.C. 4.5 times.3.Use the following data to analyze a stock's price earnings ratio (P/E ratio): The stock's beta is 1.2. The dividend payout ratio is 60%. The stock's expected growth rate is 7%. The risk free rate is 6% and the expected rate of return on the market is 13%. Using the dividend discount model, the expected P/E ratio of the stock is closest to:A. 8.1. B. 10.0. C. 12.0. 4.An analyst gathered the following information on Roan Mountain Amusement Park: Sales per share = $9.29 Earnings before interest, taxes, depreciation, and amortization (EBITDA) = 65% Interest expense per share = $1.26 Depreciation expense per share = $4.12 Marginal tax rate = 43% Roan Mountain's expected earnings per share is closest to:（）A. $0.38.B. $0.22.C. $0.04.5.All else equal, which of the following would most likely cause a firm's price-earnings ratio to decline（）A. The level of inflation is expected to decline.B. The dividend payout ratio increases.C. The yield on Treasury bills increases.6.Mamford Industries has solid earnings that are projected to grow steadily into the foreseeable future. Which of the following is TRUE（）A. Mamford is a growth company.B. Mamford's stock is considered a growth stock.C. Mamford is a growth company and its stock is a growth stock.7.An analyst gathered the following information for a company: Risk-free rate = 6.75% Expected market return = 15.00% Beta = 1.30 Dividend payout ratio = 55% Profit margin = 10.0% Total asset turnover = 0.75 Assets to equity ratio = 2.00 What is the firm's sustainable growth rate（）A. Tax rate needed to determine answer.B. 6.75%.C. 15.00%.8.Assume that a firm has an expected dividend payout ratio of 20%, a required rate of return of 9% , and an expected dividend growth of 5%. What is the firm's estimated price-to-earnings (P/E) ratio（）A. 5.00.B. 10.00.C. 20.00.9.Assuming that a company's ROE is 12% and the required rate of return is 10%, which of the following would most likely cause the company's P/E ratio to rise（）A. The inflation rate falls.B. The firm's dividend payout rises.C. The firm's ROE falls.10.All else equal, an increase in a company's growth rate will most likely cause its P/E ratio to:（）A. increase.B. not change.C. decrease.11.All of the following factors affects the firm's P/E ratio EXCEPT:（）A. the expected interest rate on the bonds of the firm.B. growth rates of dividends.C. expected dividend payout ratio.12.Use the following information to determine the value of River Gardens' common stock: Expected dividend payout ratio is 45 percent. Expected dividend growth rate is 6.5 percent. River Gardens' required return is 12.4 percent. Expected earnings per share next year are $3.25.（）A. $27.25.B. $24.80.C. $19.67.13.A company has a "0" earnings retention rate, the firm's P/E ratio will equal:（）A. 1/k.B. D/P+g.C. k+g.14.Which of the following could be a growth stock（）A. Expected return = required return.B. Expected return required return.C. Expected return required return.15.Which of the following statements about company and stock analysis is least likely correct（）A. A growth stock always indicates a growth company.B. A growth company's stock can have below-average risk-adjusted returns.C. A weak firm can experience temporary above-average risk-adjusted return.16.An analyst gathered the following financial information about a firm: Estimated EPS $10 per share Dividend payout ratio 40% Required rate of return 12% Expected long-term growth rate of dividends 5% What would the analyst's estimate of the value of this company's stock be（）A. $33.B. $57.C. $80.17.Which of the following statement is least likely correct A speculative:（）A. stock is usually under priced.B. company has highly risky assets.C. stocks have a slight probability of an enormous return.18.Which of the following statements about stock valuation is least likely correct（）A. If estimated value the market price, buy the stock : it's under priced.B. If the expected rate of return the required rate, buy the stock; it's under priced.C. If the expected rate of return the required rate, don't buy the stock; it's under priced.19.A defensive stock is best characterized as:（）A. being heavily influenced by aggregate business activity.B. generally retaining a large portion of earnings.C. having low systematic risk.20.The price to book value ratio (P/BV) is a helpful valuation technique when examining firms:A. with the same stock prices.B. with different production methods.C. that hold primarily liquid assets.21.An analyst gathered the following information about an industry. The industry beta is 0.9. The industry profit margin is 8%, the total asset turnover ratio is 1.5, and the leverage multiplier is 2. The dividend payout ratio of the industry is 50%. The risk-free rate is 7% and the expected market return is 15%. The industry P/E is closest to:（）A. 12.00.B. 14.20.C. 22.73.22.An increase in a firm's stock price will, all else equal, cause the price to cash flow (P/CF) ratio to:A. decrease. B. remain the same. C. increase. 23.Current dividend per share ( Do) paid on the company common stock $5.00 Required rate of return on the company common stock 15.5% Expected constant growth rate in earnings and dividends 7.5% The value of a share of the company's stock and the leading price/earnings (P/E) ratio, respectively, are closest to: Value of stock Leading P/E ration（） A. $40.13 7.5 B. $67.19 8.0 C. $67.19 7.5A. B. C. 24.Peter Welsh, CFA, gathered the following information from a company's most recent financial statements ( U.S. $ in millions):Welsh also determined that the company uses the LIFO inventory method, but most companies in the industry use the FIFO method. The footnotes to the financial statements indicate that if the company had used the FIFO method, the inventory balance would have been $ 50 million higher than the amount reported on the company's most recent financial statements. If the company's common stock is currently selling for $70 per share, the most appropriate price to book value ratio to use in valuing the company is:()A. 2.22.B. 2.03.C. 2.16.25.General, Inc. , has net income of $ 650000 and one million shares outstanding. The profit margin is 6 percent and General, Inc. , is selling for $ 30.00. The price/sales ratio is equal to:A. 2.77. B. 10.83. C. 0.06. 26.Most of the differences among companies with respect to quality of earnings are addressed when companies are compared using:A. price to cash flow ratios but not price to earnings ratios.B. price to earnings ratios but not price to cash flow ratios.C. either price to cash flow ratios or price to earnings ratios.27.Given the following information, compute price/sales. Book value of assets = $550000 Total sales = $200000 Net income = $20000 Dividend payout ratio = 30% Operating cash flow = $40000 Price per share = $100 Shares outstanding = 1000 Book value of liabilities = $500000A. 2.00X. B. 2.50X. C. 0.50X. 28.Which of the following accounting variables is least likely to be manipulatedA. Net income. B. Depreciation expense. C. Sales. 29.All of the following are advantages of using price/sales (P/S) multiple EXCEPT:（）A. Sales figures are not as easy to manipulate as earnings and book value, which are significantly affected by accounting conventions.B. P/S multiples are more reliable because sales data cannot be distorted by management.C. P/S multiples provide a meaningful framework for evaluating distressed firms.30.An argument against using the price to cash flow (P/CF) valuation approach is that:（）A. cash flows are not as easy to manipulate or distort as EPS and book value.B. non-cash revenue and net changes in working capital are ignored when using earnings per share (EPS) plus non-cash charges as an estimate.C. price to cash flow ratios are not as volatile as price-to-earnings (P/E) multiples.31.The current price of XYZ Inc. is $40 per share with 1000 shares of equity outstanding. Sales are $ 4000 and the book value of the firm is $ 10000. What is the price/sales ratio of XYZ Inc.（）A. 0.010.B. 10.000.C. 4.000.32.One disadvantage of using the price/sales (P/S) multiple for stock valuation is that:（）A. profit margins are not stable over time.B. profit margins are not consistent across firms within an industry.C. sales are relatively stable and might not change even though earnings and value might change significantly.33.Which of the following is a disadvantage of using price-to-sales (P/S) multiples in stock valuationsA. P/S multiples are more volatile than P/E multiples.B. The use of P/S multiples can miss problems associated with cost control.C. P/S multiples are not available for all firms, unlike the P/E ratio.34.One advantage of price/sales (P/S) multiples over price to earnings (P/E) and price-to-book value (PBV) multiples is that :（）A. P/S can be used for distressed firms.B. Regression shows a strong relationship between stock prices and sales.C. P/S is more volatile than P/E multiples and, therefore, more reliable for use in valuation.35.Dot-com companies are often valued by applying the （） ratio.A. Price/Sales.B. Price/Earnings.C. Price/Cash Flow.36.One advantage of using price-to-book value multiples for stock valuation is that:（）A. most of the time it is close to the market value.B. it is a stable and simple benchmark for comparison to the market price.C. accounting standards for assets are always consistent across firms.37.Bill Yates, CFA, is evaluating NanoSoft, Inc. , a high tech company with impressive sales growth but no earnings. Yates' supervisor, a firm believer in relative valuation, instructs him to use the price-to-sales multiple to determine the value of NanoSoft. In an e-mail to his supervisor, Yates weighs the pros and cons of the price-to-sales multiple. All of his statements about price-to-sales ratios are correct EXCEPT:（）A. profit margin is a key variable not considered.B. price-to-sales is a poor valuation technique for growth companies.C. sales growth drives all subsequent earnings and cash flows.38.All of the following variables affect the price-to-cash flow ratio EXCEPT:（）A. dividend rate.B. depreciation rate.C. growth rate.39.All of the following statements are true about the price-to-sales ratio EXCEPT:（）A. users of the ratio believe that sales information is subject to less manipulation than any other data item.B. price-to-sales ratio is fairly constant by industry.C. advocates of the ratio believe that strong sales growth is a requirement for a growth company.40.Which of the following is NOT an advantage of using price-to-book value multiples in stock valuation（）A. Book value provides a relatively stable, intuitive measure of value.B. P/B ratios can be compared across similar firms if accounting standards are consistent.C. Book values are very meaningful for firms in service industries.41.Suppose a stock has a dividend payout ratio of 40 percent, a required rate of return of 15 percent and an expected growth rate of dividends of 10 percent. What is the P/E ratio of the stock（）A. 2.667.B. 1.5.C. 8.0.42.All of the following are drawbacks to using price-to-book value (P/BV) as a valuation technique EXCEPT:（）A. P/BV valuation may give a misleading comparison of different types of business models.B. P/BV is an unstable measure of valuation.C. P/BV valuation does not adequately account for the positive impact of RD expenditures.43.Which of the following is most accurate With respect to accepting gifts from clients, CFA members:A. may not accept business-related entertainment.B. may accept modest giftsbelow $ 100 per gift without any disclosure.C. must disclose to their employers benefits previously accepted from clients if notification is not possible prior to acceptance.44.Emilie Rome. CFA, is a stock broker in Miller investment consulting firm. Charlotte Everett, one of Rome's clients is a retiree living on income from her pension plan with below-average risk tolerance. Everett asks Rome to buy a structured product consisting of call and put stock options. Rome tells Everett that the product has significantly high risk and low income. However, Everett still confirms the order, and Rome executes the trade. Has Davis most likely violated the Standards of Professional ConductA. No.B. Yes, relating to suitability.C. Yes, relating to loyalty, prudence, and care.45.With respect to the Standards of Professional Conduct relating to diligence and reasonable basis, which of the following statements is least accurate A member needs to:A. ensure that his firm has standardized criteria for reviewing external advisers.B. have an understanding of the parameters used in the model or quantitative research.C. dissociate from team research reports that do not reflect the member's opinion.46.According to the Practice of Handbook, when an inquiry into a member's professional conduct is initiated, which of the following most likely initially conducts the investigation that may include requesting a written explanation form the member or candidateA. The CFA Institute Designated Officer.B. The Disciplinary Review Committee.C. The CFA Institute Professional Conduct staff.47.Timothy Holt, CFA, is a portfolio manager for the Toro Aggressive Growth Fund, a large mutual fund with an aggressive-growth mandate in Fechtman Investments. While having lunch with his colleagues, Holt overheards the manager of
