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Question 1

Sorry, that's incorrect.
The Correct Answer is Defensive.
A stock with a negative beta is best classified as:

Question 2

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The Correct Answer is Are more stable than earnings.
Which of the following is the best rationale for using the price-to-sales ratio in equity valuation? Sales:

Question 3

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The Correct Answer is A cash flow earnings index consistently below 1.0.
Which of the following most likely indicates a low quality of earnings?

Question 4

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The Correct Answer is Using elements of an employee's research after that employee has left the firm.
A member is not required to acknowledge sources of information used in a research report when the member is:

Question 5

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The Correct Answer is Decrease.

A company with a price-to-earnings ratio (P/E) of 12 and a before-tax borrowing rate of 12% plans to buy back shares using borrowed funds. All else being equal, if the company's marginal tax rate is 20%, after the repurchase the company's earnings per share (EPS) will most likely:

Question 6

Sorry, that's incorrect.
The Correct Answer is Both to loyalty and to record retention.

Akiki Ono, CFA, is a research analyst. Ono recently left her analyst job at Ichiban Securities (Ichiban) and started a new position as an analyst for a competing firm. Because Ono did not receive permission from Ichiban to take her research records, she recreates much of her research from memory and from copies of her research notes she finds on her home computer. Ono has most likely violated the Standard(s) relating:

Question 7

Sorry, that's incorrect.
The Correct Answer is Unbilled revenue.

An increase in which of the following accounts will affect total comprehensive income?

Question 8

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The Correct Answer is Balance sheet and the income statement.

The statement of retained earnings most likely shows the linkage between the:

Question 9

Sorry, that's incorrect.
The Correct Answer is Average of comparable companies' weights of debt.

When a publicly traded company's target capital structure is unknown, which of the following is the best proxy for the weight of debt when estimating the WACC?

Question 10

Sorry, that's incorrect.
The Correct Answer is Large payouts tied to specific strategic milestones.

Which of the following features of a remuneration policy is most likely considered a warning signal that may require particular scrutiny?