CFA一级模考.pdfVIP

CFA一级模考题 1 . A 91-day Treasury bill has a holding period yield of 1.5%. What is the annual yield of this T bill on a bond-equivalent basis? A) 6.02%. B) 6.65%. C) 6.24%. A was correct! BEY = 1.5% × (365/91) = 6.02%. 2. As the director of capital budgeting for Denver Corporation, an analyst is evaluating two mutually exclusive projects with the following net cash flows: Year Project X Project Z 0 -$100,000 -$100,000 1 $50,000 $10,000 2 $40,000 $30,000 3 $30,000 $40,000 4 $10,000 $60,000 If Denvers cost of capital is 15%, which project should be chosen? A) Project X, since it has the higher IRR. B) Neither project. C) Project X, since it has the higher net present value (NPV). B was correct! 1 2 3 NPV for Project X = - 100,000 + 50,000 / (1.15) + 40,000 / (1.15) + 30,000 / (1.15) + 4 10,000 / (1.15) = - 100,000 + 43,478 + 30,246 + 19,725 + 5,718 = -833 1 2 3 NPV for Project Z = - 100,000 + 10,000 / (1.15) + 30,000 / (1.15) + 40,000 / (1.15) + 4 60,000 / (1.15) = - 100,000 + 8,696 + 22,684 + 26,301 + 34,305 = -8,014 Reject both projects because neither has a positive NPV. 3. If a 10% increase in sales causes EPS to increase from $1.00 to $1.50, and if the firm uses no debt, then what is its degree of operating leverage? A) 4.7. B) 5.0. C) 4.2. B was correct! Upon first glance, it appears there is not enough information to complete the problem. However when one realizes DTL = (DOL)(DFL) it is possible to complete this problem. DTL = %∆EPS/%∆Sale