Title Equity - Question.pdf ✅

CFA Program Level I for February 2024 1 Equity 1/ A firm reports negative earnings for the year just ended. The price multiple of the firm's stock that is least likely to be meaningful is: A. trailing price to earnings B. price to cash flow C. leading price to earnings 2/ Which of the following dates in the dividend chronology can fall on a weekend? A. The payment date B. The record date. C. The ex-date 3/ An investor writes a put option on FTSE 100 Index futures. Which of the following best describes the investor's postion with respect to the put contract and her exposure to the underlying index future, respectively? A. Long short B. Short, long C. Short, short 4/ Which of the following financial intermediaries is most likely to provide liquidity service to is clients? A. Brokers B. Dealers C. Exchanges 5/ The value effect market-pricing anomaly most likely occurs when stocks that have below- average price-to-earnings and market-to-book ratios, as well as above-average dividend yields, consistently outperform:


CFA Program Level I for February 2024 4 14/ Which of the following statements about forecasting selling, general and administrative (SG&A) expenses is most accurate? A. General corporate costs are mostly variable costs B. Seling and distribution expenses can be modeled as a percentage of sales C. Overall SC&A expenses heve a more direct relationship with revenues then cost of goods sold 15/ Preference shares most likely rank above common shares with respect to A. voting nghts B. sharing in the operating performance of the compary C. the distribution of the company's net assets upon liquidation 16/ A free-cash-flow-in-equty model is a(n) A. multiplier model B. present value model C. asset-besed valuation model 17/ An analyst gathers the following information about an equal-weighted index composed of three securities Security Beginning of Period Price End of Period Price Total Dividends 1 20 18 1 2 10 15 3 3 15 0 --- The price retum of the index is closest to A. 20%. B. 27% C. 38%.