2012年金融专业英语证书考试FECT模拟试题及答案-9.docVIP

2012年金融专业英语证书考试FECT模拟试题及答案-9 SECTION ONE (Compulsory)：Answer all ten questions in this section. Each question carries 1 mark. 　　1. Multiple-choice questions: from the following four options, select a correct and fill in its labeling the brackets. (A total of 10 points) 　　1. Chu Wang, CFA, gathered the following data to estimate the implied growth rate of dividends for Shenghai Toys Co. to use as an input for valuing the company’s common stock. 　　Return on Assets 10% 　　Profit Margin 5% 　　Total Assists CNY 50 million 　　Debt Ration 40% 　　Payout Ration 25% 　　Wang’s estimate of Shenghai Toys’ implied growth rate would be closest to: () 　　A. 4.17%. 　　B. 6.25%. 　　C. 12.50%. 　　D. 18.75%. 　　2. If market interest rates rise, the price of a callable bond, compared to an otherwise identical option-free bond, will most likely: () 　　A. Increase by less than the option-free bond. 　　B. Decrease by less than the option-free bond. 　　C. Decrease by more than the option-free bond. 　　D. Decrease by the same amount as the option-free bond. 　　3. Strongsville Fabricators Inc. uses the FIFO method of inventory valuation. Assuming a rising costs environment and other factors held constant, Strongsville’s price-to-earnings and price-to-book multiples relative to those for another company that uses the LIFO method of inventory valuation would be: () A. Answer A. 　　B. Answer B. 　　C. Answer C. 　　D. Answer D. 　　4. Economic growth is measured by a positive change in which of the following? () 　　A. The money supply. 　　B. The Producer Price Index. 　　C. The Gross Domestic Product. 　　D. The balance of payments. 　　5. Five years ago, the DCA Corporation issued 20-year bonds with a coupon rate of 12%. If the investors’ required rate of return (IRR) on these bonds is currently 9%, the bonds will be priced: () 　　A. Below par. 　　B. Above par. 　　C. Above and below par. 　　D. At par. 　　E. As perpetuity. 　　 6. Which of the following is NOT true? () 　　 A. If interest rates rise