Jane Smith has been granted permission to use the CFA designation. Jane has NOT paid her annual
CFA Institute dues. Which of the following statements regarding Jane's use of the CFA designation are correct?
Analysts should monitor the actions of standard setters and regulators because
The following statements regarding the NPV rule and the rate of return rule are true except:
The joint probability of three events is given as 35%. Their individual probabilities are 50%, 60%, and
8 0%. What should be their joint probability if they are independent?
An analyst has gathered the following information about Artcraft, Inc. for the year 2001:
Net income of $30,000.
*
5,000 shares of common stock and 500 shares of 8 percent, $90 par convertible preferred stock
*
outstanding during the whole year.
Each share of convertible preferred can be converted into 4 shares of common stock.
*
Last year, Artcraft issued at par, $60,000 of par, 6.0 percent convertible bonds, with each of the
*
6 0 bonds convertible into 110 shares of the Artcraft common stock.
If Artcraft's effective tax rate is 40 percent, what will Artcraft report as diluted earnings per share (EPS) for
2 001?
