An analyst has gathered the following data about a company:
COGS: $200 million. Ending accounts payable: $50 million. Assume there are 365 days in a year, what is the measure of days sales in payables (DSP)?

• A.87.35.
• B.91.25.
• C.96.75.

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Which of the following statements is least accurate with respect to the rationales and drawbacks of using the price/earnings (P/E) ratio for valuation purposes?

• A.When earnings are negative, P/E will be meaningless and thus should not be used.
• B.Earnings influence valuations heavily. Differences in P/E ratios simply reflect fundamental differences between companies and thus the ratio should be used.
• C.Some stocks are illiquid and thus its price might not be efficient, consequently P/E should not be used.

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Which of the following is false?

• A.The probabilities for different possible values of a random variable with a discrete uniform distribution are equal.
• B.A random variable with a binomial distribution can take one of two possible values.
• C.The probabilities for different possible values of a random variable with a continuous uniform distribution are equal.

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Which type of ADR can be used if a foreign company wants to raise capital in the US through a public offering of the ADRs?
I). Unsponsored ADR.
II). Level I.
III). Level II.
IV). Level III.

• A.I, II, III and IV.
• B.III and IV.
• C.IV only.

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Given the table below for a variety of 5-year securities, what is the intramarket spread?

• A.50 basis points
• B.325 basis points
• C.25 basis points

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