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  1. Home
  2. CFA Certification
  3. CFA-Level-I Exam
  4. CFA.CFA-Level-I.v2024-01-19.q367 Dumps
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Question 61

Which of the following will shift the LAS curve to the right?
I). An increase in the supply of resources.
II). Improved technology.
III). A substantial increase in the minimum wage for young workers.
IV). Lower interest rate.

Correct Answer: A
The resource base and level of technology determine the LAS.
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Question 62

Consider a cyclical industry in which many firms are not profitable. These firms have operations in many countries such as the US, Germany, Brazil and China. Which valuation method is the most appropriate one to compare these companies in the industry?

Correct Answer: C
P/S is more suitable to value firms with negative earnings, and better able to compare firms in different countries that are likely to use different accounting standards.
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Question 63

A company can determine if its ______ objective has been met by evaluating its ability to earn a satisfactory net income.

Correct Answer: B
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Question 64

The business cycle is:

Correct Answer: A
Business cycles are a fundamental feature of market economies, but their amplitude and length varies considerably.
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Question 65

If you are a bondholder for a firm, which of the following ratios would you be most interested in?
I). Times interest earned.
II). Total debt to total assets.
III). Return on equity.
IV). Quick ratio.

Correct Answer: A
Bondholders are interested in the debt utilization ratios which in this case are the times interest earned and total debt to total assets.
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