An analysis of noncash accounts disclosed the following:
a. Machinery was purchased for $4,500 cash.
b. $10,000 was borrowed on a long-term note.
c. 1,000 shares of common stock were issued at $5 each.
d. Cash dividends of $2,000 were declared and paid.
e. An investment was sold for $23,000.
f. $50,000 of bonds was retired at maturity.
The net cash provided by (or used in) financing activities was which of the following?
Increased financial leverage leads to
I). increased financial risk.
II). increased business risk.
III). decreased financial risk.
Investors who own the underlying commodity and enter futures contracts to sell it are referred to as?
Fran Dew is an analyst at a large brokerage house. Her husband, John, is an equity salesman at the same brokerage house. John is holding a large position of stock in a company called QRE. QRE have performed very badly of late and John is battling to sell the stock. John calls Fran and asks her as a special favor to him if she can please call some of her institutional clients and sell them large quantities of
QRE. Fran does this and sells off a large quantity of stock to her large clients. In terms of CFA Institute's
Standards of Professional Conduct per Standard I). B.
(Independence and Objectivity), has Fran violated this Standard?
When the Federal Reserve raises the federal funds rate, the long-term real interest rate ____ and investment ____.
