An equity analyst developing a screen tool to exclude potentially weak companies woul

An analyst has calculated the following ratios for a company:

The company’s return on equity (ROE) is closestto:

A.4.8%.

B.15.2%.

C.22.7%.

A financial analyst would classify deferred tax liabilities as equity (versus a liability) when:

A.the deferred tax liabilities are expected to decline over time.

B.the deferred tax liabilities are predominantly comprised of permanent differences.

C.a change in tax law may result in the deferred taxes never being paid by the company.

r when determining if a company’s deferred tax liabilities should be treated as a liabilities or equity？

A.The growth rate of the firm.

B.The average discount rate of liabilities.

C.the expectation that temporary difference will reverse.

ndex, P/E ratio lower than the median P/E ratio, and a price-book value ratio lower than the median price-book value ratio. The stocks so selected would be mostappropriate for portfolios of which type of investors？

A. Value investors.

B. Growth investors.

C. Market-oriented investors.

ese costs were fully deductible immediately for tax purposes, but the company is depreciating them over two years for financial reporting purposes.The company has a long history of profitability.When calculating the company’s debt-to-equity ratio, the most appropriate way for an analyst to incorporate the differential tax treatment is to:

A.include it in equity.

B.include it in liabilities.

C.not include it in either equity or liabilities.

capitalized €2 million of development costs during the year. These costs were fully deductible immediately for tax purposes, but the company is depreciating them over two years for financial reporting purposes. The company has a long history of profitability which is expected to continue. Which is the most appropriate way for an analyst to incorporate the differential tax treatment in his analysis？ He should include it in:

A. liabilities when calculating the company’s current ratio.

B. equity when calculating the company’s return on equity ratio.

C. liabilities when calculating the company’s debt-to-equity ratio.

nt manufacturing firm, by using the average net profit margin over the past three years. In making his profit projection, he is concerned about the following three items:

·The company suffered losses from discontinued operations in each of the past three years.

·The most recent year’s tax rate was only one half the prior two years’ rate as a result of a fiscal stimulus.

·The company experienced gains on the sale of investments in each of the past three years.

Which of the following statements about the preparation of the forecast is most accurate？ The analyst would:

A. use the most recent tax rate because that is the best predictor of future tax rates.

B. exclude the gains on the sale from investments because the company is a manufacturing firm.

C. include the discontinued operations because they appear to be an on-going feature for this company.

A.3D Analyst

B.Geostatistical Analyst

C.Network Analyst

D.Spatial Analyst