Which of the following statements regarding technical and fundamental analysis is true?

Question 1 options:

a)	Technical analysis values securities based on expected future cash flows.

b)	In fundamental analysis, future cash flows are projected by analyzing a firm's financial statements.

c)	Technical analysis requires an evaluation of macroeconomic conditions.

d)	Fundamental analysis is based on supply and demand.

Question 2 (1 point)

According to Porter's 5 competitive forces used in industry analysis, rivalry among companies in the same industry tends to increase under which of the following conditions?

Question 2 options:

a)	There are several companies of varying size, with only one or two dominant firms in the industry.

b)	Firms in capital intensive industries characterized by high fixed costs produce high outputs when demand is low.

c)	Entry barriers such as labor agreements prevent uncompetitive companies from exiting the industry.

d)	A large number of substitute products are available.

Question 3 (1 point)

Use the information below to answer questions 3 through 8. ABC Corporation

Selected Financial Statement Information for the Year Ended December 31

(In millions except per share data)

Income Statement (Period 20x1)

The current ratio is closest to:

Question 3 options:

a)

1.06

b)

1.57

c)

1.68

d)

1.88

Question 4 (1 point)

Use the information below to answer questions 3 through 8. ABC Corporation

Selected Financial Statement Information for the Year Ended December 31

(In millions except per share data)

Income Statement (Period 20x1)

The inventory turnover at years end is closest to:

Question 4 options:

a)

7.47

b)

8.50

c)

9.01

d)

11.33

Question 5 (1 point)

Use the information below to answer questions 3 through 8. ABC Corporation

Selected Financial Statement Information for the Year Ended December 31

(In millions except per share data)

Income Statement (Period 20x1)

The gross profit margin on sales is closest to:

Question 5 options:

a)

6.35%

b)

7.51%

c)

14.7%

d)

20.0%

Question 6 (1 point)

Use the information below to answer questions 3 through 8. ABC Corporation

Selected Financial Statement Information for the Year Ended December 31

(In millions except per share data)

Income Statement (Period 20x1)

The return on equity is closest to:

Question 6 options:

a)

7.94%

b)

9.61%

c)

13.4%

d)

14.1%

Question 7 (1 point)

Use the information below to answer questions 3 through 8. ABC Corporation

Selected Financial Statement Information for the Year Ended December 31

(In millions except per share data)

Income Statement (Period 20x1)

The debt to asset ratio is closest to:

Question 7 options:

a)

19.8%

b)

21.3%

c)

34.9%

d)

54.7%

Question 8 (1 point)

Use the information below to answer questions 3 through 8. ABC Corporation

Selected Financial Statement Information for the Year Ended December 31

(In millions except per share data)

Income Statement (Period 20x1)

The return on equity using the DuPont system is closest to:

Question 8 options:

a)

13.64%

b)

15.12%

c)

19.40%

d)

21.76%

Question 9 (1 point)

Year 2s net income is closest to:

Question 9 options:

a)

$1,000

b)

$2,000

c)

$2,500

d)

$3,000

Question 10 (1 point)

The sustainable growth rate for Year 2 is closest to:

Question 10 options:

a)

1.25%

b)

2.75%

c)

3.25%

d)

4.75%