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A company records an asset retirement obligation (ARO) because of environmental damag

A company records an asset retirement obligation (ARO) because of environmental damage. Which of the following will most likelyresult from the recording an ARO in any given year?

A. An increase in return on equity and an increase in depreciation expense

B. An decrease in return on equity and an increase in depreciation expense

C. An decrease in return on equity and an decrease in depreciation expense

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第1题

3 depreciation expense is closest to:

A. $27,200

B.$16,320

C. $9,792

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第2题

A 3-year amortizing security with a par value of $4,000 and a 6% coupon rate has an expected cash flow of $1,365 per year. No principal prepayment is allowed. Assuming a discount rate of 5%, the security is most likely to have a present value of:

A. 4,109.

B. 4,000.

C. 3,717.

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第3题

Given the following information in the table, which of the following gives the closest value for a 0% coupon, 5-year, $100 par value option-free bond?

A. 78.12.

B. 80.05.

C. 79.94.

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第4题

If the price of a U.S. Treasury security is higher than its arbitrage-free value, an arbitrage profit can be generated by:

A. buying the U.S Treasury security, stripping it and selling the strips.

B. shorting the U.S. Treasury security and calling it from the issuer.

C. shorting the U.S. Treasury security and reconstructing it from strips.

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