Trasten Co operates in an emerging market with a f...

Trasten Co operates in an emerging market with a fast-growing economy where prices increase frequently.

Which of the following statements are true when using historical cost accounting compared to current value accounting in this type of market?

(1) Capital employed which is calculated using historical costs is understated compared to current value capital employed

(2) Historical cost profits are overstated in comparison to current value profits

(3) Capital employed which is calculated using historical costs is overstated compared to current value capital employed

(4) Historical cost profits are understated in comparison to current value profits

A.1 and 2

B.1 and 4

C.2 and 3

D.3 and 4

Why can businessmen make money in the emerging elder market?

A) Retirees are more generous in spending money.

B) They can employ more gerontologists.

C) The elderly possess an enormous purchasing power.

D) There are more elderly people working than before.

Why can businessmen make money in the emerging elder market?

A．Retirees are more generous in spending money.

B．They can employ more gerontologists.

C．The elderly possess an enormous purchasing power.

D．There are more elderly people working than before.

Why can businessmen make money in the emerging elder market?

A．Retirees are more generous in spending money.

B．They can employ' more gerontologists.

C．The elderly possess an enormous purchasing power.

D．There are more elderly people working than before.

Why can businessmen make money in the emerging elder market?

A．Retirees are more generous in spending money.

B．They can employ more gerontologists.

C．The elderly possess an enormous purchasing power.

D．There are more elderly people working than before.

The author thinks the emerging markets are______.

A．unsettled

B．strong

C．weak

D．hopeless

A、A requirement to pay withholding taxes to foreign governments in a timely manner

B、A prohibition from investing in long-term projects in emerging market countries

C、A requirement to hedge at least 50% of the firm s revenues generated from foreign sales

D、空

James Sigmund, CFA, is the Head of International Equity for Pell Global Advisors (PGA). Sigmund is considering investing in the country of Zuflak as part of an emerging market portfolio. Sigmund is aware of the risks in investing in emerging markets and is preparing a valuation report regarding this investment. He estimates that Zuflak government debt would be rated BB, and has gathered the following market information for use in analyzing Zuflak.

Local Government Bond Yield= 11.50%

U.S. 10 year Treasury Bond Yield= 4.50%

U.S. BB rated Corporate Bond Yield= 7.75%

Local Inflation Rate= 6.50%

U.S. Inflation Rate= 3.00%

To assist in his analysis of Zuflak, Sigmund has asked Stefano Testorf, CFA, to estimate a value for Kiani Corporation (Kiani), Oleg Industries (Oleg), and Malik Incorporated (Malik) - the three primary companies domiciled in Zuflak that Sigmund has determined to have adequate liquidity for inclusion in PGA’s client portfolios. Testorf gives Sigmund a rough draft of his report and tells Sigmund that in order to account for country specific emerging market risks, he used a probability-weighted scenario analysis to adjust cash flows. Sigmund asks him, “Why didn’t you simply adjust the discount rate?” Testorf replies with three reasons:

Reason 1: The country risk attributable to Zuflak can be diversified away according to modern finance theory, and should not be included in the cost of capital.

Reason 2: Companies in emerging markets tend to exhibit wild price swings both up and down, therefore adjusting cash flows is the best way to account for these symmetrical country risks.

Reason 3: Although Kiani, Oleg, and Malik are all domiciled in Zuflak, each of these companies will tend to respond differently to country risks. This makes it virtually impossible to adjust the discount rate for country specific risk and come up with an accurate valuation estimate.

After careful analysis by Sigmund and his team, Sigmund decides that he wants to have exposure to Zuflak in his international portfolios. He is still unsure however, what the best way would be to establish the exposure. Sigmund discusses his concerns with Steve Solak, another portfolio manager with PGA. Solak suggests that Sigmund consider using a closed-end country fund to invest in Zuflak. Solak hands Sigmund a copy of a note that he had provided to a client listing facts about country-specific closed end funds. The note contained the followingstatements:

Closed-end country funds provide an excellent means to access local foreign markets. Even nations that have restrictions on foreign investment are sometimes accessible using closed-end country funds.

Closed-end country funds issue a fixed number of shares and are a great way to diversify a U.S.-dollar stock portfolio because of their low correlation with the U.S. stock market.

Sigmund thanks Solak for the information and heads back to his office. As he is leaving, Solak asks him if he would have time later that afternoon to discuss the use of American Depository Receipts (ADRs).

Part 5)

With regard to Solak’s note concerning closed end-country funds:

A)statement 1 is correct, statement 2 is correct.

B)statement 1 is incorrect, statement 2 is incorrect.

C)statement 1 is correct, statement 2 is incorrect.

D)statement 1 is incorrect, statement 2 is correct.

Dear Conference Presenter,

Thank you for agreeing to present a talk at this year's Emerging Markets Conference on September 14. To help the event run as (81) as possible, please read the following information.

Firstly, you need to send an electronic copy of the presentation to the conference organizing team at least 48 hours prior to the event. If you do so, the team will be able to check the audio-visual systems in advance and ensure there are no glitches on the day of the conference.

Secondly, the conference organizers will cover your travel and accommodation (82) .

Please get in touch with the Conference World administrator, Julia Parkes, who will make the arrangements for your stay.

Finally, please note that you are not required to attend the rest of the conference sessions. However, it is hoped that you can make every effort to stay. This (83) generate a more lively, enjoyable and interesting atmosphere throughout the event.

Thanks,

The Team — Conference World

(41)

A．smooth

B．smoothly

C．smoothness

D．smoothing

Questions 下列各 are based on the following passage. Yet with economies in free fail, managers also need up-to-date information about what is happening to their businesses, so that they can change course rapidly if necessary. Cisco,an American network-equipment giant, has invested over many years in the technology needed to generate such data .Frank Caideroni, the firms CFO, says that every day its senior executives can track exactly what orders are coming in from sales teams around the world, and identify emerging trends in each region and market segment. And at the end of each month, the firm can get reliable financial results within four hours of closing its books. Most firms have to wait days or even weeks for such certainty. Admittedly, Ciscos financial results have not made happy reading recently because, in common with many other large technology companies, it has seen demand for its products decline in thedownturn. In early February it announced that its fiscal second-quarter revenues of $ 9.1 billion were 7.5% lower than the same period in 2008 and that its profit had fallen by 27%, to $1.5 billion. In response to hard times, Cisco plans to cut $1 billion of costs this year by, among other things, making use of its own video-conferencing and other communications technologies to reduce the amount its executives travel. It is also using these facilities to relay information from employees on the ground to its senior managers, and to get instructions from Ciscos leaders back out to its 67,000 staff. A rapid exchange of information and instructions is especially valuable if the company wants to alter course in stormy times. If everybody in a company can rapidly grasp what they have to do and how it is changing, they are more likely to get the job done. But some firms are reluctant to share their goals with the wider world. Unilever, a big Anglo-Dutch consumer-goods group, has decided against issuing a 2009 financial forecast to investors, arguing that it is difficult to predict what is going to happen, given the dangerous state of the world economy. "Were not just going to provide numbers for the sake of it," explains James Allison, the companys head of investor relations. Other companies that have decided not to provide annual earnings estimates for 2009 include Costco, a big American retailer, and Union Pacific, an American railway company. Some firms, such as Intel, seem to have chosen to take things quarter by quarter. The giant chipmaker(芯片制造商) said in January that it would not issue an official forecast for the firstquarter of 2009 after its fourth-quarter 2008 profit decreased by 90%. Several retail chains have also stopped providing monthly sales estimates because they cannot see what the future holds. Retailers, chipmakers and firms in many other industries may have a long wait before the economic fog finally lifts. What can we learn about Cisco from the passage?

A.It will keep a record of the orders from sales teams.

B.It cuts $1 billion cost by solely relying on its own technologies.

C.Unlike other technology companies, its financial reports are encouraging.

D.Only employees can use the video-conferencing to pass information.