H12-425_V2.0-ENU Exam Questions and Answers

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NEW QUESTION: 1
Janice Palmer, CFA, is an international equity analyst at a large investment management firm catering to high net worth U.S. investors. She is assisted by Morgan Greene and Cathy Wong. Both Greene and Wong have prepared their preliminary security selections and are meeting along with Palmer today for detailed security analysis and valuation. They have narrowed their focus to a few closed-end country funds and some firms from Switzerland, Germany, the U.K. and the emerging markets.
The initial decision is to choose between closed-end country funds and direct investment in foreign stock markets. Wong is in favor of country funds because:
1. Country funds provide immediate diversification.
2. Buying country funds is a better choice than direct investment for most emerging markets.
However, Wong has observed a premium to NAV that is prevalent in closed-end country funds. Wong is curious as to how the observed premiums would affect investments in such instruments.
In contrast to Wong, Greene is more inclined towards individual stocks and has started looking into their financial statements. One firm Greene is analyzing is a German conglomerate. Kaiser Corp. Kaiser has a history of growing by acquiring high-growth firms in niche markets. Exhibit 1 provides key financial information from Greene's analysis of Kaiser Corp.
Exhibit 1: Financial information-Kaiser Corp.

While going through their sample of emerging market stocks, Wong observed that these markets in general have high inflation and that sales for the stocks were extremely seasonal. Wong compensated by adjusting reported sales growth in the emerging market firms by deflating the sales using annual inflation adjustments. Wong also made upward adjustments to reported depreciation figures.
Wong suggested to her colleagues that they add a country risk premium to the discount rate they were using to evaluate emerging market stocks. She further suggested that they estimate country risk premiums by calculating the spread between the yield of U.S. government bonds and that of similar maturity local bonds.
Subsequently they started working on the financial projections for Emerjico, Inc., an emerging market stock. Their assumptions are given in Exhibit 2.
Exhibit 2: Key Assumptions-Emerjico

Based on Exhibit 1 and using the dividend discount model (DDM), the intrinsic value of Kaiser Corp is closest to:
A. $18.35 per share.
B. $19.20 per share.
C. $19.88 per share.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Number of shares equal 40 million.
(Study Session 11, LOS 40.d,o)

NEW QUESTION: 2
Which feature of HP Moonshot servers enables customers to customize the server capabilities to best match the data, applications, and transactions that are being hosted?
A. multiple cartridges with different CPU architectures
B. multiple data formats can coexist
C. ability to run different types of applications concurrently
D. ability to host virtualization software
Answer: D

NEW QUESTION: 3
After identifying some accidental damage and pointing it out to the customer, the customer says "Apple's warranty should cover this kind of problem." How should you respond?
A. Apple's warranty specifically calls out accidental damage as an instance where system failures are not covered.
B. Apple's warranty does not cover this, but the AppleCare Protection Plan might, but only if you buy it now.
C. Apple will only cover the internal damage, not the cosmetic damage, so the charge will be less.
D. You're right, Apple's warranty does cover this kind of accidental damage, so the repair will be free.
Answer: A
Explanation:
Warranty should cover this kind of problem.
Many customers believe that a warranty means complete no-fault coverage. In fact, Apple's
warranty oncomputer products specifically calls out the following instances where the warranty will
not cover computerfailures:
Accident
Misuse
Flood
Fire
Earthquake
Other external causes
These exclusions are normal for computer products.
NOTE: You can review Apple's product warranty at this address:
http://www.apple.com/legal/warranty/


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